{"annotation_id":"6b33329f-6dc0-45bb-bd3a-270bcd192b1f","file_hash":"ab150209aab8db5717df418826083b469dc953696d577c936d2a36dae4af13b4","schema_id":"open/document-extraction","schema_version":"0.5.0","record":{"extraction_type":"boxes","producer":"pdf-extractor-v0.5.0","blocks":[{"id":"6dc85d3e-e7d9-4897-b0a3-c42a744b1515","block_type":"box","text":"STATEMENT OF ADDITIONAL INFORMATION","page_number":1,"box":{"x":271,"y":83,"width":435,"height":11}},{"id":"184d6416-645e-4c3b-8ed3-ef1625589c31","block_type":"box","text":"BlackRock Funds","page_number":1,"box":{"x":371,"y":120,"width":216,"height":14}},{"id":"7ee222c2-0c2a-4ebc-befc-056dbf7222ba","block_type":"box","text":"SM","page_number":1,"box":{"x":589,"y":120,"width":19,"height":7}},{"id":"837a047a-d17f-4efe-a280-0e4a29861b5e","block_type":"box","text":"BlackRock Advantage Small Cap Core Fund","page_number":1,"box":{"x":215,"y":142,"width":548,"height":19}},{"id":"bd2db7d9-7d6a-4cc0-b369-9d1ff759a8da","block_type":"box","text":"100 Bellevue Parkway, Wilmington, Delaware 19809 • Phone No. (800) 441-7762","page_number":1,"box":{"x":118,"y":176,"width":742,"height":14}},{"id":"5fc26633-b12f-41b5-a901-30e7bd22faae","block_type":"box","text":"This Statement of Additional Information of BlackRock Advantage Small Cap Core Fund (the “Fund”), a","page_number":1,"box":{"x":101,"y":233,"width":781,"height":12}},{"id":"68ad35f0-b11c-4d6a-a8ac-6454a5b1691f","block_type":"box","text":"series of BlackRock Funds","page_number":1,"box":{"x":69,"y":249,"width":199,"height":9}},{"id":"039215cc-33d7-4b10-8a4a-0b41e822a442","block_type":"box","text":"SM","page_number":1,"box":{"x":269,"y":249,"width":12,"height":5}},{"id":"89dd5635-54e1-4996-af37-d17811bb181b","block_type":"box","text":"(the “Trust”), is not a prospectus and should be read in conjunction with the","page_number":1,"box":{"x":286,"y":248,"width":575,"height":12}},{"id":"2e6508e0-c200-4eb7-bb1f-dbc4745dbc8e","block_type":"box","text":"Prospectuses of the Fund, dated September 28, 2026, as they may be amended or supplemented from time to","page_number":1,"box":{"x":70,"y":264,"width":836,"height":11}},{"id":"c6ff30b1-c2f4-4395-9253-9da3a72078be","block_type":"box","text":"time (the “Prospectus”), which have been filed with the Securities and Exchange Commission (the","page_number":1,"box":{"x":69,"y":279,"width":743,"height":12}},{"id":"a55504be-f7ae-42f8-b474-53e6c330bfc4","block_type":"box","text":"“Commission” or the “SEC”) and can be obtained, without charge, by calling (800) 441-7762 or by writing to","page_number":1,"box":{"x":69,"y":294,"width":820,"height":12}},{"id":"7bd17f2d-4d46-40df-a673-2bf923138c8c","block_type":"box","text":"the Fund at the above address. 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You may request a copy of the","page_number":1,"box":{"x":69,"y":415,"width":840,"height":12}},{"id":"87a536e0-7ccf-416b-97b6-20c5b6358254","block_type":"box","text":"2026 Annual Financial Statements at no charge by calling (800) 441-7762 between 8:00 a.m. and 6:00 p.m.","page_number":1,"box":{"x":69,"y":430,"width":822,"height":12}},{"id":"42cd9994-20ec-4028-b809-2b32f321d3eb","block_type":"box","text":"Eastern time on any business day.","page_number":1,"box":{"x":70,"y":445,"width":258,"height":12}},{"id":"98ea3cd2-61ce-4896-941d-98f13563d20a","block_type":"box","text":"References to the Investment Company Act of 1940, as amended (the “Investment Company Act”), or","page_number":1,"box":{"x":103,"y":468,"width":767,"height":12}},{"id":"b3c8a9c6-cb00-4dc2-ad53-1219964439ec","block_type":"box","text":"other applicable law, will include any rules promulgated thereunder and any guidance, interpretations or","page_number":1,"box":{"x":69,"y":483,"width":796,"height":12}},{"id":"2f571f6a-7fdc-48e8-9ace-8b97fbce7241","block_type":"box","text":"modifications by the Commission, Commission staff or other authority with appropriate jurisdiction, including","page_number":1,"box":{"x":70,"y":498,"width":837,"height":12}},{"id":"ced85650-5239-4912-84aa-3d73a4f6dad6","block_type":"box","text":"court interpretations, and exemptive, no-action or other relief or permission from the Commission,","page_number":1,"box":{"x":69,"y":513,"width":749,"height":12}},{"id":"a496fea7-482d-40fc-aad6-bf30fb0c9310","block_type":"box","text":"Commission staff or other authority.","page_number":1,"box":{"x":70,"y":528,"width":274,"height":12}},{"id":"b59791b6-4189-417d-8b29-3838d3dea056","block_type":"box","text":"Class","page_number":1,"box":{"x":69,"y":557,"width":31,"height":7}},{"id":"bc58b2df-822d-43c0-a87e-494f6e809337","block_type":"box","text":"Ticker Symbol","page_number":1,"box":{"x":827,"y":557,"width":82,"height":9}},{"id":"3e654237-4546-43c0-9d24-361352e25d4e","block_type":"box","text":"Investor A Shares","page_number":1,"box":{"x":70,"y":575,"width":124,"height":8}},{"id":"0b37c781-6685-4e27-8ea0-a1f5c94a2489","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BDSAX","page_number":1,"box":{"x":208,"y":575,"width":685,"height":8}},{"id":"870728f3-0ff8-482d-a586-9f65c25f7605","block_type":"box","text":"Investor C Shares .","page_number":1,"box":{"x":70,"y":590,"width":131,"height":9}},{"id":"9f37cd07-2eae-4f83-93a3-035344f5458a","block_type":"box","text":".........................................................................","page_number":1,"box":{"x":208,"y":597,"width":588,"height":1}},{"id":"485ba0cb-fe02-469d-8e88-23f9d21c1618","block_type":"box","text":"BDSCX","page_number":1,"box":{"x":845,"y":590,"width":48,"height":9}},{"id":"c68b611c-7af1-45bc-9f16-e2255875e38e","block_type":"box","text":"Institutional Shares","page_number":1,"box":{"x":70,"y":605,"width":137,"height":9}},{"id":"83b6fadc-53c1-403f-81f6-3f79e1bf3055","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BDSIX","page_number":1,"box":{"x":216,"y":605,"width":674,"height":9}},{"id":"a46cf0e0-d2dc-4f50-accd-2dc0f68a393d","block_type":"box","text":"Class K Shares","page_number":1,"box":{"x":69,"y":620,"width":109,"height":9}},{"id":"e1aded6a-71ed-4716-a55a-1ecca2e125cf","block_type":"box","text":"............................................................................","page_number":1,"box":{"x":183,"y":627,"width":613,"height":2}},{"id":"0b4fb4ae-3712-45f6-a5d7-2ee1913a9c33","block_type":"box","text":"BDSKX","page_number":1,"box":{"x":845,"y":620,"width":48,"height":9}},{"id":"f35edb68-9124-47a6-a3d0-c05ca098b6e9","block_type":"box","text":"BlackRock Advisors, LLC — Manager","page_number":1,"box":{"x":260,"y":674,"width":460,"height":20}},{"id":"80147ef9-2e3c-42c4-922a-4042a52e808e","block_type":"box","text":"BlackRock Investments, LLC — Distributor","page_number":1,"box":{"x":222,"y":697,"width":536,"height":18}},{"id":"35142cd7-6452-4679-91d3-ed1622c5e643","block_type":"box","text":"The date of this Statement of Additional Information is September 28, 2026.","page_number":1,"box":{"x":199,"y":757,"width":579,"height":11}},{"id":"486604be-94c7-4742-8a99-89a3b81c3c95","block_type":"box","text":"NM0926U-5977728-1/232","page_number":1,"box":{"x":764,"y":970,"width":141,"height":7}},{"id":"05598676-1bbc-4f4b-8f25-5c86add64c27","block_type":"box","text":"TABLE OF CONTENTS","page_number":2,"box":{"x":411,"y":45,"width":155,"height":9}},{"id":"c0d15c51-a778-4729-8737-5e5106cfb381","block_type":"box","text":"Page","page_number":2,"box":{"x":869,"y":73,"width":28,"height":9}},{"id":"f68f35b2-ce37-4a07-bd59-7d148264f8ee","block_type":"box","text":"PART I","page_number":2,"box":{"x":69,"y":92,"width":47,"height":9}},{"id":"a31bed9b-f5c7-4918-8340-2f55d4e06683","block_type":"box","text":"Investment Objective and Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-1","page_number":2,"box":{"x":70,"y":108,"width":839,"height":11}},{"id":"b119422f-0572-41f8-b410-561e68ad19a3","block_type":"box","text":"Investment Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-6","page_number":2,"box":{"x":70,"y":125,"width":839,"height":9}},{"id":"fa843b96-5a8b-4663-abf5-1e4f299e5e91","block_type":"box","text":"Information on Trustees and Officers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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I-24","page_number":2,"box":{"x":358,"y":207,"width":551,"height":8}},{"id":"65f9956d-8443-4a70-ae51-a836cf69022f","block_type":"box","text":"Additional Information. . . . . . . . . . . . . . . . . . .","page_number":2,"box":{"x":68,"y":223,"width":308,"height":9}},{"id":"f9d472ad-c86e-45f4-a6d1-085930160ccb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-26","page_number":2,"box":{"x":382,"y":223,"width":527,"height":9}},{"id":"fe645ca4-5105-4017-bc20-ddb27111705d","block_type":"box","text":"Financial Statements","page_number":2,"box":{"x":70,"y":239,"width":148,"height":9}},{"id":"e6d430aa-fb0d-495c-8746-61ceb3786d44","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-28","page_number":2,"box":{"x":227,"y":239,"width":682,"height":9}},{"id":"82d6eb13-ae96-41d3-a8dd-c593dbc18b0e","block_type":"box","text":"PART II","page_number":2,"box":{"x":69,"y":271,"width":52,"height":9}},{"id":"9f04588b-88cf-4c2a-990d-fe9d21b314f3","block_type":"box","text":"Investment Risks and Considerations . . . . . . . .","page_number":2,"box":{"x":70,"y":287,"width":330,"height":9}},{"id":"f5989885-cfa9-4ae5-b004-2439cac86f0b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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II-84","page_number":2,"box":{"x":521,"y":320,"width":388,"height":9}},{"id":"33abb88f-d6c5-422a-9927-b41e06bebcca","block_type":"box","text":"Purchase of Shares","page_number":2,"box":{"x":69,"y":336,"width":139,"height":9}},{"id":"67e2db57-281a-444e-9bc6-03364332e82c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-97","page_number":2,"box":{"x":211,"y":336,"width":697,"height":9}},{"id":"5e64bee4-0a16-4209-8b65-a845afa486f7","block_type":"box","text":"Redemption of Shares . .","page_number":2,"box":{"x":70,"y":353,"width":176,"height":11}},{"id":"1a2019b3-67d3-489a-a2cb-5ca70c140573","block_type":"box","text":"........................................................................... 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I","page_number":2,"box":{"x":195,"y":386,"width":676,"height":8}},{"id":"1882c6c9-dd1e-4112-bef3-83c8474e0139","block_type":"box","text":"I-122","page_number":2,"box":{"x":874,"y":386,"width":35,"height":8}},{"id":"f3c5430d-e0a2-4b8a-9497-3482d6592fe8","block_type":"box","text":"Por tfolio Transactions and Brokerage . .","page_number":2,"box":{"x":69,"y":402,"width":283,"height":11}},{"id":"25d28b1f-e91a-41e5-a08a-42cb267032d9","block_type":"box","text":".............................................................. I","page_number":2,"box":{"x":358,"y":402,"width":513,"height":9}},{"id":"e38e89df-a02b-4ab4-af30-b4994a6221ac","block_type":"box","text":"I-124","page_number":2,"box":{"x":874,"y":402,"width":35,"height":9}},{"id":"2793cf87-6345-48c6-85df-1e545b1e002c","block_type":"box","text":"Dividends and Taxes . .","page_number":2,"box":{"x":70,"y":418,"width":159,"height":9}},{"id":"e70cdacb-4bd3-44e7-bfa0-9fb7beef67c3","block_type":"box","text":"............................................................................. I","page_number":2,"box":{"x":236,"y":418,"width":635,"height":9}},{"id":"037d96d9-6421-4ade-93eb-3a1c4f3ccda9","block_type":"box","text":"I-129","page_number":2,"box":{"x":874,"y":418,"width":35,"height":9}},{"id":"5587e357-e7cd-49b1-99d9-3d87784be706","block_type":"box","text":"Per formance Data","page_number":2,"box":{"x":69,"y":435,"width":129,"height":9}},{"id":"87597cca-b192-406a-88ef-8826cb90e1c9","block_type":"box","text":"................................................................................. I","page_number":2,"box":{"x":203,"y":435,"width":668,"height":8}},{"id":"11e8a2f9-ab22-40a3-9ae9-9e79499d0336","block_type":"box","text":"I-137","page_number":2,"box":{"x":874,"y":435,"width":34,"height":9}},{"id":"a3bdae09-d4e1-47c9-b970-6ca8de15a2a8","block_type":"box","text":"Proxy Voting Policies and Procedures . . . . . . . . . . . . . . . . . . . . . .","page_number":2,"box":{"x":69,"y":451,"width":437,"height":11}},{"id":"1a14d9eb-0efc-4a08-9d80-e5771d7b1362","block_type":"box","text":"........................................... I","page_number":2,"box":{"x":513,"y":451,"width":358,"height":9}},{"id":"3aa4167c-2379-4e0e-90c7-aa57e0dba7be","block_type":"box","text":"I-139","page_number":2,"box":{"x":874,"y":451,"width":35,"height":9}},{"id":"13e6df49-3f13-49c5-8af0-7728637a2b9b","block_type":"box","text":"General Information","page_number":2,"box":{"x":69,"y":467,"width":140,"height":9}},{"id":"f58cc7f4-b8fa-4279-bbed-648465eefac7","block_type":"box","text":"............................................................................... 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Investment Restrictions","page_number":8,"box":{"x":69,"y":45,"width":194,"height":9}},{"id":"151895a8-e04a-4aaf-91f0-3944cfdc9966","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":8,"box":{"x":101,"y":67,"width":800,"height":12}},{"id":"a7c548af-ff17-45ae-ac5b-c197337ea797","block_type":"box","text":"Cer tain of the restrictions are fundamental policies of the Fund and may not be changed without the approval of the","page_number":8,"box":{"x":69,"y":82,"width":825,"height":12}},{"id":"58d61342-2fae-414d-a007-29934808541a","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":8,"box":{"x":69,"y":98,"width":809,"height":11}},{"id":"617bed92-0ce5-478e-aae8-46dc940545c6","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":8,"box":{"x":69,"y":113,"width":803,"height":11}},{"id":"344a3d65-f852-41c1-89f5-9eef96351586","block_type":"box","text":"outstanding shares are represented or (ii) more than 50% of the outstanding shares).","page_number":8,"box":{"x":69,"y":128,"width":608,"height":11}},{"id":"113e3379-43ae-4334-aa04-7ac12b159790","block_type":"box","text":"Under these fundamental investment restrictions, the Fund may not:","page_number":8,"box":{"x":102,"y":150,"width":485,"height":12}},{"id":"605d65e6-ce3f-416f-9b29-8ff0590bd2b3","block_type":"box","text":"1. Concentrate its investments in a par ticular industry, as that term is used in the Investment Company Act.","page_number":8,"box":{"x":102,"y":173,"width":770,"height":11}},{"id":"d819793e-10e7-411f-a4a0-1449af17c8f2","block_type":"box","text":"2. Borrow money, except as permitted under the Investment Company Act.","page_number":8,"box":{"x":102,"y":196,"width":528,"height":11}},{"id":"87d1febd-cc56-48f5-8d91-291be106498e","block_type":"box","text":"3. Issue senior securities to the extent such issuance would violate the Investment Company Act.","page_number":8,"box":{"x":102,"y":219,"width":694,"height":11}},{"id":"1dd9259d-9b1c-4f00-a479-4d9ea08ce455","block_type":"box","text":"4. Purchase or hold real estate, except the Fund may purchase and hold securities or other instruments that are","page_number":8,"box":{"x":101,"y":241,"width":802,"height":11}},{"id":"8b768d2a-2b4d-405c-8835-8b062d849c46","block_type":"box","text":"secured by, or linked to, real estate or interests therein, securities of real estate investment trusts, mor tgage-related","page_number":8,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"7640c88c-24af-44db-a0e7-2e66a73af31b","block_type":"box","text":"securities and securities of issuers engaged in the real estate business, and the Fund may purchase and hold real","page_number":8,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"92fd0356-f8be-4efd-a9e4-4b2b343537da","block_type":"box","text":"estate as a result of the ownership of securities or other instruments.","page_number":8,"box":{"x":69,"y":286,"width":497,"height":11}},{"id":"e750b104-20bd-4bdb-8911-8fc40977d2c9","block_type":"box","text":"5. Underwrite securities issued by others, except to the extent that the sale of por tfolio securities by the Fund","page_number":8,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"ec4ce2f7-0883-4de6-be31-36b9cd831be7","block_type":"box","text":"may be deemed to be an underwriting or as otherwise permitted by applicable law.","page_number":8,"box":{"x":69,"y":325,"width":588,"height":11}},{"id":"6b49ec01-eab5-4d6b-8040-79d1fa9059da","block_type":"box","text":"6. Purchase or sell commodities or commodity contracts, except as permitted by the Investment Company Act.","page_number":8,"box":{"x":102,"y":347,"width":787,"height":11}},{"id":"ed61e383-11a1-483d-a849-d0702c26dab7","block_type":"box","text":"7. Make loans to the extent prohibited by the Investment Company Act.","page_number":8,"box":{"x":102,"y":370,"width":506,"height":11}},{"id":"cd591a40-7852-4c12-a912-f8c69a925fdf","block_type":"box","text":"8. Make any investment inconsistent with the Fund’s classification as a diversified company under the","page_number":8,"box":{"x":101,"y":392,"width":730,"height":12}},{"id":"6aeb16a5-d9d4-4401-aaac-cbca0ffd7ec1","block_type":"box","text":"Investment Company Act.","page_number":8,"box":{"x":70,"y":408,"width":178,"height":11}},{"id":"666702b7-a796-40d2-8cd5-df4016b5b306","block_type":"box","text":"Notations Regarding the Fund’s Fundamental Investment Restrictions","page_number":8,"box":{"x":70,"y":438,"width":494,"height":11}},{"id":"47d0a260-c153-4a5e-8f81-571df446bfdb","block_type":"box","text":"The following notations are not considered to be par t of the Fund’s fundamental investment restrictions and are","page_number":8,"box":{"x":101,"y":460,"width":799,"height":12}},{"id":"531afcbc-d6a0-45af-9182-f8b0ceb88d4d","block_type":"box","text":"subject to change without shareholder approval.","page_number":8,"box":{"x":69,"y":476,"width":341,"height":11}},{"id":"e0f693ef-d0f0-4568-bbcf-3ff16001798a","block_type":"box","text":"With respect to the fundamental policy relating to concentration set for th in (1) above, the Investment Company","page_number":8,"box":{"x":101,"y":498,"width":796,"height":11}},{"id":"dfb8192c-9a89-47f5-ab65-3ffcc75b89dc","block_type":"box","text":"Act does not define what constitutes “concentration” in an industry. The Commission staff has taken the position","page_number":8,"box":{"x":68,"y":513,"width":811,"height":11}},{"id":"226cbe78-61ed-495a-b035-0d4f18ab0737","block_type":"box","text":"that investment of 25% or more of a fund’s total assets in one or more issuers conducting their principal activities in","page_number":8,"box":{"x":68,"y":528,"width":833,"height":12}},{"id":"618bf73b-f374-4666-b552-fbb5bf8c427a","block_type":"box","text":"the same industry or group of industries constitutes concentration. It is possible that interpretations of concentration","page_number":8,"box":{"x":68,"y":543,"width":836,"height":12}},{"id":"c54ff108-068c-4471-8170-2e558137664d","block_type":"box","text":"could change in the future. The policy in (1) above will be interpreted to refer to concentration as that term may be","page_number":8,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"9abc110a-a146-4417-81ad-4fa36948ab4f","block_type":"box","text":"interpreted from time to time. The policy also will be interpreted to permit investment without limit in the following:","page_number":8,"box":{"x":70,"y":574,"width":813,"height":11}},{"id":"f74fcc4e-ddd5-45ba-b22e-6e7f1f60c586","block_type":"box","text":"securities of the U.S. Government and its agencies or instrumentalities; securities of state, territory, possession or","page_number":8,"box":{"x":69,"y":589,"width":823,"height":11}},{"id":"9ef240c8-1c7f-42da-b251-9a6d82e18dcb","block_type":"box","text":"municipal governments and their authorities, agencies, instrumentalities or political subdivisions; and repurchase","page_number":8,"box":{"x":69,"y":604,"width":809,"height":11}},{"id":"fad04e79-c59c-4bfe-8327-f870f185cde3","block_type":"box","text":"agreements collateralized by any such obligations. Accordingly, issuers of the foregoing securities will not be","page_number":8,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"caf42674-2f94-4b0c-9bec-90f35838e194","block_type":"box","text":"considered to be members of any industry. There also will be no limit on investment in issuers domiciled in a single","page_number":8,"box":{"x":69,"y":634,"width":824,"height":12}},{"id":"a612202b-f07e-4347-ae1a-4db2c683a267","block_type":"box","text":"jurisdiction or country. Finance companies will be considered to be in the industries of their parents if their activities","page_number":8,"box":{"x":67,"y":649,"width":829,"height":12}},{"id":"bbcb767a-026a-4d0a-94ce-0117f606ed8b","block_type":"box","text":"are primarily related to financing the activities of the parents. Each foreign government will be considered to be a","page_number":8,"box":{"x":69,"y":664,"width":805,"height":12}},{"id":"b5abfc9b-fb1f-475d-ae05-3adf0cf6ff43","block_type":"box","text":"member of a separate industry. With respect to the Fund’s industry classifications, the Fund currently utilizes any one","page_number":8,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"6d89c0b9-f43c-4592-ac8b-a83c5c493e88","block_type":"box","text":"or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group","page_number":8,"box":{"x":69,"y":695,"width":803,"height":11}},{"id":"e4d55919-c97a-43aa-a6dd-71beb0a88340","block_type":"box","text":"indexes, and/or as defined by Fund management. The policy also will be interpreted to give broad authority to the","page_number":8,"box":{"x":70,"y":710,"width":807,"height":11}},{"id":"21a6a529-ffc7-4d25-bdb5-dd2c784317ca","block_type":"box","text":"Fund as to how to classify issuers within or among industries.","page_number":8,"box":{"x":70,"y":725,"width":438,"height":11}},{"id":"0bfdb151-8d72-48ad-bc2b-452b78cb41b8","block_type":"box","text":"With respect to the fundamental policy relating to borrowing money set for th in (2) above, the Investment","page_number":8,"box":{"x":101,"y":748,"width":750,"height":11}},{"id":"07fdd357-a7e4-47bb-a1b4-a6824438b8f7","block_type":"box","text":"Company Act permits the Fund to borrow money in amounts of up to one-third of the Fund’s total assets from banks","page_number":8,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"0d095063-f5b7-4f63-b166-a5bc8f5f8577","block_type":"box","text":"for any purpose, and to borrow up to 5% of the Fund’s total assets from banks or other lenders for temporary","page_number":8,"box":{"x":68,"y":778,"width":781,"height":11}},{"id":"a5ee5e36-1515-40b3-b311-e486239b0859","block_type":"box","text":"purposes. (The Fund’s total assets include the amounts being borrowed.) To limit the risks attendant to borrowing,","page_number":8,"box":{"x":70,"y":793,"width":815,"height":11}},{"id":"2277eadf-bce2-4747-aeaa-6cfc19c2cec8","block_type":"box","text":"the Investment Company Act requires the Fund to maintain at all times an “asset coverage” of at least 300% of the","page_number":8,"box":{"x":68,"y":808,"width":825,"height":11}},{"id":"b834a22d-016b-4269-82ec-7cf231f2e9f1","block_type":"box","text":"amount of its borrowings. Asset coverage means the ratio that the value of the Fund’s total assets (including","page_number":8,"box":{"x":69,"y":823,"width":777,"height":12}},{"id":"e88411ab-f5c0-4a0c-81e2-31d05f2c8be9","block_type":"box","text":"amounts borrowed), minus liabilities other than borrowings, bears to the aggregate amount of all borrowings.","page_number":8,"box":{"x":69,"y":838,"width":776,"height":12}},{"id":"00288497-b5a2-4440-b690-3b356f250c14","block_type":"box","text":"Borrowing money to increase por tfolio holdings is known as “leveraging.” Cer tain trading practices and investments,","page_number":8,"box":{"x":70,"y":853,"width":828,"height":12}},{"id":"4d40925c-4011-4c8e-a327-6ae1bf398386","block_type":"box","text":"such as reverse repurchase agreements, may be considered to be borrowings or involve leverage and thus are","page_number":8,"box":{"x":69,"y":869,"width":788,"height":11}},{"id":"7bb91428-2bb3-48b0-bfee-c8abf2cb6ad3","block_type":"box","text":"subject to the Investment Company Act restrictions. In accordance with Rule 18f-4 under the Investment Company","page_number":8,"box":{"x":69,"y":884,"width":813,"height":11}},{"id":"2cabe9d7-cd8f-47da-9b3b-c90194b81ff4","block_type":"box","text":"Act, when the Fund engages in reverse repurchase agreements and similar financing transactions, the Fund may","page_number":8,"box":{"x":68,"y":899,"width":802,"height":11}},{"id":"655353b0-bebb-4bd3-ad85-410ed5f5bd65","block_type":"box","text":"I-6","page_number":8,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"b1af9ead-b0e8-44c6-962e-d32facd68fbd","block_type":"box","text":"NM0926U-5977728-8/232","page_number":8,"box":{"x":764,"y":970,"width":141,"height":7}},{"id":"3859990d-fc6b-4021-84d3-5850a7cf3d2a","block_type":"box","text":"either (i) maintain asset coverage of at least 300% with respect to such transactions and any other borrowings in the","page_number":9,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"e949dc61-cb34-4f96-be46-ee17080eaeaf","block_type":"box","text":"aggregate, or (ii) treat such transactions as “derivatives transactions” and comply with Rule 18f-4 with respect to","page_number":9,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"5447f3aa-6001-4aff-8595-7af28f493f09","block_type":"box","text":"such transactions. Shor t-term credits necessary for the settlement of securities transactions and arrangements with","page_number":9,"box":{"x":69,"y":75,"width":831,"height":11}},{"id":"7219ac81-e5e4-442c-ad52-63c81d843f75","block_type":"box","text":"respect to securities lending will not be considered to be borrowings under the policy. Practices and investments that","page_number":9,"box":{"x":69,"y":90,"width":835,"height":11}},{"id":"47cf3a60-1d80-4b10-8e40-d2e878165679","block_type":"box","text":"may involve leverage but are not considered to be borrowings are not subject to the policy.","page_number":9,"box":{"x":69,"y":105,"width":643,"height":11}},{"id":"f21e76d3-da0e-4fc6-a09f-89ed2d43886d","block_type":"box","text":"With respect to the fundamental policy relating to underwriting set for th in (5) above, the Investment Company","page_number":9,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"046f6a8c-9bd3-4554-a0f6-d077ca911804","block_type":"box","text":"Act does not prohibit the Fund from engaging in the underwriting business or from underwriting the securities of other","page_number":9,"box":{"x":68,"y":143,"width":840,"height":11}},{"id":"0ffe4e23-2dd3-49ff-ac08-d53371070c36","block_type":"box","text":"issuers; in fact, in the case of diversified funds, the Investment Company Act permits the Fund to have underwriting","page_number":9,"box":{"x":70,"y":158,"width":825,"height":11}},{"id":"3ef39ba3-b97d-4ebf-8c97-17ce4eb1e9dc","block_type":"box","text":"commitments of up to 25% of its assets under cer tain circumstances. Those circumstances currently are that the","page_number":9,"box":{"x":69,"y":173,"width":811,"height":11}},{"id":"686f2743-8301-4bd9-a230-7e4f23903a8f","block_type":"box","text":"amount of the Fund’s underwriting commitments, when added to the value of the Fund’s investments in issuers","page_number":9,"box":{"x":69,"y":188,"width":796,"height":12}},{"id":"8cb77c97-0cee-4031-809e-5b46216b9ea9","block_type":"box","text":"where the Fund owns more than 10% of the outstanding voting securities of those issuers, cannot exceed the 25%","page_number":9,"box":{"x":68,"y":203,"width":818,"height":12}},{"id":"ff6496c1-a213-44fa-9827-695ebd2f3f47","block_type":"box","text":"cap. A fund engaging in transactions involving the acquisition or disposition of por tfolio securities may be considered","page_number":9,"box":{"x":69,"y":218,"width":833,"height":12}},{"id":"bc220659-3450-491c-a27b-b2d737f7241f","block_type":"box","text":"to be an underwriter under the Securities Act of 1933, as amended (the “Securities Act”). Although it is not believed","page_number":9,"box":{"x":68,"y":234,"width":831,"height":11}},{"id":"8a7bc851-2fa6-4b8b-972a-21f0b98526f5","block_type":"box","text":"that the application of the Securities Act provisions described above would cause the Fund to be engaged in the","page_number":9,"box":{"x":68,"y":249,"width":799,"height":11}},{"id":"8eabc1bd-1737-4bab-8d53-53cbaf0f6e5b","block_type":"box","text":"business of underwriting, the policy in (5) above will be interpreted not to prevent the Fund from engaging in","page_number":9,"box":{"x":69,"y":264,"width":769,"height":11}},{"id":"537a0bdd-2bc9-408b-9895-a61af25d9068","block_type":"box","text":"transactions involving the acquisition or disposition of por tfolio securities, regardless of whether the Fund may be","page_number":9,"box":{"x":68,"y":279,"width":811,"height":11}},{"id":"c126de41-149d-43f9-9ab7-68b311bb2ed5","block_type":"box","text":"considered to be an underwriter under the Securities Act or is otherwise engaged in the underwriting business to the","page_number":9,"box":{"x":69,"y":294,"width":834,"height":11}},{"id":"8a32ea72-a1f5-43da-a6e1-0e46006d6356","block_type":"box","text":"extent permitted by applicable law.","page_number":9,"box":{"x":69,"y":309,"width":245,"height":11}},{"id":"5923dae8-df01-4d40-bb62-b657e2e3772b","block_type":"box","text":"With respect to the fundamental policy relating to lending set for th in (7) above, the Investment Company Act","page_number":9,"box":{"x":101,"y":332,"width":778,"height":11}},{"id":"23a74cf6-0ec6-4cca-9590-e7e51aa6a078","block_type":"box","text":"does not prohibit the fund from making loans (including lending its securities); however, Commission staff","page_number":9,"box":{"x":69,"y":347,"width":756,"height":11}},{"id":"60cd4fa3-f22d-4487-99d0-38c60fd1b328","block_type":"box","text":"interpretations currently prohibit funds from lending more than one-third of their total assets (including lending its","page_number":9,"box":{"x":70,"y":362,"width":807,"height":11}},{"id":"34174c6b-9e5c-4af4-ad65-081a7752c9c5","block_type":"box","text":"securities), except through the purchase of debt obligations or the use of repurchase agreements. In addition,","page_number":9,"box":{"x":69,"y":377,"width":784,"height":12}},{"id":"6df92782-1892-4bdb-9ab6-619f335d9874","block_type":"box","text":"collateral arrangements with respect to options, forward currency and futures transactions and other derivative","page_number":9,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"ebb5f686-5fca-4695-a815-bd7413a09290","block_type":"box","text":"instruments (as applicable), as well as delays in the settlement of securities transactions, will not be considered","page_number":9,"box":{"x":70,"y":407,"width":803,"height":12}},{"id":"216f146a-be69-4d6e-8221-62f8adf8dc3c","block_type":"box","text":"loans.","page_number":9,"box":{"x":70,"y":423,"width":40,"height":9}},{"id":"958793fc-751d-49af-b0c1-37dbc48cc040","block_type":"box","text":"The Fund is currently classified as a diversified fund under the Investment Company Act. This means that the","page_number":9,"box":{"x":101,"y":445,"width":777,"height":11}},{"id":"334b61d6-e427-4b8f-9972-3a5f32d3f779","block_type":"box","text":"Fund may not purchase securities of an issuer (other than (i) obligations issued or guaranteed by the U.S.","page_number":9,"box":{"x":70,"y":460,"width":751,"height":12}},{"id":"4070b1a0-d9ae-4955-a10f-e691788238d4","block_type":"box","text":"Government, its agencies or instrumentalities and (ii) securities of other investment companies) if, with respect to","page_number":9,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"f1debdbb-4930-4008-973b-08a4767241a5","block_type":"box","text":"75% of its total assets, (a) more than 5% of the Fund’s total assets would be invested in securities of that issuer or","page_number":9,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"b58af286-b9e8-479d-8c99-5fa3678f0f6d","block_type":"box","text":"(b) the Fund would hold more than 10% of the outstanding voting securities of that issuer. With respect to the","page_number":9,"box":{"x":69,"y":506,"width":781,"height":11}},{"id":"866381fc-d36e-45af-8c8f-31d101678318","block_type":"box","text":"remaining 25% of its total assets, the Fund can invest more than 5% of its assets in one issuer. Under the","page_number":9,"box":{"x":69,"y":521,"width":759,"height":11}},{"id":"1c069f3b-922b-45f1-9e66-875ce197e6af","block_type":"box","text":"Investment Company Act, the Fund cannot change its classification from diversified to non-diversified without","page_number":9,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"5c68fe8a-a579-4423-ae37-e258fc12e01d","block_type":"box","text":"shareholder approval.","page_number":9,"box":{"x":69,"y":551,"width":153,"height":11}},{"id":"6b4f890a-0d98-4fd6-9612-48048f6a47b4","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":9,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"2a1087ba-16f7-4d46-9af4-50493df4eb2d","block_type":"box","text":"approval, the Fund may not:","page_number":9,"box":{"x":69,"y":589,"width":197,"height":11}},{"id":"5712b08b-a7ac-4ccc-a39c-acbd0f98017a","block_type":"box","text":"a. Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":9,"box":{"x":102,"y":612,"width":742,"height":11}},{"id":"cf6f1921-4894-48ee-90b8-03f645b824a7","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":9,"box":{"x":69,"y":627,"width":759,"height":11}},{"id":"d2ce18ff-c727-4485-a38f-cf31bdd91625","block_type":"box","text":"investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of funds”","page_number":9,"box":{"x":70,"y":642,"width":829,"height":11}},{"id":"847f4f6c-683c-419c-b225-e9a9e04f5ea0","block_type":"box","text":"provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are purchased by","page_number":9,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"13bc49a6-c452-47f0-9515-e51f9d082344","block_type":"box","text":"another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":9,"box":{"x":69,"y":672,"width":763,"height":11}},{"id":"977fb18f-5dba-4a6f-9f4d-66180e980c58","block_type":"box","text":"b. Make shor t sales of securities or maintain a shor t position, except to the extent permitted by the Fund’s","page_number":9,"box":{"x":102,"y":695,"width":765,"height":11}},{"id":"2899eba1-7728-465f-90d9-c7295323f415","block_type":"box","text":"Prospectus and SAI, as amended from time to time, and applicable law.","page_number":9,"box":{"x":69,"y":710,"width":510,"height":11}},{"id":"b9345bef-4a50-424f-9d57-cb05a4d744ac","block_type":"box","text":"Unless otherwise indicated or with respect to policies adopted pursuant to Rule 35d-1 adopted under the","page_number":9,"box":{"x":102,"y":733,"width":750,"height":10}},{"id":"1d0e3237-5dc9-4987-82a4-450fc3ebc6b0","block_type":"box","text":"Investment Company Act, all limitations under the Fund’s fundamental or non-fundamental investment restrictions","page_number":9,"box":{"x":70,"y":748,"width":810,"height":11}},{"id":"32d7f1a6-444c-4c2d-9a8d-0a7074474c7c","block_type":"box","text":"apply only at the time that a transaction is under taken. Any change in the percentage of the Fund’s assets invested","page_number":9,"box":{"x":69,"y":763,"width":824,"height":11}},{"id":"3f80558c-1c80-494e-b638-6c94dc97b046","block_type":"box","text":"in cer tain securities or other instruments resulting from market fluctuations or other changes in the Fund’s total","page_number":9,"box":{"x":70,"y":778,"width":797,"height":11}},{"id":"fc852ee0-b886-4939-a636-6f41114e2c3b","block_type":"box","text":"assets will not require the Fund to dispose of an investment until BlackRock determines that it is practicable to sell","page_number":9,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"e7fe1942-6370-44e2-9b6f-5eadee73fb41","block_type":"box","text":"or close out the investment without undue market or tax consequences.","page_number":9,"box":{"x":69,"y":808,"width":511,"height":11}},{"id":"97c6dd0f-3276-4c40-8692-f7f281114069","block_type":"box","text":"III. Information on Trustees and Officers","page_number":9,"box":{"x":69,"y":838,"width":290,"height":9}},{"id":"5567d5e6-a81f-41c4-8ee5-11204751332c","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Trustee”), thir teen of whom are not “interested persons” of","page_number":9,"box":{"x":101,"y":861,"width":788,"height":11}},{"id":"7a3a911d-7518-4ec6-b0e0-7f2e4eea4c0f","block_type":"box","text":"the Trust as defined in the Investment Company Act (the “Independent Trustees”). The registered investment","page_number":9,"box":{"x":68,"y":876,"width":779,"height":11}},{"id":"d437f384-3bb0-4cb3-8dca-ac4c3bc75d7b","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":9,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"eadb1f52-14b7-4b95-a668-b1dc67965786","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":9,"box":{"x":70,"y":906,"width":793,"height":11}},{"id":"ec63d98f-9aa3-419b-bc91-6c9817003ad9","block_type":"box","text":"I-7","page_number":9,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"3cab43f5-4556-45e7-8db7-081fa893b6b9","block_type":"box","text":"NM0926U-5977728-9/232","page_number":9,"box":{"x":764,"y":970,"width":141,"height":7}},{"id":"93ce9a3b-0d20-49cb-86cf-e5f9052cf945","block_type":"box","text":"Complex”). The Trust is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex.","page_number":10,"box":{"x":69,"y":45,"width":822,"height":11}},{"id":"076c0271-c1d1-46e9-abee-71b99d197c5c","block_type":"box","text":"The Trustees also oversee as board members the operations of the other open-end registered investment companies","page_number":10,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"2b392e57-abe8-4511-9461-575761418d22","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":10,"box":{"x":70,"y":75,"width":335,"height":11}},{"id":"be381173-eb25-4622-ad62-250e799d0276","block_type":"box","text":"The Board has overall responsibility for the oversight of the Trust and the Fund. The Chair of the Board is an","page_number":10,"box":{"x":101,"y":98,"width":769,"height":11}},{"id":"d17b3706-d35e-4ad7-bfe3-8c4243e1419a","block_type":"box","text":"Independent Trustee, and the Chair of each Board committee (each, a “Committee”) is an Independent Trustee. The","page_number":10,"box":{"x":70,"y":113,"width":827,"height":11}},{"id":"13ccaa8d-d1c5-4933-8a70-c2cd3546ff56","block_type":"box","text":"Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance","page_number":10,"box":{"x":70,"y":128,"width":821,"height":11}},{"id":"a3a45d9b-71c8-4569-9cf7-6f9361624c39","block_type":"box","text":"Committee, a Per formance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board","page_number":10,"box":{"x":69,"y":143,"width":835,"height":11}},{"id":"c72bfd58-5a29-4199-bb09-ec7aa5fd099a","block_type":"box","text":"is to preside at all meetings of the Board and to act as a liaison with service providers, officers, attorneys and other","page_number":10,"box":{"x":70,"y":158,"width":830,"height":11}},{"id":"48ca0ec5-8940-4455-aa13-0affd4a19b76","block_type":"box","text":"Trustees generally between meetings. The Chair of each Committee per forms a similar role with respect to the","page_number":10,"box":{"x":68,"y":173,"width":789,"height":11}},{"id":"1db0a04e-d702-417b-9e1e-6d299144c5df","block_type":"box","text":"Committee. The Chair of the Board or the Chair of a Committee may also per form such other functions as may be","page_number":10,"box":{"x":69,"y":188,"width":810,"height":11}},{"id":"2bc46551-0c73-4961-82d6-8123774c5039","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Trustees meet regularly outside the","page_number":10,"box":{"x":69,"y":203,"width":809,"height":12}},{"id":"6afc66d0-7b01-4fcc-8b03-1cac03112f9e","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to the Fund. The Board has","page_number":10,"box":{"x":70,"y":218,"width":794,"height":12}},{"id":"92b0bbae-6480-409d-b0cf-3cde59e0b6b0","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":10,"box":{"x":69,"y":234,"width":816,"height":11}},{"id":"82d8c144-8f9d-4240-bd1d-4fe4ac701f69","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and repor ts","page_number":10,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"ee364852-bd2b-4fcd-835b-9ac0ae90e148","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":10,"box":{"x":70,"y":264,"width":811,"height":11}},{"id":"f5c214cc-c17e-4960-aafa-d7adf90ee4ca","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":10,"box":{"x":68,"y":279,"width":809,"height":11}},{"id":"274a51f8-325d-4299-a55a-c64510186f1b","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":10,"box":{"x":69,"y":294,"width":825,"height":11}},{"id":"194a4fad-f81f-44f2-8b0d-0d184e4c6bc9","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":10,"box":{"x":69,"y":309,"width":441,"height":11}},{"id":"bf285c13-8a11-4ebb-aace-d4b5e13c4052","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":10,"box":{"x":101,"y":332,"width":777,"height":11}},{"id":"d5e98768-f81d-41ac-9c24-3a919749579d","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":10,"box":{"x":69,"y":347,"width":832,"height":11}},{"id":"2fc6bd9d-ac24-4fd0-b76c-4a8e4acbc8b8","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Trust’s char ter, and the Fund’s","page_number":10,"box":{"x":68,"y":362,"width":820,"height":11}},{"id":"ade34304-8509-40f1-a836-51cc7cc23aed","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s per formance, operations","page_number":10,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"86e2cf69-3c1c-491b-902c-fa299df4eec7","block_type":"box","text":"and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running","page_number":10,"box":{"x":69,"y":392,"width":819,"height":12}},{"id":"eb15663d-dc9b-4e2c-9938-a7dbba215a6a","block_type":"box","text":"the operations of the Fund.","page_number":10,"box":{"x":68,"y":407,"width":192,"height":11}},{"id":"c360ae5d-e978-459e-938b-0a9661970c33","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":10,"box":{"x":102,"y":430,"width":785,"height":11}},{"id":"715f06e0-a613-45ed-a8c1-633f5e5e68a3","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":10,"box":{"x":69,"y":445,"width":828,"height":12}},{"id":"8e090e8c-4d44-45cb-8d68-5966d5ad83a3","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":10,"box":{"x":69,"y":460,"width":832,"height":12}},{"id":"d0acef0b-3665-48c1-af69-88a3594e005d","block_type":"box","text":"there are a number of risk management functions per formed by the Manager and the sub-advisers or other service","page_number":10,"box":{"x":68,"y":475,"width":820,"height":12}},{"id":"e350edcd-54ab-449d-bfac-57f69f4b8830","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":10,"box":{"x":70,"y":491,"width":811,"height":11}},{"id":"8054e199-5c87-40cb-8de1-99f3d05490dd","block_type":"box","text":"par t of the Board’s general oversight of the Fund and is addressed as par t of various Board and Committee","page_number":10,"box":{"x":70,"y":506,"width":767,"height":11}},{"id":"8e609865-3653-4583-90b8-70dd1cb26d52","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews repor ts from, among others, management, the","page_number":10,"box":{"x":69,"y":521,"width":815,"height":11}},{"id":"5797895f-41a2-4c9b-9d67-aefb44888e10","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":10,"box":{"x":70,"y":536,"width":803,"height":11}},{"id":"e6d2b314-79fb-41ef-a1e0-8ca3592e3a39","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":10,"box":{"x":69,"y":551,"width":840,"height":11}},{"id":"52ffee2b-7ed1-4dce-a9ca-1d085085d3aa","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Trustees,","page_number":10,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"cfb46308-4981-4d45-81ee-70fba79848d2","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":10,"box":{"x":69,"y":581,"width":817,"height":12}},{"id":"92212365-0b72-4bba-b351-0778902dadf1","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":10,"box":{"x":69,"y":596,"width":812,"height":11}},{"id":"54ba7dfc-af63-4376-9d4e-c0511ad5c737","block_type":"box","text":"testing of the Trust’s compliance program and repor ts to the Board regarding compliance matters for the Fund and","page_number":10,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"f13ffdff-40fd-4e9e-a179-1356c25a4a1e","block_type":"box","text":"its service providers. The Independent Trustees have engaged independent legal counsel to assist them in","page_number":10,"box":{"x":70,"y":627,"width":759,"height":11}},{"id":"6afc2b41-4086-4072-b8a2-af12abeaf92b","block_type":"box","text":"per forming their oversight responsibilities.","page_number":10,"box":{"x":70,"y":642,"width":299,"height":11}},{"id":"b0e13066-f3dc-482f-9d7b-2a9ad7a4ed41","block_type":"box","text":"Audit Committee.","page_number":10,"box":{"x":101,"y":665,"width":122,"height":8}},{"id":"8c553f6b-7205-4b3d-926f-bc17ee10d964","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":10,"box":{"x":229,"y":664,"width":673,"height":12}},{"id":"e24db866-0c82-4b4c-b64a-c6370dfeb97a","block_type":"box","text":"A. Cotty, Jeffrey Jarczyk, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Trustees.","page_number":10,"box":{"x":68,"y":680,"width":831,"height":11}},{"id":"9da8d2b6-92e6-4fa8-85d8-be21dc3fed13","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":10,"box":{"x":68,"y":695,"width":820,"height":11}},{"id":"ee0ff5ba-4a5f-4234-b3aa-fb1fb394118e","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":10,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"89780195-2b4c-4632-98f6-55780c35e65b","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":10,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"33914e58-81ff-4999-8c54-7d7239a78c0a","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":10,"box":{"x":70,"y":740,"width":825,"height":11}},{"id":"c79e78ad-3549-4e3d-b868-b1334fc48461","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":10,"box":{"x":70,"y":755,"width":807,"height":11}},{"id":"06c852d0-615e-431e-adf8-860171120cdc","block_type":"box","text":"fees for the Fund; (3) review the conduct and results of each independent audit of the Fund’s annual financial","page_number":10,"box":{"x":68,"y":770,"width":781,"height":11}},{"id":"b6d21bfb-9427-4964-90f4-094550eaafef","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":10,"box":{"x":69,"y":786,"width":834,"height":11}},{"id":"9d827fe3-0278-4bca-8cdb-b98a2512e953","block_type":"box","text":"regarding the accounting or financial repor ting policies and practices of the Fund and the internal controls of the Fund","page_number":10,"box":{"x":69,"y":801,"width":838,"height":11}},{"id":"b738dfed-5d00-4c02-8f8c-4cec0ef487ce","block_type":"box","text":"and cer tain service providers; (5) oversee the per formance of the Fund’s Independent Registered Public Accounting","page_number":10,"box":{"x":69,"y":816,"width":825,"height":11}},{"id":"4c8825b9-c62f-4e6e-974b-ecd269b8f301","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":10,"box":{"x":70,"y":831,"width":809,"height":11}},{"id":"ae84c92f-6e45-419f-829d-d1370ef20b1f","block_type":"box","text":"per formance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":10,"box":{"x":70,"y":846,"width":815,"height":11}},{"id":"aa19e2c4-ef81-4f72-a524-cbfaef14fa29","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial repor ting and controls;","page_number":10,"box":{"x":69,"y":861,"width":774,"height":11}},{"id":"c14a00d3-d93f-4a41-8e58-12fa3ba35d70","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":10,"box":{"x":69,"y":876,"width":815,"height":11}},{"id":"446f93a4-7834-49dd-addc-aae78138dd3b","block_type":"box","text":"regarding financial repor ting; and (9) under take such other duties and responsibilities as may from time to time be","page_number":10,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"67e143fd-a6f8-4298-a950-1f1ae79e85bb","block_type":"box","text":"I-8","page_number":10,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"07a134d5-ff1a-4ffe-9e74-5eb813238d73","block_type":"box","text":"NM0926U-5977728-10/232","page_number":10,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"fe0407a7-1ce1-4285-988c-0f7e3112f964","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written char ter for the Audit Committee.","page_number":11,"box":{"x":69,"y":45,"width":812,"height":11}},{"id":"402fa192-ef7d-4b9d-af4d-8932123c5931","block_type":"box","text":"During the fiscal year ended May 31, 2026, the Audit Committee met four times.","page_number":11,"box":{"x":70,"y":60,"width":574,"height":11}},{"id":"f15792ff-0ab5-41fe-8583-417d508fc33e","block_type":"box","text":"Governance and Nominating Committee.","page_number":11,"box":{"x":102,"y":83,"width":286,"height":11}},{"id":"c1f0fc09-4502-4c83-a61b-4de38e0e0cb1","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":11,"box":{"x":394,"y":82,"width":464,"height":12}},{"id":"b156d69a-605b-4877-999c-0ca4054231cc","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton,","page_number":11,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"6ee7b40d-13b3-40ac-bc5e-585b651a63db","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Trustees. The principal responsibilities of the","page_number":11,"box":{"x":70,"y":113,"width":784,"height":11}},{"id":"7e90af85-49ab-4cc8-a24d-df517e108252","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Trustees of the Trust and","page_number":11,"box":{"x":69,"y":128,"width":803,"height":11}},{"id":"8e74f482-3e98-4df9-ac85-421a42198136","block_type":"box","text":"recommend Independent Trustee nominees for election by shareholders or appointment by the Board; (2) advise the","page_number":11,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"d2640e87-daf8-4476-90d8-d1a199268f41","block_type":"box","text":"Board with respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee","page_number":11,"box":{"x":70,"y":158,"width":828,"height":11}},{"id":"7148178a-8c44-4c37-a354-25cc69a4b70a","block_type":"box","text":"periodic self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review","page_number":11,"box":{"x":70,"y":173,"width":809,"height":11}},{"id":"5c7158c8-1705-47a9-ba61-c6fdec9180bb","block_type":"box","text":"and make recommendations regarding Independent Trustee compensation; (5) monitor corporate governance matters","page_number":11,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"b8047018-7c56-4f0e-b1ea-08f5bc3715d8","block_type":"box","text":"and develop appropriate recommendations to the Board; (6) act as the administrative committee with respect to","page_number":11,"box":{"x":69,"y":203,"width":800,"height":11}},{"id":"0ee3e1a3-5db6-4f03-86d5-ab3db2a4fc4e","block_type":"box","text":"Board policies and procedures, committee policies and procedures (other than the Audit Committee) and codes of","page_number":11,"box":{"x":70,"y":218,"width":813,"height":12}},{"id":"425653ba-33b8-4a1a-b338-2b848232bf06","block_type":"box","text":"ethics as they relate to Independent Trustees; and (7) under take such other duties and responsibilities as may from","page_number":11,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"fed3c487-1065-4b31-be0e-f41674c21100","block_type":"box","text":"time to time be delegated by the Board to the Governance Committee. The Governance Committee may consider","page_number":11,"box":{"x":68,"y":249,"width":804,"height":11}},{"id":"f4cef254-0818-4407-af07-984ac7e7ac40","block_type":"box","text":"nominations for Trustees made by the Fund’s shareholders as it deems appropriate. Under the Trust’s Amended and","page_number":11,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"a3bca27b-1ffe-408f-9619-d6583e638c33","block_type":"box","text":"Restated Code of Regulations (“Bylaws”), shareholders must follow cer tain procedures to nominate a person for","page_number":11,"box":{"x":70,"y":279,"width":801,"height":11}},{"id":"d55e78fb-d6c3-446a-8831-e2c157de8f6b","block_type":"box","text":"election as a Trustee at a shareholder meeting at which Trustees are to be elected. Under these advance notice","page_number":11,"box":{"x":69,"y":294,"width":799,"height":11}},{"id":"e8318cdd-04aa-4839-b307-f60a8e650d30","block_type":"box","text":"procedures, notice of the proposed nominee to the Secretary of the Trust must be delivered to or mailed and","page_number":11,"box":{"x":70,"y":309,"width":776,"height":11}},{"id":"2cfdf157-b7e4-426e-8e18-a4b177735f05","block_type":"box","text":"received at the principal executive offices of the Trust not later than the close of business on the fifth day following","page_number":11,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"82c74182-a790-4d8b-9eb5-91498d4633bf","block_type":"box","text":"the day on which notice of the date of the meeting was mailed or public disclosure of the date of the meeting was","page_number":11,"box":{"x":68,"y":339,"width":812,"height":12}},{"id":"9697ad0e-b485-49f2-a9be-9d6501138dc6","block_type":"box","text":"made, whichever first occurs. The Trust’s Bylaws provide that notice of a proposed nomination must include cer tain","page_number":11,"box":{"x":69,"y":355,"width":823,"height":11}},{"id":"6958f824-d50a-48be-a2bc-8d486430f6c6","block_type":"box","text":"information about the shareholder and the nominee, as well as cer tain other information, including a written consent","page_number":11,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"40c7e884-e481-4800-92c9-5c3ade9f77d8","block_type":"box","text":"of the proposed nominee to serve if elected. Reference is made to the Trust’s Bylaws for more details. The Board","page_number":11,"box":{"x":69,"y":385,"width":811,"height":11}},{"id":"f31314e2-73db-48cf-80de-efc87f68bec8","block_type":"box","text":"has adopted a written char ter for the Governance Committee. During the fiscal year ended May 31, 2026, the","page_number":11,"box":{"x":69,"y":400,"width":783,"height":11}},{"id":"ee1c59ae-3cff-44b2-9147-0d2308546a73","block_type":"box","text":"Governance Committee met ten times.","page_number":11,"box":{"x":69,"y":415,"width":274,"height":9}},{"id":"9f39959a-1bf6-41ea-9bee-08684b32e732","block_type":"box","text":"Compliance Committee.","page_number":11,"box":{"x":102,"y":438,"width":168,"height":11}},{"id":"d7f4430e-db69-4abc-9347-6389b140e7c7","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":11,"box":{"x":276,"y":438,"width":629,"height":11}},{"id":"bcf8035f-4ed4-4832-b515-0e8960845fdd","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":11,"box":{"x":68,"y":453,"width":828,"height":11}},{"id":"09404d3a-f855-4201-a4d1-713052fa9f04","block_type":"box","text":"whom are Independent Trustees. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":11,"box":{"x":68,"y":468,"width":771,"height":11}},{"id":"6bed1caa-0ba3-4342-a801-ebf1df6daa9e","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Trust, the fund-related activities of","page_number":11,"box":{"x":69,"y":483,"width":835,"height":11}},{"id":"aef8b20a-6428-4af9-8dfc-53838e1ebbf3","block_type":"box","text":"BlackRock and any sub-adviser and the Trust’s third-par ty service providers. The Compliance Committee’s","page_number":11,"box":{"x":70,"y":498,"width":754,"height":11}},{"id":"43758e1f-a40e-412d-ae78-656c341ac274","block_type":"box","text":"responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the Trust and its","page_number":11,"box":{"x":69,"y":513,"width":834,"height":11}},{"id":"ff114cf8-d620-46c5-b54b-d4008d70eacd","block_type":"box","text":"service providers and recommend changes or additions to such policies and procedures; (2) review information on","page_number":11,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"b4412399-b1bf-4317-a21e-a1a60e488cc2","block_type":"box","text":"and, where appropriate, recommend policies concerning the Trust’s compliance with applicable law; (3) review","page_number":11,"box":{"x":69,"y":544,"width":785,"height":11}},{"id":"bea5fda6-cc7a-4e65-8479-4b6d73913656","block_type":"box","text":"repor ts from, oversee the annual per formance review of, and make cer tain recommendations and determinations","page_number":11,"box":{"x":69,"y":559,"width":811,"height":11}},{"id":"c4210554-0f6f-4880-a55c-6c161c918556","block_type":"box","text":"regarding the Trust’s Chief Compliance Officer (the “CCO”), including determining the amount and structure of the","page_number":11,"box":{"x":69,"y":574,"width":812,"height":11}},{"id":"80785ed2-3305-4378-bbc3-59fa6ee9188e","block_type":"box","text":"CCO’s compensation and recommending such amount and structure to the full Board for approval and ratification;","page_number":11,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"07c2538f-9cbb-48fc-9944-684284b0a079","block_type":"box","text":"and (4) under take such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":11,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"aac44417-d6ee-4845-a959-14507197ded4","block_type":"box","text":"Compliance Committee. The Board has adopted a written char ter for the Compliance Committee. During the fiscal","page_number":11,"box":{"x":69,"y":619,"width":811,"height":11}},{"id":"07c37121-a861-4242-a44a-e5ba8a7b9584","block_type":"box","text":"year ended May 31, 2026, the Compliance Committee met four times.","page_number":11,"box":{"x":68,"y":634,"width":502,"height":11}},{"id":"13104e60-c5d8-44eb-b1b1-04736da3a300","block_type":"box","text":"Per formance Oversight Committee.","page_number":11,"box":{"x":102,"y":657,"width":248,"height":11}},{"id":"cae56658-a01a-48a3-b7c5-ca22334ee284","block_type":"box","text":"The members of the Per formance Oversight Committee (the “Per formance","page_number":11,"box":{"x":356,"y":657,"width":531,"height":11}},{"id":"76ca3ac7-203d-4176-adfb-d4ecb6b32738","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton, Neil A.","page_number":11,"box":{"x":69,"y":672,"width":829,"height":11}},{"id":"35190d00-9750-49a9-beae-b95ec9f778b1","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Trustees. The Per formance Oversight Committee’s purpose is","page_number":11,"box":{"x":69,"y":687,"width":830,"height":11}},{"id":"b7bcefac-adc4-496e-af9c-b92cb4a03d70","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment per formance relative to its agreed","page_number":11,"box":{"x":68,"y":702,"width":832,"height":12}},{"id":"0ae51ca5-8bcb-4356-afce-2e61d233c857","block_type":"box","text":"upon per formance objectives and to assist the Independent Trustees in their consideration of investment advisory","page_number":11,"box":{"x":69,"y":717,"width":816,"height":12}},{"id":"3033f467-c854-4ff0-b44d-e4ff35f9653a","block_type":"box","text":"agreements. The Per formance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":11,"box":{"x":69,"y":732,"width":782,"height":12}},{"id":"359bc6ce-7a00-4139-a58b-b93e5ac8814d","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":11,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"9b2e9bfc-1f02-48d0-aff7-440b68f2de8f","block_type":"box","text":"and practices; (2) review information on the Fund’s investment per formance; (3) review information on appropriate","page_number":11,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"dddab088-59a3-4970-b8fc-24ab96e53275","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":11,"box":{"x":69,"y":778,"width":803,"height":11}},{"id":"3e6efb63-8176-4be3-985e-769e4eccdda5","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":11,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"f020c243-1260-4140-bbe7-389ba1d31060","block_type":"box","text":"the Per formance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":11,"box":{"x":68,"y":808,"width":811,"height":11}},{"id":"bfe5a263-26e7-4f0a-8fc5-42e2c5faabec","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":11,"box":{"x":69,"y":823,"width":757,"height":12}},{"id":"bb5dfb94-bd97-42b8-80bd-e6026edacfc5","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":11,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"a87e1394-82b0-486c-b090-d161d1fdb30f","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) under take such other","page_number":11,"box":{"x":68,"y":853,"width":800,"height":12}},{"id":"1fd2c685-f851-4726-a7b1-16024f7945ff","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Per formance Oversight","page_number":11,"box":{"x":69,"y":869,"width":780,"height":11}},{"id":"7f213e36-e45e-4c70-a6eb-a6d45a1da4ec","block_type":"box","text":"Committee. The Board has adopted a written char ter for the Per formance Oversight Committee. During the fiscal year","page_number":11,"box":{"x":69,"y":884,"width":838,"height":11}},{"id":"a3d48094-b4ff-4d53-b95f-e671a4c412f9","block_type":"box","text":"ended May 31, 2026, the Per formance Oversight Committee met five times.","page_number":11,"box":{"x":69,"y":899,"width":544,"height":11}},{"id":"825455a9-e432-473a-8966-6d8de693b34c","block_type":"box","text":"I-9","page_number":11,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"413d6327-1876-406b-9f3e-125af1c36ecb","block_type":"box","text":"NM0926U-5977728-11/232","page_number":11,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"bdbeb91c-6712-423e-a3d4-a4a62b2406bd","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":12,"box":{"x":101,"y":45,"width":186,"height":11}},{"id":"0597a1da-e9da-494d-922b-d4b46e133d26","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":12,"box":{"x":293,"y":45,"width":598,"height":11}},{"id":"d61e21c9-0296-4a1b-a30e-c1a5d31f86d6","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Trustees, and John M. Perlowski, who","page_number":12,"box":{"x":70,"y":60,"width":817,"height":11}},{"id":"1d05d16a-da8a-4921-a29b-13479d25fa2a","block_type":"box","text":"serves as an interested Trustee. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on","page_number":12,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"b75221b6-754d-4f5a-858b-1241e5284af4","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":12,"box":{"x":69,"y":90,"width":788,"height":11}},{"id":"c7555293-7be4-47af-938f-7d98cafbb14b","block_type":"box","text":"meetings of the Board; and (3) exercise such other authority as may from time to time be delegated to the Ad Hoc","page_number":12,"box":{"x":69,"y":105,"width":813,"height":11}},{"id":"d38fe8e0-9a08-493a-9ece-05d7b4d47daf","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written char ter for the Ad Hoc Topics Committee. During","page_number":12,"box":{"x":68,"y":120,"width":816,"height":12}},{"id":"80f162f7-528b-439a-a3e9-ddf3e4b76c8e","block_type":"box","text":"the fiscal year ended May 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":12,"box":{"x":68,"y":135,"width":575,"height":11}},{"id":"63fcf5b8-bfdc-495b-a987-254e08f7090d","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":12,"box":{"x":101,"y":158,"width":771,"height":11}},{"id":"c1a3f6be-7d3e-440b-869a-6c9099504ec3","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Trustee candidates (the “Statement","page_number":12,"box":{"x":69,"y":173,"width":827,"height":11}},{"id":"99206902-74c3-438b-ab28-a4303f4e298c","block_type":"box","text":"of Policy”). The Board believes that each Independent Trustee satisfied, at the time he or she was initially elected or","page_number":12,"box":{"x":69,"y":188,"width":830,"height":11}},{"id":"a8e324a9-e148-48b7-b289-27a9ced4a527","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. Fur thermore,","page_number":12,"box":{"x":69,"y":203,"width":825,"height":12}},{"id":"76dd9b37-84f1-4d5d-acd6-9a39423b5189","block_type":"box","text":"in determining that a par ticular Independent Trustee was and continues to be qualified to serve as a Trustee, the","page_number":12,"box":{"x":70,"y":218,"width":807,"height":12}},{"id":"d9bd04d1-14ed-4da3-b079-151274e534d0","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":12,"box":{"x":70,"y":234,"width":787,"height":11}},{"id":"012e3915-ebc4-4e8f-b422-4c26f72180e5","block_type":"box","text":"collectively, the Independent Trustees have balanced and diverse experience, skills, attributes and qualifications,","page_number":12,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"46b4ef5c-4b69-4d97-883d-c96e977f54f7","block_type":"box","text":"which allow the Board to operate effectively in governing the Trust and protecting the interests of shareholders.","page_number":12,"box":{"x":68,"y":264,"width":794,"height":11}},{"id":"e503cd3d-e845-4a86-a051-e6057df2d6ad","block_type":"box","text":"Among the attributes common to all Independent Trustees are their ability to review critically, evaluate, question and","page_number":12,"box":{"x":68,"y":279,"width":829,"height":11}},{"id":"66ce8eb3-e6a1-4b62-b66e-f36cfcc04c2c","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":12,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"ef33914c-669d-423b-88c4-faf2d3691cd6","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":12,"box":{"x":69,"y":309,"width":771,"height":11}},{"id":"d2f1fcd8-270f-4457-8093-780123a3c139","block_type":"box","text":"business judgment in the per formance of their duties as Trustees.","page_number":12,"box":{"x":69,"y":324,"width":473,"height":12}},{"id":"48955e51-4c27-42df-9d96-7117d76a48a6","block_type":"box","text":"Each Trustee’s ability to per form his or her duties effectively is evidenced by his or her educational background","page_number":12,"box":{"x":102,"y":347,"width":792,"height":11}},{"id":"ade24e11-12cc-4016-ad5d-bbffa32f45e0","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":12,"box":{"x":69,"y":362,"width":807,"height":11}},{"id":"f755e8d3-3a92-451f-a0e5-b296578805a1","block_type":"box","text":"board member of the Trust and the other funds in the BlackRock Fund Complexes (and any predecessor funds), other","page_number":12,"box":{"x":69,"y":377,"width":837,"height":11}},{"id":"970e9cfb-0fc5-4f71-aa86-b41531507e42","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":12,"box":{"x":70,"y":392,"width":759,"height":12}},{"id":"ae891f3e-e5e6-4063-a250-a86e73dd6245","block_type":"box","text":"par ticipation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":12,"box":{"x":70,"y":407,"width":685,"height":12}},{"id":"8f9aa31d-de16-4dc5-849f-64f092f73117","block_type":"box","text":"ad hoc","page_number":12,"box":{"x":762,"y":408,"width":47,"height":8}},{"id":"37054811-418c-4f82-9945-116243a13540","block_type":"box","text":"committees","page_number":12,"box":{"x":814,"y":408,"width":82,"height":8}},{"id":"63077bd6-7f02-4286-8cb4-243b74e2d06f","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":12,"box":{"x":68,"y":423,"width":395,"height":11}},{"id":"b488d1d2-624a-47ed-8280-872117df75ee","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Trustees that","page_number":12,"box":{"x":101,"y":445,"width":751,"height":11}},{"id":"ea4100f5-f8d3-4104-bfc6-d97be23741c2","block_type":"box","text":"suppor t the conclusion that each Trustee should serve on the Board.","page_number":12,"box":{"x":69,"y":461,"width":492,"height":10}},{"id":"8894d054-acc6-4efd-82f0-0791a24b5623","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":12,"box":{"x":68,"y":489,"width":409,"height":8}},{"id":"55e5e2cd-4815-46fa-9f0f-c4ffb6eda84d","block_type":"box","text":"Independent Trustees","page_number":12,"box":{"x":70,"y":505,"width":154,"height":11}},{"id":"9a6eeb1f-1842-4407-ad6f-486377dda79c","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":12,"box":{"x":69,"y":520,"width":781,"height":11}},{"id":"7490b40b-7c16-4d31-8113-b5ee627eb467","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":12,"box":{"x":265,"y":535,"width":604,"height":12}},{"id":"57db9050-c2ce-4c7c-88b3-4c6097999ba5","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":12,"box":{"x":265,"y":550,"width":623,"height":12}},{"id":"7e4075eb-d107-4ffa-b52d-c099c1562d27","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":12,"box":{"x":265,"y":566,"width":637,"height":11}},{"id":"33516286-3804-4496-8d76-f5fa8bb5b98d","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":12,"box":{"x":265,"y":581,"width":631,"height":11}},{"id":"f997f987-8567-44f1-9bc2-24969ad9145b","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the Nor th American","page_number":12,"box":{"x":264,"y":596,"width":626,"height":10}},{"id":"fc894790-a30a-45aa-81f3-27b527952673","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":12,"box":{"x":265,"y":611,"width":639,"height":11}},{"id":"c6cfcf9e-4057-4d80-8f22-516a25d1b88c","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":12,"box":{"x":264,"y":626,"width":637,"height":11}},{"id":"8c938c72-76b9-471e-ab57-a377cb6ebda2","block_type":"box","text":"exper tise across asset classes and strategies, and insight and perspective on the","page_number":12,"box":{"x":265,"y":641,"width":586,"height":11}},{"id":"6db2cf5c-a478-4d43-884e-b31426d1965a","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":12,"box":{"x":265,"y":656,"width":640,"height":11}},{"id":"3d46b498-de2b-47f9-97ab-c46591e5a444","block_type":"box","text":"Committee and the Per formance Oversight Committee.","page_number":12,"box":{"x":265,"y":671,"width":389,"height":12}},{"id":"7e12d095-43da-4556-8c83-ae3f14aeaf28","block_type":"box","text":"Susan J. Car ter Susan J. Car ter has over 35 years of experience in investment management. She has","page_number":12,"box":{"x":69,"y":694,"width":806,"height":11}},{"id":"18c95e50-7eb1-44b1-b65f-15422e8097ab","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. 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Cotty has more than 30 years of experience in the financial services industry,","page_number":13,"box":{"x":70,"y":164,"width":798,"height":11}},{"id":"819bdc10-3a01-494a-ad25-106eacf36450","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":13,"box":{"x":265,"y":179,"width":631,"height":11}},{"id":"02d6752a-6701-45fb-89f2-54a6de1adede","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":13,"box":{"x":265,"y":194,"width":633,"height":11}},{"id":"aa89cafe-d2da-4deb-8bf9-3749ef0d6ff0","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":13,"box":{"x":265,"y":209,"width":628,"height":11}},{"id":"e730b657-abfb-4288-98d3-788bda40f9b6","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. 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Prior to working at Fidelity, Mr. Jarczyk was a","page_number":13,"box":{"x":265,"y":323,"width":607,"height":11}},{"id":"3d04fa87-d975-4a1a-8599-7876c859fc5f","block_type":"box","text":"par tner at Deloitte and Ar thur Andersen for approximately 17 years. These positions have","page_number":13,"box":{"x":265,"y":338,"width":638,"height":11}},{"id":"0e984f14-ee41-477e-ab89-52811a2c28c7","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":13,"box":{"x":265,"y":353,"width":626,"height":11}},{"id":"16c76236-2f42-4ccf-9a44-0754408f4838","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":13,"box":{"x":265,"y":368,"width":563,"height":11}},{"id":"2e3438ae-e037-441e-801f-2d5d372c0695","block_type":"box","text":"Mr. Jarczyk also served as a consultant to the Independent Trustees prior to becoming an","page_number":13,"box":{"x":265,"y":383,"width":639,"height":11}},{"id":"d423b82a-3364-4791-a755-8bdb6eb41d23","block_type":"box","text":"Independent Trustee. Mr. Jarczyk has been determined by the Audit Committee to be an","page_number":13,"box":{"x":265,"y":398,"width":625,"height":11}},{"id":"6aadaa4d-80d9-4586-929f-d453e4b803f3","block_type":"box","text":"audit committee financial exper t, as such term is defined in the applicable Commission","page_number":13,"box":{"x":265,"y":413,"width":623,"height":11}},{"id":"46ed1f5b-bcfc-4389-a2a1-676dbde8cc9c","block_type":"box","text":"rules.","page_number":13,"box":{"x":265,"y":428,"width":38,"height":9}},{"id":"cc5d6703-c53a-40da-a394-461209bfcf78","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":13,"box":{"x":70,"y":451,"width":806,"height":11}},{"id":"530a2fc9-4ca3-4e6b-ac0f-1bc7e796ee31","block_type":"box","text":"global exper tise gained through his 35 year career at KPMG, a global professional","page_number":13,"box":{"x":264,"y":466,"width":584,"height":11}},{"id":"b4e9d785-ef63-4434-b221-2e78e5c65bab","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":13,"box":{"x":265,"y":481,"width":622,"height":11}},{"id":"94a3c558-b539-43d2-a80c-7cc190a29f73","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":13,"box":{"x":265,"y":496,"width":638,"height":12}},{"id":"ee818e27-ceb6-4407-8c3f-f00e4e40b603","block_type":"box","text":"and exper tise in financial repor ting, accounting, auditing, risk management, and","page_number":13,"box":{"x":265,"y":511,"width":570,"height":12}},{"id":"e9a61c56-82ef-403f-b295-b65386474fa7","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":13,"box":{"x":265,"y":526,"width":642,"height":12}},{"id":"b9ef681c-8d49-43e1-b5d1-1586399d2709","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":13,"box":{"x":265,"y":542,"width":626,"height":11}},{"id":"f202d119-471a-414a-a3e0-7b75c17d780d","block_type":"box","text":"industries including professional services, proper ty and casualty reinsurance, insurance,","page_number":13,"box":{"x":265,"y":557,"width":630,"height":11}},{"id":"778cd510-ebae-4723-b278-126ff50cfea1","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":13,"box":{"x":265,"y":572,"width":602,"height":11}},{"id":"1ba5ed71-a4af-42b2-8aed-6a03861a88c0","block_type":"box","text":"technology. Mr. Keizer is a cer tified public accountant and also served on the board of the","page_number":13,"box":{"x":264,"y":587,"width":643,"height":11}},{"id":"2cade2b3-5ecb-4bb9-943b-67ac3b46b07e","block_type":"box","text":"American Institute of Cer tified Public Accountants. Mr. Keizer has been determined by the","page_number":13,"box":{"x":264,"y":602,"width":639,"height":11}},{"id":"995cb4f2-3e4c-411a-82ab-fcd8482bb6ca","block_type":"box","text":"Audit Committee to be an audit committee financial exper t, as such term is defined in the","page_number":13,"box":{"x":264,"y":617,"width":641,"height":11}},{"id":"d5b9cd4b-2c8b-4c05-aeb2-5f9333b0c91e","block_type":"box","text":"applicable Commission rules.","page_number":13,"box":{"x":265,"y":632,"width":208,"height":11}},{"id":"8d3d8b04-058a-45c2-82ac-ce6add01a044","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":13,"box":{"x":69,"y":655,"width":769,"height":11}},{"id":"6e938fe4-80c1-47ac-84af-73514ef52b47","block_type":"box","text":"investment companies, most recently as a member of the boards of cer tain BlackRock","page_number":13,"box":{"x":265,"y":670,"width":621,"height":11}},{"id":"b0e03f7f-3d43-4642-9054-e73056cf92fe","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":13,"box":{"x":265,"y":685,"width":599,"height":12}},{"id":"1de511bd-ba2e-4b75-b390-6256e22ad1de","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":13,"box":{"x":265,"y":700,"width":641,"height":12}},{"id":"75b6356d-1571-42fe-8dcc-3f71297e0b6c","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":13,"box":{"x":264,"y":715,"width":602,"height":12}},{"id":"5d46605b-8667-41c7-b3f7-33fbee4a2e34","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":13,"box":{"x":264,"y":731,"width":617,"height":11}},{"id":"7fd4be7f-ae5e-45e3-b17f-186584169911","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":13,"box":{"x":265,"y":746,"width":629,"height":11}},{"id":"2b68769e-7091-4fc2-9d25-e162baa99da3","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":13,"box":{"x":264,"y":761,"width":628,"height":11}},{"id":"22541136-d5ed-42c5-8fc2-aab0b12717c1","block_type":"box","text":"ar ticles and books on these topics.","page_number":13,"box":{"x":265,"y":776,"width":251,"height":11}},{"id":"aace60d6-32b1-4cda-94e6-32e105b94e11","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":13,"box":{"x":70,"y":799,"width":764,"height":11}},{"id":"e2e0f4a2-7e00-45fd-833d-807e720b8e00","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":13,"box":{"x":265,"y":814,"width":642,"height":11}},{"id":"764fec59-c380-40c5-bb5d-50220599151c","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a par tner,","page_number":13,"box":{"x":264,"y":829,"width":593,"height":11}},{"id":"0a5f30c0-ec6b-47ef-bb5c-5ba6d5e5c5a5","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":13,"box":{"x":265,"y":844,"width":603,"height":11}},{"id":"410fb29c-260e-40ba-ac7d-e20370b1cea1","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":13,"box":{"x":265,"y":859,"width":629,"height":11}},{"id":"78ebb08e-3bb6-4dcd-b72b-045f6d5af141","block_type":"box","text":"I-11","page_number":13,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"55d36e63-f7ab-4698-99b8-8d9fc36b69c5","block_type":"box","text":"NM0926U-5977728-13/232","page_number":13,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f6cd03b0-7290-4cbe-88c5-27e996933dfd","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":14,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"42430d7f-ecbd-4b6c-bf62-b6c88298cbd4","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":14,"box":{"x":70,"y":65,"width":804,"height":12}},{"id":"a83ca360-9b99-4101-b262-6865914817c9","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":14,"box":{"x":265,"y":81,"width":552,"height":11}},{"id":"01bbfb5d-37ee-491a-b9ad-75ff08923ab0","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":14,"box":{"x":265,"y":96,"width":636,"height":11}},{"id":"18877d4f-44bd-49a2-9580-6aa82e840817","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":14,"box":{"x":265,"y":111,"width":639,"height":11}},{"id":"2117c8cf-a456-44a1-b820-9170917b600b","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":14,"box":{"x":265,"y":126,"width":576,"height":11}},{"id":"94cb0e0f-63b7-4387-9827-18e3144be1de","block_type":"box","text":"exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various","page_number":14,"box":{"x":265,"y":141,"width":626,"height":11}},{"id":"836b2e6d-4a1f-4b7b-ab6c-1e57785a0a11","block_type":"box","text":"roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific","page_number":14,"box":{"x":265,"y":156,"width":592,"height":11}},{"id":"50bdc679-3244-40a6-9f7d-511daae98e63","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Ar thur","page_number":14,"box":{"x":265,"y":171,"width":629,"height":12}},{"id":"88fde303-7b04-4a7a-b7e2-90c21d067ed4","block_type":"box","text":"Levitt. More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":14,"box":{"x":265,"y":186,"width":626,"height":12}},{"id":"20649c50-6bc0-405e-8234-a7da54b8c355","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":14,"box":{"x":264,"y":201,"width":608,"height":12}},{"id":"1564d684-2c71-4188-9fd5-231232a98f5d","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":14,"box":{"x":265,"y":217,"width":575,"height":11}},{"id":"770b1a50-2166-411c-8432-a04b07e1c02e","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":14,"box":{"x":264,"y":232,"width":591,"height":11}},{"id":"f17f18b1-9173-4b71-b8a9-198c8615a5fb","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":14,"box":{"x":265,"y":247,"width":627,"height":11}},{"id":"62644a60-0ebd-4a27-9517-8895663879a0","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":14,"box":{"x":265,"y":262,"width":578,"height":11}},{"id":"26036ef6-508c-4471-96ea-5bc6ef84ab55","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":14,"box":{"x":265,"y":277,"width":607,"height":11}},{"id":"0cb714b2-52d4-4eb1-a3e9-2bb51955afa6","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":14,"box":{"x":265,"y":292,"width":615,"height":11}},{"id":"24067b28-9e8f-47b8-a1f8-3e763c560706","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. At PwC, she assisted a","page_number":14,"box":{"x":265,"y":307,"width":638,"height":12}},{"id":"12b34551-f719-4514-a64e-83c519749cfa","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":14,"box":{"x":265,"y":322,"width":635,"height":12}},{"id":"63c700b9-d85e-4429-b736-3b5d749c47b4","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":14,"box":{"x":265,"y":338,"width":642,"height":11}},{"id":"a2f61d47-b40d-4e85-8608-f8b87bb5eca2","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":14,"box":{"x":265,"y":353,"width":627,"height":11}},{"id":"15adfb10-f9df-49fa-9a13-7ef6305fb2b2","block_type":"box","text":"as asset management regulation and compliance. In addition, Ms. Richards serves as a","page_number":14,"box":{"x":265,"y":368,"width":628,"height":11}},{"id":"0c124f09-03e6-4d18-b932-8bd9487d1228","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":14,"box":{"x":265,"y":383,"width":460,"height":11}},{"id":"2440eec2-3ed6-439b-bdaf-7bbdf4ee4ddd","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":14,"box":{"x":70,"y":406,"width":818,"height":11}},{"id":"0f94651b-f984-4bed-8412-21198700d58f","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":14,"box":{"x":264,"y":421,"width":603,"height":11}},{"id":"9887206e-9ec0-4a4e-b257-239e669ff17b","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":14,"box":{"x":265,"y":436,"width":606,"height":11}},{"id":"cb4f15a5-2b3f-475f-8aee-5eb95b7fad32","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. 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Stern* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":20,"box":{"x":79,"y":360,"width":448,"height":9}},{"id":"d59309d4-625e-4571-8800-866805b9ce3c","block_type":"box","text":"None None","page_number":20,"box":{"x":632,"y":360,"width":226,"height":9}},{"id":"2df0a009-e85c-46e2-82f5-3706a76a0758","block_type":"box","text":"Kenneth L. Urish","page_number":20,"box":{"x":79,"y":376,"width":117,"height":8}},{"id":"1c176e34-9f28-44f9-b38a-6eb8eb51a4f4","block_type":"box","text":".........................................","page_number":20,"box":{"x":199,"y":383,"width":328,"height":1}},{"id":"29c79f4b-b925-4d1a-9a10-007d07bd562a","block_type":"box","text":"None Over $100,000","page_number":20,"box":{"x":632,"y":375,"width":262,"height":11}},{"id":"0d15823d-a35b-4c85-8a3b-0662b316cfde","block_type":"box","text":"Claire A. Walton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":20,"box":{"x":79,"y":391,"width":448,"height":8}},{"id":"d054935f-7036-4c4b-a61c-fb5278223187","block_type":"box","text":"None Over $100,000","page_number":20,"box":{"x":632,"y":390,"width":262,"height":11}},{"id":"b410dfc2-afc8-49bd-a012-a75f25dd2174","block_type":"box","text":"Interested Trustees","page_number":20,"box":{"x":70,"y":406,"width":138,"height":9}},{"id":"fd4401ef-d5a0-43ec-8688-ae0d4cb6ff03","block_type":"box","text":"Rober t Fairbairn","page_number":20,"box":{"x":79,"y":421,"width":113,"height":9}},{"id":"a65a9beb-860b-479e-b68f-16531baba863","block_type":"box","text":".........................................","page_number":20,"box":{"x":199,"y":428,"width":328,"height":2}},{"id":"ad6599b3-f4dd-4472-a127-247c1dc3f43f","block_type":"box","text":"None Over $100,000","page_number":20,"box":{"x":632,"y":420,"width":262,"height":11}},{"id":"00cb6b9f-89ca-4cb7-bfd5-96b7aa69e2e6","block_type":"box","text":"John M. Perlowski","page_number":20,"box":{"x":78,"y":436,"width":127,"height":9}},{"id":"d778b9df-f3ea-4b69-a594-4a3ad662f86f","block_type":"box","text":".......................................","page_number":20,"box":{"x":215,"y":443,"width":312,"height":2}},{"id":"232a2347-60f3-443a-a46a-d155a907dae2","block_type":"box","text":"None Over $100,000","page_number":20,"box":{"x":632,"y":435,"width":262,"height":11}},{"id":"b7ee5206-e21b-4c20-a74c-c764a34e8fd2","block_type":"box","text":"* Information is provided as of April 1, 2026, the date Mr. Jarczyk and Mr. Stern first served as consultants to the Independent Trustees.","page_number":20,"box":{"x":70,"y":460,"width":782,"height":9}},{"id":"79405d1c-a29e-4f05-97cb-840c89a25aaf","block_type":"box","text":"As of September 3, 2026, the Trustees and officers of the Trust as a group directly or indirectly beneficially","page_number":20,"box":{"x":101,"y":481,"width":767,"height":11}},{"id":"ea138017-4c71-4cf6-bf5d-f27aa94496da","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":20,"box":{"x":69,"y":496,"width":819,"height":12}},{"id":"18fea630-5736-4697-bbf8-dd205ad35e28","block_type":"box","text":"(and, with respect to Mr. Jarczyk and Mr. Stern, as of April 1, 2026), none of the Independent Trustees of the Trust or","page_number":20,"box":{"x":69,"y":511,"width":839,"height":12}},{"id":"f49759d7-e290-4972-a944-98e86ec4f16f","block_type":"box","text":"their immediate family members owned beneficially or of record any securities of the Fund’s investment adviser,","page_number":20,"box":{"x":68,"y":526,"width":798,"height":12}},{"id":"0583c9dd-6a7b-443c-8ffd-734f6ccbbe0b","block_type":"box","text":"principal underwriter, or any person directly or indirectly controlling, controlled by, or under common control with such","page_number":20,"box":{"x":70,"y":542,"width":831,"height":11}},{"id":"eacf216e-e505-4b60-b565-6fa03238d25b","block_type":"box","text":"entities.","page_number":20,"box":{"x":69,"y":557,"width":56,"height":9}},{"id":"8c4a7e90-2ee9-44a2-99d3-0e895f4a8c95","block_type":"box","text":"Compensation of Trustees","page_number":20,"box":{"x":69,"y":587,"width":190,"height":11}},{"id":"573179e4-4cc8-437f-808b-eeeec75518e0","block_type":"box","text":"Each Trustee who is an Independent Trustee is paid as compensation an annual retainer of $375,000 per year","page_number":20,"box":{"x":102,"y":609,"width":791,"height":12}},{"id":"2c7b7d40-45a7-4a1b-8780-2b92694329e0","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":20,"box":{"x":68,"y":625,"width":810,"height":11}},{"id":"973f5727-51e5-4cf5-b508-985d217820f1","block_type":"box","text":"including the Trust, and a $20,000 board meeting fee to be paid for each in-person board meeting attended (and may","page_number":20,"box":{"x":70,"y":639,"width":838,"height":12}},{"id":"4265ec05-9607-49fc-b3fa-68c07a772518","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":20,"box":{"x":69,"y":655,"width":807,"height":11}},{"id":"f1779ff7-7fa4-4b53-b901-6505089330f0","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":20,"box":{"x":69,"y":670,"width":791,"height":11}},{"id":"06b5e549-47ac-4d0a-87b4-cd061800e3e9","block_type":"box","text":"together with out-of-pocket expenses in accordance with a board policy on travel and other business expenses","page_number":20,"box":{"x":68,"y":685,"width":786,"height":12}},{"id":"10e0bebc-7f35-4f27-bfeb-a78a26137a2c","block_type":"box","text":"relating to attendance at meetings. The Chairs of the Audit Committee, Compliance Committee, Governance","page_number":20,"box":{"x":69,"y":700,"width":769,"height":12}},{"id":"b87ba74e-2b40-484f-a0ce-34c2901ab8e9","block_type":"box","text":"Committee and Per formance Oversight Committee are paid as compensation an additional annual retainer of","page_number":20,"box":{"x":69,"y":715,"width":778,"height":12}},{"id":"142289f1-30ec-4061-99ea-c91291164d99","block_type":"box","text":"$45,000, respectively. The Chair of the Board is paid an additional annual retainer of $150,000.","page_number":20,"box":{"x":69,"y":730,"width":689,"height":12}},{"id":"216747c9-d42f-43fd-b9ee-dd995d4a0517","block_type":"box","text":"The following table sets for th the compensation the Trust paid to the Trustees, on behalf of the Fund, for the","page_number":20,"box":{"x":101,"y":753,"width":776,"height":12}},{"id":"be6e76bb-22c9-4c20-b1cb-457fda977ab6","block_type":"box","text":"fiscal year ended May 31, 2026 and the aggregate compensation paid to them by all BlackRock-advised Funds for the","page_number":20,"box":{"x":68,"y":768,"width":841,"height":12}},{"id":"7a689f27-e7ae-43b3-a478-2b811068a464","block_type":"box","text":"calendar year ended December 31, 2025.","page_number":20,"box":{"x":69,"y":784,"width":298,"height":11}},{"id":"3f3944e9-2c88-4342-9b14-09fb1591db97","block_type":"box","text":"Name","page_number":20,"box":{"x":69,"y":852,"width":32,"height":7}},{"id":"a06c0e28-7317-4118-8ada-f2395b29041e","block_type":"box","text":"Compensation","page_number":20,"box":{"x":551,"y":842,"width":83,"height":9}},{"id":"99a10f9c-9f26-4331-80c0-aee7f9212ca4","block_type":"box","text":"from the Fund","page_number":20,"box":{"x":552,"y":852,"width":81,"height":7}},{"id":"2614323e-cd2f-4eab-aa25-6632d5a2d242","block_type":"box","text":"Estimated Annual","page_number":20,"box":{"x":664,"y":832,"width":102,"height":7}},{"id":"adb8ddf3-4a97-4ae5-9436-5a141b9210a0","block_type":"box","text":"Benefits upon","page_number":20,"box":{"x":676,"y":842,"width":79,"height":9}},{"id":"874dd5a6-3dd1-4a96-bf8e-e2462b11f4fb","block_type":"box","text":"Retirement","page_number":20,"box":{"x":683,"y":852,"width":64,"height":7}},{"id":"9b845f17-5184-4280-811f-bf26929454c9","block_type":"box","text":"Aggregate","page_number":20,"box":{"x":822,"y":812,"width":61,"height":9}},{"id":"e096ebf5-9f26-46dc-a1c5-c808f1a7035e","block_type":"box","text":"Compensation from","page_number":20,"box":{"x":796,"y":822,"width":113,"height":9}},{"id":"323d477e-9133-4102-ad67-3231480908c2","block_type":"box","text":"the Fund and","page_number":20,"box":{"x":815,"y":832,"width":75,"height":7}},{"id":"4a30aaf2-2d4f-4e1a-9f91-b4d49b6fedbc","block_type":"box","text":"Other BlackRock","page_number":20,"box":{"x":802,"y":842,"width":102,"height":7}},{"id":"ddc13284-c4be-4f5a-a361-1aaa811599e3","block_type":"box","text":"Advised Funds","page_number":20,"box":{"x":809,"y":852,"width":84,"height":7}},{"id":"a4a5723e-e9a0-453a-b0a7-8931f008d927","block_type":"box","text":"1","page_number":20,"box":{"x":893,"y":852,"width":4,"height":4}},{"id":"4a82fe87-0327-4259-8d6c-f8c95d1295f6","block_type":"box","text":"Independent Trustees","page_number":20,"box":{"x":70,"y":870,"width":154,"height":11}},{"id":"da7fddcc-aaa3-4ec3-bad2-979872ce646b","block_type":"box","text":"Christopher J. 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Urish . .","page_number":21,"box":{"x":79,"y":243,"width":131,"height":9}},{"id":"5191e21d-66a4-4450-aec5-1ec0522c5148","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,918 None","page_number":21,"box":{"x":217,"y":242,"width":516,"height":12}},{"id":"b3801554-d5c4-4baa-a20b-68ae9b1bb99d","block_type":"box","text":"$445,000","page_number":21,"box":{"x":817,"y":242,"width":72,"height":12}},{"id":"126c498a-6237-460c-bd17-684a3da9c7d5","block_type":"box","text":"Claire A. Walton","page_number":21,"box":{"x":79,"y":258,"width":111,"height":9}},{"id":"bef6b1a5-6d4b-4828-b1fd-cfa0b3870e3e","block_type":"box","text":"7","page_number":21,"box":{"x":192,"y":259,"width":3,"height":4}},{"id":"12d8e3c1-15f1-4d15-b4f2-21d71d3ed6f3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,206 None","page_number":21,"box":{"x":200,"y":258,"width":533,"height":11}},{"id":"c717960c-220a-4ce3-9a90-0c461385e01b","block_type":"box","text":"$490,000","page_number":21,"box":{"x":817,"y":258,"width":72,"height":11}},{"id":"84ec440a-f143-4d99-9879-5fe4d0537801","block_type":"box","text":"Interested Trustees","page_number":21,"box":{"x":70,"y":274,"width":138,"height":8}},{"id":"ebb772ab-6313-4942-a214-e9ec8e753d6f","block_type":"box","text":"Rober t Fairbairn . .","page_number":21,"box":{"x":79,"y":289,"width":131,"height":8}},{"id":"f46a897c-1239-4286-a7fe-c9e03106aeea","block_type":"box","text":"......................................","page_number":21,"box":{"x":217,"y":296,"width":303,"height":1}},{"id":"155fd457-efcb-42e2-9077-0077a45ff981","block_type":"box","text":"None None None","page_number":21,"box":{"x":575,"y":289,"width":296,"height":8}},{"id":"c8437159-0c3a-448b-924f-c9009d4d09f8","block_type":"box","text":"John M. Perlowski","page_number":21,"box":{"x":78,"y":304,"width":127,"height":9}},{"id":"6ae77044-44f1-4302-a44b-a68a120e7318","block_type":"box","text":".......................................","page_number":21,"box":{"x":208,"y":311,"width":312,"height":1}},{"id":"bc6de9ae-00e5-40b0-a323-daa89d5356a9","block_type":"box","text":"None None None","page_number":21,"box":{"x":575,"y":304,"width":296,"height":9}},{"id":"af4f532e-66f1-4f34-878a-b4ed1c1f38bd","block_type":"box","text":"1","page_number":21,"box":{"x":69,"y":328,"width":3,"height":4}},{"id":"06c51a8a-6cba-4801-9fd5-e163c67fa73a","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Trustee receives compensation, see “Biographical Information” beginning on","page_number":21,"box":{"x":94,"y":328,"width":786,"height":9}},{"id":"5c948f6c-1ae5-4aed-ba91-c766408f2877","block_type":"box","text":"page I-13.","page_number":21,"box":{"x":94,"y":338,"width":55,"height":9}},{"id":"1ab9413a-83db-4976-9519-a49b24e8c276","block_type":"box","text":"2","page_number":21,"box":{"x":69,"y":351,"width":3,"height":3}},{"id":"52cde962-83dd-441d-b2e2-4a8404efe41a","block_type":"box","text":"Compensation includes $644 earned as a consultant to the Independent Trustees for the period April 1, 2026 to July 1, 2026.","page_number":21,"box":{"x":93,"y":350,"width":724,"height":10}},{"id":"64137769-fadd-4cc4-a44e-e9e0c8167245","block_type":"box","text":"3","page_number":21,"box":{"x":69,"y":363,"width":3,"height":4}},{"id":"58aa6ef5-017b-4520-ba99-f8b932ca2c0c","block_type":"box","text":"Chair of the Audit Committee.","page_number":21,"box":{"x":93,"y":363,"width":168,"height":7}},{"id":"2ed49956-da80-40e5-80e2-b9f0b4b067a7","block_type":"box","text":"4","page_number":21,"box":{"x":68,"y":376,"width":4,"height":3}},{"id":"aa848d2b-50da-4455-94d6-04fe960c5376","block_type":"box","text":"Chair of the Governance Committee.","page_number":21,"box":{"x":93,"y":376,"width":206,"height":7}},{"id":"4ed1be66-dd04-4491-98f6-81cb4064ca9b","block_type":"box","text":"5","page_number":21,"box":{"x":69,"y":389,"width":3,"height":3}},{"id":"56a60989-e64d-41de-bd6e-f26f2138ca94","block_type":"box","text":"Chair of the Per formance Oversight Committee.","page_number":21,"box":{"x":93,"y":388,"width":269,"height":9}},{"id":"4e7e696f-9ef9-4dc3-844c-7b85715a6bb3","block_type":"box","text":"6","page_number":21,"box":{"x":69,"y":401,"width":3,"height":4}},{"id":"a5f14956-f4de-480a-9fb3-5053dafd208c","block_type":"box","text":"Chair of the Board and Chair of the Ad Hoc Topics Committee.","page_number":21,"box":{"x":93,"y":401,"width":352,"height":9}},{"id":"129ade98-0359-4dda-81cd-ef1890119aa5","block_type":"box","text":"7","page_number":21,"box":{"x":69,"y":414,"width":3,"height":3}},{"id":"ed64b2bd-dc11-406d-8d73-0df50e8fcefa","block_type":"box","text":"Chair of the Compliance Committee.","page_number":21,"box":{"x":93,"y":414,"width":205,"height":8}},{"id":"b806bdce-af6f-463e-ba53-b68e1e742b91","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":21,"box":{"x":69,"y":442,"width":432,"height":11}},{"id":"a7c5276a-8938-4e6f-9fbb-ec85ea512f49","block_type":"box","text":"Management Agreement","page_number":21,"box":{"x":69,"y":473,"width":180,"height":10}},{"id":"4724d9d2-02f7-4ff3-aec6-7e7b55df3325","block_type":"box","text":"The Trust, on behalf of the Fund, has entered into a management agreement with BlackRock pursuant to which","page_number":21,"box":{"x":101,"y":495,"width":791,"height":11}},{"id":"6b9c51d3-b49f-492c-b9c1-da43fb040e26","block_type":"box","text":"BlackRock is entitled to receive fees for the services it provides (the “Management Agreement”).","page_number":21,"box":{"x":70,"y":510,"width":689,"height":11}},{"id":"c9867c64-a889-461a-be30-b528c53325b0","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any por tion of the Fund’s","page_number":21,"box":{"x":102,"y":533,"width":762,"height":11}},{"id":"5364ffbb-1245-4c94-9ddf-b523417d9f13","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange","page_number":21,"box":{"x":69,"y":548,"width":799,"height":11}},{"id":"9723d3f3-4668-41bf-a11c-5a8310d1efde","block_type":"box","text":"traded funds managed by BlackRock or its affiliates that have a contractual management fee, through","page_number":21,"box":{"x":68,"y":563,"width":726,"height":11}},{"id":"4dbb2d6b-2ac0-415e-aae6-fd38abf0086a","block_type":"box","text":"June 30, 2028. In addition, BlackRock has contractually agreed to waive its management fees by the amount of","page_number":21,"box":{"x":69,"y":578,"width":799,"height":11}},{"id":"a6369d2e-ad82-4d66-82c4-2a728de8c130","block_type":"box","text":"investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds","page_number":21,"box":{"x":70,"y":593,"width":780,"height":12}},{"id":"f7b94636-90e3-4e2a-a178-89257653e5f4","block_type":"box","text":"managed by BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon","page_number":21,"box":{"x":69,"y":608,"width":835,"height":12}},{"id":"26c59258-3baa-4f7b-8c3e-ca758561290e","block_type":"box","text":"90 days’ notice by a majority of the Independent Trustees or by a vote of a majority of the outstanding voting","page_number":21,"box":{"x":69,"y":623,"width":774,"height":12}},{"id":"5ce09894-4e33-4d5e-a6a9-b0d937f52d28","block_type":"box","text":"securities of the Fund.","page_number":21,"box":{"x":69,"y":639,"width":158,"height":9}},{"id":"8338653f-f027-4b7d-84e4-13a8668cbe73","block_type":"box","text":"BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual","page_number":21,"box":{"x":102,"y":661,"width":778,"height":12}},{"id":"b31d5226-736a-42d5-8f98-f6f0d872795a","block_type":"box","text":"Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest","page_number":21,"box":{"x":70,"y":676,"width":824,"height":12}},{"id":"4756e537-024e-45d7-9d60-b1f816e50f40","block_type":"box","text":"Expense, Acquired Fund Fees and Expenses and cer tain other Fund expenses) to 0.75% (for Investor A Shares),","page_number":21,"box":{"x":70,"y":692,"width":795,"height":11}},{"id":"e1bf0bf2-fca3-4052-b54f-5210c4fe2927","block_type":"box","text":"1.50% (for Investor C Shares), 0.50% (for Institutional Shares) and 0.45% (for Class K Shares) of average daily net","page_number":21,"box":{"x":70,"y":707,"width":817,"height":11}},{"id":"45aa66a6-747d-4804-95fa-83a841e7bfb4","block_type":"box","text":"assets through June 30, 2028. The contractual agreement may be terminated upon 90 days’ notice by a majority of","page_number":21,"box":{"x":69,"y":722,"width":827,"height":11}},{"id":"74749a36-47ed-40dc-b83c-c0d04b115169","block_type":"box","text":"the Independent Trustees or by a vote of a majority of the outstanding voting securities of the Fund.","page_number":21,"box":{"x":68,"y":737,"width":710,"height":11}},{"id":"727b06fd-511a-4571-a6a0-ac567d597e5e","block_type":"box","text":"Pursuant to the Management Agreement, BlackRock may from time to time, in its sole discretion to the extent","page_number":21,"box":{"x":102,"y":760,"width":784,"height":11}},{"id":"2dfa856d-43ac-4a7b-8c33-66c01f1d686a","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of BlackRock, to","page_number":21,"box":{"x":70,"y":775,"width":838,"height":11}},{"id":"b009a181-2cd0-4545-a8ba-88ec7b0e3dfa","block_type":"box","text":"per form investment advisory services with respect to the Fund. In addition, the Manager may delegate cer tain of its","page_number":21,"box":{"x":70,"y":790,"width":826,"height":11}},{"id":"48e60b74-58aa-4c19-8b1e-3f5c2f815f82","block_type":"box","text":"investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":21,"box":{"x":70,"y":805,"width":779,"height":11}},{"id":"6cc9a812-807e-4de5-a94d-b526da207a81","block_type":"box","text":"permitted by applicable law. BlackRock may terminate any or all sub-advisers or such delegation arrangements in its","page_number":21,"box":{"x":70,"y":820,"width":827,"height":11}},{"id":"f53b154f-a91e-4c82-bd84-3d1fd6f330a8","block_type":"box","text":"sole discretion at any time to the extent permitted by applicable law.","page_number":21,"box":{"x":69,"y":835,"width":486,"height":11}},{"id":"b675d58b-29d0-4144-b8fa-4ad29b74041e","block_type":"box","text":"The table below sets for th information about the total management fees paid by the Trust, on behalf of the Fund,","page_number":21,"box":{"x":101,"y":858,"width":806,"height":11}},{"id":"81966088-6c2a-405a-ad9a-bc313dfd48dc","block_type":"box","text":"to BlackRock and the fees waived and/or reimbursed, for the periods shown.","page_number":21,"box":{"x":68,"y":873,"width":548,"height":11}},{"id":"ecf82d73-e3e2-4410-a719-41a6eba85ad2","block_type":"box","text":"I-19","page_number":21,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"61baf914-6bbe-404a-9fc8-d782388c7325","block_type":"box","text":"NM0926U-5977728-21/232","page_number":21,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b206973a-26c3-4b8b-ba4b-bf815856ba77","block_type":"box","text":"Fees Paid to","page_number":22,"box":{"x":578,"y":49,"width":72,"height":7}},{"id":"054e063c-17af-4f42-9f1d-5a3ed50fc77e","block_type":"box","text":"BlackRock","page_number":22,"box":{"x":583,"y":59,"width":62,"height":7}},{"id":"6e02ea7d-274b-47eb-b267-3b52ae671959","block_type":"box","text":"Fees Waived","page_number":22,"box":{"x":700,"y":49,"width":72,"height":7}},{"id":"b9069bd8-e8fb-4974-857d-0ec5736e5b52","block_type":"box","text":"by BlackRock","page_number":22,"box":{"x":696,"y":59,"width":80,"height":9}},{"id":"040baf25-09bf-4ab1-8d49-7b494a762775","block_type":"box","text":"Fees Reimbursed","page_number":22,"box":{"x":810,"y":49,"width":99,"height":7}},{"id":"eb11c0e4-00fe-48de-a73d-4c0e31bc065b","block_type":"box","text":"by BlackRock","page_number":22,"box":{"x":820,"y":59,"width":80,"height":9}},{"id":"970b988c-ba95-4a77-acf2-5a464cf31c71","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18,644,759 $1,442,463 $1,636,980","page_number":22,"box":{"x":70,"y":76,"width":833,"height":12}},{"id":"4b0b3d69-3ba0-4944-a928-44cd40511da1","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $16,647,373 $1,224,648 $1,078,890","page_number":22,"box":{"x":70,"y":91,"width":833,"height":12}},{"id":"2d6e5487-9cf8-4014-8c83-6ce59b3faebd","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,999,433 $1,331,037 $ 745,899","page_number":22,"box":{"x":70,"y":106,"width":833,"height":12}},{"id":"d83468fb-aea1-461c-8e75-9a3ed8e10917","block_type":"box","text":"Administration Agreement","page_number":22,"box":{"x":68,"y":139,"width":191,"height":11}},{"id":"49744541-385d-4052-971a-25abe787132b","block_type":"box","text":"BlackRock serves as the Fund’s administrator (in such capacity, the “Administrator”) pursuant to an","page_number":22,"box":{"x":102,"y":161,"width":711,"height":11}},{"id":"bca9b517-3d54-400d-ba9a-676b58c8c638","block_type":"box","text":"administration agreement (the “Administration Agreement”). The Administrator has agreed to maintain office facilities","page_number":22,"box":{"x":69,"y":176,"width":838,"height":12}},{"id":"8d61a321-85d3-431d-a0e3-3269b61df8a7","block_type":"box","text":"for the Fund; furnish the Fund with clerical, bookkeeping and administrative services; oversee the determination and","page_number":22,"box":{"x":68,"y":191,"width":830,"height":12}},{"id":"169b3859-1158-4c2e-8046-e9105babbd72","block_type":"box","text":"publication of the Fund’s net asset value; oversee the preparation and filing of Federal, state and local income tax","page_number":22,"box":{"x":70,"y":206,"width":813,"height":12}},{"id":"c8159011-7be9-4b3a-9c8b-d62d465b3e8e","block_type":"box","text":"returns; prepare cer tain repor ts required by regulatory authorities; calculate various contractual expenses; determine","page_number":22,"box":{"x":69,"y":222,"width":837,"height":11}},{"id":"c6b056bf-4c18-4ed8-b34a-9730e922c55f","block_type":"box","text":"the amount of dividends and distributions available for payment by the Fund to its shareholders; prepare and arrange","page_number":22,"box":{"x":68,"y":237,"width":836,"height":11}},{"id":"727e15fe-f90a-4367-b8d8-e32c801f7085","block_type":"box","text":"for the printing of dividend notices to shareholders; provide Fund service providers with such information as is","page_number":22,"box":{"x":68,"y":252,"width":785,"height":11}},{"id":"8d876c48-3e97-4e8c-9e10-dfd624a3260b","block_type":"box","text":"required to effect the payment of dividends and distributions; and serve as liaison with the Trust’s officers,","page_number":22,"box":{"x":69,"y":267,"width":765,"height":11}},{"id":"89da3620-5c4d-4ada-9444-e44fef2037e5","block_type":"box","text":"independent accountants, legal counsel, custodian, accounting agent and transfer and dividend disbursing agent in","page_number":22,"box":{"x":70,"y":282,"width":819,"height":11}},{"id":"bccc1521-23d8-4ccc-b612-438d3a20c835","block_type":"box","text":"establishing the accounting policies of the Fund and monitoring financial and shareholder accounting services. The","page_number":22,"box":{"x":69,"y":297,"width":818,"height":12}},{"id":"9723d0ee-2112-4a29-a75f-7438cc85a8f2","block_type":"box","text":"Administrator may from time to time voluntarily waive administration fees with respect to the Fund and may voluntarily","page_number":22,"box":{"x":68,"y":312,"width":840,"height":12}},{"id":"d90c100a-9882-4898-a137-ad2faf94a96f","block_type":"box","text":"reimburse the Fund for expenses.","page_number":22,"box":{"x":69,"y":327,"width":238,"height":11}},{"id":"6f9de40d-b873-4dac-b160-b146fd4fddef","block_type":"box","text":"Under the Administration Agreement, the Trust, on behalf of the Fund, pays to the Administrator a fee, computed","page_number":22,"box":{"x":102,"y":350,"width":802,"height":11}},{"id":"0b739ce7-b241-41e5-bf60-861fd3e2fffb","block_type":"box","text":"daily and payable monthly, at an aggregate annual rate of (i) 0.0425% of the first $500 million of the Fund’s average","page_number":22,"box":{"x":69,"y":365,"width":830,"height":12}},{"id":"b15aed02-011d-40a0-b572-7aa3dd58d205","block_type":"box","text":"daily net assets, 0.040% of the next $500 million of the Fund’s average daily net assets, 0.0375% of the next","page_number":22,"box":{"x":69,"y":380,"width":788,"height":12}},{"id":"ca72de51-44e0-4e8c-8300-f08075c6511d","block_type":"box","text":"$1 billion of the Fund’s average daily net assets, 0.035% of the next $2 billion of the Fund’s average daily net","page_number":22,"box":{"x":69,"y":395,"width":785,"height":12}},{"id":"959c87c4-00d1-4ca0-bb3a-f0ed68a08977","block_type":"box","text":"assets, 0.0325% of the next $9 billion of the Fund’s average daily net assets and 0.030% of the average daily net","page_number":22,"box":{"x":69,"y":410,"width":816,"height":12}},{"id":"05e4dc91-ae94-4488-98cf-234c1b3d5836","block_type":"box","text":"assets of the Fund in excess of $13 billion and (ii) 0.020% of average daily net assets allocated to each class of","page_number":22,"box":{"x":69,"y":425,"width":805,"height":12}},{"id":"2412a347-cdd7-447a-b49b-7bc9c03b57fc","block_type":"box","text":"shares of the Fund.","page_number":22,"box":{"x":69,"y":441,"width":137,"height":9}},{"id":"39181a3e-5df4-4b0d-aa53-0f3483867c1f","block_type":"box","text":"The table below sets for th information about the combined administration fees paid by the Trust, on behalf of","page_number":22,"box":{"x":101,"y":463,"width":782,"height":12}},{"id":"86c331f9-71a8-4d17-8d1b-d4216a10afbe","block_type":"box","text":"the Fund, to the Administrator and the amounts waived, for the periods shown.","page_number":22,"box":{"x":68,"y":479,"width":561,"height":11}},{"id":"cf184fa5-594a-425c-8e97-6324f81ff13f","block_type":"box","text":"Fees Paid to","page_number":22,"box":{"x":691,"y":507,"width":72,"height":7}},{"id":"89f34d08-55fe-4642-a910-9d7e609b67d4","block_type":"box","text":"the 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The Trust, on behalf of the Fund,","page_number":22,"box":{"x":69,"y":672,"width":824,"height":11}},{"id":"3d8579f9-6f26-41e5-bfed-fa09c6cc01cc","block_type":"box","text":"reimburses BlackRock for its costs in maintaining the service center, which costs include, among other things,","page_number":22,"box":{"x":69,"y":687,"width":787,"height":11}},{"id":"4a48b6f6-f697-4ebc-99f5-a0ff2718d5ae","block_type":"box","text":"employee salaries, leasehold expenses, and other out-of-pocket expenses.","page_number":22,"box":{"x":69,"y":702,"width":531,"height":11}},{"id":"44c70784-3992-4d05-8dbf-cb98c8a977ca","block_type":"box","text":"For the periods shown below, the Trust, on behalf of the Fund, reimbursed BlackRock for shareholder liaison","page_number":22,"box":{"x":102,"y":725,"width":769,"height":11}},{"id":"e344ba30-b55c-49f2-b61c-aa15b9fb969f","block_type":"box","text":"services pursuant to such agreement in the amounts set for th below.","page_number":22,"box":{"x":69,"y":740,"width":494,"height":11}},{"id":"51c0c53d-5d11-4989-8434-ad85c545b277","block_type":"box","text":"Fees Paid to BlackRock Fees Waived by BlackRock","page_number":22,"box":{"x":583,"y":768,"width":327,"height":9}},{"id":"75f8e871-7d36-4af0-9deb-2aab3c29439d","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . .","page_number":22,"box":{"x":70,"y":786,"width":253,"height":11}},{"id":"3ce48aab-036d-44a7-a2b3-c8f824358b46","block_type":"box","text":"............................","page_number":22,"box":{"x":329,"y":794,"width":222,"height":1}},{"id":"b27f3617-97b2-435b-acaf-5ff1c71aeb31","block_type":"box","text":"$39,123 $39,123","page_number":22,"box":{"x":621,"y":785,"width":241,"height":12}},{"id":"36b48216-7b5e-40c5-8d10-046229eb4150","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . .","page_number":22,"box":{"x":70,"y":801,"width":253,"height":11}},{"id":"27206dc1-d338-47cc-ae71-044b160f5361","block_type":"box","text":"............................","page_number":22,"box":{"x":329,"y":809,"width":222,"height":1}},{"id":"7e08eb89-8d89-454d-9004-75a4b7026744","block_type":"box","text":"$22,996 $22,996","page_number":22,"box":{"x":621,"y":801,"width":241,"height":11}},{"id":"d2b5ace4-f5a7-4459-865b-e1947cca2ae3","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . .","page_number":22,"box":{"x":70,"y":816,"width":253,"height":11}},{"id":"429f7ce9-5639-45a8-b9ef-90be8027728a","block_type":"box","text":"............................","page_number":22,"box":{"x":329,"y":824,"width":222,"height":1}},{"id":"a2fa8ad1-582a-412a-a58b-5b581b2aaa96","block_type":"box","text":"$39,167 $39,167","page_number":22,"box":{"x":621,"y":816,"width":240,"height":11}},{"id":"87bf8f93-83d7-4465-8b8a-b48d2c308074","block_type":"box","text":"Accounting Services","page_number":22,"box":{"x":68,"y":848,"width":150,"height":11}},{"id":"73209a2d-c31b-4ed9-bd54-3742b12dd573","block_type":"box","text":"The Bank of New York Mellon (“BNY Mellon”), which has its principal place of business at 240 Greenwich Street,","page_number":22,"box":{"x":101,"y":870,"width":803,"height":11}},{"id":"dcead814-c4e8-442d-91a3-3321997daf32","block_type":"box","text":"New York, New York 10286, serves as the accounting services provider for the Fund. BNY Mellon (the “Custodian”)","page_number":22,"box":{"x":70,"y":886,"width":820,"height":11}},{"id":"ae050207-2eb8-4f0b-a398-3a09050d0f29","block_type":"box","text":"records investment, capital share and income and expense activities; verifies and transmits trade tickets; maintains","page_number":22,"box":{"x":69,"y":901,"width":828,"height":11}},{"id":"3f828425-1620-483f-9230-ce6a32367a88","block_type":"box","text":"I-20","page_number":22,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"80d62a04-c0e7-48c0-b46a-e1e89f95c106","block_type":"box","text":"NM0926U-5977728-22/232","page_number":22,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a8d03120-faf8-4567-a040-1c3f755de2cb","block_type":"box","text":"accounting ledgers for investment securities; maintains tax lots; reconciles cash with the Fund’s custodian; repor ts","page_number":23,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"18efb185-0608-4a52-bd54-69fb5b851534","block_type":"box","text":"cash balances to BlackRock; prepares cer tain financial statements; calculates expenses, gains, losses and income;","page_number":23,"box":{"x":69,"y":60,"width":830,"height":11}},{"id":"a54ee688-fa6c-41a2-b48c-b0c15dbacde6","block_type":"box","text":"controls disbursements; works with independent pricing sources; and computes and repor ts net asset value. In","page_number":23,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"5bf5a4bd-f7d5-4133-beec-ff5212e77f26","block_type":"box","text":"connection with its accounting services, BNY Mellon (the “Custodian”) also provides cer tain administration services.","page_number":23,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"3a077370-adec-433f-b42b-019cec79941d","block_type":"box","text":"The table below shows the amounts paid by the Fund to BNY Mellon for accounting services for the past three","page_number":23,"box":{"x":101,"y":113,"width":786,"height":11}},{"id":"8851a364-7a6a-4fe6-8643-6522678e90d0","block_type":"box","text":"fiscal years:","page_number":23,"box":{"x":68,"y":128,"width":85,"height":11}},{"id":"36e83407-1c6b-4da6-8a25-c4ff128d2b30","block_type":"box","text":"Fees Paid to BNY MIS","page_number":23,"box":{"x":781,"y":156,"width":128,"height":7}},{"id":"b94ff16e-3535-4972-8f97-b9487c68a1e7","block_type":"box","text":"Fiscal Year Ended May 31, 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Fund.","page_number":23,"box":{"x":69,"y":273,"width":395,"height":12}},{"id":"41b0c43d-c7c1-4cf5-ba5c-ab95ee41951a","block_type":"box","text":"Other Funds and Accounts Managed","page_number":23,"box":{"x":70,"y":304,"width":265,"height":11}},{"id":"cd655c40-087c-450b-9934-8cc06ef69494","block_type":"box","text":"The following table sets for th information about the funds and accounts other than the Fund for which the Fund’s","page_number":23,"box":{"x":101,"y":326,"width":806,"height":11}},{"id":"de91f4df-dd17-4dfe-99e6-b785cacdef11","block_type":"box","text":"por tfolio managers are primarily responsible for the day-to-day por tfolio management as of May 31, 2026.","page_number":23,"box":{"x":70,"y":341,"width":755,"height":12}},{"id":"0cf6de2a-f182-440e-8f08-d172d8aaaa0e","block_type":"box","text":"Number of Other Accounts Managed","page_number":23,"box":{"x":365,"y":370,"width":211,"height":8}},{"id":"bd783fd3-c1f9-48e2-bc50-bc2ddd3454e0","block_type":"box","text":"and Assets by 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Pooled","page_number":23,"box":{"x":720,"y":402,"width":75,"height":8}},{"id":"f0400d7b-f0f1-4220-9ee4-a44cbe8ab09f","block_type":"box","text":"Investment","page_number":23,"box":{"x":726,"y":413,"width":64,"height":7}},{"id":"c5621efc-6fee-4909-87bc-905859018990","block_type":"box","text":"Vehicles","page_number":23,"box":{"x":734,"y":423,"width":48,"height":7}},{"id":"e533664d-7890-479b-b617-6092e08e2aab","block_type":"box","text":"Other","page_number":23,"box":{"x":843,"y":412,"width":32,"height":8}},{"id":"9a1feb9e-2154-4a53-ab62-2d971b91c0de","block_type":"box","text":"Accounts","page_number":23,"box":{"x":832,"y":423,"width":54,"height":7}},{"id":"6edc4173-2554-47d1-a684-68fb2db5a12c","block_type":"box","text":"Travis Cooke, CFA 30 129 20 0 4 6","page_number":23,"box":{"x":73,"y":436,"width":789,"height":9}},{"id":"aa3c6eac-b6a6-46bd-a00e-0493347a8649","block_type":"box","text":"$26.98 Billion $32.31 Billion $20.01 Billion $0 $8.44 Billion $6.67 Billion","page_number":23,"box":{"x":329,"y":448,"width":566,"height":9}},{"id":"d755967b-7335-4a8b-81cc-cbd7626b7fc9","block_type":"box","text":"Richard Mathieson 35 420 46 0 5 9","page_number":23,"box":{"x":74,"y":462,"width":788,"height":7}},{"id":"287c452c-32b4-4d92-893e-9c56209bf12a","block_type":"box","text":"$39.69 Billion $50.87 Billion $81.28 Billion $0 $3.46 Billion $15.63 Billion","page_number":23,"box":{"x":329,"y":474,"width":570,"height":8}},{"id":"b171d86d-1fb5-4d4b-a4d3-923b93d4708b","block_type":"box","text":"Raffaele Savi 38 67 19 0 12 3","page_number":23,"box":{"x":74,"y":487,"width":788,"height":7}},{"id":"d46bcc2c-03a0-4d8c-8208-50db18c4e8f0","block_type":"box","text":"$50.80 Billion $58.02 Billion $42.55 Billion $0 $22.75 Billion $4.93 Billion","page_number":23,"box":{"x":329,"y":499,"width":566,"height":8}},{"id":"c556842d-7aa9-4add-ad6a-48f429ecbf19","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":23,"box":{"x":69,"y":533,"width":304,"height":12}},{"id":"4ed269d1-fc7e-4df5-96d7-974fa01f6f4f","block_type":"box","text":"The discussion below describes the por tfolio managers’ compensation as of May 31, 2026.","page_number":23,"box":{"x":101,"y":556,"width":656,"height":11}},{"id":"f944a704-eefd-4858-82c3-3cd44550d66c","block_type":"box","text":"BlackRock’s financial arrangements with its por tfolio managers, its competitive compensation and its career","page_number":23,"box":{"x":102,"y":579,"width":774,"height":11}},{"id":"47284143-b233-47eb-a5ca-0edecfe314b8","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":23,"box":{"x":70,"y":594,"width":837,"height":11}},{"id":"5009181c-f67e-44c0-a103-4b1a9efea2ad","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":23,"box":{"x":69,"y":609,"width":823,"height":11}},{"id":"19efbc5a-075a-42be-9817-5cfbca243b91","block_type":"box","text":"compensation include a base salary, a per formance-based discretionary bonus, par ticipation in various benefits","page_number":23,"box":{"x":69,"y":624,"width":799,"height":11}},{"id":"df6528b3-8579-4681-8236-36c58113aca1","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":23,"box":{"x":70,"y":639,"width":670,"height":12}},{"id":"e6b22f59-7f8e-4f52-bd33-c9e963b33569","block_type":"box","text":"Base Compensation.","page_number":23,"box":{"x":102,"y":662,"width":148,"height":11}},{"id":"bf5496d0-98ff-4179-8cec-84b79ab6ae9a","block_type":"box","text":"Generally, por tfolio managers receive base compensation based on their position with the","page_number":23,"box":{"x":257,"y":662,"width":640,"height":11}},{"id":"504e88e1-6089-41d4-b20c-f4c7222c05c6","block_type":"box","text":"firm.","page_number":23,"box":{"x":68,"y":677,"width":32,"height":9}},{"id":"1f6d0b02-aca1-479f-aec8-2ac629be10fc","block_type":"box","text":"Discretionary Incentive Compensation","page_number":23,"box":{"x":102,"y":707,"width":277,"height":11}},{"id":"c7e7428c-9139-4e79-bd5f-9c101fac7130","block_type":"box","text":"Discretionary incentive compensation is a function of several components: the per formance of BlackRock, Inc.,","page_number":23,"box":{"x":102,"y":730,"width":792,"height":11}},{"id":"c0eaa595-aeb0-447e-a7bb-1dcb8919c8b6","block_type":"box","text":"the per formance of the por tfolio manager’s group within BlackRock, the investment per formance, including risk","page_number":23,"box":{"x":68,"y":745,"width":800,"height":11}},{"id":"dfef9ff1-150b-4cb6-aeef-954a462945b8","block_type":"box","text":"adjusted returns, of the firm’s assets under management or supervision by that por tfolio manager relative to","page_number":23,"box":{"x":69,"y":760,"width":777,"height":12}},{"id":"9265d900-aef4-4717-99a4-3aed90ac871a","block_type":"box","text":"predetermined benchmarks, and the individual’s per formance and contribution to the overall per formance of these","page_number":23,"box":{"x":70,"y":775,"width":817,"height":11}},{"id":"a9b7aa9f-9840-4952-a076-bb6875071e04","block_type":"box","text":"por tfolios and BlackRock. Among other things, BlackRock’s Chief Investment Officers make a subjective","page_number":23,"box":{"x":70,"y":790,"width":741,"height":12}},{"id":"a7fa287e-9265-4cc0-86ee-fe424757b270","block_type":"box","text":"determination with respect to each por tfolio manager’s compensation based on the per formance of the Fund and","page_number":23,"box":{"x":69,"y":806,"width":809,"height":11}},{"id":"102f999a-cbeb-4156-bf7b-05e2f9a1fbb8","block_type":"box","text":"other accounts managed by each por tfolio manager relative to the various benchmarks. Per formance is generally","page_number":23,"box":{"x":69,"y":821,"width":806,"height":11}},{"id":"98ca3ce9-55fa-4f6b-acbe-2fbbbaf010cf","block_type":"box","text":"assessed over trailing 1-, 3-, and 5-year periods relative to applicable benchmarks. The per formance of Messrs. Savi,","page_number":23,"box":{"x":69,"y":836,"width":836,"height":11}},{"id":"5ce881f5-825a-45f8-9bf9-a53d719c6023","block_type":"box","text":"Cooke and Mathieson is not measured against a specific benchmark.","page_number":23,"box":{"x":69,"y":851,"width":493,"height":11}},{"id":"7b120c09-4b76-470d-abe1-bbd8d387923e","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":23,"box":{"x":102,"y":874,"width":389,"height":11}},{"id":"4e9bc68c-863a-4859-b4b6-076e6ff8dd34","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":23,"box":{"x":499,"y":874,"width":383,"height":11}},{"id":"533f3dec-d75d-42aa-82e4-6a25fbe80995","block_type":"box","text":"por tfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":23,"box":{"x":70,"y":889,"width":815,"height":11}},{"id":"c09a1b27-ef5c-4f7b-bcb1-487d765baad6","block_type":"box","text":"that notionally track the return of cer tain BlackRock investment products.","page_number":23,"box":{"x":68,"y":904,"width":522,"height":11}},{"id":"7417a240-1e6e-4b9f-b613-acc16b128de2","block_type":"box","text":"I-21","page_number":23,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"ca0c8511-4a95-4609-9167-ef244cbe18e4","block_type":"box","text":"NM0926U-5977728-23/232","page_number":23,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"be779619-83dd-4d3a-a721-3d1b20b35b2e","block_type":"box","text":"Por tfolio managers receive their annual discretionary incentive compensation in the form of cash. Por tfolio","page_number":24,"box":{"x":102,"y":45,"width":760,"height":11}},{"id":"6c5c3541-caca-45db-aa19-613900415b65","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":24,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"cad9d459-c966-4244-8a03-f3e8dd51443e","block_type":"box","text":"awards annually as par t of their discretionary incentive compensation. Paying a por tion of discretionary incentive","page_number":24,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"623e10dc-ef8b-49cd-9d5b-5d803fc04664","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a por tfolio manager for a","page_number":24,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"b062f9e5-bb95-4a82-a1f9-2f4eb4d85ccf","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its per formance over future periods. In some","page_number":24,"box":{"x":68,"y":105,"width":839,"height":11}},{"id":"96e62b92-98ec-4a5d-b74e-e04897ca7d30","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to cer tain key employees as par t of a long-term","page_number":24,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"f818b05e-e3f4-488c-9060-01dce17ed519","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate per formance. Deferred","page_number":24,"box":{"x":70,"y":135,"width":820,"height":12}},{"id":"3fc6bee2-8c53-401a-aad1-baa4787bb3ec","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":24,"box":{"x":70,"y":150,"width":801,"height":12}},{"id":"7da23517-783a-4ea6-a3e0-ed115b433dd4","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The por tfolio","page_number":24,"box":{"x":70,"y":166,"width":831,"height":11}},{"id":"b89ef3fc-94f2-4fa0-a33e-ac412c41495b","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":24,"box":{"x":69,"y":181,"width":479,"height":11}},{"id":"45147736-1721-4ac6-8c59-54153bafb0d5","block_type":"box","text":"For cer tain por tfolio managers, a por tion of the discretionary incentive compensation is also distributed in the","page_number":24,"box":{"x":102,"y":203,"width":785,"height":12}},{"id":"48893ce4-0b01-499a-8252-b46d69d14309","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":24,"box":{"x":68,"y":218,"width":836,"height":12}},{"id":"d76defd8-084e-437b-93b2-867e3cd3773b","block_type":"box","text":"which provides direct alignment of por tfolio manager discretionary incentive compensation with investment product","page_number":24,"box":{"x":68,"y":234,"width":821,"height":11}},{"id":"13b03c80-61a9-44e9-a362-f852eb78f733","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":24,"box":{"x":69,"y":249,"width":829,"height":11}},{"id":"33b9f7c7-3c42-42e9-b49b-a69ad46534c1","block_type":"box","text":"por tfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":24,"box":{"x":70,"y":264,"width":835,"height":11}},{"id":"50818547-e930-49b2-9ce4-b45717847a71","block_type":"box","text":"eligible to par ticipate in the deferred cash award program.","page_number":24,"box":{"x":69,"y":279,"width":414,"height":11}},{"id":"8f3f0efa-1db0-45cd-a1ae-9a72c245c93e","block_type":"box","text":"Other Compensation Benefits.","page_number":24,"box":{"x":101,"y":302,"width":218,"height":11}},{"id":"5a652702-863e-43ee-b11a-3b97bfaa93d1","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, por tfolio","page_number":24,"box":{"x":327,"y":302,"width":552,"height":11}},{"id":"0c70e6e6-f7e1-4e03-bdbf-8ffd47dee5f7","block_type":"box","text":"managers may be eligible to receive or par ticipate in one or more of the following:","page_number":24,"box":{"x":69,"y":317,"width":582,"height":11}},{"id":"465dacf4-9ecd-4223-8ada-289292b6f690","block_type":"box","text":"Incentive Savings Plans","page_number":24,"box":{"x":102,"y":340,"width":167,"height":11}},{"id":"b4401ca6-32a3-4405-88ab-f91658d38412","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":24,"box":{"x":274,"y":339,"width":614,"height":12}},{"id":"962d844d-3aca-4f15-9686-65bdde7e5812","block_type":"box","text":"employees are eligible to par ticipate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":24,"box":{"x":69,"y":355,"width":831,"height":11}},{"id":"92b6b468-2e0a-49d9-8f6e-d3411f64d9ce","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":24,"box":{"x":70,"y":370,"width":785,"height":11}},{"id":"3c47394c-8798-4aeb-a317-0371dfd38488","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":24,"box":{"x":69,"y":384,"width":830,"height":12}},{"id":"1fa0c732-01b7-4ddf-9a7d-bb5e9275ef02","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":24,"box":{"x":69,"y":400,"width":799,"height":11}},{"id":"447e2e56-948f-4783-9676-121f49e105b3","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":24,"box":{"x":69,"y":414,"width":831,"height":12}},{"id":"f38b168f-4ac1-4cb1-9b5c-99b709c9b471","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":24,"box":{"x":69,"y":430,"width":798,"height":11}},{"id":"b1ae1f52-324d-4ab6-b72a-2944375c7bc6","block_type":"box","text":"par ticipants for their own contributions or, absent par ticipant investment direction, are invested into a target date","page_number":24,"box":{"x":70,"y":445,"width":809,"height":12}},{"id":"b5193c05-cfb3-45be-97b2-2de3e1510362","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the par ticipant attains age 65. The ESPP allows for","page_number":24,"box":{"x":68,"y":460,"width":793,"height":12}},{"id":"8af45345-7420-49dd-aeb4-7069e2901d8a","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":24,"box":{"x":70,"y":475,"width":832,"height":11}},{"id":"6ddfd504-d6c9-43e9-b22d-0bf78939c184","block_type":"box","text":"Annual par ticipation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":24,"box":{"x":68,"y":491,"width":805,"height":11}},{"id":"01d3d5eb-5c97-4956-a420-ffa39f0af3e4","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible por tfolio managers are eligible to","page_number":24,"box":{"x":69,"y":505,"width":808,"height":12}},{"id":"0cd08ebe-f020-455b-b830-97d7257b2b92","block_type":"box","text":"par ticipate in these plans.","page_number":24,"box":{"x":70,"y":521,"width":185,"height":11}},{"id":"b24ab165-a637-43b1-8491-5e8ee706fb20","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":24,"box":{"x":69,"y":551,"width":268,"height":11}},{"id":"b85b69f8-e8c2-4171-b974-ba510a822bbc","block_type":"box","text":"As of May 31, 2026, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":24,"box":{"x":101,"y":574,"width":731,"height":11}},{"id":"ea39e22e-28eb-4565-8714-34a00c818b57","block_type":"box","text":"beneficially owned by the por tfolio managers in the Fund is shown below:","page_number":24,"box":{"x":69,"y":589,"width":519,"height":11}},{"id":"b201b978-3cd6-4b10-9711-dc8a27d04fd4","block_type":"box","text":"Portfolio Manager","page_number":24,"box":{"x":69,"y":627,"width":105,"height":9}},{"id":"6c91ff76-9149-4859-8f66-70f77c466627","block_type":"box","text":"Dollar Range of Equity","page_number":24,"box":{"x":759,"y":617,"width":129,"height":9}},{"id":"ed857815-537d-4e9c-bde8-6609a6ab6521","block_type":"box","text":"Securities Beneficially Owned","page_number":24,"box":{"x":736,"y":627,"width":173,"height":9}},{"id":"808050c2-4ccc-4e63-b7f4-9c68caa05170","block_type":"box","text":"Raffaele Savi. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Over $1,","page_number":24,"box":{"x":70,"y":644,"width":750,"height":11}},{"id":"b2328ca2-d228-47e1-b3b7-7f0e430f91bd","block_type":"box","text":"000,000","page_number":24,"box":{"x":822,"y":645,"width":63,"height":10}},{"id":"c851c079-203c-489b-9733-f40286e531af","block_type":"box","text":"Travis Cooke, CFA","page_number":24,"box":{"x":68,"y":660,"width":127,"height":11}},{"id":"9f6deb35-ee23-4be8-a4d8-28b26d4314c8","block_type":"box","text":"...............................................................","page_number":24,"box":{"x":198,"y":668,"width":507,"height":1}},{"id":"7a2603ec-6ef0-49fe-a7c1-d52d7d93ed6e","block_type":"box","text":"$100,001 - $500,000","page_number":24,"box":{"x":744,"y":659,"width":158,"height":12}},{"id":"c715cd1d-4f9c-4326-9172-acc48db95c72","block_type":"box","text":"Richard Mathieson . . .","page_number":24,"box":{"x":70,"y":675,"width":154,"height":9}},{"id":"08094696-cad5-43b2-a6af-d1f84dbc3a29","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1 -","page_number":24,"box":{"x":231,"y":675,"width":572,"height":10}},{"id":"cd61dec1-6334-46cb-9d99-170ef0eff713","block_type":"box","text":"$10,000","page_number":24,"box":{"x":808,"y":675,"width":62,"height":11}},{"id":"5a9c84c1-924b-402a-a105-f847037701b4","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":24,"box":{"x":69,"y":707,"width":403,"height":11}},{"id":"05d1769b-a23e-4eca-b3eb-fc75c6201cf1","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":24,"box":{"x":102,"y":729,"width":727,"height":12}},{"id":"6052433d-ab50-42ae-82e7-7b6bd053c909","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":24,"box":{"x":70,"y":744,"width":814,"height":12}},{"id":"0bc8f507-a2c2-4424-958f-224d1d082b43","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment oppor tunities, execution of","page_number":24,"box":{"x":70,"y":760,"width":837,"height":11}},{"id":"73a3b632-cb7a-445a-8c32-df74f358f859","block_type":"box","text":"por tfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":24,"box":{"x":70,"y":775,"width":810,"height":11}},{"id":"80fb3d1f-d084-4f2d-b85f-c041385b6386","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Never theless, BlackRock furnishes investment","page_number":24,"box":{"x":69,"y":790,"width":782,"height":11}},{"id":"e986232b-84d2-4d80-afbe-dca3462492c5","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":24,"box":{"x":69,"y":805,"width":830,"height":11}},{"id":"093e10e7-85ad-47a8-8a21-16765a8e91ca","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":24,"box":{"x":69,"y":820,"width":828,"height":11}},{"id":"90cb3e7a-fc01-4c25-b7e4-64864671e7d4","block_type":"box","text":"funds or have per formance or higher fees paid to BlackRock, or in which por tfolio managers have a personal interest","page_number":24,"box":{"x":68,"y":835,"width":834,"height":11}},{"id":"1811a90a-7ba4-4a26-95c1-388594abb2d4","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":24,"box":{"x":70,"y":850,"width":777,"height":11}},{"id":"6d2fd4cc-7a16-48c7-adae-62cee96a6d3a","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":24,"box":{"x":70,"y":865,"width":821,"height":12}},{"id":"cb519020-d3dc-4e8d-bce1-ec2012403f69","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":24,"box":{"x":69,"y":881,"width":819,"height":11}},{"id":"78d48b2e-35d8-4002-a469-7a6e12284d54","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":24,"box":{"x":69,"y":896,"width":832,"height":11}},{"id":"4acc15b0-6fcb-4e81-b02c-883748461c0d","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":24,"box":{"x":68,"y":911,"width":804,"height":11}},{"id":"c3502334-11b6-49d9-b8b1-cd92e6ae46e3","block_type":"box","text":"I-22","page_number":24,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"639c596c-7ca8-430e-8be3-a0b7ea865fc6","block_type":"box","text":"NM0926U-5977728-24/232","page_number":24,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"17f329ef-5f00-42b7-935f-a1b5957e09a6","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":25,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"ba520a19-a5f3-4260-829e-c749d8058ace","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":25,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"e3da8a2b-2248-4c82-8811-c891d2387171","block_type":"box","text":"are directors or officers, or companies as to which BlackRock or any of its affiliates or significant shareholders or the","page_number":25,"box":{"x":69,"y":75,"width":836,"height":11}},{"id":"5f0986b9-eac9-4d40-ada8-3460d76b655b","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":25,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"5ddd1d41-84f2-4058-b935-112aba018500","block_type":"box","text":"public information. Cer tain por tfolio managers also may manage accounts whose investment strategies may at times","page_number":25,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"915ae608-e9e7-48a0-b5a2-2abbbeaa1945","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that Messrs. Savi, Cooke and Mathieson","page_number":25,"box":{"x":69,"y":120,"width":806,"height":12}},{"id":"6a1e719d-fe83-4647-b59d-68850fdf274a","block_type":"box","text":"may be managing hedge fund and/or long only accounts, or may be par t of a team managing hedge fund and/or long","page_number":25,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"3a3ecb5a-7941-48b7-b765-5e5e90d77f17","block_type":"box","text":"only accounts, subject to incentive fees. Messrs. Savi, Cooke and Mathieson may therefore be entitled to receive a","page_number":25,"box":{"x":69,"y":150,"width":822,"height":12}},{"id":"7112a88f-4ab4-4713-8a75-4b7a836a8175","block_type":"box","text":"por tion of any incentive fees earned on such accounts.","page_number":25,"box":{"x":70,"y":166,"width":390,"height":11}},{"id":"fcd32ba1-5a7d-44d8-95c2-371b773b4aed","block_type":"box","text":"As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock","page_number":25,"box":{"x":101,"y":188,"width":788,"height":11}},{"id":"63040209-4458-4ff8-a55f-7b55135cd270","block_type":"box","text":"purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its","page_number":25,"box":{"x":70,"y":203,"width":839,"height":11}},{"id":"1f7c0dfe-5766-4b17-a5d4-a75eca9bfd0a","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":25,"box":{"x":68,"y":218,"width":823,"height":12}},{"id":"9e6ba31a-954a-47c0-b7d9-07a42369d06e","block_type":"box","text":"with no account receiving preferential treatment. 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$2,855","page_number":25,"box":{"x":70,"y":894,"width":823,"height":12}},{"id":"815fa352-76bb-4da0-876f-f1bcd6c28588","block_type":"box","text":"I-23","page_number":25,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"f29338a2-10cf-464c-9b38-2b7a04b8b103","block_type":"box","text":"NM0926U-5977728-25/232","page_number":25,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5ea17da9-1588-4500-8d51-deaa68fbf272","block_type":"box","text":"Investor A 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. . . . . . . . . . . . . . . . . . . . . $1,106 $1,106","page_number":26,"box":{"x":529,"y":235,"width":372,"height":12}},{"id":"28c962c8-00c0-4c48-b2b1-56604b3dcc9e","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":26,"box":{"x":101,"y":260,"width":805,"height":11}},{"id":"c5716484-3d7c-442f-9103-e38deda173df","block_type":"box","text":"to BRIL under the Fund’s 12b-1 plan. A por tion of the fees collected by BRIL was paid to affiliates for providing","page_number":26,"box":{"x":68,"y":275,"width":790,"height":11}},{"id":"50c0ad09-28b5-4f14-8852-48472e1f4e41","block_type":"box","text":"shareholder servicing activities for Investor A Shares and for providing shareholder servicing and distribution related","page_number":26,"box":{"x":69,"y":290,"width":827,"height":12}},{"id":"b15619bd-9a85-43be-be86-b4ae318f5713","block_type":"box","text":"activities and services for Investor C Shares.","page_number":26,"box":{"x":69,"y":305,"width":318,"height":9}},{"id":"7fc8fc6e-6d64-40ac-bde5-4895910f819b","block_type":"box","text":"Class Name","page_number":26,"box":{"x":69,"y":334,"width":68,"height":7}},{"id":"36a8593a-6fc3-4bd6-86ad-44b42067d8d4","block_type":"box","text":"Fees Paid to BRIL","page_number":26,"box":{"x":806,"y":334,"width":103,"height":7}},{"id":"5e311509-319d-426a-b644-71e644971309","block_type":"box","text":"Investor A Shares .","page_number":26,"box":{"x":70,"y":352,"width":134,"height":8}},{"id":"ca4838c2-560f-4724-a7b3-f6090f88185a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":26,"box":{"x":210,"y":351,"width":626,"height":11}},{"id":"380349a2-b138-480e-bb08-6722d09da348","block_type":"box","text":"855,795","page_number":26,"box":{"x":838,"y":352,"width":62,"height":10}},{"id":"88a2bbb9-e368-4963-bace-77b892d9d8fa","block_type":"box","text":"Investor C Shares . . .","page_number":26,"box":{"x":70,"y":367,"width":150,"height":9}},{"id":"e2efe635-1bfe-460a-b635-819392752f7f","block_type":"box","text":".................................................................... $","page_number":26,"box":{"x":226,"y":366,"width":596,"height":10}},{"id":"3755ddde-ab6b-4111-a169-695400174e89","block_type":"box","text":"109,121","page_number":26,"box":{"x":839,"y":367,"width":62,"height":10}},{"id":"7a34336d-36ad-43cf-af08-e7020a1fd7a3","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":26,"box":{"x":68,"y":398,"width":318,"height":11}},{"id":"3723b00a-8569-4d10-a7de-c6018bc8dff1","block_type":"box","text":"An illustration of the computation of the offering price of the Investor A Shares of the Fund based on the value of","page_number":26,"box":{"x":101,"y":421,"width":805,"height":11}},{"id":"c92e9965-89cd-4fe9-a5f0-4d4c3f19f787","block_type":"box","text":"the Fund’s Investor A Shares’ net assets and the number of Investor A Shares outstanding on May 31, 2026 is set","page_number":26,"box":{"x":68,"y":436,"width":823,"height":11}},{"id":"ff000517-8d35-4dfc-a537-7f3fa28ae2c4","block_type":"box","text":"for th below.","page_number":26,"box":{"x":68,"y":451,"width":83,"height":9}},{"id":"b49b9452-67bc-4210-93bb-dea9bb27c9be","block_type":"box","text":"Investor A","page_number":26,"box":{"x":827,"y":479,"width":58,"height":7}},{"id":"91b66f59-eb4b-476a-8c0a-bd97956a596e","block_type":"box","text":"Shares","page_number":26,"box":{"x":836,"y":489,"width":39,"height":7}},{"id":"09890d38-ba62-4a7f-9aba-b7c13b84c7cf","block_type":"box","text":"Net Assets","page_number":26,"box":{"x":70,"y":507,"width":76,"height":9}},{"id":"be885bd5-8459-4b8e-b1ce-cb6fd32c9d0b","block_type":"box","text":".............................................................................","page_number":26,"box":{"x":150,"y":514,"width":621,"height":2}},{"id":"e13a53ab-844d-4b82-b475-89c9b89609ae","block_type":"box","text":"$760,374,482","page_number":26,"box":{"x":803,"y":506,"width":106,"height":11}},{"id":"96b12263-53c0-4466-a09c-41bf5137b438","block_type":"box","text":"Number of Shares Outstanding . . .","page_number":26,"box":{"x":70,"y":522,"width":245,"height":11}},{"id":"e7af88d3-a8d7-4747-84ac-da07de5ca7eb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,","page_number":26,"box":{"x":321,"y":522,"width":524,"height":11}},{"id":"943524aa-7465-4162-9a69-fd409b149a8b","block_type":"box","text":"095,264","page_number":26,"box":{"x":847,"y":522,"width":62,"height":11}},{"id":"35211463-5210-491d-93b6-02ab45cb6053","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":26,"box":{"x":70,"y":542,"width":571,"height":11}},{"id":"a4fe4852-a0ad-4666-bb10-3d5c6de41aa7","block_type":"box","text":"................","page_number":26,"box":{"x":647,"y":549,"width":124,"height":2}},{"id":"2fe1f3cd-9bf1-48e6-b31c-9c5385edd743","block_type":"box","text":"$23.69","page_number":26,"box":{"x":857,"y":541,"width":52,"height":10}},{"id":"509ec981-2326-448b-8342-1fb65cfcc05b","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":26,"box":{"x":69,"y":557,"width":534,"height":11}},{"id":"9a0c80ac-13c3-4d4a-9e73-338e4675dba2","block_type":"box","text":"1","page_number":26,"box":{"x":604,"y":557,"width":4,"height":5}},{"id":"c34e1f18-00c2-4fba-8ca8-0fed166ffa78","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $1.31","page_number":26,"box":{"x":615,"y":556,"width":294,"height":11}},{"id":"ce69e751-ce94-49d1-ac1f-82f923e8d080","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":69,"y":576,"width":702,"height":12}},{"id":"d00463f9-ab6a-40bc-bd12-1efd125cfe58","block_type":"box","text":"$25.00","page_number":26,"box":{"x":857,"y":576,"width":52,"height":10}},{"id":"947444c5-ad5f-4caf-b2a2-2df4f3e49374","block_type":"box","text":"1","page_number":26,"box":{"x":69,"y":608,"width":3,"height":4}},{"id":"c41ac299-75cd-4405-8734-e8c78a8f88f0","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":26,"box":{"x":94,"y":608,"width":541,"height":9}},{"id":"b5cdb8ad-f963-4235-b944-2d0d246244fc","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’ net asset value computed as","page_number":26,"box":{"x":101,"y":629,"width":787,"height":11}},{"id":"e8842f70-0742-4d18-bab4-084dfb9bf001","block_type":"box","text":"set for th above for Investor A Shares. Though not subject to a sales charge, cer tain share classes may be subject to","page_number":26,"box":{"x":69,"y":644,"width":833,"height":12}},{"id":"f651a790-a483-4f41-bd4d-e444d49ebecb","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":26,"box":{"x":69,"y":659,"width":813,"height":12}},{"id":"af62569d-8dff-4891-9c37-c646b767f80c","block_type":"box","text":"Shares” and “Pricing of Shares” in Par t II of this SAI.","page_number":26,"box":{"x":69,"y":675,"width":377,"height":11}},{"id":"723a2e72-a2d7-402f-a5e5-a9beb0bb64b5","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":26,"box":{"x":68,"y":705,"width":302,"height":11}},{"id":"23f4dc1a-2242-45eb-a9bb-8e0052993eb7","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in Par t II of this SAI for more information.","page_number":26,"box":{"x":102,"y":727,"width":609,"height":12}},{"id":"ed8cf471-3cd0-4552-b177-bbc8cfe763dc","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates, for the","page_number":26,"box":{"x":102,"y":750,"width":800,"height":11}},{"id":"ba93daaa-7319-4d49-9360-118bb1fb608e","block_type":"box","text":"periods shown is set for th below.","page_number":26,"box":{"x":70,"y":765,"width":234,"height":11}},{"id":"adeff4ed-130c-4364-858d-60cffafae6b5","block_type":"box","text":"Aggregate Brokerage","page_number":26,"box":{"x":613,"y":794,"width":125,"height":8}},{"id":"701e7e4f-bb38-4fb2-868d-f9792ef2bf61","block_type":"box","text":"Commissions Paid","page_number":26,"box":{"x":623,"y":804,"width":106,"height":7}},{"id":"e133d798-97aa-4bd2-94c0-c93932d82c2b","block_type":"box","text":"Brokerage Commissions","page_number":26,"box":{"x":769,"y":794,"width":140,"height":8}},{"id":"56518cf9-0c38-4cd7-8069-3894a3751a9f","block_type":"box","text":"Paid to Affiliates","page_number":26,"box":{"x":791,"y":804,"width":96,"height":7}},{"id":"45790050-fa8e-4d23-8b1d-6ebaaf585b2d","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . .","page_number":26,"box":{"x":70,"y":821,"width":292,"height":11}},{"id":"148f17ee-292d-44a1-bd3d-a75d4a06c1f0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . $2,","page_number":26,"box":{"x":369,"y":821,"width":286,"height":11}},{"id":"eef4c226-5e6a-40db-bc12-f47b2f8b5e31","block_type":"box","text":"825,983 $0","page_number":26,"box":{"x":657,"y":821,"width":191,"height":11}},{"id":"0ac8e43b-1170-4738-9059-a34a20e47666","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . .","page_number":26,"box":{"x":70,"y":837,"width":292,"height":11}},{"id":"2e189f76-1151-4db4-95fd-f8903ebb69eb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . $2,","page_number":26,"box":{"x":369,"y":836,"width":286,"height":11}},{"id":"c409e33d-d5d8-4d98-b070-53344c1f9ae4","block_type":"box","text":"418,743 $0","page_number":26,"box":{"x":657,"y":836,"width":191,"height":11}},{"id":"d6fd7dae-fda6-41e1-bf95-aed2059e13df","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . .","page_number":26,"box":{"x":70,"y":852,"width":292,"height":11}},{"id":"5e1b2d35-9477-4f37-934c-4e3d97d11fae","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . $2,","page_number":26,"box":{"x":369,"y":851,"width":286,"height":11}},{"id":"682a9276-1462-4643-8ab7-a0bcda0af644","block_type":"box","text":"498,758 $0","page_number":26,"box":{"x":657,"y":851,"width":191,"height":11}},{"id":"f330618b-d268-4cce-b1a8-842196610d6c","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":26,"box":{"x":101,"y":875,"width":770,"height":12}},{"id":"a5a15e8a-da7d-4b00-b2a9-7c9248add34f","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":26,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"fa25e09a-8277-4a63-93ae-87aef0d23b79","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":26,"box":{"x":68,"y":906,"width":829,"height":11}},{"id":"78c5d0ab-cd35-4696-bdac-b1bf9ccca94c","block_type":"box","text":"I-24","page_number":26,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"6cecfd4a-3fcf-41ea-8967-1a0dbdbd321e","block_type":"box","text":"NM0926U-5977728-26/232","page_number":26,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e5396413-14b1-4032-91ea-c3ade18704ed","block_type":"box","text":"Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage business","page_number":27,"box":{"x":69,"y":45,"width":822,"height":11}},{"id":"b3478ed7-6996-4aeb-81b8-98c3b0b0f86a","block_type":"box","text":"with such brokers.","page_number":27,"box":{"x":68,"y":60,"width":130,"height":9}},{"id":"c77c5175-780a-4f62-8bbd-4f704d61b3a0","block_type":"box","text":"Amount of Commissions","page_number":27,"box":{"x":357,"y":88,"width":141,"height":7}},{"id":"d3b78a0a-a7a9-42e8-940c-a33f1fab40ee","block_type":"box","text":"Paid to Brokers for","page_number":27,"box":{"x":374,"y":98,"width":109,"height":7}},{"id":"72a171eb-b9aa-476c-820b-a5917d44aa4f","block_type":"box","text":"Providing 28(e) Eligible Research Services","page_number":27,"box":{"x":304,"y":108,"width":249,"height":9}},{"id":"7b0dff23-ace4-4629-8977-08f3c7a0795a","block_type":"box","text":"Amount of Brokerage","page_number":27,"box":{"x":593,"y":98,"width":124,"height":9}},{"id":"be076e82-af68-4e67-b627-0ef61cee9ee9","block_type":"box","text":"Transactions Involved","page_number":27,"box":{"x":592,"y":108,"width":126,"height":7}},{"id":"dec38653-0959-4352-9dca-072568559b78","block_type":"box","text":"$1,421,813 $2,919,794,473","page_number":27,"box":{"x":385,"y":125,"width":331,"height":11}},{"id":"0ee40e2f-e74e-4f10-85a7-04c133933f4c","block_type":"box","text":"The value of the Fund’s aggregate holdings of the securities of its regular brokers or dealers (as defined in Rule","page_number":27,"box":{"x":101,"y":150,"width":796,"height":11}},{"id":"362d1992-6bf4-492b-a95e-e4c10a94ce15","block_type":"box","text":"10b-1 under the Investment Company Act) or their parents if any por tion of such holdings were purchased during the","page_number":27,"box":{"x":69,"y":165,"width":830,"height":11}},{"id":"71ad8b43-e677-4b85-8b17-b98e66198689","block_type":"box","text":"fiscal year ended May 31, 2026 is as follows:","page_number":27,"box":{"x":68,"y":180,"width":326,"height":11}},{"id":"5ee99c46-af38-456f-b923-713fb17cc495","block_type":"box","text":"Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000’s)","page_number":27,"box":{"x":265,"y":208,"width":488,"height":9}},{"id":"05f9e5f6-77a4-447d-be88-577edd0d648d","block_type":"box","text":"Jefferies LLC E $11,159","page_number":27,"box":{"x":284,"y":225,"width":419,"height":12}},{"id":"dee05189-4513-4768-ae4a-bf424f6792e6","block_type":"box","text":"Securities Lending","page_number":27,"box":{"x":68,"y":258,"width":135,"height":11}},{"id":"153924d8-6870-4ace-b1b5-2b42d1a63a1b","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":27,"box":{"x":101,"y":280,"width":807,"height":12}},{"id":"d455268f-fbe0-4b8c-ab93-9e7513b8f685","block_type":"box","text":"exemptive order from the Commission permitting it to lend por tfolio securities to borrowers affiliated with the Fund","page_number":27,"box":{"x":69,"y":295,"width":817,"height":12}},{"id":"6b5da46c-7a49-4145-8b56-f62bcb950876","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":27,"box":{"x":69,"y":310,"width":813,"height":12}},{"id":"7ad71ac9-c24c-48e4-acc3-1034e45cc638","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":27,"box":{"x":70,"y":326,"width":838,"height":11}},{"id":"50973bea-fb18-4d19-924d-89fe22f2df1f","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":27,"box":{"x":69,"y":341,"width":813,"height":11}},{"id":"e5517e1e-5ff5-408e-a0ec-2c0170bd3baf","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":27,"box":{"x":70,"y":356,"width":646,"height":11}},{"id":"5b4adc88-96b4-4dd4-9a9e-f177874a1139","block_type":"box","text":"The Fund retains a por tion of the securities lending income and remits the remaining por tion to BIM as","page_number":27,"box":{"x":101,"y":378,"width":735,"height":12}},{"id":"3d307b7c-3dce-40fd-8f63-378097debc5f","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":27,"box":{"x":69,"y":394,"width":834,"height":11}},{"id":"a54151f8-0d4a-4feb-9b96-25afcff3337a","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":27,"box":{"x":70,"y":409,"width":822,"height":11}},{"id":"c004c5f3-df9d-4ca2-a74b-4af40d3be6dc","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":27,"box":{"x":69,"y":424,"width":787,"height":11}},{"id":"ec9f7f42-bc6e-4298-8eeb-59fadcedaf65","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":27,"box":{"x":69,"y":439,"width":783,"height":11}},{"id":"568281c9-022b-454f-a540-c5b442ea28a3","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by the Manager (the","page_number":27,"box":{"x":70,"y":454,"width":816,"height":11}},{"id":"a68ca625-e8fb-4704-92ad-24a73ec44237","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":27,"box":{"x":70,"y":469,"width":813,"height":11}},{"id":"c814a0c3-d245-47a7-813f-4170ade69189","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":27,"box":{"x":70,"y":484,"width":830,"height":12}},{"id":"48908c6e-f562-4135-b6a8-adf29d5d72f3","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":27,"box":{"x":69,"y":499,"width":773,"height":12}},{"id":"269f3ccb-c1c9-4340-921d-6c4c50d0f912","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":27,"box":{"x":101,"y":523,"width":776,"height":12}},{"id":"fcb8c556-b75e-4ebb-8301-ca61ff5a0c16","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":27,"box":{"x":69,"y":538,"width":831,"height":12}},{"id":"cdf965b3-e73b-4008-ab07-f548eb4d6f04","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":27,"box":{"x":68,"y":554,"width":812,"height":11}},{"id":"22c91b56-5f91-4510-9750-dbb9d6cc24d4","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":27,"box":{"x":69,"y":569,"width":799,"height":11}},{"id":"89c949a6-7227-4c29-89c4-8aab7f91d23f","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":27,"box":{"x":68,"y":584,"width":835,"height":11}},{"id":"7f6265e9-cd71-4d1c-bbe8-ac467752c257","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":27,"box":{"x":69,"y":599,"width":818,"height":11}},{"id":"f6e6d5e8-c82e-4654-b3e1-1f7943c2b749","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":27,"box":{"x":68,"y":614,"width":789,"height":11}},{"id":"2034001e-c231-40ce-a6b2-bc12fb3b905c","block_type":"box","text":"making a good faith estimate of cer tain costs the money market fund would incur if it were to sell a pro rata amount","page_number":27,"box":{"x":69,"y":629,"width":829,"height":11}},{"id":"bf8e99d4-177a-4ae5-8fda-a0448ac7ca71","block_type":"box","text":"of each security in the por tfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":27,"box":{"x":69,"y":644,"width":839,"height":11}},{"id":"89202271-153a-496e-88ff-69b9c9610399","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":27,"box":{"x":69,"y":659,"width":802,"height":12}},{"id":"fe1fa4df-a983-4a52-ab7d-f2f21cba953b","block_type":"box","text":"por tfolio security in good faith and suppor ted by data, it is required to apply a default liquidity fee of 1% on the value","page_number":27,"box":{"x":70,"y":675,"width":830,"height":11}},{"id":"1b9f0b35-3ec4-40dd-b734-f501e1cb0754","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":27,"box":{"x":69,"y":690,"width":838,"height":11}},{"id":"7320f5e3-8616-4f79-9618-fc7423abe799","block_type":"box","text":"Fund’s returns on securities lending.","page_number":27,"box":{"x":70,"y":705,"width":258,"height":11}},{"id":"7f2c8da8-8c27-4acc-ac9a-4aa2b776cb1c","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":27,"box":{"x":102,"y":727,"width":774,"height":12}},{"id":"9d7d8a77-6779-448f-8b9f-ca72275b6b1c","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity, or fund of","page_number":27,"box":{"x":69,"y":743,"width":794,"height":11}},{"id":"87fa488a-6e1f-4b62-a372-39654c85f314","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":27,"box":{"x":68,"y":758,"width":809,"height":11}},{"id":"a3f5d17f-f288-4d30-a985-6cf04b98b3dd","block_type":"box","text":"Trust and BIM.","page_number":27,"box":{"x":68,"y":773,"width":103,"height":9}},{"id":"1b710603-4e3a-4f39-9503-eda70726ffea","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 81% of securities","page_number":27,"box":{"x":102,"y":795,"width":783,"height":12}},{"id":"39a254a2-1596-4648-9820-719cfc461042","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":27,"box":{"x":70,"y":811,"width":815,"height":11}},{"id":"7a12e746-6c6f-45cd-b33b-b3daabc8644b","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":27,"box":{"x":69,"y":826,"width":463,"height":11}},{"id":"56e0c7f5-779c-4273-9f59-ada022e20424","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":27,"box":{"x":102,"y":848,"width":753,"height":12}},{"id":"2ff6cda2-c93d-4e40-a37e-5f34c51655fe","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":27,"box":{"x":69,"y":863,"width":778,"height":12}},{"id":"da17dc60-a9ac-47f1-bd1e-84847b62d534","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":27,"box":{"x":70,"y":879,"width":817,"height":11}},{"id":"ce4b3a6a-85ae-48c0-889a-296a47304ccf","block_type":"box","text":"lending income as follows: (i) 84% of securities lending income (which excludes collateral investment fees); and","page_number":27,"box":{"x":70,"y":894,"width":794,"height":11}},{"id":"4e705252-e44e-49fa-a09e-796b44f0155c","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":27,"box":{"x":69,"y":909,"width":825,"height":11}},{"id":"87e75c4e-e1da-4da0-91c6-5b23c0dfd29f","block_type":"box","text":"I-25","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"e942b3a6-4d50-4401-ae61-7c0dfc5db5a4","block_type":"box","text":"NM0926U-5977728-27/232","page_number":27,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"3b99fef5-b219-4be4-83fb-e54df4d744fa","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":28,"box":{"x":102,"y":45,"width":683,"height":11}},{"id":"2df3e536-0a81-4a13-9b98-485d6a4c25f4","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":28,"box":{"x":101,"y":67,"width":803,"height":11}},{"id":"2073b71f-5033-4846-8134-460dad287d73","block_type":"box","text":"the following:","page_number":28,"box":{"x":68,"y":82,"width":93,"height":12}},{"id":"42406b97-06bb-4d97-8c5c-1610a44a4f34","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":28,"box":{"x":69,"y":103,"width":818,"height":11}},{"id":"fdde07aa-b4dc-47ea-9333-a8825fbd7fe9","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":28,"box":{"x":102,"y":118,"width":333,"height":10}},{"id":"eecb7fd0-2537-464e-bfc9-1276629ee3cc","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":28,"box":{"x":69,"y":138,"width":538,"height":11}},{"id":"34ceeda4-6998-4163-a31f-23c5a9318ff8","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":28,"box":{"x":69,"y":158,"width":330,"height":11}},{"id":"04ca85c5-1093-42cd-8dfa-f363a60b0616","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":28,"box":{"x":69,"y":178,"width":834,"height":11}},{"id":"66474a56-b2ee-4258-bf4d-dc936a25fede","block_type":"box","text":"of excess collateral, as necessary;","page_number":28,"box":{"x":102,"y":193,"width":246,"height":11}},{"id":"967a0e5b-d337-4a6e-92c2-d9c2cdba50d2","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":28,"box":{"x":69,"y":214,"width":562,"height":11}},{"id":"8e15fcf1-96c0-4348-bc22-0e47cb9f8f61","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":28,"box":{"x":69,"y":234,"width":665,"height":11}},{"id":"ece368e4-d80d-48a7-8ea3-1cb1172686be","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":28,"box":{"x":69,"y":254,"width":822,"height":11}},{"id":"1c742d54-1ad5-43d7-ad46-c102c58920c1","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":28,"box":{"x":101,"y":269,"width":803,"height":11}},{"id":"4ef7baae-ee00-4050-86a2-66e7dbd52a5d","block_type":"box","text":"of the loaned securities; and","page_number":28,"box":{"x":102,"y":284,"width":203,"height":10}},{"id":"6a03dc36-dbf8-4dc8-8c3b-a6c32be36482","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":28,"box":{"x":69,"y":304,"width":808,"height":11}},{"id":"19f68d2c-338a-448a-bf4a-feac8c16ec35","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":28,"box":{"x":101,"y":327,"width":805,"height":11}},{"id":"bfcda864-6be7-45f3-9ced-cd051eb4a2ab","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended May 31, 2026.","page_number":28,"box":{"x":69,"y":342,"width":546,"height":11}},{"id":"3587705c-e017-46ef-91f2-e08a8f390f63","block_type":"box","text":"Gross income from securities lending activities","page_number":28,"box":{"x":69,"y":370,"width":343,"height":11}},{"id":"3784ae67-503a-489c-aa70-87969367f5d9","block_type":"box","text":"................................................","page_number":28,"box":{"x":416,"y":377,"width":385,"height":2}},{"id":"fd62ae56-c162-4d96-9b99-aaa808dee9ab","block_type":"box","text":"$8,012,014","page_number":28,"box":{"x":822,"y":369,"width":87,"height":12}},{"id":"0c15ab70-18a7-49ce-a1dd-3ae5e332930b","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":28,"box":{"x":70,"y":389,"width":565,"height":11}},{"id":"7b593d79-fa2e-4793-9e90-2c4ee178af7a","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent . . . . .","page_number":28,"box":{"x":79,"y":404,"width":599,"height":12}},{"id":"ffb69e38-b93d-4c8b-800c-a00a415cbc28","block_type":"box","text":"............... $","page_number":28,"box":{"x":685,"y":404,"width":145,"height":10}},{"id":"9b223c9c-2d62-49a5-a758-df39e475ec71","block_type":"box","text":"330,778","page_number":28,"box":{"x":847,"y":404,"width":62,"height":11}},{"id":"cfaa0add-cb53-40f4-a8f5-0642efb5b754","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM . .","page_number":28,"box":{"x":79,"y":420,"width":673,"height":11}},{"id":"932586a0-6111-4a75-9b55-07ac2b1da637","block_type":"box","text":". . . . . . $ 69,162","page_number":28,"box":{"x":758,"y":419,"width":151,"height":11}},{"id":"fce3241f-6977-4022-8d6f-6858259d0da5","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM . . . .","page_number":28,"box":{"x":78,"y":435,"width":551,"height":11}},{"id":"fd339178-eb8d-4d2c-9e66-7413c060f8f3","block_type":"box","text":"..................... $ 0","page_number":28,"box":{"x":636,"y":434,"width":273,"height":10}},{"id":"e5841fe6-dc0d-4f95-a494-ddea57927f4a","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM . . . . .","page_number":28,"box":{"x":79,"y":450,"width":567,"height":11}},{"id":"af2ac431-ae6b-4758-8e8a-47f806a4a17a","block_type":"box","text":"................... $ 0","page_number":28,"box":{"x":652,"y":449,"width":257,"height":10}},{"id":"faef4560-014c-4cc5-ae21-8b4b8073e5c8","block_type":"box","text":"Rebates (paid to borrowers) . . . . . . . . . . .","page_number":28,"box":{"x":79,"y":465,"width":289,"height":11}},{"id":"b1666dc2-6af9-4935-bba0-23948d186725","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,","page_number":28,"box":{"x":375,"y":464,"width":470,"height":11}},{"id":"d57c73d1-6a23-4363-ae46-77aed4924aee","block_type":"box","text":"194,559","page_number":28,"box":{"x":847,"y":465,"width":62,"height":10}},{"id":"c40e320d-428b-4ce2-9e45-c25381be544e","block_type":"box","text":"Other fees not included in securities lending income paid to BIM. . . . . . . . . . .","page_number":28,"box":{"x":79,"y":480,"width":542,"height":11}},{"id":"ba4d6612-d6a0-461a-a3ff-07d381dae991","block_type":"box","text":"...................... $ 0","page_number":28,"box":{"x":628,"y":479,"width":281,"height":11}},{"id":"865bc232-59ad-40e4-bdbd-9eed34becc0f","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":28,"box":{"x":68,"y":495,"width":455,"height":11}},{"id":"d4e9dad3-022c-4968-b6f5-878cb59624af","block_type":"box","text":"..................................","page_number":28,"box":{"x":530,"y":502,"width":271,"height":2}},{"id":"dd4f27ad-d712-404b-8650-ed0c26b8a799","block_type":"box","text":"$6,594,499","page_number":28,"box":{"x":822,"y":494,"width":87,"height":12}},{"id":"05880a80-38b3-4118-9c17-827d34e3f01d","block_type":"box","text":"Net income from securities lending activities","page_number":28,"box":{"x":69,"y":515,"width":327,"height":11}},{"id":"88c09630-9c05-4183-8413-ec2e8e711541","block_type":"box","text":"..................................................","page_number":28,"box":{"x":399,"y":522,"width":402,"height":1}},{"id":"973d5ed3-c57d-4de0-9be4-991926c7f34e","block_type":"box","text":"$1,417,515","page_number":28,"box":{"x":822,"y":514,"width":87,"height":11}},{"id":"c55b3bdf-d571-4347-8c55-3c7815bee64f","block_type":"box","text":"VIII. Additional Information","page_number":28,"box":{"x":68,"y":551,"width":195,"height":8}},{"id":"7c76b167-fceb-467f-b933-538bbfa1e851","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":28,"box":{"x":102,"y":573,"width":352,"height":11}},{"id":"a56aaa8d-da91-437c-9747-9b48e4b0cf51","block_type":"box","text":"Deloitte & Touche LLP, with offices located at 115 Federal","page_number":28,"box":{"x":461,"y":573,"width":412,"height":11}},{"id":"36d07216-365d-4680-a6a0-2aead1277842","block_type":"box","text":"Street, Boston, Massachusetts 02110, serves as the Fund’s independent registered public accounting firm.","page_number":28,"box":{"x":69,"y":588,"width":772,"height":12}},{"id":"49ab1d3f-74cb-4ca9-9086-521ad4b82f68","block_type":"box","text":"Counsel.","page_number":28,"box":{"x":101,"y":611,"width":62,"height":9}},{"id":"9bb289fb-a57f-43d9-9fc2-c0c48f8d103b","block_type":"box","text":"Ropes & Gray LLP, with offices at 1211 Avenue of the Americas, New York, New York 10036, serves as","page_number":28,"box":{"x":170,"y":611,"width":736,"height":11}},{"id":"0ab93682-3c50-492e-993f-24a6c7f11c91","block_type":"box","text":"the Fund’s counsel.","page_number":28,"box":{"x":68,"y":626,"width":139,"height":9}},{"id":"b1fea19a-8b19-48f6-9ec7-acbe65401b3f","block_type":"box","text":"The Trust","page_number":28,"box":{"x":68,"y":657,"width":69,"height":8}},{"id":"3a5e05a4-3c84-49ce-8808-e0fa564fcd50","block_type":"box","text":"The Trust was organized as a Massachusetts business trust on December 22, 1988, and is registered under the","page_number":28,"box":{"x":101,"y":679,"width":807,"height":11}},{"id":"9a6e5435-8343-422f-87f1-a1abe4abdb54","block_type":"box","text":"Investment Company Act as an open-end, management investment company. The Fund is classified as diversified.","page_number":28,"box":{"x":70,"y":694,"width":811,"height":11}},{"id":"150509b7-6a1d-45c0-b6ce-73201bb7f137","block_type":"box","text":"Effective January 31, 1998, the Trust changed its name from Compass Capital Funds","page_number":28,"box":{"x":70,"y":709,"width":609,"height":11}},{"id":"9b8b2dfb-e635-4b96-976f-984fac10672c","block_type":"box","text":"SM","page_number":28,"box":{"x":681,"y":710,"width":10,"height":4}},{"id":"83f76fc8-9c45-404c-8a8f-0164418c9480","block_type":"box","text":"to BlackRock Funds","page_number":28,"box":{"x":697,"y":709,"width":139,"height":9}},{"id":"ed4a800d-3abf-448e-a6d0-763771587a3c","block_type":"box","text":"SM","page_number":28,"box":{"x":837,"y":710,"width":11,"height":4}},{"id":"1e278360-8215-4422-a302-a3f8db9d1062","block_type":"box","text":". The","page_number":28,"box":{"x":850,"y":709,"width":34,"height":9}},{"id":"fef651bc-271f-4452-aa3d-b9c84563a2dc","block_type":"box","text":"Trust is authorized to issue an unlimited number of shares of beneficial interest with a par value of $0.001 per","page_number":28,"box":{"x":68,"y":724,"width":792,"height":11}},{"id":"eb62e175-cc9d-4108-8098-be7b2902f8ab","block_type":"box","text":"share, which may be divided into different series and classes.","page_number":28,"box":{"x":69,"y":739,"width":441,"height":12}},{"id":"9e6d7035-6211-4b0b-8baa-d446e8f5473e","block_type":"box","text":"Under Massachusetts law, shareholders of a business trust may, under cer tain circumstances, be held","page_number":28,"box":{"x":102,"y":762,"width":734,"height":11}},{"id":"2aeb3e4f-f79d-47de-b9d9-19d96f1fe0bb","block_type":"box","text":"personally liable as par tners for the obligations of the Trust. However, the Trust’s Declaration of Trust provides that","page_number":28,"box":{"x":70,"y":777,"width":822,"height":12}},{"id":"7ffea109-5d21-4b58-b9e1-366a73c7385d","block_type":"box","text":"shareholders shall not be subject to any personal liability in connection with the assets of the Trust for the acts or","page_number":28,"box":{"x":69,"y":792,"width":814,"height":12}},{"id":"117cce4d-8ea5-496a-9fb0-3876d424d532","block_type":"box","text":"obligations of the Trust, and that every note, bond, contract, order or other under taking made by the Trust shall","page_number":28,"box":{"x":69,"y":807,"width":794,"height":12}},{"id":"0b2ad11f-352c-44f8-ba14-362cc3a774aa","block_type":"box","text":"contain a provision to the effect that the shareholders are not personally liable thereunder. The Declaration of Trust","page_number":28,"box":{"x":69,"y":823,"width":824,"height":11}},{"id":"12e7e906-c7c4-4399-926a-d248351325fb","block_type":"box","text":"provides for indemnification out of Trust proper ty of any shareholder held personally liable solely by reason of his","page_number":28,"box":{"x":70,"y":838,"width":804,"height":11}},{"id":"38f631ce-d4f4-47ba-be2a-07efbf56acaa","block_type":"box","text":"being or having been a shareholder and not because of such shareholder’s acts or omissions or some other reason.","page_number":28,"box":{"x":69,"y":853,"width":830,"height":11}},{"id":"04621cad-78ce-48d9-9c9a-2d03d1a1e68c","block_type":"box","text":"The Declaration of Trust also provides that the Trust shall, upon request, assume the defense of any claim made","page_number":28,"box":{"x":68,"y":868,"width":807,"height":11}},{"id":"7d0d3565-28a8-477c-a81d-5531d8afb51e","block_type":"box","text":"against any shareholder for any act or obligation of the Trust, and shall satisfy any judgment thereon.","page_number":28,"box":{"x":69,"y":883,"width":719,"height":11}},{"id":"46b28eb1-2755-49d3-b6ce-9bbec4698e91","block_type":"box","text":"I-26","page_number":28,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"1d6a0d8b-4bc2-4cff-a5de-30e15dc7c3d0","block_type":"box","text":"NM0926U-5977728-28/232","page_number":28,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"eec901ee-7998-4891-a219-fdd7e8e06133","block_type":"box","text":"The Declaration of Trust fur ther provides that all persons having any claim against the Trustees or Trust shall","page_number":29,"box":{"x":101,"y":45,"width":777,"height":11}},{"id":"24ea09cb-fd12-42cf-bcff-e0a6d869800f","block_type":"box","text":"look solely to the Trust proper ty for payment; that no Trustee of the Trust shall be personally liable for or on account","page_number":29,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"200451f2-6fed-4810-9e26-3610b6c312aa","block_type":"box","text":"of any contract, debt, tor t, claim, damage, judgment or decree arising out of or connected with the administration or","page_number":29,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"4306ea7d-6ae5-4516-9590-d8accd578601","block_type":"box","text":"preservation of the Trust proper ty or the conduct of any business of the Trust; and that no Trustee shall be","page_number":29,"box":{"x":70,"y":90,"width":762,"height":11}},{"id":"3e8ba09b-956f-444f-a42f-8b5342ea0cae","block_type":"box","text":"personally liable to any person for any action or failure to act except by reason of such Trustee’s own bad faith, willful","page_number":29,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"68b4c5d2-2d2a-4875-9a8b-833e387f0581","block_type":"box","text":"misfeasance, gross negligence or reckless disregard of his duties as a Trustee.","page_number":29,"box":{"x":69,"y":120,"width":567,"height":12}},{"id":"0c7f8020-f73b-4ef2-a85f-b1394bbbb663","block_type":"box","text":"With the exception stated, the 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For ease and clarity of presentation, shares of common","page_number":31,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"6504ff0f-dbb0-4f79-bfc2-3d1c3c0c531e","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":31,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"63147036-dd30-492f-8ac4-cd65a61d7e61","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":31,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"146b10a5-016a-4fc1-a21b-d9c1c664b885","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":31,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"dc1e7c4c-3724-42d4-bf61-a4d5a364af61","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":31,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"afdc7e5f-d619-4e62-854b-d096b3133677","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":31,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"e47460bb-d31f-497b-b85f-8984e01eccd2","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":31,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"5761e841-daff-4fc5-976b-d956ff61b435","block_type":"box","text":"Ar ticles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “char ter.”","page_number":31,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"c6e2cf7e-b7ce-4390-9737-c6db8c8a24c2","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":31,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"d0159db8-da68-437a-8446-f70c1be1e482","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":31,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"22c3a9f5-c4e9-4a79-a916-259cb7c1ab83","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":31,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"09fa8c94-bcdc-41bd-8b67-e81a6c228478","block_type":"box","text":"Cer tain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a por tion of their assets in a","page_number":31,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"f12b4d7b-5a91-4823-8eb9-34b2623ba783","block_type":"box","text":"corresponding “master” por tfolio (each, a “Master Por tfolio”) of a master limited liability company (each, a “Master","page_number":31,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"8dbf37a4-b87a-452c-8172-77b80e29bbe7","block_type":"box","text":"LLC”), a mutual fund that has the same objective and strategies as the Feeder Fund. 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For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Por tfolio.","page_number":31,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"6f7e799a-c172-42d4-bbae-2d6540fa3d7c","block_type":"box","text":"In addition to containing information about the Funds, Par t II of this SAI contains general information about all","page_number":31,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"17c57d16-27c7-4e3a-8b6a-a99bf4acd123","block_type":"box","text":"funds in the BlackRock-advised fund complex. Cer tain information contained herein may not be relevant to a","page_number":31,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"5e40d6b8-80e6-4936-9177-3117046393ba","block_type":"box","text":"par ticular Fund.","page_number":31,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"92f33b86-1d50-4c8a-a323-6ad1b0a267e5","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":31,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"5830d925-3cc1-4152-8fe0-a05e4a5731bc","block_type":"box","text":"Set for th below are descriptions of some of the types of investments and investment strategies that one or more","page_number":31,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"02eee2ba-e3e4-4859-9335-febf78fe4ad5","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":31,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"c1f6a38b-11e4-4116-a6a6-746d5f55f17f","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":31,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"5a97d95f-8d28-419a-acb8-a986b6fdafe1","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Par t","page_number":31,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"a8675eb3-a68f-4bc0-916d-d207f2520b09","block_type":"box","text":"I of this SAI for fur ther information on each Fund’s investment policies and risks. Information contained in this","page_number":31,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"859c64f8-a38f-4fa6-9443-b25b99341d14","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":31,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"78e09278-5a29-4596-8b41-f480d6cf2ef1","block_type":"box","text":"applies only to those Funds specifically identified in Par t I of this SAI as making each type of investment or using","page_number":31,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"68a3dd47-6f64-42a3-9b84-e46d0446e465","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":31,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"b3d61cb6-549e-4ce3-959a-e4f64e2d794c","block_type":"box","text":"a par t of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":31,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"b3f83ef9-b5ca-4c0b-8700-dd9b6ca4307d","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a par t of that Covered Fund’s SAI.","page_number":31,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"43ee20e7-d91b-4a8e-a845-3843d68084b4","block_type":"box","text":"Asset-Backed Securities.","page_number":31,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"d80888b1-07ad-4d11-b081-0c7149ee220d","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":31,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"e9110d9e-c10f-4739-8747-24a4dec4f7ca","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":31,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"a87fd0be-7b65-4b74-bf6c-f5b30883d76e","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":31,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"5fe30e4a-5d18-4fae-a850-584353675bae","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":31,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"57fa3816-e524-41df-889d-88096d8ef5c6","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":31,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"a7061c32-2630-4c40-8aeb-b1526bfa4df4","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":31,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"1e55dcb8-0154-4d8a-bc8d-d11d54fa693c","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":31,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"461badcd-06e6-4820-8d3a-21d929f91904","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":31,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"96d2a35b-b6c3-4017-9084-c0f06f8e0280","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":31,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"b832f64d-37b4-4002-a6eb-d204922b7b9e","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":31,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"acce89c1-bb13-46b4-98dc-ef31efff0f5c","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":31,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"2d1a05f5-3882-4de8-9c30-e7a5083004e0","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":31,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"f1e4f813-725f-4af1-b035-d39d840ee4a6","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":31,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"b11b4ffc-f95c-4842-bf14-d3453af71944","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":31,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"5a7c47a4-c5e3-4a0a-96f0-90e79061d1f3","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":31,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"3b7c7835-dc6a-4c8c-a715-d704b7008a34","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":31,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"54222225-6e8d-47c7-be92-e31e9b106da8","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This par ticular risk may effectively","page_number":31,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"8fe365df-2a0d-4723-8424-24ae318705a2","block_type":"box","text":"change a security that was considered shor t- or intermediate-term at the time of purchase into a longer term security.","page_number":31,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"2eebc041-95fe-46ad-831f-381d48f37d59","block_type":"box","text":"II-1","page_number":31,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"6d9c8330-d42f-4717-8bd4-9469ecff496d","block_type":"box","text":"NM0926U-5977728-31/232","page_number":31,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"cc45c801-449a-42a7-801e-619c0f11a05a","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":32,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"e21bd687-3451-4f54-9308-f01bef4dba91","block_type":"box","text":"than does the value of shor ter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":32,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"21ba60e5-b0f9-4c17-9f98-c8e7071cd10a","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":32,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"b063900c-469d-491b-9acd-431a88e168f1","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":32,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"d7127138-cb54-4630-a460-38974832e07c","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":32,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"c9e8826f-2420-4b86-930c-590a94e34945","block_type":"box","text":"Asset-Based Securities.","page_number":32,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"9a44b9b5-04e7-4296-880b-8ae852efd5ad","block_type":"box","text":"Cer tain Funds may invest in debt, preferred or conver tible securities, the principal","page_number":32,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"ddd8ea3f-5437-47d0-a82c-0ccbf71b22bd","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":32,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"7fa9169e-d970-416a-ba3d-fe76ff1e851d","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":32,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"754f8d11-7292-4c52-94f1-9acde6e42668","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":32,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"b533be4e-7f0d-44ba-89e8-f9f6bdef96fc","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":32,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"4834b20c-ee4a-458b-bc3f-02fbfedb603f","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":32,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"4031568b-966e-46a7-b34f-84f525df053f","block_type":"box","text":"issuers that the Manager has determined to be of similar creditwor thiness. Obligations ranked in the four th highest","page_number":32,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"4d5c5698-3d54-4b21-8fa4-3087d14d4d52","block_type":"box","text":"rating category, while considered “investment grade,” may have cer tain speculative characteristics and may be more","page_number":32,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"e803624f-bcec-4bc5-8d1a-130930fcfd1e","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":32,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"d2863a9f-4db3-4381-988f-7141856daee2","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":32,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"31319676-f9bc-4d6b-b0bc-20995d6e1dae","block_type":"box","text":"determining the creditwor thiness of the issuer. While the market prices for an asset-based security and the related","page_number":32,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"d579fd85-8d83-45ad-918b-b3409a3c4839","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be per fect correlation in","page_number":32,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"dba71a5c-4b4a-46fa-a79f-1a01005cf356","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":32,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"69d84ed2-2043-481c-bf06-39bdf1a8587a","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":32,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"610f2804-333c-4a95-9015-cb355d247f00","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Cer tain asset-based securities may be payable","page_number":32,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"0bc0454c-b5fb-4fb1-8da5-6768bf57b12b","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":32,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"b61e5c6a-3898-4471-b0fd-34374be64f7f","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":32,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"5440da4c-46c9-4f52-8f50-46a42e3bf196","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":32,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"943b60f1-cb14-4e94-a8cd-bd2b2a354075","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":32,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"845042c4-d734-43ce-b3b7-a1022bc1b41d","block_type":"box","text":"appreciation in the underlying asset.","page_number":32,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"3429a698-2c50-4db1-80f8-b9f51f872f85","block_type":"box","text":"Precious Metal-Related Securities.","page_number":32,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"a35a0d19-b9a7-496c-a04d-a6b50ff7fe28","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":32,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"d318ead9-b72d-4191-8adc-4b5c371556ff","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":32,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"f6033e5e-bce8-43b9-9e22-fbef34bb779a","block_type":"box","text":"e.g.","page_number":32,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"ef370d3c-a213-4a4d-bddd-8704e9dd6934","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":32,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"836aba27-e092-4bde-827a-7ccca1a1ae89","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":32,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"adb743ff-4abb-4217-b129-985f16f1e6b2","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":32,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"e0a28376-7f6c-41ca-b029-7c427700202f","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncer tainty or instability.","page_number":32,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"34115fd2-2e41-4b2d-8fb5-305493ba005d","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":32,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"0a881864-8356-4091-8745-ee846ef4c357","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":32,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"66c60c38-eb53-4990-9bbc-72f151a0ed12","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":32,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"58ad5e54-b519-4275-bfc0-e37267093bd9","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":32,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"4d7f2e23-4c07-4abe-a857-b816d8ef1ea2","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":32,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"6f806de4-64b5-4db1-bd31-b1614ed76af8","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":32,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"5e51659f-fd2a-480e-bedc-26ac20ceef49","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":32,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"7634e820-af92-4f76-bacf-200364bc3873","block_type":"box","text":"South African gold production.","page_number":32,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"159dea91-950e-4b03-a6e5-085c3bb3a0f3","block_type":"box","text":"Borrowing and Leverage.","page_number":32,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"ea76f25d-44b8-4b76-bd09-c84c1251d3f7","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":32,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"63c41375-5ae5-4130-9fa9-28bf51acd926","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Cer tain Funds will not purchase","page_number":32,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"8709692e-6241-41d0-987b-9747804db1e0","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":32,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"206f5a29-9b83-4b61-bfca-4b280cd18a4a","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":32,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"c2799402-0884-40e8-93ac-e33b65e59324","block_type":"box","text":"other securities transactions.","page_number":32,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"d89a9b6c-09ac-4bf8-80ec-23d4f433162a","block_type":"box","text":"Cer tain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":32,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"0af0ce42-8d09-4b40-a0b7-950f7b253ab8","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":32,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"04ee11a8-ff9a-46ee-b2ca-3a86c382e83e","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":32,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"a83128c2-7879-43b8-9175-0abbe7eff1e4","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an oppor tunity for greater total return, but, at the same","page_number":32,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"122887db-da3c-4340-872a-97d4b36acfc9","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":32,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"47ba9189-4776-47ae-ab4c-0acc98a201d5","block_type":"box","text":"shares and in the yield on the Fund’s por tfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":32,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"00ab4ea1-f85c-451f-9c90-17ff126741f9","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":32,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"4c69fb65-6835-4ea4-8208-8c57a9cf21cb","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":32,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"65beb2b0-e292-4556-b85d-cb731cc89624","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":32,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"741e4219-a5d2-4f1f-91cf-479b7387bd65","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":32,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"ecf36b01-1d7c-46a6-8190-e35b615573c0","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":32,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"2160346f-52b3-441b-83c6-e1623ea40fb8","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":32,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"bb1e03e6-3a5e-4e68-b886-315e7b5e16d3","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":32,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"5c547c4e-a2ec-46f7-834c-b2a7d59a2e93","block_type":"box","text":"II-2","page_number":32,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"db1c3194-e337-4361-8297-5b6e3f6bc044","block_type":"box","text":"NM0926U-5977728-32/232","page_number":32,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"9bf1f36c-d098-49b4-9c36-a35e785c4a09","block_type":"box","text":"never theless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":33,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"147cadd0-b49c-4326-9fef-72b5143ae43f","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":33,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"ac187426-0f09-4123-a35d-b9b9a72a0866","block_type":"box","text":"Cer tain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":33,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"e86d5d2a-9ee4-4857-a210-b9e4e7f1ea79","block_type":"box","text":"relating to asset coverage, por tfolio composition requirements and other matters. It is not anticipated that","page_number":33,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"bd6208e6-aa21-4ff5-a17e-5cbd1d0883e7","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s por tfolio in accordance with the","page_number":33,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"88e588cf-7036-4836-a98b-b3dde7fb5f26","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":33,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"552fc866-092d-431c-aa53-7a1d4c9db6ae","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of por tfolio","page_number":33,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"88d5656d-1438-469b-a9e7-a8c0e2ecc0e9","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":33,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"0ff7e971-16a9-4351-9ace-6a22e7ca4d0e","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":33,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"4e752ac3-39ad-4eb4-b213-2424e03d0aac","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":33,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"2c2ad3cf-d78b-4a2e-953c-a77cefc5b7f3","block_type":"box","text":"Cash Management.","page_number":33,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"d4283cd5-d1c2-48b9-aa8f-3d2830685b79","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":33,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"ab6ed998-a0b1-430a-b9ff-767188052573","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":33,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"90c1c52a-9e90-4093-a76e-2b100b5300f6","block_type":"box","text":"in the opinion of the Manager, a por tion of a Fund’s assets may be invested in cer tain types of instruments with","page_number":33,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"3a8e2049-60ab-44f4-a226-90e1e6fbe3dd","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":33,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"84c9ba19-6d53-4cce-a08d-4c7939674bda","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":33,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"2468d3fc-a11a-416f-94d0-c8fa6b4a9ea6","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":33,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"3f631549-5302-416f-a548-00b9e1f35ff5","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":33,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"4647bbc6-e5af-4cce-9a02-45b2aa678f0b","block_type":"box","text":"cer tificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":33,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"5e33082d-389c-4341-a5cf-2a6ea2aeeb07","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":33,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"0805062c-7b5a-4b01-9d7e-5615e1517aba","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":33,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"aaa30307-3afc-47de-a625-588457106976","block_type":"box","text":"obligations or other shor t-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":33,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"4bac34c2-fc2c-4b6c-b6e9-c00a5bb59d62","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":33,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"9cf77132-4fc6-4aeb-b3cd-409e9133bd02","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":33,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"c7557bb0-eeff-47ee-9c07-51fb517e8971","block_type":"box","text":"Collateralized Debt Obligations.","page_number":33,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"f3faf15c-87d1-4514-bfdd-5ebef3d28c80","block_type":"box","text":"Cer tain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":33,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"358e333c-6e46-4825-a887-f004932bde91","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":33,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"0a031b4e-9c6b-414e-8248-67b4d8013bfc","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":33,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"4eb1b437-539a-4b75-8eae-f7d43ae79bdc","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":33,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"8c509ab8-23c6-4c9d-aca1-5edd1096407a","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":33,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"abfa2e88-39b0-4bd1-93f7-8ca6768a9cb2","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":33,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"6464991d-b17c-49dd-939b-656271d4b190","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":33,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"4f0fe4a7-f3e3-4ebe-bc9a-ea247080a056","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":33,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"2921c25c-3709-4311-bd7f-886d6ffe0e85","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":33,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"064c6f21-378e-4f9d-83f9-4dcc09eb75d7","block_type":"box","text":"substantial por tion of which are U.S. loans. Although cer tain CDOs may benefit from credit enhancement in the form","page_number":33,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"62db87f9-4f94-4c7b-9c50-c7ecc8e151b9","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":33,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"61b1fc77-7377-4b8e-8c0d-72b4594afbfe","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Cer tain CDO issuers may","page_number":33,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"5f07862c-4c62-4bf6-8ae3-28ea06b783fd","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":33,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"41070c94-12c8-4634-9d74-8f5e2f881858","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":33,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"b8b9f3fb-85ba-4496-940a-f10424b31a07","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":33,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"a5264082-ff66-4943-8845-1d83b696447e","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more por tions, called tranches,","page_number":33,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"a76221a4-9b2b-4fe8-ba05-6afd79c17f2e","block_type":"box","text":"varying in risk and yield. The riskiest por tion is the “equity” tranche, which bears the first loss from defaults from the","page_number":33,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"3292399b-66e4-4114-bfec-b9b1613fe89b","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":33,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"f5b3fd40-0274-413d-bb10-de6ac55b0d41","block_type":"box","text":"is not complete). Since it is par tially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":33,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"46ea3207-5bc9-4ccf-840d-1379d3c139ea","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":33,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"e1153ec0-2b52-4c1e-a0a8-516a8f80c503","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":33,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"53668666-292b-43bb-b70f-6cd72014901a","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":33,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"65f7a087-509d-42b1-88e3-090c1aa4d447","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":33,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"b31923bc-29fc-4174-b39b-2e2a7e51ab45","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on cer tain tranches","page_number":33,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"71a7e474-e6bb-4a43-baf3-346092362b59","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":33,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"4af21ab0-13a0-41cd-b629-11805245b068","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":33,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"0168e6ee-e491-41f5-ba38-6b9c6af165d3","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":33,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"bdff4df5-77ae-4b40-9942-e7d8b8b01e59","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":33,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"f3706764-4216-4019-b6e0-f269d3e83474","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":33,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"e56aa9f1-4f10-42a4-a3f2-e69005abc3cb","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":33,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"5112802d-d7e4-4192-8066-a11525c85df5","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":33,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"9b610f7a-a2db-42fe-b287-99651b9e83e2","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":33,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"dbe875fc-946e-4e91-b7ff-bbd7768e196f","block_type":"box","text":"II-3","page_number":33,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"ca1362e8-5ae2-426a-bf2e-7bbcd262d939","block_type":"box","text":"NM0926U-5977728-33/232","page_number":33,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7d2212b3-574b-49c1-8202-d9f21a4fc5f6","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":34,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"d7add1be-3c0f-465e-b2b4-0343d99810b0","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":34,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"f4b292e1-c803-4f15-b560-4ca390535952","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":34,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"8e7858cc-fb76-4dd3-a506-42636afd7ce2","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":34,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"e0d134f2-931a-490b-905e-85ce4e43416e","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":34,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"cbff778b-50c1-4e3c-b5ab-f84e7acac451","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":34,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"c9f89900-eae6-4fb0-9b02-c66f881412bd","block_type":"box","text":"CDO’s manager may per form poorly.","page_number":34,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"e7d38410-b264-43ec-9870-c4722f8309ce","block_type":"box","text":"Commercial Paper.","page_number":34,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"d7b8349d-87a1-4c0a-a20c-1e81063f93a0","block_type":"box","text":"Cer tain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":34,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"63a7a11e-5b67-49ad-a76d-f414c3088c02","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":34,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"1f6900fe-50dc-4cb9-8fc6-7afa9a83adb4","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":34,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"dfec12ed-4c84-4c8f-bf0e-c91314ba3411","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":34,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"828c3a8a-3a7d-4955-b28c-3f9d049e513a","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":34,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"8b0b8a5b-a450-4986-bee8-327e118cd645","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Cer tain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":34,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"8686ffef-11b0-4cfa-8a16-5c85ae7b06c2","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":34,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"ad463359-6789-4b10-a150-aa6f64e06bf7","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":34,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"60765471-bb32-484a-a1b9-f4bd02acb469","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":34,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"827f485d-f149-4749-81e1-d99a316ec6d0","block_type":"box","text":"Commercial paper is generally considered to be shor t-term unsecured debt of corporations. Like all fixed income","page_number":34,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"90c5cff4-a609-42f1-bb7f-8c4525953906","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":34,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"18c4b280-97b6-4806-8c94-7c0a7f3bff52","block_type":"box","text":"paper prices will decline and vice versa. However, the shor t-term nature of a commercial paper investment generally","page_number":34,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"f59a701c-ea7b-4ab9-a197-6110d403e236","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":34,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"d49807bb-c2fc-41c6-aa06-ea26b8d8b332","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":34,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"c4326694-f94b-4ced-8462-8a38fb4f9755","block_type":"box","text":"debt because securities with shor ter maturities typically have lower effective yields than those with longer maturities.","page_number":34,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"09f826eb-4af7-47c6-a49d-778bd7dea939","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":34,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"11ad9a5a-db3e-4603-9275-26528f05aca4","block_type":"box","text":"Cer tain Funds seek to gain exposure to the","page_number":34,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"d2587fd7-2d36-4cc2-82f0-aa512dfb9405","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":34,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"9ce8f91e-310a-4d80-9e1b-f442df6c151e","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":34,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"ee26046d-a45d-44b3-8688-778ed521dde4","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":34,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"f011ff74-4e09-4d43-a22d-062a9f82f0a7","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":34,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"390a342a-5918-47d3-a38d-ede0fd463dd6","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least par t of their value is","page_number":34,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"d2f5b663-9d5d-4339-9821-dc7048275313","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":34,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"e12380c2-ef9a-4028-9bc9-ed2c42c2ffaf","block_type":"box","text":"variable.","page_number":34,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"98a28360-9aea-4cde-8eee-f3e7166ac6cc","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":34,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"80b2d0da-6fe2-4efa-a85b-92f50748ed7d","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":34,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"ddef5c7d-7898-40cf-8402-84b85ca35928","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":34,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"047034a8-3752-4c78-96a9-adbffb439cea","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":34,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"4570a47f-8be4-40cb-a07f-86fdd4a30c19","block_type":"box","text":"rising inflation, the prices of cer tain commodities, such as oil and metals, have historically tended to increase. Of","page_number":34,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"2c42cfa7-dff9-48d6-a6d4-5178ce233872","block_type":"box","text":"course, there cannot be any guarantee that these investments will per form in that manner in the future, and at","page_number":34,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"80583f8b-bd6e-4647-904f-1000f782bf8a","block_type":"box","text":"cer tain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":34,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"3c8e755e-5f26-409f-9c5f-9a361a7838ec","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different par ts of the","page_number":34,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"f660e8a1-3f17-4d90-ba73-6802ad34e770","block_type":"box","text":"business cycle than financial assets. Never theless, at various times, commodities prices may move in tandem with","page_number":34,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"5d1169c4-b348-4890-8e77-bef8a12b6b17","block_type":"box","text":"the prices of financial assets and thus may not provide overall por tfolio diversification benefits. Under favorable","page_number":34,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"ca4d9e42-8d10-4df4-b28e-fc5692e4b2d9","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-per form an investment in traditional","page_number":34,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"46557c92-3832-47ac-94a0-d608e9bb93ca","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":34,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"1448d7e1-08ba-4f0e-a7de-9bae490c0d21","block_type":"box","text":"correlation with stocks and bonds.","page_number":34,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"bf82821c-5b2b-419f-9fe7-f2733803a8a6","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":34,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"b2824f42-d241-4024-9e12-ff8400013efc","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":34,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"eeedb590-f0be-42ac-8122-7193c38a53cc","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":34,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"e5e27b09-a352-4d0e-a259-46bb5e550b51","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":34,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"f959ed1f-2a44-47ee-a6cb-add06fb5773a","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":34,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"0a2b2779-182c-4f27-9cc3-1fc78f4cebd1","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":34,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"f672f4a8-9db1-491b-a0e0-58ccf3f933df","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":34,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"73e3cea2-f7ef-4113-9591-984695593353","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":34,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"7430dc13-c10c-4e8a-b98f-69514afa7bfe","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":34,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"06e7995e-2ac3-4c35-98a0-b9e5db87813f","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":34,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"b25c6fda-ca30-4052-819c-e5879eb0ae44","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":34,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"7ed08aa1-2a20-489b-ad20-ea2f88ad2441","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, par tially protected, or offer no principal protection. A","page_number":34,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"7571052e-1eb9-4ab7-bb43-79839de4823c","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":34,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"39b53dfa-5e86-49c5-92bf-659f88094d7e","block_type":"box","text":"II-4","page_number":34,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"d8564fd6-114e-4220-84b3-8d510df76535","block_type":"box","text":"NM0926U-5977728-34/232","page_number":34,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a7d06971-f245-401d-872a-b1f9a2ef50ee","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":35,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"351cb38e-814e-45d5-ada4-5b2faa80ec3c","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":35,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"5eb55f59-b3e1-47b2-96b4-a0e680d3f9f8","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":35,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"d421ee58-b62b-4613-a857-c678b4c8e28e","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":35,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"1ee48705-fa8d-49ee-937f-5c7bf3ea065b","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in par t on the","page_number":35,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"08f61bb8-577d-44b2-8b63-484d888b3351","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":35,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"7e351a1a-a7c8-49fb-899b-0e57ee0ac9f3","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditwor thiness of the issuer. With full principal protection,","page_number":35,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"2be0efe8-b57a-4fc3-87ff-1453934a8836","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":35,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"e3af2350-86ea-4dde-bfc4-14d4e58890a9","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":35,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"959bde31-bd4a-4de7-94b7-e3530f7fac64","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Par tially protected hybrid","page_number":35,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"3942ddd4-ab03-4aae-8629-345995298b0d","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":35,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"80643bc6-8ac7-4b48-981b-c27cfe04dbf5","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":35,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"ee31e81d-501b-4bc0-8521-a86bf07cf693","block_type":"box","text":"par tially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":35,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"a9b95008-371c-4bd6-96d4-38d21f555b96","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":35,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"03416bd8-38cd-4586-b6c5-87f1efa23dbc","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that offer no","page_number":35,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"1bc87e9e-bab3-4cce-aed7-86fc559463d6","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":35,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"bd228b30-c132-4248-8338-9cd4a72700cb","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":35,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"6b810964-7acc-44bb-bfb0-0c7edc2d0fba","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a par tially protected principal","page_number":35,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"b7f75726-99a0-4304-bbab-d818209c0ca7","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":35,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"3d201dce-78cf-45e7-bb28-b75f5e88e953","block_type":"box","text":"Manager may consider, among other things, the expected per formance of the underlying commodity futures contract,","page_number":35,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"333bcf05-8837-478b-b291-43e05eef8e2c","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":35,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"4bbd4810-af91-4acf-b588-f7e0cba7293a","block_type":"box","text":"the Manager believes are relevant.","page_number":35,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"ebec789c-3df8-4f5b-bb6f-e77fe730a4e1","block_type":"box","text":"Limitations on Leverage.","page_number":35,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"dd145577-0d17-4b3e-b9dc-04d75023c412","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":35,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"df52aaa3-3396-4ea4-bfd0-7b43339a9adc","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":35,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"8259a598-fffd-4774-8323-ee5ee2f73982","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall por tfolio. A Fund will not invest in a hybrid","page_number":35,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"ba74922d-3d40-479b-b531-8757635fdb0e","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":35,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"e72cb37b-72f4-4604-88e7-96b241ccccd9","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “por tfolio leverage","page_number":35,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"7a77d6cb-bd12-4cb3-a5be-6241d4f3cb2e","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":35,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"ec17ae36-7e91-4058-8f1b-ff11ab8ba17d","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":35,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"5f98885c-5768-4b49-85bc-13ac5e3ada4a","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":35,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"221c15b9-e65c-42ec-96a4-63dcd7a6b539","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":35,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"4c088bb0-236f-4b36-b8cc-e947358b63ba","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":35,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"5befdf45-d216-4225-929a-77af0c66ae1b","block_type":"box","text":"variable lost 1% of its value. “Por tfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":35,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"be7ba016-73ce-43d7-bd67-677391864b20","block_type":"box","text":"instruments in a Fund’s por tfolio, weighted by the market values of such instruments or, in the case of futures","page_number":35,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"50b0a1a7-3203-4e6b-b910-9ada0a3c5afa","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":35,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"dad3309a-045e-477d-afd7-69f2b04be93e","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":35,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"907b44fc-c64d-4401-b82b-0405f5f30687","block_type":"box","text":"Counterpar ty Risk.","page_number":35,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"b378458d-b10e-4fcf-a9ac-09bae14e3fe3","block_type":"box","text":"A significant risk of hybrid instruments is counterpar ty risk. Unlike exchange-traded futures","page_number":35,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"7de33b1a-2eb7-4fa6-bd9a-2142f8204490","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":35,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"966accc3-5d44-44d1-887b-ffce2bb84505","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterpar ty is the exchange clearinghouse. Exchange","page_number":35,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"999727f2-0390-43ba-bdd4-f06d671f648c","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":35,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"29af612d-641c-4887-8e0c-3bfa3de16415","block_type":"box","text":"e.g.","page_number":35,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"f1162304-5815-4e88-b9bb-a67f25c6f77b","block_type":"box","text":",","page_number":35,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"a440e8cc-867b-457d-9d26-5e673b5ff2b9","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":35,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"b4c0265c-026a-4cd3-950a-4f99c8c22f15","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterpar ty credit risk of the","page_number":35,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"91dce3d3-d0c3-4ddc-b21d-ca82d785c53d","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to per form its","page_number":35,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"23b318f9-e31d-45d5-a227-12a00505d473","block_type":"box","text":"obligations under the structured note.","page_number":35,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"a888d647-281d-4c09-bc54-d8972b0ddc36","block_type":"box","text":"Convertible Securities.","page_number":35,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"149dbd6b-74d4-41c4-80ca-1d3f2243e639","block_type":"box","text":"A conver tible security is a bond, debenture, note, preferred stock or other security that","page_number":35,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"1576eb5b-8f5f-414a-85df-041c7fcf8879","block_type":"box","text":"may be conver ted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":35,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"fc81ffb9-ce89-4ddd-9f54-445d85f8118b","block_type":"box","text":"a different issuer within a par ticular period of time at a specified price or formula. A conver tible security entitles the","page_number":35,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"f4a7a2ed-81e5-49b3-861b-72bf61e1f208","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the conver tible","page_number":35,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"3b56dcce-67ec-45aa-bcc4-9048ac15eb47","block_type":"box","text":"security matures or is redeemed, conver ted or exchanged. Before conversion, conver tible securities have","page_number":35,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"5d50f972-0b99-4877-909e-51e1c4ae8814","block_type":"box","text":"characteristics similar to nonconver tible income securities in that they ordinarily provide a stable stream of income","page_number":35,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"77a0bd1a-fc78-4122-8316-dab659e253dc","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":35,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"952a2029-7f6f-47c9-982e-355801165c53","block_type":"box","text":"comparable nonconver tible securities. The value of a conver tible security is influenced by changes in interest rates,","page_number":35,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"2540ba57-d684-4254-9d8f-78433097f2ae","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":35,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"458c1478-0f68-49ac-a432-5c5c5a0fad68","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the conver tible security’s investment value.","page_number":35,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"2a08ff50-7605-4324-9700-00bf166d0511","block_type":"box","text":"Conver tible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":35,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"d5bd935d-0d71-4e2d-b209-81a6b3677971","block_type":"box","text":"to comparable nonconver tible securities. Conver tible securities may be subject to redemption at the option of the","page_number":35,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"b6c74195-226e-4002-984d-9b5386d64c11","block_type":"box","text":"issuer at a price established in the conver tible security’s governing instrument.","page_number":35,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"6cabb7c3-8a40-4359-8774-a396f96b64a5","block_type":"box","text":"II-5","page_number":35,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"6fd6c823-927b-4c67-a0ee-e03405d6f7c1","block_type":"box","text":"NM0926U-5977728-35/232","page_number":35,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"44e351d4-eb6a-4a06-8dff-5b18cd3df5bd","block_type":"box","text":"The characteristics of conver tible securities make them potentially attractive investments for an investment","page_number":36,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"90635594-13ab-4e02-a178-c4edcab24566","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":36,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"8dc38f0d-90d4-4873-84db-4660de964fd2","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":36,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"b8feda04-b6ed-4256-82be-cbcdfc5c2c33","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":36,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"4b31e2ea-3d5c-484f-9a20-c531533db4f5","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":36,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"000c2836-3bd9-48f4-b7a5-7c8879f53a1f","block_type":"box","text":"feature, however, the interest rate or dividend preference on a conver tible security is generally less than would be the","page_number":36,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"7bf91dc2-07e2-496e-94c5-2817d2bd18fe","block_type":"box","text":"case if the securities were issued in nonconver tible form.","page_number":36,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"d631053b-77c9-4952-add3-095f13e6d9c4","block_type":"box","text":"In analyzing conver tible securities, the Manager will consider both the yield on the conver tible security relative to","page_number":36,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"528b6691-8f7b-4038-8777-ad94c4aff170","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":36,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"7f3def7d-5aba-4a1d-b1e1-3bad6aeb7af0","block_type":"box","text":"things.","page_number":36,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"ceaea0f4-0760-4b2d-9fb7-aeb3e0fe7588","block_type":"box","text":"Conver tible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":36,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"5dc66118-c651-4d32-97c6-92cb4f42f1d5","block_type":"box","text":"substantial por tion of the conver tible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":36,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"c4258dfd-359a-4756-8f3a-fab66506b2f5","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":36,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"a64ad4e0-db32-4f75-ba70-8b086a881c6f","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":36,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"8854fd3a-b700-4e95-bcaa-ea692ed3c548","block_type":"box","text":"price is quoted will affect the value of the conver tible security. With respect to conver tible securities denominated in","page_number":36,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"dd7b206f-2533-427c-9a33-17491a98067a","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":36,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"ea280b49-50d6-4a30-bfbd-d9e4f598d17e","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":36,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"04ae60ea-1889-4499-bddb-390c19c06f85","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":36,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"91323b16-3ea9-4c34-a1fd-6f8d1f5c02ac","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":36,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"e45cef54-6293-44c6-9e4f-25520b0743c2","block_type":"box","text":"Apar t from currency considerations, the value of conver tible securities is influenced by both the yield on","page_number":36,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"29eaf0a6-6f11-4716-85f4-26141a786f60","block_type":"box","text":"nonconver tible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":36,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"82ea44c7-f05f-46b7-87c3-15bd31a5253f","block_type":"box","text":"conver tible security viewed without regard to its conversion feature (","page_number":36,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"0a4541da-71b8-41b4-a3a8-ddd0575fb3b8","block_type":"box","text":"i.e.","page_number":36,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"d4e5f34e-ab8a-4bc0-b40b-f66d0b786355","block_type":"box","text":", strictly on the basis of its yield) is","page_number":36,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"ff58c7e1-47df-4ed5-bd9e-725391df1516","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":36,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"04c4e5c2-bb13-4271-8ebb-48f51b7e0e3d","block_type":"box","text":"conver tible security typically will fluctuate. At the same time, however, the value of the conver tible security will be","page_number":36,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"c4cafbb3-b9d5-42e8-af99-7ea5599fb6ae","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":36,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"0700e550-8baa-4b92-af78-3d803eb3809f","block_type":"box","text":"obtained if the conver tible security were conver ted. Conversion value fluctuates directly with the price of the","page_number":36,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"27d69d56-cba7-4522-a51e-b40dc93f5d5c","block_type":"box","text":"underlying common stock. If the conversion value of a conver tible security is substantially below its investment value,","page_number":36,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"567c2efb-03b8-464b-855a-5720b27bc53b","block_type":"box","text":"the price of the conver tible security is governed principally by its investment value. To the extent the conversion value","page_number":36,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"df9ede89-7ec5-4509-be94-03f68eac3083","block_type":"box","text":"of a conver tible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":36,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"fe31c957-3b37-4dec-90ed-b73156efabea","block_type":"box","text":"conver tible security will be influenced principally by its conversion value. A conver tible security will sell at a premium","page_number":36,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"ff897343-831e-450f-8087-a3d50a8643e9","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":36,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"a9dc0494-55c9-4a3b-a8a0-bf7e8d525b6b","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of conver tible securities issued in Japan and","page_number":36,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"8f464d5f-1f24-40f6-a495-44de611a8a4a","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":36,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"29165327-d2e1-4dba-8b55-5d7811135b19","block_type":"box","text":"than the securities’ investment value.","page_number":36,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"4ef1fbdb-cd84-4f0f-9a75-8025338837ef","block_type":"box","text":"Holders of conver tible securities generally have a claim on the assets of the issuer prior to the common","page_number":36,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"54c921ea-8ab8-4273-82b3-ab2d67011e2e","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A conver tible security may be","page_number":36,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"33451605-37e6-4073-bbde-05b5ea8af23f","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a char ter provision, indenture or other","page_number":36,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"5cebe8e1-f430-4a92-9060-5fee767b76a9","block_type":"box","text":"governing instrument pursuant to which the conver tible security was issued. If a conver tible security held by a Fund is","page_number":36,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"cb374c27-4881-42be-8095-71fb3e2fd745","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, conver t it into the underlying common stock","page_number":36,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"78ebc988-cc98-4450-8a5d-210c5989088f","block_type":"box","text":"or sell it to a third par ty. Cer tain conver tible debt securities may provide a put option to the holder, which entitles the","page_number":36,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"86a4a1a2-5ee1-4178-bbe7-0314f69a6df3","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":36,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"fd7930b4-5bb6-47b1-837d-a8e84519672a","block_type":"box","text":"security under cer tain circumstances.","page_number":36,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"1a1238e9-97d4-4586-a85e-2619e76b808c","block_type":"box","text":"A Fund may also invest in synthetic conver tible securities. Synthetic conver tible securities may include either","page_number":36,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"eb302f7c-8e16-4c97-9730-b6b5a4c97f97","block_type":"box","text":"Cash-Settled Conver tibles or Manufactured Conver tibles. “Cash-Settled Conver tibles” are instruments that are","page_number":36,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"ce66910c-1b78-4a42-b52a-2651a0deb7f9","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional conver tible securities but may not actually","page_number":36,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"5854c1de-c564-4dfd-8fc6-588124951911","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":36,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"7b71583f-d79f-47ce-bad8-801e1d8f5b39","block_type":"box","text":"issue a Cash-Settled Conver tible that is conver tible into common stock only if the company successfully completes a","page_number":36,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"a4109c63-2086-4f6b-8bcc-af13e4ebd687","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":36,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"e94101fd-6e42-4d76-a1ee-1b653f8d3bf5","block_type":"box","text":"appreciation. “Manufactured Conver tibles” are created by the Manager or another par ty by combining separate","page_number":36,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"e8c37a86-c50f-412b-b76f-3320b91db6e9","block_type":"box","text":"securities that possess one of the two principal characteristics of a conver tible security,","page_number":36,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"44eeb602-3c7e-4ade-9321-1cf34546767b","block_type":"box","text":"i.e.","page_number":36,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"9ec9b1f9-db8c-4653-9411-d7649f93f777","block_type":"box","text":", fixed-income (“fixed","page_number":36,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"88af0955-7b10-410a-a39a-f3b50df3bfb8","block_type":"box","text":"income component”) or a right to acquire equity securities (“conver tibility component”). The fixed-income component","page_number":36,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"d7710833-f5d6-4be9-9a70-0cd66a9e19e0","block_type":"box","text":"is achieved by investing in nonconver tible fixed-income securities, such as nonconver tible bonds, preferred stocks","page_number":36,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"ba2cd380-6375-42cb-bb11-1cee7e357b1d","block_type":"box","text":"and money market instruments. The conver tibility component is achieved by investing in call options, warrants, or","page_number":36,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"2f5b6e83-c6ea-4bfb-b862-df726f260370","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":36,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"448f9c74-707c-4e53-88f7-01a921047b8c","block_type":"box","text":"II-6","page_number":36,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"d2caacaa-92c0-4386-8154-eff46587fc62","block_type":"box","text":"NM0926U-5977728-36/232","page_number":36,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a5253fb0-c5eb-4c0c-af29-2d9d2c36cf5d","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":37,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"70f2f485-b062-4b2d-a7b2-da95cbaafcad","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":37,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"ca192374-fbac-40d4-b9e2-55fcd3f2570f","block_type":"box","text":"A Manufactured Conver tible differs from traditional conver tible securities in several respects. Unlike a traditional","page_number":37,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"b21a9518-87ea-4bfc-90ee-afdf059f439f","block_type":"box","text":"conver tible security, which is a single security that has a unitary market value, a Manufactured Conver tible is","page_number":37,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"e4605ee6-6841-40cb-a88b-95b845075c44","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":37,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"a8c35870-09b5-4322-9e95-277930ecff3b","block_type":"box","text":"such a Manufactured Conver tible is the sum of the values of its fixed-income component and its conver tibility","page_number":37,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"fb6a9f41-f55a-4a32-a67b-1fcfcae2d33e","block_type":"box","text":"component.","page_number":37,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"b8ed1c71-f094-4d8b-8655-564a4185d931","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Conver tible than in the purchase of a traditional","page_number":37,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"964cb02f-acb6-411e-86fc-fccd95c3ee03","block_type":"box","text":"conver tible security. Because many corporations have not issued conver tible securities, the Manager may combine a","page_number":37,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"ded1be8c-e0b3-4e3d-9c36-0c035ea70154","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":37,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"40a9f486-970e-4e67-b28e-53bd5f906e7c","block_type":"box","text":"to create a synthetic conver tible security otherwise unavailable in the market. The Manager may also combine a","page_number":37,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"c453cea3-de6b-4c2a-a00f-3081c7b1283e","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":37,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"828dad18-1fdc-4115-9941-094f3faba1cf","block_type":"box","text":"Manager believes such a Manufactured Conver tible would better promote a Fund’s objective than alternative","page_number":37,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"962c1997-74c3-42fe-aeb5-9788a6de67ae","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":37,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"6bbebf74-6c69-4c22-99d0-f16c1da33dcb","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":37,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"9ff03cef-14a5-45dc-bf06-c11aa9c17284","block_type":"box","text":"Treasury instrument to create a Manufactured Conver tible with a higher credit profile than a traditional conver tible","page_number":37,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"d8a1382f-0d8a-41b4-b446-28b60d807806","block_type":"box","text":"security issued by that issuer. A Manufactured Conver tible also is a more flexible investment in that its two","page_number":37,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"7fb6ab16-e738-4d01-9083-fec867b6554c","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":37,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"9d1353c1-baac-456e-aee0-c17aa3134b7e","block_type":"box","text":"Manufactured Conver tible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":37,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"c91ed823-58d9-4c0b-8f02-8110d2f1a63e","block_type":"box","text":"Conver tible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":37,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"dae83dd3-789c-4b3d-ae24-0b1e0677c1cc","block_type":"box","text":"favorable market conditions.","page_number":37,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"5bc56f9b-c064-4412-bb3e-6136e009685f","block_type":"box","text":"The value of a Manufactured Conver tible may respond to cer tain market fluctuations differently from a traditional","page_number":37,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"1b6fc7c1-5e66-42d0-9d96-429b72c39f82","block_type":"box","text":"conver tible security with similar characteristics. For example, in the event a Fund created a Manufactured Conver tible","page_number":37,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"8b717133-d388-454c-9547-609994e00c8a","block_type":"box","text":"by combining a shor t-term U.S. Treasury instrument and a call option on a stock, the Manufactured Conver tible would","page_number":37,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"3f7f556a-d0b9-4d03-9b43-5794258b557f","block_type":"box","text":"be expected to outper form a traditional conver tible of similar maturity that is conver tible into that stock during","page_number":37,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"f98cc0a4-9d40-4b54-8d7b-b8e4046ec163","block_type":"box","text":"periods when Treasury instruments outper form corporate fixed-income securities and underper form during periods","page_number":37,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"d343fee7-86ea-41ac-a197-1d46f00d29a0","block_type":"box","text":"when corporate fixed-income securities outper form Treasury instruments.","page_number":37,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"f1980f31-a035-4f4b-a141-1f29d7efd8b1","block_type":"box","text":"Corporate Loans.","page_number":37,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"99c7bae3-7245-4107-b7b0-34423b2b686e","block_type":"box","text":"Cer tain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":37,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"7a3acca5-d3b4-4e64-9664-d08ce1b2ac3b","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Cer tain Funds may invest in","page_number":37,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"2ec30c2f-6be7-458c-b267-512f9dba887b","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":37,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"f3d0453c-dd28-4aa4-86b3-3fb2c1111e04","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":37,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"8818de13-b352-42e8-a54f-f8800eb02144","block_type":"box","text":"in such Loans in the form of par ticipations in Loans (“Par ticipations”) and assignments of all or a por tion of Loans","page_number":37,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"2b3c6bc7-7398-4e1e-a6ba-554b64cc43a5","block_type":"box","text":"from third par ties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":37,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"67b9e2cc-1023-4b55-a82a-648dce1fd712","block_type":"box","text":"purposes of its investment policies. Par ticipations typically will result in the Fund having a contractual relationship","page_number":37,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"b0ce56a2-37e7-42d4-9dd2-7286549a7d40","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":37,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"e4c43a0e-7c1b-4125-be0b-6d0b41113174","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Par ticipation and only upon receipt by the Lender of","page_number":37,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"b2c71f35-3871-4ce1-a383-4a57dbcc0ffe","block_type":"box","text":"the payments from the borrower. In connection with purchasing Par ticipations, the Fund generally will have no right to","page_number":37,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"798bbbc5-82f7-4483-a6d6-8a0f1106b9f3","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":37,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"9cf64343-5da1-4d3e-a601-c702ba205ffd","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral suppor ting the Loan in which it has","page_number":37,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"a6886610-6475-4521-8052-5d48337d0405","block_type":"box","text":"purchased the Par ticipation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":37,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"10f1dc87-778b-4e28-94c0-a48ce17db7d6","block_type":"box","text":"that is selling the Par ticipation. In the event of the insolvency of the Lender selling the Par ticipation, the Fund may be","page_number":37,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"67e0df29-625d-4bb2-89ba-c9d1cafed41f","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":37,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"bb4f1cae-8a56-4ab1-88d2-decce67ac3f7","block_type":"box","text":"borrower. The Fund will acquire Par ticipations only if the Lender interpositioned between the Fund and the borrower is","page_number":37,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"2a324a6e-d08f-4eb7-ad3e-9d555997081c","block_type":"box","text":"determined by the Fund’s manager to be creditwor thy. When the Fund purchases Assignments from Lenders, the","page_number":37,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"803783a5-e418-4c3f-9a2c-54ab9916b66a","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterpar ty’s credit","page_number":37,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"0180d9ca-8ce4-4299-9bdb-299088c71389","block_type":"box","text":"risk. The Funds may enter into Par ticipations and Assignments on a forward commitment or “when-issued” basis,","page_number":37,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"e0b93c13-c750-491c-beaf-5ea94bee7216","block_type":"box","text":"whereby a Fund would agree to purchase a Par ticipation or Assignment at set terms in the future. For more","page_number":37,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"0bca47b4-53e8-4f05-815d-3f97a3a04bc8","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":37,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"2897d60e-b898-4dc7-8f97-14160d88e740","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":37,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"79dfee30-5a47-48e0-a4d1-a352e03e2540","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Par ticipations. In cer tain cases, the market for such","page_number":37,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"98dd54cc-2d2e-4c38-849e-d3aa2d1e64da","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":37,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"282aa1fc-ea37-4737-93f0-ff33d2494f09","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":37,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"361f3562-f05c-489c-b197-696c88035f98","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of par ticular","page_number":37,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"a55fbd59-a77d-4095-8f27-43ea741e6c28","block_type":"box","text":"Assignments or Par ticipations in response to a specific economic event, such as deterioration in the creditwor thiness","page_number":37,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"a166d699-dce1-472b-8d5d-2f1e8dfb4f99","block_type":"box","text":"of the borrower.","page_number":37,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"28757a5e-1277-422a-ad43-38f5c6d63cbb","block_type":"box","text":"II-7","page_number":37,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"80171c2f-193e-4652-8770-c3dad55dd4b2","block_type":"box","text":"NM0926U-5977728-37/232","page_number":37,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"cb60276b-a69a-466e-b043-66b1ed647b0e","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":38,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"d758a854-216d-4cd6-95a4-e8ea2f04d8ad","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":38,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"67f245dd-1fdb-4a37-bcf7-f84d6a2686cf","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":38,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"65bda9b6-62c9-487a-bee3-7d985ef29574","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":38,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"5d2a7de5-c86e-47b0-a579-9788211e6ed1","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":38,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"2794f126-f66c-4d99-a354-dc5dc990deae","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":38,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"13a65d25-4d64-410e-b30e-7bd56797fe66","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":38,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"af3474d6-116e-4e37-a928-7cb8a5d92e18","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":38,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"2c9dee59-24d6-47f1-83e0-c0e6ac265b12","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":38,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"78dcaeae-3813-476e-90be-e797a4208257","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":38,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"9809f628-5628-43d8-be13-0180af15c8b9","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":38,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"405569a9-8a39-4b99-95aa-4fceb44c36cd","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":38,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"da6a2258-f468-4d21-a2ca-bf7198ffca87","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to shor t-term liquidity needs, a Fund may hold","page_number":38,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"6bb565d0-4dde-457b-9f9a-48614073f2a2","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":38,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"eeeef595-9e46-4b6f-b640-7816f22c95d9","block_type":"box","text":"In cer tain circumstances, Loans may not be deemed to be securities under cer tain federal securities laws.","page_number":38,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"dc2dba55-2144-4c96-9f5e-c6d922df3d51","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":38,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"a9f62a2b-43d5-4d5c-8603-f5b9794e9502","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":38,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"1a43d917-42ba-4023-b8ab-567ebb1de124","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, par ties generally would","page_number":38,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"15864fde-6880-45f9-9602-ac5651ed6ba0","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":38,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"1c2cdd4d-45f3-4e2e-9916-445004d25131","block_type":"box","text":"state law.","page_number":38,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"065b4859-f48f-4086-8c3d-b5e1fdb6fb6a","block_type":"box","text":"Direct Lending.","page_number":38,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"19b86684-cb9c-4eb3-82bf-7b2a72497477","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":38,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"bf098032-fc3d-4fb0-b99b-7605c2323760","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":38,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"00fb51a4-0802-40d7-b7f8-e6b74354be52","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":38,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"17f71629-28a3-42c4-beee-ea3de771fac3","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":38,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"675d978e-7bb0-4165-b918-f7e7a0a10afa","block_type":"box","text":"Fur thermore, a direct loan may be secured or unsecured.","page_number":38,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"6cfccb79-c6e8-42f6-97b6-a85a5ce5c184","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditwor thiness of the","page_number":38,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"18a77771-d4db-4dae-887a-766ecde4ba69","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":38,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"b7e34093-a34e-4c5b-9be8-b26f5547f01f","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":38,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"be6ca18b-2e30-43dc-979c-4b586b192969","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":38,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"c0b3bc4f-9c3a-4ef0-b328-1a50de0baec3","block_type":"box","text":"money on the loan. Fur thermore, direct loans may subject the Fund to liquidity and interest rate risk and cer tain","page_number":38,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"436fa339-8925-4c69-8345-de9ef659e095","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":38,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"fd256d88-650e-4369-bbae-61144dc89330","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":38,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"d190d14f-6df0-4b2f-923a-bf24590e3562","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":38,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"9f54671c-500f-4649-a107-ebef70a94511","block_type":"box","text":"When engaging in direct lending, the Fund’s per formance may depend, in par t, on the ability of the Fund to","page_number":38,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"31ee35ba-53f1-4d62-afb6-e21688160338","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":38,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"215978a9-e474-4149-a491-868044963680","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":38,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"54cf1933-5cc7-4c41-9153-2f445fa1462f","block_type":"box","text":"such loans, which could reduce Fund per formance.","page_number":38,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"7af460e1-7be7-4ea6-9899-3a714c5e920a","block_type":"box","text":"As par t of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":38,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"82397355-b682-44ec-a635-37c0e63b9e19","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":38,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"dabdda87-087b-4118-89a0-16a24ca424b1","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":38,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"a26dd456-35d3-4518-89e7-10ea51c0cc3a","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":38,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"cedad2e3-c766-4570-8694-71260dc8c369","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":38,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"0319324d-bbf1-44a1-8bd8-8e75186e2942","block_type":"box","text":"Credit Linked Securities.","page_number":38,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"3c9eceaa-5c72-491f-b1a6-ccf1881cef3a","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":38,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"27bdfb11-7072-4835-a520-31ff4a63b5ae","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":38,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"ccd8013e-3d07-4b43-b602-143759ce2837","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":38,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"261be58c-9738-4e90-8bb9-32996e2f3f56","block_type":"box","text":"to provide exposure to cer tain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":38,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"cc358db5-01cc-48c4-9324-3c36b4b76c39","block_type":"box","text":"cash management tool in order to gain exposure to a cer tain market and/or to remain fully invested when more","page_number":38,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"e4b37c97-cf91-44de-9b56-784d9ec929ec","block_type":"box","text":"traditional income producing securities are not available.","page_number":38,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"2baa34e5-f878-4da6-bc38-4be5fa83a138","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":38,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"4d357a44-5812-4e0c-b9db-2cf4557e83f3","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":38,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"34557314-a5c1-46f7-8a4e-1ce325e8dc07","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":38,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"71c87035-1068-4a7f-b692-28784792299f","block_type":"box","text":"obligations to, the counterpar ties to the derivative instruments and other securities in which the issuer invests. For","page_number":38,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"3ae2d4c6-6c8e-46ef-b4b1-1317c62986b7","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":38,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"6e896446-4fae-4ed9-8349-b12e32588c15","block_type":"box","text":"II-8","page_number":38,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"8cea4a1a-bb64-49b2-9b79-8e9052ad118a","block_type":"box","text":"NM0926U-5977728-38/232","page_number":38,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"fed5abe7-fb6a-40d1-8bf2-a5984ad3f904","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":39,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"1fdd39bc-290d-4d6d-9310-61e88088faa3","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":39,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"bb68dd5f-79c7-4872-aaaf-a526997deea0","block_type":"box","text":"the issuer would be obligated to pay the counterpar ty the par (or other agreed upon value) of the referenced debt","page_number":39,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"6cf33dad-d3ff-4100-b6c7-f3a72ecdc29a","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":39,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"e57084c1-eabb-47ed-807d-aa6919c25637","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":39,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"0df80c0b-3c83-4e67-8160-ae16281e04dd","block_type":"box","text":"among others, credit risk, default or similar event risk, counterpar ty risk, interest rate risk, leverage risk and","page_number":39,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"08040737-e7f7-4a8a-8246-ac303510c99b","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":39,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"aa3c1077-077f-4851-a4eb-463c8968c1a6","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":39,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"33656e14-6e46-4af3-93c8-63d19014f987","block_type":"box","text":"investments.","page_number":39,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"eb80f60c-6c16-49ef-9e2d-f5442751b3b2","block_type":"box","text":"Debt Securities.","page_number":39,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"86caff58-4359-413c-ab5f-cbed342acc5e","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":39,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"4ade43e6-dd71-468f-8d69-627c6441d33d","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":39,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"1942b2a4-3af8-43f1-9b6f-c62a5505271d","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":39,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"77267f42-8345-43de-971c-e616f7c5e201","block_type":"box","text":"creditwor thiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":39,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"8d5ce9df-f769-4314-b903-41bd4e65b488","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":39,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"5f86a55a-73f7-4a57-9bd5-f0d2743e55b4","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":39,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"42442009-6213-401c-8ffd-6c6e99424c41","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":39,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"9a6457c4-3973-4295-9301-82967538d14c","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":39,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"68dbf591-a259-4d98-96d8-313edf04f508","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":39,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"464cba52-7771-451c-a66d-cfea895204b4","block_type":"box","text":"rates than will the market price of shor ter-term debt securities.","page_number":39,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"730e0cc9-2685-4fbe-b501-067f24a460b5","block_type":"box","text":"During periods of rising interest rates, the average life of cer tain fixed-income securities is extended because of","page_number":39,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"72208e7e-782f-4ac8-9461-d5360ab58833","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":39,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"dbaa87d7-c31f-4c84-8ac9-188731b65d66","block_type":"box","text":"these fixed-income securities, especially mor tgage-related securities, making them more sensitive to changes in","page_number":39,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"ef1ce223-b3ce-494e-b948-6388302f82ae","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":39,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"ea0434e0-e156-4e3f-804e-77f9736dda43","block_type":"box","text":"lose value. This is known as extension risk.","page_number":39,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"87f8e1a3-5b45-4184-9dd5-6cf5eacd274e","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":39,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"184acfc5-7f78-4fe6-a971-4eb580666dcf","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":39,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"92b6e34c-ecdf-4d8d-b10b-7550298b27b6","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shor ter maturities. The Funds are not","page_number":39,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"db00d359-14b6-4553-bbd5-6337b9e3e5ee","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual por tfolio securities, and the average","page_number":39,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"597e7385-e698-47c8-a239-4cf2ad52b735","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":39,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"cf53283a-9af8-473a-9f4b-d11fec8c9820","block_type":"box","text":"Floating and Variable Rate Securities","page_number":39,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"fa8e2b37-ac03-4e5b-a4dc-e861acb813f9","block_type":"box","text":". Cer tain Funds may invest in debt instruments that pay a variable coupon","page_number":39,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"9022c9ea-9152-4a7d-b19c-ab38d768654a","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":39,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"d13703a8-ec4a-4217-a10e-45bb3368fdc8","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":39,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"7539478f-3959-463c-a79a-d4a3fa1feb9b","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":39,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"dc29f0d9-b2ad-43a5-bbe7-f983a2427fea","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":39,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"35b6bdf6-d029-467a-be91-4f52f3954ddc","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":39,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"de66bb6a-2021-4acd-8324-11380c646cb1","block_type":"box","text":"market interest rates.","page_number":39,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"bebd7b99-9d93-4e87-8aa7-e1340772f903","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":39,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"7a26599b-a24d-49bf-8d80-1f3325f4c61d","block_type":"box","text":"Cer tain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":39,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"ba31cd1c-1f9d-478b-90fa-1e0f08566a01","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":39,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"a6149acc-1958-4710-bffc-13ca811d8368","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":39,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"5612d542-4088-45ab-8228-ffb9290ac1de","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as par t of a semi-annual coupon.","page_number":39,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"e0e0a531-18e1-4ade-8646-bab39c07e7c1","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thir ty years, although it is","page_number":39,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"d3b619d0-c57e-4105-acf4-1f195f5dc81c","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":39,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"d48d39ab-9629-4c5c-9491-30c12cd1d0fa","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":39,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"788f59e6-4bff-427b-8be2-4d63131339ed","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":39,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"7c925282-a087-4dd8-8acf-939ff228aef1","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":39,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"244ebf3d-5afd-408f-848a-3dd6616dc4f9","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":39,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"c4fad056-f48d-4012-9772-151668c8cc91","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":39,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"35850379-a8ac-412b-b13a-70e5274701ec","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":39,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"573b5adf-0f10-431e-8138-be5a0170f8d7","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":39,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"78c0418f-1c2e-4361-a2ae-3335c25057a8","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":39,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"add1ce2b-268c-4bdd-a347-3665036b4510","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":39,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"cb8cd814-5e6f-45b4-b502-655b2c804a2d","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":39,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"919344d3-0389-47f7-94ec-5c90ff86ca8b","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Cer tain Funds may also invest in other","page_number":39,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"8cdcb090-060f-4530-b46a-d5f8fedabfad","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":39,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"0f8d1a16-e7de-45be-922b-159c8566903d","block_type":"box","text":"II-9","page_number":39,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"c005bb52-a1ec-44ab-a2da-35e6137b452c","block_type":"box","text":"NM0926U-5977728-39/232","page_number":39,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"bfefaf30-0ef3-4184-b044-79d5c3ff43e6","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":40,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"eb6296be-e8f1-49a9-b3ae-9f5afc8f68cc","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":40,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"904b9312-e411-4e50-845e-d178381ba1a2","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":40,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"e33c5df3-309f-4b9d-b9b8-3f5493555ef4","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":40,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"7e57a0d0-702f-4d04-8c86-43869c75fd08","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":40,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"0fe76b43-7319-4ee2-bb9d-da4b0fd52214","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":40,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"6ecde578-4c0f-4124-86b7-73bcef397130","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":40,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"ffb4df7b-a5fd-4195-b9de-9358a4f53e93","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":40,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"179e4965-1e47-48d7-8ca8-d93189fee037","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":40,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"c50939f3-9fbb-46e1-8053-f7ae1e029ac4","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, shor t-term increases in","page_number":40,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"6ccf0250-bb4b-4800-94a3-1577e3827310","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":40,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"c624f523-adb4-45b9-b793-3913d0b6d315","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":40,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"8d8171c9-7644-4312-b008-accef1f378e5","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":40,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"b4ce9a06-e8a5-4236-8f1a-58f113de77fe","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":40,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"9a4fa470-6cad-4e91-be67-c78947d305e7","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":40,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"73a83333-af0b-4861-b36c-451a7c8fdb41","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":40,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"f3cc8b33-e080-4b7e-9331-0e34e33e91ed","block_type":"box","text":"food, transpor tation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":40,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"db48ee16-f673-4958-86b4-a0d2d71051e9","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":40,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"0a60cc6a-809d-4c6b-9240-a18bfebfa264","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":40,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"7fe025bb-1919-4ab1-86f9-3b53f2370bc2","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":40,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"6156fc4e-952d-4d09-883d-6430ea39f868","block_type":"box","text":"United States.","page_number":40,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"30220622-26ee-4144-89ec-8274a65d003a","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":40,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"d8d868f2-18c4-48a2-b901-de998548ee1d","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":40,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"1b305e3a-465d-40a8-b710-1a7ced189a9e","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":40,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"e6cfc325-ad10-4a53-a406-ab44128a4785","block_type":"box","text":"Cer tain Funds may invest in “investment grade securities,” which are","page_number":40,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"c6a7bffd-eafe-4f8d-8733-2850a89d2da3","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":40,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"5ac3d8e7-0f70-4c24-9b40-87abd5e6f2a1","block_type":"box","text":"Manager. Cer tain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":40,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"ea6b3e1d-4721-46e8-b4c2-22c70fdea74b","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":40,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"2cd247ea-121f-4c1f-b929-33e4190c87f6","block_type":"box","text":"i.e.","page_number":40,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"7138c659-73d1-4dd6-b27a-534e029f0f1d","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":40,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"d0dc3450-8618-45bd-b40c-46a732734981","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":40,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"98ece06f-5f5c-4210-9e04-c55c4dfd9b27","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":40,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"9554741b-5f4a-409e-9a09-15d626c25a05","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":40,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"a5d433b2-6937-405f-baf9-ff1e1827a0f2","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":40,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"e2505634-d781-4bbd-af20-e390c0a04ed1","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":40,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"390869a6-f01b-41f4-8c9b-b732d9efe623","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":40,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"1dc740f5-f031-4088-9254-0df8782abaa6","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or conver tible securities commonly known to investors as","page_number":40,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"a05e3873-33da-4ed3-b8b1-93cad1eb0e19","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":40,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"8f13091e-8239-4c35-9423-fdeed7df45c2","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and oppor tunity","page_number":40,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"e54bc35c-64f2-4e1d-9233-3f5c47f21f25","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":40,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"9f39ce31-5735-4560-8cec-55cd3e54b983","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":40,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"60c2ea21-4b14-4c65-9dc7-d39613aa90ac","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":40,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"a0d5e06b-5346-4b91-b51e-96d993fadf50","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":40,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"05d063af-f8e7-4b00-989d-f0250ce1a003","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":40,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"398ecc82-3aed-4a5b-ac75-14b12424ac0a","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":40,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"2e9ed866-6ccc-4537-b071-fb57c89354ce","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":40,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"03791d27-373c-496c-b5ea-d636dece6657","block_type":"box","text":"risk than higher rated securities.","page_number":40,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"377b5554-9e5a-434f-ac0c-bacfacce71b6","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":40,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"c6ed30f7-f59f-425b-9d96-f1271f08cb26","block_type":"box","text":"•","page_number":40,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"955aef3d-19a7-4a4d-b9d8-add444cf1407","block_type":"box","text":"Junk bonds may be issued by less creditwor thy companies. These securities are vulnerable to adverse changes","page_number":40,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"31ac3e21-900b-48a8-894f-e6ff334ad0e4","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":40,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"2f66a237-bc3c-4f84-8904-85e6f531fecd","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":40,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"c6e3375a-7c6d-489e-98bf-1053a0c70518","block_type":"box","text":"unavailability of additional financing.","page_number":40,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"a33b4355-21e1-4ed9-9b05-8d71cca13ce3","block_type":"box","text":"•","page_number":40,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"6ab675fd-1761-41e7-ae87-3602a9418f26","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":40,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"fffe489c-6ae5-4854-8d17-b07eba15d1dc","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":40,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"3c3a3579-4db3-46a0-aa41-d9926bc5e329","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":40,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"311ba5c7-6bf7-4c5a-9029-aec11a699dad","block_type":"box","text":"II-10","page_number":40,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8401afca-cfef-490d-b3c4-95ba7594d0ec","block_type":"box","text":"NM0926U-5977728-40/232","page_number":40,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"9e77734a-f589-435b-b217-8bb586948ccb","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":41,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"c75f9f68-8fc9-48e1-bd23-4884fee7d247","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":41,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"f70fd95d-52ef-4c7b-8e01-98645b1c0a50","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"46eb8704-c19d-499d-a3d3-2d0abfaf097f","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":41,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"21a87053-5bae-491a-88f3-3c519ddad9d1","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":41,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"b6f7176e-b03b-45a0-a432-6056819cba09","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":41,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"6a70ea7d-0438-47a3-a39f-60d3d25b22d7","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":41,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"8fa429ec-838f-47e7-b234-d56923cee5b9","block_type":"box","text":"investors in higher rated securities.","page_number":41,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"7623b483-908a-4336-86a0-4bd753c914de","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"3c4dc15c-03d9-494c-b7af-ce32dbaa7192","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":41,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"33330798-067e-4555-80ca-b651a756af40","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":41,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"c1889171-dbd9-421c-b321-5ce6c9dc0f3a","block_type":"box","text":"lower yields and may lose income.","page_number":41,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"00d120b0-3403-4c8a-9c14-dabe7103c2da","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"6f5f23cd-9069-4255-a485-a2312994f546","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":41,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"3f1dd73a-048d-4136-9b39-b835b4e48406","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":41,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"4e2c9fd8-7649-40db-ab58-b47064f8ae9a","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"a63d5423-0218-4e59-8b1a-622cb1f3ffc4","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":41,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"37e99d69-14fb-49df-96de-eb38abdff490","block_type":"box","text":"Under cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield","page_number":41,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"744a50f0-3e33-4eb3-8d3d-6719e16f7bef","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":41,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"3984fd8b-50b2-4fcb-a561-8b05d007f411","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":41,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"3040f7cb-bbca-4b35-abb6-a14567d02957","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":41,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"ea042e8b-51d1-42e9-b288-026895b565c5","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing cer tain of a Fund’s por tfolio securities","page_number":41,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"5f6daa8a-00b4-4407-9e03-2842d52fed62","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":41,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"fc4ee807-8990-4b09-9215-37af26123991","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"2524b58a-bd70-4353-8117-bc4936b2f94a","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":41,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"694e705b-c12f-4c75-9c3e-09644aaf429f","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":41,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"93ba8788-b7ec-4664-927a-dfeaf10e3b60","block_type":"box","text":"par ticipants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":41,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"f9361faf-04bd-4381-967d-0ac00d9687aa","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":41,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"f03b01c6-3487-4e73-8825-9540b26a5057","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":41,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"51acd340-8409-46a2-bf86-6bab5c8dc2ce","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a par ticular issuer. Under","page_number":41,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"c364ffe7-0c18-4aa0-88f8-b41e1511d69f","block_type":"box","text":"cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield securities","page_number":41,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"34966d12-e118-4408-b281-331ff228d34e","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":41,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"b6be793a-683e-4f77-bcdb-51b8e5285bee","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the par ticular","page_number":41,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"b5c89e22-11a3-471b-9a7d-f601a934b68f","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":41,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"4d48516d-38a0-4c01-aceb-046e436051f5","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":41,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"1b240a53-1eaa-4ad8-9732-94d7faee2e16","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":41,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"c70e4d9b-d814-47e0-8968-ad1ff663ca75","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":41,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"98591ce7-04c0-4d57-8940-9710e9aaf335","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more impor tant","page_number":41,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"6760e615-9f68-4d8e-a452-d92b2a44fcca","block_type":"box","text":"role in determining such valuations.","page_number":41,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"1ef0bb14-35cd-43b4-8b9d-b79789f9eafe","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"bc45314f-004c-48e0-8d00-7675f763e48c","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":41,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"ba114f81-552f-4cc6-ad59-d697cd9ad235","block_type":"box","text":"a defaulting issuer.","page_number":41,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"a43d5f21-83fb-47f1-a89f-05236dda8bb4","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"1d5d6625-ca06-4a08-b120-a0c99cb7da2b","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":41,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"6399f517-7e2c-48dc-b272-b52f3939ebd9","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":41,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"9ee60cde-d7d9-401f-af20-bdb9482d1b75","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":41,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"1180df88-006e-45e3-9b80-c856a69a773b","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":41,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"1ab4e1f3-d903-43ee-ba52-50ec87f8fcb7","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":41,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"aaf31e26-227b-428c-ba39-4abafb9d7861","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":41,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"8ec9375b-b9e2-45b8-a519-f7a1f983a9a6","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by cer tain","page_number":41,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"02f13f18-4613-45b4-a94d-b25c01f7286e","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":41,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"791adce2-1761-4bfe-91cc-c56568715d45","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"499c23e8-67d3-4aae-8cd3-47e8635cb21d","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":41,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"973a3362-6473-4542-909a-1997af4931c6","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":41,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"abf78454-cffb-4fe7-904f-84288ff7d1af","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":41,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"2a888f49-76d8-4f39-a3af-ff3adf9abb1f","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser per forms its own analysis of the","page_number":41,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"2cf99032-d4b4-47bd-96e9-0f5dd788c4fe","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s per formance may","page_number":41,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"21c16f15-f3fa-4f5a-a949-3fe76cdc5d0a","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":41,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"8bff12a9-a921-455d-a66d-82cf8712db9a","block_type":"box","text":"higher-rated securities.","page_number":41,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"2040d88c-ac5c-4a37-be2e-cf0d15b9d826","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":41,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"7f1722eb-3923-482b-92e8-84b2faee2688","block_type":"box","text":"relating to the creditwor thiness of issuers, the ratings and per formance of the securities, the protections afforded","page_number":41,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"178808fd-1c85-454b-b669-759698706a87","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":41,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"1fceb133-b2bc-468a-bc79-9ce74e8ada2c","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":41,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"db2e4876-a77d-4505-9c3b-889a40024796","block_type":"box","text":"II-11","page_number":41,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2f992d0d-0826-4a8e-b650-dc985d74986c","block_type":"box","text":"NM0926U-5977728-41/232","page_number":41,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"dba70e46-ac14-4024-9bd8-ecc664ec4dec","block_type":"box","text":"well as in an effor t to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":42,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"2c8a3e89-b59a-4d0f-b532-7b763b0420a9","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":42,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"62110672-7d7d-4c57-8ba1-6eb3b2e9f52d","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":42,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"30e43b04-5985-47bf-bbe0-f47b6125a535","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":42,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"ded40287-4f76-4614-af29-6a4098afff57","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":42,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"6173ea7d-a1ad-4374-8355-ee6219f3caa8","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":42,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"6a39ee6c-49b8-4360-901d-fdb3161e850a","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":42,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"3658faa6-3658-4b15-8035-c678d6ddf90b","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":42,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"46ce98dd-5266-49f0-b6a6-bc21050697c4","block_type":"box","text":"Mezzanine Investments.","page_number":42,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"034efaf7-cf3e-45f6-9bec-bc4a27fc427f","block_type":"box","text":"Cer tain Funds, consistent with their restrictions on investing in securities of a specific","page_number":42,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"6b928bf3-4fd3-4127-9d86-65c42d65607d","block_type":"box","text":"credit quality, may invest in cer tain high yield securities known as mezzanine investments, which are subordinated","page_number":42,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"e388016a-c477-4b17-a305-7375c3295a81","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":42,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"ebbf063a-a873-4689-bb33-21e6809cf540","block_type":"box","text":"e.g.","page_number":42,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"48d0b7c9-b400-4b81-b239-2357081f030f","block_type":"box","text":", with","page_number":42,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"1c6b55e0-4dfb-42ce-851e-6d827da2e21e","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":42,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"0de35c44-aa87-4176-b80e-9e3ae4fe70d2","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":42,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"69298207-191c-46bc-aff1-2a898e0f4784","block_type":"box","text":"life is significantly shor ter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":42,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"dc2950a3-2a7f-4e1d-aeaf-cfac672f053c","block_type":"box","text":"other obligations of the issuer.","page_number":42,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"a8307bef-4c39-49a9-81fa-1b0f413a500b","block_type":"box","text":"Pay-in-kind Bonds.","page_number":42,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"82a74e0c-df84-405e-8825-507bcce49834","block_type":"box","text":"Cer tain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":42,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"2a56ea47-8eee-4517-a1c8-aa35b8fd0c57","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":42,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"f9a188f8-837f-4b81-b8cf-c9a3f3a64c25","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":42,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"6c6df377-5b2f-4279-a407-20683857efc5","block_type":"box","text":"unless a por tion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":42,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"ee6c2e67-eac8-4eca-8d2f-3b8d4efd5f4c","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":42,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"8e1a117f-06d0-4fc2-8764-f9476664db3d","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":42,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"76e1e634-1845-45ac-bbc4-a98fc74aa51b","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":42,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"73c8d963-fad8-46e2-9b23-f7ac874fc099","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":42,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"e1e7a3dd-ecaf-48aa-8d31-83dc70da8bf2","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":42,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"2009740a-4b50-4302-9ae9-1494f150d0f4","block_type":"box","text":"securities and may have to dispose of por tfolio securities under disadvantageous circumstances in order to generate","page_number":42,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"d76fc66a-6445-49d5-b953-b001682a0772","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":42,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"58959917-6a30-4784-903e-1b1e1f60c449","block_type":"box","text":"Supranational Entities.","page_number":42,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"cc0bc169-ddb7-4e69-9e24-e35df0ff3367","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":42,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"2ba28c17-2bce-4e7d-be65-f973badfcc1b","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":42,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"f32355a6-56a0-4b1b-9204-411dff2a1343","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":42,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"2bdc2592-c844-442e-86f7-d6ff5ae8aae0","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":42,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"71861e53-8baf-4a07-b265-43478eeccca3","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":42,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"ae096356-5583-4620-91a7-9fd163acfabb","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":42,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"66752f82-d01c-4f61-a1fa-3c2e84702322","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":42,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"cd6f07c6-5a6b-4732-a94a-fb3de762ecd4","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":42,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"c65e0025-2ebd-40d8-9449-ee1a1e801233","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":42,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"6d92d2ce-1eac-4d77-8723-78c5ff76a66b","block_type":"box","text":"Cer tain Funds may invest in the securities of foreign issuers in","page_number":42,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"cb59d744-622f-400c-9eb4-8c9c840a0e2c","block_type":"box","text":"the form of Depositary Receipts or other securities conver tible into securities of foreign issuers. Depositary Receipts","page_number":42,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"00e851c5-a3fb-44e6-a085-0a26ef40bc20","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":42,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"fe1843cb-a956-407d-adc2-d7b6fc0b561d","block_type":"box","text":"conver ted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":42,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"b72923fe-c50a-4c77-a70c-7cb23b9fe6b9","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":42,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"087bc5f9-31b8-482e-99bb-41d9948614ac","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":42,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"6cdfb4ad-d295-4ec9-99f3-1b9a48903d4d","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":42,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"3a617a62-07c1-41f8-961b-13a0edb268b9","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":42,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"538d80e9-d7be-40a6-80ce-507d1069bce4","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":42,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"9ccf023c-34d9-4f9b-b5df-1eed6b5c78f6","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":42,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"ae4988e7-9acf-48a8-95ef-616acb30f40f","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":42,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"42b7884c-8fc1-492c-9f34-768812e575c2","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other par ties with whom the depository bank","page_number":42,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"2c5378d4-36db-4fe9-b30a-f2db408b8e4b","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":42,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"1d168e50-d37f-44b4-9080-52b495933d52","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":42,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"f1d50f74-36b4-4e79-9545-483b041b8b7b","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":42,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"2129ecec-09bd-4c44-9bac-293b04861553","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":42,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"634ad376-bf42-4311-9155-045b627540e4","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":42,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"097a956b-9b6e-478c-a567-78c35b059322","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":42,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"ccf03d94-59ee-4daf-bcaf-f2ee85c49f03","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":42,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"3d9c79e7-69c9-464a-b795-478be960cb75","block_type":"box","text":"into which they may be conver ted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":42,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"63fc83e7-13b9-4733-9882-6ba3d6c5625d","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":42,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"04c646b1-d91e-499b-9efc-b4d26ae35956","block_type":"box","text":"II-12","page_number":42,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"932cace7-13a4-4bb8-be12-5edfaf541814","block_type":"box","text":"NM0926U-5977728-42/232","page_number":42,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8412f6e9-8343-4b99-a829-11716701306b","block_type":"box","text":"Derivatives.","page_number":43,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"c88acc09-e0b1-40a7-83c9-f31b3a878b4e","block_type":"box","text":"General.","page_number":43,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"1bb3cea9-0293-4c38-a4cb-5fc1a6b40272","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":43,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"4cc04fbb-2f76-4c82-accd-4178e83514c6","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":43,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"495e43fe-1a47-48bb-9091-16b803e13bcb","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":43,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"55b54e37-c17c-4eee-9522-d23f5409fdad","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":43,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"5f765a64-0863-4cfd-be12-7381a7841dbd","block_type":"box","text":"efficiently than with other transactions. Cer tain Funds may use derivatives to maintain a por tion of their long and","page_number":43,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"41b87d11-ba53-45e2-8304-01b262dadc1d","block_type":"box","text":"shor t positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":43,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"591a5aa0-fbb9-4f56-b4f8-5ddad321e71f","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":43,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"9d4c2ebe-4ddd-4c6a-9b16-abc51807e71b","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":43,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"5940076c-3ba7-4332-b01b-559d1c013a0c","block_type":"box","text":"i.e.","page_number":43,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"fc7d972f-7d3d-4f9e-b407-0dddacdb2e8e","block_type":"box","text":", the payment","page_number":43,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"1dc5c6ce-b995-4d46-8d0f-a8f3275192ff","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":43,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"e98227d9-b0a8-40a6-9996-7802f3ed93aa","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":43,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"e52d6bb5-d248-49cc-87d2-2406dcc2183e","block_type":"box","text":"Hedging.","page_number":43,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"d86648bf-4be0-42cd-b0fb-6060c8e94547","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":43,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"2d2e0458-927f-49ca-8e29-4e930465ca50","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":43,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"a0d1daa1-6da9-428b-bafa-0cae2feadaec","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":43,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"4294d709-6f97-4517-a5f8-90a5f479f6bf","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":43,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"0f08e459-3ef3-480e-8222-e6527c954c81","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":43,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"d5c4fce2-0518-4f3f-ab0b-2803ebbe91b7","block_type":"box","text":"correlation risk,","page_number":43,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"4ca5ee05-aad5-415d-ab42-24aa0a6de17c","block_type":"box","text":"i.e.","page_number":43,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"c1f8ca23-7dca-41c0-bc2e-a3961275429d","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":43,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"dcac35c2-08c9-46f6-b417-8f627cb4c3bb","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":43,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"0e4db1b6-3f28-4eda-bcf8-0ec4f72a8355","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":43,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"64c6a467-5479-463a-8b1a-5f3d92c051cb","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":43,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"addd7880-ddb2-49cc-aa68-e371b78aa340","block_type":"box","text":"Speculation.","page_number":43,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"6db2976b-f3b8-4147-a71d-d34a4e0656e7","block_type":"box","text":"Cer tain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":43,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"e5e34f54-4ee5-476e-8cd5-2d3ff3689e98","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":43,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"ed523ced-e827-4e00-9032-7dad7f0c4766","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":43,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"d56dd90a-f867-4841-9a86-e99b30437f5f","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":43,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"44aa1b00-1404-4bd1-b9b5-623e7702f66d","block_type":"box","text":"in cer tain cases may be unlimited.","page_number":43,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"d4e6cce2-4c1c-4e31-a6d4-eceb59d84982","block_type":"box","text":"Regulation of Derivatives.","page_number":43,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"7a3d8799-1456-45da-98d8-8019b858e0f7","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":43,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"82e25ba3-86ca-4b9b-9ea5-72464705f37b","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":43,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"f22596f8-18a3-440b-8adb-53c67b91984d","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and cer tain other transactions notwithstanding the restrictions","page_number":43,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"24debb25-ba84-4a08-9789-477de25f47d0","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":43,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"e9900beb-c471-4a4b-937a-307ec4db83d2","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":43,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"3c3f9471-6bf0-4a1b-8119-fa75ec766a0c","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":43,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"ec657c22-6ec2-4e9a-9f0d-98cf7fa95313","block_type":"box","text":"coverage”).","page_number":43,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"b2056a47-2092-4792-91f1-49aab8ac2ac6","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":43,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"27a6ebdf-7f34-47c7-b9ef-de6a38ad81e3","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":43,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"76898e1d-0f67-4211-a647-c920612a1110","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":43,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"d1c7ca51-d40d-43c5-b791-27854ccc300d","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":43,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"66bdbb64-2375-4109-95ef-7a6d4d9585c1","block_type":"box","text":"settlement payment or otherwise; (2) any shor t sale borrowing; (3) reverse repurchase agreements and similar","page_number":43,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"0134d1ad-2d6f-4142-81f0-8987757ae1b8","block_type":"box","text":"financing transactions (","page_number":43,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"c76abfb6-3a4d-4f42-9f81-c656ba170a74","block_type":"box","text":"e.g.","page_number":43,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"0f659b16-6341-462f-b022-aaa65e0869ec","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":43,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"e6859f88-c096-49dd-ae6b-eae4366feae6","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":43,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"3dcfd940-3c6f-41f4-96e6-c1997e41987d","block_type":"box","text":"securities (","page_number":43,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"5e8989d8-6a5b-41c8-a752-7a1648ee8972","block_type":"box","text":"e.g.","page_number":43,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"96f2f215-d088-4a00-ade9-74c6f954d79c","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":43,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"0824d359-3561-4e99-94c1-66edc51e7ace","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":43,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"83f0a603-e64b-4e5e-928e-20c59163eb35","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":43,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"8f68fd8b-8f98-4003-bab3-0ee87f51ef99","block_type":"box","text":"Commitments”).","page_number":43,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"8082c3bb-90ce-4f05-b193-5ed264b4b526","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":43,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"bb393c2e-0d89-48ac-b949-890a573ce101","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":43,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"32221ace-2914-4113-94dd-92392be7b6ad","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":43,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"7c3929ab-5ffa-4e25-ba58-4f6e1eb95120","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":43,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"82e39d8b-cd84-45ea-bb5c-58d671a89612","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":43,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"a7cfa3fe-48f5-4933-b595-81b0c5cde122","block_type":"box","text":"and periodically reviews the DRMP and repor ts to the Fund’s Board.","page_number":43,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"9338ffd6-d155-4686-8ce5-758de000a2c3","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and cer tain other requirements if a Fund’s","page_number":43,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"aa30a011-76cc-40e9-94bf-220db608709a","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":43,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"818ad0c5-593f-413b-9699-81545886af12","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":43,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"a96c1646-98de-48e4-a7de-b147e55b2313","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":43,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"9bacd83a-95ba-4a1d-8317-3bf4a112e070","block_type":"box","text":"II-13","page_number":43,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f7687fa0-a52b-4972-b782-67d77f2ed9dc","block_type":"box","text":"NM0926U-5977728-43/232","page_number":43,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ba2256d9-b65f-48ee-af07-3460b2815376","block_type":"box","text":"Dodd-Frank Regulations.","page_number":44,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"fd48dd77-43e1-4a28-aa3d-23533c571bb9","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":44,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"c5873891-7c22-4139-baa2-b6697bc5e921","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":44,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"60d8554f-9984-4ddf-b64f-e20f69161a93","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":44,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"5d2137f5-8b4f-49e1-bf4c-593cee0990bf","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, cer tain regulations have only recently become effective and","page_number":44,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"8601473f-6239-4ba3-89a6-f06db443defc","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncer tain.","page_number":44,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"1021c4b7-dbd2-4ff1-bf52-f11f2ca40cb0","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":44,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"938d72bf-10e7-4379-afdf-a2baad69b893","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":44,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"6f54e0a2-7903-4cfc-baee-398e25e2f656","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, repor ting, transparency, position limits,","page_number":44,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"8231ddd5-dde0-4b53-8111-eeba3a0c668e","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":44,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"cb238f89-f127-4149-b24b-269cab1e5fe0","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":44,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"7032b21a-6b92-4e4b-806b-b2fe57d28478","block_type":"box","text":"The CFTC requires that cer tain interest rate swaps and cer tain credit default swaps must be executed in","page_number":44,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"60a9cd44-6a30-4270-8125-3697f482c933","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":44,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"f3414195-4c96-4226-b682-931115e0202b","block_type":"box","text":"similar requirements on cer tain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":44,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"77aaeee6-0e1f-467a-ab34-c3c04ad80605","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":44,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"85e6de22-e1e4-4c3c-bf8b-98f712124b00","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":44,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"4230e6f5-d295-4909-b0b6-bc8a8ca61deb","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":44,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"24319de9-26fd-44c9-9d23-85d9f1ffa1ef","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":44,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"af3c39ee-9aae-4552-87ec-5170894a86fa","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":44,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"5194a609-7041-4805-be76-6792caf7d073","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":44,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"1b356abc-dbc2-44cc-a6a9-90d720f76a3f","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering cer tain investment strategies impossible or","page_number":44,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"7487b13d-7474-4a37-a4f6-04201dffbe0f","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":44,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"ee813fac-aa53-435f-838f-1383058f88e8","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":44,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"93ecc101-205e-4145-b47d-61a0643b5870","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":44,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"eed78171-09e5-43b0-ab17-82279a5e94f8","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":44,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"4598813c-58f1-41bf-b4bf-23fcad02c755","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":44,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"7539e020-7d2d-4a8d-acf0-09e9aae4209f","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":44,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"dc12775d-9f7a-457f-8902-413057fc85c0","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":44,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"8be0467d-b7d0-4ca2-b5f8-ffdf45f16ce3","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":44,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"c08f8b7a-383c-4ba7-a0d5-abd40225d790","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":44,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"8ec5ad38-b88e-44ef-8fae-4876333e932c","block_type":"box","text":"member.","page_number":44,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"f0619d09-73a4-4bbf-8285-c4ff14595708","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":44,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"3503c3d5-1f8c-465c-b746-203b6cc3c225","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":44,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"b88b8cd7-c2e7-4d5c-abe6-db61bdcb2922","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":44,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"9f0d6526-029e-46e3-b784-7ef802027df2","block_type":"box","text":"margin in excess of clearinghouse requirements, and cer tain clearinghouses may share a por tion of their earnings on","page_number":44,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"04a7ae4c-ae8c-4506-97c2-3329aaec7c34","block_type":"box","text":"initial margin with their clearing members, some por tion of the initial margin that is passed through to the","page_number":44,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"6df62178-8546-4022-b891-101e31f5a800","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":44,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"55b3d80d-c34d-457e-a152-b8e3eb346ea7","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":44,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"05043563-7049-416f-adbb-9a91ce6f7e25","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":44,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"af0a6c1d-ac35-4cd7-9acb-0557cbd75984","block_type":"box","text":"provide for non-cleared OTC derivatives. Fur thermore, customers, including the Funds, are subject to additional fees","page_number":44,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"adeef82b-183d-4359-bdb2-bcb84dd9b648","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":44,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"f13f49f0-4aee-4ec6-ab82-de013d7b0f86","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":44,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"f8b07dec-87f8-4e30-a63f-e808b501afda","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":44,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"baa56bb7-f2b9-43f9-a3ac-16329a2c423b","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":44,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"4e88e9c7-970a-4e11-bce0-206bdf1294ff","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":44,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"cf7dc261-1c9f-4edf-af9b-75dde9983393","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than cer tain","page_number":44,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"464566eb-c141-455e-ac5a-99023342bb2e","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":44,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"7b7f5cb8-b4ce-4a96-9ca8-20367066bd27","block_type":"box","text":"The CFTC, cer tain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":44,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"b1eba03b-9748-40b4-9f0e-a77115321d9a","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":44,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"72fe2441-181c-4381-b5e6-0ac4cc36d31b","block_type":"box","text":"group of persons acting in concer t, may hold or control in par ticular contracts. In addition, U.S. federal position limits","page_number":44,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"d2f9219d-647d-431b-9c20-f51b7c89c64b","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on cer tain agricultural, metals and energy","page_number":44,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"77615a16-b095-4633-a3b5-df0f9fd2024d","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":44,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"2639ba6d-dd06-411d-a711-40ca528ac97f","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":44,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"badafd8a-d291-4b51-93eb-df24b0edc978","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":44,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"630b292d-de54-4760-89d7-accf7bbea439","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":44,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"3ca890cc-bb1c-4f43-8a43-a0f6b2a8d525","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":44,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"303e400a-0509-4cc3-ae95-90ed624929e4","block_type":"box","text":"II-14","page_number":44,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a35b7a8c-835d-4777-a6e5-1616e4c13ef5","block_type":"box","text":"NM0926U-5977728-44/232","page_number":44,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"dc24ff95-28d1-4e91-ac99-57b8aadcb1b6","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":45,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"63b226a4-bf73-4d71-b062-5e7cbbd81115","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":45,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"6228e483-b3c2-4bc2-b074-b3c4ebd96a4c","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":45,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"86de327b-8dd2-4aa5-a934-6c404829addb","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":45,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"155fda65-2d65-41f1-9113-a98c6fe0cc71","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":45,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"291684fb-786e-4d2d-aff3-1e399d5d218a","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":45,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"f6c14fdf-dac8-4053-8add-a0f10152dc3e","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":45,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"4bc92cda-429b-4a63-a85e-806daf7cccff","block_type":"box","text":"par ticipating in, or otherwise adversely impact the liquidity of, par ticipating in the commodities markets. For example,","page_number":45,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"1824c417-ec2c-4125-be36-f7ff6d3f5adb","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced cer tain","page_number":45,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"4e352c56-f863-4a55-97a9-78307db30783","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":45,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"cbd49b4b-c8ee-4b3e-b7bd-45729c856372","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":45,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"b907344e-6888-48ca-879a-9770fbcb4f53","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) repor ting and recordkeeping","page_number":45,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"b7d1936c-671c-44c6-9b62-9952b2de4a5c","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of fur ther example, the European Union Markets in","page_number":45,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"b8c5eebd-d3dd-4c2e-ac0d-682e7460282d","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":45,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"8210fc11-3c76-4c0b-8634-bb5271c0430e","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":45,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"8b5aa67a-98c5-49f0-a9f3-88ffaa147bc2","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":45,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"429bc13d-3265-421a-b4d7-5a6089ca167e","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In par ticular, MiFID II requires European Union","page_number":45,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"efdfe3ab-6fa8-46a4-8852-e47dcc83c2fd","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":45,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"e9c73401-1813-48de-aff3-ab01a59b2071","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":45,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"76daab7d-01f8-4887-aaa1-114aff937965","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":45,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"0ac7c6d6-e7ce-415c-bf82-414a5d199d49","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require cer tain prudentially","page_number":45,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"4ae8d30d-6bc7-4028-a5b7-4453ede3d5fa","block_type":"box","text":"regulated entities and cer tain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":45,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"70b293cf-d70d-40ac-8091-a2c155c299ce","block_type":"box","text":"derivatives contracts and cer tain other financial contracts, terms that delay or restrict the rights of counterpar ties","page_number":45,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"d119ec51-34a1-4d10-bc77-dc4b7a96c4f4","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":45,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"ffd7e869-4acb-48c2-b8d2-f0e45fad8cf3","block_type":"box","text":"transfers of credit suppor t in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":45,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"2bd20e08-f19a-40fe-a482-362168fa34eb","block_type":"box","text":"cer tain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":45,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"d84d5500-21eb-46f6-aba1-45f04bb38f67","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterpar ties located in those jurisdictions. In par ticular, in the United","page_number":45,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"86e6f024-72dc-453f-8884-b8e3f2fe629a","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or conver t to equity the liabilities","page_number":45,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"737403a2-fe78-400f-9afd-1bab01d650df","block_type":"box","text":"to a Fund of a counterpar ty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":45,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"28ae44e6-f283-4530-9170-5d5c37bf51ab","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":45,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"170c5fea-37c9-4cd6-bc8a-00a0b45ae6a3","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":45,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"d3601b21-a59b-4fbc-821c-ead334af8baa","block_type":"box","text":"collateral received under such contracts.","page_number":45,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"25ed5748-36c4-4b67-9506-b0ea8d90c40c","block_type":"box","text":"Risk Factors in Derivatives.","page_number":45,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"4fae972c-3574-4d8c-acff-4a6a7382c87e","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":45,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"6699fe4b-02de-40ef-9905-c6d3913099b5","block_type":"box","text":"Correlation Risk","page_number":45,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"37f5695c-6b37-41dc-898c-3c587fd26301","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":45,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"2785f848-ea6b-4233-95b6-6b491045cb4f","block_type":"box","text":"the por tfolio holdings that are being hedged or of the par ticular market or security to which the Fund seeks exposure.","page_number":45,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"f141433d-253e-4da5-9665-825440c1b75e","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":45,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"1ae37e9d-0483-494e-b244-93c3f5bedaf4","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":45,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"3916496c-1318-46cb-bf02-a5d0104208e2","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":45,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"4f629b89-e45e-4ea9-a946-988222143ec7","block_type":"box","text":"Counterpar ty Risk","page_number":45,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"bdb8900d-f942-442b-8572-8b09fb0bac66","block_type":"box","text":"— the risk that a derivatives transaction counterpar ty will be unable or unwilling to make","page_number":45,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"75d0fdc4-9cb4-4d77-9c5f-9cea90235d5b","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":45,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"756d0408-d4f6-4e50-ac11-223edb411fa3","block_type":"box","text":"a counterpar ty. In par ticular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":45,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"41de2bf2-ba0f-4902-9b0d-30fd288510db","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":45,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"c7b73d4d-df4d-4946-8e97-e4ee09f7b3fc","block_type":"box","text":"instruments or has deposited collateral with its counterpar ties the Fund is at risk that its counterpar ties will become","page_number":45,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"76692d4c-4ef5-4a58-a230-aa388f81b9d3","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterpar ty risk by","page_number":45,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"5cab19c2-3c3a-4ec9-8db9-682ef7876805","block_type":"box","text":"engaging in OTC derivatives transactions only with creditwor thy entities that have substantial capital or that have","page_number":45,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"9fc4f656-7583-4771-9dd0-d60bcdbb75f1","block_type":"box","text":"provided the Fund with a third-par ty guaranty or other credit suppor t. When a Fund enters into a derivatives","page_number":45,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"dbdf7027-1cff-4ef8-8216-a7712bc6f867","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":45,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"01b25dfe-dcb0-4753-a2d9-31bbe413022a","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market par ticipants","page_number":45,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"508caf71-e2e4-4292-93d9-b98e49bf01c7","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":45,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"b4e70a9a-2ac2-4044-b7d5-1eb28e58a0ac","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":45,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"01bcc8a5-c293-460b-9aa3-fa02389f9654","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":45,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"9fa06947-f36a-41f0-80fd-939f45bb330b","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":45,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"b68ba7bc-4fc8-44eb-b421-35c0f13b88eb","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":45,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"7079d58a-bd60-4e53-bf12-20e8ed752c40","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":45,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"3e937029-4735-43f8-9c92-c7ca529d1cd9","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":45,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"17b64367-d067-461c-a3c5-e5446c0ecf05","block_type":"box","text":"II-15","page_number":45,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"97b0bd30-f279-43a1-8ca8-672f9201cba6","block_type":"box","text":"NM0926U-5977728-45/232","page_number":45,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6bb0b5c0-d3e9-4f12-adda-fb5037c7c464","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":46,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"78c43df4-34a8-44d8-90ba-a7d31d1ea452","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":46,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"bde1a3d2-4995-4b1a-a9f6-1378f0e0bcba","block_type":"box","text":"by the clearing member.","page_number":46,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"949232b2-a92a-499a-89f6-f3e988fe2543","block_type":"box","text":"Credit Risk","page_number":46,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"6bf9c710-4666-4e94-a7c4-a6472b1651b8","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":46,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"454de592-b975-4b14-8a2f-488f7b854d46","block_type":"box","text":"honor its financial obligations.","page_number":46,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"fad2de55-0e9d-4b3f-bb59-0f5501502ac1","block_type":"box","text":"Currency Risk","page_number":46,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"8868fbc6-ccdb-4c6d-8d5a-4e3d6446bb59","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":46,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"7a58e74f-7e74-4d2f-95e6-a0d5e8fd2ce2","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":46,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"f8660b4c-ccf9-4c3d-9153-81ae68b5d3cd","block_type":"box","text":"Illiquidity Risk","page_number":46,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"e3b7fd44-01dc-4ffd-80f8-a026e2c66456","block_type":"box","text":"— the risk that cer tain securities or instruments may be difficult or impossible to sell at the time","page_number":46,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"38ff9057-afb0-47a5-919a-21edd559a08e","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":46,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"2a250016-4154-408a-a914-4a0df7880c0a","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":46,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"4ee4e9a5-1c1b-46e2-9630-ace6d023c65b","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":46,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"879cf465-5b22-4303-b6ba-eb3ced7c961e","block_type":"box","text":"incurring substantial losses (if at all). Cer tain OTC derivatives, including swaps and OTC options, involve substantial","page_number":46,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"4962d959-53de-4293-91cc-cd0255c87941","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascer tain a market value for such derivatives. A","page_number":46,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"1e77e0f2-2305-4be4-a9c0-6c12d04071c9","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":46,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"dd37bb59-f998-478b-8d22-06b00d9a198c","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":46,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"b51ddefd-e040-4411-b4e9-f4e07d2223d3","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":46,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"c8ab9721-0c93-4b3d-9967-43ac496612e8","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":46,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"162fb9be-063c-45a8-b59e-ccb479ea59e9","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":46,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"70a43591-e7d1-4a2c-b1b8-d4d39b5ee56d","block_type":"box","text":"the par ticipation of speculators, government regulation and intervention, and technical and operational or system","page_number":46,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"254902c5-619b-42a2-8c50-4efb89318cfb","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":46,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"4af31d3e-fc27-4849-bf13-45a1c6bec202","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":46,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"7d0bd8a8-17ea-41ca-a666-75bf4a64dd26","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":46,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"a8f5d958-39be-4dc0-b60f-0c4056d5d9c0","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":46,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"e84f97dd-ed3d-4c99-841b-8c8c6932e818","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":46,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"b37a35a9-4627-48af-9111-a9ae5b1ff858","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":46,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"6ef7f3d4-f856-420f-ba54-cf9e78e9b848","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":46,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"1ace6bce-e5f3-4bd7-bb2e-2a1857311af1","block_type":"box","text":"insufficient cash, it may have to sell por tfolio securities to meet daily variation margin requirements at a time when it","page_number":46,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"ae22df20-72ad-4a79-a412-44b4a0169ede","block_type":"box","text":"may be disadvantageous to do so.","page_number":46,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"d33c773d-6321-4f95-bffd-5e849c98e891","block_type":"box","text":"Index Risk","page_number":46,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"7c74064b-31a6-4e7c-a9b4-498b8ba63bec","block_type":"box","text":"— if the derivative is linked to the per formance of an index, it will be subject to the risks associated","page_number":46,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"9c194799-da07-42b6-a328-67166079a2cd","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":46,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"1320deff-004d-48ab-a536-afd686cb43c4","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":46,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"dfa9f6a1-e893-4e9b-a929-b06191be4179","block_type":"box","text":"Legal Risk","page_number":46,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"cb30af21-85cf-4501-9b99-d922102f1550","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterpar ty, or legality","page_number":46,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"2e83f7f6-db40-4c0e-8ee6-ff0064123d92","block_type":"box","text":"or enforceability of a contract.","page_number":46,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"dcb6d75e-b841-43c6-aee8-a3d48aa82913","block_type":"box","text":"Leverage Risk","page_number":46,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"dfe39d75-6fc2-4d3d-b75c-81df137f4a4c","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":46,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"6d3fe8ca-c2f3-4c54-b5e2-a00ec0f215de","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":46,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"2a721760-939d-498f-827c-03eca3ba8b85","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":46,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"5f86d399-6748-4498-aeb5-8f72ff955cc6","block_type":"box","text":"Market Risk","page_number":46,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"1cc9f6a9-4066-436b-bcba-3a462ce89110","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":46,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"c45783ec-afdb-4960-8f0c-59659492b197","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":46,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"f5d9c984-cf1f-4fc4-9f6d-0d5c77a6a5be","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":46,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"81184deb-ae45-49ea-af25-34c9002ed951","block_type":"box","text":"affected.","page_number":46,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"7edd5336-0773-4045-83e8-3087d109bdd4","block_type":"box","text":"Operational Risk","page_number":46,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"40c7d193-c16f-4964-9680-128fc44d814e","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":46,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"810ee1d5-d417-4320-a9d4-11bfca1b2588","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":46,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"5386442c-b180-4dd0-8edd-3190a46b1fd0","block_type":"box","text":"Valuation Risk","page_number":46,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"f69f5750-750b-4af2-97e0-9d6fc9934017","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":46,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"d080f51a-ca25-4570-b295-f488628f5bce","block_type":"box","text":"possible especially in times of market distress, since many market par ticipants may be reluctant to purchase","page_number":46,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"584a1357-f4bc-4be0-b514-1f193b12c96c","block_type":"box","text":"complex instruments or quote prices for them.","page_number":46,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"1d0729b8-1115-400b-b77a-68a9a076fe13","block_type":"box","text":"Volatility Risk","page_number":46,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"2f9c949b-07fe-4d48-b806-69f9efedf11a","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a shor t time period.","page_number":46,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"da392ebc-a834-4d39-820d-a6f563b9b03e","block_type":"box","text":"Types of Derivatives Transactions.","page_number":46,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"99ead18c-572e-4036-9f11-b0c46cbc5562","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":46,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"497163aa-fe8d-4ece-8b6b-fc4fff552c2e","block_type":"box","text":"including the following:","page_number":46,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"b9735708-944d-49e8-9996-c1fedece8181","block_type":"box","text":"Futures.","page_number":46,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"7e57df7d-38cb-4a7f-941f-0eb53cc5974d","block_type":"box","text":"II-16","page_number":46,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0cd70e9b-ad23-478b-a46a-88dcbd6fb64d","block_type":"box","text":"NM0926U-5977728-46/232","page_number":46,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a06b3e08-d908-4c3c-977e-8cad2a1ca47e","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":47,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"f8fa6a9d-a896-49d7-baef-20f8ad361add","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":47,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"d72bd32f-f396-4b13-bf70-636b7f384676","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":47,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"5e2f9f2c-1b5a-4acb-8337-e7f3cd7d0ec0","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":47,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"95130b79-dfb4-4664-ad1a-3b8d147c1b24","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":47,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"e2cd50ee-b0f6-46d0-80c9-a5ea1bf361be","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":47,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"94f576c5-9c41-4378-ade0-20b1e448b9ec","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":47,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"26f53999-1ad5-4c05-a849-6556d9e8069b","block_type":"box","text":"market value of por tfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":47,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"51c7dab6-635e-42f2-8a96-0da69e187cb2","block_type":"box","text":"por tfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":47,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"c10e2f17-e3b5-466a-9993-89eb9805585f","block_type":"box","text":"the futures position and a lower return on the por tfolio holdings than would have been realized without the purchase","page_number":47,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"d235f7b4-0f55-406a-9770-d1ba5f141525","block_type":"box","text":"of the futures contract.","page_number":47,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"fc5d30d1-20d9-4748-99d9-92bb0cf9913b","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":47,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"b0d17673-4b0b-4d5b-b5aa-1ca44d3f5c93","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":47,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"857592e6-0fee-4f7d-81e7-5539e8445778","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":47,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"c9487d40-ba2b-4bc8-b4d1-05ad7e90ae60","block_type":"box","text":"relating to the futures position.","page_number":47,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"c519808c-3e4f-4e38-891d-4a7f6977f17b","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":47,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"9c99825a-cb7a-4c9e-a9a2-424f0a78cada","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":47,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"93e2cfaa-da0d-4c85-b6c5-e6886dd78ae2","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":47,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"c9f4bbfe-3e70-4909-8327-4a10d38c80a4","block_type":"box","text":"Regulations” above.","page_number":47,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"7d90370c-76a4-4103-b8ed-a9c7c55327c8","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":47,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"93095d26-5aeb-40cc-a41f-ba965fdf9da3","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":47,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"3cbd1076-7430-4cf1-ad54-6824989fd5ba","block_type":"box","text":"(","page_number":47,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"836afab7-3ba9-4e78-9ff2-9bb4cd1f8743","block_type":"box","text":"i.e.","page_number":47,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"f4a08536-a56b-4440-971e-bdb03fa791bd","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":47,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"a37b0a51-fdae-4249-81ac-21a63601d402","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":47,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"dab5ee42-2f21-44bd-949d-d57dfb30115d","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":47,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"20590f8e-8315-40e7-a608-57267858248a","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":47,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"789af440-261f-49c3-a949-3c0452ff1d56","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":47,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"ca5a9743-0796-419e-a258-40c233bd5061","block_type":"box","text":"Fund intends to purchase.","page_number":47,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"8adfe7aa-45aa-4403-bf9d-61d57c2f5fb1","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":47,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"d11f7c39-ff80-4e13-bc6e-20630953ed88","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":47,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"82fdc769-4ff7-4138-a11e-1e9ccd93e0ae","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":47,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"de2ee8bc-cf99-4aa9-a494-14045a2d068c","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":47,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"ed442a23-6c0a-4a7f-86de-8b00969df7a0","block_type":"box","text":"illiquidity.","page_number":47,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"38122485-2df9-455f-97c2-5f44da898e7b","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":47,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"d8554ef4-896c-48d6-a075-8c9cc6e09c59","block_type":"box","text":"illiquidity risk, market risk and counterpar ty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":47,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"a07235ea-5ee1-446f-8d16-c1a68639111d","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":47,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"775ba29d-06a1-4a4e-99c6-5939f4f69c24","block_type":"box","text":"Cer tain Funds may invest in futures based on carbon “allowances.” Under cer tain regulatory regimes, a limit is","page_number":47,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"c7d23c77-44da-45cb-bac2-668c3d374d57","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":47,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"ac944d50-ed95-4b2a-a50f-315dec809568","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":47,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"eef77ed9-da58-44d2-ac1d-0705626e8876","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":47,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"74ba6a2c-c4f3-4e72-a97c-18004fba57d0","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":47,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"9fbac50e-e551-4f1c-805c-7a426363345a","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":47,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"fd182e1b-d7be-4de2-aefa-09839421e256","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":47,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"4d675a31-5f45-4c0a-b182-61eafef5d478","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":47,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"6768d29d-73d5-4478-bdfc-4fb0637ab457","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":47,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"1523a232-c8c3-4f7d-b84b-23e836013479","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":47,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"1bea4341-6985-4f4c-8fd0-5c063e395998","block_type":"box","text":"difficult to find a counterpar ty willing to transact at a reasonable price and sufficient size.","page_number":47,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"7862cb36-ca73-4c19-a871-243a7033d567","block_type":"box","text":"Swap Agreements.","page_number":47,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"bbfbbcb2-2b73-4991-b982-3a5f68cf4885","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":47,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"eb0c35cf-6d4f-4c7f-8c7f-2ffe235c355a","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":47,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"9624b758-c6a1-4ac6-9113-b519b823d0a2","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two par ties agree to exchange the returns","page_number":47,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"90f2cb68-8f78-4acf-a353-3d740a5d4f4e","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":47,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"23d875a6-dfc2-407b-8afa-2221fb5efc4a","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the par ties are generally calculated with respect to","page_number":47,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"756025c9-f161-4ba8-a49a-43e77cf5dcb7","block_type":"box","text":"a “notional amount,”","page_number":47,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"fbaa70d3-eeaa-4135-8e39-dd5648e31a46","block_type":"box","text":"e.g.","page_number":47,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"ad3a389a-5872-40ac-9148-b69511a0f454","block_type":"box","text":", the return or increase in value of a par ticular dollar amount invested at a par ticular","page_number":47,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"e6db592f-ff40-48fb-9e24-c2cf5499ac3e","block_type":"box","text":"II-17","page_number":47,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"759b6633-ec8c-4c68-979c-0904cb964a2a","block_type":"box","text":"NM0926U-5977728-47/232","page_number":47,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"472f6800-b138-4568-bda2-1f6862d1c809","block_type":"box","text":"interest rate, in a par ticular foreign currency, or in a “basket” of securities representing a par ticular index. The","page_number":48,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"5fe81d6b-79a0-409f-9361-d81ad61605a9","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the par ties to a swap","page_number":48,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"9f01b6e5-b824-4404-b2a1-d59b9bb0b545","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":48,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"5c96f5d3-2dec-4978-98ae-d4f9844c19e0","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":48,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"a86def99-1385-4100-952f-e1c09b387753","block_type":"box","text":"by each par ty to the agreement. Swaps that are not cleared involve substantial counterpar ty risk. A Fund will typically","page_number":48,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"32f71c3a-3e00-4b61-971c-86235f63779b","block_type":"box","text":"attempt to mitigate this counterpar ty risk by entering into swap agreements only with creditwor thy entities that have","page_number":48,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"f2940517-dc39-45f9-b5af-f80e51367c14","block_type":"box","text":"substantial capital or that have provided the Fund with a third-par ty guaranty or other credit suppor t. A Fund’s ability","page_number":48,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"913f70b3-dad3-4bcf-b604-273c878894fc","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":48,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"995bcd82-1f27-461e-889a-6963bee6b023","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":48,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"93619e26-898b-4533-a666-d00e69673e40","block_type":"box","text":"Cer tain Funds may enter into credit default swaps and similar","page_number":48,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"77639e4e-a4f4-47d1-a4b6-842b351d8be7","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":48,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"80f18ab4-ad9e-4b68-b6bd-7e012aa4985f","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":48,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"d7caf581-6d58-4528-9844-9aa3dd22574c","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":48,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"6b9feda3-4184-47e2-ba2c-1295d282cb9b","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a por tfolio of securities issued by","page_number":48,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"5d047f2c-300c-4165-b39f-344c8fffadbf","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":48,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"d502bff5-e935-42bc-addd-8f427860ed82","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":48,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"b1cdd8f6-76eb-4111-9c8d-6adad3fac15e","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":48,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"6f9a98e3-a2e7-4cb7-a051-fb4630350187","block_type":"box","text":"index CDS.","page_number":48,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"64ea7c55-804e-4fd5-a2f5-3746dcc1a05f","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":48,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"c328ab32-7068-4e74-a212-a1e4124d2962","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":48,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"4046017d-6f3d-4ac7-afa6-7c0035a995f6","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":48,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"d2a894ad-8e5a-4dc4-a4ce-2f3825556471","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “shor t squeeze.” In cer tain instances of","page_number":48,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"b40e29f8-732e-43ad-a149-8a530338f3e4","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":48,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"9fc00dad-d027-4c1d-973e-5c1fd6564342","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Cer tain initiatives","page_number":48,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"0b49f2e1-526c-47a6-bae3-9224813226fb","block_type":"box","text":"adopted by derivatives market par ticipants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":48,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"d90cf504-2e85-4b85-aa4e-f6876b142373","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":48,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"f31992fb-4046-4f59-91e3-849954b056d7","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":48,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"b5018077-0409-4c40-9a4b-e0f877d780ad","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":48,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"b03b3220-df56-4a1e-9799-6aa7823b6495","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":48,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"6223d817-42da-43d8-a353-7c7368afb83e","block_type":"box","text":"uncer tainty as to the occurrence of credit events and the risk of a “shor t squeeze” by providing that the ISDA Credit","page_number":48,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"29deeeae-1c5e-444b-96dd-5d8af7364bbd","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":48,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"7e0da941-3033-4938-b3fd-a54f00d14755","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":48,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"65b960dd-38f5-4fc5-bf92-2b7a57dcb746","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in cer tain limited circumstances refrain from","page_number":48,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"6401496b-0ca0-4b80-b018-470325810025","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":48,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"d3261d33-9b58-448a-9461-e3d97e0c0c8e","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":48,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"9774c9a6-2c1e-4512-83c9-b47a0eb00ae4","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Fur thermore, a Fund may enter","page_number":48,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"d258bf54-c6ab-4b42-aea9-dd7f63bef8e8","block_type":"box","text":"into cer tain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":48,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"9c5ed05f-0137-43d8-9e9b-e0497958d5b4","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":48,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"1822ceeb-2250-465f-b683-685d25247d22","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":48,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"ceb43730-613c-4144-aef7-ca210813af6a","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":48,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"9c9f9233-09ca-49b5-8cc7-b6f7307efbfc","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":48,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"317b6fcf-ec7a-4e8a-93d7-d597f433a498","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":48,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"37e60ddd-ab22-42e5-90d4-8ec51cf702dc","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":48,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"8d8047a6-ff88-46d0-b31a-c74c45452dfd","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":48,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"4f4b34af-4762-41b5-8012-2b7ce3995573","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":48,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"3f8f62b8-e4d8-40e9-b807-fe3c97d27027","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":48,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"38ea00c9-c46d-4401-a235-34e61c976366","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":48,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"accbdc56-5629-41fd-9382-a948471870e0","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":48,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"9fa7826b-f26a-4768-a5cc-6043c2e724c0","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":48,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"b727c2e1-e5eb-4a80-afc6-a0615e81d68c","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":48,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"03d6c4fe-6e47-477e-baa3-d442725b5e5b","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":48,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"1a69eb03-eae8-4601-8688-b0588df60b89","block_type":"box","text":"conditions.","page_number":48,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"fe58bf02-8507-4aae-939d-c7ca002d973d","block_type":"box","text":"Dodd-Frank requires that cer tain index CDS be executed in regulated markets and submitted for clearing to","page_number":48,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"80fc096c-4039-4c83-8bb7-18bfd865dcd7","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":48,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"afa12b38-b3a3-451a-b412-a2d854542429","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":48,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"dde010da-2009-40c1-b84c-549ed4233343","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":48,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"9bd68395-1df6-4f0d-9677-035307d7b31b","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":48,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"8d3f3755-8be8-45a4-95c1-9ccbe16d9148","block_type":"box","text":"II-18","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"608118e9-925e-49ae-b5bf-568cb719f12f","block_type":"box","text":"NM0926U-5977728-48/232","page_number":48,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"86d26f1c-4bfb-47ed-b72c-851e003eae92","block_type":"box","text":"counterpar ty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":49,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"db422ef9-2ddb-481d-8e35-2b1accc63a23","block_type":"box","text":"CDS. The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared credit default","page_number":49,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"78a7bac3-ea2c-48c3-a80c-050c993022ca","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":49,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"1881525f-d673-4052-a228-a47d60f02027","block_type":"box","text":"instruments with swap dealers and creditwor thy entities that have substantial capital or that have provided the Fund","page_number":49,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"99912b9c-9e2d-4475-913e-740e367e282b","block_type":"box","text":"with a third-par ty guaranty or other credit suppor t.","page_number":49,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"2152304e-4651-49ad-be37-6cd70f305fc1","block_type":"box","text":"In cer tain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":49,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"901f8602-feae-46df-83d0-028d3bf0ca03","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":49,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"485e74fb-10c2-4d8a-92ea-8c1083e28017","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":49,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"d24358f3-808a-4732-8863-298d5a7c82df","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":49,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"59cc794b-1663-495a-ad7e-8a19b6879343","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":49,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"bf7c24a4-0aab-4a63-895d-99975e9251d4","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":49,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"ebf4150b-3415-4d43-ab01-54a1c18f0b9c","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":49,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"3f08d9a5-e860-4200-bec7-5bfd9f0e3b8a","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":49,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"69a7bb89-551e-44e0-b12f-085210c9f683","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":49,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"899b2c7a-66ce-4883-9ece-916f3c4304df","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":49,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"0328d569-f269-4489-b1c1-c7507d7bca1b","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":49,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"6dfed8ee-f111-4afd-8fa0-6770ab89550c","block_type":"box","text":"Cer tain Funds may enter into OTC derivatives in the form of interest rate","page_number":49,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"a5e6dc9c-56bc-457c-8fd2-ba4ea4148154","block_type":"box","text":"swaps and interest rate caps and floors. As described in fur ther detail below, a Fund may enter into these","page_number":49,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"c72c6f08-625d-4e9d-b745-1c663bda0359","block_type":"box","text":"transactions primarily to preserve a return or spread on a par ticular investment or por tion of its holdings, as a","page_number":49,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"1fd597ba-d746-46f3-957f-86a0157de56a","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":49,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"6c618208-dddf-4541-80f0-986e925aa9b9","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":49,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"3c693503-de4f-4218-825a-cb111f995afb","block_type":"box","text":"Dodd-Frank requires that cer tain interest rate swaps be executed in regulated markets and submitted for","page_number":49,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"b0901940-9ff3-40e9-a9b6-cb932cd4fe35","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":49,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"b8b99d2f-2e29-42cb-8fdf-a9f1016ebcee","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":49,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"9c6ad6f8-3dc0-4451-a9dc-fdac7d144e46","block_type":"box","text":"by the Funds are cleared. The Funds face counterpar ty risk with respect to the clearinghouse when entering into","page_number":49,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"e6d32e2e-d48f-4c04-9766-7b3972725513","block_type":"box","text":"cleared interest rate swaps.","page_number":49,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"6e80d817-0ee4-4ec2-bd2f-40d7041ca23d","block_type":"box","text":"The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared interest rate","page_number":49,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"d8518ae2-1725-4943-8f7a-f0b83a75a56d","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterpar ties for a Fund’s non-cleared interest rate derivatives","page_number":49,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"0cd38711-571c-40f7-9d4b-9f63e873115e","block_type":"box","text":"transactions are swap dealers and other creditwor thy entities that have substantial capital or that have provided the","page_number":49,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"75b382fb-444a-4fb8-b732-6aade89d5119","block_type":"box","text":"Fund with a third-par ty guaranty or other credit suppor t. If the Fund’s counterpar ty defaults on such a transaction, a","page_number":49,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"859f179d-6ee8-468f-b05d-7a191bdced19","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":49,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"fea75aea-bc57-4403-8768-8218411a097c","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":49,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"572de352-00ab-408c-840d-8d1d75c4ccd4","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into cer tain","page_number":49,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"c974fcc4-0c7e-4854-b99b-aee1b14fc735","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":49,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"fe00eedb-d031-415f-a0ab-433a31722db8","block_type":"box","text":"Interest rate swaps are transactions in which each par ty makes periodic interest payments based on a fixed or","page_number":49,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"daea58e3-41da-4f50-8f1c-d7b167963d40","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterpar ty based on a different fixed","page_number":49,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"874a6806-23b0-4bc1-a884-25b864999665","block_type":"box","text":"or variable interest rate, index or asset.","page_number":49,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"44310198-6fc7-4de7-b55b-ef77d523b976","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":49,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"4271929f-f33a-4670-a0c6-6911ee90cb62","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":49,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"814198c5-eabb-4d03-8459-60ec20cd0136","block_type":"box","text":"such interest rate floor.","page_number":49,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"7e653133-90c0-45c9-a747-7c8626893228","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":49,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"3c9b1bb9-240c-4769-ac47-52d163031965","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":49,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"a3df2ff6-cb7f-4fdc-9d51-3a8bb20e9126","block_type":"box","text":"such interest rate cap.","page_number":49,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"b425cbcd-fade-471f-a576-b480ff08e576","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another par ty their respective","page_number":49,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"53b9b49e-4098-4ff9-9626-e7dc85d8b381","block_type":"box","text":"commitments to pay or receive interest,","page_number":49,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"e3a1cb67-1779-4910-9480-c0db274081b6","block_type":"box","text":"e.g.","page_number":49,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"0cdf19bd-d92a-43d2-b5f5-8805e5ef4c70","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":49,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"5fc171d0-3a0b-40a7-a2cf-545c2460c808","block_type":"box","text":"example, if a Fund holds a mor tgage-backed security with an interest rate that is reset only once each year, it may","page_number":49,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"541aeabb-2204-4732-be86-9f859a233aae","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":49,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"48674387-ec24-4a12-a3ca-d6a751ce929d","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mor tgage-backed security due to rising interest rates","page_number":49,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"c99d1e4e-e96f-400f-b46c-dbfb4b51dc75","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mor tgage-backed","page_number":49,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"6b4952a9-8c72-4f72-bc57-353881679d35","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":49,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"04cdc7f4-5920-4d1c-8faa-4e96d0108c6f","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":49,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"a42f01e5-1470-4e68-a944-89e2a406c0fe","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":49,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"8a3bae9d-62b0-4446-a9fd-11433b2c2acd","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":49,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"17a50388-b7e5-4cc3-99cf-35281a4d16f7","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":49,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"c390f7fb-edf9-4152-9794-c8ccee628b80","block_type":"box","text":"II-19","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6f20ab59-669e-45ec-bf23-fc77ae7311c0","block_type":"box","text":"NM0926U-5977728-49/232","page_number":49,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b1ca62f6-6f03-407d-9a3c-402d13c3930e","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":50,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"9105c914-d916-45ff-b50e-900697a72b91","block_type":"box","text":"in cer tain circumstances, as long term capital gains to shareholders.","page_number":50,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"acead26d-a961-4de2-8256-401c85709b5f","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":50,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"7b1fbd88-70e4-441c-9e53-b4272d761efe","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":50,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"30aed776-34a2-4ba6-bd92-00324ce5b834","block_type":"box","text":"Total Return Swaps.","page_number":50,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"8625ebe4-7e62-42f0-a6b0-d4828ec7ac7f","block_type":"box","text":"Total return swaps are contracts in which one par ty agrees to make periodic payments to","page_number":50,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"79e67663-e6bd-4f71-bdf8-1e548af38bee","block_type":"box","text":"the other par ty based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":50,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"ff202d46-f39e-4ce4-b7d8-c98e7a78f688","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":50,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"e4afab4c-548b-4696-803c-ebb55d558190","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":50,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"bfbe6499-802f-41c4-bb23-290986ed4220","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":50,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"646cb4fa-80a7-46c9-8c8c-e8e7ab1e455c","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":50,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"33fdc5ed-f9f6-4dda-b9bc-f3a63da5fe4b","block_type":"box","text":"“contracts for difference.”","page_number":50,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"20b86332-65fe-4daf-9005-6eb89f5ca5a2","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":50,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"314e6133-33e4-4b12-8652-4230991c8b3c","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":50,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"a5fa473a-7087-42ab-a332-1ba8791bb63f","block_type":"box","text":"required to deposit initial margin but the par ties do not exchange the notional amount. As a result, total return swaps","page_number":50,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"fc1f0a99-d1df-45b4-9e2e-8000cac397ce","block_type":"box","text":"may effectively add leverage to the Fund’s por tfolio because the Fund would be subject to investment exposure on","page_number":50,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"daab23de-1dc2-46e5-9ff7-256bf2e216d3","block_type":"box","text":"the notional amount of the swap.","page_number":50,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"5b1db10a-255d-4bdf-8b6e-78b31cc10c58","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":50,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"71d6ee94-7de2-4f6e-868a-958ae3300256","block_type":"box","text":"counterpar ty risk. See “—Risk Factors in Derivatives” above.","page_number":50,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"26715c99-f0fe-4b02-8494-477a9d4ea925","block_type":"box","text":"Options.","page_number":50,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"64e0ae84-86f6-4cdd-b838-1e87c817d570","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":50,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"f307fc2a-aefe-4e0e-996e-6341753f43c7","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":50,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"c6daccee-4f5d-45a6-971f-9afecb3eaecc","block_type":"box","text":"securities, baskets of securities or securities indices, or par ticular measurements of value or rates, such as an index","page_number":50,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"f38a5f92-ca01-44c2-8474-05453e1f806c","block_type":"box","text":"of the price of treasury securities or an index representative of shor t-term interest rates. Such investments may be","page_number":50,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"573474a0-db33-4b79-ab63-d4857f915fa4","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":50,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"e2a75d71-5081-422e-a32b-598a05e0c6cb","block_type":"box","text":"and expiration dates and require the par ties to post margin against their obligations, and the per formance of the","page_number":50,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"defa7869-0489-4d7e-9ede-fe2e5a8d8429","block_type":"box","text":"par ties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":50,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"6a4283c5-c709-41e4-a915-b2157b7de769","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":50,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"2ef524eb-3285-47e3-a989-08538b99beb8","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":50,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"49e2705f-e61a-48a5-af2a-479532162bac","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":50,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"9778323e-0b86-48a7-a426-ef998813e9a7","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":50,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"2d255d02-fff9-4817-9ff2-f8c4af7a24f0","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":50,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"945aa877-8726-44e9-9e7d-b28209afd82a","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":50,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"9e2ff5c2-772f-40b8-be06-6a5d9daf2936","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":50,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"4d053bde-30ea-403c-b037-7388ff2842f6","block_type":"box","text":"OTC markets.","page_number":50,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"c3a35808-0979-4d30-869a-a76d58c033d8","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":50,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"d90a9f7a-899e-45bb-96bb-237c3cc3bd0d","block_type":"box","text":"significant differences between the securities and options markets that could result in an imper fect correlation","page_number":50,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"489d7919-b6b0-48c4-a3e7-714ae3fbb908","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":50,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"3fc01ae9-2aad-4f1e-9491-99efcad3e3c1","block_type":"box","text":"par ticular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":50,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"b6bad51b-6123-4555-a716-4c3bb656d008","block_type":"box","text":"which include the following: there may be insufficient trading interest in cer tain options; restrictions may be imposed","page_number":50,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"06663b5a-31e4-4384-8005-53f827653d6a","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":50,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"ac42f1bb-39fc-4519-b24f-14fb3ef66367","block_type":"box","text":"restrictions may be imposed with respect to par ticular classes or series of options or underlying securities; unusual","page_number":50,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"e91a0f80-6634-43a3-bba1-dedaaddde447","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":50,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"62c95c23-45f1-4e8e-a5e1-6a8d68c41fc2","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":50,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"84f53c87-ac88-4477-9de8-2597048e23cf","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":50,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"09b6c54d-c00d-4ff1-b19d-e559f9081ea2","block_type":"box","text":"trading of options (or a par ticular class or series of options), in which event the market on that Exchange (or in that","page_number":50,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"132bc30a-aea0-4526-8a83-3a591670b38c","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":50,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"4f625b63-99d5-450e-952e-a4865aa27044","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":50,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"b01db1cf-ba25-420f-bb0c-f12b1b3d4d49","block_type":"box","text":"terms.","page_number":50,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"571baa6a-724b-44b0-ae7a-7c5b62d18494","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":50,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"3632f9d0-8fb6-4774-ad6c-b94cc322c81e","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concer t with others","page_number":50,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"410587e8-1a98-48f7-9e0d-5a9c380219be","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":50,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"82f060b1-cec0-4df6-a9ce-88fba53cf383","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":50,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"606dff1f-de79-4aaf-ac61-42df46dd2240","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":50,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"66cca651-87c0-4974-80fd-fe66258f19a4","block_type":"box","text":"II-20","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5f9ce9d3-9005-4bb0-bd33-bf15fada17c7","block_type":"box","text":"NM0926U-5977728-50/232","page_number":50,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"80d6523d-6565-45e6-ba6a-197663edfaeb","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":51,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"abed73fd-8033-4cef-a71d-f765a70f1c15","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":51,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"1eae672d-e6bf-4620-841a-3c61c47d7e70","block_type":"box","text":"Call Options.","page_number":51,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"12192c62-8e98-4333-b53c-a48200ab477d","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":51,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"14210f7c-c63e-47dd-aebe-d03fb93afd53","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":51,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"34c88da1-78be-4e22-9663-33cd56fdb027","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":51,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"a928cb96-0692-460e-8786-65a9bb372364","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":51,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"629bfec0-df8b-4f03-9d49-893cddb263f0","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":51,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"c3dba638-be14-4d1d-9acc-5d789f1d22ee","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":51,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"439a2c11-2e09-46a0-a5b4-10ce86c789d6","block_type":"box","text":"of the option.","page_number":51,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"8dc340d6-bb31-4e7e-803d-10160eeeb861","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":51,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"8b0e09e1-f27c-4761-b131-0c043b23c3ec","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":51,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"69eaa795-eae1-4400-ada7-31b67554f2c9","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":51,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"b1415ef4-b02a-44f3-b4d1-82de77c7c5c2","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":51,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"5e16bc14-3188-415d-bc83-28b42ac740ac","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":51,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"0fc21d00-35c7-4c1b-a8fa-bfe84ca27dfb","block_type":"box","text":"A Fund may write (","page_number":51,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"41f1753f-41d7-45b7-8dd9-065b56f38c98","block_type":"box","text":"i.e.","page_number":51,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"2f301946-3ec1-4b12-9ba9-2c5078b37db4","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":51,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"001184c8-f0ce-4efe-8dde-eb42e7bd2dde","block_type":"box","text":"enter into closing purchase transactions with respect to cer tain of such options. A covered call option is an option in","page_number":51,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"987b56e1-1641-4b03-bdca-5fb6493dab8f","block_type":"box","text":"which a Fund, in return for a premium, gives another par ty a right to buy specified securities owned by the Fund at a","page_number":51,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"3cd84a05-b7c4-4356-a44f-1f5b9b1b5f62","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":51,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"5f216b7c-0967-4cb5-8db1-1149e9955c97","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":51,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"e4cf98f8-1a8b-435d-9da3-ce1c7861557e","block_type":"box","text":"By writing covered call options, a Fund gives up the oppor tunity, while the option is in effect, to profit from any price","page_number":51,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"48b3728e-4d99-4141-9e41-1b7c95de41db","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":51,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"3c241ea9-8ee8-4d53-8610-3c8633c30c09","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":51,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"e2bdf81f-4bd2-4178-ba7c-76092b02e374","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":51,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"d1b4cadd-4f66-4e3f-a8bb-824208fc0f1d","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":51,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"8fb223a0-61d9-43f7-a17c-ccfc4e5b6e07","block_type":"box","text":"a par tial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":51,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"36b35dc9-39a9-4285-a7e5-90a66079b39e","block_type":"box","text":"A Fund may write","page_number":51,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"d57e6b30-97ec-4f7e-961e-af901073e7b6","block_type":"box","text":"(i.e.","page_number":51,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"6af83c40-4e51-4396-9db6-3e6f836e12dc","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":51,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"ae665a6e-6f89-4a81-a603-cc35646b62e4","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":51,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"6595a23d-b71c-43d3-96b5-01f23572a334","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":51,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"2970d226-1554-47e5-b599-dac7c81dbe45","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":51,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"f4a24c11-3333-42f6-8735-41ce9e8f3c5c","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":51,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"1ec10621-c9e7-4c54-b38b-8acf24c20b21","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":51,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"e1ab332e-2f1b-4d21-9e67-6f0e9ab6a3af","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":51,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"1f8fea3c-3ce1-479f-8a8a-7edb1104e8ce","block_type":"box","text":"there is no underlying security held by a Fund that can act as a par tial hedge. Uncovered calls have speculative","page_number":51,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"0274d462-3b04-4765-b8e5-df1ea3938fc2","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":51,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"071bd8f5-aa45-474e-9695-0c83bae1fbe3","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":51,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"c8439f11-e51c-41c3-8c35-46f4ab621f9f","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":51,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"22f17176-74b3-44db-b80f-b1d0ed2fec36","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":51,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"9cdaf526-3dd1-4124-bb4c-1dce7f97ecf0","block_type":"box","text":"Put Options.","page_number":51,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"db911a80-b70a-46c6-9476-27e5458a663c","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":51,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"398ecb79-960f-40df-ba4f-7fc5997db0d2","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":51,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"997a52b1-270d-4287-af73-76954683cfe6","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":51,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"be7d3754-8de4-4aa3-b879-7e5d5fc2b15f","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":51,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"2f8bb124-cd10-4ba2-9f13-15419d51ea50","block_type":"box","text":"instruments will be par tially offset by the amount of the premium paid for the put option and any related transaction","page_number":51,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"3516787d-65d1-431c-af54-255942d7abfa","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":51,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"9eb42734-6945-426b-bb25-4ae8c936378c","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":51,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"347552c0-ac23-4955-8ab0-37928c1e13d3","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":51,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"f6cdf4a1-b8ee-455c-8ec2-55997962b9b5","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":51,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"0b22b972-0c09-4094-af8c-3092677d2651","block_type":"box","text":"purchase uncovered put options.","page_number":51,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"b3ba95f7-595e-4164-9327-857333dd3c2f","block_type":"box","text":"A Fund also may write (","page_number":51,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"5296982f-f54b-4583-b7f8-2d4c3b4bd52a","block_type":"box","text":"i.e.","page_number":51,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"5e94227f-8c6d-4725-892e-6bc5db668f6f","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":51,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"ee7277e6-6058-41c5-ab92-a94cc167ea80","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":51,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"63b71a1b-b0d8-4699-b0f7-96ee84943fa2","block_type":"box","text":"A Fund also may write (","page_number":51,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"58f40721-b7b1-441c-a82b-a576ef8ee129","block_type":"box","text":"i.e.","page_number":51,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"edd14691-7d49-45ba-acf9-f6397a21c611","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":51,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"c990f5ee-5487-459e-bac1-16fdcbcd6e69","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding shor t position or has not deposited as","page_number":51,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"ca8967d6-0dce-4d47-b62e-2af0762bd0f6","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":51,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"6eccfde8-b1cc-4236-8da7-c2a9ec3e8523","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":51,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"d9aec235-5e25-40e4-9be3-cbe1dc715861","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":51,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"119db420-35e2-4f1f-915a-5d39ddf647ea","block_type":"box","text":"II-21","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"18f35fb8-c4c7-453a-a6cb-2a14a215d216","block_type":"box","text":"NM0926U-5977728-51/232","page_number":51,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"eafdcc6d-16d8-457a-a6db-69fb9726a689","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":52,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"bf97d257-70a0-4e5e-ab2f-822bb5dfc27c","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":52,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"b22b85ac-e88e-4c00-87f4-1742ea6104f0","block_type":"box","text":"expire wor thless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":52,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"bbab7314-d161-4c78-b8ec-d76464bf485b","block_type":"box","text":"the exercise price.","page_number":52,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"be9bfca0-13f9-4917-9313-3d0f2ddae0d9","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":52,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"923d9f86-d9bc-4b00-ace7-c95604227dee","block_type":"box","text":"The following information relates","page_number":52,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"69ed0745-e34b-43f9-907a-6ac552af6414","block_type":"box","text":"to the unique characteristics of options on GNMA Cer tificates. Since the remaining principal balance of GNMA","page_number":52,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"3c0542cf-8f9a-45e0-bc95-2c74a02e983b","block_type":"box","text":"Cer tificates declines each month as a result of mor tgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":52,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"e691fb03-1509-4510-9d32-d94c4e5b9eee","block_type":"box","text":"Cer tificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Cer tificates","page_number":52,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"d1287bed-cbb8-4b47-bc29-b3bf72ff0fcd","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":52,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"db7220ef-a1cc-4b0f-b8fb-e719fef659b8","block_type":"box","text":"purchase additional GNMA Cer tificates from the same pool (if obtainable) or other GNMA Cer tificates in the cash","page_number":52,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"ee6c1a06-60da-464d-8658-9610a6d51f49","block_type":"box","text":"market in order to maintain its “cover.”","page_number":52,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"849695bf-4c9e-4453-9d4e-48915b291112","block_type":"box","text":"A GNMA Cer tificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":52,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"883c204a-75db-4beb-ab8f-10a6692e2123","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":52,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"6d3aac65-e3f0-4b15-a68b-d0cfd435ffc1","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":52,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"fb725cf0-2c23-4795-bf87-2a64e79bc395","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Cer tificate with a cer tificate that","page_number":52,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"7759f11f-4368-483d-af19-aae974e1b20e","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Cer tificate, it may realize an unanticipated loss","page_number":52,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"cb52fbed-1433-41cb-9bc2-963cad4d6ee4","block_type":"box","text":"and incur transaction costs.","page_number":52,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"b67b361f-c0f9-4099-b456-e591913a9780","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":52,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"f7566b2b-f335-4ca7-8ea2-e4120238d6cd","block_type":"box","text":"A swaption gives a counterpar ty the option (but not the obligation) to enter into","page_number":52,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"9abdd0eb-5ec6-4066-b80c-eddce3270d23","block_type":"box","text":"a new swap agreement or to shor ten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":52,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"c32688d6-9672-480a-b379-f9588a6afa94","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":52,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"cb9df7df-8c7d-4075-a21c-17c92e76fa18","block_type":"box","text":"i.e.","page_number":52,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"0c3c703c-5f46-4b66-a0fd-840267d70e82","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":52,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"9aa44cf7-c329-4725-9893-bae5b5febdeb","block_type":"box","text":"Depending on the terms of the par ticular option agreement, a Fund will generally incur a greater degree of risk when","page_number":52,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"4ba2a394-83eb-4050-a532-8901c56c08ba","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":52,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"35ff730a-567d-499e-b394-af805c8d65b4","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":52,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"243f2cf9-3b21-46b2-90cc-fa3c18ce1d48","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":52,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"999e5453-c45e-451e-a695-d3d8ec33bd31","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Cer tain swaptions are permitted, although not","page_number":52,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"e8312fc7-a8b4-4551-b466-dda9e7afc334","block_type":"box","text":"required, to be cleared.","page_number":52,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"0b9850dd-7db4-4835-87b6-7d1876763dd5","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a par ticular investment or","page_number":52,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"f3588177-9c38-48cd-a78f-c73360238691","block_type":"box","text":"por tion of its por tfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":52,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"7cde7407-d381-4421-b00b-6409f7afe06c","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":52,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"57c9d0df-79b2-4657-ae96-f22cd7ce4d01","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":52,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"5de56a79-b355-4895-a46c-6232e9e2b613","block_type":"box","text":"Derivatives” above.","page_number":52,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"0190a948-e1c2-4e2e-a7ec-a3f4e0988863","block_type":"box","text":"FLEX Options.","page_number":52,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"80d980c3-5a3f-4704-962c-200116c2f3e6","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":52,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"5ebe0133-ee20-4344-96b5-0079dc5ab86c","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":52,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"937c15e5-a821-43e3-bd08-028b88d7ed4d","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":52,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"f7f840dd-7166-4ca2-a66e-95a80d1f6d15","block_type":"box","text":"exercise prices, exercise styles (","page_number":52,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"717eb394-7bea-49e7-8a52-018f93f75f14","block_type":"box","text":"i.e.","page_number":52,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"f2316a64-aa8b-48c4-b188-fb6b34e40676","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":52,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"f4ce5426-74a5-4775-a254-2cab5a44ea0d","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":52,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"d2ac5693-7aff-493b-bdc8-c08e6507d762","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterpar ty exposure of OTC options positions. Each","page_number":52,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"a95c60ba-fa47-4c6c-8892-3c246dcf8eb8","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":52,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"ebe76dec-7686-407f-a655-4cef60445fb7","block_type":"box","text":"reference asset at the strike price. A Fund’s por tfolio may include several types of FLEX Options, including both","page_number":52,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"0580ea82-f072-40d5-90f3-ecbc1c4d684e","block_type":"box","text":"purchased and written put and call options (as fur ther described below). The FLEX Options are all European style","page_number":52,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"ddbb9987-fd1e-4832-b586-fcd0ef68e543","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":52,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"82032003-3358-4867-ac3c-f1fc3d96358f","block_type":"box","text":"FLEX Option’s expiration date.","page_number":52,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"f2ccd140-d6c2-4ba9-8da2-654d09e6d27e","block_type":"box","text":"The OCC guarantees per formance by each of the counterpar ties to the FLEX Options, becoming the “buyer for","page_number":52,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"8f531c2f-983c-4d39-934a-946d56bc8e97","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterpar ty risk for clearing members and options traders.","page_number":52,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"fff1b6f1-0e50-4dc9-86d9-f0cefc67693c","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterpar ty risk with the OCC and","page_number":52,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"36657ea4-69ad-45ab-a020-957117a2b9ec","block_type":"box","text":"subject to the risk that the OCC may fail to per form the settlement of the FLEX Options due to bankruptcy or other","page_number":52,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"ecd3c203-c7a9-4277-acfa-f3af71afbe8a","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to per form its obligations under the","page_number":52,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"4ed05b31-bfd9-4ade-8d44-92db2047f19f","block_type":"box","text":"FLEX Options contracts.","page_number":52,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"7ae650ff-34ed-459d-819d-d1451256d749","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":52,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"b62e4b31-4b11-4938-b93a-599417053dd4","block_type":"box","text":"Options for cer tain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: cer tain stock","page_number":52,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"1dea7f69-6d19-4ce2-af0c-f1b2796d7834","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":52,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"e1f24a9d-5d74-426a-8600-b666c0013201","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":52,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"03182da5-06fb-4a2e-a2b3-ea494e1a5537","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":52,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"c81e1658-1200-4256-bb3b-3034d28c1ae2","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":52,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"97dd6d14-1c87-494f-a707-c98df0c09b1f","block_type":"box","text":"II-22","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"386a4d47-51c0-4197-9111-248be99699bd","block_type":"box","text":"NM0926U-5977728-52/232","page_number":52,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"84a9140c-e3e2-4890-887e-cfb4e865e085","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":53,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"76790d7a-897e-431c-9212-72f0bbb5e0b5","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":53,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"416799d0-bdf9-4391-a0fc-8af7409a8057","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":53,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"3e29f33b-fea9-4b87-b6f1-85c20b591f2d","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":53,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"35aca588-ec63-4ad6-b0a5-ec123f024c58","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":53,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"88f30b68-ad38-417d-bef0-04a9dc18bfb5","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":53,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"ca2f97cd-e5d0-4de8-a95f-8effdc4e231c","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":53,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"71abda58-55b6-4bdd-aa51-18d79f529fab","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":53,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"fa2adfbc-4f01-46de-aafc-86939bc1efad","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":53,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"ec40ef69-e37a-4dde-8ee1-177256bbc117","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":53,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"fc94c2a9-69b8-4e9a-b0e6-c785fc9e4ad7","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":53,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"2077f8f2-7884-40ea-bbe4-ea165e94e8cf","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":53,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"f0572ca6-4952-46b3-84bd-08a9ae85dc38","block_type":"box","text":"expire unexercised have no value.","page_number":53,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"d009a50c-81be-4440-9e49-bdb74312b28c","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":53,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"cac60775-edcc-4e57-a456-90de1b6c5bb6","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":53,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"1615cfe4-19bb-4e59-84a3-1e4bbac401f8","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":53,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"484c8884-1a49-4067-8bba-79411b003d13","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":53,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"6e66a8a5-54ee-47d6-93b7-24d099c2e147","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":53,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"e2671cf3-316a-44d1-9748-1ee4ccba0215","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":53,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"d61cef69-6481-4bd4-940a-fe12b752a7ff","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":53,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"86b0dfbf-4d1d-4ea8-ad42-5edd7c9af063","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":53,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"e2f00821-16b7-4991-8aa3-0303d497629d","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":53,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"2ea6a8f5-963e-49e7-8293-9f3bf089c8a7","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":53,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"56c9b34e-731d-4fc6-9598-bf736b4582e9","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":53,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"294c091c-5666-41aa-93f7-feb844480981","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":53,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"73bddcee-4ab3-49c2-ad97-cd02e8870b18","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":53,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"292b4c8e-1e31-4fd3-ae5c-c68bcaf27f48","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":53,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"62a88511-ff52-4d6d-9c61-8208a8915368","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":53,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"7b1951df-0686-4c7f-b20d-364273c996f2","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":53,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"20bf234e-f39a-4b28-8c84-1b517eedd263","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":53,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"61006263-8c47-41d0-a083-36a71e25c212","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":53,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"2fbeb04c-e4fe-4cd1-9649-1b7e55a4f434","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":53,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"d213deab-c3d7-40db-b71e-677698937903","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":53,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"c36da9c8-a81f-4275-89a0-0b8708d45e9c","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":53,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"7ec53dd9-9109-4ebd-90c0-393ff98b67d7","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":53,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"52bedf80-635e-4af8-ba12-a03f6b447c07","block_type":"box","text":"Foreign Exchange Transactions.","page_number":53,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"5d506ba1-32ac-4f30-afb4-3fcbf2783c4d","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":53,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"b4b83369-506e-4abd-b326-b97e5915325e","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":53,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"1f3b8f70-05ad-4afe-af3c-bf3049e7e917","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its por tfolio","page_number":53,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"2ea53278-3a45-4e4e-a05b-1e6cb3bc1a14","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to cer tain Funds, to seek to enhance returns.","page_number":53,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"61ca46ba-8213-4cd5-a04d-7468b0486df9","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":53,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"10fea183-88f4-41b4-9d8c-aa8ac3c06bf4","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":53,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"50e059a5-8c84-4bde-b20b-dd865a1a274c","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":53,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"20a3e62e-421e-40c0-9794-35df1e2456ff","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":53,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"7d4f69c6-9cf0-4363-8e04-77580c91d356","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":53,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"5a1bd24a-5f30-445d-93e1-fcde78a82fef","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":53,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"d1bb250f-e0c8-47ac-8944-18a27b7ec22d","block_type":"box","text":"par t, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":53,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"a75b4f94-2bee-48a0-bf7b-1a80f9378ddd","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":53,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"2978628c-b3f6-4851-b2d6-e65d4f0bc8db","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the oppor tunity to profit without limit from increases in","page_number":53,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"818ab697-a2fc-4033-93e9-507c23796de2","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":53,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"09c53040-fa66-4f66-b117-d9c50efb8a82","block_type":"box","text":"transactions. Cer tain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":53,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"c4fa1b86-de32-4550-b4a6-761f2c17e84e","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":53,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"639ab664-24de-4c1b-b7fb-7fe1082d5679","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":53,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"1fb27995-b81e-4d74-89c1-488576ca0e32","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":53,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"e800a741-2826-45a9-a24c-384bf73da0dc","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":53,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"68e615b7-d69e-4f4a-b713-34a596f1ac46","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":53,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"985b7821-ebba-4649-8990-545c3f2ff38f","block_type":"box","text":"II-23","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2d50d685-3531-4a95-acec-a1601c385c4a","block_type":"box","text":"NM0926U-5977728-53/232","page_number":53,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8e808c6c-461d-4029-b49e-f8f8149b81c5","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":54,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"f462fddc-53ed-4518-9789-47bb943027d2","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":54,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"6b0cb15a-c83b-48ec-bd12-352e5e90cabd","block_type":"box","text":"Fur thermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":54,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"e0d63f14-22eb-47eb-af9f-7e77869f1961","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":54,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"950fdb35-6858-48ad-b471-851320153323","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":54,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"3976394d-174f-4a30-b9de-74a3d2badde6","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":54,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"9ab2b51d-a57e-49ed-a966-14169fdd1f6d","block_type":"box","text":"par ticular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":54,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"399c1f59-bbe3-4daa-81bf-07424e93168d","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which cer tain banks","page_number":54,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"26f1ccf1-e35a-4ca3-9cd5-1f078df67302","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":54,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"916b5e06-f3fb-48da-9288-20faec64f8f2","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":54,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"9a67c71c-2314-4dcf-baaa-f725667adbff","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":54,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"b1ee0a9c-e22c-4db7-8214-c29f3d28fe93","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterpar ty risk. Any such failure to per form by a counterpar ty","page_number":54,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"a079db65-64e8-461a-bf4c-27bf64ad3e50","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":54,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"5a3e575f-33dc-4472-8706-5df428cbdb83","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":54,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"5a113ec0-8859-4013-820a-293d8f94a427","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":54,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"8dee5c3e-3e1d-4813-8097-5d0db073d7ad","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":54,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"efb097d8-8a9f-4543-ae85-e7ae3f2549ca","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":54,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"a4d4fa0c-7cae-4515-9545-b27f1d48eba3","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":54,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"bee8d1e8-9a13-47d0-a4d7-22dafbf7b92c","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":54,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"473872e7-61bd-4025-8a86-457f7c4423a0","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":54,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"7bc20ad9-f572-49d7-8ebe-c7076c138870","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":54,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"025a73c7-f0ae-4048-8d52-75dc69fad698","block_type":"box","text":"involved.","page_number":54,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"76f89e35-347d-4fcf-aafa-e5fd9879ed10","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":54,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"0df98e04-443f-4eac-9844-412e1888871e","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":54,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"7d944834-dc88-49f0-8188-58eb37d277b1","block_type":"box","text":"denominated in such currency.","page_number":54,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"46815c83-89d1-4d31-90bd-dd849d526469","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":54,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"5ba7ef90-1abd-4581-b74e-52904dfe2a9d","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":54,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"2b33d819-5305-4620-8c07-fd89c08cc4fd","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":54,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"a9b69698-b715-40fb-8461-8785a60e7005","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":54,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"74fb0492-7afd-433a-bfac-e3356c25b124","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a por tfolio position, or, with respect to cer tain","page_number":54,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"cbebbf1c-0bc5-466a-91b5-7de9a13d9c34","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":54,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"99fca2f2-8dbd-457e-b26b-ac2851f34ff2","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":54,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"9bce6961-5161-4b3f-93e5-807211f5d2d2","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":54,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"ba2a3abe-01fe-4691-98fd-1eb5baf9196c","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":54,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"cb1f308c-100b-4660-8862-56c7ebc2bb52","block_type":"box","text":"hedging a por tfolio position by selling forward a currency in which a por tfolio position of the Fund is denominated or","page_number":54,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"0df04fcb-3826-4747-a99a-3703e8aed4c5","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a por tfolio position in the near future. A Fund may","page_number":54,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"e4b93f8b-d201-4a98-8b1a-b112c8d33e6b","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":54,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"c42f697d-7814-4849-ad1a-3dad110e8736","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":54,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"1386a176-4294-4ed0-a3ac-63d06e566104","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":54,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"2db1e286-f71d-4932-9a94-988f0c28e04f","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":54,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"c3bcbfab-1bb7-45ef-91b0-449cadb932c9","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":54,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"f6a1f419-7dfc-4713-a2cf-8cbb11abf836","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":54,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"255be46e-0366-4b4e-8fa4-77488742a982","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":54,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"de2b8b7b-0b68-418b-8474-b2baef123e1f","block_type":"box","text":"of existing or anticipated holdings of por tfolio securities. Proxy hedging is often used when the currency to which the","page_number":54,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"8baa3735-a9d1-420d-b398-2a2f9b636fe3","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":54,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"3e81b49f-82c8-4644-b09f-fc1478fdb1a8","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":54,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"73bf5eab-1e06-40d7-a5de-d9a68b428b3f","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":54,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"0ec4a100-905e-49f7-9611-76d6595fe33e","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":54,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"ca20869f-9005-463d-97f0-eacd771f423c","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":54,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"be29a3ab-d13f-4983-8352-7be17be730c0","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":54,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"f9c3004d-dd31-4db9-a3b2-fa95e335f89d","block_type":"box","text":"may not be present, including during the par ticular time that a Fund is engaging in proxy hedging.","page_number":54,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"73da365e-1a83-470f-ad0c-d02733a29148","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":54,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"3692b414-3df1-4c49-8b19-c3a633e1fd84","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":54,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"941e3905-2d21-4057-9eb2-0b2f2d98cf15","block_type":"box","text":"have por tfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":54,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"be500c4e-068d-46f3-8efc-32dbbb520716","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":54,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"276139b3-9ff4-4627-b69f-5444845f385d","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":54,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"83ff1a1d-c1a0-4f1c-a76b-0aa094f576d0","block_type":"box","text":"II-24","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"50429eb7-a92f-4f4d-939b-eb749a613d15","block_type":"box","text":"NM0926U-5977728-54/232","page_number":54,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f29b731c-27a9-4ad4-ba5d-920d09429e2e","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":55,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"b8526184-55ca-4e8d-9a4e-77db7e85bab3","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":55,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"d50f4ea3-bacf-4de1-8d04-4df354f6a4d9","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":55,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"ec3329d4-4d7e-46c4-b482-9da3b8ce4c59","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, shor t-term forward contracts that may be thinly traded or are denominated","page_number":55,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"5fefddd2-2ad9-496e-a7bf-fd7cc8022f01","block_type":"box","text":"in non-conver tible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":55,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"866d114f-d89e-4fb9-9fdc-6af3ec4128da","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":55,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"ef475808-cd53-4459-b6e6-3a122cdf8431","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":55,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"8f1e4da7-f3e5-42e6-af02-c605eb4bc776","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":55,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"b331373d-2cc8-4076-b511-e171a3de82cd","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the par ty receiving payment. NDFs are","page_number":55,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"f221a5b6-9664-4748-820a-50448491570d","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":55,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"1b72b6d9-1e3c-416b-9b4c-e6d67aae653e","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":55,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"2052b91d-af80-4cf3-986f-74113a2401bb","block_type":"box","text":"traded.","page_number":55,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"ef847f30-3b8e-4615-9931-333c8ab17f37","block_type":"box","text":"Currency Futures.","page_number":55,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"dbdd1585-5cc6-49ac-b043-576eda8bd3bc","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":55,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"9fcd406e-1190-48cb-b2b5-038de62a5c3c","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":55,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"82cfb82e-2810-4e17-9048-9b185966743a","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":55,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"fbdd34f3-c8d1-4b96-bb3a-504a8b7299ac","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":55,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"bb8e45d0-55e6-4d91-8d24-d70847287a17","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":55,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"46092624-8865-412a-99b6-8a4efdbb4e4d","block_type":"box","text":"Currency Options.","page_number":55,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"80c97daf-ffe2-4d63-bd74-6e8a9b720503","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":55,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"1fa88e00-96a1-4606-9715-d697cf1ff85b","block_type":"box","text":"through the use of currency options. Cer tain Funds have fundamental investment restrictions that permit the","page_number":55,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"f8fce85c-0bdc-4bc5-9376-0e2f3aeae280","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":55,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"c24bac4a-3790-48da-b0d8-4f2d4be512ad","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":55,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"b01a444b-b5a2-4eb4-8c0c-b9cd0c581352","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":55,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"43212212-2875-4b83-8144-464da3c842d3","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":55,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"b94c4922-29f1-4cd0-adb2-cc18f7049502","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":55,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"ce5c09ec-5169-401f-8491-731c0ad3fae1","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":55,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"5dd1ec92-6080-4c39-a10c-3988d8c9dffb","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":55,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"c70aa4bb-1dd8-4985-90d7-522dff4afc80","block_type":"box","text":"on up to 100% of the currencies in its por tfolio. See “—Options” above. Currency options involve substantial","page_number":55,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"1212f6c8-9cc8-4177-9136-5dcb21cf89ed","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":55,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"2cff8a70-2984-4c29-9eee-c8505e0a8d3c","block_type":"box","text":"Currency Swaps.","page_number":55,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"bf714d7a-51bb-414c-824c-fbe8d899e20b","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":55,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"79b40336-7606-4099-9c78-e05e50985ef1","block_type":"box","text":"hedge por tfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":55,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"e522ae0a-c090-45b5-9847-8c95d9893fde","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":55,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"e82b5899-624e-4c3a-9dab-91c2f87130c0","block_type":"box","text":"exchange of the rights of a Fund and another par ty to make or receive payments in specified currencies, and typically","page_number":55,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"ec0f98d6-99a8-4446-9676-a76af10b2dcc","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":55,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"8b12aac7-5020-4d80-91d2-da876789696f","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other par ty to the","page_number":55,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"d29abfde-9247-4594-b2e6-4ad5f42f7793","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":55,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"5a335b34-4a9d-4f30-a9dd-6b128c9b82e6","block_type":"box","text":"Distressed Securities.","page_number":55,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"cb7e1643-0e53-4ee8-8041-a0cf533408ca","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":55,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"196fddcd-c584-4692-b965-cf8776a48719","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":55,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"46373046-3058-4344-b5da-ea620fb178bb","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":55,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"d665c365-ae22-426a-b8c3-8be63b18bc70","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":55,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"9e87b8f9-fe20-4c05-ab1e-dda61a9e46a4","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":55,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"661a5d5b-aca5-4a2e-9bed-a221592f868c","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":55,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"75ca5435-07ea-4398-8df2-152d7bdd2fe7","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":55,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"7997d929-b303-4451-ad3f-422b697335f2","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":55,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"e0eefefd-8662-4126-bf55-03873dc6b2f8","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":55,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"02e004b4-2f57-4825-8f20-8e586f387bb3","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":55,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"dec09b14-d5cf-4000-a245-e274ff01944b","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":55,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"a35d5a2e-c373-4a44-b534-f4db954b6269","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":55,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"1da7357f-2838-4f51-af5c-0316dc8c0863","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":55,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"deb57405-9a18-4b66-919c-db5bb0ae0ef7","block_type":"box","text":"significant uncer tainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":55,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"a6d7daad-bd08-4077-ac24-30b3ef1ee34d","block_type":"box","text":"Fund may be required to bear cer tain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":55,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"ab4b34c0-2b79-4b02-b6fa-414f53d751b3","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":55,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"7e50cd57-7eaa-423b-8229-cc0edaefabad","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncer tainty as to","page_number":55,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"4796f1c6-9aa8-47e8-b684-e573a23da222","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":55,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"3b838801-dd6a-44a6-a80e-9d086f7dcbb3","block_type":"box","text":"satisfied (","page_number":55,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"1dbbb745-7362-4763-9017-34095c3c1183","block_type":"box","text":"e.g.","page_number":55,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"206379f4-74ed-4f26-a1be-577cef0f6203","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":55,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"580c9085-8bc1-45b3-b83a-ba62890f7aed","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":55,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"1c63a920-7039-4398-934e-4ae521e67550","block_type":"box","text":"II-25","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"11fee762-abde-42ac-8941-11fdb377d737","block_type":"box","text":"NM0926U-5977728-55/232","page_number":55,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ec25911e-e6bb-4fae-b63a-4383d37f2538","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":56,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"ddf9dbf8-947a-4490-b4f5-fa415c690e68","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":56,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"2a558fa8-e37d-4767-b990-50d54d5af093","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":56,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"97646665-ec52-43a9-b5aa-3a75de84520d","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":56,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"0168826c-389d-4a16-bf9a-0b823885b984","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund par ticipates in negotiations with respect to any","page_number":56,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"ec7869f3-2396-493e-8b25-ef57c12018b9","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":56,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"672258e4-2eb8-47a4-9f09-32619db4e8a5","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":56,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"afb53e59-db99-423d-b482-ffad08fadcf3","block_type":"box","text":"Fund may have a more active par ticipation in the affairs of the issuer than that assumed generally by an investor. The","page_number":56,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"8ab24e2f-e134-49c2-86ca-e02a6bd056db","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":56,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"822532d1-b433-4eb9-bb75-bff55d4a75f6","block_type":"box","text":"affairs.","page_number":56,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"e9979ec2-eb29-4bb5-aed1-371a87632092","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":56,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"f4cb0193-e398-4fc1-be66-25487255f0f9","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":56,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"95f2fe53-645d-4ec8-93cc-ee4361e6ea4f","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":56,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"0dfa2f9e-4cfa-4e64-9491-afcc642323ff","block_type":"box","text":"consider ESG factors as par t of the investment process for the Fund. Fund management views ESG integration as the","page_number":56,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"52dc7edf-2c3f-43e5-a69e-7a4d67a3e41a","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":56,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"439a9477-a990-424e-a27d-6923f33cfe55","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s par ticular investment","page_number":56,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"a3c99a4d-3764-4d33-acbb-e985098ecfe3","block_type":"box","text":"strategies and may include consideration of third-par ty research as well as consideration of proprietary BlackRock","page_number":56,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"8130528f-7c72-4f73-b38d-1c4fbef0f28e","block_type":"box","text":"research across the ESG risks and oppor tunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":56,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"017a4ee6-c010-4c98-9e19-9a9de668b410","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":56,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"b3d315a4-3bdf-4ed1-9fc8-dd9880259610","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":56,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"e7b2ea30-e2fa-4215-bff2-4bd06da05796","block_type":"box","text":"Cer tain of these considerations may affect a Fund’s exposure to cer tain companies or industries. While Fund","page_number":56,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"b5a27d34-ebb2-473b-846d-57ff003f74bd","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term per formance,","page_number":56,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"fc161dc0-a295-4401-a81d-4f7d2db71dbb","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":56,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"3c5f673e-6742-419c-bbd3-b1422d2d8282","block_type":"box","text":"Equity Securities.","page_number":56,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"f06f167a-ec45-4247-89fd-b1c1e9569283","block_type":"box","text":"Cer tain Funds may invest in equity securities, which include common stock and, for cer tain","page_number":56,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"520c06ee-3fda-478a-b731-82891701ea44","block_type":"box","text":"Funds, preferred stock (including conver tible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":56,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"3b744aaa-81ba-4bb5-bc47-738357ab23f3","block_type":"box","text":"interests in trusts; general and limited par tnerships and limited liability companies; and depositary receipts. Stock","page_number":56,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"aa78e1ad-cc45-43a3-8896-d728cac8f6da","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a por tfolio","page_number":56,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"31543a9b-c458-40a5-8afd-f3f8c246e9cc","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":56,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"c5f58d98-b483-4481-9200-8458d9641f03","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":56,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"79dbaabe-5035-45ac-8bc3-8073b719c130","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":56,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"3726e877-f40a-42f3-acc7-451bc092bc63","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a par ticular industry or industries, such as labor","page_number":56,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"842e8290-4db7-40a2-b31d-55cd096ebb8d","block_type":"box","text":"shor tages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":56,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"7fde7b7d-11aa-464b-81c1-5542213ce72f","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":56,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"07ae5790-ec88-49cd-9435-313a095b4fc1","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":56,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"2cf397b6-19ac-44c2-8f51-bedb805bffcd","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":56,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"0d856de1-2e85-4768-b3c4-b39eda3b2b05","block_type":"box","text":"From time to time cer tain of the Funds may invest in shares of companies through initial public offerings","page_number":56,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"d8be1506-cbdc-42e2-8394-54ee4a35351b","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for cer tain Funds. There is","page_number":56,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"f61d5e86-8f6b-4893-98cd-1ec511f1fcb7","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":56,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"56f52fe7-127c-4437-9646-cf95125e3e58","block_type":"box","text":"these past gains as an indication of future per formance. The investment per formance of a Fund during periods when","page_number":56,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"5b316019-c93e-43ee-9d04-c0e66edf011e","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":56,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"219c1c5e-2371-4092-9ae9-65e7094859bd","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its per formance will generally decrease. Securities","page_number":56,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"7f57b10b-cde5-45de-b7e5-c0f4bf20394f","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":56,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"17fa0320-dcaa-4e43-b7b6-25a5bc54e0a3","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":56,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"c296aa4c-79f7-4c78-b191-168bc7adce8a","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shor tly after the","page_number":56,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"587ac529-0573-433d-91d3-ca336377c55a","block_type":"box","text":"initial public offering.","page_number":56,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"840b414d-fea1-42f3-a503-6c5176c81eef","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":56,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"a8882f58-754c-4e60-b9ec-09ae8f6011a0","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":56,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"2d77c66c-84e2-4459-8ccd-3579a9684a82","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":56,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"d17d22a6-7b32-4d4b-aaed-0b312c076129","block_type":"box","text":"companies, which tend to be less well known, have shor ter operating histories, do not have significant ownership by","page_number":56,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"474dc6c7-e459-4f6f-8e89-d5d14219a5f8","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":56,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"ac0f559b-4d66-4331-b206-cec7fe12c53e","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":56,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"f53ddc39-7ca6-48f9-8e49-0b1f630406e0","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":56,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"9567a5dd-6d68-4337-b1b5-9835a789ca98","block_type":"box","text":"more established companies.","page_number":56,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"4d84587f-59d4-49af-9880-6b57a5bad37f","block_type":"box","text":"II-26","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"840260f8-c717-44fb-a660-a04976fcd57e","block_type":"box","text":"NM0926U-5977728-56/232","page_number":56,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5cac806a-54f6-45a8-ac3d-617a74a0104a","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":57,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"91708bf1-ba2f-4d6e-8345-ca058249a5ad","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Cer tain of the Funds may also invest in shares of","page_number":57,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"17025665-632d-48fd-acda-3d5984b83e9a","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":57,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"4b34e53e-5ec9-40d4-a8a9-e4902b9fcd3c","block_type":"box","text":"below.","page_number":57,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"12b05d3f-abdc-45f9-af6e-d2dd1c453d81","block_type":"box","text":"Real Estate-Related Securities.","page_number":57,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"aa4b41f6-7231-406b-acf8-1861718db189","block_type":"box","text":"Although no Fund may invest directly in real estate, cer tain Funds may invest in","page_number":57,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"fc276258-0216-418d-a8f7-ec69710a7ab7","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":57,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"1bd7ca56-bfeb-4a7f-8d9f-974345cca493","block_type":"box","text":"cer tain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":57,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"736a9983-b83a-4db0-b480-b5314d47a919","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":57,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"6fc52a2e-d8c4-445b-aeaf-391a21b58c9f","block_type":"box","text":"conditions; possible lack of availability of mor tgage funds or other limitations on access to capital; overbuilding; risks","page_number":57,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"e003ff4e-b845-4652-b5d2-da5661eafe20","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of proper ties; increase in competition, proper ty","page_number":57,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"bdcc1a35-db71-4e2a-8b61-bf43511f9eae","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":57,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"c49a6bc3-1da4-4a48-8e4a-e0436e6d9455","block_type":"box","text":"resulting from the clean-up of, and liability to third par ties for damages resulting from, environmental problems;","page_number":57,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"9202d819-d707-4d9c-b2ab-5d74d880c6d7","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":57,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"17ee4678-baf3-4a64-8a6e-af2f9c6f8ba3","block_type":"box","text":"ear thquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":57,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"f8fb9d36-02db-4e7a-a363-9c78b9227cad","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":57,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"281c6e75-6d4e-446b-a8a5-e2ffa8bb889c","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by proper ty","page_number":57,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"d7d16ee6-6dd4-4e41-8722-863e1e2e4292","block_type":"box","text":"type or in cer tain other respects, the Fund may be subject to cer tain of the foregoing risks to a greater extent.","page_number":57,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"0b4928b9-64af-4beb-80a4-406fa0a85d07","block_type":"box","text":"Investments by a Fund in securities of companies providing mor tgage servicing will be subject to the risks associated","page_number":57,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"d62b6fa2-a692-4162-8e5a-fd99b3f231dd","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":57,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"446a0c80-a5a7-4424-9a76-0f78352165f3","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real proper ty acquired as a result","page_number":57,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"932a8fa5-349f-4367-8f84-a4566f017587","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":57,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"fd9a6e1e-7a7d-48b0-8d0a-ab268c2cccfa","block_type":"box","text":"its tax status as a regulated investment company because of cer tain income source requirements applicable to","page_number":57,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"ebb5ab5d-4245-465b-96d4-3de94195a17d","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":57,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"c25d4f8a-9a74-4db0-bee7-d41da9e9ec75","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":57,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"1a99cc46-72c7-4f15-98d7-e3ceff5fcdaf","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":57,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"246aebc6-d6f4-4213-a4c6-79d7343bfa3d","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":57,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"75a7fc11-cef3-4715-8408-3b6ecc811e69","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":57,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"37bcc908-177c-4a80-bbc1-aed44802e76c","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":57,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"3bab1900-2d67-4760-9c6e-3f575464ca2b","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":57,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"66dc4e3c-8c21-4b80-a378-63849e0ed1b2","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":57,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"18ab11ae-bfc0-416e-873a-070908379ff5","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":57,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"d31d9797-f581-442d-be98-948b82d9586d","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":57,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"99b8479d-a2d7-4ce7-a9d3-82158ca8758a","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":57,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"748143fd-3ce4-47db-8f13-cf6a2c3474b7","block_type":"box","text":"result, the disposition by a Fund of por tfolio securities to meet redemptions or otherwise may require the Fund to","page_number":57,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"f68bc31e-9adf-48aa-94ef-d8dd534c3a48","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":57,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"4d6ab869-35bf-4e6b-9e68-20b8b65bd916","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":57,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"62c0ac1e-c73d-4fea-8cda-7e4e9a594b08","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":57,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"ec9df4e6-5a04-499a-a8b8-b8ffde4c941e","block_type":"box","text":"investment results. Careful initial selection is par ticularly impor tant in this area as many new enterprises have","page_number":57,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"8fb11cf9-37b9-46e2-8814-431bd0e8227c","block_type":"box","text":"promise but lack cer tain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":57,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"d7a632ce-4f37-4e56-88d9-efd7694135c9","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":57,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"87fa29d4-043d-4263-a26e-9007c7f4455a","block_type":"box","text":"Fund management believes that relatively small companies may have the oppor tunity to develop into significant","page_number":57,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"4625361d-a532-456d-bf7b-57b6f63ee24c","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":57,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"fe1fa08c-cd38-4a45-963f-519d09e52253","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":57,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"9e7ee60f-bd0f-4c3e-91ce-fb3c83a04a34","block_type":"box","text":"Equity securities of specific small cap issuers may present different oppor tunities for long-term capital","page_number":57,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"df0fab3e-e376-42ac-8abb-76c6030df0c2","block_type":"box","text":"appreciation during varying por tions of economic or securities market cycles, as well as during varying stages of their","page_number":57,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"f3f27092-2118-4629-9c79-04e58430eb72","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":57,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"3810c1da-3eb3-473a-8903-d66323a0a78d","block_type":"box","text":"cycles.","page_number":57,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"bd617d70-5209-46b5-9cf8-b91d931a9665","block_type":"box","text":"Tracking Stocks","page_number":57,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"21e7f5a6-9350-49a9-aa7d-a48c2207deae","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":57,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"52d9c32d-1008-45e2-bce6-f9987baa073c","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the per formance of such","page_number":57,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"e2ce10d9-e387-4a1d-bba2-08c62258a37e","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":57,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"2bef5153-2373-4558-bf3f-413084a23050","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":57,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"4fb0fdfc-5076-4502-8d73-694bfdba021f","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":57,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"baefb8da-a4ff-418d-be7c-870492ff68b5","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":57,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"e23e6089-05d7-4bfd-8529-7be02fe387e3","block_type":"box","text":"Cer tain Funds may invest in ETNs. ETNs are generally notes representing","page_number":57,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"d8a84671-e7c4-4c05-8b9f-02ac98139b06","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":57,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"bbd9d98f-627c-402e-9ce6-6481370c0a0e","block_type":"box","text":"II-27","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6a8f86ec-54d0-4a77-bfe2-4fdfeef4ab75","block_type":"box","text":"NM0926U-5977728-57/232","page_number":57,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"54881289-3584-4a8e-8547-3bb19f8053a1","block_type":"box","text":"are based on the per formance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":58,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"c5d99046-d7d7-42a5-8953-2ef3242ff733","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":58,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"5b63045a-4b1e-4732-a81f-e803010a7170","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the per formance","page_number":58,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"35982d10-5c0e-4884-bdba-0c9ad6b015bd","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus cer tain fees. Unlike","page_number":58,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"2e50f629-fb86-4d60-8df0-302c99d2fd58","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":58,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"c1896f91-f125-4ea2-a666-eda193a708f6","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":58,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"a1be3c63-52ca-4b9c-9a1e-31653bc703d4","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":58,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"2e4505a2-aed3-43cf-b171-ca29f4e429f2","block_type":"box","text":"per formance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":58,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"5d54d84c-84ef-4399-93b2-568adf5cee8a","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":58,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"7918fd31-a145-4ec4-9738-4166735a1a59","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":58,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"d516cdd2-dc1c-489c-92f5-f3f8e1b3828b","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its propor tionate share of any fees and expenses borne by the","page_number":58,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"371cb2c8-6cef-48c5-81b9-0b4c3493f9bb","block_type":"box","text":"ETN.","page_number":58,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"d200ed31-b11c-43d1-bef6-1efe54bae589","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the per formance of the reference instrument.","page_number":58,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"72396443-fce5-4053-9d29-10206e68aeef","block_type":"box","text":"ETNs also incur cer tain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":58,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"1e472d18-d9c0-40b0-9fed-f946ad07dc94","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":58,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"a9bbd764-602c-40b3-b7cc-7e1d6d545b1f","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":58,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"cb48156f-c1b3-4c0b-8839-4991648aab79","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":58,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"51eb931c-64ec-4144-9f1c-146af3a10422","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":58,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"ce2b11d2-6c3b-4b6f-b3e4-68d7ca68b2a2","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":58,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"95c49230-a186-4034-90ac-64ac11843eea","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":58,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"a196ede9-a2cf-4d38-ad11-268881465b0d","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":58,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"7fdeeb20-717a-4b04-a9b5-3a5ba393545f","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":58,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"47c22532-a093-4865-9d6b-ae336ed04b2c","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":58,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"77733315-619e-4a37-83f7-a8a86a4aaaaa","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":58,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"cb792acf-f3b8-4771-8e96-70cc33f4f851","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":58,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"84df0d7a-d1db-48c5-b0f4-02e79e9b2326","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":58,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"bb43a01b-3b03-457c-80b2-efb93e4cfbca","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":58,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"64ef8fc3-ee16-48bf-9242-b682f6a3072c","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a cour t may not","page_number":58,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"d7873a56-60bd-488d-ba2d-55476e967135","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":58,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"2fc09007-bd12-48b8-ad71-2d09e9a040d1","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":58,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"e1e8880d-39df-4cd7-9d83-dcea140584a5","block_type":"box","text":"Foreign Investments.","page_number":58,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"8bca2696-defa-4b27-bbda-0cca1256f247","block_type":"box","text":"Foreign Investment Risks.","page_number":58,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"08843bab-fbc8-4d7e-9beb-be151a1079d6","block_type":"box","text":"Cer tain Funds may invest in foreign securities, including securities from issuers","page_number":58,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"3bca58d6-7347-496b-b044-b274510f2c2a","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":58,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"e50aba82-1737-458f-bcde-d76ff0e887a2","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":58,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"01304201-ac24-4fff-8152-e860f4e5d958","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":58,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"c447517a-6352-453e-bed0-09fdc00e86b5","block_type":"box","text":"Securities issued by cer tain companies organized outside the United States may not be deemed to be foreign","page_number":58,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"86d659ad-1798-4e4d-953c-8bfa4f5076d8","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":58,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"7c936a51-082e-4fe6-a362-46387d4817b4","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":58,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"3820e956-839f-4b67-a8ee-eaea2ccd3487","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":58,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"9c014554-aa38-492d-8ca2-1f96bf6201ed","block_type":"box","text":"benchmark index.","page_number":58,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"796e13dd-2dcc-4ac6-b57f-6b2394580f8d","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":58,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"ddafccbd-52dc-46fd-92b1-f02b85934247","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":58,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"41de7195-883c-45f3-88b7-3eef1e53562d","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":58,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"e29c19d9-e0d0-491d-ac2d-50a30d046f5c","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":58,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"29f9505b-ddb9-41b5-b94d-144a73bcd9f9","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":58,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"6c0ee547-73fd-46be-8db0-5434122cc328","block_type":"box","text":"securities and commercial paper. Such securities may include loan par ticipations and assignments, conver tible","page_number":58,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"37566877-6928-441c-bc99-881ef7033f2a","block_type":"box","text":"securities and zero-coupon securities.","page_number":58,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"b6be0f3c-ef3e-4f28-96e0-f9bba584aa76","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":58,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"00d08795-5e93-4c13-91a3-d19d04ce7a7e","block_type":"box","text":"taxes.","page_number":58,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"bc9e96f9-0238-4cf5-9e17-0a1a38d01460","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":58,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"2b3b4e58-d642-42b6-b999-9c88c4ff3d0a","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":58,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"3976a9a6-8d9a-4c96-850d-e35139bf6571","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":58,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"366abe15-7099-44a5-b115-dae18df65626","block_type":"box","text":"II-28","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ba26bc01-0f4d-4cea-b115-a8836121dac5","block_type":"box","text":"NM0926U-5977728-58/232","page_number":58,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"061977cc-0bbb-4f1c-95c6-d9619e29edd9","block_type":"box","text":"underlying security (","page_number":59,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"0c20ec1d-af00-4a70-8956-fac40d9d7577","block_type":"box","text":"i.e.","page_number":59,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"b7e39673-576b-421a-ae17-bef9bcb0fa86","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":59,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"a3e5d181-518c-463d-a93d-65b207cf73da","block_type":"box","text":"Fund is likely to be greater where a large por tion of the Fund’s underlying securities or other instruments trade on","page_number":59,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"e32160e9-803b-48dd-b0af-9da88849e079","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":59,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"a92febd6-cbcb-4a28-9195-cb4861bbe26b","block_type":"box","text":"result in premiums or discounts to cer tain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":59,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"4b683fde-1cb0-4a9d-af48-4054a15ce179","block_type":"box","text":"Foreign Market Risk.","page_number":59,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"47bd866e-2091-4be1-8288-449a78a2593f","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":59,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"218c1ca2-77cd-48aa-8623-3eef3f57405a","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":59,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"64169d45-faa0-4bfb-8c13-060745e42f64","block_type":"box","text":"always) per formed differently from securities traded in the United States. However, such investments often involve","page_number":59,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"8731c6dd-625f-4014-924a-98f8f455fe6d","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In par ticular, a Fund","page_number":59,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"baafd939-f3c6-489d-ab3b-162e7e872e12","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":59,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"1c011c79-224c-4488-82dc-8be5bd45537a","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":59,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"f634c63f-5167-4b7e-8d02-d43a18f67837","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":59,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"0c6036f0-0cfa-4628-9f55-f0d83537053d","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":59,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"fb196d99-3f9c-4cf4-8985-42f23aa572dd","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":59,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"d26894ad-296e-49aa-ae49-2a629e2a6a9a","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of cer tain countries, or the","page_number":59,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"a9f02ea4-629c-4961-9663-acc4ab410730","block_type":"box","text":"U.S. Government with respect to cer tain countries, prohibiting or imposing substantial restrictions through capital","page_number":59,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"e26ab479-51fe-4a3e-a874-4dc0975c8863","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or cer tain industries in those countries. Capital","page_number":59,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"d23e67d7-7ec3-4cc9-956d-33b9c1cb595b","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":59,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"01616731-6845-45fd-9ac0-7c4e9f51f6e0","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":59,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"8c06064d-2885-4ec5-8767-857aa07e963f","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":59,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"6d4618bd-17cc-4b74-b789-8fc9a6aa286d","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":59,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"314da858-e3e1-4970-9bab-1b43d5acb319","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":59,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"daabc418-bf55-497a-95fb-b492b652e838","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":59,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"1c33a3ce-ebc1-4aa7-9210-91caad6cd7b7","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":59,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"9581ab3c-2568-4d6e-8842-67db7e5e4a3c","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign cour ts, and political and social","page_number":59,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"8efc5114-19b3-4aa2-9b6d-f386fa4b2e99","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":59,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"9cd9d6d1-ff1a-4f6f-8f21-62214e4764c4","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in cer tain","page_number":59,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"2cfc661a-8a38-49e6-a33b-b8511f50d8b2","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":59,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"81ce5039-c401-41de-9d11-a98e7ebc0267","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":59,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"4f896c80-f254-4815-84c9-cbe0a2ec9204","block_type":"box","text":"or abroad could result in appreciation or depreciation of por tfolio securities and could favorably or adversely affect a","page_number":59,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"b5e271ec-682e-42cc-88e4-42e0c3bc9a25","block_type":"box","text":"Fund’s operations.","page_number":59,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"ff173b2b-66b5-49a5-ac59-e377bdd232dc","block_type":"box","text":"Foreign Economy Risk.","page_number":59,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"876162f9-8139-47d2-a28c-68e2c1a6bae3","block_type":"box","text":"The economies of cer tain foreign markets often do not compare favorably with that of the","page_number":59,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"332ed2d1-d15f-4a1e-89d8-f40fd08185f5","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":59,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"82e32a76-78df-4aa5-ab46-5d98544b031b","block_type":"box","text":"and balance of payments position. Cer tain such economies may rely heavily on par ticular industries or foreign capital","page_number":59,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"d91235b1-97f3-4032-ae1c-d6ed3ed42f85","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a par ticular","page_number":59,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"6f9654f0-8ad8-4d28-b886-6bb5257d8c8b","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":59,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"27c823a2-7609-4582-9045-6d189aa62a24","block_type":"box","text":"measures.","page_number":59,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"402cb28c-44b4-4153-b7c9-464a38e1ada2","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":59,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"2b7fc51f-7e08-46aa-a6ed-7b588e398cdf","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":59,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"c4d6a844-ffb4-4927-8c3a-36ddeb949b9b","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":59,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"ed4576ea-26a5-4015-b328-fa93eed645e1","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":59,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"a6590817-9fb3-4030-8aa5-eec1fae0b904","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is wor th fewer U.S.","page_number":59,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"74e8f16f-f479-4ad9-97ba-3aae1ad8937b","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":59,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"ff805e60-892a-4506-a40b-827f84384a22","block_type":"box","text":"that currency gains value because the currency is wor th more U.S. dollars. This risk, generally known as “currency","page_number":59,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"03b3583c-1932-4d01-9b61-d98cdb15e604","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":59,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"9955e9b5-c780-4b6d-9585-ccf8b38d3d30","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":59,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"6f53d70e-06bc-4e22-b9ff-04648da834b9","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":59,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"c8958e25-833d-4521-9355-7b8d40f802fc","block_type":"box","text":"United States or abroad.","page_number":59,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"de5ace23-cfce-4f17-87e2-e9fc046f4628","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":59,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"fcc1e1a5-3257-4e0e-bd03-7d3c87dc8f19","block_type":"box","text":"Many foreign governments supervise and","page_number":59,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"7b80d30b-1ebf-4e77-a7ac-6080b5a1bfc2","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":59,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"101e5e59-939d-4e28-9098-f65056a3888a","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":59,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"9ed5ec62-7c01-4796-89ec-cacc9be2d8e7","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":59,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"f93e3c0b-931c-4d1a-a447-9193c415a95f","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":59,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"45999149-fc67-4c95-9fd4-b1583a3045e7","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":59,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"82678cac-0831-4015-93b1-91c0a25a2b60","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":59,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"cab734a1-3e32-49f6-ae3c-e39ebba098a3","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":59,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"4488d498-42c8-4109-a509-ed5b2e34d1f5","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":59,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"0856c6b0-0d81-47ed-9f72-0178f5044ca9","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":59,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"50c63e57-1bf4-4e25-8a05-55684c01e362","block_type":"box","text":"II-29","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e7f0614d-b3c3-49a3-935e-03b6b975b8d6","block_type":"box","text":"NM0926U-5977728-59/232","page_number":59,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8bfa37af-31e8-4742-ba22-35cd8e3f224f","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":60,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"fd98aa22-fcdc-4833-a05f-36976d17f9ef","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":60,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"eea08c20-6912-4c6b-afc8-017d6d723071","block_type":"box","text":"investments.","page_number":60,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"957b2940-30c6-450b-a90f-1c53d62b839a","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":60,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"05df24a4-13d1-45a0-81ac-83c5756fc59d","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":60,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"6c36bb4d-a67e-4d71-8cbd-9ae7f014cb67","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":60,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"cdde7354-85c6-4729-80b9-73f2748679c0","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":60,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"0ad30254-43a8-4f73-8ed1-8506dace93df","block_type":"box","text":"their operations. Also, the laws of cer tain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":60,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"09cd178b-d073-47f0-92c0-9e1c6ae228ea","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":60,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"f73c4177-b9b6-4534-8ecd-d12232da34e2","block_type":"box","text":"for a Fund to buy, sell and hold securities in cer tain foreign markets than in the United States. The increased","page_number":60,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"4f0a26c5-94e7-4bbc-a068-1216d3fabf3c","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":60,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"effae393-9604-404d-a3e4-7d8876204a31","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":60,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"743c4a2f-cf03-4993-acee-61b2ef705948","block_type":"box","text":"States.","page_number":60,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"6ce4ddcf-ea64-42e2-a311-884e168aad36","block_type":"box","text":"Publicly Available Information.","page_number":60,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"017c8151-ab6e-48eb-9404-edcc56319650","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":60,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"1f313a23-aa17-4e38-9b35-c144cac884ce","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":60,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"c7d191c6-5da7-4da0-ac72-e3b60e71fef3","block_type":"box","text":"accounting and financial repor ting requirements applicable to issuers in the United States. While the volume of","page_number":60,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"83a902a6-3d4e-4c69-a0d5-484e2fa720b4","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":60,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"a2c3b80e-0f2d-40d0-918f-24602a59adc7","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":60,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"1a9b5d44-ef81-4a37-a7cb-45e68318669d","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":60,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"b7d17e07-4d06-4fa3-8eaf-988e4f5d985b","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":60,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"f0b38b8a-4722-49c8-a765-580e65a56a9a","block_type":"box","text":"United States.","page_number":60,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"0db2c992-f736-47a2-ad3c-44bbfbeadf70","block_type":"box","text":"Settlement Risk.","page_number":60,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"7e4a0b1d-6cf3-4848-b9f8-194fec5c750f","block_type":"box","text":"Settlement and clearance procedures in cer tain foreign markets differ significantly from those","page_number":60,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"dbb60ea4-8fac-458c-95b9-cd5a473acc40","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":60,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"432e6864-317d-4cf4-b01b-6343de645e5f","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve cer tain risks (such as","page_number":60,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"3167452c-ff99-4937-aac6-d8b653e47c6a","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":60,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"a46828b2-0869-46dd-a419-57b6bd4b5450","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":60,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"22cb7de2-0612-4358-b80b-4ec890f678b8","block_type":"box","text":"risk of delayed settlements or losses of security cer tificates in markets that still rely on physical settlement.","page_number":60,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"c553aa26-bc7a-47b9-97d5-a5ad5483b9b9","block_type":"box","text":"Settlements in cer tain foreign countries at times have not kept pace with the number of securities transactions;","page_number":60,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"41e2daf4-b4d0-4cd7-bbe8-5b554d6bb411","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":60,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"38765df9-e4fb-4385-b8a5-afff9313ece7","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment oppor tunities and cer tain of its assets may be","page_number":60,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"6a765b8f-041b-4041-835a-4c50980fe8b0","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":60,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"f531f0c7-4a97-4ec6-9574-39a3e9d2379f","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":60,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"9e8768d5-5a3b-4bee-8275-efe41aea2b97","block_type":"box","text":"another par ty, the Fund could be liable to that par ty for any losses incurred.","page_number":60,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"7877b8f2-7806-4eae-981f-8b616d9c8731","block_type":"box","text":"Because of uncer tainties in the operation of settlement systems in individual markets, competing claims may","page_number":60,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"fd658a24-81ab-49cd-833e-896c8fdcfca3","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":60,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"f0ed3271-0128-4ff2-bb82-71b3d29a7a51","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":60,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"955f09fe-4b81-46df-b693-d5fbbef91c9d","block_type":"box","text":"Sovereign Debt.","page_number":60,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"896ea78c-8228-4567-b23b-71c664053f37","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":60,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"01dfb367-4097-4c36-90f7-b1c6002c7b78","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":60,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"2d8c12f8-4f29-4a7f-842f-8ff6d4251864","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":60,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"8530f7cd-13a3-4e2a-b50a-c90fe2a83c58","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":60,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"21945374-e9a4-41b9-a35c-8c31011c4dad","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":60,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"9a8353db-50a1-4563-8a1f-f56b985c84e2","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":60,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"c39c9f6c-cf83-42cc-9ec1-28a90ed1769f","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":60,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"e6bf9219-92bf-4078-be82-17308f24fa1a","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":60,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"ac3d5e61-0c55-449d-b115-965cf3ae7304","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the par t of these governments, agencies and","page_number":60,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"86b19add-7337-4607-a796-75c9ff0bf429","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":60,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"ec7889d4-955c-4b55-947b-9065babff107","block_type":"box","text":"economic per formance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":60,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"bdf3b476-a0e5-493d-8050-3213f3193de7","block_type":"box","text":"achieve such levels of economic per formance or repay principal or interest when due may result in the cancellation of","page_number":60,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"9077ebdc-c3a8-42be-8a45-b64e6b797a28","block_type":"box","text":"such third par ties’ commitments to lend funds to the governmental entity, which may fur ther impair such debtor’s","page_number":60,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"a8ec8b47-b315-4c36-9808-e5b7a31b1246","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":60,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"8fad6d85-a9d5-4e92-a339-4b0997f87c36","block_type":"box","text":"debt.","page_number":60,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"c09dd8e6-a098-4d4f-bc1f-cacbb48ca5bf","block_type":"box","text":"Holders of sovereign debt may be requested to par ticipate in the rescheduling of such debt and to extend fur ther","page_number":60,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"c1914d46-5216-4345-99fe-244a99b8da86","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":60,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"f96680d7-f5b6-4544-8fec-f633ad21c811","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":60,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"bd270e36-8de8-4113-b9c1-7f8c44780eac","block_type":"box","text":"II-30","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"68323a6b-288b-4290-907f-b67480657d53","block_type":"box","text":"NM0926U-5977728-60/232","page_number":60,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c8e358e6-5e7f-4afa-a19f-21881c0bfd41","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":61,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"10f5bc32-5a51-4401-85e1-f064647c440c","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":61,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"e0999961-cad4-4f3a-96f1-df13ccfdc73b","block_type":"box","text":"interest income (if any) received from issuers in cer tain countries and capital gains on the disposition of stocks or","page_number":61,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"13ceb023-03e9-4202-893d-69627fb5984a","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":61,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"0d074a51-2cd8-4f33-b51a-2c7f78e7276c","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":61,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"1c4aa5c7-0eb9-438b-bd74-eba5a623a325","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":61,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"c4d310b1-beb9-4b16-a55c-4969762c3c29","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":61,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"8b36dfa9-7c01-41d1-b99f-4b8da1e3f033","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":61,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"d00bbe3a-00d6-41fe-a4f9-fb321d80fe0e","block_type":"box","text":"down par tially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":61,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"dce72984-fcb0-4fec-995e-a0b5be138e24","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":61,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"db0d2a7a-1875-45bc-ae7a-fdd7504cd340","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":61,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"31849613-5fee-4b89-be91-c01fa3f542a9","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":61,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"da3f879f-88f5-4bce-a78a-353c18dacef6","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":61,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"33e1f087-5387-4f28-9dfb-ab977075360b","block_type":"box","text":"in the Fund’s net asset value.","page_number":61,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"414644a4-2d51-44cd-8f2d-06c5669dafd2","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":61,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"4e47cb4c-a79d-4241-8c55-49f1a5be9011","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":61,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"2c5315e0-b84e-4f91-adeb-8df50ef3fe18","block_type":"box","text":"trading par tner of, or foreign investor in, cer tain countries in which a Fund may invest. As a result, economic","page_number":61,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"f688020e-6bf5-4af2-93bf-38eb0e888547","block_type":"box","text":"conditions of such countries may be par ticularly affected by changes in the U.S. economy. A decrease in U.S. impor ts","page_number":61,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"a1daa3b3-17b6-4776-8509-1696771459ca","block_type":"box","text":"or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":61,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"abe5e7c8-73fa-4e05-b1de-422c9975fa97","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":61,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"e009eec4-8775-427d-bd30-73f6061935ef","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":61,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"22d720c4-1d61-4de4-96fc-d92e0c0375f4","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":61,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"80d9ea0a-f500-4989-89e3-ea9133a922f4","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":61,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"9b8172c2-2d98-4379-94dd-5cd4b9a2b79b","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":61,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"d99e4312-7904-49fd-b590-7290a3fd8a26","block_type":"box","text":"allies, such as cer tain European countries, and historical adversaries, such as Nor th Korea, Iran, China and Russia.","page_number":61,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"67d39f22-39c3-4a3f-a9ef-f7272bee6803","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":61,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"ad31c2da-0975-452a-b324-5e5fa78876d8","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":61,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"3d7aa5d6-7ddb-4565-a90f-7aad32c9655c","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":61,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"67487a1c-5e8f-4def-9546-29aea9d7e79b","block_type":"box","text":"Fund may invest.","page_number":61,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"e14b6f54-cf65-40c9-bd68-28ab08375afe","block_type":"box","text":"Funding Agreements.","page_number":61,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"3d9f2b3b-c436-4332-b7dc-9ccfd8f239b4","block_type":"box","text":"Cer tain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":61,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"97a76916-99e8-49cb-8014-445a18dbf934","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":61,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"27c279de-093c-4bdd-841d-00b14e1a4d51","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":61,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"f744127a-b7b9-48a2-bee3-becf2d5a7924","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":61,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"b30bc214-dda1-4192-83d5-46f4a1fa1b23","block_type":"box","text":"not be less than a cer tain minimum rate. The purchase price paid for a funding agreement becomes par t of the","page_number":61,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"07014b9c-97ef-46ef-a996-8ff054b507a6","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":61,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"1f119700-d0e6-4eb4-af98-3d3581817adc","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":61,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"76e11890-8cae-4317-9266-5c013a7d27d8","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":61,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"94c5b70d-e796-4bbe-b6df-f6d642a14b10","block_type":"box","text":"Guarantees.","page_number":61,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"661ea292-374c-45db-9700-daef46aa03e8","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":61,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"bc73b64d-ee65-4486-9c27-056bc9988868","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":61,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"70c61c6a-6b1c-40ea-9f9f-0c2c9c488df1","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":61,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"9bffe6fd-e304-4326-aa59-742517c59d50","block_type":"box","text":"Illiquid Investments.","page_number":61,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"55f22cd4-13c0-4838-9aee-5ede7f404ece","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":61,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"88480521-7ed7-4e51-8946-50e25bee123f","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":61,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"0be15a0b-dee3-4db4-a584-7e70be0400f0","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":61,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"a2cf626c-394c-4640-8b24-ee35c645e816","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":61,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"2d9be45c-53d1-48db-aafd-a3a03f9deba7","block_type":"box","text":"investments may become illiquid after purchase by a Fund, par ticularly during periods of market turmoil. There can be","page_number":61,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"80636c9b-f70e-46d5-8524-f8bdb9fe5359","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":61,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"44c7332e-192a-45a5-bb5e-178e66089df8","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":61,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"16d9ab2a-50b5-4ca9-8709-6c1392e1712a","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":61,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"c9cbfaa0-2d75-49a2-8ddd-5b5e7a10db3d","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":61,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"f1007b80-a8ad-4c19-a255-b9ea435a8069","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":61,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"6ed90d2a-56ae-4543-ad59-8d3c50cd25df","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":61,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"3d420acf-b6ec-4521-a881-10aa4b9d5919","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger por tion of the Fund’s holdings. If illiquid","page_number":61,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"324ba813-d0c6-468b-af3b-0fed266280e6","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":61,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"2020f20d-0195-4f18-a427-d19e7d9c7c41","block_type":"box","text":"defined below) will require that cer tain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":61,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"5c17ae1e-4d1a-4295-a735-8ec30985ce7f","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":61,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"f1ad9616-1489-4ac3-ad3b-4b7849c7bdd2","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":61,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"f0d2105a-0199-457f-948c-e174e22b2984","block_type":"box","text":"market oppor tunities. The risks associated with illiquidity will be par ticularly acute where a Fund’s operations require","page_number":61,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"6158943a-8059-437a-8d73-18d26cbf9e49","block_type":"box","text":"II-31","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"586c1c5e-9329-4925-8aa7-d0dd8580bbac","block_type":"box","text":"NM0926U-5977728-61/232","page_number":61,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5c9b8d23-f5b6-417d-8bdf-484d061719bb","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":62,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"5d813446-03c5-4770-8300-01954c24bbd4","block_type":"box","text":"shor t-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":62,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"2ae42076-7d15-45c2-8b73-9aba80723d83","block_type":"box","text":"Index Funds.","page_number":62,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"7ad867c6-72cf-4c6f-a213-63f116ca19ea","block_type":"box","text":"Cash Flows; Expenses.","page_number":62,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"aa6cb6de-b0f6-49c1-9477-fd7ffb50ae2f","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":62,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"5dd93872-25cb-4e48-a837-12e18d686bcd","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":62,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"54a3e5e6-09ab-4d0c-9742-27ea82b55396","block_type":"box","text":"Fund’s investments). The Manager will make investment changes to a Fund’s por tfolio to accommodate cash flow","page_number":62,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"fb7b9b15-9e6d-483c-b2b7-871b43ff7d4d","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":62,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"0102bd9a-8d57-4256-b499-716fcf7138d2","block_type":"box","text":"the investment per formance of each index is a hypothetical number which does not take into account brokerage","page_number":62,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"7ace25da-087c-47dc-a8d9-44821767cc74","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":62,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"d8e8e544-5bbd-41c6-ac1e-112dc0f9b28c","block_type":"box","text":"(","page_number":62,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"ecbc92e7-bbe3-42b3-8a16-9af0de1c8bee","block_type":"box","text":"e.g.","page_number":62,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"e90194fb-ad1a-492a-b5b1-5073f7a9a415","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":62,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"7a0c588e-5537-421f-9497-23450fe555a1","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":62,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"7d8cd23d-c7c1-45c2-9e39-6b534b49f130","block_type":"box","text":"par ticular security as an investment.","page_number":62,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"3bbd0377-93ec-438a-8bf8-3d89929333ea","block_type":"box","text":"Tracking Error Risk","page_number":62,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"aa0909c2-2a22-43c5-8731-8caaec0efa28","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s per formance","page_number":62,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"929d5295-e0d4-484d-81e5-6c6571fd3d9f","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":62,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"788cfd7f-eba1-4de9-ac13-84c1db224ced","block_type":"box","text":"instruments held in the Fund’s por tfolio and those included in the Underlying Index, pricing differences (including, as","page_number":62,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"8cf386b6-8d3c-407f-bc4a-94bc840f3e52","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":62,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"7e77b469-106f-427d-bea8-2b9f8806bd78","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":62,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"a8c527bc-823b-417e-97f6-2d29ec3a74c1","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":62,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"7b968ad8-f319-42ad-99d1-d17ee4ee59f8","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, por tfolio transactions carried out to","page_number":62,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"9856f761-293e-44bd-b184-eae3f031ab95","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":62,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"4542c86c-f790-4289-834a-f52b1facc53a","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":62,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"4b6a04f5-2bd7-4323-8e33-ad5ae372a559","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":62,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"5c9e40fe-d9a0-40bf-aeaa-91f2e7133334","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":62,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"89872026-7849-46a2-b376-18252b35aee8","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":62,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"80bb6fd4-4249-47fd-a4a9-f72547b608ac","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":62,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"fbbdf845-a373-45e7-aa93-a0ca3411cfbf","block_type":"box","text":"price growth that does not appear to be suppor ted by publicly available information on the business and assets of","page_number":62,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"9d63e30f-921d-4ce2-bfb8-13681a4f1703","block_type":"box","text":"the issuer, unusual or significant shor t interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":62,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"a25d0168-0dc1-41ad-bf56-15627cfde982","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":62,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"dc04231c-a39c-4019-bc56-03282d121f7a","block_type":"box","text":"identifies such behavior, the Manager may, where appropriate, aler t the index provider as to the alleged issue. The","page_number":62,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"ecc5a970-082b-4f75-b439-76d5cff5f84c","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":62,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"81870a6b-350a-466b-8eed-20eebf695d6a","block_type":"box","text":"the rebalancing of its index. 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Bloomberg has no obligation to take the needs of any par ticular Fund or its par ticipants or any","page_number":64,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"f64cebd8-3f4b-427a-b314-24d906cbcb0b","block_type":"box","text":"other product or person into consideration in determining, composing or calculating a Bloomberg Index.","page_number":64,"box":{"x":69,"y":75,"width":735,"height":11}},{"id":"22527c65-1614-4ef4-b327-16f8424f5590","block_type":"box","text":"ICE BofA Indexes.","page_number":64,"box":{"x":102,"y":98,"width":124,"height":9}},{"id":"609e0cb5-d6ce-4fec-831c-72ff7c6f5727","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with Intercontinental","page_number":64,"box":{"x":233,"y":98,"width":670,"height":11}},{"id":"6038d06e-41c9-4746-a08a-c09a2945c6ca","block_type":"box","text":"Exchange, Inc. and its affiliates (collectively, “ICE”) or Bank of America or its affiliates (collectively, “BofA”). BofA is","page_number":64,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"2f25d778-658e-41b3-980f-989d43106bbb","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":64,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"60f5afa9-91c0-4b1f-a1ec-e36a7d1d2acf","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":64,"box":{"x":69,"y":143,"width":793,"height":11}},{"id":"7bca5aff-9386-46da-8f17-d491167e1260","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":64,"box":{"x":70,"y":158,"width":785,"height":11}},{"id":"0babd426-2de6-402c-884f-d75bcfb2c24e","block_type":"box","text":"completeness, or otherwise.","page_number":64,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"320904a0-79e7-43ac-b922-6b83e5864b32","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":64,"box":{"x":102,"y":196,"width":779,"height":11}},{"id":"809c0bc5-2ec1-4738-a9ab-899b91ebfc9b","block_type":"box","text":"BofA Index. ICE has no obligation to take the needs of any par ticular Fund or its par ticipants or any other product or","page_number":64,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"8b1fd414-5849-4685-94db-b1be97367fb4","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":64,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"2648ccd4-908d-4a75-8bb8-8612fc1f306a","block_type":"box","text":"Indexed and Inverse Securities.","page_number":64,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"ec95c278-fc97-4d96-a226-0933788ee1cf","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":64,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"499108a9-5073-4238-b553-cc707c389804","block_type":"box","text":"par ticular index of value or interest rates. For example, a Fund may invest in securities that pay interest based on an","page_number":64,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"62c57cc7-12ce-4d88-b63b-bfd94e708f5e","block_type":"box","text":"index of interest rates. The principal amount payable upon maturity of cer tain securities also may be based on the","page_number":64,"box":{"x":70,"y":279,"width":814,"height":11}},{"id":"b6ec2c4f-eae4-4292-af05-48e6de7072b4","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":64,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"db94486d-87b8-4ac1-b49f-db7ec763a4f8","block_type":"box","text":"be subject to risk with respect to the value of the par ticular index: that is, if the value of the index falls, the value of","page_number":64,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"8d827098-199e-4be8-8f0b-de5b13e5e2c7","block_type":"box","text":"the indexed securities owned by the Fund will fall. Interest and principal payable on cer tain securities may also be","page_number":64,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"1593c0b7-26c7-457a-ac73-b87a72f7ccb3","block_type":"box","text":"based on relative changes among par ticular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":64,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"ee2a0961-e761-439f-9b03-f768a6eaeb45","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":64,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"b754e93c-5c70-48d4-8c92-edfc8e1785c3","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a shor t-term tax-exempt interest rate index). A","page_number":64,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"67830544-bcfc-4caf-8a4b-295492514592","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":64,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"047a3eb8-970b-481e-9a86-e7392dd21c42","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":64,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"da62d7ab-9aba-4f0f-b2a7-848b1bc391da","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":64,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"a044e6b4-df12-4c4c-908f-0b9193c897b9","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":64,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"183be359-542d-4e1e-a688-b2f77488e001","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":64,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"2aa6a846-1999-4b97-a24a-929aa383fa7b","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":64,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"e0382e1d-c039-44d6-9072-737b15989261","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shor ter-term","page_number":64,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"c3b9adf8-7370-4234-9feb-d60f39ad22af","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Cer tain investments in such","page_number":64,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"19dae346-888d-4670-aae3-0da4d732705b","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":64,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"b2ff6203-add7-47e4-a71c-be1e08b8fef8","block_type":"box","text":"por tfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":64,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"b4fb8d9d-88b5-458a-b3c2-854cccd58e75","block_type":"box","text":"por tfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":64,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"91975e92-0171-4643-8e64-fecbf581584e","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":64,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"72111877-7a43-4473-aa08-77da6c08cb34","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Fur thermore, where such a security","page_number":64,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"7a697c44-e81c-408e-9b9e-0df9c9d8998b","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":64,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"490bad35-e797-476d-9378-4201bc08b3f0","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":64,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"d577b4bc-74ec-43db-ad8f-8ff3f23ad2c3","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":64,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"07300bdd-a7ff-4215-99b1-1131f3c3db99","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":64,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"8aad1f44-d5ee-46d2-a58f-2d1f516b5795","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when shor t-term interest rates increase and increase","page_number":64,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"c1725c1e-21b8-4e2f-ae1b-5d6bbbe7623c","block_type":"box","text":"when shor t-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":64,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"5fdc7662-b37b-4aa9-ae6f-b90bf3afdbc2","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":64,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"31c587c2-914f-4a5f-b713-a2a50391e32c","block_type":"box","text":"Inflation Risk.","page_number":64,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"657e66a7-e081-4702-9852-c0fc343833fc","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":64,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"72f57191-26ef-4acb-9825-ffd75c16f7b4","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":64,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"22d033be-d11e-457a-8ec2-e83478dc7ca7","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":64,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"bd94812b-719b-443d-98c7-04b20ecf4cf8","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":64,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"ebec1abf-f9f7-4b49-9132-7fc32d8cf858","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":64,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"5c0084f2-4c6b-491c-806a-d4e6bf344e57","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":64,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"dd3115ea-c9e0-4c43-9c8f-57c304c100e9","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":64,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"d9423b98-e699-48d8-94fa-2dfbdec84022","block_type":"box","text":"the secondary market are affected by the per formance of the stock market overall. If IPOs are brought to the market,","page_number":64,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"7973094c-4724-44d8-9aa0-1cd186d20416","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":64,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"d9de8daf-d158-4ed0-a722-a86511650c93","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":64,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"c231c551-df1b-4c0f-8a19-98abe6c830eb","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":64,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"e57a7e3c-50fc-4114-990f-c230ec740759","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a shor t","page_number":64,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"0d831b07-5909-46cc-a91a-aec008693dd6","block_type":"box","text":"period of time given possible price volatility. This may result in increased por tfolio turnover and expenses, such as","page_number":64,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"8da20cb7-603f-4825-9625-338f0759b930","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":64,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"dc561b6c-716a-4bc7-8430-00e183511001","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":64,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"e6e2a394-f419-4db7-89ee-845e774ebd64","block_type":"box","text":"II-34","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1f29ea72-c132-4b18-84bf-8ab1ae3926dd","block_type":"box","text":"NM0926U-5977728-64/232","page_number":64,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d6d71755-746c-4ef2-b653-aa852f6bf535","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future per formance. The investment per formance of a","page_number":65,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"b47bcb65-7908-4090-a5e0-38ac86b1579c","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":65,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"38bdf7cb-1122-48c6-8690-195548840f69","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its per formance will generally","page_number":65,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"f6aa0cc8-a43e-4c54-a3e0-2b5e7a1b2a1e","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":65,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"20ae6997-9db4-45ee-9fdd-38bfe74c57b3","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":65,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"8c1ae97a-a2a0-46e8-a485-768b507aecdd","block_type":"box","text":"be available for very limited periods.","page_number":65,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"eea74269-dce2-4560-a190-21cd52a20b3c","block_type":"box","text":"Investment in Emerging Markets.","page_number":65,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"6a8d5134-6fd1-4e79-a53e-98028c5ee1a2","block_type":"box","text":"General.","page_number":65,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"7889e858-ade9-43b2-9f20-e6758af09b97","block_type":"box","text":"Cer tain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":65,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"4e8ad8c2-4dd6-47db-ada5-acd5fef0749a","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":65,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"98cdcdd4-6929-4bb9-a52f-d64bf5987f2b","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":65,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"21bd841c-9789-4329-ae1e-8345681143b1","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":65,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"6e863ece-0a2b-4a87-a84c-416d12b64e2d","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":65,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"eb1dd85a-3ef6-49ba-ab35-9ef56c5b0397","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":65,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"ccc32c52-c843-4404-a84c-c64b43069e7d","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":65,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"8b672417-f05b-46e7-9bab-382ac4923cd6","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve cer tain","page_number":65,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"2269ad41-ec1e-40ee-819f-06693e8ee56d","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":65,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"e251968c-73b4-4a95-9832-7e9324c6f342","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":65,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"a919221e-6300-4a9c-aa6e-7506cfd104e8","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncer tain","page_number":65,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"b80f2c60-9708-4b66-a77b-13524fd465f6","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":65,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"f8f39637-8aa2-4116-a988-afc920442c00","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":65,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"5f6190da-b1fd-4a4c-acf2-33eceefeb2ff","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":65,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"be1e4531-2ed9-4347-b0e5-ce0a9d2bce7c","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":65,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"87fe1473-c480-4e08-aff3-3d74dc452672","block_type":"box","text":"policies that may limit a Fund’s investment oppor tunities such as restrictions on investment in issuers or industries","page_number":65,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"91870eba-b662-4eb6-80d8-6193ea2cb22f","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":65,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"79549b1b-dc5f-43b9-a0d7-873b9ea1bbd0","block_type":"box","text":"private and foreign investments and private proper ty. In addition to withholding taxes on investment income, some","page_number":65,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"a79aeab9-643d-4a9c-8fba-6be72be9eef8","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":65,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"3266db02-4a3a-4fad-9294-9e46fd7c71ae","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":65,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"ed267b4b-f27e-4c1b-9423-7b0bc1c2e03f","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":65,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"db0c8bef-39f6-4aff-8591-58b80541790b","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":65,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"267fd1e0-a5f3-4e86-b489-30f1179d7c64","block_type":"box","text":"markets will continue to present viable investment oppor tunities for a Fund. In the past, governments of such nations","page_number":65,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"e5f8ed04-c3c0-40bb-8448-266d1f1203b5","block_type":"box","text":"have expropriated substantial amounts of private proper ty, and most claims of the proper ty owners have never been","page_number":65,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"be0f3c0c-4403-4560-854d-b731f9dc419a","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":65,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"0940fe14-226c-41df-8a3e-b8bc5e253b78","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":65,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"461534ba-e7a2-4489-8a2b-21235985f78d","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":65,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"6524c822-4f2f-437c-bbdf-0b1433007ae5","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":65,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"1e2fcb3d-38aa-43e2-a76c-00b60f2b11a0","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in cer tain of these countries and","page_number":65,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"ef8985f3-921c-4aee-a7b1-7e105b270ae8","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":65,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"349959d0-0ab0-4873-be90-b5fa22a9fff9","block_type":"box","text":"volatile than investments in more established markets.","page_number":65,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"c310920c-cee1-4430-a318-4292201de887","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":65,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"662503c0-81f6-4fff-b778-623444df2f04","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":65,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"aa87a9ee-42aa-4480-9a90-f80ca92b4203","block_type":"box","text":"financial repor ting standards and requirements comparable to those to which U.S. companies are subject. In cer tain","page_number":65,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"decb74e6-5f05-4957-a08b-9fd4c38856ba","block_type":"box","text":"countries with emerging capital markets, repor ting standards vary widely. As a result, traditional investment","page_number":65,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"c92eb0ab-6333-43a4-98da-fd0099ecd0e2","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":65,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"3e744c4b-d0a5-4493-a39f-14712bc25653","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":65,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"a11310ce-bb55-411b-89e7-a1f9aae53347","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":65,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"642f24b1-7b5f-4832-b0c0-d7884b404195","block_type":"box","text":"acquisition or disposal of securities.","page_number":65,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"b980175c-7b64-4b57-a6be-8e410c4af3fb","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":65,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"8795ba17-c2e3-48b7-988e-2b75c13e9ae2","block_type":"box","text":"in developed markets, in par t because a Fund will need to use brokers and counterpar ties that are less well","page_number":65,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"9fce3f46-2025-4fdb-bacb-f30945b2e1b4","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":65,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"61899c9a-9f82-4ea3-88f5-4099c7b1dcff","block_type":"box","text":"negligence, undue influence being exer ted by the issuer or refusal to recognize ownership exists in some emerging","page_number":65,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"e3cbc519-2438-415d-bd9e-2362a1358a42","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":65,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"707e579b-addd-42f7-ba80-b56409ba8f8c","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":65,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"faa36de8-0c5f-4dd4-b478-44649454d9bd","block_type":"box","text":"II-35","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2fa67b0d-aa41-440d-a1c9-0f01d6ada16f","block_type":"box","text":"NM0926U-5977728-65/232","page_number":65,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4551b7a6-0c8a-42d0-ba01-f03fed2c3df5","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":66,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"96d08fdb-42a4-426b-aca4-2500cbf34f21","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":66,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"5f075ecc-d8b1-49a7-bd92-3c3f13feadd8","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":66,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"9e2c6b0a-3b9f-4b30-bd4f-00cbcb0b9e49","block_type":"box","text":"characteristics of futures contracts. In addition, cer tain Funds may engage in foreign currency exchange transactions","page_number":66,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"580efd1d-365b-4839-841b-89bc95ee4813","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":66,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"5990d212-9654-4015-9e50-29af3ad4f5b3","block_type":"box","text":"per formance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":66,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"99fb16dd-ed70-4af0-9d5b-3a4dd1cb4b6d","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":66,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"988cb099-b87f-463a-a339-d0720ed300db","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":66,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"e19b745d-4162-4ab7-83ee-b34e3fc63283","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":66,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"74ee5c9e-bb2f-4be0-84b0-286731d3b4ff","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to cer tain","page_number":66,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"0bd1f049-9909-4bb2-b6af-1fded52867bb","block_type":"box","text":"additional or specific risks. Cer tain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":66,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"6549c70b-3b3e-4257-8a05-f06e57dab511","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":66,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"a10134fa-eee6-4100-9971-ec23f796df27","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":66,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"ef4c258f-43a8-4574-b97d-ed57b737109f","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":66,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"6b782eb5-aa4a-495d-9404-8d99d3f27fb9","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":66,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"f362bb48-d937-4e73-b756-b728724ba6e6","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":66,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"2fd0afaa-aa52-4958-b056-bb9493565644","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":66,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"cf4517e9-db97-470e-b7e4-3d2478ac424f","block_type":"box","text":"in potentially fewer investment oppor tunities for a Fund and may have an adverse impact on the investment","page_number":66,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"62afccec-0d32-4cbd-a237-f93bf291a06e","block_type":"box","text":"per formance of the Fund.","page_number":66,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"777f27f4-fc5c-46ae-ad7c-e3528e3fb4ca","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":66,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"45cac740-a252-4fcc-9bff-015d55bf33b6","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":66,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"a6f72a97-fefe-4f41-abfb-7b28cd1e12c9","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":66,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"e0b4b0bb-6947-49c4-80bf-26c09697b1d2","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":66,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"3815e567-46ea-4707-8f7c-23e76d4f1319","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":66,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"fa3e480e-aa13-4e97-838a-f4594d444e34","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":66,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"df94bfcd-afa1-4525-9b29-2c094f9a1824","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":66,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"ca6a2fc0-5587-4898-a558-25399d2867d4","block_type":"box","text":"common to most such countries is that the economy is heavily expor t oriented and, accordingly, is dependent upon","page_number":66,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"95208d9c-f3b7-489c-8d1b-019b8737f76c","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":66,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"3cfabfc7-4073-411e-bba8-bdad9c005505","block_type":"box","text":"in cer tain countries, as do environmental problems. Cer tain economies also depend to a significant degree upon","page_number":66,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"d51bca68-46af-4c9a-a823-d9491290996b","block_type":"box","text":"expor ts of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":66,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"17650f26-00ed-4f9e-a2a1-45abb23cda03","block_type":"box","text":"affected by a variety of factors.","page_number":66,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"2440be55-1d25-486d-8d62-086989157c61","block_type":"box","text":"The legal systems in cer tain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":66,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"d202aaa3-b33a-443b-83d0-747e3db9e3d5","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":66,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"ce5d67c9-23af-4a0f-9135-f9e1b9c95e7d","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":66,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"3dc152d3-5d41-494b-a9dc-7e249125a5e5","block_type":"box","text":"clear in cer tain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":66,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"b3a82eee-7eb3-4b59-b99b-5dc6d3448032","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":66,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"0e22821c-ca4b-4f07-baee-628f4020cad7","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":66,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"bbd1210a-266d-4348-b2d3-96fb4292d6ee","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":66,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"0e79335d-0a27-4b88-9080-732ab87027b0","block_type":"box","text":"substantial influence over many aspects of the private sector. In cer tain cases, the government owns or controls","page_number":66,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"2074b5bb-7b8d-4dd9-b853-a5b97df2cc37","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":66,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"b05223ec-1087-44cb-b76f-1555df1f4174","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":66,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"66cd26b8-c537-4863-b483-89a2a8a6a5ba","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s por tfolio. In addition, economic","page_number":66,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"e1997bd3-b5da-4101-9b0c-d06a84042586","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":66,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"b2946a35-5d5f-44cb-9c2b-0ffe99b34abe","block_type":"box","text":"nations.","page_number":66,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"7b7d64ba-2ec2-42bb-86ab-b5f8a8e3917c","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":66,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"4cc14e9f-d65c-4fb2-99ba-442e8cf19714","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial repor ting","page_number":66,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"bed0701e-a93e-4c3d-9e55-03734edfeebd","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":66,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"52818a5d-4695-41b7-8da9-511f08c0bd90","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":66,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"5f0979ea-f340-40cf-8763-b5005a315f4f","block_type":"box","text":"cer tain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":66,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"80a2f010-e8a3-4ae0-b0bb-ab76321d241d","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for cer tain developing","page_number":66,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"245d5037-2e71-4885-9c5b-c895055351e0","block_type":"box","text":"market Asia-Pacific companies.","page_number":66,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"88ea8e54-1274-47b3-8c0b-1452e825c198","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":66,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"3894908c-a89e-4358-851e-85fd0eb176b7","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transpor tation and custody","page_number":66,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"5bf5d2ab-95a5-4bc2-b475-299562fd9b14","block_type":"box","text":"services for such securities outside such countries.","page_number":66,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"815f81ee-ecc6-4070-80d8-238223000e77","block_type":"box","text":"II-36","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e328894c-aa5c-4155-832b-00f35e649f6b","block_type":"box","text":"NM0926U-5977728-66/232","page_number":66,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"413ac097-2429-493e-a811-3fe5585d65eb","block_type":"box","text":"Cer tain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":67,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"e806b09e-2121-4b99-ba08-48614296efdc","block_type":"box","text":"to commercial banks and foreign governments.","page_number":67,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"9fa2d398-0f37-4f89-a35a-71481136deda","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":67,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"cdaa08bc-a785-4026-b293-9f2f51d30cd0","block_type":"box","text":"on a Fund’s investment por tfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":67,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"3b63cd22-a6f2-421d-871f-c8122e2d86a4","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":67,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"f5dd26c3-0af3-47e8-9753-314d08e354f1","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":67,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"8dd18095-e25c-4b18-8b7c-3e4aefe3f5b8","block_type":"box","text":"practicable or appropriate to invest in a par ticular developing Asia-Pacific country. A Fund may invest in countries in","page_number":67,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"82337c1d-9750-41ad-b6e5-d57a82be5183","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":67,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"7b1b02a3-62c8-41ce-bf0e-fb23d0eb668a","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":67,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"403d4916-e38f-487d-8fb6-b045d3356dcf","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":67,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"1a4b2579-20bb-4a97-86f3-7412a2da1974","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, par ticularly their equity markets, by foreign","page_number":67,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"6ca3e83f-519a-4c46-8007-6def0a56aaee","block_type":"box","text":"entities such as a Fund. As illustrations, cer tain countries may require governmental approval prior to investments by","page_number":67,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"617f8cc1-ba56-4cb6-8b18-31535ecf51bb","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a par ticular company or limit the investment","page_number":67,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"24697022-218d-415f-9e78-6f2a2deca784","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":67,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"cd61a31f-d1e9-418d-a696-6e0ff51163ba","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":67,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"66f83c51-4d53-4d21-8b50-f203997bed55","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":67,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"f5213669-f1f6-475b-80ac-beadf1ea0698","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":67,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"2b996ef6-e543-4273-a7a2-60022aed91cc","block_type":"box","text":"have an adverse effect on the value of such shares. Cer tain countries may restrict investment oppor tunities in","page_number":67,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"8592284e-5a2d-461f-b83b-2d1e21c02a93","block_type":"box","text":"issuers or industries deemed impor tant to national interests.","page_number":67,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"5c2d9c80-af3a-4c80-83aa-d7e698c99d1c","block_type":"box","text":"The manner in which foreign investors may invest in companies in cer tain developing Asia-Pacific countries, as","page_number":67,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"365f6500-87e5-4577-a647-9192da85bb11","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":67,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"eb0cd1d8-7dbf-4a97-9084-b9132bb7ef33","block_type":"box","text":"a Fund may be required in cer tain of such countries to invest initially through a local broker or other entity and then","page_number":67,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"55269cad-e49d-40e9-9e3b-828cc424c8c6","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":67,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"36f2bae9-2a3c-4270-819a-5d607bef01e4","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied cer tain of its rights as an investor,","page_number":67,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"2c6f08f8-1f0f-4ee0-903c-e42bf195aa7a","block_type":"box","text":"including rights as to dividends or to be made aware of cer tain corporate actions. There also may be instances where","page_number":67,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"42dfa66a-95ec-451d-8572-7ceef4560488","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":67,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"95184bdb-e41e-4573-b01e-f887719bedaa","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":67,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"c42939e3-13b4-460e-be10-bfbc7c0e0edf","block_type":"box","text":"investment at that time.","page_number":67,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"eaa3a4d3-fdfb-4bb7-acbe-5d96bcb0333c","block_type":"box","text":"Substantial limitations may exist in cer tain countries with respect to a Fund’s ability to repatriate investment","page_number":67,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"03c649d7-8dda-40a7-b2b3-d4261e0a646f","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":67,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"4f061870-5553-479d-8371-1bd12acbca91","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":67,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"39e08894-af49-4506-9a3e-84336d7fcd98","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that cer tain countries may impose currency","page_number":67,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"96911c11-edfd-4867-8190-6493420761bb","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":67,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"a6f52dc2-c23d-4205-87df-fa329f4795dd","block_type":"box","text":"that such restrictions have the effect of making cer tain investments illiquid, securities may not be available for sale","page_number":67,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"bb2aa9b7-f0cc-48ba-8ca0-f65ffe297e57","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s por tfolio subject to","page_number":67,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"68cac991-09fb-4e06-bbaf-60b4960d9400","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the por tion of the Fund’s assets","page_number":67,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"2edf1552-48be-4dbd-b698-d93c57281207","block_type":"box","text":"that may be used to meet redemptions may be fur ther decreased. Even where there is no outright restriction on","page_number":67,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"3623a398-d5a3-4ee4-af98-66ae8bb80a4e","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect cer tain aspects of the operations of a Fund (for","page_number":67,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"c94cbaf0-3b01-4fda-95d3-2b63fc996134","block_type":"box","text":"example, if funds may be withdrawn only in cer tain currencies and/or only at an exchange rate established by the","page_number":67,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"51a1820b-6af5-439b-868f-00389071b2e1","block_type":"box","text":"government).","page_number":67,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"03314828-e9ff-401c-ab0b-f5fdadbc2e62","block_type":"box","text":"In cer tain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":67,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"207c2546-12cf-4a0c-969b-4238c142e08e","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":67,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"1669104d-6ce9-4df3-a236-d927b3e18e15","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":67,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"22dd7799-760a-49ac-b3b1-d1caabcd2862","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in cer tain","page_number":67,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"0c24a9b3-266b-47c1-b59b-ba524a40e579","block_type":"box","text":"foreign banks and other financial institutions.","page_number":67,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"60d7ba05-aa17-4757-8f50-097bcecfd485","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":67,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"cab31b4a-d721-4b1f-9084-704c2a5eb990","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":67,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"e1acf86b-3435-447f-b401-148ad87ff5bc","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private proper ty rights and","page_number":67,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"68159a56-46af-4179-8ec0-4674a786c410","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":67,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"2425b875-c316-4f92-aee8-81ec35f858d3","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":67,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"6048f0e5-2178-4c4e-950e-94cb158dd022","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":67,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"0bc20ce0-e02a-4eee-b6d6-9adff1cafd51","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":67,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"7042c274-fe94-451c-af75-51053e768292","block_type":"box","text":"cer tain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":67,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"566d3e2e-cd41-4956-af6e-b733d3d38e73","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":67,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"b06bb223-259d-4d89-b5d5-aa280981ec3f","block_type":"box","text":"II-37","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dc68c2b7-ea51-49ca-9876-e8b1fa63a1bb","block_type":"box","text":"NM0926U-5977728-67/232","page_number":67,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"161cbb3f-99da-45d1-a8ee-7d543e11d30b","block_type":"box","text":"little financial or accounting information available with respect to issuers located in cer tain emerging market","page_number":68,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"cd174b91-aeb7-4b4f-873a-5f4ee13a4ca4","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":68,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"9bb71ddc-468f-4bd7-bd28-4e25d96101a6","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":68,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"6f669881-2341-43b8-92ca-1f366423a5a5","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":68,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"ffc7e84b-cacd-498d-b36a-b8b801982f6d","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":68,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"758cb2c4-e1da-40d9-9fd0-a9967fadd421","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":68,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"e0bf326c-81d6-474d-a689-3d8cb1e0778c","block_type":"box","text":"foreign securities.","page_number":68,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"c262ff07-b1d4-4aad-bc7b-403df8a600ac","block_type":"box","text":"Risks of Investments in Russia.","page_number":68,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"2db658a1-3782-40c1-9798-1305a8fa5a3d","block_type":"box","text":"A Fund may invest a por tion of its assets in securities issued by companies","page_number":68,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"c4275e35-af8e-47a8-ac12-579ccd9e6f95","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":68,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"75fbe9c1-40e9-4fe1-b956-3bed270d8232","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":68,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"78ea893b-ea26-40bc-893e-e0a7ea723e43","block_type":"box","text":"and a substantial por tion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":68,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"27850d75-585d-4b5f-b7ee-a9e92748c3fe","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":68,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"565dd1a2-7a44-46ae-a35e-ec4e58fb9d5e","block_type":"box","text":"make obtaining accurate prices on por tfolio securities from independent sources more difficult than in more","page_number":68,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"b8d11a23-d6a7-40fb-bf3f-0d15a6c123eb","block_type":"box","text":"developed markets.","page_number":68,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"608f07d4-19e0-40a2-932f-3d131da3410c","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":68,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"28c30870-ed22-4cf1-9090-bec71b263b2f","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":68,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"26626664-2e83-49b2-8ac9-357b7ab94b95","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":68,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"7e5b8d3f-92a2-4290-84a8-1d01753c4fa1","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":68,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"02a0d548-ed9e-44cc-b163-d3cd4b385c2c","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":68,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"908f4168-634f-433a-84c8-2875b69e9a7c","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":68,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"0a185533-bf97-41e3-8264-2dfa662bc6db","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":68,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"faa96acf-205b-4f3e-b7aa-c8ad4cb1df72","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":68,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"3ff3aaa7-13ec-4879-a72c-5ae6a4bfe5fe","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":68,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"5536be72-cab5-492c-acb0-cb37051e0df0","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":68,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"84dc7df1-654d-4e84-8e1c-9ba188f2282c","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":68,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"9280c4a4-12c1-426d-84c7-6cae67513686","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":68,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"b0b19617-048f-48da-bdd5-764b42c95162","block_type":"box","text":"relating to title or corporate actions relating to its por tfolio securities, it may be difficult for the Fund to enforce its","page_number":68,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"080d04d3-f805-486b-859f-f13f95139c25","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":68,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"d0395a4b-aa7e-4814-abde-00ed211a0b67","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":68,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"23697042-8f1f-4ad7-93e6-89fd39587de6","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":68,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"1d88ae78-6835-4003-ad9a-9265d52013d9","block_type":"box","text":"In addition, Russia continues to asser t its influence in the region through economic and military measures, as it","page_number":68,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"6a24c2bc-882d-477c-9c81-5bd566ec2d22","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":68,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"0c73e242-7ad3-4f66-984e-f567e96a4dae","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":68,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"4e5558a7-4fef-49ed-ba73-b47aa969fba2","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":68,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"4ddacb9f-9983-4845-922d-8daf86c7e03f","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":68,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"3b3d8f37-1876-4f09-818e-114e0d6c3522","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":68,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"4f42ab92-bbd1-4f85-ac03-850e40d7c82c","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":68,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"005feac5-4112-4715-a90a-3cd0f092f7aa","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":68,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"ec929d71-b650-4b8c-bbad-c54c7a50424e","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":68,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"a1db011b-ffc3-43e4-a343-41c28b55c3fa","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":68,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"8ca3b629-02eb-4e43-8d9b-b34d7b218c6a","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":68,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"6b0dfe06-009f-4102-8241-1ad5527cf3d9","block_type":"box","text":"threatened responses to such military action may also impact the markets for cer tain Russian commodities, such as","page_number":68,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"698f981a-a7a7-42a9-862a-9d73e0ed6ef0","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":68,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"6d30902b-6f79-4af4-8e29-abb68477d50b","block_type":"box","text":"sectors globally.","page_number":68,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"498c6ae7-36c8-4c83-81f8-58b3c6063a49","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":68,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"6dd9ab11-08d9-4cfe-a043-a54244d06733","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting cer tain securities trades, cer tain private transactions","page_number":68,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"aa38e25d-2a72-42c3-a3d3-cf0e3d88f5e8","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against cer tain Russian individuals, including","page_number":68,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"d0dfe379-4d4b-4450-b173-c69c58cbee44","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":68,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"8be76bda-25d5-48fd-af33-1768f5f814bc","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":68,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"ee37c933-b712-4be7-800e-207015f175d7","block_type":"box","text":"payments. These sanctions, or even the threat of fur ther sanctions, may result in the decline of the value and","page_number":68,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"3d2cc28f-42a6-4282-9941-6b1e15d1969d","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":68,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"21cc578f-40eb-421c-b2a3-64bb3fb8a419","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":68,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"07cd4105-f66c-4e93-8a1f-089cf828ddfb","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":68,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"5ba79394-04b9-41b1-be33-de62e6077689","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":68,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"a5d0452c-3c45-48b7-8cd6-2082c4188211","block_type":"box","text":"fur ther impair the value and liquidity of Russian securities.","page_number":68,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"cd44391d-da39-4831-b463-2681d92c2aca","block_type":"box","text":"II-38","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"359c2066-f590-42be-b01d-c60fd52e27ab","block_type":"box","text":"NM0926U-5977728-68/232","page_number":68,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4fe6c4ff-92fe-41e0-97dc-59e319f4be71","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":69,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"9bd17d10-a178-4c6c-b082-1b29e09c79e3","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":69,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"a5792404-bf6e-433d-af71-a918608215b4","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":69,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"b1279a58-c26e-4933-bc28-b8b6e8210b48","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":69,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"1fe93ec3-256e-4dfd-a3c2-0bdde87e9ff3","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":69,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"ba544853-2f87-4274-81cb-1bbf1cb75eac","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":69,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"1f9aebe4-8e6b-47f5-8a87-d31f1940890e","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":69,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"b6bfea30-8f06-40c2-9b1a-45cceba8a9d2","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":69,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"7dc0d8d3-e7d6-4cf0-b179-a3924b4c5a60","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":69,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"9adcca4f-0831-437e-bbcc-c828f49f10cb","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":69,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"290e170b-e7eb-4ae9-9e70-efe0b9a57d05","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":69,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"cf317dbb-cc62-4649-acdd-b03dc8de51c0","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":69,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"6df44aa1-2a34-4e85-bd64-3461165dbeab","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":69,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"c9c40f15-9292-4c75-ab6c-c94652350d4e","block_type":"box","text":"of assets and proper ty or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":69,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"487226fb-458f-48dc-90b7-660b04d0a2fe","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":69,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"7d0989ab-1ebb-4ea2-84ec-53fa91da3fb6","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":69,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"938e651e-f737-4c73-a867-a7526681ef45","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":69,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"4894aba9-557e-4b49-bc5b-1c2ac6aed2d7","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, cer tain entities and industries. Newly privatized","page_number":69,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"1fafb871-5ef9-4a89-8578-184aef48140e","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":69,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"f9ea85f2-5b68-4b3a-acc7-77ef59a6b3cf","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":69,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"33a032cf-547b-4a53-84cb-ad0ddc30df8f","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":69,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"0c997f0f-d965-421d-b8d6-f8f8e32a6b4d","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Fur ther,","page_number":69,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"e13b41e2-943a-4cd3-a079-8d02c9045d14","block_type":"box","text":"under income tax laws imposed by the Depar tment of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":69,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"4ef301ad-591b-47cb-ae59-cc0caba5c13c","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":69,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"7c4a034e-0362-4499-b599-0c50b16a58fc","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":69,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"c9710ce3-e686-4cd2-bca1-10f8fe5a7762","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":69,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"0023e0b8-89a3-411e-b680-a1e47a043474","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":69,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"fce681b7-74aa-4804-8493-83d4e19397b9","block_type":"box","text":"impacted.","page_number":69,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"ec1df3e1-6723-4a1d-930f-3c6c930860ca","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":69,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"4c170b4d-624e-431b-92c7-bfdbbc63ae17","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":69,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"87966e5d-c70c-4b03-b2f3-eb60e3b7aabd","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":69,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"43cec699-81ff-4c92-b91b-b263b4bf9a51","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":69,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"a0e4c4f8-9054-445e-9869-c35ae209074a","block_type":"box","text":"Arabia has historically experienced strained relations with economic par tners worldwide, including other countries in","page_number":69,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"2c2990fa-68f8-44c4-a834-6b1cf156e213","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":69,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"79f2e7f3-6f9d-4af0-851f-524c8b5eb59d","block_type":"box","text":"including terrorism, may cause uncer tainty in their markets and may adversely affect its economy and a Fund’s","page_number":69,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"e2a8e38d-4c58-4892-bf09-d86f18004fa6","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":69,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"90d66151-ff09-4af9-bb5b-215133a3f5f4","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":69,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"9084f5f7-4d0d-4c21-bf33-b4209616d38d","block_type":"box","text":"por tfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":69,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"1c981937-facc-4a22-9f81-91264063343e","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":69,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"af5ae248-b3f1-411a-ba24-74f33f97ea4d","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":69,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"010c38c3-6e47-44cd-ad19-fee4f1b5b582","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":69,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"5b372d94-de19-402d-bcc2-2ee64a4a78a8","block_type":"box","text":"economy.","page_number":69,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"dc5d7491-825e-40fe-90f5-68909ff99acb","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":69,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"24ce2f69-2e9c-4da2-9392-00deca41a944","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":69,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"cf87a5a5-8546-4475-9fde-a1e028bc2beb","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncer tainty regarding the existence","page_number":69,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"4e439ce2-5a44-4370-805a-e416ad434aad","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of cer tain Saudi Arabian","page_number":69,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"fc2685cb-a5e4-4289-85b6-17073e130650","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":69,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"00f2696e-3ee4-4aac-b92a-a8825152577e","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":69,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"a5648eb1-a29d-42a8-911d-4df44359133f","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":69,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"1910fcd9-fcc3-44e2-9775-e8072a26c0c6","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":69,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"ff3626e3-d7f7-4ee7-8138-c5522d30d1b0","block_type":"box","text":"typically the case for investment managers.","page_number":69,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"fda0d9c7-f18e-4a04-b1f1-1bd5e09a4e91","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":69,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"e1b12020-2150-4522-92ad-d38eefb6d6bb","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":69,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"a32231ee-825b-4378-b7e8-6c26066c62e7","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":69,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"a3dd4aed-ffaa-4a23-a6f3-7e5f55d3437b","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":69,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"496699b3-b456-4bac-bf8f-77e2c654ec01","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by cer tain groups in the","page_number":69,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"556cf31c-5185-4dfa-a333-8eecd807ffa6","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Fur ther developments in U.S. relations","page_number":69,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"849f94e1-ac40-47fc-8fd2-7eaebaf45f69","block_type":"box","text":"II-39","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1eb8cdf9-7ecd-4ce6-9380-7946a34f5ad7","block_type":"box","text":"NM0926U-5977728-69/232","page_number":69,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6e66a803-4c2d-4b0e-9689-7a16dbb046b6","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":70,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"cf520d57-106f-467e-824f-98379a1221ce","block_type":"box","text":"significant, and in some cases the most significant, trading par tner of, or foreign investor in, Saudi Arabia. As a","page_number":70,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"bdee5376-2f89-4116-a014-330c56e2b7a3","block_type":"box","text":"result, economic conditions of Saudi Arabia may be par ticularly affected by changes in the U.S. economy. A decrease","page_number":70,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"2b052032-34b8-40a7-b847-14d4f088350d","block_type":"box","text":"in U.S. impor ts or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":70,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"2df15055-d7dd-4b97-a1c7-90d5f6f4cb44","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":70,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"fbdf37a6-3f36-4267-a4fe-270d80e4ef6c","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in Nor th Africa and the larger Middle","page_number":70,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"6032cdde-e56b-4720-9c82-54121a3b5ec3","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":70,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"092e6c4d-b8a6-4f1c-b8d4-250e76e75bda","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s por tfolio.","page_number":70,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"5b5bbf85-805e-46ac-995e-28a63fc22c6d","block_type":"box","text":"Cer tain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":70,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"8e99f92a-268c-4dd2-b142-79db4ec0cc60","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":70,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"b3012e26-06fc-411a-845d-9df82ff8c673","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":70,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"8b392e82-9361-4b9d-91d7-7ab7fe7e31ff","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":70,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"f0da98b4-3d16-4a40-b1e7-61b5ef445187","block_type":"box","text":"will be indirectly subject to those risks.","page_number":70,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"a51ac1d8-9c4a-481c-b2ac-fa5b2bbd2bfd","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":70,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"159c7fe0-fda2-4183-9229-bbd41b3566f3","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":70,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"d8d42daf-77a9-48bb-98ec-b8a345f24786","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":70,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"8e299130-3457-4d80-b5ad-80eceae279a9","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":70,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"e465b6c1-7c1e-43ad-8bad-b6a7af7a6f13","block_type":"box","text":"on expor t of natural resources to key trading par tners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":70,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"bca22ee5-3973-4aad-bee2-f86a40e752ad","block_type":"box","text":"key trading relationship that disrupts the production or expor t of natural resources will likely negatively affect the","page_number":70,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"63ce2cbb-247e-4421-a193-1931c9c1e798","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":70,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"33fe39b9-3058-4de8-a047-351083b0aab0","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":70,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"0e26d60e-8c5b-4dd4-af72-bd94b792cc23","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":70,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"c65b9f31-e948-4f33-b9e7-46f51966839f","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncer tainty. Friction continues between the","page_number":70,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"a48219d6-c361-4037-a34f-64b0a2272c11","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":70,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"9fa8cfab-2823-477f-bb46-07803dc5a68b","block_type":"box","text":"and sectoral sanctions, on cer tain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":70,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"145047aa-5def-403d-8198-2da8a265d684","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":70,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"b6e733d6-641d-4b91-bc2b-274bfe6d2492","block_type":"box","text":"against Venezuela in an effor t to effect regime change. Military action, sanctions, or even the threat of fur ther","page_number":70,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"c0230f34-b9dd-4ada-b867-01ad3ba1a166","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":70,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"aa2ae0a1-c540-4326-b17a-07774a8d5fd8","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":70,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"e4582793-614c-46ad-bf77-ae97338b105a","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":70,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"d9348182-0aac-4578-ba8d-4952020b182f","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":70,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"abc5d90f-bd9b-4b19-b771-d769fb214a86","block_type":"box","text":"impact on a Fund’s investments.","page_number":70,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"fb8ab7b1-d98f-42cf-8af8-b9330c251ad3","block_type":"box","text":"Brady Bonds.","page_number":70,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"b6e6d1ce-08fd-4c07-b4f2-1079ea836dbf","block_type":"box","text":"Cer tain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":70,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"abd0d3f1-5958-494c-ad51-39d5518b6284","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":70,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"e26d62b9-0c6e-431d-90e9-bf4b727e85d0","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":70,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"6123a082-216f-4f6e-bf8c-e05500932609","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":70,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"b27ab49d-97a6-4d99-a46a-df4738bf8db5","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":70,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"db1e410d-9451-4e37-920a-e90fda3b3733","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":70,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"a8c6dcfe-6f1f-44dd-a6bf-b1c0e521754c","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":70,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"baeead1c-38b3-4d29-a866-34dcbf566b1b","block_type":"box","text":"2000s, cer tain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":70,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"817360e5-c95e-466e-ae04-f6baf38696ef","block_type":"box","text":"Venezuela.","page_number":70,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"e476709b-728d-471d-94e5-af78f60cd821","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":70,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"34632690-3ba9-437e-86b4-590a4a5fe3e4","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":70,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"5e1db32c-9875-470b-bb83-639b1bff9fe9","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":70,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"3f996a32-f81a-4030-bc11-5a1e711e077f","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":70,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"ce161b25-6ca6-46e1-985b-2cbb8835da8a","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":70,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"2815f681-8c3f-400e-9c0c-e307d6ec8aed","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":70,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"af14874b-782a-41bc-b71f-a9be33954f40","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":70,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"790f82a0-1bad-4e23-8c4a-8400ed74edf5","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":70,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"485e1260-83b6-4f77-bcd6-46afa2c2fb23","block_type":"box","text":"Cer tain Brady Bonds are entitled to “value recovery payments” in cer tain circumstances, which in effect constitute","page_number":70,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"67edcca7-76c7-4871-86d2-7898bb28a331","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":70,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"b4087bea-46fd-4b51-8872-15a3f7b04d8c","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":70,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"4696f76f-8fd5-462d-8765-167c6c022f89","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":70,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"43a26fd1-8977-41ad-9093-a6965e55082d","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":70,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"3ae15844-6515-4bed-ba2f-48b8bd82ede7","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":70,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"1bf3c281-3130-4653-9170-a6d716142920","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":70,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"f8d9df78-d3c6-4d89-a829-9102c9d70912","block_type":"box","text":"II-40","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"aae14de0-14fc-476e-8aba-3ed23cfa158c","block_type":"box","text":"NM0926U-5977728-70/232","page_number":70,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7adf9d08-42f9-4576-9a57-706aeac5e45f","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":71,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"9ea187b7-3f6c-4bcc-b4fa-ab3f10bb3032","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":71,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"0616bada-dba7-4463-8d09-73769cd436f0","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":71,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"ecdb017a-6ca8-409c-a06a-6cfcfb595f92","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":71,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"72403829-aec6-44f8-b761-cf4c05218d60","block_type":"box","text":"China Investments Risk.","page_number":71,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"29a61401-d391-417a-8fcb-e4b2911a1feb","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":71,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"be0704b4-6489-467c-a596-ea57ec2a987e","block_type":"box","text":"including cer tain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":71,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"955cddc1-28aa-4e9e-9e33-64ef6515bd42","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":71,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"3dbd7ac3-62b9-4c70-a129-721a604c5a27","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":71,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"aeae2c5c-d469-4e8f-b1aa-0f45f67ed165","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":71,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"5cba759c-53b2-4990-a95c-b0e6fe4afbb2","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":71,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"ea750581-6617-4f35-ac9a-80fb51cbf1b3","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":71,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"ce0e1afd-07f1-4d77-a2e5-1e5a19a577f6","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":71,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"a714b177-4e60-46af-9257-09143cb7af3b","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":71,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"20402b58-8166-43bf-8d12-00f5f6f96a98","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":71,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"54574eb5-323b-43e2-acbb-6f8ec987b63d","block_type":"box","text":"even fur ther. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":71,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"9204c149-6a8b-48e6-a93f-e2406cacb6ec","block_type":"box","text":"Kong may cause uncer tainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":71,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"e4ca7a32-fbbd-4763-8205-376889b31744","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":71,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"e126929d-8f60-48ad-ab30-52183ad9e448","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":71,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"88a3eac4-a98b-4335-819d-541967f22ce8","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in cer tain","page_number":71,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"8d1a0d1d-9652-4b16-9023-5986d2ca4f33","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":71,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"8a9d5e80-7017-4b97-9e57-455e6bc91ab4","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":71,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"4884cdf3-3d7c-44d6-aa1a-5053756326f8","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":71,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"7ab7a17f-98a3-4d6d-ab34-a375b9219881","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":71,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"1cd2c8d5-5957-4227-9a41-00bc1d2125af","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":71,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"562ceee2-b36b-4896-afac-3ccdb5ff7314","block_type":"box","text":"military conflict. Additionally, China is alleged to have par ticipated in state-sponsored cyberattacks against foreign","page_number":71,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"d593b05d-046a-47c0-bb1c-c7cf9c0df42e","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":71,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"1942a247-25ae-4298-9f17-fe81f306dbde","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":71,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"f702a09e-d9ee-4e02-986d-1771d72fea41","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":71,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"2602c895-62f1-4c3d-92ec-c1d416e91e67","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within Nor th Korea. These situations may","page_number":71,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"e14b1fc5-3ed0-46ef-ba19-23f2ac37eb1b","block_type":"box","text":"cause uncer tainty in the Chinese market and may adversely affect the per formance of the Chinese economy.","page_number":71,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"b7d916db-e20d-4ef1-ba24-bcaad1f2bce8","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":71,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"33e651ed-97f4-4f3b-b376-1c07b791b306","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":71,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"7e616f8d-6b0d-4090-ba68-0e8e071c6416","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":71,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"ba3a6363-b980-4c82-bafa-38565a45d4ea","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":71,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"fb417f28-e480-452e-87de-cb32ffa416d9","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":71,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"55cac2d3-74ab-4e7a-af7d-11e0f38cf4d2","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":71,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"57428c08-7fbe-490b-92ae-00c1bd9d265a","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and proper ty or","page_number":71,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"d1658d53-0de5-47ed-b250-21433854617b","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":71,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"a794e324-3e65-43de-bd35-e3c26dd13341","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":71,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"f2d48b8d-131e-4e5e-be7d-77964639a8d3","block_type":"box","text":"restrictions, a ban on “naked” shor t selling or the suspension of shor t selling for cer tain stocks. This may affect","page_number":71,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"167ee8c9-dd5f-455f-ba9a-92bea3827e7d","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":71,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"89d09aae-45cb-44d1-a98c-79bd2d708f40","block_type":"box","text":"Funds. Fur thermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":71,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"7c77ad17-c0b1-4dcd-8d32-6ff701ab5e31","block_type":"box","text":"affect the per formance of the securities markets and as a result the per formance of the Funds.","page_number":71,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"d3a7b919-fe35-4691-be59-6006d52a57c1","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":71,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"0bb3d5aa-9a79-4b6d-8791-76a3a60ae854","block_type":"box","text":"brokers and other par ticipants than in the United States. Accordingly, issuers of securities in China, including","page_number":71,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"d6b76777-67a2-4eb7-ab73-0c812c24760c","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":71,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"692b00ae-fc30-4ab8-8541-87daf7f55ea5","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":71,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"1b54ff76-9a44-4d1a-8938-7e2ff4103209","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":71,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"6c560797-ceb6-4fc8-b899-694ac96ef84e","block_type":"box","text":"information. Securities markets in China are in the process of change and fur ther development. This may lead to","page_number":71,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"62530523-2353-418f-8f98-59c818dbaabb","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":71,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"d6f6d1aa-7bf5-4b65-910c-1a4119b511bf","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":71,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"7fb96fd1-fd15-40ca-b038-26a9a84aaae9","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In par ticular,","page_number":71,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"a65168a7-bc6b-4cb9-a285-fcd2ecd15370","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":71,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"3cbcc170-f8c8-496d-bd91-bc00e952bd96","block_type":"box","text":"sub-custodian.","page_number":71,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"1ed3d97a-ad1b-46d3-9fb7-c469e650b271","block_type":"box","text":"II-41","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6c3b8b25-0a22-42c7-a60a-7b727bb9765f","block_type":"box","text":"NM0926U-5977728-71/232","page_number":71,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"067b417b-0da8-4b1c-ade1-6ca624e40dda","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":72,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"4b2b7c28-8016-4428-9d38-a31948941ae7","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":72,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"1aaadf4e-d5b7-4d10-9d1e-8059a32a15f3","block_type":"box","text":"on investor protection considerations.","page_number":72,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"9a8a170a-106e-4607-9907-255144707838","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":72,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"092c411c-1187-460b-84f2-2c9e522996ef","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":72,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"d5765471-2d6a-46b6-818d-2762cd577a6b","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":72,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"fda103e6-b68d-4e94-ad95-656abb2d3866","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":72,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"1adb5621-b7ee-4ddf-88b8-f8d8f79fae36","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":72,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"d001c6c3-dc71-4c21-b518-6066d1f8f2de","block_type":"box","text":"headquar tered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":72,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"f6474dd2-5bcd-4f11-8cc5-b3e1ee971016","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":72,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"e0191772-ade7-4e53-80ae-958c4674088f","block_type":"box","text":"per formed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":72,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"0fb8d6b2-a71e-4271-9d08-60ba2b8d3c8b","block_type":"box","text":"per formed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":72,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"925ffed3-af02-4e8b-bc7d-4076a1b47534","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":72,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"3d961783-724f-4291-b8bc-6066a656b8ac","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":72,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"530c5bcf-9a58-4ee1-9492-f6d7de574088","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":72,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"9623496f-02f6-426c-bb65-c67d4e911974","block_type":"box","text":"accounting firm.","page_number":72,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"30418acc-b7f6-4288-8018-46cf508d32f3","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely conver tible currency and is subject to foreign exchange control","page_number":72,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"700b7007-0a18-4105-a80f-1d7fc91bb3ba","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":72,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"367a5bef-5ea4-49b6-a753-3fcdf4d1c8ba","block_type":"box","text":"negatively impact per formance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":72,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"759683df-c379-4bdd-9ec7-7f56aae5f5a9","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":72,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"e6fb6039-2fe5-4fc6-8235-2f5c83a39728","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":72,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"ba731b1f-a5a0-4ced-bfef-f25cd8eb20a5","block_type":"box","text":"which have a substantial por tion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":72,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"e5c3a115-a8c2-42c0-977b-0aa706c606b8","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":72,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"66b693cb-a67e-4f41-a53b-c0ff5c997db7","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":72,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"aa0acd0c-58e6-4b5f-83ff-c214fa8f874f","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":72,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"3a2edc08-8f61-47c2-9903-701ee0d4453c","block_type":"box","text":"RMB (“CNH”).","page_number":72,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"45a82404-2faa-4ace-b60a-a991547d8748","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":72,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"c9dff4e5-ce62-4cf3-add7-cdca35e094f0","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":72,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"17e992d9-7854-47d7-ab62-b83a9d0a398e","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":72,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"f9163bd1-693a-401c-bf19-4af2439fc4d8","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":72,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"14cafb53-634e-411f-935e-01b4a2e78de3","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":72,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"00a19a13-1895-4863-a297-fcfe3f9481eb","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":72,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"e92405ec-2345-4c6b-abea-6245026ee7c4","block_type":"box","text":"represent equity ownership in the operating company.","page_number":72,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"f9c77753-2d79-49e1-b8b2-d948ac221ab4","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":72,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"63ba345a-4b47-4b02-97c8-eeaf06e06f0d","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":72,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"7eb7db76-7006-4aaa-93da-c0246ca33138","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":72,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"c167561c-2ebf-45c7-a1f0-b204ebb2fa1f","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":72,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"ba495c7c-8a5e-4453-b9de-eae473df8614","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":72,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"f7e5338a-55e9-4a7e-a134-f670349c160d","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":72,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"b529dd82-c031-45b3-b5a4-01bfb17daeb7","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":72,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"7eadb10a-ff7d-4fa1-b745-b542333929ba","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":72,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"41b99ef7-9bd7-433a-8db8-747f262a73a7","block_type":"box","text":"company and the value of the U.S.-listed stock. Fur ther, the VIE contractual arrangement would likely be subject to","page_number":72,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"20c4dcc5-1087-4da5-9f8a-e720ddca11ca","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncer tain and could be","page_number":72,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"0d447959-32db-467b-9fd7-53b852c75402","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":72,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"fe84bbf6-8585-472e-940e-84b0abf7c61f","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":72,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"8d0f2d0b-572f-459a-a919-42274add2fbd","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":72,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"adc55494-6d06-4188-945e-031c1f0e3c44","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":72,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"85521d79-e937-423c-9d47-fb295739a53e","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":72,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"d65f0efb-36c9-463b-8838-3404c94106b9","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":72,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"b7735341-31b2-4e78-a538-be86f8077c16","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":72,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"c487951b-3077-4b77-90a4-6c52c37ffcc1","block_type":"box","text":"losses to a Fund.","page_number":72,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"42262425-f2d9-4ad3-9d67-c5eacf6195fb","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":72,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"d53dcb5f-b563-4555-9491-9d1449da3e6b","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":72,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"1e318191-6928-4565-a798-d268eb2fe804","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading par tners over its expor ting of its","page_number":72,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"fc841400-e497-4198-a5d0-bcffd2aab1e7","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":72,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"23fff0bb-fcfa-4145-a74f-3399a568a350","block_type":"box","text":"II-42","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"802c251a-343b-4dd7-8995-cfc068f13c80","block_type":"box","text":"NM0926U-5977728-72/232","page_number":72,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"069ef393-cc8a-4289-82e3-e4625ea0ce6e","block_type":"box","text":"expor t growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":73,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"29ad6e4a-f9db-40ac-bb49-2fafd7197bb5","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":73,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"984b117d-9f68-4eda-aac2-783433bae4ac","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":73,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"bd15dc48-f0be-4666-8230-ed4180730fab","block_type":"box","text":"economies of China’s key trading par tners may have an adverse impact on the Chinese economy and the companies","page_number":73,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"8eef5333-d268-459d-a520-7b214021a5ff","block_type":"box","text":"in which a Fund invests. Cer tain Chinese companies (which may change from time to time) are directly or indirectly","page_number":73,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"c61d82b7-17e0-4055-a8c0-85e177da42f7","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":73,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"bfc02e65-4ab7-4701-935f-9c7f3c96ea5e","block_type":"box","text":"rights or other concerns of such government. For example, cer tain foreign technology companies are subject to U.S.","page_number":73,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"d8229cfc-145b-4dc8-b040-1f7d997191f0","block_type":"box","text":"expor t controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans impor ts of","page_number":73,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"6a49b7f8-f55f-477e-836c-0035ed2ee4b6","block_type":"box","text":"goods produced in cer tain regions of China or by cer tain Chinese companies due to concerns about forced labor.","page_number":73,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"c6b69c7c-b1f8-4d68-8672-2f2312a6eace","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":73,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"0c513773-1e13-40c4-ac41-59c2cd0c2102","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could inter fere with orderly trading, delay settlement","page_number":73,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"a5e19490-9c10-4f8a-a261-b08b7c36eeef","block_type":"box","text":"or cause market disruptions. Cer tain companies may be subject to economic or trade restrictions (but not investment","page_number":73,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"2d1335dc-e50c-41f9-9f24-3250e00eb3d7","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":73,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"05569178-aa65-4813-8e7d-cd484e0f09c1","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":73,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"8fb2e0f2-1b05-4872-b319-2b8129a21283","block_type":"box","text":"such companies.","page_number":73,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"844a5b28-c9f3-4df7-843d-36b06fc8f763","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":73,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"4d49010f-10c2-4e11-a546-ec17f0bba7d0","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":73,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"a6eea80b-9872-42d2-b71b-4c508e1f17f7","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":73,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"5001e9ff-9391-4244-91d5-527e47c27e61","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":73,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"d79d25ae-b659-4923-a595-bbe1a02ec179","block_type":"box","text":"on a Fund and its investors, par ticularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":73,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"7dce1bb4-556d-4225-8152-d95fca030690","block_type":"box","text":"addition, the accounting, auditing and financial repor ting standards and practices applicable to Chinese companies","page_number":73,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"d74e7f90-a56f-4927-8296-afe6aabee682","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":73,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"29b9f2aa-287e-496a-98b3-b10eb6e5576e","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":73,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"05170654-ac89-42a2-9904-f1482730c1be","block_type":"box","text":"standards.","page_number":73,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"44f4b607-6ed9-4591-81c0-142cf821f3aa","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":73,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"3f6963ff-ec13-4c62-8253-65833e8f33c2","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":73,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"e19cf564-9f5a-40db-a611-c15a7342dc19","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":73,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"47a1160a-f7b4-4d40-8793-647e5f3d6ed1","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":73,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"3da05d5a-1afd-4075-9920-3b9a09b8cf49","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":73,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"dc2ece58-70f5-4796-976c-67a915f89de8","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":73,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"f5da4048-dfbb-4ea7-bd35-2a434b8a8b76","block_type":"box","text":"General","page_number":73,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"5b9c3076-f0b5-4ceb-9f08-18e8029fe135","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":73,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"c7ae86ad-d25e-4522-a5de-1a4d9a441ddf","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":73,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"0c96723a-7417-4a6d-8cae-14ac1f41fd43","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":73,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"b715c008-84d6-49ac-bde1-917b87c9183a","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":73,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"96833bbe-6beb-40b8-9661-655951d510e2","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":73,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"b55384a9-f815-41d1-a7af-5b023856332b","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":73,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"9d235a5c-0395-4c16-bda9-e2447dd6a997","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":73,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"acae58ee-e649-475b-a3c8-cf02b95dc149","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":73,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"2c835702-55bb-4289-9514-55d2e6ade0c8","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":73,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"68399eb5-403e-4d25-b707-d0beb954752d","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":73,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"282932f8-783c-48fd-a8ce-bb1ace1408b9","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":73,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"6f003229-e741-4321-bad1-c41b04421b8a","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":73,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"c7311369-d54f-4ab3-af08-8d9a33ca81b6","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":73,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"39d07bad-dd9d-4bda-a238-59ca87cdf063","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":73,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"54ca7c41-94a8-4a9f-ad0f-7279129f0b51","block_type":"box","text":"company established by SEHK.","page_number":73,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"d8f18661-0ceb-4b24-a847-9efbdf17331e","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":73,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"1f25e887-b8dc-4de6-8684-0b7a86ee0590","block_type":"box","text":"through a Stock Connect’s Nor thbound Trading Link is subject to daily investment quota limitations which require that","page_number":73,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"0f38558f-7c0a-44b7-bfa3-b6274df461c3","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":73,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"5ffd9c7d-d58e-4d03-9b3a-66d7e5c4bc14","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":73,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"ed9d0277-626d-4f6e-80e1-3701a8784ae0","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":73,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"260baba4-c22e-4757-8167-e4cadac6f851","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":73,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"100f9653-0098-4eb8-835c-1228931285c0","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":73,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"780b59e0-48e2-4c80-a291-97b7fd5bf507","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":73,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"8d6fd695-a1da-43c2-8d04-b0031af23aaf","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":73,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"79dece9c-63ad-4e58-88b5-b09618746069","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a cer tain trading day, there must be sufficient Stock Connect","page_number":73,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"43b3b154-898c-4f31-afe8-bd69d6c1aa45","block_type":"box","text":"II-43","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ed20b815-9929-4e4d-a733-31930a711f9d","block_type":"box","text":"NM0926U-5977728-73/232","page_number":73,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"33804da2-1b23-4f1c-b621-898bbdcee6a7","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":74,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"d782b816-f2f9-4a12-8816-20fca1364eca","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":74,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"a98edbe1-9b66-4463-9203-f26c89040f05","block_type":"box","text":"out pre-trade checking on sell orders of cer tain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":74,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"b384e953-6182-40fd-8fb4-feb314c0f486","block_type":"box","text":"(“SZSE Securities”) of its par ticipants (","page_number":74,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"e766eb03-98ff-484c-8a56-79cd8d02c40b","block_type":"box","text":"i.e.","page_number":74,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"916557e1-4f5d-496c-ae40-853498a565ee","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":74,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"29548270-122e-4f07-9db9-a6892fd8ac1b","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":74,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"00f3a944-87c5-42a3-8a5c-c11edcffbc9d","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":74,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"b8cc3f1e-687a-450b-9d2e-10258837853d","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":74,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"9a68e81e-98ee-4dc1-8c00-1efae95b1eac","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":74,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"544a4d62-72c0-4f27-9de8-081752cbacdd","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":74,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"89adb9a1-d1c5-45d5-be2f-9d251f371bf9","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":74,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"c56e38b0-b55b-4221-8216-dc93b31e36e7","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":74,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"834af15c-0958-45cc-bdea-b969eabb7d9e","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Fur ther, since all trades of Stock Connect Securities","page_number":74,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"7151df38-c0d6-477f-8df8-b6b78a0f65c4","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":74,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"d98165a2-4f61-4700-978a-48ffb508a9c9","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":74,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"35276d64-1b53-4d20-89e9-c555fbb407e1","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":74,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"abf96d75-2704-4821-aa92-edfc0e1e889f","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund conver ts the local currency into RMB for","page_number":74,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"321a1e41-a1e9-4726-a986-bc5a8e5016c9","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":74,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"639df40a-760d-4e8a-9d6e-7206a0fc5f3f","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":74,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"a7ec1629-9726-49cc-8a05-df13b4e5c766","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":74,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"2237c38b-d1bc-4ee4-986c-28407d1e33bf","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":74,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"cc07d021-f0cf-42d6-8288-2425233e64f2","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":74,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"01e55405-0d78-46a6-839b-c1c43202ab00","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC cour ts. The exact nature and methods of","page_number":74,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"2dea5dbc-6d63-41cf-88be-c666a17970cd","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncer tain. In the unlikely event that","page_number":74,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"488b1aa3-1d79-4a0f-b7e0-84706afece8c","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":74,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"882e5a39-bc59-423f-b83f-5804b562a7f0","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as par t of the general assets of","page_number":74,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"49fe4224-68da-413e-a308-58d17077c0f2","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":74,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"0a7e7a14-f660-4630-849d-3cbccb0abed3","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":74,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"349aaf2d-befd-40e1-9762-b5bf12a46bd2","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":74,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"608b98dc-c6a2-4e85-95d9-abc6d8d47ddb","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":74,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"1ebcaaac-e9d8-4a55-b3eb-aed385c5bdc6","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps par ticipants of Central Clearing and","page_number":74,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"410c8dae-1140-4e0c-a20a-1f3bcc401190","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS par ticipants to take steps in","page_number":74,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"65771814-6724-4ee1-b047-194b94eb78cb","block_type":"box","text":"order to par ticipate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":74,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"cd18cbc3-0f89-4a7a-87d6-a8010a87c94f","block_type":"box","text":"HKSCC through par ticipants of CCASS. All voting instructions from CCASS par ticipants will be consolidated by","page_number":74,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"08ef5c42-d414-4a4c-883c-bcc0b4ea4338","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":74,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"104db5a2-a7ba-40b0-8450-4876a0c7a967","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":74,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"d9b9fbb9-9341-4f78-897c-1f018c188331","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":74,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"0b1dafcb-e259-4c55-8555-ecfa89478e90","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":74,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"a0dea589-0fa5-47e1-901d-6d2280cf20ee","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":74,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"4c0428ec-c6af-4f8d-8b58-8cc8aeb68294","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":74,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"bbca9c00-50f0-449a-910d-fb88ceed9872","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Nor thbound","page_number":74,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"05be14cf-99e3-45f6-8201-e232dc22c69d","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Nor thbound trading through securities","page_number":74,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"676639eb-b969-4740-93b3-a1a993f822c3","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":74,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"fd909797-048e-4477-ad3d-f35063de5f1e","block_type":"box","text":"PRC.","page_number":74,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"8675ced4-e20a-4dcf-b625-8448aa5f89bb","block_type":"box","text":"Market par ticipants are able to par ticipate in Stock Connects subject to meeting cer tain information technology","page_number":74,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"505addf4-02dc-498b-8a99-307fb47559da","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":74,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"031b51cc-b878-46e0-a45d-dc93095b3fe4","block_type":"box","text":"house. Fur ther, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":74,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"486eb200-c76f-4d8c-af31-feac521f4a57","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the par t of SEHK and exchange","page_number":74,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"613b0347-c7d4-4971-84a2-fb58e6aff8a1","block_type":"box","text":"par ticipants. There is no assurance that the systems of SEHK and market par ticipants will function properly or will","page_number":74,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"f6b7e1a6-30fd-4924-a2c2-0590dd965aec","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":74,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"7394571c-2d69-4be9-b34c-116b1909d8a6","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":74,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"34566516-4e2e-4de2-8398-09f6931b2085","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":74,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"ab2f18f9-8a7e-4802-b917-4d9e641eb853","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":74,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"5c2f93dd-8fdc-4360-8acb-0b48a16c247c","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":74,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"1caf8b67-9f08-4be0-817b-56e015c76f94","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":74,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"09702732-3f5d-4355-a77b-2062d1273b9a","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":74,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"fda5c9a0-bf45-4e33-920f-acfd27daa877","block_type":"box","text":"as a result of such changes. Fur thermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":74,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"2eeac52c-5662-4d3f-ad53-5c43e5d50d25","block_type":"box","text":"II-44","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e20ecc22-5be7-415e-9248-5afc354a3a71","block_type":"box","text":"NM0926U-5977728-74/232","page_number":74,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"409fff17-c9ec-46ff-816e-c9e565a2e3fa","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":75,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"0ca6757e-dfe2-4b2f-932a-f50908282eff","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":75,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"2b28dc54-fb78-414f-af0f-0ca82d1c6932","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":75,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"17e5edf2-fd13-4dd0-834d-512d89d015ec","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":75,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"fde6b3db-96d5-44b2-8d6a-3a2819fd9d16","block_type":"box","text":"other restrictions. Fur ther, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":75,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"0360f3d5-6c1f-472f-969c-5157b5e989de","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":75,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"5e0b5961-7944-4dd3-b7cf-6800819e6479","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":75,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"fc00687d-b4b5-4767-9020-2914aa95f653","block_type":"box","text":"Suspension Risk.","page_number":75,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"afa13521-1654-485e-b68c-5978cc8fe576","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":75,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"e73e33ae-d5b0-4a59-816e-9fc92cc2c263","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":75,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"2aa11533-00fa-49ae-94da-2bd9b9066d9e","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":75,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"778f9adf-a77d-4260-bde5-0e4d22054806","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":75,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"e2c8da67-9bfb-4245-a76d-81b0d940f4f5","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":75,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"1f66497e-8682-4042-a878-2fe158b3502e","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":75,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"f0c03e33-d175-4376-a34e-fb025c4d0648","block_type":"box","text":"Nor thbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":75,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"9d7504f0-20f3-43a6-b01d-68cf81533ce5","block_type":"box","text":"measures to halt or suspend Nor thbound trading. Where a suspension in the Nor thbound trading through Stock","page_number":75,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"a5740fb9-0ebd-4dff-a2c5-e6cd43e33759","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":75,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"c1a79a95-9c42-4329-9106-ba04b4dbe831","block_type":"box","text":"cer tain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":75,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"8dee7844-fd0c-4bec-977a-542fd7deab75","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":75,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"2dda449a-3d97-4a90-9a39-ea39d7dc42e1","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":75,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"948d5da0-ec86-492f-bd54-f79712a5ab77","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":75,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"7a819936-a974-4557-840b-0488103778cc","block_type":"box","text":"exist for any par ticular SSE Security or SZSE Security or for any par ticular time.","page_number":75,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"0fb96f31-661e-4033-80ce-fe0c019e7857","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":75,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"eca65190-bf31-41d4-a127-5d9a77baff41","block_type":"box","text":"A Fund may invest directly in the","page_number":75,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"1b1b3e15-97d8-4441-a534-50d809733a3f","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the nor thbound trading of Bond","page_number":75,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"e5cbf9fa-3bc0-4b14-b21b-7523c1059aee","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":75,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"9472b53e-7b6b-4084-a17f-5ada090c0748","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":75,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"1cf3f9c1-5d1f-4628-b4f4-f5f320cf5662","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":75,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"9772cd0f-c87f-4f8c-a060-ab624b212104","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":75,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"b9c7c0e5-fe11-4d4f-9cc2-ca377fbdd7d1","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":75,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"3bb45e20-6b74-47e9-9c7d-bc4573c4b7af","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":75,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"99ea1620-81a6-44ce-83ef-8306b12f8a45","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":75,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"0f28c8e2-1546-406b-99cc-32a2ccaa84f5","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":75,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"4cf8453f-21fe-411e-baa3-dce9040e7f46","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":75,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"06d4b1fb-6def-491b-9419-fe72d3a3833e","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":75,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"d5aad17a-87d2-4329-ae07-398cdcf3fa48","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":75,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"212c87fe-e4cf-41a1-9777-a3f3e8b7c429","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":75,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"63868e96-8254-4350-81ad-2c8ed0b949b3","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":75,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"008340e3-6d4a-4770-a473-9d6d32ce1635","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":75,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"d2d6bfc0-b644-4e07-b7ae-3fc2a21668b4","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":75,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"244e8d24-4246-4724-960d-eddf6227f80a","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":75,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"3b7e8140-1873-4fb7-81a1-518a2d7af06d","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":75,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"57059003-d55d-437d-8308-3444cfecca0a","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":75,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"2409d8ce-27f1-4edd-9a86-e07a9b4cd839","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":75,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"065d1bcb-5a71-4441-adf1-ddb893123bde","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":75,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"f188f307-896b-4d56-81c0-5b6122a911d8","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":75,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"b7f9d56d-d9b7-4947-ac92-c2e0dd54579c","block_type":"box","text":"i.e.","page_number":75,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"6c0d041d-659a-41f6-beff-71bc19d8851c","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":75,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"b4194d31-2b84-4b6d-8f42-a0caf03a55c7","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":75,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"bc9bce2f-6d80-4ad6-902e-573e6e45f38f","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":75,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"3fffd190-762e-4e6f-a795-1e166fd6d348","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing par ticipants","page_number":75,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"9e6078df-9acd-4452-a692-267f5430d0ba","block_type":"box","text":"will be limited to assisting clearing par ticipants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":75,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"14b8666a-cd4e-43d8-baf3-5e66c30fe87b","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":75,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"55ea7e4f-fdd5-4c63-9768-2f2654db133d","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third par ties,","page_number":75,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"be8083b4-b70e-40c6-bcc7-6063cd245653","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the par t of such third","page_number":75,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"8217537e-dfa6-4227-a9b6-a1a5d3c609ce","block_type":"box","text":"par ties.","page_number":75,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"71e12128-31f8-4eb4-8481-7321146a5bfb","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":75,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"5aceecda-844f-41c7-b780-06ac25461f22","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":75,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"7ef5fcae-8ff9-48a1-b365-89b22a018f21","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":75,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"d2fd14ec-5a79-4f0b-a282-d22f2421cbaa","block_type":"box","text":"II-45","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"888edf54-98e6-4aa3-884a-950ccf41613d","block_type":"box","text":"NM0926U-5977728-75/232","page_number":75,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a3aef77d-f9b5-426e-9fc1-5eedb05695b2","block_type":"box","text":"involving a nominee account structure in the PRC cour ts. The exact nature and methods of enforcement of the rights","page_number":76,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"3ad1efdc-1114-4b92-87f1-3e5cecb7cccd","block_type":"box","text":"and interests of a Fund under PRC law are also uncer tain.","page_number":76,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"b8561228-05fd-4396-b6f2-47c4423008dd","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of cer tain bonds in the China Interbank","page_number":76,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"c4edfe39-742a-4887-8aa0-32fceb842fef","block_type":"box","text":"Bond Market may result in prices of cer tain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":76,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"e28024e6-b786-484d-ad0b-8a947f8f82d5","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":76,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"e6106b12-5af6-4676-be8a-7c0b90e166f3","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":76,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"4ed45203-a7de-4273-9752-71acf2d01955","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":76,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"29e52b6e-5ab2-47b0-a6cd-0f7d61d0be28","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":76,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"2dc18c71-49b2-4733-bb2e-71e175c5891c","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":76,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"3839add2-672f-42d2-8e0f-6e960fee39ea","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":76,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"3eb3a3d4-34cb-4e5c-8bcc-8b77ef9a4662","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Fur thermore, the securities regimes and legal","page_number":76,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"ca23ceef-5cf0-4ae8-9ce1-0dbde47a9af8","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":76,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"05b80c51-2b41-4f1a-853c-39abb667cebf","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":76,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"ef749607-cd18-49f7-a114-1d71f0f29dd2","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":76,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"b03ec4a8-df73-4ecb-ac49-04055773b0d9","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":76,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"f3f154bd-3947-4daa-b3f9-610054be4b9d","block_type":"box","text":"Fund may suffer substantial losses as a result. Fur ther, if Bond Connect is not operating, a Fund may not be able to","page_number":76,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"a196d9a1-7fc4-49f5-932b-aabb2bdf7e0e","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":76,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"1a924b8d-379c-48f4-88d5-c291356eea2b","block_type":"box","text":"per formance.","page_number":76,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"fb1aea58-5957-453a-b2d3-26b4bd08e78f","block_type":"box","text":"Trading through Bond Connect is per formed through newly developed trading platforms and operational systems.","page_number":76,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"cf7020a8-b432-46a8-8717-7cdb2395ecd4","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":76,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"f90cdf7f-8af7-4a3f-8584-0e1af89344c5","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":76,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"6f100fa4-aab0-41da-ae55-da0c35fc96c0","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":76,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"5e3f4d40-bc64-4fd8-bc89-452434ecd914","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":76,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"8dfbdb4d-c06c-4e25-932c-cab089c5af2d","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":76,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"ea28defe-ffea-4ce8-9d50-6d4d2ceec443","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":76,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"ee5863e0-aef5-4e16-be2c-ac8a32701091","block_type":"box","text":"conver tible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":76,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"83d16634-6204-47fc-b54b-82529705d195","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":76,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"ccdedefa-ef81-4dca-917a-08a08329705e","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":76,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"b2159701-7f5d-483b-8ff0-112157609e60","block_type":"box","text":".","page_number":76,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"7a2004be-ebde-40e8-8d7a-e3d079234090","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":76,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"5012255b-00a3-4396-bafa-6f5b3d126eb4","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":76,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"9870bbc0-5ed5-49cf-9747-a70b4b7ed619","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":76,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"5976ed7c-943b-4d7f-ac87-28237df482c6","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":76,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"b9ea118e-0e0b-4f15-91dd-1b6c463bbf6c","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":76,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"8e410459-6dd4-464c-a2de-decaa2c9d3a2","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":76,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"0c5efb87-95dd-4504-9071-4cb379af0852","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":76,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"9138bf60-2d3b-4fca-822d-0824e8f87717","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":76,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"076eadea-3920-4740-a5de-d9734e0fe67b","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":76,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"d1b8e0d6-b66e-4480-9aa7-5b89722290c0","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":76,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"4d3f221d-20b5-4b6b-9aff-85833ba2d9a6","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":76,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"ab35a462-a5d5-429b-8696-42ca1b064728","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":76,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"07c7964f-29b5-4c53-b536-edff3e54b0ea","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":76,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"862995e7-1a6b-4a33-bcd6-dcd7fa046049","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":76,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"4a2137ea-6766-46a8-bf00-6caa0405da59","block_type":"box","text":"without notice.","page_number":76,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"3005d99e-5367-41bb-9808-1f46f66be131","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":76,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"ced582a1-007d-4392-badf-e7c317714428","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":76,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"2ef1278c-15f2-4456-97fc-e582ee08c448","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":76,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"f13fb6e1-df48-4ac6-bbcf-c8be9f09d7e9","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":76,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"9a12894f-1abe-44a3-ac8b-89fd148eae65","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":76,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"611024c6-32e5-44dd-905a-1a41c551c2a9","block_type":"box","text":"December 31, 2027.","page_number":76,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"23eb1038-5a94-4a42-b408-acc2a8ae2e44","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":76,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"ffe6e865-af3d-4503-b441-c076f8ab9db3","block_type":"box","text":"From May 1, 2016, VAT applies to cer tain income derived by the Fund, including","page_number":76,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"ce2f52aa-4dc0-44b5-8009-b650c3496bfb","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":76,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"3eb367d3-29b0-4cd5-9f0f-dc3f0e42eecd","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":76,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"1f402777-fcc8-478c-9aa7-74aa2e59d944","block_type":"box","text":"II-46","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"32731a8b-55a5-4a80-be53-38f67144cc5d","block_type":"box","text":"NM0926U-5977728-76/232","page_number":76,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d48d0f25-c763-4405-bdb1-e23616d4f1c9","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":77,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"5391405c-9717-4982-b527-25e0eb0e49ac","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":77,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"45e985fc-45fc-4082-9c71-a92549aa8b78","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":77,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"e7afc902-73f8-4cb0-9b63-e245568b7372","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":77,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"c71a028c-72bf-41ec-a11d-9191e782d5cb","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":77,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"c94da79b-c222-4f97-b724-cdc349e31de1","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":77,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"11995c9d-d82a-4edf-8bc7-56accf00281a","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":77,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"0b766df3-2127-4315-8c22-4506cc4c1e8b","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":77,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"c7bf581b-cf06-4359-9d0c-6aa990b9daf3","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":77,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"63b3b0e6-87b2-42d8-92cc-1fe53c344124","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":77,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"b594b1b5-bcce-45f1-a1c3-d7150f573ff2","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":77,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"de3074b3-e309-4cf9-8e7f-9e1232c59ec8","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":77,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"0b343733-a5af-480d-a512-ba04f8bd2db4","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":77,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"97b35508-d196-4d1a-a89b-3d81adca4c9b","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":77,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"4599f296-7888-4888-bc9a-3f786643b845","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":77,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"fabbc41b-84ab-4702-83bf-a40798b45ead","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":77,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"05b390c0-cde7-4af1-8ef5-6f0885943785","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":77,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"014d70b1-8786-4932-ac1d-fe2cbc260ff6","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":77,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"c28c7fe1-ed44-44ed-8a4c-d33ed4aafdc3","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":77,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"00b62d7a-f544-4933-82d6-2111a68c3776","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as fur ther clarified by","page_number":77,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"b6646974-1b3d-4c1f-9b36-263551da9978","block_type":"box","text":"the PRC in notifications.","page_number":77,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"6debc4b5-1a40-4fde-9cce-a74a935d71d3","block_type":"box","text":"Investment in Other Investment Companies.","page_number":77,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"9901f482-0b0a-42b1-96a7-a30d99f6c9fa","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":77,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"50432b27-f3b0-416a-b183-c5cfebead102","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":77,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"d587ccca-2d39-45f6-8b94-3dc0d3f9e41f","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":77,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"65932265-8c92-4597-8a7e-01160548e936","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":77,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"b96c62f5-c401-4188-9790-586e267fb087","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":77,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"38060fec-ad1e-4dee-8e52-e7087c6e0489","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":77,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"db646486-16bd-4147-bd5f-04e87a931374","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":77,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"b65419f8-e9dd-4171-bff2-039bfddface2","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":77,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"4991cb50-5db3-4560-9ec7-bacd6758b011","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":77,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"fc7aa12d-c433-4423-82be-10365fcef083","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Por tfolio.) In addition to the restrictions","page_number":77,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"cb6bb20a-c9f1-4cf9-b81c-0d2c036b5492","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":77,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"b196639e-6712-4b88-9884-3d5da16e4c33","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":77,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"205a53a1-837b-431a-a3e3-36126080fbc0","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":77,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"2e468bac-80a2-4037-ac0c-bb4034d267fc","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":77,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"691978d2-1e10-4e53-b5b9-45ba4dd03f11","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":77,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"fc76ce2b-e126-4275-bff6-a3e7ea39efdf","block_type":"box","text":"cer tain conditions. In addition, a Fund may be able to rely on cer tain rules under the Investment Company Act to","page_number":77,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"de7655fa-baa1-405b-be39-9f2af96a84d7","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":77,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"cd9368cf-3b60-471e-ab6b-cef8993bad8c","block_type":"box","text":"subject to cer tain conditions.","page_number":77,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"3bd07f0a-3507-4294-9205-da3a78987888","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":77,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"e07b2a3e-8464-42e3-a5d2-984f24da5517","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":77,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"91f17724-0bf7-43b8-adad-46a4013575fe","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":77,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"438e2c28-b900-4698-a4e7-b81b7114ba14","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":77,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"1414fead-d7fe-4ce9-8756-5af8e2feab09","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":77,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"24ba5e41-ef35-41f0-a8cf-cd70abebb31e","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":77,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"5407ab08-66dd-4e9e-b6a6-4d23492b9b79","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":77,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"d048024c-bec7-4681-829b-046bff213c57","block_type":"box","text":"loss.","page_number":77,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"d013acce-b67a-4163-8b38-5609f552f88e","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":77,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"b2feb1bc-246b-4855-b3bf-7f6484cd841f","block_type":"box","text":"shareholders would bear both their propor tionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":77,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"bbc38972-ae47-4ef8-90fa-357427e335ab","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":77,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"31026207-0d49-42be-ab6b-e7111d1edfc1","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":77,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"393b4670-b8a5-4b67-8887-5e648f665d5b","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":77,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"c6e58c16-251d-4376-a71e-62914820741b","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of cer tain countries will not be","page_number":77,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"b2db6010-7801-4735-8d75-24c39e62a1c3","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":77,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"86b3d7e8-6112-4f9e-8580-ae2db8921f26","block_type":"box","text":"II-47","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d3817e17-2b1d-4965-a25a-e6b972f46fa0","block_type":"box","text":"NM0926U-5977728-77/232","page_number":77,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8e4050cc-95d3-46c6-9058-9d947041b687","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":78,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"69aa6a77-faf5-49ed-820f-95c621db71c7","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":78,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"0538c4a5-22a0-455c-bcca-d11427667a00","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a por tion of its","page_number":78,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"d281bf24-e2fa-4906-b7d9-8a0478c10f59","block_type":"box","text":"assets.","page_number":78,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"0556691f-a31c-44a0-bedf-6eb2f0ab050a","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":78,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"38b1d3a2-ca5c-477d-875c-2b4b149a0d02","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":78,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"927409dc-a0a4-4162-ae29-cb391d281232","block_type":"box","text":"e.g.","page_number":78,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"532df641-5f9b-47c7-aadd-9ff1d27964fa","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":78,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"aeb0fcdc-c812-4ee2-b57f-1de7cb4d90c1","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":78,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"f3dd9e0a-4fb3-48a6-9c2e-8186e25ad081","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":78,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"d8adc50c-60eb-4d40-ab4b-92d71f78ec85","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":78,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"b86b1732-968f-4aa6-a729-7feff3305f38","block_type":"box","text":"investment in developing countries, and cer tain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":78,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"439445ab-6851-40ce-8620-56a34742930c","block_type":"box","text":"have specifically authorized such funds. There also are investment oppor tunities in cer tain of such countries in","page_number":78,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"830f44a6-8783-4259-9c83-76c21495484d","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":78,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"b3fc19a0-f268-4423-801a-4e0ed5250e70","block_type":"box","text":"investment companies set for th above may limit oppor tunities for a Fund to invest indirectly in cer tain developing","page_number":78,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"55c21acf-5eb9-4f87-9b9c-85009b6e8b96","block_type":"box","text":"countries.","page_number":78,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"d011716e-94d6-46cf-bcfe-bb78e98ed81c","block_type":"box","text":"Issuer Insolvency Risk.","page_number":78,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"8ffabb2b-caa8-4c55-ac2c-a836329469ae","block_type":"box","text":"Cer tain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":78,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"ca2663e6-f39c-4cbb-bdbf-a0a5b7992028","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":78,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"6fac301e-945b-43a9-b03c-dda740fb5ec2","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":78,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"5377b758-d1c8-43ac-b31e-3a5259589c31","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":78,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"8efe0a79-bb96-439d-a9a1-64af6175d736","block_type":"box","text":"issuer uncer tain.","page_number":78,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"37f7aaa4-d2e4-4298-be1d-b962dcb53ea8","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":78,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"e9fb9b5a-7e0c-419e-8f4b-aabfea26e1a7","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncer tainty as","page_number":78,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"5be7b1d9-ebcb-4dcf-8661-2c57a060475d","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear cer tain extraordinary","page_number":78,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"dc4587ee-dd3c-43fa-9864-15526ee2801a","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncer tainty as to when and","page_number":78,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"fab597db-16da-452b-9ed5-ac77662513d9","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":78,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"12e735cd-fe97-4881-b8b4-b0f28fc0a376","block_type":"box","text":"eventually be satisfied.","page_number":78,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"a89fbfc3-55ea-462a-b236-1b0b49cc7d37","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":78,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"66e0f1c1-b776-4ce0-9e7b-847530c2359a","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":78,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"b81a2a58-add4-4b2d-aae0-5a1ff8fd13c4","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":78,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"b4d56cc2-bd8b-4305-a31f-58b473897094","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":78,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"4486b0a9-f40f-47b5-82d5-a4d94ea77b5e","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":78,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"f3d808c6-252c-4126-b82d-109514a3cc01","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":78,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"b6290625-fa14-4dff-9f13-382d286457a6","block_type":"box","text":"introduce greater uncer tainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":78,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"eb0a06b9-06d1-4d23-961d-cfd88a89e0e5","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":78,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"b39c1350-2a37-418d-b743-1ad70c814149","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":78,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"0ce6dfdb-48d7-4308-87ea-c0c0f78d73a5","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including conver tible preferred stock); bonds, notes","page_number":78,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"7136d654-c629-4ae1-8890-5c6eec326257","block_type":"box","text":"and debentures conver tible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":78,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"ce282130-f004-4c6e-87c2-34065109164a","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":78,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"c07ed766-6224-4b3b-b601-c675244b6de7","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":78,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"64a288ad-045b-4e62-a24d-6b91017a1cc6","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":78,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"af771203-9a77-488c-a60a-2f4d0938d7e6","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":78,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"233cde6a-ed65-4de1-8358-322f300a7e92","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":78,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"751c96f8-84b0-4058-a408-5e358fef5e50","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":78,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"6b6a7da8-9f72-4f1f-bdf3-6dca8023b36e","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":78,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"b4887820-d5f3-49d6-b063-df9779497fa5","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as par t of a","page_number":78,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"6bfd4efe-c064-43cf-b643-c648f6489e39","block_type":"box","text":"workout agreed to by a consor tium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":78,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"a58a64cb-e67d-4394-a439-5ba74f6256bb","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":78,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"0063d5de-1f94-49be-8061-b32c54877f90","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":78,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"8a544e63-87b4-463f-9dc4-4bb999e1caa7","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":78,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"eeb26eab-adcc-4e3a-b222-652114f6e390","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":78,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"686bdb0b-be3f-41c1-ac86-3a7bf7997b82","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":78,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"1a52c554-1cdc-40ef-89a5-d3761e14c15a","block_type":"box","text":"par ticipates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":78,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"9cb2f623-be0c-4d6d-a271-8519407de15f","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":78,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"c3498a0e-32b6-4f5c-bf9b-eb35db8d41be","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active par ticipation in the affairs of the issuer than","page_number":78,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"422e64fb-b006-45b7-b35a-8bedb7626ad6","block_type":"box","text":"that assumed generally by an investor.","page_number":78,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"2fea3725-c3d7-49b9-b9a0-494ca586ddff","block_type":"box","text":"II-48","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f48d3b61-0504-49bc-8d54-148c37e37b52","block_type":"box","text":"NM0926U-5977728-78/232","page_number":78,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"497853fa-868d-47b7-a76c-883a4eddc740","block_type":"box","text":"Lease Obligations.","page_number":79,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"4925df58-cf2d-406f-9c1e-83f24265131b","block_type":"box","text":"A Fund may hold par ticipation cer tificates in a lease, an installment purchase contract, or a","page_number":79,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"0bc82913-846b-41dd-bca8-ad57e97616a3","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":79,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"fd420911-474c-4f52-a94d-110ff1533648","block_type":"box","text":"each entity providing credit suppor t and/or a put option relating to lease obligations.","page_number":79,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"db9e0d97-c2c9-4fba-a479-bc931fa2e67b","block_type":"box","text":"Life Settlement Investments.","page_number":79,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"445c37d6-3406-4932-9ce2-8630f66d6c19","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third par ties, such as the","page_number":79,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"635ff184-2d4c-45a2-a180-833787d17a68","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":79,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"7521ffa1-b1f3-4140-9b83-fbfafbec4281","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":79,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"e2438ca1-075b-453e-9c21-a9052854668b","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve cer tain risks,","page_number":79,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"f44ad07b-444a-4109-88e5-01a9fd4d5463","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":79,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"afbdde5d-775a-4204-994f-4d6d79cf51d3","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":79,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"9f9b6ea6-2d9c-4c8b-a73c-0d3c7b897c0f","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":79,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"b1ff4f71-c8d6-45fc-bb77-3b25c0ed1fa4","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":79,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"05701f1b-5500-4aff-a474-330d7f95c6e4","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Fur thermore, a Fund may encounter","page_number":79,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"14702706-0e8f-41dd-a9f8-31cba9a40401","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":79,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"bc69ff13-ea71-4260-9ef0-f625951dfd71","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":79,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"acba6291-1631-44e5-a527-16cb407a3e59","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":79,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"07df850c-76ed-4cb5-903d-4569b63a9739","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":79,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"93e27686-8e7b-4677-8478-72dd54f6e100","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":79,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"fac70cad-3ca4-4e24-a604-4f95b44501cb","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":79,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"12a39206-34ef-445b-91a9-4d45dabbdeeb","block_type":"box","text":"Liquidity Risk Management.","page_number":79,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"2489749b-d662-425d-8988-168321b7a20d","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":79,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"8fc06750-a788-4326-b78f-fe12f14d6f05","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":79,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"4cd4f01f-926d-4a98-a9d4-08438e9da7b1","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":79,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"bd0ce9bf-884d-4a73-a5c4-2edc0540cc5f","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":79,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"2d8222f7-13a0-49b2-a8cb-b46882b00787","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":79,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"70455774-8823-4501-b9ab-db0e6d814bf7","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":79,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"72810762-0264-4816-beda-6a3b93cdc6f6","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":79,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"06005b06-928d-4195-955f-cd41f8b14565","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":79,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"26e69f1f-6852-46d5-852d-d8a4091fecec","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":79,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"aaa8693d-5f06-4a17-899e-7322d69078f1","block_type":"box","text":"liquidity of a Fund’s por tfolio investments is determined based on relevant market, trading and investment-specific","page_number":79,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"4a16a326-7e53-4096-b634-b317389611d9","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":79,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"1b49a664-60d3-48cb-b7f6-62fc36d744dc","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":79,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"ebe57812-d171-4950-97be-5a3d22fbe488","block_type":"box","text":"Master Limited Partnerships.","page_number":79,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"c3667f0d-2309-4ea9-a035-5e0b9b7c1a2c","block_type":"box","text":"Cer tain Funds may invest in publicly traded master limited par tnerships (“MLPs”)","page_number":79,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"b9346e11-628f-408c-a0ec-8379cca7123f","block_type":"box","text":"which are limited par tnerships or limited liability companies taxable as par tnerships. MLPs may derive income and","page_number":79,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"66012ae6-c936-4f10-8b1d-bdec90e2e932","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transpor tation (including","page_number":79,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"bf692b08-c1da-467c-b7db-82bd4b8fede0","block_type":"box","text":"pipelines transpor ting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":79,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"83f6439f-b609-410d-b515-7cf70da3f633","block_type":"box","text":"generally have two classes of owners, the general par tner and limited par tners. When investing in an MLP, a Fund","page_number":79,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"0102391a-3db8-45e2-8255-513f7a26735c","block_type":"box","text":"intends to purchase publicly traded common units issued to limited par tners of the MLP. The general par tner is","page_number":79,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"68f10fa2-6378-4894-b321-7f99553adf4d","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":79,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"1991d9ee-5b09-46c0-adeb-3825832ee534","block_type":"box","text":"owned by one or more of such par ties. The general par tner may be structured as a private or publicly traded","page_number":79,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"37ef7f4a-13a4-438a-8131-67e1a9b822d5","block_type":"box","text":"corporation or other entity. The general par tner typically controls the operations and management of the MLP through","page_number":79,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"ab5665c1-8bac-498b-9ce6-9de50a664552","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":79,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"a325fad1-d251-40c3-b161-a7a15d86572b","block_type":"box","text":"Limited par tners own the remainder of the par tnership, through ownership of common units, and have a limited role","page_number":79,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"2de8d591-7edc-4634-8e44-17ce6a92c19b","block_type":"box","text":"in the par tnership’s operations and management.","page_number":79,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"d4f5c24a-d189-44b7-9485-64d603dc5fb4","block_type":"box","text":"MLPs are typically structured such that common units and general par tner interests have first priority to receive","page_number":79,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"3f938ecb-ef73-43b9-9715-6130aecb1f84","block_type":"box","text":"quar terly cash distributions up to an established minimum amount (“minimum quar terly distributions” or “MQD”).","page_number":79,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"7004fa74-b26f-4e6e-a984-dd54a06c21d4","block_type":"box","text":"Common and general par tner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":79,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"d2a0e6df-591a-4d41-b577-64981eb19bfe","block_type":"box","text":"Once common and general par tner interests have been paid, subordinated units receive distributions of up to the","page_number":79,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"918c4ae6-74f6-47b6-b07a-75ca681977d3","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":79,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"89a44111-a835-437b-9392-9945daea093b","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":79,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"fde55c6c-9d55-4de4-80d1-77f3151241fa","block_type":"box","text":"The general par tner is also eligible to receive incentive distributions if the general par tner operates the business in a","page_number":79,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"4f54881c-3fc6-4e94-bc94-580cd89352cc","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general par tner","page_number":79,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"02d5613f-09f1-4421-b5f6-5d0f09e4ad3a","block_type":"box","text":"increases cash distributions to the limited par tners, the general par tner receives an increasingly higher percentage of","page_number":79,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"da6d0a44-1ec5-47db-8da4-127de4d85e9a","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general par tner can reach a tier where","page_number":79,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"bf4f31b5-2b15-4439-83aa-1b9a0cf28cb1","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":79,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"68848523-b7ba-45d4-a008-4b90950bd24d","block_type":"box","text":"distributions encourage the general par tner to streamline costs, increase capital expenditures and acquire assets in","page_number":79,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"d04ee7a2-4c42-4336-830d-5f40b953861c","block_type":"box","text":"order to increase the par tnership’s cash flow and raise the quar terly cash distribution in order to reach higher tiers.","page_number":79,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"fa4b5fdc-0eca-410d-b96c-0a9787f9b4b6","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":79,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"6d61fecb-ca64-41e3-8f36-6a8fb7319992","block_type":"box","text":"II-49","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3d03bb39-2679-48e9-8c03-15dd790afa20","block_type":"box","text":"NM0926U-5977728-79/232","page_number":79,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ed14d20c-0448-4768-b82a-1ee4206782bb","block_type":"box","text":"MLP common units represent a limited par tnership interest in the MLP. Common units are listed and traded on","page_number":80,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"123f01ee-5cba-4329-bdb9-16e5b87121fb","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":80,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"9827de6c-e82c-4d39-a1d4-133b970d484a","block_type":"box","text":"success of the MLP. Cer tain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":80,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"09ffab13-f4aa-4039-b3f9-5ec9f2609b1d","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":80,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"b82a6888-0d0e-4cfd-9e64-7f7cc97db17d","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":80,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"57c1b7f6-8e1b-4960-9dfe-47d62cde112b","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":80,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"1e78817e-95fe-4719-9d8d-779efaebfae8","block_type":"box","text":"Merger Transaction Risk.","page_number":80,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"40d5c7c2-e94e-4341-8bf8-c62d8744c734","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":80,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"c2e5f0ce-af13-4014-b825-c47f3cc31036","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":80,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"19379a41-875d-4627-b37d-43b4be599d7c","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":80,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"6891462b-7e9c-452d-bfe6-b7730851ff74","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":80,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"8c9bf335-6a81-401e-82f4-ab625f9e13c5","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":80,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"05df19d9-e665-444a-a048-cfbc2bfec238","block_type":"box","text":"the Fund and may lose significant value.","page_number":80,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"484523be-8624-463c-a416-d4cd0dbc5231","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":80,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"26d9cca3-8976-4284-a575-bf071d966acd","block_type":"box","text":"Cer tain","page_number":80,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"7bd5d50a-545d-409b-bd55-f6f3e90b8106","block_type":"box","text":"Funds may purchase bank obligations, such as cer tificates of deposit, notes, bankers’ acceptances and time","page_number":80,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"4b79d483-c987-4ddd-b115-0b942db48a94","block_type":"box","text":"deposits, including instruments issued or suppor ted by the credit of U.S. or foreign banks or savings institutions","page_number":80,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"cedc65c0-ca2b-4795-b29f-c2bc678cf28d","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":80,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"f6e6968c-b475-45b8-9572-cd20ee7f89c2","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":80,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"02b221d6-099b-4a9e-83c9-58ab1c698429","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":80,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"12d209e6-dcfc-41e5-811f-108876bbd456","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in shor t-term bank","page_number":80,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"eefe57e7-c149-4328-ad75-9668ff033f3d","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":80,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"7549957a-eb25-49f4-a343-5541f2fbc0ba","block_type":"box","text":"branches of domestic banks.","page_number":80,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"4158992b-100d-48a8-8725-874a288f57cc","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":80,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"15fa2a15-f1e0-43f2-bb0d-28dc592a2641","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":80,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"72a56e6b-0375-4914-8891-288ab21db551","block_type":"box","text":"Canadian counterpar ts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":80,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"b9c4f479-04db-4192-9727-415f9d5d2942","block_type":"box","text":"paper of a foreign issuer.","page_number":80,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"a615bca8-9b07-4885-92c8-5bda3dd731ce","block_type":"box","text":"Money Market Securities.","page_number":80,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"e2359fdf-50a6-4a38-9225-8359ce6c108a","block_type":"box","text":"Cer tain Funds may invest in a broad range of shor t-term, high quality, U.S. dollar","page_number":80,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"983f88ba-9126-4bbe-a517-5c6e0c6d447f","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":80,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"476e0cfe-55fa-4c34-b169-4b6d9b045d3d","block_type":"box","text":"money markets. In par ticular, the Funds may invest in:","page_number":80,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"8d701f10-8484-4dc6-85da-248f15f33ed8","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or suppor ted by the credit of U.S. or foreign banks or savings","page_number":80,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"2382035b-9258-45e5-b38c-0e1e50bbde33","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":80,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"16ac3877-3b8e-41ca-987c-78ac52bcae81","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":80,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"a14b0985-a1df-4526-bb64-5057a9c06ae3","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":80,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"ed88cd8c-0dc7-4737-97d5-0dd2ba3c04c8","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":80,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"6a0bdc0d-1db5-41dc-b3a9-100c93c6ed79","block_type":"box","text":"agencies;","page_number":80,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"914c2d00-54aa-431b-b0de-8451763a10c7","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":80,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"9c24744e-9b3a-4890-a765-7b701e4aed0b","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":80,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"ba98b7df-84ad-4f89-96de-386d02717b00","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mor tgages, installment purchase","page_number":80,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"8935d342-a3a0-4d1a-baa5-d618bbb32dbb","block_type":"box","text":"obligations and credit card receivables);","page_number":80,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"830cad31-5311-422c-9ef0-a11655eaa4ba","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":80,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"d42214a2-0c60-473f-8515-a1a732525946","block_type":"box","text":"authorities and related custodial receipts;","page_number":80,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"619332b2-d133-406c-b520-5f06c0455cee","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":80,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"fddaf68c-1190-4857-81e0-9c25eef53bee","block_type":"box","text":"agencies or authorities;","page_number":80,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"173ac401-3f21-4332-98b5-d18d5f284699","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":80,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"e42b8588-cef8-4442-9af5-fdfed4078c58","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":80,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"ed9d4121-4088-45a3-aec1-b27eb1cbd409","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":80,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"dcb1e8e9-c7d6-4653-a5f8-5dd5325c49dc","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":80,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"47110e49-2814-40ef-b5be-e1ba4572d52d","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":80,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"04dbc417-29eb-4337-894a-f84aa2bdac9f","block_type":"box","text":"States;","page_number":80,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"67bd4768-65e1-408e-b5f2-d5bfcfce915a","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":80,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"4f65ae07-2cf6-40dd-aaa9-10c1c06c810e","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":80,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"fca7324a-6b7f-426e-ab0f-0537d502a11e","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":80,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"7e61f9d3-ed04-4206-bd8e-414e55c24de3","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":80,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"c2d530eb-c2a6-45c9-a7f3-4760c81f2619","block_type":"box","text":"II-50","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"24ade123-08ae-4be5-b6cd-735305af5b94","block_type":"box","text":"NM0926U-5977728-80/232","page_number":80,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f6d62bc6-5e72-47ea-b89b-d079a727772b","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":81,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"9e606cbf-5088-4ca5-b857-f04e4623338e","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":81,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"2ddfaaf0-e600-4184-8f2c-00b4f025b30e","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":81,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"e3ce74f3-cd0e-46eb-a1c9-92586e35c2ef","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":81,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"1c4765e6-f424-4d06-af44-09909cf9c8d8","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":81,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"afb60eb5-4661-474f-839e-885b5d0418c2","block_type":"box","text":"States.","page_number":81,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"106b3d06-fd4a-4624-a49a-a9f460ade9d9","block_type":"box","text":"Mortgage-Related Securities.","page_number":81,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"b093a754-8226-4526-937a-0d0ee48b9720","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":81,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"8f25f614-298a-407a-ae7a-a1964791fada","block_type":"box","text":"Mor tgage-backed securities represent interests in pools of mor tgages in which","page_number":81,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"ff4dcf11-0b9f-4b5b-833b-bdc42b6064e4","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":81,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"bc0edce5-f55c-4942-bddf-1b32bd1824f5","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mor tgage loans that underlie the securities","page_number":81,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"fa799025-663a-4420-a607-7ce85d23b7c0","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mor tgage-backed securities differ from other forms","page_number":81,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"a630cf0b-a43a-449e-ba3a-1e1473840536","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":81,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"76475254-e63b-457a-adb1-5b4029f6b80e","block_type":"box","text":"maturity or specified call dates.","page_number":81,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"b87a0967-20cf-421c-801f-45ba6ac871ae","block_type":"box","text":"Mor tgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":81,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"ee2656b4-5ea8-4fe5-b8dc-a7a0fd63d38b","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mor tgages relates declines. In","page_number":81,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"0c3595a1-8eec-4ca7-8e87-0817fdc086a4","block_type":"box","text":"addition, investments in mor tgage-backed securities involve cer tain specific risks. These risks include the failure of a","page_number":81,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"f76f59bf-9373-4d0d-9db7-5e9542256631","block_type":"box","text":"par ty to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":81,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"52f9dd6d-0a4b-48dd-a9a9-2fc49cc6e615","block_type":"box","text":"of prepayments on mor tgage cash flows. Mor tgage-backed securities are “pass-through” securities, meaning that","page_number":81,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"773dcf86-e11d-4572-8b47-b569d491cc0b","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mor tgages are passed through to a Fund.","page_number":81,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"bb160183-e27f-4366-b5b0-7e59215d1a50","block_type":"box","text":"Accordingly, the value of mor tgage-backed securities in which a Fund invests may be par ticularly sensitive to changes","page_number":81,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"2183edc0-6b50-44fe-a7c4-8952819046de","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":81,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"ffd69df7-5d53-43a7-af46-1914557ee2af","block_type":"box","text":"successfully may depend in par t upon the ability of the Manager to forecast interest rates and other economic factors","page_number":81,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"8aaa1278-d958-426c-96a5-884a8f4e91da","block_type":"box","text":"correctly. The value of mor tgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":81,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"15616c04-65a6-4b79-a204-3453025aedb8","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mor tgage-backed securities differ from","page_number":81,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"1bcb0fab-fe23-4daa-ae11-776a6c26f618","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":81,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"f0aaf5f5-e8f8-4ebe-962a-56a686bf8682","block_type":"box","text":"for its mor tgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":81,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"04273521-a77d-4208-91ec-e67255924dcf","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":81,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"e9b4c9e4-78b4-4162-96ff-b060356ad74f","block_type":"box","text":"underlying mor tgages. In a period of declining interest rates, borrowers may prepay the underlying mor tgages more","page_number":81,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"825f10f8-1e41-4740-b788-7d6fa2b3a4e6","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mor tgage-backed","page_number":81,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"902f4cbb-09ca-4433-bd3e-75a05701d544","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":81,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"df05ea2e-767f-4679-8ac5-0dffa877dccb","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":81,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"bc36d682-ffff-47bb-8daa-05cb7127b252","block_type":"box","text":"To the extent that a Fund purchases mor tgage-backed securities at a premium, mor tgage foreclosures and","page_number":81,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"da966cd9-f688-4c97-9561-fd876dffabf9","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":81,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"b2c3587d-52a8-4ae1-a517-e725947b9873","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":81,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"720db2b4-0eb3-4d03-83b4-80347f5c1649","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":81,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"c05225d3-8095-4701-9df7-37cd9bcab925","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mor tgages may occur at a slower than","page_number":81,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"70a882e6-0bb8-424d-8429-a6b5b74a8194","block_type":"box","text":"expected rate, creating maturity extension risk. This par ticular risk may effectively change a security that was","page_number":81,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"bfadbede-9cb6-4d56-beb7-233497e8ecb1","block_type":"box","text":"considered shor t- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":81,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"94885f97-6c8a-4bad-b092-33780459e6c9","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shor ter-term","page_number":81,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"26c1ad0a-66a9-4159-8e1f-e8b5ddd99557","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under cer tain interest rate and","page_number":81,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"ce16084f-86fd-48f2-8dd4-c6414515cd2d","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mor tgage-backed securities notwithstanding","page_number":81,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"945baf8f-1771-446e-86db-9b97f653c202","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":81,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"da9a94c8-426c-461d-9ffd-ee60091df541","block_type":"box","text":"There are currently three types of mor tgage pass-through securities: (1) those issued by the U.S. Government or","page_number":81,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"2fe49519-2435-46fc-ba17-c797cbe71072","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mor tgage Association (“Ginnie Mae”), the","page_number":81,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"3a426cbf-2e2a-435a-a01f-2cf09c0d8add","block_type":"box","text":"Federal National Mor tgage Association (“Fannie Mae”) and the Federal Home Loan Mor tgage Corporation (“Freddie","page_number":81,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"cae5b549-3264-41cf-b65e-26f30ec152f6","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":81,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"33255084-70c2-4b91-995a-a153a3d3ee47","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":81,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"530331a5-3eaa-4f63-81f6-448ad124be53","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mor tgage loans or pass-through","page_number":81,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"78046b8b-b989-4585-a923-612cb4409756","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":81,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"a39c76c8-2126-4f47-b40e-acd88970ccd0","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Depar tment of Housing and Urban","page_number":81,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"7be5e432-942f-4d99-bcb7-9e3e301dc372","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":81,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"79b0c1ce-f569-4dd4-aed8-af08652fe8e0","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":81,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"c226c3c3-d3ab-489b-bd56-1cd62571babd","block_type":"box","text":"and loan institutions, commercial banks and mor tgage banks), and backed by pools of Federal Housing","page_number":81,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"64e20ab4-476d-4e54-90ad-07ad0727cfbf","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mor tgages. Pass-through cer tificates","page_number":81,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"c703549a-2bad-4e78-a3d5-4b6924c1c0ae","block_type":"box","text":"II-51","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8d68c9ed-831c-4e50-8db2-31f305f569b1","block_type":"box","text":"NM0926U-5977728-81/232","page_number":81,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ad52e209-8ba6-4ffa-a59c-ca43150612fc","block_type":"box","text":"guaranteed by Ginnie Mae (such cer tificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":82,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"addf0b28-c816-4c94-8946-8bfb1a92fb10","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":82,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"c76f0928-3d6c-47cc-a238-5457eb6b567f","block_type":"box","text":"States. Ginnie Mae cer tificates also are suppor ted by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":82,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"202a212c-7c31-48ce-8ba1-ed8c5a21c9f6","block_type":"box","text":"Treasury Depar tment to make payments under its guarantee. Mor tgage-related securities issued by Fannie Mae","page_number":82,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"75bdbb7b-c7b5-47bd-9e15-ade613b1dd33","block_type":"box","text":"include Fannie Mae guaranteed Mor tgage Pass-Through Cer tificates (also known as “Fannie Maes”), which are","page_number":82,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"482311bb-c57b-40b5-8e4e-02a111be6c60","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":82,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"36090487-0fd6-4810-9e15-f95376b15b42","block_type":"box","text":"faith and credit of the United States, but are suppor ted by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":82,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"1e2dc1d7-e1d0-4d95-ae88-aa56f36ac6fd","block_type":"box","text":"Depar tment. Fannie Mae was established as a federal agency in 1938 and in 1968 was char tered by Congress as a","page_number":82,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"1c6b9603-dba5-4c10-b806-f4e8a45c3fb7","block_type":"box","text":"private shareholder-owned company. Mor tgage-related securities issued by Freddie Mac include Freddie Mac","page_number":82,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"753d7573-c719-43f2-9667-b5951e394538","block_type":"box","text":"Mor tgage Par ticipation Cer tificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":82,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"2c6db16a-e8af-4eeb-bb27-83095deaf1b0","block_type":"box","text":"corporation char tered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":82,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"e91bc157-601e-468b-8ce0-eb26d4e29929","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":82,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"c08d7084-b4b9-4a4e-baa7-47b92627bb7b","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":82,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"c9c06f34-5f17-4818-867a-11550ae68596","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mor tgage loans.","page_number":82,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"948a289e-9535-441b-82e4-ab4edc315936","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":82,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"a330dc0b-8797-48e4-b691-4cc02bd86054","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mor tgage, but","page_number":82,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"a47468fe-86a0-495a-aa06-e0312667a45f","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":82,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"73538d05-ef4e-466b-a217-db441b0905a9","block_type":"box","text":"Private mor tgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":82,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"f55d38ef-374d-4c88-849a-36497f36c8cf","block_type":"box","text":"mor tgage pass-through securities and are issued by originators of and investors in mor tgage loans, including","page_number":82,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"7ae870c5-888d-4a5f-8677-9da55cd71ef1","block_type":"box","text":"depository institutions, mor tgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":82,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"3cc28b3e-2ec7-42d2-a817-d8e9abea1502","block_type":"box","text":"Pools created by private mor tgage pass-through issuers generally offer a higher rate of interest than government","page_number":82,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"83eb611f-376c-43c7-9d17-9f1d7907467d","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":82,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"1296a460-4f50-4cf3-a3c4-1f49420645a8","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be suppor ted by various","page_number":82,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"8577928d-5c0d-4db1-b9a0-1b68b23822d1","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":82,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"e64f366e-9250-400a-9a26-6128dbc8828e","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mor tgage poolers. The","page_number":82,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"cef1f52e-8fcd-41c9-a145-bb876520407b","block_type":"box","text":"insurance and guarantees and the creditwor thiness of the issuers thereof will be considered in determining whether","page_number":82,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"86219e6c-1fa6-44af-b41f-e09e9ee4dfde","block_type":"box","text":"a mor tgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":82,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"0fdeafbc-68d8-4615-a40f-a9fec94b7384","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":82,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"46b0ca97-d0e1-433e-ba79-38448879b569","block_type":"box","text":"mor tgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":82,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"fc121fff-ab40-440c-812e-f3aa6f521ae7","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":82,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"334b0ef9-3407-40ad-9ac3-5b8568027f84","block_type":"box","text":"meet a Fund’s quality standards. Any mor tgage-related securities that are issued by private issuers have some","page_number":82,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"bd584fdc-2c23-455c-a867-88301740b84f","block_type":"box","text":"exposure to subprime loans as well as to the mor tgage and credit markets generally.","page_number":82,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"a6e50120-77b9-4c51-bffc-d9a7afa88f4f","block_type":"box","text":"In addition, mor tgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":82,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"b5351e5b-7618-4711-83c8-842506ada3cf","block_type":"box","text":"requirements for the underlying mor tgages that are applicable to those mor tgage-related securities that have a","page_number":82,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"d03ea793-838c-4b10-af4e-50f3ca5e828f","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mor tgage loans underlying private mor tgage","page_number":82,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"5fbd75d5-fc37-4340-864f-d673cbd54dcc","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":82,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"d7892420-b86a-4562-8fda-668244f21f8a","block_type":"box","text":"characteristics than government or government-sponsored mor tgage-related securities and have wider variances in a","page_number":82,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"2ec0525e-7e85-4c43-a074-da6225b407bb","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":82,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"988095e5-28af-4ed2-bba4-a31c879860af","block_type":"box","text":"frequently include second mor tgages, high loan-to-value mor tgages and manufactured housing loans. The coupon","page_number":82,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"a7c9cd3b-20cb-4f7a-b078-a8142e451f08","block_type":"box","text":"rates and maturities of the underlying mor tgage loans in a private-label mor tgage-related securities pool may vary to","page_number":82,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"da6f30a7-3ccd-4f28-86df-ae124875601c","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mor tgage","page_number":82,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"c79c99dd-8fe9-4f7e-bbd9-c5252dc60b49","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":82,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"93435d2b-863c-4956-83fe-9f8229b96237","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":82,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"04ba6a06-8513-42d1-b595-caceffc8c768","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":82,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"281f4b99-762a-4bd9-b032-0364a64e9f37","block_type":"box","text":"The risk of non-payment is greater for mor tgage-related securities that are backed by mor tgage pools that","page_number":82,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"ae103ab2-69d5-480c-99aa-96669dbc57a0","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mor tgage loan","page_number":82,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"7ee9eb49-ad80-48c0-94ac-bdef7a5e27b5","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":82,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"dd79a387-e1f3-439d-8cdb-472057a61f4a","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mor tgage","page_number":82,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"82e0c259-70ae-4f2c-ab9b-5710b306b0c1","block_type":"box","text":"payments by holders of adjustable rate mor tgages.","page_number":82,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"15b4980e-72ff-44c4-b65d-cf7a42922bfd","block_type":"box","text":"Privately issued mor tgage-related securities are not traded on an exchange and there may be a limited market","page_number":82,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"c6554d10-71ff-4cdb-bdd2-bdcf104cac44","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mor tgage and real estate market sectors.","page_number":82,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"63682e0d-1dbb-4310-a938-ee62b7bd5250","block_type":"box","text":"Without an active trading market, mor tgage-related securities held in a Fund’s por tfolio may be par ticularly difficult to","page_number":82,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"14fdaf56-3000-4ddd-a266-a55331138981","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mor tgage loans.","page_number":82,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"5e172aa1-9b2b-4c15-bc0b-100f3a88c323","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":82,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"974d7c7c-65a6-49bd-b02f-5b0803e29212","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":82,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"cd9c92ef-b39e-4bb0-912e-da34ec8c6672","block_type":"box","text":"commercial mor tgage loans or residential or commercial mor tgage pass-through securities. Interest and prepaid","page_number":82,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"8c3723c3-319e-4134-aef4-465c3883eab3","block_type":"box","text":"II-52","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8bfb9761-804a-4d74-9caa-ddece20676ef","block_type":"box","text":"NM0926U-5977728-82/232","page_number":82,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0774e924-86d0-435e-b5a7-e1a8e25c2c29","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mor tgage loans or private mor tgage pass","page_number":83,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"c5f888e5-10b5-4687-9d42-e6ed15c0f5e8","block_type":"box","text":"through securities but are more typically collateralized by por tfolios of mor tgage pass-through securities guaranteed","page_number":83,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"9eb95593-15e1-4a28-bc37-f3a8d9bfd2ab","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":83,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"5f992d6f-6a09-46de-81d5-73c72a91c317","block_type":"box","text":"Mor tgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":83,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"eead726c-6e88-47bd-9181-a9efbe42eb72","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":83,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"2fba9407-b431-4215-bc4b-981cf14b6964","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":83,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"ec8df950-aea0-4113-a4e4-66c73fbf50d2","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":83,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"2867d2e7-9ad8-4658-aa19-402da7b7bce4","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":83,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"fbc802d6-8a19-4368-b48f-d565c7200024","block_type":"box","text":"de facto breakdown of the underlying pool of mor tgages according to how quickly the loans are repaid. Monthly","page_number":83,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"29b919ec-b196-473e-9ca5-6df65892d15b","block_type":"box","text":"payment of principal received from the pool of underlying mor tgages, including prepayments, is first returned to","page_number":83,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"f0843e7b-9f44-41df-bfed-a11d500a811d","block_type":"box","text":"investors holding the shor test maturity class. Investors holding the longer maturity classes usually receive principal","page_number":83,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"54b48f8f-b673-43d3-ae25-635243580279","block_type":"box","text":"only after the first class has been retired. An investor may be par tially protected against a sooner than desired return","page_number":83,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"f5e33657-254b-4238-b31b-912602049fb3","block_type":"box","text":"of principal because of the sequential payments.","page_number":83,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"072a4e06-a53a-4e63-b95f-e30521157a46","block_type":"box","text":"Cer tain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":83,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"fae5ce24-9368-4ba4-995f-7f86e00f5b4b","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":83,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"5c3f7dd0-8ae3-4160-a4a0-b3637a1611ae","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":83,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"55891e0d-fc3c-449d-a224-2bde3e627d86","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in cer tain other qualifying CMOs, which cannot or do not rely","page_number":83,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"03ca0ace-c19c-4eec-8d68-c34789941416","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":83,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"8fae9953-8849-43f2-9b17-ac4ac6647521","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":83,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"79398c9d-f33a-4ddc-8e7e-bb5b73c59813","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mor tgage-backed securities; (2) do not issue redeemable","page_number":83,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"0e0fa1b6-9933-44ce-b1f0-9f2bb3d1d33b","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":83,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"6a4caf7c-743f-4f68-b180-a362a381dabd","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":83,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"476d69e7-6611-4292-9163-baa0f7434665","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":83,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"c99329c5-d56e-4782-8ba3-3936fd208bab","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":83,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"61384c42-94e7-4f3e-ab07-491bcade1510","block_type":"box","text":"securities of any single such entity.","page_number":83,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"23006a15-4110-4c3a-8c11-3089f2a8dde9","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":83,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"c3e7a149-7495-448b-bf7f-0f45bbe07653","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":83,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"2c356fec-648b-4848-878b-3ff54bb8f614","block_type":"box","text":"concurrently on a propor tionate or dispropor tionate basis. These simultaneous payments are taken into account in","page_number":83,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"d84d0930-f82b-45f1-8249-2af53643f1b1","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":83,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"4f7781c9-3fbb-41db-8cc3-eef7bde0262a","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Cer tificates may be issued in the parallel pay","page_number":83,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"ff9bc18a-7834-45a4-99dc-ad2aabd8b10b","block_type":"box","text":"or sequential pay structures. These securities include accrual cer tificates (also known as “Z-Bonds”), which only","page_number":83,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"5c0b8a38-b28f-4b0f-9c2c-b97701729d74","block_type":"box","text":"accrue interest at a specified rate until all other cer tificates having an earlier final distribution date have been retired","page_number":83,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"4080fcc0-2e10-4306-b688-a4d15d52a343","block_type":"box","text":"and are conver ted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":83,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"ad177245-e14f-408d-bef6-d5d0327f77c4","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":83,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"52d3f1ba-9587-4f5d-9aea-c986cea85393","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":83,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"239d5a9f-1803-4e15-9c82-64b0cb3c12cf","block_type":"box","text":"Classes of CMOs also include planned amor tization classes (“PACs”) and targeted amor tization classes","page_number":83,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"4de6ac2d-cb3a-43fc-889d-96aaaf8df850","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":83,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"82600cfc-8b02-4f62-8d84-18915dad29b5","block_type":"box","text":"scheduled principal payments for PAC Cer tificates generally have the highest priority on each payment date after","page_number":83,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"6ee70dee-8836-4d32-aa93-b5b3d17af290","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shor tfalls, if any, are added to the","page_number":83,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"68e918fc-5482-45a8-b6dd-2484d8ae50f4","block_type":"box","text":"amount payable on the next payment date. The PAC Cer tificate payment schedule is taken into account in calculating","page_number":83,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"1eb40004-8b92-4e78-8d96-4260bc258de9","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":83,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"de479a27-8bbe-458f-9e25-9ce55492f811","block_type":"box","text":"be created that absorb most of the volatility in the underlying mor tgage assets. These tranches (often called","page_number":83,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"57da0b7b-0d80-4058-88ac-ed1495cd6846","block_type":"box","text":"“suppor ts” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":83,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"77f3eaac-9a21-48b2-98b5-44cfcf33230d","block_type":"box","text":"classes.","page_number":83,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"dcba4f34-79cb-48d9-a6ec-e3bde263e9b8","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":83,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"85c242ea-0fe2-435e-adbc-d34905c0fe12","block_type":"box","text":"date to one or more classes of REMIC Cer tificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":83,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"7d3febbe-7669-4173-a1ca-838e158611c9","block_type":"box","text":"prepayment rates on the underlying mor tgages do not exceed cer tain ranges. In contrast, a TAC provides investors","page_number":83,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"9e0a09b7-857a-46ef-b3f4-c7d3a14afddd","block_type":"box","text":"with protection, to a cer tain level, against either faster than expected or slower than expected prepayment rates, but","page_number":83,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"8adb08e1-9a9d-4eec-85b7-6c8dfef2552d","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":83,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"f7832551-10c7-4086-9a27-e1c540e017d6","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":83,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"0ba4875f-c821-40c5-97ec-1bddd745c30e","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":83,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"0c2a89c9-b41c-42c4-80ab-038d1d464067","block_type":"box","text":"Adjustable rate mor tgage securities (“ARMs”) are pass-through securities","page_number":83,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"4dea1dff-2e7a-4205-b90c-8ffa53346062","block_type":"box","text":"collateralized by mor tgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mor tgage pool","page_number":83,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"8c6aa152-18f3-4536-9442-dfd5ec1e58fc","block_type":"box","text":"generally provide for a fixed initial mor tgage interest rate for a set number of scheduled monthly payments. After that","page_number":83,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"510241b4-59de-4e9c-ab3c-e6ca16ebd384","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":83,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"4990c603-5e7d-471b-91ba-1898fe78356f","block_type":"box","text":"to a designated benchmark index.","page_number":83,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"caa61491-0860-431d-9820-618188c07562","block_type":"box","text":"II-53","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4ceb3985-7b57-492e-ba59-81d3027a4039","block_type":"box","text":"NM0926U-5977728-83/232","page_number":83,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b66bbef6-004c-4bc4-ae7d-5c54520b0aef","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mor tgage interest rate may not vary over the","page_number":84,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"a32cb6a5-2927-44a6-961e-93150b69ae0e","block_type":"box","text":"lifetime of the security. In addition, cer tain ARMs provide for additional limitations on the maximum amount by which","page_number":84,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"6ab4a293-b1e8-4c02-8d16-4da8efbb2c8b","block_type":"box","text":"the mor tgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":84,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"f0ee029d-2a8b-4ed4-8a19-269b2dce057f","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":84,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"40246f16-7ddb-49e7-8ea2-cc40180963ab","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":84,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"465e67e7-7f10-4e1c-b9a0-57c0a4411473","block_type":"box","text":"Cer tain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":84,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"cfedf977-6f3b-449b-8beb-d7243badd302","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":84,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"01570220-973a-43cf-9a81-9ac48e176be8","block_type":"box","text":"balance of the mor tgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":84,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"2e7e1018-0711-4777-b8e1-641d5e9f3d11","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mor tgage interest rate and the principal","page_number":84,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"02711e81-1426-417d-ace4-80e2b0f6fa2f","block_type":"box","text":"payment required at such point to amor tize the outstanding principal balance over the remaining term of the loan, the","page_number":84,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"733cbf8d-9e9b-44a4-93fd-05632d4c7ce3","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":84,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"67590e7c-6748-4afc-b0fe-9e441b83af26","block_type":"box","text":"CMO Residuals.","page_number":84,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"99e6fcf0-7717-4359-a943-cea576474ef3","block_type":"box","text":"CMO residuals are derivative mor tgage securities issued by agencies or instrumentalities of the","page_number":84,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"bf43b555-849e-4eda-b954-b48b6017d45f","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mor tgage loans, including savings and loan","page_number":84,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"d7fa9cd5-e63f-422d-a3bb-231bcd2b1fd6","block_type":"box","text":"associations, homebuilders, mor tgage banks, commercial banks, investment banks, and special purpose entities of","page_number":84,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"2cfe2e59-8179-449d-877f-9d075c3b66e0","block_type":"box","text":"the foregoing. The cash flow generated by the mor tgage assets underlying a series of CMOs is applied first to make","page_number":84,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"c1645a34-1216-4242-a54d-a1f1fba61636","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":84,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"a617c658-8807-418f-a46f-953215f9f6c6","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":84,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"c09b88da-cf0d-4718-ac76-50c1de2485dc","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":84,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"49fd4cfe-65da-4011-a4b0-05a2983bfe30","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":84,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"1cab8c28-90bd-4583-9184-f03dc92a1d47","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mor tgage assets, the coupon rate of each class","page_number":84,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"71eba7cc-ccb1-4e42-ab2c-d7d2afa2481b","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":84,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"4a3e2ef7-03ae-4df2-9b5f-0fcf85d08ea8","block_type":"box","text":"mor tgage assets. In par t, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":84,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"639fd83e-7824-4ba7-a261-b5abed2d4d8f","block_type":"box","text":"related underlying mor tgage assets, in the same manner as an interest-only class of stripped mor tgage-related","page_number":84,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"19db90f8-6d49-4aa9-ae79-aed1266448b4","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":84,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"3dd1b372-49e0-4987-acfc-e01120614f71","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":84,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"ed59a764-6396-4d13-99bf-c0980900c4d6","block_type":"box","text":"interest rate adjustments are based. In cer tain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":84,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"ca5850b5-ed36-41be-bbe7-538c93277283","block_type":"box","text":"a CMO residual.","page_number":84,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"8374422a-76dc-4bc9-a502-37189ac134fb","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":84,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"e5454969-f57e-403d-bdf6-9f2b4cacc019","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":84,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"bbf9feb9-9652-4fcd-8e2a-3b1f4d890307","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":84,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"1779a4df-c855-4e1e-87a8-a8c4e6e847fc","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":84,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"a69ce03f-7b48-4435-8866-439fc8b6a893","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":84,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"ed025407-b1ac-4280-bbe7-782ae12610a6","block_type":"box","text":"registered under the Securities Act, may be subject to cer tain restrictions on transferability.","page_number":84,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"fd0f28c5-f2bb-4692-b8d6-98c49006a193","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":84,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"d6af968e-c4a8-4ad7-b218-acf4711c8361","block_type":"box","text":"A Fund may invest in stripped mor tgage-backed securities (“SMBSs”)","page_number":84,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"24e3e9a8-1872-4a41-896c-cf5df6170e62","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mor tgage-backed","page_number":84,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"d78aa8fb-caf1-45ce-af04-b2988d54c84b","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different propor tions of the","page_number":84,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"1ddfd690-f70d-4ee3-ad05-e474402d8072","block_type":"box","text":"interest and principal distributions on a pool of mor tgage assets. A common variety of SMBS is where one class (the","page_number":84,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"e9154e03-0a3c-4d33-ba10-bc9f08329bb5","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":84,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"ceb98c77-ea67-4dfc-999c-7eaa5bc87d8c","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":84,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"03fad4f0-8311-4305-9962-02dfa6e2d487","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":84,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"c38b2e17-c43a-4265-a57a-866707b82e0e","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":84,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"06fe0b2a-adc3-44f5-96d6-4100a32951c4","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":84,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"e56dc056-daf3-42b2-868c-e56a13c615aa","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":84,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"79996619-79d3-4bb0-8755-55b2f44c0aa8","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mor tgage assets","page_number":84,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"f89102d7-28ad-45ff-b6ea-950e0d1ec810","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":84,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"48c4ca6c-e76e-419e-afec-a636dd000c58","block_type":"box","text":"In addition, there are cer tain types of IOs that represent the interest por tion of a par ticular class as opposed to the","page_number":84,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"fd81af6a-56ba-4b78-94ba-9aea82a31bbe","block_type":"box","text":"interest por tion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":84,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"63dd60aa-274d-49b4-976d-2c26302e0b90","block_type":"box","text":"because of the characteristics of the principal por tion to which they relate. As a result of the above factors, a Fund","page_number":84,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"ec22abc4-5120-48c0-9e7e-57fbb40f5eb4","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":84,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"1f40c211-8df9-48e6-92dc-e945cbc4d473","block_type":"box","text":"will be matched with cer tain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":84,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"51969cc6-0003-49e4-8a9c-d274007e166e","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":84,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"2d92d773-afb3-4c36-bac3-7efa06776b9b","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":84,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"5ec2b4b2-7147-4056-81be-bdb2a0dc7df5","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":84,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"6483f270-9434-42e4-a8e3-6995c823b150","block_type":"box","text":"Tiered Index Bonds.","page_number":84,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"b6355878-d417-47fb-84e6-c2ee2668a334","block_type":"box","text":"Tiered index bonds are forms of mor tgage-related securities. The interest rate on a tiered","page_number":84,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"de8c3b0e-d343-49ab-ab8a-0bc4f8f6291f","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":84,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"019e055c-082f-4bd4-a0c7-248444248210","block_type":"box","text":"II-54","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e5d82194-7f90-4cab-b468-d90b5e678fc8","block_type":"box","text":"NM0926U-5977728-84/232","page_number":84,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"61583d03-431d-4dee-8c5d-80f261ba5d8f","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":85,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"d660143a-36b0-4548-b12a-9c75a62c4102","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":85,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"c397de15-89f0-45e1-bc80-14ae35bb3f66","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":85,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"d3c76ed4-8a3a-4755-8f7a-109a316a7a91","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":85,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"13e690fb-5ca9-4a97-b8ad-fc80c5aced06","block_type":"box","text":"that of a fixed-rate bond.","page_number":85,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"f6275459-099c-4611-bb57-8d6da5519b83","block_type":"box","text":"TBA Commitments.","page_number":85,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"d25f31ed-432f-4aa9-bbde-06790d031576","block_type":"box","text":"Cer tain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":85,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"160386b5-b89c-4379-9bec-a4e5c17f9a68","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mor tgage-backed securities for a fixed price,","page_number":85,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"c0b06fe0-6c78-426b-98dc-308c4dd4c77d","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":85,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"d16883e6-3003-4468-9fe5-53e8f2fa256c","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":85,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"76bc22a0-7904-4cd8-b79b-90a4a1af36fc","block_type":"box","text":"mor tgage terms. When the Fund enters into a TBA commitment for the sale of mor tgage-backed securities for a fixed","page_number":85,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"07e0c77e-dfe3-4a13-a7fb-5b10c5b891b1","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":85,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"91b445d4-57d1-4b2a-bd87-90852c247906","block_type":"box","text":"shor t position in such TBA securities), the Fund may or may not hold the types of mor tgage-backed securities","page_number":85,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"a98dbf16-ae7e-4461-bafc-b4df3241cd15","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":85,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"a784fa15-751f-4c72-8a7b-f92264db3c4c","block_type":"box","text":"below.","page_number":85,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"a97d7bbc-75ec-400c-9f49-bbce668b6b23","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":85,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"1b0b23c7-37dd-4d00-abc0-dc8331e37b00","block_type":"box","text":"Cer tain Funds may invest in mor tgage dollar rolls. In a mor tgage dollar roll transaction, a","page_number":85,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"e57643c6-a791-4933-bdac-cdebd2429ecf","block_type":"box","text":"Fund sells mor tgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":85,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"90674f1c-efc1-4d21-bd90-74a42b8e63ee","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":85,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"b878b618-fba1-46d9-a520-e08f125dbc65","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mor tgages collateralizing those securities may have","page_number":85,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"17976022-0299-4754-b054-1de2eff6043c","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":85,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"b33f1be9-e867-46a7-b241-d641bee08da4","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":85,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"cf91c539-dea5-49fa-81a2-4aad4ef8a3af","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":85,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"56ce1bc3-7851-49b0-93b0-62b181c12426","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":85,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"d423713d-1649-48bd-9486-c67faed82a70","block_type":"box","text":"securities sold as par t of the dollar roll, the use of this technique will diminish the investment per formance of a Fund","page_number":85,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"ba06f068-9bcb-4d93-89ec-7194f2acdec8","block_type":"box","text":"compared with what the per formance would have been without the use of dollar rolls.","page_number":85,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"be46f2c0-9261-4a60-9e3c-424498f00dcd","block_type":"box","text":"Each mor tgage dollar roll transaction is accounted for as a sale or purchase of a por tfolio security and a","page_number":85,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"786c366b-af25-4952-93b2-b972aa126543","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mor tgage","page_number":85,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"d7605e79-e4c4-45d0-b4fa-3f29850f33ca","block_type":"box","text":"dollar rolls may increase trading costs and por tfolio turnover.","page_number":85,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"7cb857de-9a80-4c18-bd9d-75b5d1140310","block_type":"box","text":"In the event the buyer of the securities under a mor tgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":85,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"c87c73d1-3dd6-4e02-b6e1-3a99910883c8","block_type":"box","text":"Fund’s use of the proceeds of the current sale por tion of the transaction may be restricted pending a determination","page_number":85,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"efde9374-3e59-488c-b2d0-6f1bf395c158","block_type":"box","text":"by the other par ty, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":85,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"fb84ac02-c95c-4159-88d0-8be0a874e196","block_type":"box","text":"securities in the forward transaction.","page_number":85,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"f59f57ba-a1fa-4507-af90-46ab86693a14","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mor tgage dollar rolls may","page_number":85,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"bd713153-8c59-4a60-a864-64072024dc5b","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":85,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"6fcb5b02-d4f2-4273-a992-69eb053a5fab","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":85,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"ec12b4eb-6b12-4036-b155-26bbca920775","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":85,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"f9ef240b-63f5-413c-b4d3-d1a9d10d3393","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":85,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"ced90107-aa6b-480f-a2f6-7bae3bcb8b8d","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":85,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"9457ff53-a693-4696-b3eb-02baef7f6e5a","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":85,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"38b2b1fc-68c1-444f-b3ba-fad8a819da16","block_type":"box","text":"securities (","page_number":85,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"0af8f68c-1e53-4c81-bc68-45117ab5dc54","block_type":"box","text":"e.g.","page_number":85,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"c86905c6-5c35-4f96-9bbd-c6cb2c694bc9","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":85,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"5c33c053-bc7a-4563-afb6-667fb9a21def","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":85,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"5dcc08fa-bb3a-4eba-a2e6-895753702e66","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":85,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"95a2868c-5390-4f1b-97f9-0f3bd6d81288","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":85,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"f1584eb9-b2e0-4f96-b36d-b27b633e0b7e","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":85,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"0e4775a8-9d68-4df8-955c-ff87bd7fc86e","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":85,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"caf5368f-a6cb-4c97-bb63-5135c625dcde","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":85,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"16e5a893-c02a-4acd-bc28-7d5f6716374a","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":85,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"149f0170-007f-4ba0-8ec2-d50e0ba018a6","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":85,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"d2572395-d918-4cf1-8e13-15479f696d4f","block_type":"box","text":"securities are derivative interest-only mor tgage securities structured off home equity loan transactions. NIM","page_number":85,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"ffc8cf69-0e62-4f91-9978-0cc63a6fb88d","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":85,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"0a99f938-3dcb-42e1-97a9-94ed8ca6dfa2","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mor tgage-backed","page_number":85,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"40379cd8-ded5-4ca1-8ab6-475cb424f9a7","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":85,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"49430796-e719-4138-9c2c-03a826c230b5","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":85,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"bbc7b73a-4843-4ccf-9497-8b0e57ccd118","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":85,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"8bca7eef-0242-4082-bba4-6f0f4f2bfb56","block_type":"box","text":"Municipal Investments.","page_number":85,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"4b874438-60bc-4466-8a0d-aa2d0019b514","block_type":"box","text":"II-55","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cff67bdc-31eb-4251-92a7-759b08ece461","block_type":"box","text":"NM0926U-5977728-85/232","page_number":85,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a50d208e-9bbc-4d8e-9edc-34314355f6a2","block_type":"box","text":"Cer tain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":86,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"dec36656-38e2-4b27-968a-258c360233b2","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":86,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"1cedd138-fe4f-4ee8-8077-bab1eed9b12a","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":86,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"c0f6ad64-d2a6-486b-9881-79c05bc63007","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Cer tain of the Municipal Funds may also invest in Municipal Bonds that","page_number":86,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"ae850eda-5671-4ac9-93f3-1046c42c641b","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":86,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"8c353ec3-c3d5-41f6-8fdd-e8fa4935d2d2","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":86,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"5c49790b-19de-4613-90df-f8f2dcb48547","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":86,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"8c906b34-0fcc-4faf-bbbf-425add248cc4","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":86,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"3c63d841-78dc-4364-89ae-9ac6b5e22383","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":86,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"e9299a9b-ed0b-4925-b96f-e3bf29e3caf0","block_type":"box","text":"or state and local personal proper ty taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":86,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"54f3fc29-c9ca-40b1-b20b-39980f6ce4da","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust cer tificates or other instruments evidencing interest in one or","page_number":86,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"26e8848c-ef86-46b7-92e9-1e3ea4346b0c","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":86,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"4c8dd272-bffc-4b64-b691-d5367fa80886","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":86,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"5871374b-8892-4392-a5c0-ed9f04c447a6","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":86,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"610a45df-86ae-48f0-b7ff-fc9f79769e3b","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":86,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"fc22221c-4972-4547-84e8-30cb82401721","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":86,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"571bcf87-783e-4295-8c94-55b2cbed9609","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":86,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"090a4f09-3700-428d-9d6c-a002f7333970","block_type":"box","text":"exempt from state and local personal proper ty taxes of that state will be considered “State Municipal Bonds” for","page_number":86,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"1e19d54a-b720-42da-802e-5cf23a0f60bc","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Oppor tunities Fund, New Jersey","page_number":86,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"352d9f18-634f-4776-a178-a258c1cb0348","block_type":"box","text":"Municipal Bond Fund, New York Municipal Oppor tunities Fund and Pennsylvania Municipal Bond Fund.","page_number":86,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"313d23ac-d1a2-47f9-8fac-ad96f4819c1d","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":86,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"5baabc52-8edb-483a-9970-21d346a06d72","block_type":"box","text":"The risks and special considerations","page_number":86,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"6eda9e81-0e75-4f7f-a81f-8fca64be4e9e","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":86,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"db89f758-d434-427f-b551-dd7292e36124","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the par ticular product. Cer tain municipal","page_number":86,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"8d51cd9b-1c66-43d7-95e8-85ccfe6a089c","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":86,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"fb6dded7-f8a4-4793-9a6c-a2168294d2df","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncer tainties in the municipal markets as a result of","page_number":86,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"a8b0c960-2288-4255-8f98-90c6555f4060","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":86,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"e620567e-1c31-4772-b3a2-a280c8f774a9","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and cer tain provisions of the","page_number":86,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"4670fde5-6fd8-4910-b415-7640a9a4dfcb","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Fur ther, the application of state law to Municipal","page_number":86,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"be69fc13-606d-4999-9ae1-76e9a14bfa52","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":86,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"14f4ff7e-3bbb-4293-86ab-d55f30eaaf41","block_type":"box","text":"uncer tainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":86,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"e6e8caa7-1156-4dbb-ae45-f8659cb8df27","block_type":"box","text":"II-56","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dbc71ed6-4fca-469e-950c-b65d05f81c15","block_type":"box","text":"NM0926U-5977728-86/232","page_number":86,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"2fdd107b-33ad-4697-b2b1-2d3644e44a7d","block_type":"box","text":"Description of Municipal Bonds.","page_number":87,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"e8b8aad6-0aca-432d-8db0-fb4b1ec9815a","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":87,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"e7c3255e-b829-424b-b056-2ed3bbb2398b","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":87,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"1bdd4618-1f73-4290-a3b1-dc6f1864d169","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, cer tain types of bonds are issued","page_number":87,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"455910d9-885e-434d-a650-7459dc7dfbc2","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including cer tain","page_number":87,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"f76828ed-c5dc-40e0-9674-62dbac0e52ed","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":87,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"66d9efe8-3e3a-4583-a8ce-da04c7ca6b95","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":87,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"20f756bb-1831-4f34-a34e-b6b6f245a8d9","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":87,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"a93c3561-2ab0-44a6-8b70-451821cbe243","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":87,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"3236ddf7-c5fe-479d-8b01-263e128bd5f2","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":87,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"7bb7a2e6-88af-4de1-93f4-a5a03131754e","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":87,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"c1c74e26-2efc-4f67-bcdb-f617f5a67f0d","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":87,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"d0231eee-58ea-48b0-92dd-bc8e6f6347f6","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":87,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"425b7a1a-f503-41dd-a992-68ccce0413a1","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":87,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"27f0f278-fe91-422f-86b3-f38beefbcf04","block_type":"box","text":"General Obligation Bonds.","page_number":87,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"bfdd2e76-2763-4457-848b-424df5692c8d","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":87,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"5cacbd1c-ec90-47d5-b6b8-cfea4b9f64fc","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":87,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"8bc187eb-0a88-4156-977a-8b832dd5a14d","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditwor thiness will depend on many factors,","page_number":87,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"96f9de5c-4ced-414f-bf4c-0370151d0cf6","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":87,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"6df16c54-f02a-466f-b591-e4208de1ebad","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":87,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"e09decbe-8c3c-4fff-abab-2839db467331","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real proper ty taxes and the extent to which the entity","page_number":87,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"0c360d9e-f4f5-4132-8e67-73dd54e15c28","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":87,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"1e59809c-30b3-4670-91df-a8b09a20ce8a","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":87,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"1ab65363-faad-4c62-bd55-fd4830013205","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":87,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"e51e84e4-38c0-4fd7-aaac-6fd21698aa78","block_type":"box","text":"Revenue Bonds.","page_number":87,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"653d0219-abe9-4625-8f38-20c59fa89f06","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a par ticular facility or class of","page_number":87,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"f70ed8cb-9f5e-4037-a1bc-1148452aace9","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":87,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"4300daee-fa04-41ef-a428-2cbbfc1d8292","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":87,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"b2b19f97-1cd7-4cad-8664-5f06c88c766c","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":87,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"ced95a06-7619-4b98-8343-eea8d7aea474","block_type":"box","text":"viability of such facility or such revenue source.","page_number":87,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"4b7322c7-7574-4086-b74f-f1d4cf2337f4","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":87,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"97a3cd19-1f34-4e5d-83be-ffc591cff940","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":87,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"b4961d6d-4dcf-4c97-b56f-7b0953ad6667","block_type":"box","text":"proper ties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":87,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"a048ca60-61af-4c0c-9af6-53f2e50cc7e0","block_type":"box","text":"recourse against the proper ty owner, may be junior to the rights of others with an interest in the proper ties, may pay","page_number":87,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"348ccba5-5948-4ecf-b736-4a4453aaa778","block_type":"box","text":"interest that changes based in par t on the financial per formance of the proper ty, may be prepayable without penalty","page_number":87,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"adccf6d7-87aa-451f-9870-efd45fbdf7ec","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":87,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"ce0a5762-7ebf-42a4-92a0-ee8314487652","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":87,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"b2180d7f-e06d-46cc-bbf2-caadfff4d5a9","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":87,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"4ef40ef3-326d-4190-8247-74faaa018c2d","block_type":"box","text":"PABs.","page_number":87,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"9947eedb-de10-48f6-81dc-26e0fe258b0a","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":87,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"2d0a4a52-729b-4e50-aa5e-3a9ccfd9b4d3","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":87,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"3dfc70eb-35f5-4f9f-a43c-22fbe8ee6dfb","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":87,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"bc3e93ee-4032-4083-afeb-ae38e4a7c51b","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":87,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"90b8b817-5dc0-452f-b7f4-377d76fc6912","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":87,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"8bf90df4-c2d2-4e52-93c7-0c711ef36583","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":87,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"221bfd1d-e8f6-4060-ae67-73c641c7c68c","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":87,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"b800480a-37ea-4894-9267-b439ea1dafbb","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":87,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"77776219-10d2-4e3c-99bb-30c5cfbedd2a","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":87,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"a2c82f31-c9e0-4a9e-9c90-cc474f9f5d58","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":87,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"41154ca5-13ab-4017-97ff-50eaa6b0b263","block_type":"box","text":"the par ticular facility being financed.","page_number":87,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"f6cf5d79-2d75-4383-8725-de3a660c49dd","block_type":"box","text":"Moral Obligation Bonds.","page_number":87,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"5810ba0f-9058-4b1d-9b21-4dbbf9833eb5","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":87,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"9826c07f-4d9a-4737-8a8a-2e313263e104","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":87,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"53590335-c009-4de6-bee7-68094789d42a","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":87,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"733db7a1-5f00-4d60-be94-f4ee7d3c1003","block_type":"box","text":"that issued the bonds.","page_number":87,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"1ce3e9c3-07d7-45e0-9516-3ced802f0613","block_type":"box","text":"Municipal Notes.","page_number":87,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"cf4e3446-e048-4f05-8082-882d88d368e1","block_type":"box","text":"Municipal notes are shor ter term municipal debt obligations. They may provide interim financing","page_number":87,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"79234b1f-82ed-4980-9f5e-bc79aa73110f","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shor tfall in the anticipated proceeds,","page_number":87,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"7b5f9ee2-aad6-47da-b585-e73a6efd8525","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":87,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"f35a2265-db04-45d9-83dc-d3a9bffd10f0","block_type":"box","text":"II-57","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6425478f-6047-40e4-ab30-4caad253b603","block_type":"box","text":"NM0926U-5977728-87/232","page_number":87,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"51997e4c-952c-4792-a596-fd72cebce80d","block_type":"box","text":"Municipal Commercial Paper.","page_number":88,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"981048cf-66f4-4f28-bf0e-0d60fce358d1","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet shor t-term","page_number":88,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"86d08412-add4-42aa-8273-1fea4f213290","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":88,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"a830e1d8-f4d9-4fb0-b723-9e4190ae5cf3","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":88,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"bfcfb571-d56e-4522-859d-f6f81c23f3c9","block_type":"box","text":"Municipal Lease Obligations.","page_number":88,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"50805b47-1560-41d8-aa4b-8e56c42aa954","block_type":"box","text":"Also included within the general category of Municipal Bonds are cer tificates of","page_number":88,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"235a8f2d-3554-4891-b69e-6a46a61acf2b","block_type":"box","text":"par ticipation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":88,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"eb9a702a-fe62-4874-8471-4c5a98b4a8e5","block_type":"box","text":"equipment, land and/or facilities. The COPs represent par ticipations in a lease, an installment purchase contract or a","page_number":88,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"1ab686e6-b747-4984-9db7-9e7886980915","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":88,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"84a25334-f95b-4997-828b-edcd3a37b24c","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":88,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"219a510f-bd8d-453d-a3b5-01798312fb42","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":88,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"33b65174-58a5-4800-9b50-fe1d272a0aa5","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":88,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"05c71a0d-b8ad-451a-a5a4-3ebc62393c19","block_type":"box","text":"payments due under the lease obligation. However, cer tain lease obligations contain “non-appropriation” clauses,","page_number":88,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"a8c37591-33e5-4878-a874-51ab53cf97c4","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":88,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"32280909-726e-475b-9d04-c0302a45cdf7","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":88,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"e33cd477-55f8-4370-b6c8-d69dcf11bd4f","block_type":"box","text":"secured by the leased proper ty, disposition of the proper ty in the event of foreclosure might prove difficult. These","page_number":88,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"935af4ad-d98a-4fe3-a441-2305562574c2","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":88,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"fc5badad-4bb5-4da6-ba50-49e40a18b891","block_type":"box","text":"conventional securities. Cer tain investments in lease obligations may be illiquid.","page_number":88,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"06523930-ccb5-45c9-aad8-3e1e872bbc2f","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":88,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"305f538c-ca26-499b-ba0e-f7296d29d3b7","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":88,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"6a691584-b460-411b-a394-99faef372d6f","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":88,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"05810606-b393-4702-80aa-641bdaff446e","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":88,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"10319a65-9378-4dc8-9c34-844ba4d56257","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":88,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"d0fcb99f-94e3-462f-a322-4891544461cf","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":88,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"5b896c28-41db-4398-bc32-51a548cf1cb9","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":88,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"399e4ad6-e7ed-43dd-b31c-e5518b55cbee","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":88,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"f1a25b0d-83a1-4188-b447-6dd21bfcf032","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":88,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"bbc6902b-d7ec-4b49-8d59-2f0a85404a2b","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":88,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"9e97509e-f13a-4ce7-95e2-b55e0ed6d294","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":88,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"60b1c490-282d-4cde-b129-eb1bb1d3a64c","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":88,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"9c3899e0-0937-4c4b-b4cc-48c8f169f440","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":88,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"3ab37da9-223a-4752-ab4c-08feaaa6704d","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":88,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"efdd9f4c-ae10-4dcf-b188-cc358bd84f58","block_type":"box","text":"subject to cer tain limitations on its investments and on the nature of its income.","page_number":88,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"7ece375e-a079-4393-b220-7a0b8c48640c","block_type":"box","text":"Tender Option Bonds.","page_number":88,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"6b44844d-de00-4473-a83a-83368ce6f486","block_type":"box","text":"Cer tain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":88,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"7c3a3913-0d46-41cf-bff4-740e31ae2257","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":88,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"0d2350a3-ce61-4837-a4cc-b47d0e3e45f4","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":88,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"27530319-a03d-45eb-88d0-737ffd7b998e","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":88,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"05e95195-f99c-46ef-b94a-780d4b1511d4","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":88,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"7085fb96-d955-4d00-a1d5-4664d5cf1785","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":88,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"c5df5617-c808-4b27-a489-a94a4dddcafe","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":88,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"3fd7b9de-d4da-4c75-9284-97bc9cbae628","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":88,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"111039aa-0ebc-49fc-b1d7-b07214d9c319","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":88,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"4b3c2854-e25c-450e-bfcf-1e635072f269","block_type":"box","text":"beneficial interests: shor t-term floating rate interests (“TOB Floaters”), which are sold to third-par ty investors, and","page_number":88,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"178967eb-86b4-4478-914a-fd8cb86e059a","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":88,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"adbe0e6f-a8de-403a-a950-5311c4536171","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":88,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"b098dd87-63a0-4793-a6ba-6f9ece8b04d1","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity suppor t arrangement from a third-par ty","page_number":88,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"9d00618c-f8ce-49cb-b088-24b35acaa5b5","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":88,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"59ef1832-4c44-4730-82c1-f1f50ed00436","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":88,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"3bab1035-0cd2-4f04-8fd2-ac16e2233367","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":88,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"7386f1ee-4f89-455a-955b-e17340d08ae3","block_type":"box","text":"cer tain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":88,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"0c60c723-ab74-412a-bbdb-5df773162234","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a por tion of the TOB Floaters sold by","page_number":88,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"7979563a-3668-4917-8bef-cf52d3e9b9bd","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a propor tionate amount of TOB Residuals to the","page_number":88,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"e2396106-2aba-4775-8718-85c3af23bf52","block_type":"box","text":"TOB Trust in exchange for a propor tionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":88,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"e089ff0a-2119-4c89-9e33-da9785c5b985","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":88,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"22e42625-41a0-4d48-aa28-cdde21126a72","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds par ticipate in the same TOB Trust, the economic rights and","page_number":88,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"4938aee3-3e1f-4111-90f6-a3d3fdf70e87","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in propor tion to their","page_number":88,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"a534de0e-7582-4881-94d5-e2f1c5eb1bfa","block_type":"box","text":"par ticipation in the TOB Trust.","page_number":88,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"81fab7b7-830e-4c11-af0b-6b32bf09e9a6","block_type":"box","text":"II-58","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"018f297a-7489-444c-99ae-660063122dd5","block_type":"box","text":"NM0926U-5977728-88/232","page_number":88,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"58f9bcb4-c684-4708-bf9b-c7af9d239583","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In cer tain cases, when","page_number":89,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"ed609ecf-1e76-4153-a1b8-2dd1e1ede540","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":89,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"8a198c35-a6a2-4c0e-bfa5-eb9d2081207f","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":89,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"be794a43-4d96-4d89-b93a-a1b8263d2c75","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":89,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"fbbfa65b-d077-41de-9af1-86cb0de25b8c","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":89,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"28df6e1b-da52-4398-9f35-dc529b32288a","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":89,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"f97b3cdb-38c8-4bbd-b900-d69b7f096fe2","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a propor tional","page_number":89,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"66dd9b51-d341-4b74-b02b-8a73cbceb21f","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":89,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"e274195e-309b-4463-80a7-6a8489c68a89","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":89,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"7b4be6dc-8a72-4926-a497-4148f78efdbb","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":89,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"8331c7da-e8e6-40b7-9970-a0cbf75a1cab","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":89,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"41141527-80ce-4f9f-81d2-7a121ae6c9c8","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":89,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"52c1bf38-dff2-44e9-9417-4e80535bb12e","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":89,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"d8da6c71-d8f7-410a-a56c-e12067c7913a","block_type":"box","text":"issues.","page_number":89,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"8a05177e-80d5-4f23-b8d1-652ae3d39182","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":89,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"5c1bbd29-ea82-4342-955e-270cdeb4a691","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":89,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"ca7a7293-4688-43aa-af62-02c976a0b906","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":89,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"ddac6cc1-40db-4020-8ccf-2ba3e5301d07","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":89,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"257a5acf-b985-4b5d-89d6-e15d67184bd4","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":89,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"19a3e73d-edc9-4e32-ac61-688316c96b33","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":89,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"a8665fe3-1fb4-49a6-891b-001e36efddd1","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":89,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"88d0d02f-e2a4-4ee1-b064-27679e6a2cf7","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":89,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"61bf553b-23b1-4c56-910f-2562924ab9ae","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":89,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"60560fff-3c97-417e-a185-647170a4cbca","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity suppor t agreement, and a substantial decline in the market","page_number":89,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"521e1e66-1113-426f-be85-3ca3acbd633e","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":89,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"912f7019-8121-4d8c-a58c-2d1990f8da31","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":89,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"69bdb2d1-0d96-49b4-8c5f-5307c3d19924","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":89,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"415f8916-58d1-4ba7-a1b0-3ea5eec1c475","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":89,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"7aba1b57-d264-468a-a45b-1afd983a1970","block_type":"box","text":"i.e.","page_number":89,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"adbdbe20-c0ed-485a-a3ee-c1cd245f3d26","block_type":"box","text":", the Fund). In contrast, in the","page_number":89,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"eb6e8467-a06d-456e-925c-63898009473e","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":89,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"824ae357-cecf-4319-87c9-314aabb4f1d2","block_type":"box","text":"rata in propor tion to the respective face values of their cer tificates.","page_number":89,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"ca598153-1840-411b-9357-0d2aebeeb70d","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically suppor ted","page_number":89,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"7e8a61b0-2bab-43ce-813e-3404817dd9e9","block_type":"box","text":"by a liquidity facility provided by a third-par ty bank or other financial institution (the “Liquidity Provider”) that allows","page_number":89,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"1f78515d-97aa-4b43-b9d3-292488453891","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":89,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"0f0e6504-cf14-425a-9edd-26c90b47cd58","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":89,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"3e9fd18e-949c-44dc-88ab-616f497fe9ac","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":89,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"b40bf452-0f11-483f-a73f-bc674d67f50e","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":89,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"e17a55dc-7e89-440e-9464-0dbe3bd06754","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":89,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"7dfb6b73-dd00-43eb-b340-f7310105988a","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a por tion of the Municipal Bonds","page_number":89,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"fac6e5a7-31d2-477e-bd9e-db43cf99ddf6","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":89,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"af45ef84-999f-4a9d-89bd-4e52fcebd0f4","block_type":"box","text":"liquidation proceeds (the “Liquidation Shor tfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":89,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"350c5359-cd23-4b4e-a67a-87a4408554fb","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":89,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"05175edf-5816-43cc-9ce7-7ef1046bf467","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shor tfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":89,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"2c14d80e-ecd5-4452-983a-99a2be64776b","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shor tfall. If multiple BlackRock-advised funds","page_number":89,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"5b861f85-992a-425a-b5ef-1111a28b5cb2","block_type":"box","text":"par ticipate in any such TOB Trust, these losses will be shared ratably, in propor tion to their par ticipation in the TOB","page_number":89,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"518c96d6-e86d-4a0c-9164-39353dd5ec51","block_type":"box","text":"Trust.","page_number":89,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"d6c550a5-6061-4afd-a904-ee623d850f30","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":89,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"db78f3c4-c3aa-4229-af64-4851bdbe34e9","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":89,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"70d9c849-f2df-4828-afa4-add3d63be5dd","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":89,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"3242e74e-d8c4-42c2-9f1a-b951a6d500d0","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":89,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"b52931dd-5742-47e1-a041-43d1add28e13","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are repor ted as expenses","page_number":89,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"c1b119da-bd47-41c7-9acc-df11ac1fcb9e","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":89,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"c5e5a718-8882-40ce-beb0-b6bb2308bac8","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":89,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"6891a28b-98fe-4f1d-ba86-fd4f72bd6afe","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":89,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"f6dae406-0ace-4c53-b533-e7b314661b6a","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":89,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"47d25221-9f10-40e5-90f5-8f6d1ea81139","block_type":"box","text":"II-59","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7cb3993a-7652-4614-acff-d83bcb365db9","block_type":"box","text":"NM0926U-5977728-89/232","page_number":89,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d9b0ac11-4450-4193-a112-1ae7eac70d0f","block_type":"box","text":"Since the tender option feature has a shor ter term than the final maturity or first call date of the underlying Municipal","page_number":90,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"30fcf207-5513-45bd-bb2b-d85d1feddb99","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":90,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"6e308927-5995-4c50-a77c-515aff13118a","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":90,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"6c6fff51-3f8f-496c-89e7-babf41b317bd","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":90,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"8e48c390-a9ab-40eb-bc2e-d8bb46ebf5a7","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditwor thiness, of many major financial institutions, some","page_number":90,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"e8aa7a9b-5503-4efe-bc0b-f8afc7d2a54c","block_type":"box","text":"of which sponsor and/or provide liquidity suppor t to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":90,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"9281ac3c-4918-4e65-823f-3d33a0defde1","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":90,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"19aafd5c-b1ac-4c09-baf2-9fb062c9ef82","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":90,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"3019933d-8a63-4da4-97eb-d6561ad0027f","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":90,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"826e1820-1914-444b-9edb-16197a651403","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":90,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"e6695438-1ba2-4cf1-bc33-2746be3fc1ca","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":90,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"cc481bd5-a9d4-41b8-9a0d-ae9c80b39807","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":90,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"b4836845-3979-4375-b444-5972f95d0550","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":90,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"a8dcffe3-afbd-48eb-ae7f-a6cfbd06e816","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":90,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"a07a35ae-e22b-46b2-859e-5509e9d22212","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":90,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"c13da6af-4732-4a17-aea2-ddf8424153fa","block_type":"box","text":"Protection Act (the “Volcker Rule”), market par ticipants have developed a structure for TOB Trusts designed to","page_number":90,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"8718d1d0-aba2-4716-8be6-fee3b440dfd4","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":90,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"23c9ed90-ad89-49f4-8bda-544f6c6ee498","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, cer tain","page_number":90,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"9509aebc-3548-4e56-866a-690282d66546","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be per formed by, or on behalf of, a Fund. A Fund","page_number":90,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"0ca9d334-a829-4012-8232-4b4a70990b30","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":90,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"91edb265-4b8e-4622-afaf-88059148037f","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":90,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"a55053c0-9e87-4341-a6c9-254d02852dc6","block_type":"box","text":"this TOB Trust structure, a Fund has cer tain additional duties and responsibilities, which may give rise to cer tain","page_number":90,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"cd3ee5cb-355f-4c2b-a1cd-f7280bb83091","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":90,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"8a54cfcd-af86-4b09-9e12-3ef0345098c2","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":90,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"a41484fb-7fcc-4f32-98b6-f9c72bea715c","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":90,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"a11e763e-67d8-49a1-804a-d115fd073aa9","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":90,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"7c408a0e-eee0-4388-ad38-12926369974b","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-par ty investors, and the proceeds of the sale of","page_number":90,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"c9b407e2-49f2-4187-8b93-43cdc1077d5e","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":90,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"fd7872c8-6ccf-4a65-bbd1-b7dc061429e0","block_type":"box","text":"i.e.","page_number":90,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"bc9cdaf9-5b95-4627-8ec6-769c0ebcce6b","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":90,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"67337278-627c-4b46-a4bd-5789fb952d7a","block_type":"box","text":"suppor ted by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":90,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"571761eb-08c0-498b-b9f9-75fbaae8c002","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":90,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"d9e39fbc-be1d-48ce-9de4-ef898f1560c5","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":90,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"0c79a20c-f5dd-4549-b051-dfcda5f0054d","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":90,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"18ab4d48-fe0c-421c-9fad-1b71fd1b0b37","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":90,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"915ee8fe-34ec-44a5-9adf-0618bf117391","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":90,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"861c9b14-1d0f-41cd-bb5f-226e07273b7e","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":90,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"33e88263-a82e-450a-9428-046667e32640","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":90,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"fd64bc20-4b5c-4516-bd83-0aa39256b3f0","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shor tfall, there would generally be no","page_number":90,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"3b90da78-2a1d-4c7f-a54e-fc8551fd08f3","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":90,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"97c09259-b1f3-4843-9d3a-d7d50dad2c86","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shor tfall if it holds a recourse TOB Residual.","page_number":90,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"26f01fb1-a460-401b-ae33-f1686c694c9b","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":90,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"5d474b14-ad17-43ac-890d-ac76b5c61209","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":90,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"668ac526-7751-4ee9-b4a9-51b9294220cd","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets suppor ting the TOB Trust’s Municipal","page_number":90,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"03971be9-31c4-4d41-a09c-9e7d45691c47","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":90,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"da48baac-4097-498d-8a9a-8fa6c250c1ef","block_type":"box","text":"increase the costs of such transactions in cer tain circumstances.","page_number":90,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"ae6ba85e-8532-41c8-9533-9b3f067087a6","block_type":"box","text":"TOB Trust transactions constitute an impor tant component of the municipal bond market. Accordingly,","page_number":90,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"857a826f-efcf-469b-ba03-a9c34b6e5ce4","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":90,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"d9049dd7-0dd4-42da-ab9c-9e90600363a1","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":90,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"53e76ec0-f380-4f7a-9936-dcbe725f42cd","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":90,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"a6ddce17-f156-4f8b-ab6e-b75bc6c68dfd","block_type":"box","text":"market is not yet cer tain.","page_number":90,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"9506a634-e5a6-4e83-837e-1a861da94028","block_type":"box","text":"Yields.","page_number":90,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"211b16ec-2e19-4431-9531-0f7d2d2da67f","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":90,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"0ae4bce4-7e0c-4d35-a39a-5b31dd8f89c0","block_type":"box","text":"money market and of the municipal bond market, the size of a par ticular offering, the financial condition of the","page_number":90,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"594c60d6-1a45-4267-9d8a-12855581d0d9","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":90,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"94e63bac-faba-4e6e-98d4-10e22eb47175","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":90,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"92cce9b5-24d4-4471-a5ab-854199daf0b8","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":90,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"9ab48183-65e9-42cf-8f60-62e98ad40885","block_type":"box","text":"II-60","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e32e8f35-7ec2-4928-9d27-cf0ffc0bc0d0","block_type":"box","text":"NM0926U-5977728-90/232","page_number":90,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"015b3c34-09d7-4465-bdfc-01462b03f1b6","block_type":"box","text":"holding Municipal Bonds, both within a par ticular classification and between classifications, depending on numerous","page_number":91,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"a5d023b9-4e51-4912-8566-5b3fd1af6689","block_type":"box","text":"factors. Fur thermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":91,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"2bfc5d90-5a8c-4cba-b7a7-b922f3f5012a","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and cour t decisions affecting the rights","page_number":91,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"90e215b4-75b4-4afa-8c86-61441b9bcc32","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of cer tain remedies.","page_number":91,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"a1e32a04-33ed-40d8-aa5b-5357666e7e82","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":91,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"dabd48a9-230d-4a36-84f8-4c2ed8f59bc6","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":91,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"ca5f833c-ee26-4db7-99bb-81a8733d41ee","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the par t of the holder thereof to receive payment","page_number":91,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"7c1345d6-269d-4dbf-acbf-ff596904111e","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a shor t notice period not to exceed seven days.","page_number":91,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"243cd34e-3185-46d3-8ca8-912c6016912c","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":91,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"5205f33b-29e4-42cb-bfe8-f042f44b23e3","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":91,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"2e3628b2-0c84-45a6-9b79-ae9f625fccd0","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":91,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"490da25d-cfae-470d-97b1-1ed29795493c","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":91,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"2d1ff2b9-be8b-42a9-a8a9-1b57eec005e1","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":91,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"0ec02935-baa2-41dd-ba15-25e780550d3c","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":91,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"8567c3ab-6097-4874-8e9c-6abd130360ce","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":91,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"00d771ae-e25f-4afd-9815-ea7bb4c5cd2c","block_type":"box","text":"oppor tunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":91,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"f0560400-a963-445c-bb73-06da69933ab3","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":91,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"877f7299-2071-4cc4-a937-07751d8a4dcb","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":91,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"e7f6f665-33a7-4be1-aa35-1adb25794423","block_type":"box","text":"The Municipal Funds and cer tain other funds","page_number":91,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"3831bcaf-5021-4dc3-ae39-9cbd50fa0d70","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":91,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"2f3e6784-1436-4164-8b5c-26dfc1c67a27","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":91,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"4d1c2e4c-6d41-4bb7-bf71-99ba8b48181b","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":91,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"049218b9-5764-4d2c-9bab-0975c8058115","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":91,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"bc9dcfa7-a59e-4e0e-bc0e-1959d8e28e4f","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":91,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"91caec50-f2d4-49ca-95b0-b22219952b3b","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":91,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"02d0403e-6bc6-4c08-9a7a-685d8d1109d0","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":91,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"45ff0e84-cc66-47a4-954e-b04042e5b3ba","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":91,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"dabb73e5-63f2-42f2-afc4-6e1e24758940","block_type":"box","text":"assures per formance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":91,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"63b4bd49-f9c8-48c5-a013-00aee59fc562","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":91,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"b9ddab9f-d2d0-4973-9ad3-425e2fdf1696","block_type":"box","text":"The par ticular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":91,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"4b384397-0ed7-421d-9ac7-1f8f1c4e4a28","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":91,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"a6789f59-e954-4a88-a5bf-7bbb5b1904d2","block_type":"box","text":"effectively all or a por tion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":91,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"10f0137d-0db7-41f3-8a37-9aceb242345e","block_type":"box","text":"depend in par t on the degree to which price movements in the index underlying the financial futures contract","page_number":91,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"9dbaeae0-0f67-4a07-a437-96fcb37224ad","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":91,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"d43e0d1d-a14f-47f1-9b98-a6980a5d8238","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":91,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"24bbd831-4416-4a15-a94f-6ffd469ddcaa","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":91,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"4f5e3cd3-a22e-4c4d-a598-4e7a74c07984","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":91,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"c113020e-e104-4390-ae7e-6fed7ae80ad4","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":91,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"ec3da84d-111d-43d7-85c5-9cf353cbf69a","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":91,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"21c6fc1f-d5de-4a2f-ae33-225644fbe53b","block_type":"box","text":"affected by similar factors and the risk of imper fect correlation between movements in the prices of such futures","page_number":91,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"373a6014-a272-43a2-b0ad-ba2d930e0ae9","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":91,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"727f4031-2a4a-4e07-b25c-1791535b5cc8","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":91,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"86fcb781-de2e-46da-b447-7cb4adcd7cf3","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to cer tain market risks, such as inadequate","page_number":91,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"d6beb0af-dab0-4c1d-a155-a5e6ad323639","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":91,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"8637ca12-5c7d-48f7-adeb-c3b5c2655fd9","block_type":"box","text":"Call Rights.","page_number":91,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"386d3e0f-7ec1-4175-8d64-c29a550fa5dd","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a por tion of such Municipal Bond","page_number":91,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"be4de7d7-9755-48ab-8811-cda60bcb57af","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":91,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"78fd5703-0ec4-4f90-8055-0999f4f7f674","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to cer tain conditions. A Call Right that is not","page_number":91,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"ef215c3e-b980-4e0c-857d-560fd43e41b6","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":91,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"1c29a133-5d2c-4355-8372-fa7bf8e6b281","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":91,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"13f5deb7-ae50-441a-bbfd-0e21f9b310d0","block_type":"box","text":"Cer tain investments in such obligations may be illiquid.","page_number":91,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"6432353e-82a3-43a3-900b-dc72adc10b4a","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":91,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"efd3f1c3-79e5-4661-9768-b58a5a5a5bba","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":91,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"9fbe370e-a0ef-43a5-83ce-feb6714d6923","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":91,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"418dd5cb-4e86-4ac8-9653-9edc52e9e3a9","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":91,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"d9efa02e-4cef-43b4-b844-38cc51b3dcd1","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":91,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"add34e21-97c5-4558-a241-bc6d1ebaac58","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a par ticular investment or por tion of its por tfolio or to","page_number":91,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"59399798-39b1-4a76-95db-11be054b693d","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":91,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"d1a5f679-181d-4c18-8488-ebe3ea77f481","block_type":"box","text":"II-61","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b5312059-d420-4b95-b794-45dd6907cddf","block_type":"box","text":"NM0926U-5977728-91/232","page_number":91,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d13f763e-ff70-4716-8141-156b663bdea3","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":92,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"23e38a87-e9e1-42c4-9425-1ae0efb1fff3","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":92,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"0d123ea7-a2b4-452f-b738-fc7fe7707b29","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":92,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"2c6a277f-77df-4406-a438-730ff6893e20","block_type":"box","text":"i.e.","page_number":92,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"769482dd-9c3d-41f1-b0fe-5a99562f55a3","block_type":"box","text":", wide differences between shor t-term and long-term interest","page_number":92,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"5c3206bb-fe9c-41af-a5b6-65125e7ff39d","block_type":"box","text":"rates).","page_number":92,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"ffcb2dd0-c762-4e44-ad5a-c0d57da8fe34","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":92,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"7d7ba7e7-8f7b-4388-a10c-4973d0aa3089","block_type":"box","text":"another par ty their respective commitments to pay or receive interest (","page_number":92,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"651783b1-8d83-4885-aae4-63513ecc664e","block_type":"box","text":"e.g.","page_number":92,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"da4dae9b-1509-48bf-9508-4cacc6395955","block_type":"box","text":", an exchange of fixed rate payments for","page_number":92,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"1a495a84-12ad-4979-877d-cac1f13ae1bf","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":92,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"b97425f5-e9b9-4765-a478-f1d37e6d6d5c","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":92,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"b6474db5-17a9-4e8e-b79e-957181f84450","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":92,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"fbaa829a-cba0-47f8-908b-75dcd40f7223","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":92,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"ade8256b-a4e5-4a31-8836-512a865c12de","block_type":"box","text":"with the same attributes as the swap (","page_number":92,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"d16a73c1-819a-4469-b993-0796cf8ed028","block_type":"box","text":"e.g.","page_number":92,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"87f7a7dd-aad4-4a07-94d8-f43fd2dc5123","block_type":"box","text":", coupon, maturity, call feature).","page_number":92,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"1515e4fc-9b6f-4d69-b42b-f1fcc136b6db","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":92,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"8967991a-b4ca-4590-85c2-e08934c25cac","block_type":"box","text":"to lock in a specified municipal interest rate for a por tion of its por tfolio to preserve a return on a par ticular","page_number":92,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"a850c3bd-d4d8-4ca4-83da-612a65b700cf","block_type":"box","text":"investment or a por tion of its por tfolio as a duration management technique or to protect against any increase in the","page_number":92,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"a819bb9e-87df-463a-8228-0c2d51e47f28","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":92,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"4e0c4051-fc06-4f5b-a658-ce439de05068","block_type":"box","text":"shor t position, allowing the Fund to select the most attractive par t of the yield curve. An MMD Swap is a contract","page_number":92,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"ebec2c33-8564-43eb-94ef-579221b14266","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the par ties agree to make payments to each other on","page_number":92,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"539d5202-13d8-4256-9e78-5ced31e8f224","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":92,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"83d3fdd8-ecf0-4f79-9b0d-3ebc241464df","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":92,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"f37ee867-e923-46d7-8b14-04d835cf6d47","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":92,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"ef36614b-9f8f-4e5e-b60b-3109f4835021","block_type":"box","text":"counterpar ty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":92,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"81eea9bf-b2a8-43af-bca8-57b8aea5cd37","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":92,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"807e602b-9a21-4c1d-bf04-1dad450ad380","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterpar ty equal to the actual level","page_number":92,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"298470d8-7a4c-46d3-9ceb-2d5b76565fad","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":92,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"62e3e4f6-6dba-4830-a96b-c3c9db25d44d","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":92,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"64ca873f-1b4a-4bc3-b6bb-9d0b6a13501d","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterpar ty in","page_number":92,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"23e05920-a06b-420e-807e-cdd013d34ff8","block_type":"box","text":"the transaction that could adversely affect the Fund’s per formance.","page_number":92,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"e74cb70c-cb56-410a-ab98-3cde672eb418","block_type":"box","text":"Insured Municipal Bonds.","page_number":92,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"a88039f1-1ac0-4ec0-8bcb-704707117453","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":92,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"e5e5ce22-d2f3-44f7-a500-60095e21faca","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":92,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"c0d9e3b2-827b-4878-9d9f-aa83d1209260","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":92,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"d7237048-24b0-4baf-abb1-4d86747a37bb","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":92,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"dc997f12-31cb-4905-9849-c9cc1a52b3f5","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be cer tain that any","page_number":92,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"6e2a10bb-5cd9-48b6-a233-c27a94bde8cf","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":92,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"5d00816a-087f-4c6a-b227-e5e628033cde","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":92,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"e6ed55b7-263a-4074-9035-7f6233e9bb10","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":92,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"744868e0-0c22-413e-afcc-9a794f09439f","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":92,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"6aa7d4dd-6811-4cca-b0a1-c085ccbb8bb9","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":92,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"5edf8549-bed9-4c05-a79f-32be96265043","block_type":"box","text":"bond could drop.","page_number":92,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"a5479733-8eea-485a-8ab8-6651a798bb7f","block_type":"box","text":"Build America Bonds.","page_number":92,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"f4ed8627-4972-4d7c-a67e-49677172eee7","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":92,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"56c38195-5cee-4d70-91e1-68795a5c424e","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":92,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"c48c49f8-026d-4549-8612-439c0efa7a72","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":92,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"11f52d55-76f8-4a04-8f74-7a9274af64a9","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":92,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"ef8d612c-c1d7-4929-bf33-98605bc1111d","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":92,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"7a8beb4c-d7fc-4292-af7c-32d1f84410df","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":92,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"16b79b5e-04b2-44f3-87de-1339fba3dda4","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":92,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"58d4538e-36e1-43a5-a889-bbf03fad59cf","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":92,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"3845e647-b4f7-459b-8c6b-25e51b398ba3","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":92,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"cae2f6e9-3bf6-421c-a66c-d07b03cbdf54","block_type":"box","text":"must meet cer tain requirements specified in the Code), a “Build America Bond” (which includes cer tain qualified","page_number":92,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"7e4fd7f9-d83a-49e3-941b-9c4ea9b2523f","block_type":"box","text":"bonds issued before January 1, 2011) or cer tain other specified bonds. If the Fund were to so elect, a shareholder","page_number":92,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"9efcf52b-05fd-4265-80b3-800d08ae3602","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":92,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"723fc708-b520-4e28-8682-a528942c57e9","block_type":"box","text":"propor tionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":92,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"f49502b9-2d3a-4208-9d58-bdb46c609515","block_type":"box","text":"Cer tain limitations may apply on the extent to which the credit may be claimed.","page_number":92,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"2fde0b27-fcf1-4019-a2ba-f142961c4e10","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":92,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"151d1544-43b6-4c4f-a79a-9362d48a9f38","block_type":"box","text":"Cer tain Funds may hold tax-exempt municipal investments which may be in","page_number":92,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"39d8628a-c936-4378-8f17-9645ee7e2d3a","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, par ticipations, beneficial interests in a trust,","page_number":92,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"884748a1-b09f-4438-97b1-74c771c861fd","block_type":"box","text":"par tnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":92,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"58bc413a-2713-4d9c-843b-8275ae1f6c53","block_type":"box","text":"II-62","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"95517bc4-ee0d-4c73-87e9-59d196f53859","block_type":"box","text":"NM0926U-5977728-92/232","page_number":92,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d72614d1-10d4-4cd3-a85e-96fc05c2880d","block_type":"box","text":"of the structures used by cer tain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":93,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"d9d2c561-ea2e-49cd-b54d-61e5d25f7fe2","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":93,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"097b3890-1298-459b-ad16-dce54d4280f4","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":93,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"7167a4be-0030-4c1e-82ce-9272217da23e","block_type":"box","text":"municipal debt obligation to a third par ty at periodic intervals and to receive the principal amount thereof.","page_number":93,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"35308ba4-8252-46a8-8937-25e0d40db03b","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":93,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"a1cfe671-f38c-4e6e-bb3a-f82cc6c6d7f0","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":93,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"ae8f08e0-4064-4029-970d-9fbc33018f06","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":93,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"3678654c-0b0b-447f-bbde-aa4f05bb5d90","block_type":"box","text":"their face value to the sponsor (","page_number":93,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"431d127f-8222-4223-8efb-51f1fab3aebd","block_type":"box","text":"e.g.","page_number":93,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"464bfa32-a939-4c1d-866f-eea7f5de4b1e","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":93,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"01a7edf1-19d1-4259-84c1-0034c2095545","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":93,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"baa85ca9-bf8b-4f56-b464-af9e0e339076","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":93,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"8693b3b0-9f17-4438-878d-b29a527fafcf","block_type":"box","text":"A par ticipation interest gives the Fund an undivided interest in a Municipal Bond in the propor tion the Fund’s","page_number":93,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"706bdacc-dad7-44dd-b8c0-4e9fb9fe934a","block_type":"box","text":"par ticipation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":93,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"5fcef125-68b1-4979-a4bd-22fe3db610d6","block_type":"box","text":"feature for all or any par t of the full principal amount of the par ticipation interest, plus accrued interest. Trusts and","page_number":93,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"e773409d-e5b9-487b-8a67-0146341d0fac","block_type":"box","text":"par tnerships are typically used to conver t long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":93,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"174e0e76-930f-4d9e-908c-ba2a329f3ae8","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":93,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"993267ab-735c-4381-b701-522caea2661c","block_type":"box","text":"The Municipal Bond Funds may hold par ticipation interests and custodial receipts for municipal debt obligations","page_number":93,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"608bdc7f-000b-4470-aa69-daf666031cfb","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":93,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"a9615106-b8b0-40a9-a6d8-8275f0507245","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of par ticipation interests","page_number":93,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"bb23ffe0-6fc4-432f-8013-0a21dfdc5c6b","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":93,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"553f0252-e05c-4214-b686-8447c3db2a47","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":93,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"2a6f4b84-b0be-4938-acc7-6e2af203fd17","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":93,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"a572b060-1b1c-4c4d-9460-4bb711dcad22","block_type":"box","text":"such opinions.","page_number":93,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"b0d5d9f0-42f1-46cd-9135-c6ececd750b6","block_type":"box","text":"Operational and Technology Risks.","page_number":93,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"4a31ae99-a5cf-41e1-a721-f747b8d6dd20","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":93,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"a91e3921-052c-4e9f-9d30-89337692a898","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":93,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"a2a555f1-b75c-4bdb-a849-92a864101fa1","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of ar tificial intelligence and machine","page_number":93,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"e7326f87-61a9-48ef-a35a-2dcd434decdf","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":93,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"8df80520-1959-4fed-b337-67e428aa13ff","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":93,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"55b5209a-8b9e-4a39-b263-d70438b112a2","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":93,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"ab1b3b07-1963-4af9-b92e-1b68fd72ad09","block_type":"box","text":"counterpar ties, market makers, Authorized Par ticipants, listing exchanges, other financial market operators, and","page_number":93,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"745fd36c-8cdc-4fb8-9bf8-af73cb22e458","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":93,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"4a511ce5-c0cf-45ab-a3d1-52052182049f","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":93,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"182b6eac-618c-47c8-8af5-97a9ae3b0124","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":93,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"8ebfb75e-c2ce-4318-8e60-37cc84856f29","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":93,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"d61eeaf7-0134-4d05-9693-0acbe3f22a0b","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":93,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"5b582cac-2daf-4e5c-a956-3885d73b7480","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":93,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"84027ca8-e4ba-4980-b8c1-96d26a928c00","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":93,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"7ef666db-d229-4549-ac01-7f0e4847d538","block_type":"box","text":"par ticularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":93,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"66041ca4-63b1-48be-aa6b-1b9469b578c5","block_type":"box","text":"any of the following: financial losses; inter ference with the Fund’s ability to calculate its NAV; disclosure of","page_number":93,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"46f3879f-a7a6-4f97-926d-f6d73dba2efd","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":93,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"8fa40f74-4121-42bc-83e0-a4a7092e02bd","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":93,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"78ba0aca-6c1c-4fd7-847d-30a86f9fa6f2","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":93,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"26940730-01f3-44c9-a6d8-bb2de0272f11","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Fur thermore, cybersecurity incidents may render","page_number":93,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"7656be5f-86fa-4fc4-96a6-9ccc669b033a","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":93,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"e1f69e70-771d-44fc-906a-898cae070cc8","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":93,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"c20b2f1e-5d11-47f3-a20b-8cca7f6e0135","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":93,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"d29bde6d-b85b-4445-b4b4-add64f96fe62","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":93,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"36b9276b-140b-4ed8-af4d-719417afdd8e","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":93,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"fd463ef6-669c-44c7-84c7-631a5b05f09d","block_type":"box","text":"to the Fund and its por tfolio investments. These advancements could harm the Fund and its por tfolio investments by","page_number":93,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"4765280b-34c3-4a87-9547-024a653850ee","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s por tfolio investments. Additionally,","page_number":93,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"b9c5cb38-0678-4670-9280-09063364b6ff","block_type":"box","text":"these advancements could significantly disrupt the Fund’s por tfolio investments and subject them to increased","page_number":93,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"cbf318d9-18ad-4619-a20b-86c61e4cbcbf","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":93,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"4df67270-6a6c-4f70-9c26-e51b2c3b1acc","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":93,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"467ab59f-e0c7-40ed-a41e-cb97c10f845a","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":93,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"b90ef298-c604-4f14-becb-4f9d98690f51","block_type":"box","text":"infrastructure assets.","page_number":93,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"f897d95e-a85a-4caa-824b-97571b5287e5","block_type":"box","text":"II-63","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7b07b32a-fcbd-4c2c-a6b1-b77d26c72146","block_type":"box","text":"NM0926U-5977728-93/232","page_number":93,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b00fff37-32c0-4a81-a2fb-7c4928afecbf","block_type":"box","text":"The Fund and its por tfolio investments could be exposed to the risks of AI technology if third-par ty service","page_number":94,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"a490a435-d452-4d2c-be03-13502852a445","block_type":"box","text":"providers or any counterpar ties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":94,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"a6975bb8-37c3-4585-9070-03ff673246eb","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-par ty products","page_number":94,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"f5f29e26-5b1d-4019-9bf0-6e019731433b","block_type":"box","text":"or services.","page_number":94,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"86f9eb7e-fbbf-49ae-b902-b776fa9af9ce","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":94,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"70438658-c5d8-4b35-b182-838e93fcad9e","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":94,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"bed554fd-d178-4e60-aa98-bf5490b28aae","block_type":"box","text":"other third-par ty AI technology applications and users.","page_number":94,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"d87c911d-ea2a-466c-a697-4cc1e90d27f3","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":94,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"3f41e6c3-587a-4079-b4a2-490a412bd757","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":94,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"c8684e64-89c6-4ef1-b1a2-4c4d175d8b63","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Cer tain data in such models will inevitably","page_number":94,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"38cb72ed-bd94-4ad2-8048-22f2142022c3","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":94,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"dfc27a62-0758-497e-b232-5863681e9650","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":94,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"078e5025-c801-41b0-90f0-28b5b521a8d8","block_type":"box","text":"incomplete, erroneous, distor ted, or misleading. Fur ther, AI tools may lack transparency as to how data is utilized","page_number":94,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"7058f7c3-4c84-4fa0-8cfc-35d334d160fd","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":94,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"180a80a3-d307-4d45-b89c-24bb737f6570","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its por tfolio investments are exposed to the risks of","page_number":94,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"a88829b1-b4bf-4bf4-a6bf-4096d72b2ed9","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":94,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"80e16415-b464-4f10-80ed-46e423fa116c","block_type":"box","text":"Regulations related to AI technology could also impose cer tain obligations and costs related to monitoring and","page_number":94,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"4280f4d2-6f48-4131-a182-47a458ea5491","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Depar tment of Justice, Consumer","page_number":94,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"75981029-3ddd-4145-aafc-6e99169ad721","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Oppor tunity Commission released a joint statement on","page_number":94,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"075722c9-1bdc-4f2d-aacd-67fb4633c3ab","block_type":"box","text":"ar tificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":94,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"8e1790a6-c149-44f6-83a8-140ff4f2bbce","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":94,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"7ab4d74e-d8da-4b03-84b3-ae7d70bcab71","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Ar tificial","page_number":94,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"23ab6dbb-4327-4b32-8645-c753e015218f","block_type":"box","text":"Intelligence Act, which applies to cer tain AI technology and the data used to train, test, and deploy them, which may","page_number":94,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"92f648d1-093c-4f4b-8902-f7abc44e1f36","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":94,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"d7e7fcfa-63d5-4a23-a42c-91141ac99714","block_type":"box","text":"adviser, or the Fund’s por tfolio investments fail to comply.","page_number":94,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"b7a20bb7-6667-4e70-b1ce-5fcce76d57d8","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":94,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"a5a28811-7d99-40e3-806f-37b08c49b7c9","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":94,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"949bfdc7-768a-4d14-886c-84ba0be2c1f0","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":94,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"c95b0c2f-2d95-4e25-b4b9-3256e35a2cdd","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":94,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"7fa1b005-5339-4122-9d08-d000fad9e14f","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":94,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"e5735a9f-bf02-4c86-a5ff-e27b50347533","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":94,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"1fecae91-1273-4047-bafe-ddf8fe980993","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":94,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"4e13f18c-19b9-4e29-be66-48e54dcf4e37","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":94,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"28963566-749e-496f-8602-4180681fcdfd","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":94,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"bd7e5360-6839-48bb-983a-0ef9187a5334","block_type":"box","text":"plans and systems, including the possibility that cer tain risks that may affect the Fund have not been identified or","page_number":94,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"4b8f1bb4-c819-4c60-a800-444030ca9153","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":94,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"cef73240-33ef-48cf-a80d-58e56224fff2","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":94,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"b15ca059-c3ad-4ef3-baa1-dba60aa485e4","block_type":"box","text":"and remediation effor ts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":94,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"958102a3-9cb6-4979-99db-a7eb81acb7db","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":94,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"4d15a642-cfc0-42c0-89b6-78d1e0a8eeda","block_type":"box","text":"counterpar ties, and other third par ties whose activities affect the Fund.","page_number":94,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"a4d4df83-b493-4679-95e2-41c82253d3d8","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":94,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"6498c2ca-a0f8-4250-9727-e21bc5026686","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":94,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"ab26f1ec-6ecb-431c-be4f-c1dc7427af7e","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":94,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"d03e9d1d-7cb4-42c9-b1ea-91aa807fa477","block_type":"box","text":"resources to monitor and implement required changes.","page_number":94,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"c1c6c402-aa6b-4ae4-ac2e-465fcd155521","block_type":"box","text":"Participation Notes.","page_number":94,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"a325f8a1-cb5a-49b7-bfc8-cdb0b35cb0ce","block_type":"box","text":"A Fund may buy par ticipation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":94,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"1274c924-bf49-4188-b5ab-cafab8100b11","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":94,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"032de644-de92-4876-bca4-5d9c98347622","block_type":"box","text":"(collectively, the “underlying security”). Par ticipation notes are typically used when a direct investment in the","page_number":94,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"42befe0a-c347-498c-81b7-0bbf4e906f65","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":94,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"8843a48f-a8e7-4d59-bf3b-4659cdd60513","block_type":"box","text":"The Fund is subject to counterpar ty risk associated with each issuer. Investment in a par ticipation note is not","page_number":94,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"69c4232c-d1e7-4794-9ad6-2b1251892cb9","block_type":"box","text":"the same as investment in the constituent shares of the company. A par ticipation note represents only an obligation","page_number":94,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"ecc85c00-fbbc-45ea-9f09-48dabe95862d","block_type":"box","text":"of the issuer to provide the Fund the economic per formance equivalent to holding shares of an underlying security. A","page_number":94,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"6291f777-e4a0-48ba-b794-c978f6876334","block_type":"box","text":"par ticipation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":94,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"6429245a-93ef-4d5d-8fa8-b4058a338d56","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":94,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"b04383aa-0bd6-4059-abd0-3c76b3b6c7a5","block_type":"box","text":"par ticipation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":94,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"4a9d28b1-094d-4be7-b12b-34c393bb5add","block_type":"box","text":"II-64","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1a6b2d45-155f-48dd-b693-a9557606fa86","block_type":"box","text":"NM0926U-5977728-94/232","page_number":94,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"91ea7e32-86da-458a-9f55-0622f9dcd827","block_type":"box","text":"a par ticipation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":95,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"c151d6a0-2c2d-4f08-82a4-969049ff3c12","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the par ticipation note if the issuer fails to per form its","page_number":95,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"8bf7c7fa-b2db-460f-9a09-0fd901c92578","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditwor thy.","page_number":95,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"33bff363-e9d0-4047-bda0-afb0edab3f2d","block_type":"box","text":"The counterpar ty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":95,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"71bfad36-8dac-42f1-8657-a3cb145b0e1b","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":95,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"ed4efb88-dccd-470a-8b47-9f8913388818","block_type":"box","text":"par ticipation note expires or a Fund exercises the par ticipation note and closes its position, the Fund receives a","page_number":95,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"8e1d2bd7-a3d6-4898-ae71-611437a770a4","block_type":"box","text":"payment that is based upon the then-current value of the underlying security conver ted into U.S. dollars (less","page_number":95,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"7c0f58c5-3f2e-4d8f-ad00-d013315736dc","block_type":"box","text":"transaction costs). The price, per formance and liquidity of a par ticipation note are all linked directly to the underlying","page_number":95,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"0b3a1225-1798-4ee8-9227-745bd756d73b","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a par ticipation note generally is dependent on the liquidity in the local","page_number":95,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"88b6e21a-3889-4c5d-8c17-746f401f6451","block_type":"box","text":"trading market for the security underlying the par ticipation note.","page_number":95,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"1cb1112c-96ed-42f8-8078-aad357e93ccc","block_type":"box","text":"Portfolio Turnover Rates.","page_number":95,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"7eaa76f9-8d82-421b-b88b-88a675beb339","block_type":"box","text":"A Fund’s annual por tfolio turnover rate will not be a factor preventing a sale or","page_number":95,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"180b82ab-481d-47cf-b36f-c9f200fc565b","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although cer tain","page_number":95,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"bb1b1cd5-638c-4d7a-9025-8497ec80e4c0","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":95,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"2749a7b6-58b1-480c-a3ee-8f8bcf74a4d2","block_type":"box","text":"substantial number of por tfolio transactions. With respect to these Funds, the rate of por tfolio turnover will be a","page_number":95,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"1a99cb92-3870-48d5-b74e-03c8262f4357","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":95,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"467f703d-a360-4090-8f5e-51990c8b0bf6","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Por tfolio turnover may vary","page_number":95,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"d11e5e06-376c-46c8-9e16-58605ab0caff","block_type":"box","text":"greatly from year to year as well as within a par ticular year. High por tfolio turnover (","page_number":95,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"6debb655-3c9e-4480-bbdf-1216809b442c","block_type":"box","text":"i.e.","page_number":95,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"549d7bc5-ee56-4462-82e9-66cbebb5f40d","block_type":"box","text":", 100% or more) may result in","page_number":95,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"96952f30-ed33-478e-9e5d-856a9989f643","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":95,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"0938f3c4-2a57-478f-8d95-3f458963f2a6","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":95,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"e41547c4-2cd0-4be3-97d2-ff32723ba3de","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be shor t-term capital","page_number":95,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"1b89e850-abeb-4aed-acdb-348f56df39f1","block_type":"box","text":"gain or loss. These effects of higher than normal por tfolio turnover may adversely affect a Fund’s per formance.","page_number":95,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"5a22faf8-a230-4692-9a5b-3d23a90a5a61","block_type":"box","text":"Preferred Stock.","page_number":95,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"a182810e-4794-44cd-a005-44fb3cbec35b","block_type":"box","text":"Cer tain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":95,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"a74976ef-326f-4b4a-9d90-c29fbf1ce041","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":95,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"0208bb1d-4d6f-45dd-bf37-47452c463fe2","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":95,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"d4b5140e-8a05-44fe-9c68-355f737f6086","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of conver tible preferred stock","page_number":95,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"49474e62-2fc7-4bc6-9846-fafc251b9a41","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":95,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"88ee4956-459b-47be-ba6f-4302364d32c7","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":95,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"d0334d47-3a4e-435f-8bde-2ba4492ce816","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":95,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"3aa28ef4-4e26-42c2-91c4-8b75cb943983","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":95,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"b887db64-08fc-494a-b10d-a39f0640ab4b","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":95,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"e793b1ec-ae68-4ada-a1e7-4f608a7ce02e","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":95,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"0f3a01d3-a63b-4f02-93f2-281ba2a2d384","block_type":"box","text":"Cer tain Funds may invest in preferred interests of other investment funds that pay","page_number":95,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"a1ece122-df29-4178-a2f7-0bc08aba9ff8","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":95,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"66cf891c-778f-47fc-b24b-9314e47c615d","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":95,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"70b11948-6bed-41c6-91d2-ea022ad4b737","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":95,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"1d439218-6138-4a2b-a7fe-23af47381fda","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":95,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"65156c1b-c8ef-43e5-a790-eab9f56d1980","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":95,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"b108eb18-8f31-4c67-b09d-6cb31b82daf2","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":95,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"a715e7f1-dcc9-4f9a-9a34-1c0ed0f5bbd9","block_type":"box","text":"and concentration of investments in par ticular issuers or industries. The Municipal Bond Funds will treat investments","page_number":95,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"9b089fa7-85bf-47aa-9d88-afb92a81861b","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":95,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"bfd066ad-098a-424b-802a-fcd713c23d3f","block_type":"box","text":"Trust Preferred Securities.","page_number":95,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"bc9820c4-75fe-4bb5-aa23-6ebec3c4cbe1","block_type":"box","text":"Cer tain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":95,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"2176829e-fefd-4d7f-9503-5320aad31efa","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":95,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"d3dc2a53-4063-497a-8a5a-b1c3ce049f27","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":95,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"01e4390b-11d4-4ca9-85fd-bc103a9dadc2","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":95,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"11866df5-ca26-4096-87c4-b06dc1dabe37","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":95,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"b1daf36d-4dcf-4266-b9ac-f059f7665b13","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":95,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"6d6ea43c-52ff-4c4c-b2db-53244e2a56b3","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":95,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"a446f82e-ceaf-455e-a195-934c4437ef23","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":95,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"83dad6c1-22af-403f-92e1-70e837e949dd","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":95,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"d3246486-64e3-4b93-b0e4-9d7dc72e5de3","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and cer tain other features (such as","page_number":95,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"6b418481-4b1c-4516-a31c-57bdbdc27cdc","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":95,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"275487a4-8943-4be2-a3c0-a58b42fd0a8e","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":95,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"45fa95d3-8950-41ec-b695-a3a58c39d758","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":95,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"bbe31fb1-bfda-4aa1-ac57-8c4e17658efc","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":95,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"853cbd38-8209-4117-a20e-815de572d1b7","block_type":"box","text":"®","page_number":95,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"ac14c338-fe85-4e83-a53d-608fd2e5be98","block_type":"box","text":"”); monthly","page_number":95,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"adc684ba-a7f8-4fb2-a3cf-be359985c6a1","block_type":"box","text":"income preferred securities (“MIPS","page_number":95,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"4ee5f36e-6755-4a1b-a603-9cf7343b84f9","block_type":"box","text":"®","page_number":95,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"98bdbb86-1b3b-464b-81ec-87674a88e149","block_type":"box","text":"”); quar terly income bond securities (“QUIBS","page_number":95,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"44f9f2e6-89de-4fba-ab8c-d9cfc97ca935","block_type":"box","text":"®","page_number":95,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"2170886d-30fa-4323-89c8-9bc765bae39e","block_type":"box","text":"” ); quar terly income debt securities","page_number":95,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"332f114e-a8c7-45c7-ad8e-4243ad268212","block_type":"box","text":"II-65","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1372d982-f3ae-4f87-8161-99e063e0a159","block_type":"box","text":"NM0926U-5977728-95/232","page_number":95,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"43fd0b4f-2fbd-42a5-9c02-b8c8f24b639e","block_type":"box","text":"(“QUIDS","page_number":96,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"66fa70fc-0724-41fa-9011-0a7e06215751","block_type":"box","text":"®","page_number":96,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"dd35fa58-5ecd-4757-a37f-1590133f6f89","block_type":"box","text":"”); quar terly income preferred securities (“QUIPS","page_number":96,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"6af16dc2-261e-48da-aa40-da9a96af26a7","block_type":"box","text":"SM","page_number":96,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"e075af63-1587-4f67-8d89-2588b39c743a","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":96,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"08f0ff6b-dc86-4e4c-995a-17b58108ae27","block_type":"box","text":"®","page_number":96,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"bf056c22-f473-4da1-af03-5ff38b2b6495","block_type":"box","text":"”); public income","page_number":96,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"5b79b245-a99c-46d7-bf07-0913a25b1c5f","block_type":"box","text":"notes (“PINES","page_number":96,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"e243f656-e1e5-4171-90b9-712c9309d297","block_type":"box","text":"®","page_number":96,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"85d5ab75-e699-4a63-8d82-548f4261fdc7","block_type":"box","text":"”); and other trust preferred securities.","page_number":96,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"261c5c8e-2b56-4c50-a2b2-fb8196f18c47","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":96,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"f2bb8dd9-1f5f-41d1-8e7e-79ef6f3943fe","block_type":"box","text":"In cer tain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":96,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"384511c1-5849-4e7f-b0bc-03d23ef8e94a","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":96,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"6b3e5f53-fe52-4bc7-830a-134d0633b2a4","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":96,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"7d8d6903-9429-4f9f-946f-c714a0b4f524","block_type":"box","text":"regard to whether all payments have been paid.","page_number":96,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"8ee1a27e-c568-49ea-924c-f326be2ac55e","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":96,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"8d1fdcf7-93ff-4091-be40-d3cb4f426cea","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":96,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"dc3ef23e-d14a-4265-b1de-67b5e7479e63","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":96,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"ea2ad168-3ddf-4dd7-8647-22042af80c3d","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":96,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"8b56544c-a71f-4248-bbb8-c8e03f50865f","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":96,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"a06790e8-09d5-46ec-8728-0261d2f6ad86","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":96,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"e06a33f6-e2d2-4e85-aa4b-d4bd965f7bfa","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":96,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"86451627-8a05-402f-be58-2ba97afa210a","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":96,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"0f438e7d-b10f-4764-aad0-fd58b5c27284","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":96,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"08d89ce2-e02a-444b-bf58-8bd73cfb3a72","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":96,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"f58506bc-b258-4d06-b4c2-e292ba495c71","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":96,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"890a6c52-edaa-4c5b-a722-f3681febcf03","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":96,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"ae5c36f7-ab90-4002-b32d-2a20b4e62d43","block_type":"box","text":"debt securities.","page_number":96,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"5e0854db-aa2d-4f60-b48f-700126148818","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":96,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"61c37eab-e171-4744-b5a1-e5646ade168f","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":96,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"7c7709dd-5ca8-4584-a8c1-61ac68a3fc42","block_type":"box","text":"REITs. REITs possess cer tain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":96,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"98a783dd-a296-4b35-9f96-ab5407661d84","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":96,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"cd474d3d-1261-4181-b2f7-fea8b2a6a0f1","block_type":"box","text":"geographic areas or in specific proper ty types,","page_number":96,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"63aad8d5-814d-441f-9af4-61193a914251","block_type":"box","text":"i.e.","page_number":96,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"1e344464-df38-4653-85ce-13162f829eb8","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":96,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"1634359c-0d12-498d-9a6c-35dd2317c8dd","block_type":"box","text":"buildings.","page_number":96,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"6096d7a7-97d3-4dea-ac22-ff4513b8641f","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":96,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"d2f71ead-9054-4411-8aa1-6cf7bf9147e9","block_type":"box","text":"propor tionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":96,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"c2da8a7a-a2d7-4b3e-bb7e-9ccfeb34f445","block_type":"box","text":"Mor tgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":96,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"4b50d99b-691e-41f3-ac36-33fe53d52a4a","block_type":"box","text":"proper ty, which derive most of their income from rents. Mor tgage REITs invest mostly in mor tgages on real estate,","page_number":96,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"2024d9e7-8359-4f1e-9821-016f4eb9a19b","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mor tgage","page_number":96,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"7560b5b1-aeba-44ff-a21f-19b456dfd67c","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mor tgage interests in real estate.","page_number":96,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"17e6896c-b9be-48fe-892c-82da9d36a366","block_type":"box","text":"Investing in REITs involves cer tain unique risks in addition to those risks associated with investing in the real","page_number":96,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"c23254c0-72e5-4201-8ec0-324292f5c5a0","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":96,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"cb2e3915-7afc-4da3-9007-0486905b7890","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":96,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"0201276b-796f-40da-a1e6-6b39f4337710","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":96,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"adb2b0ed-e07d-4f41-9cb5-a8e8f6b94d22","block_type":"box","text":"safety, convenience and attractiveness of the proper ties, the ability of the owners to provide adequate management,","page_number":96,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"e1666788-8036-4c81-9b0e-fd780adac2a5","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":96,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"c5b4edcb-6f00-4e1d-9f30-97ec2928e9bf","block_type":"box","text":"from new proper ties, the impact of present or future environmental legislation and compliance with environmental","page_number":96,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"7da02f97-f876-423a-9a08-2e9ff20679f3","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":96,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"f34f55d6-2c1a-450b-a704-718b651dad64","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":96,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"4f3017fe-1eed-4f31-898d-5272d15e4475","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":96,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"1f04a047-b567-446d-9a07-4bc444151680","block_type":"box","text":"REIT are concentrated geographically, by proper ty type, or in cer tain other respects, these risks may be heightened.","page_number":96,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"cdfa86f8-ff1e-4a28-ab21-39fde93ba7fd","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":96,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"d1aec15e-0be9-45cb-9091-4e4593253c91","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":96,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"72e932b8-e574-4e0a-9cde-2c9937bb6aba","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":96,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"6540dae8-1df2-4d3f-acdc-1344a3b09948","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s por tfolio which is","page_number":96,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"88fb12fe-678a-4b9d-9e3d-143f53eb57cb","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":96,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"022f57f4-e194-4467-be2d-7a904953ac36","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":96,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"8d022849-0d71-401c-85f4-12c2e40ed611","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":96,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"98b1aaaf-eff3-4b9c-8ab5-8288afbf0619","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may repor t dividends as eligible for this deduction to","page_number":96,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"ec391b70-c5de-4f38-aa04-85c30ddba22f","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":96,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"4e9d8991-e919-4266-85f0-526883d3d7f8","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":96,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"8bf927c0-a8fd-4ab6-a74f-654a7ef0c050","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":96,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"f64a24fa-fad5-450e-9f63-eac5c8774ff6","block_type":"box","text":"REITs (especially mor tgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":96,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"86b2044b-663a-41b7-a9e7-cca2d6de006e","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":96,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"f40c2b82-5da9-4dae-9318-711b9fa5d9c1","block_type":"box","text":"II-66","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"77dc2537-3a9a-4574-90e0-8c597ddf0e6b","block_type":"box","text":"NM0926U-5977728-96/232","page_number":96,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e6185d96-b893-4634-82ca-bd980986dce2","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":97,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"9346744a-225d-4a74-860b-da4edf1fd498","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mor tgages","page_number":97,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"bdca7fd9-014c-421a-81db-61c7b4a7b287","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mor tgage REITs. In addition, since REITs","page_number":97,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"f7e1cad8-6e7c-4c7d-8f8c-237d97c4045a","block_type":"box","text":"depend on payment under their mor tgage loans and leases to generate cash to make distributions to their","page_number":97,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"91b0a849-0b2c-486a-a6b6-0c1633113037","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mor tgage loans or leases.","page_number":97,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"a85eadde-eeeb-4cd9-9689-a5a7208bf6bd","block_type":"box","text":"Investing in cer tain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":97,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"233a13bd-d190-4a3e-8f3f-e9dfebfe42f6","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":97,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"38ca59c2-647c-4598-a700-a6f1e9ce88dc","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":97,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"765a7408-372c-4598-8a55-2ea80e792eb4","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":97,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"acf4c326-eecd-4fc9-a8e1-8575638def0d","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":97,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"7ee7dcf7-20b0-42e3-97ef-af0b35dc6f13","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":97,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"c79e2a73-4860-49eb-96a0-5d4ae0ccdc6a","block_type":"box","text":"activities competitive with the REIT. REITs may own proper ties through joint ventures or in other circumstances in","page_number":97,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"ca8012e4-fbba-4aa7-8a15-9a003b968257","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":97,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"e1daa12c-26d3-47ba-91a7-2ae35d1f0e64","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":97,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"5c7194c8-f972-4076-8bf4-8cf1e560c433","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":97,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"51590213-fc3f-4fda-a87d-35c11f4feec3","block_type":"box","text":"markets generally or par ticular industries represented in the markets. The value of a security may decline due to","page_number":97,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"4ef49369-a1ec-431e-b2c5-0147c7984ab2","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":97,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"2f2306d3-bbe7-43fc-aa4b-2c086d8c513f","block_type":"box","text":"affect a par ticular industry or industries, or factors that affect a par ticular issuer or issuers, exchange, country,","page_number":97,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"b3988cc6-ddc6-4786-bc2d-72d9f9c8134f","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":97,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"fb804e78-ba78-4587-b9b6-a99926f443a8","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncer tainty, changes in","page_number":97,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"6c755676-387a-4dc1-b6e8-42977f896278","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":97,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"ccb48ed1-70d7-453c-b10f-a6ddc6e1e5c0","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":97,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"068c9a81-d692-4b81-bacf-d00ef3c19166","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":97,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"7678903f-7b28-43a2-b2c4-a4dd47c97208","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":97,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"f8874a2c-8fb5-4236-a2e7-fb957072a3c7","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":97,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"b6dbc8bb-c9c6-4340-8009-14f69d316949","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":97,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"1cb82f26-911e-4d27-935b-92a0da979a21","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":97,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"d36535ad-8f55-4abc-ada9-b4d9ec3fd57a","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced oppor tunities to find suitable investments to","page_number":97,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"c7526a92-b767-4d6c-a228-c01ec34ff5ae","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is impor tant to","page_number":97,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"6063651d-dfad-40df-ac00-4646e73752fb","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":97,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"e8484ab4-be55-4e8f-bdc4-2824d073de17","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":97,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"fd460f87-3cc8-4599-bb5f-4da9282c44f3","block_type":"box","text":"conditions.","page_number":97,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"830fc577-f5af-4b7b-a807-715d75ef425f","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":97,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"29c8ff81-d92e-4670-861b-a60271c39857","block_type":"box","text":"a par ticular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":97,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"b3b50cfc-bf71-4c59-9c85-82b6b899d017","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":97,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"f6e0a8da-ab87-4506-9318-80f81c158681","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":97,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"96ac35c1-279b-403b-8cc2-34d6724cc46b","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":97,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"d5bb29df-ac83-4895-99c1-8be211ec5b7c","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":97,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"87defa15-edae-4009-aa2c-e0239a954a1d","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":97,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"234c00a2-4f3b-4817-9657-2787676cb5c8","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":97,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"900aaed2-d8b1-4240-a5b5-016e6895cb54","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":97,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"3fe4222c-aa5d-4a09-83d5-75a3bee816e8","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":97,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"8b86330e-f59e-454c-8449-9eb37fbab906","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":97,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"e19c1075-ad72-462a-b8fc-bc3d3bfe1247","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":97,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"4df1aae2-58d8-4bce-9413-20b58c28a4d6","block_type":"box","text":"affected by such events.","page_number":97,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"b9148350-a804-4371-a9d5-06edca3c91a7","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":97,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"a131af77-1634-4cfa-be3a-3f80c8e7a143","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":97,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"31bf7f20-8282-4eb3-8b65-a22a747f74f6","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":97,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"c2562cb8-471f-464f-8376-34b09abb05bf","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives under taken by the U.S. government","page_number":97,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"50f198c2-4a4a-45c9-9769-f3523207efee","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":97,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"bb4fec56-9965-42c9-be2e-8e1e8c4428ea","block_type":"box","text":"that could create uncer tainty and instability in domestic and global markets and could adversely affect the","page_number":97,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"76e1c094-fb1e-40b1-9039-1c37d2de4884","block_type":"box","text":"investment per formance of the Fund. In par ticular, actions taken by the U.S. government in respect of international","page_number":97,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"13091c17-45cc-41ed-a801-3c81c02c1133","block_type":"box","text":"trade relations could lead to trade wars, increased costs for impor ted goods, disruptions in supply chains, reduced","page_number":97,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"ec78b1fe-d95f-4c6c-9002-7a56739c770b","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":97,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"14545dba-1676-4347-a30c-dc1290123726","block_type":"box","text":"States, including a contentious domestic political environment, changes in political par ty control of one or more","page_number":97,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"d5aa0774-542e-4aee-97ed-2e6d38acbc4b","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":97,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"0cde7348-e2bb-434b-94ab-cae691b4c942","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":97,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"9d3ae1ae-4803-4baa-9f07-5cfd6bb55f11","block_type":"box","text":"II-67","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"41dea89c-b74e-44d6-b244-c37593434560","block_type":"box","text":"NM0926U-5977728-97/232","page_number":97,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"bdc2de44-959b-4920-ac4f-31d79f507b47","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":98,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"7228fb93-4531-460a-b92b-928ca044ed4c","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":98,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"ebfb4808-44a3-4540-90b6-7e0aa90018c5","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":98,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"d5beb003-985a-423f-b801-a932226ab7df","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":98,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"6d9a7e04-a546-4ef4-abda-3410a7eaf465","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":98,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"1419c6c5-8015-47e8-9756-81cbdae30fba","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":98,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"e36bc453-b608-4baf-8d7f-2fdb43f97e1e","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":98,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"eefa9142-b6bf-4947-8e72-82fa544325b8","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":98,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"e1c2f294-cda8-432e-a8fe-d426af76a2ae","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":98,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"18e2f068-5f99-4232-8686-76b0c33f7d0c","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":98,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"806028e3-8dc0-4251-ba8e-10e8dd99e875","block_type":"box","text":"investments.","page_number":98,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"21c27709-ccc7-491d-b41e-0b1d8024b77e","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":98,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"dfc4d017-bb3e-48fc-a03b-95ee60446cd7","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":98,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"fc0ad8b3-9581-4442-99b7-47d23aa438c4","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":98,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"d13c89f7-f8f2-4ebd-be9e-fcf44749a1e4","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":98,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"edd0e788-2877-4ece-9e65-80c594ba7e58","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be shor t term or long term, and","page_number":98,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"0e5deb95-2011-4854-a1fc-a82c9cf3095e","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":98,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"81771b76-b429-4216-8ecf-957032508cec","block_type":"box","text":"operations, and negatively impact per formance. In addition, the impact of infectious diseases in emerging developing","page_number":98,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"d4050132-e80b-4580-b5b9-0d473f2d7788","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":98,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"5ac5ec46-7295-42c8-b552-371c11358fbb","block_type":"box","text":"Legal and Regulatory Risks.","page_number":98,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"15dc5fca-3d26-4ab1-81af-d2076d171f18","block_type":"box","text":"The Manager is par t of a larger firm with multiple business lines active in multiple","page_number":98,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"8298e6fe-214d-43ca-b740-457dfeb52e60","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":98,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"23523a21-48b1-4d02-b384-272b6aa4e8c6","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":98,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"b3374c6f-2b4d-46fd-81cd-9b203d50895d","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":98,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"9e936c39-e7e3-4e4e-88ac-dbe2451e1f13","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":98,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"b125bd10-fd02-4a41-9885-f6a6244d4a76","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":98,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"8a3bffc4-ec68-4b2e-aaf4-ebcfe08e34a5","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":98,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"06a718d4-49f6-4184-887c-682e83c86ab9","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":98,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"a35b2fd8-98f0-4694-875f-e11988f4e89e","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":98,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"3e68d544-ffee-4fe2-909e-30423c690d1d","block_type":"box","text":"reducing investment oppor tunities or by otherwise restricting the Funds and/or the Manager).","page_number":98,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"ba1e3c5d-f2e2-4db7-9e2e-7e07268be3b9","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":98,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"80b99f1c-3bd0-47cf-be5c-6d6839556ae3","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":98,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"9d64141d-3b89-46d4-825b-68a7cd1c40e6","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":98,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"e4d2b0e5-1a87-48ba-886e-55954054bbbe","block_type":"box","text":"international trade relations, cer tain tax and immigration policies, and other aspects of the national and international","page_number":98,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"05a7a31f-0f21-4a53-bd6a-a295e7fc9709","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":98,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"eada9203-9c8f-4ee7-b867-f8a6c42485b7","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":98,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"48e2d0b4-abd9-4ee7-98f0-48094f3a8ba1","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":98,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"a26cb976-d6e0-4aa5-adff-8ca37f45f251","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":98,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"de51b8e7-52f7-4a8c-8f28-b11a9ff52c43","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":98,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"543d482d-4e56-4fd4-926e-7d4168349bfb","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial per formance of a","page_number":98,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"88093c2b-d5e2-492b-ba6e-69d31b94466a","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":98,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"11351576-18f6-4775-bcfc-721421196bdf","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":98,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"1c5883a9-1e20-4a8b-abd0-864ebe42093a","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":98,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"aa557318-bfd6-48b9-b7f7-3f208e48bf7a","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":98,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"98c6e68a-31fc-48a9-bf51-e0728bbe9cf8","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall per formance.","page_number":98,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"873d56f7-1d61-4d89-8814-88297dd4a599","block_type":"box","text":"Geographic Risks","page_number":98,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"12d444f3-44fe-4b40-b24b-fa1e4b860c31","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":98,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"ba1bda52-0d1c-4c80-b8bf-387cbdefd22c","block_type":"box","text":"to, par ts of the world affected by natural disasters such as severe heat, ear thquakes, tornadoes, volcanic eruptions,","page_number":98,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"ba4b467d-211b-47a6-88d1-f020dafcf125","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":98,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"f11e20c1-ff56-434e-83b9-35d46fc75d40","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":98,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"a19ec6c7-be1a-46cb-be61-80dcf4d665ff","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":98,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"8da35e98-ca6f-490a-a1ef-152b0630b83f","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":98,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"50641759-ec47-4ee1-a157-25c845981953","block_type":"box","text":"Fund.","page_number":98,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"35efaab5-0e42-42db-9153-8a62b0f82063","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":98,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"a5a36275-1650-40f9-a41d-c6fe3c2e0bed","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":98,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"90602d6a-dbf0-4304-860e-7e57bfa081db","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":98,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"c05ea3bf-4748-43bf-a6b2-dbb1ef8ca592","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":98,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"940db9c0-fc0c-4e08-9719-82a2134b5af4","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":98,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"ca67a534-aca5-4bbf-9fa7-dea51b53e051","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and cer tain derivative instruments)","page_number":98,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"f231a1cf-26b7-41d5-97d4-43ecc95a47bd","block_type":"box","text":"II-68","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f7720c77-3707-43b3-a548-a218bc8e3dca","block_type":"box","text":"NM0926U-5977728-98/232","page_number":98,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e9aa6f52-0a81-4338-b29d-cfd24d382be9","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":99,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"cbbcde6f-0a4f-4517-86f8-5f9bfea228e7","block_type":"box","text":"imposed by a regulator or by counterpar ties or otherwise may adversely affect a Fund’s per formance and/or net","page_number":99,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"3abeffcf-da66-4af4-8136-0dd8a036bb87","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":99,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"6b438c95-1ecb-40b7-88ef-c8b976e0bfec","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":99,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"c45f1cc1-d1cc-481f-8608-05013a3de00a","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mor tgage-related securities, interest rate swaps and other","page_number":99,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"4aca19b5-ca5c-4764-91ab-88540a9791f8","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":99,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"5a994ab8-7a5c-473f-8477-ca0f806a90cf","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":99,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"a46494ef-015c-42f7-9a57-5a9ee92147ba","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":99,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"9e08b4cd-ad06-409b-9a0b-a9188407173a","block_type":"box","text":"transition away from LIBOR led by regulators and market par ticipants as a result of benchmark reforms, LIBOR was","page_number":99,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"98740961-c244-4b91-813a-b88959571459","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":99,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"ca2edf1e-990d-44d6-8bcc-c210b052ea46","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":99,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"1fedb4be-275d-47c6-9c39-f2793a02df8d","block_type":"box","text":"e.g.","page_number":99,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"a8455c57-0251-4236-b8c7-c49c7fc8129c","block_type":"box","text":", SOFR for","page_number":99,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"08c01041-315e-4712-a7e9-fd5fb962254a","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":99,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"df27882c-f0a3-45c2-a69b-8ce114376054","block_type":"box","text":"associated with the transition may remain that may impact markets or par ticular investments and, as such, the full","page_number":99,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"40b2cd93-638c-4bc4-91af-ea49d36fbb97","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":99,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"8cd0d98d-1177-473e-b2fd-86e8e66aa210","block_type":"box","text":"determined.","page_number":99,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"c209a3b1-3a22-4e0d-8478-a35b24feb271","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":99,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"33da5163-01a3-460f-935c-4e17725b10e0","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":99,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"deb457c9-a8c7-4d92-b27b-06d97dd58a83","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":99,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"70eb08f2-de48-454d-b577-d2519da871a2","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":99,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"1273768a-eea1-41ba-8aa5-792a079fc6b6","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different shor t-term","page_number":99,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"a1fe1186-66ea-4d0c-8610-1463ffdb7fd5","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":99,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"cd338621-9ad3-44af-aad1-7008978655f8","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in cer tain respects, to bank credit risk and to term interest rate risk.","page_number":99,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"222be621-085d-4627-add6-403f81bd270c","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":99,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"28c4cc22-5d85-4a01-a838-a787bddde305","block_type":"box","text":"largely insensitive to credit-risk considerations and to shor t-term interest rate risks. SOFR is a transaction-based rate,","page_number":99,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"aab4df2a-71bc-4533-be1e-f1bde57832d7","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during cer tain","page_number":99,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"6cdbb0cd-72da-4831-9f10-404efde520b7","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will per form","page_number":99,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"887dd44a-e583-42b4-8e55-53382049e070","block_type":"box","text":"in the same or similar way as LIBOR would have per formed at any time, and there is no assurance that SOFR-based","page_number":99,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"1b314efa-e252-494f-a2aa-e0dea2660627","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":99,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"b40de515-9f23-492b-bf90-be3c69adc4b1","block_type":"box","text":"2018. The future per formance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":99,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"559c55f3-3903-49ea-8ba1-07dcfa54a73b","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":99,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"6b9f34bc-5b8e-486a-8a00-d6678f53462d","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":99,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"b6b7e7d0-0749-44ce-a729-949bf9377c8f","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":99,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"668900fb-aaac-4c94-8d20-b3e2755cc7aa","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":99,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"f3075767-1815-4735-8472-99e1ca705454","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":99,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"b2b3cc55-d22e-4307-b054-92b14eaae129","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":99,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"c9265dc5-1580-47bc-a612-8bc7a0e03ab2","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by vir tue","page_number":99,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"81ba0ed7-6f6c-4017-bdd3-cf46725d64bf","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":99,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"99cce838-4a22-43c0-ae20-3106f8f01531","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":99,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"d6f28dc9-d57b-41c2-8283-22ea09e7b0ce","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may fur ther change","page_number":99,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"e560e1de-cba1-49b5-a785-b0b74ca0a796","block_type":"box","text":"in the future, with the result that relevant benchmarks may per form differently than in the past, the use of","page_number":99,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"667f9f76-c137-4542-88d0-9e07eb05b919","block_type":"box","text":"benchmarks that are not compliant with the new standards by cer tain supervised entities may be restricted, and","page_number":99,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"2a80ae9a-a5f9-40a9-870f-23013239edc4","block_type":"box","text":"cer tain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":99,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"a7007723-a323-4b60-a055-9ea94ff0edbe","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":99,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"b8325037-4886-4aeb-bc09-8b8c02f2a31b","block_type":"box","text":"consequences which cannot be predicted.","page_number":99,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"3f94297e-776e-4875-95b8-f08cade2a63b","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":99,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"b8159981-f0ea-42a3-97b5-f00df98b6f41","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":99,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"676f1ec3-6489-41fe-ac6e-fb9360f12a45","block_type":"box","text":"sale contracts, the other par ty agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":99,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"5d002923-03c0-4585-a927-7edd6526a1d9","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":99,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"5f23a8d0-278b-4fa0-842f-ad9778b090f8","block_type":"box","text":"term of the agreement.","page_number":99,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"7b68efa8-5cef-4500-b034-b257212619be","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":99,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"a85d0b88-baf2-42db-97fb-cceaa65440c8","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":99,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"b50242a2-6f4e-4940-af50-a1ba2e0896f2","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":99,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"3ee52e7e-c713-4686-99ba-21a2f8edb03f","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":99,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"e9ed6b7d-edd7-4d56-a5d8-7c481a3c443b","block_type":"box","text":"accrued interest. A Fund may enter into “tri-par ty” repurchase agreements. In “tri-par ty” repurchase agreements, an","page_number":99,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"e116c464-e1f8-464e-8fff-7a367d396d7b","block_type":"box","text":"unaffiliated third-par ty custodian maintains accounts to hold collateral for the Fund and its counterpar ties and,","page_number":99,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"1e605eb6-f6f4-4127-995f-6b1fe0307f51","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":99,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"54156355-c23c-4bc1-863d-ac9180551c1f","block_type":"box","text":"II-69","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"877df0d4-9791-487f-9eff-b95128e19f1c","block_type":"box","text":"NM0926U-5977728-99/232","page_number":99,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a1517b5f-0b80-4624-92ca-c55e3c3799be","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":100,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"4e164ae6-80c0-4995-acf5-861529f04f8c","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":100,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"e06eb29f-5111-4e81-9b01-7cf170912a40","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":100,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"7fdaa5cd-a14e-46e1-af50-45d897829c39","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":100,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"9506f5a3-3b7d-4849-97de-1a60f7f519ac","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":100,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"e6b17eb0-042f-4c67-aabd-0a93e30ae9f5","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":100,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"8ef235d3-dbf9-46a4-8fe6-f3288516933c","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":100,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"309b8113-0a52-45f2-9cf8-c8f579aafdc6","block_type":"box","text":"Both types of agreement usually cover shor t periods, such as less than one week, although they may have","page_number":100,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"40d834c6-a16c-45d9-939d-61b6a995dea0","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":100,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"e78c2fe7-c1c4-4ebb-86d3-53f74888166d","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":100,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"fa959bf1-7279-4708-b989-1a23b6fbb49d","block_type":"box","text":"sub-adviser will monitor the creditwor thiness of the seller, and a Fund will require the seller to provide additional","page_number":100,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"800f3767-d4ab-48ef-a276-6756b8242553","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":100,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"01bba01a-70b1-49d1-8c92-dd438aa5c08a","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":100,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"ebd8e0ba-5754-4e80-b180-235a565db233","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":100,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"37c0b55c-0aa3-4d68-b8a2-1ecd65e1acbe","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-par ty repurchase agreements) and purchase and sale","page_number":100,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"e8844cee-a54a-4856-bc04-93b5595a5090","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":100,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"16012163-a56e-4bc4-9ddf-f74d63b8ff0e","block_type":"box","text":"or by another authorized securities depository.","page_number":100,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"b5c9c9a4-6c30-4698-82b0-5eb2963a7aa6","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":100,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"898201a8-6025-4512-a6ab-18149e5e57e2","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":100,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"872f2f3a-6044-4d62-937e-cd0e6b155585","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":100,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"6206a4df-fbef-4bb7-864a-4fc29543dd20","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":100,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"ceaab902-ab4f-434e-878d-3597fcc2744a","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":100,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"997e430d-fefb-46d9-86ec-eb64442612b8","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":100,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"8a1d01b7-c25e-4ab2-b2ca-d091e1c3c21f","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":100,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"54b8034b-166d-4983-88e7-244c286ba9bc","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":100,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"2d2260dd-75d5-4910-9c3a-97e655a2a2f6","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":100,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"29d26437-08f7-4706-9c9d-10bf7ed3eee4","block_type":"box","text":"the repurchase price.","page_number":100,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"08e859dd-140e-4522-8836-4ebcbc90e6fd","block_type":"box","text":"In any repurchase transaction to which a Fund is a par ty, collateral for a repurchase agreement may include cash","page_number":100,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"1a809670-8d99-4da7-b803-998e5ba38b86","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For cer tain Funds, however,","page_number":100,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"7ea9f946-c825-4148-94d9-2eb4d482526a","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":100,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"6016fe93-4ef7-4af9-94b9-1934d584881f","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":100,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"66062347-e224-4daa-b03c-a7e66db2dae1","block_type":"box","text":"strategies without the repurchase obligation.","page_number":100,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"60221e3f-f4ad-437a-8c47-6b0b9d933e6e","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose cer tain risks for a Fund. Lower quality","page_number":100,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"0a1b237d-b538-4879-bd24-f858358688b9","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":100,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"18645a2b-ddbc-4838-898a-8a3bde81749f","block_type":"box","text":"collateral and collateral with shor ter maturities. If the repurchase agreement counterpar ty were to default, lower","page_number":100,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"7e9c7bee-ebf4-48f7-9273-6bdacf17a93e","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterpar ty default and","page_number":100,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"6a60e694-5a05-48e1-871a-d71ea2c2079d","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterpar ty’s repurchase obligation, a Fund would retain the","page_number":100,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"0572646c-62c2-417d-8d2a-a883305ba016","block_type":"box","text":"status of an unsecured creditor of the counterpar ty (","page_number":100,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"ed7dcf9d-6b92-438b-b4bf-05f82e76f672","block_type":"box","text":"i.e.","page_number":100,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"0a2d2da2-50c4-4ae8-a5c2-a67d266e73a8","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":100,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"4bf02fd2-554a-40fa-ae61-38d691c00c85","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterpar ty) with respect to","page_number":100,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"158db927-132b-4586-9d35-b16ca2906ffb","block_type":"box","text":"the amount of the shor tfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":100,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"3211ac21-5f72-4420-9d63-5ed1dfa04689","block_type":"box","text":"and income involved in the transaction.","page_number":100,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"6269ec3c-625b-461b-b46a-1406ecce80c4","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":100,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"c8608674-a5eb-474e-acb2-b89cfdc077e1","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many repurchase agreements and purchase and sale","page_number":100,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"f364f377-744d-4200-be27-0d539f41aeb0","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements,","page_number":100,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"2ffa0a7b-0ae3-4b48-80b9-5ef7f051d291","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":100,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"502b91c7-0973-4dea-851a-b855823e8f4c","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":100,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"541f5182-0b34-4f1c-97d2-38cc65e5b1b6","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":100,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"b2ecfa7f-0f90-4c6b-a23d-532601f88a4d","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":100,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"8b477167-a2f1-4caa-9159-21bb540c7239","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":100,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"9bca16a7-2a22-4476-b9f9-43cd70eea39c","block_type":"box","text":"require cer tain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":100,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"36025cc0-3c2b-40ef-b45a-6f79227d9d79","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":100,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"d2701c28-d03b-49a8-9800-e0aea4828a42","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":100,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"826cb3cb-1fd4-46de-9717-05d95938fde0","block_type":"box","text":"adversely affect a Fund’s per formance.","page_number":100,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"b3462b5b-a093-4d78-beca-f9d1bace9154","block_type":"box","text":"Restricted Securities.","page_number":100,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"09c1c27e-565b-4846-895a-9fd0d019ea38","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":100,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"934b2a1b-4d6a-40d0-b8a8-0318856fc76e","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":100,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"368e7b37-830e-42bb-a147-b23d936239d3","block_type":"box","text":"II-70","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"34dbfddd-cfd3-4a1e-a7b8-fefbd7df20e4","block_type":"box","text":"NM0926U-5977728-100/232","page_number":100,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4cf47df4-0b06-448e-a0c5-12592d859e38","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":101,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"25ccd65f-5ea5-4b69-bf42-281c6311a51c","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":101,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"186ad21e-86f3-42a4-803f-137f725bd9cc","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":101,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"df0f428c-2c45-4d48-bfbc-9994bd7760a3","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":101,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"c0c0f953-4300-49bf-8974-1a57e4a6cfb6","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":101,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"1859b2f3-0cbf-480a-9797-62e79f9a8d21","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":101,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"5e640e6e-ccd0-4413-ade9-79c5ac11a50e","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":101,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"328fd236-98b3-40f2-896e-45f9fc0a1ff3","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":101,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"607cde56-585c-488f-8564-2dcd3ee1555e","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":101,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"9e61841c-2716-48d2-aea0-765e5b247deb","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on cer tain transactions,","page_number":101,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"3b417597-7d6e-4d94-8e26-0ec695f16659","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":101,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"9b4fce9a-fc4c-42d8-b9e6-7de2a94c385a","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":101,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"18a5d115-4c6a-422d-8f7a-e0aa07f85940","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":101,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"0676a8ca-c052-4391-ae37-a86975c8c54b","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":101,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"3475aaae-c6b9-4bc2-8840-7ccef5cdd3a6","block_type":"box","text":"character of the issuer, which par ty (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":101,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"83e27fd1-b9e6-45e5-9bfb-00c8f690ad03","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":101,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"87047822-4c98-47d9-a1b2-e6af857439f9","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":101,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"98633fdf-c9e6-4bcd-b1be-7c4e6fd6d991","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":101,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"336adedb-fccc-41a0-b7d4-73c3569c3226","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":101,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"81979c6b-2948-411c-ab14-1ee9e3a83a74","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":101,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"341283c9-70a3-43e8-973c-255ee2242744","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":101,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"2ddf4aee-b493-4b6a-992d-12bc2da1c9b9","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":101,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"54882897-7bb9-48a7-887f-28009b1d182b","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":101,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"1b5d7b05-56d4-49cb-b2f5-b50b28459b80","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":101,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"756b7896-757d-4fc8-911f-4e221f557ca0","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":101,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"09a895fe-2d6f-494f-b373-76a85bb66e59","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":101,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"3df71d30-fe17-4912-b380-d9321b62924d","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Cer tain of the Fund’s investments in","page_number":101,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"5678e4bf-c4ee-43dd-a6ba-97b6bf12c499","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":101,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"6b34c3e3-e853-4712-a39b-762ece77cd69","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC repor ting","page_number":101,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"42a1ad41-69db-4a7c-96f1-537d38fc1d93","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":101,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"14ca55e2-5381-409b-b6bf-a500ba0591c4","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial repor ting. As a","page_number":101,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"dc4cc3c8-ed22-4d91-a411-84905675d4a7","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":101,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"292f0e08-6e5a-4366-8247-25e5b748c509","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":101,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"3130f832-68fe-4d39-b3aa-8459b4277eea","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":101,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"42ec7c9e-cf42-4bde-a658-d5a836353e8e","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":101,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"f911ed58-2e08-4b47-8ef3-ceac9ddd2506","block_type":"box","text":"Cer tain restricted securities may represent limited investment oppor tunities and each shareholder’s","page_number":101,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"d3c5d48e-8329-4637-9ac8-582edba6f7cb","block_type":"box","text":"propor tionate investment exposure to such limited investment oppor tunities may be reduced propor tionately as the","page_number":101,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"ebd24810-13b8-4203-b931-2a1be84fe086","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":101,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"0199c0a1-6298-4c2a-acfa-e87804f1843f","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":101,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"3f0573e2-924a-4fe0-8a27-6b9bb0024854","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":101,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"5f14d88a-60e3-46f4-a0b2-acbbc1a48fd2","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":101,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"da2fa54f-ff2d-47ab-a27a-d8ac4766b198","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":101,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"978f711c-5244-4d6b-82cc-e519c34fb889","block_type":"box","text":"offer other liquidity oppor tunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":101,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"626b6363-03d5-41a0-86e4-9d42b39940b5","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":101,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"0cc1da54-bae8-440c-9f75-61413e087a55","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":101,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"4409ed76-2494-44b8-b6c6-2eac1c6b1876","block_type":"box","text":"conduct por tfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":101,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"67c03b0a-0897-4bd0-80b6-fa57dd427e51","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncer tainty. A Fund will be","page_number":101,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"f88382cc-5baa-4292-b866-555ce042eac7","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":101,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"1fee3761-9e2a-4a6e-88a6-ff662ac9308b","block_type":"box","text":"investment oppor tunities may increase, thus potentially reducing the number of investment oppor tunities available to","page_number":101,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"6938c992-6df3-4813-9d0d-4258d7571b65","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":101,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"e47a6b8c-3214-4b9b-a835-2c3d287fecda","block_type":"box","text":"investment oppor tunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":101,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"aba8f34c-3e34-49cf-85d9-171fceb44f76","block_type":"box","text":"especially as that Fund grows in size.","page_number":101,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"44da98f1-07cf-4d67-9a0b-de0704878823","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in par ticular, restricted","page_number":101,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"e963ea44-9c9e-4924-8ec3-778938045af5","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":101,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"38ff7ec6-3902-49bb-a4c8-7d04610175fd","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":101,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"ccb8ef48-ecf2-4946-8f80-5284a287caef","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncer tainty and subjectivity of","page_number":101,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"3baad5f1-81f4-4981-b04e-b2f7cd21b82b","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":101,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"6b21a4e8-40e3-45f0-a16e-a2b4c72e9433","block_type":"box","text":"II-71","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3eb7895b-da10-436e-b9b6-19977b74c60b","block_type":"box","text":"NM0926U-5977728-101/232","page_number":101,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"306a17af-2e05-4c0c-a7c7-c0ff592d1588","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":102,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"826795c2-da8c-4ab1-9e98-5911d3f228d2","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":102,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"daf13c13-3ac1-4281-a700-5a7ccf9db624","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":102,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"1751d98f-2048-4f4b-b9fd-a6753552d7b6","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":102,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"6b5fac00-e884-42fd-9ef9-256e9338d720","block_type":"box","text":"Fund’s por tfolio, potentially resulting in the dilution of shareholder interests and increasing oppor tunities for","page_number":102,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"fdb7f85b-84a8-47b6-8033-23f4cfe1ee2c","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":102,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"20489b25-d2ff-4664-bfcb-04b6ded7fe23","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":102,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"4b1d8423-e5ac-4ad9-8521-ee0cdf769954","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":102,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"a271cab5-85d8-4faa-b5db-98ebdc6d572f","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":102,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"7c0b9b6b-e851-45bc-834e-eeeb5a108e1f","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":102,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"05214de7-c4b6-4147-985f-efc87ee948fd","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":102,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"73ee522b-1039-4072-8ed6-d4b3e51acea2","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":102,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"bbc281ef-7361-446f-81ed-eeb228a3e3f0","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":102,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"94469c65-a74c-4c46-a23f-9200cd537473","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":102,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"a556036b-bc60-4d9d-a0b4-ba2af94e9a75","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same par ties","page_number":102,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"292cd7ba-22bf-4d0f-b7cc-12946a207e35","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":102,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"3be28167-3d87-4761-9e1b-b482c2cfbae3","block_type":"box","text":"to another par ty and agrees to repurchase them at a par ticular date and price. A Fund may enter into a reverse","page_number":102,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"6813444d-e749-4b4b-aa87-55cc781c0c27","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":102,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"518d4d07-6595-46f1-82c8-30a29e651316","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":102,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"fc10c62a-3c28-477e-94cb-062593f73cf4","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":102,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"0d0acec0-763b-45e5-9753-ecf7a1fe525e","block_type":"box","text":"Fur thermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":102,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"32b4adb2-3b65-4674-906c-955c47f870dc","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":102,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"99b9b5b2-a655-4f66-94d1-ae448ffa55bb","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":102,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"aef86be1-1464-4175-8131-0deb56d83a44","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":102,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"b58b356c-8395-46df-979e-fc6c881caf7f","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":102,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"9f6d4c85-2672-4068-866b-f085aba0fc5a","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":102,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"d70416c1-b94b-4964-ad39-228d53e53ed7","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":102,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"9015f3ca-185b-43a8-a0b1-852592db96be","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":102,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"e66095c1-d4eb-4563-b3a0-466c7ecd1c12","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":102,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"32790344-a8b5-43a5-b8e4-a4a62e1b2cc1","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":102,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"02c7d363-a76d-4d47-b8c0-01b575f3b8a6","block_type":"box","text":"similar financing transactions (","page_number":102,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"648b92ca-df29-4189-a13c-24068487bc37","block_type":"box","text":"e.g.","page_number":102,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"7db6ab1f-493c-4caa-9002-f8c13db63aea","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":102,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"eff036a7-4182-4cb8-9af8-83544f463bff","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":102,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"5ebc9e59-e4e0-40ac-a50f-a356f5da075c","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":102,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"d0aa16c9-acdf-4e6d-8cff-4009c6ca5f92","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":102,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"76292644-c088-43af-94a4-f2aa36d10473","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":102,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"42633a7a-1cfa-4530-8526-9db27519f284","block_type":"box","text":"finalized rules that will require cer tain transactions involving U.S. Treasuries, including reverse repurchase","page_number":102,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"04a2858e-6781-43ab-8325-c477367d35a9","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":102,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"7bc2d2a6-e451-4f23-9bcb-dc1c38c7f779","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":102,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"e4fd0fc0-c15f-479d-8427-24a29f09df55","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s per formance.","page_number":102,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"6f59d31d-3c3d-4f44-be09-71290f3eb2c1","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties","page_number":102,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"90562324-4520-404c-9031-f94947a71d74","block_type":"box","text":"and cer tain of their affiliates to include in cer tain financial contracts, including many reverse repurchase agreements,","page_number":102,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"95d5d07a-f7e0-46f0-935d-5ba3d026db4d","block_type":"box","text":"terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements, take","page_number":102,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"cbc68718-6d65-4459-815a-0d9632516654","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":102,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"6055623a-52e4-4ffa-a4b5-0b06b4782c57","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":102,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"0b161308-a119-45f9-aca8-a18763a89da0","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":102,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"67c2887b-1518-4627-8b7e-bc3c14187cdc","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":102,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"57d5b44a-6340-41dc-b4a3-15d906ef2f81","block_type":"box","text":"amounts to be received under such agreements.","page_number":102,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"de29131b-f0ef-48d7-87ab-e09f9f31c11d","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":102,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"ab19c47e-0526-4f87-b714-0b46ce392b43","block_type":"box","text":"Cer tain Funds may par ticipate in rights offerings and may purchase","page_number":102,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"7afde48e-23c3-4197-a0a3-17d2627a6d20","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":102,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"f477ee76-5ff5-4c82-bd0d-231c141d6f5c","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":102,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"4311af30-d0dd-46b5-839d-5922a27bc3d2","block_type":"box","text":"normally have a shor t life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":102,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"2f053893-3815-4bd0-a1cf-54fd6d50fb8a","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":102,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"ca4d7329-332c-4ae1-b64d-459e5bc8d284","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":102,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"1d04f258-be7d-46fd-b83e-3a74b4f21e95","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":102,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"e70be08a-4caa-447a-b2e5-bd8aa9695eb4","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":102,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"01ff2a9f-0bab-4da5-8b50-ed1b1ca6c1ce","block_type":"box","text":"II-72","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"907b32ce-b6c6-40a2-a340-ce06a9b1c343","block_type":"box","text":"NM0926U-5977728-102/232","page_number":102,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"35d2b0f6-4f09-43ba-944b-29730dcdc694","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":103,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"6270ef1b-e36c-4e31-8679-9544767db84e","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":103,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"b2428f1e-0409-4faa-a338-9444815931a2","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":103,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"627c6d0d-0466-4da5-ac84-783db90b1446","block_type":"box","text":"Rule 144A Securities.","page_number":103,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"1118e259-01cf-4c1f-a3bd-74f20b8ea2fb","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":103,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"e0a6f8dc-1524-48e5-81cb-1f369a49431e","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":103,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"77a135d3-22b5-4287-aa31-3cf26184157d","block_type":"box","text":"Securities Lending.","page_number":103,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"99bc972c-80c7-43ea-b5d0-950428278fec","block_type":"box","text":"Each Fund may lend por tfolio securities to cer tain borrowers that BlackRock determines to","page_number":103,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"6065c8d8-ff8d-47e4-988b-8fd7e7ef8fb8","block_type":"box","text":"be creditwor thy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":103,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"c10a5292-4a7c-4bad-9d68-6c89a39a76d1","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":103,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"23201beb-02e7-4891-ae99-db9b401d1103","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the par ticular Fund exceeds one-third of","page_number":103,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"fbb698a0-a57c-4fc7-9de5-e4af064c2542","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":103,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"9059c9f8-a51d-4750-a2a9-7258c3cfa3db","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":103,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"91e10df5-ce47-4dbd-8e5a-0db0682ea9f8","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":103,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"628a770d-3d2e-4261-9790-d18329abfb38","block_type":"box","text":"the securities were not on loan.","page_number":103,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"1cc47c47-b545-4687-bf08-7a253137470c","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":103,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"917f1d1b-8342-47c4-9b33-a3317ea2d01b","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":103,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"5bdd2939-067b-4f10-96dc-b96cdecdb796","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":103,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"08bf2175-a7b1-457f-bd3d-d9704ee27a1b","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":103,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"b354642c-ef5e-4f50-99d2-75f6f766240f","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in cer tain shor t-term","page_number":103,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"f33895fd-3e47-4ab3-a1f3-e1ba01ed1639","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":103,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"1e1285ff-9508-405c-8643-6885909e298e","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":103,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"cbab500a-51b8-4279-87e4-f8bdc2883fd8","block_type":"box","text":"Securities lending involves exposure to cer tain risks, including operational risk (","page_number":103,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"9229ca5f-1ca2-45e1-91cf-dcc3711e5283","block_type":"box","text":"i.e.","page_number":103,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"0c1e47e9-5b27-4bee-b1d6-cbd85e9c693f","block_type":"box","text":", the risk of losses resulting","page_number":103,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"bc9cf99c-158c-4954-b9eb-d6c9ab82be4f","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":103,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"cdcf04d6-d25f-4e24-bcb5-cb0a81e16a0c","block_type":"box","text":"i.e.","page_number":103,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"757ab9eb-0c3f-4e31-8fd5-17a12240073d","block_type":"box","text":", the risk of a mismatch between the return","page_number":103,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"961ad75c-da8e-41df-b4a6-a48589e765ad","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":103,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"31dcb352-4b1b-4732-9ab6-689593e7dfe7","block_type":"box","text":"i.e.","page_number":103,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"4bfd11ce-6862-4af4-b6a8-d6d9e22c69f7","block_type":"box","text":",","page_number":103,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"46a97e21-d4db-48b3-82e7-4f0965044058","block_type":"box","text":"the risk of a shor tfall at default when a cash collateral investment is denominated in a currency other than the","page_number":103,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"ca9a3959-e3f1-4f45-92fd-bc2b46edce6e","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterpar ty and","page_number":103,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"05e49f02-89fe-4273-bb5d-2202226f0d1f","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":103,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"90b0dc29-8009-45e7-a53c-73d737895946","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":103,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"32523360-b3d3-40ab-88df-0a81da81b3c4","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":103,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"d2433f39-3b67-459c-9a47-6cdc30550019","block_type":"box","text":"are subject to a corporate action and commit to the borrower a par ticular election as determined by the Fund’s","page_number":103,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"7f13f4e9-adc3-4f0f-b28c-ddd8638f2370","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":103,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"07410622-71b9-4f8f-8324-484d34c292eb","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":103,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"4f79eb00-9a12-4d89-a9b0-89a815664b5d","block_type":"box","text":"securities lending counterpar ty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":103,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"df182a20-e18c-44e9-bf3a-034e5a3efd79","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":103,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"e166576c-3a9e-4874-8222-5f324dd0fe33","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to par ticipate in a corporate action event","page_number":103,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"7e86648a-6dcd-4f9a-8719-2ca612f08fff","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":103,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"a94d6891-72b6-4bcc-8b50-702ca5712dba","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":103,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"54baa254-2993-4177-a633-7b1f1c0c4547","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":103,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"d23e1483-1305-4b7f-8c9f-1aed260a1226","block_type":"box","text":"could lose money if its shor t-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":103,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"1f9eff15-8ce5-499c-b085-ff8964c000d0","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":103,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"b274b4fc-3dd0-4d09-8887-832bcc52886c","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":103,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"13b577ce-d2a1-4b24-a55d-892a9e5b5456","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":103,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"f49f2be9-fc7a-4703-a438-dccd080d676a","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":103,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"c44935db-7bad-42e8-b1aa-d6850fe32124","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":103,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"5b9ac7b5-c7a5-4c6d-9323-20bd03c867d9","block_type":"box","text":"paid to non-corporate shareholders provided cer tain other requirements are satisfied. The securities lending agent","page_number":103,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"1676630e-d188-44ea-839c-9f32011c99ff","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":103,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"e06b48f7-1208-400b-bbca-d584de4df2dc","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":103,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"47159118-93f8-4e1d-807f-ca1973faaac4","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":103,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"c39aae29-c872-42a0-8544-e0fe52199d50","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":103,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"e817000b-f936-49c8-8aad-5284c59199d4","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":103,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"9e15ab9e-fdd3-4c6b-94ac-01ba2f577251","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":103,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"c913f818-8014-4225-88a8-171310986118","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many securities lending agreements, terms that","page_number":103,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"bc8f7ea0-bccb-491b-af1f-ca9cfb9863ef","block_type":"box","text":"delay or restrict the rights of counterpar ties, such as the Fund, to terminate such agreements, foreclose upon","page_number":103,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"7d674002-2bf4-4f16-90d3-e33730a00bd5","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit suppor t in the event that the counterpar ty and/or","page_number":103,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"0fa865ac-5885-43f0-a012-5f7acbe68571","block_type":"box","text":"its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible that these","page_number":103,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"41887fb7-3f04-4d7c-b90d-acbede54ac2d","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":103,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"30bbe001-73f3-49a5-a89e-11752e60aeee","block_type":"box","text":"II-73","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"40f2cc75-d6a4-4e61-ace3-acbb2ab7b166","block_type":"box","text":"NM0926U-5977728-103/232","page_number":103,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9688d922-814f-4d23-8325-02dd32885e8b","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":104,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"fc6c87b9-6bff-43aa-9349-01c7acc8bb2c","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":104,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"794a7ee4-2d62-4ebd-aa97-eda65138024d","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Cer tain Funds expect to provide","page_number":104,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"0e90e491-fa7e-4ed2-bd4a-9233a0754c25","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":104,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"b6f14665-8848-45b1-bc7a-a2ae9f2a4422","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":104,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"c2be02b9-a7ac-4401-a27d-7e8bbddc7bef","block_type":"box","text":"The SEC has adopted a rule that will require repor ting and public disclosure of securities loan transaction","page_number":104,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"81ce408a-b9d5-438d-82f0-8a0ecaabfc90","block_type":"box","text":"information (not including par ty names); this may include, but is not limited to, information about securities loans","page_number":104,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"00910763-7703-4614-93a4-46f27d93b3e7","block_type":"box","text":"entered into in connection with shor t sales. Compliance with this rule is expected to be required in late 2028,","page_number":104,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"231be875-81d9-4867-8b72-d8761924e289","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":104,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"35c7c7ac-d4fb-4450-b02a-5872725c7c11","block_type":"box","text":"the current expected compliance date.","page_number":104,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"92b9d792-a9cd-40fd-a059-cfc6af2f2c8d","block_type":"box","text":"Short Sales.","page_number":104,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"20daebaa-7b7d-435d-80be-deb7c12f38f6","block_type":"box","text":"Cer tain Funds may make shor t sales of securities, either as a hedge against potential declines in","page_number":104,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"063185c3-10a2-4974-85f1-98a6bf3b76af","block_type":"box","text":"value of a por tfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":104,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"6ea75085-d816-4f51-a808-44a8283d7633","block_type":"box","text":"Cer tain Funds have a fundamental investment restriction prohibiting shor t sales of securities unless they are","page_number":104,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"c5602b20-ede4-49e2-8d21-0f0982bf2467","block_type":"box","text":"“against-the-box.” In a shor t sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":104,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"4d173761-b8c4-4e08-82c7-2a5f25fecc0d","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a shor t sale, it borrows","page_number":104,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"9153b049-991d-4d1d-922e-d3dfa87765b2","block_type":"box","text":"the security sold shor t and delivers it to the broker-dealer through which it made the shor t sale. A Fund may have to","page_number":104,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"06f3ba22-4346-4587-a18e-2f3813413acf","block_type":"box","text":"pay a fee to borrow par ticular securities and is often obligated to turn over any payments received on such borrowed","page_number":104,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"093092c9-1397-45b9-93be-25362d4fedf4","block_type":"box","text":"securities to the lender of the securities.","page_number":104,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"14b1e479-8686-477b-b8d6-bae32d59979e","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":104,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"665b8851-5a6d-47cc-aab5-7f1aa3665ad6","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":104,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"9934bfab-f5dc-4dd8-a176-44e3f3bc1b84","block_type":"box","text":"uncovered shor t positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":104,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"eab1da46-d50c-480f-84bd-f62c7c6eabee","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":104,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"04d78155-403c-4d28-a322-80b404bc2c9e","block_type":"box","text":"market value of the security sold shor t. Depending on arrangements made with the broker-dealer from which the Fund","page_number":104,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"a15381f3-c687-4195-84cb-dfe51e9dcfdc","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":104,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"87d0b250-9595-4a8c-b015-6c798ef4abab","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":104,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"7b946029-7b7c-4603-b095-ba8b4622e909","block_type":"box","text":"Because making shor t sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":104,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"382cb2d7-ef8f-4573-9890-3e07604cac35","block_type":"box","text":"securities, such shor t sales involve speculative exposure risk. A Fund will incur a loss as a result of a shor t sale if","page_number":104,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"ba92925d-ec57-41e4-95ce-a48cd920de1c","block_type":"box","text":"the price of the security increases between the date of the shor t sale and the date on which the Fund replaces the","page_number":104,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"99bdc912-3131-4588-b332-afa4f56c39e0","block_type":"box","text":"borrowed security. As a result, if a Fund makes shor t sales in securities that increase in value, it will likely","page_number":104,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"cf309f8e-ffe1-4af5-a66d-176ca67efc6b","block_type":"box","text":"underper form similar mutual funds that do not make shor t sales in securities. A Fund will realize a gain on a shor t","page_number":104,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"29723b64-73da-42b5-a7f2-4b55a51f47ef","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":104,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"953c14b1-32bd-4c16-b6a7-777fb9709787","block_type":"box","text":"close out a shor t sale position at any par ticular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":104,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"1d0227a1-3999-4a5b-be79-7509776a89a2","block_type":"box","text":"the price at which it sold the security shor t, its potential loss is limited only by the maximum attainable price of the","page_number":104,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"593342bd-9988-49dc-8acf-8a20afbf3bd5","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":104,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"b2ea7743-ed62-4405-a353-3c7923742f7e","block_type":"box","text":"A Fund may also make shor t sales “against the box” without being subject to such limitations.","page_number":104,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"20b30845-a946-4550-ae86-294e7ca88236","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its shor t sale","page_number":104,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"4c337a6e-dd46-4869-be10-f429520be934","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":104,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"a2a5d16e-ec84-4919-92a4-c94549d16c53","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":104,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"a030a8c6-c2ac-4e8e-8934-27561b6fbf5d","block_type":"box","text":"Shor t sales are also subject to cer tain SEC regulations and cer tain European Union and United Kingdom","page_number":104,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"98bc9850-8419-4c57-b3ac-0ce5c24650c3","block_type":"box","text":"regulations (under which there are restrictions on net shor t sales in cer tain securities). If the SEC or regulatory","page_number":104,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"77b1cd13-2034-4656-b6ed-3eef75558a35","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding shor t sales, they could restrict a","page_number":104,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"b530fea0-a43e-4fbf-9451-a39d7c44c551","block_type":"box","text":"Fund’s ability to engage in shor t sales in cer tain circumstances, and the Fund may be unable to execute its","page_number":104,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"a832825a-f566-483c-b560-720442ee1242","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":104,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"8817d37e-2a03-4b8a-b580-186bc7f34f8b","block_type":"box","text":"jurisdictions may adopt (and in cer tain cases, have adopted) bans or other restrictions on shor t sales of cer tain","page_number":104,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"f4f2978c-7d3a-443b-b153-27316b1694da","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":104,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"ddfd86d8-a3db-48e3-897d-3ebb018280b6","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute cer tain investment strategies and may have a","page_number":104,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"700c247d-b134-4fc4-a8dc-598cd5566a90","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":104,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"7b4c1cd7-9a19-4462-a07f-d0adfac466cb","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":104,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"5bd6c22c-59c0-43f9-a3b5-977612a42dc2","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":104,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"f008dbd9-64c9-4cce-982c-58186accb563","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":104,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"f56dabb9-e060-4331-adde-6d0ebeca02e2","block_type":"box","text":"potential acquisition oppor tunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":104,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"7b4311de-f899-4404-9771-7e1bd7fa00ff","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":104,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"e208ca77-51a8-45b8-bc5a-e1e6438dc31d","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":104,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"0f70521a-d368-45bc-a817-b29c0eb0c31d","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":104,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"6452cde1-622d-4856-95cc-95e7334ffab3","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":104,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"c50a09eb-c8bd-4d3d-862d-f30c065fe16d","block_type":"box","text":"II-74","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6786bd62-cf76-4a97-aa67-10c66743bd55","block_type":"box","text":"NM0926U-5977728-104/232","page_number":104,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"61660361-1fbb-43d2-ae30-f59288de5195","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition oppor tunity.","page_number":105,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"6453c26b-7932-4c4f-9f06-ad0dea12251c","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":105,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"18f88cf6-268f-401c-b696-bc571e333125","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":105,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"d31d259b-601b-4831-a6cc-ab726213ed79","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":105,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"7d4df7df-c027-48b2-9d37-62f84668f677","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become wor thless. Because SPACs and similar","page_number":105,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"c9068abb-6a96-4ca7-ab00-625acb696ab0","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":105,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"6c8a46c0-075d-4ea1-a812-4e900b2b3759","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":105,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"56d1500f-33e8-4ce9-986e-2009994f58bb","block_type":"box","text":"par ticularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":105,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"9911829b-16b9-4223-a75b-8c75d7a5011b","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":105,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"fa642386-6f76-4280-bda8-776499e7acc7","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":105,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"ebf99526-2b60-43da-8c70-641a74d72050","block_type":"box","text":"cer tain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":105,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"78090ea6-29b7-4aee-972d-d359197771f1","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":105,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"468172f2-1720-4056-b620-5637c357fe04","block_type":"box","text":"Standby Commitment Agreements.","page_number":105,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"8f278dab-2ba2-4cfc-b4d1-17e456fde869","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":105,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"40a95571-12db-4375-957c-9b668778f693","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":105,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"65ce9d47-c6ff-4b00-b139-54281f72a2bf","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":105,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"126f5c91-4f10-445e-81c8-e9392941dde6","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":105,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"0cbaa080-a42e-4385-8431-a052bac4fd2f","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":105,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"89d67dc1-7bfb-4be8-af16-cf4157b36440","block_type":"box","text":"advantageous to the Fund.","page_number":105,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"0008e0c7-9c48-4d7c-b8dc-cec6c550125d","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":105,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"1f764bdd-cf96-4155-a8c8-f7e4c1dcb6c0","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":105,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"19803163-0d91-4995-8e57-3485c2abef0b","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":105,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"2d24b534-ea81-40a5-97ee-9b88469f09e3","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":105,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"a67b9e71-4830-4784-913e-90f69966ffd6","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":105,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"fc2b89bd-5ffe-4fc8-a94c-e01d78f64db7","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":105,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"ba79fc43-0ebb-42e8-a185-2d50d1878ffa","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":105,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"fee9d14e-5342-454b-a74c-34e57dbb9802","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":105,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"c8037d3b-7162-4a32-ba3f-7c745af12129","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":105,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"150afa61-516e-42ba-a4a5-92f0562cb61f","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":105,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"58c17569-1c57-4fef-9182-f6ae3e22fb66","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":105,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"d07cf86b-05b1-4fdb-bae7-ac41541cca52","block_type":"box","text":"por tfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":105,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"00da0d8a-dc24-4792-8a3b-f98861a96d7c","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":105,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"f3505202-9c7d-4967-9352-3441561cc8e5","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":105,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"3a35c876-fc9b-46f0-854c-890f2559aacc","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":105,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"9518a3b8-2688-4dd5-a756-e711bf2ee659","block_type":"box","text":"Stripped Securities.","page_number":105,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"09f8d687-593f-4bcd-86cd-d272b55552a7","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":105,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"febe2260-e4e2-41ad-91a6-8be3143f349c","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":105,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"8abb4179-5ff2-461a-ae20-5754f928da88","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":105,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"152736b0-9d10-4e9c-b284-2806efd9935b","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":105,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"898b4bea-56c7-4ff8-b875-a6287d31c297","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":105,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"fb619c35-7907-41f4-ae6f-fc1fb49d5e2a","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":105,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"8232fdff-7f1e-403d-b19c-034ab9d4ca77","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":105,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"fcaf4805-63b8-4738-bafd-41b2344271ea","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":105,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"8f2f6678-0bb9-47c7-b79f-6b0ab53aab5d","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":105,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"8a9946f5-c51b-475c-afc5-2c7ef60bd5ba","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":105,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"f38388a0-9aed-404b-9197-6d170280343d","block_type":"box","text":"Structured Notes.","page_number":105,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"d9b8ef92-2cb4-4461-a042-cdd6bd05bf36","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":105,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"adce0ff6-c8ca-4baf-aa40-4805eb9f22a8","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the per formance of a","page_number":105,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"982ae140-42d3-455e-9c02-ce627565dbf0","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":105,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"44e29d1e-cf68-4585-b35a-f578a3bd748d","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":105,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"e74ab933-ad3e-4ba2-826c-d366c73ec8f6","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":105,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"9df2d6bf-57aa-49ad-83ce-04a73fc45d2f","block_type":"box","text":"may provide that, in cer tain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":105,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"561c94f7-0baf-4f22-961c-c4126061a227","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":105,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"8f9561c1-3c4e-416c-9801-0f4cdbe08959","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":105,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"cf1ef437-318c-4ac5-bf00-b7eb3b1ba058","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":105,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"41ece109-014c-441f-9d3e-2c51758c74bf","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":105,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"a0aa540f-104c-450e-b3f1-958e3e3a372b","block_type":"box","text":"II-75","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b1993e24-6fa1-4bb4-b75c-a2722e4650f6","block_type":"box","text":"NM0926U-5977728-105/232","page_number":105,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"61537b0a-c4b5-4f64-924a-03a55cef0a9a","block_type":"box","text":"structured notes may be determined by applying a multiplier to the per formance or differential per formance of","page_number":106,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"63967d07-4aa3-4e64-a8e2-4606d396dfb4","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":106,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"9e277393-8c9a-4314-8e6c-23472dbe6f63","block_type":"box","text":"the risk of loss.","page_number":106,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"f4eb5ae5-b9d2-40d2-b80b-d9e0f1cdb592","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":106,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"6a84bf8f-aba6-4516-8137-e2c0071ae3e9","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":106,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"bf35e725-bbe8-4962-a541-80c57a5e2d67","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":106,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"b8800476-d99e-4045-b12c-aa20aa78e5e5","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":106,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"2b61459b-939c-4dfc-b048-5c8a3bb34401","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":106,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"16486c83-11d8-42ad-a9c8-42bda14e491a","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":106,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"869dbad9-9aa9-4c8e-9668-64ad363f670d","block_type":"box","text":"Taxability Risk.","page_number":106,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"fe473bb3-09f6-47bb-acf5-e26cff3152db","block_type":"box","text":"Cer tain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":106,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"36451de7-6c3b-44a9-8205-90cab5ebac4b","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":106,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"e988c13f-8880-4442-ac60-44ca2275788a","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":106,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"81638623-bd63-4e83-8b81-945aee381736","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":106,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"88183110-5700-41ea-a5d3-104ab279fd10","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":106,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"779c071c-e956-4140-90b0-713f46d56e83","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":106,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"82e103be-744b-495e-a201-bd0d9a758baa","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":106,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"b45f6d5f-798d-4276-ba8b-f907d09434da","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":106,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"f6a6ffc0-53d2-4db0-9fb6-c88e5095b222","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":106,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"81d8f9ae-f6c3-4889-9121-03dcfef99ab5","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":106,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"aef6b6d8-681b-47ef-9dd5-a751f2cb381f","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or cour t decisions may cause interest on municipal","page_number":106,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"410774a6-28d7-478d-8020-de91853db4b7","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":106,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"b338c374-6ae0-4af2-b3cd-30a5566319f0","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":106,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"a072d375-34b6-467c-b12b-1ada063d36fc","block_type":"box","text":"local intangible personal proper ty tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":106,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"885363f4-1c63-44b1-8542-43746bebbfde","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":106,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"be64be35-8fcb-4d39-b1f3-cc684418e1ed","block_type":"box","text":"the value of an investment in the Fund.","page_number":106,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"6f3dadfd-5c94-4ac9-a80c-159c865fd9aa","block_type":"box","text":"Temporary Defensive Measures.","page_number":106,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"6cd91194-ee6c-41e5-b483-103a2656bce7","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":106,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"51b65bf4-0f6a-4d8a-9d71-1ffb57cb46f1","block_type":"box","text":"economic, political or other conditions, a Fund may depar t from its principal investment strategies and may invest","page_number":106,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"55d2e7d2-3fe2-4748-9a98-0ce51756246f","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other shor t term investments. Cer tain Funds","page_number":106,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"894e6ba1-cb52-420e-91c3-3b44643e1d80","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":106,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"23bc8a17-0900-43d3-a3c9-caf2d56a06a6","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":106,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"44033f73-26fe-41c1-bccf-1ffb4a2c8595","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":106,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"afa5ed9c-d8fe-40a9-976a-3c76f3265538","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":106,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"37701468-c6ab-4812-8121-6e4f4a102e40","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":106,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"2ac59de3-d85d-47c2-b6e7-f9f4815c329b","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":106,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"a700714a-5014-40c3-821c-b5ee5d6d88d5","block_type":"box","text":"its investment objective.","page_number":106,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"b6c103b6-778f-4ebf-843f-56b8abe8eea8","block_type":"box","text":"U.S. Government Obligations.","page_number":106,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"52e1c0ea-d6f6-4d5c-96e9-567aa02bccfd","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":106,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"e57da433-6c47-4f49-ba73-d6ccb5d693b8","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of cer tain agencies and instrumentalities of the","page_number":106,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"cdbdad0c-cc98-4521-8836-768b9f15e0b6","block_type":"box","text":"U.S. Government are suppor ted by the full faith and credit of the U.S. Treasury. Others are suppor ted by the right of","page_number":106,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"689ad04e-9638-4f59-94db-f1be5ff47ebf","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are suppor ted only by the credit of the agency or","page_number":106,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"c0abb4b0-3220-4a98-8526-6ca238489ec3","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":106,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"d69b5136-f3ab-477f-809e-79d75119fd40","block_type":"box","text":"suppor t to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Cer tain U.S. Treasury","page_number":106,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"c39b4bc5-129a-4799-aee1-2470b307295a","block_type":"box","text":"and agency securities may be held by trusts that issue par ticipation cer tificates (such as Treasury income growth","page_number":106,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"772ae646-912e-4ce0-9cde-c78aa28a5f3d","block_type":"box","text":"receipts and cer tificates of accrual on Treasury cer tificates). These cer tificates, as well as Treasury receipts and","page_number":106,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"180a1fb7-d2d8-4210-976a-793f44390013","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":106,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"221f528c-34d9-4d70-9025-dad0a4df1d89","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":106,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"fd3af69e-c30e-493e-9809-063b51e8d001","block_type":"box","text":"and may (par ticularly in the case of stripped mor tgage-backed securities) exhibit greater price volatility than ordinary","page_number":106,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"cd59a366-350b-42a3-a613-8c325413ea40","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":106,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"3543da42-8096-4739-ac8f-0e6915a4c3b8","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":106,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"2454f4c3-c06c-45ad-8ba9-920da87e7bcd","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":106,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"6ab360c8-9a67-4a35-98b1-91bf1fcb11f8","block_type":"box","text":"Administration, Expor t-Impor t Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":106,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"422524d6-384a-4042-ab76-3bbdc7308c48","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":106,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"52585a91-de65-4ea6-9275-f44869202156","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":106,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"a87afdb5-6f95-4ea6-aa22-3d0b81608c27","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":106,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"b19c0527-1e54-4aba-b4f3-fbcab1f0b8cf","block_type":"box","text":"Funds may also invest in mor tgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":106,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"ee675df8-c8ab-4a2a-a5aa-bb88ac2e31d5","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":106,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"d307dfa0-0964-4da5-a2a8-a424585dda04","block_type":"box","text":"II-76","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6b25c8d6-6279-4e0d-988b-d9547ea6bb0c","block_type":"box","text":"NM0926U-5977728-106/232","page_number":106,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7658d2aa-f807-4b66-95a8-a4b08a648eed","block_type":"box","text":"U.S. Treasury Obligations.","page_number":107,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"3bb13438-f52c-4222-9172-228093dd60e3","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":107,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"b828510c-ee14-445f-a892-9f9fe2d2f627","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are suppor ted by varying degrees","page_number":107,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"6db1dcc9-bf31-4a35-aed4-17f61a5009a8","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":107,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"68151330-ea51-4071-a9e1-52a16479f19f","block_type":"box","text":"that the U.S. Government will provide financial suppor t to its agencies and authorities if it is not obligated by law to","page_number":107,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"cd64d8e7-4e27-4154-9032-0699ce02ea4c","block_type":"box","text":"do so.","page_number":107,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"876bee57-4861-4288-aecf-64351d3199ed","block_type":"box","text":"U.S. Treasury Rolls","page_number":107,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"74b16860-f1e5-4d9a-800e-f12adab6af59","block_type":"box","text":".","page_number":107,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"10a8ccb4-4fba-46da-8009-12cf8bb2532b","block_type":"box","text":"Cer tain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":107,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"303f23ed-5151-4945-8cd1-7cc236d50d0a","block_type":"box","text":"sells a treasury security to a counterpar ty with a simultaneous agreement to repurchase the same security at an","page_number":107,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"0328ea6f-6eca-41a1-b81c-f337ac21201a","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":107,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"8d880a9b-9d76-40af-bce4-653680d2d1be","block_type":"box","text":"maturity of a Fund’s por tfolio and increase the interest yield on the Fund’s por tfolio by extending the average maturity","page_number":107,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"f5a288fe-480a-4b07-b22b-9784f0e15d0f","block_type":"box","text":"of the por tfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":107,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"dd0c5695-0633-4952-847e-e89274dce129","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":107,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"b5562cbe-5ebb-4f31-ac64-8cd6aac035db","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an oppor tunity loss if the counterpar ty","page_number":107,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"6b12933f-b8c9-424a-a810-1db6ba878b13","block_type":"box","text":"to the U.S. Treasury roll transaction failed to per form its obligations on the settlement date.","page_number":107,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"3485101a-20a8-432c-8cf0-228f23c5c296","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":107,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"3bfb0cbe-0912-4397-ab58-dfa6b28f820b","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":107,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"ba299828-ccb1-454f-ae37-f48bb6a20d28","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":107,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"2cbfb9de-cae6-4766-8774-3e417ddcb81c","block_type":"box","text":"Utility Industries.","page_number":107,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"b90b55ab-6c56-4547-8f3f-5ae766e2607a","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":107,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"1c123dbd-7711-4651-8e84-fa3d8128f47a","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":107,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"bd206e9b-2b3e-48bd-a160-5cc9bb808059","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":107,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"7ed40502-38b4-4f0b-9fb0-a96d4fc57b1e","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":107,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"f278ae0e-8dd8-4b62-88c3-743c97049a02","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":107,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"af0aac10-9f1f-4b4e-87f7-080a265120f3","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of cer tain types of fuel, occasional reduced","page_number":107,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"812b6dc8-cbf3-46bc-9ded-493e32b9b23d","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":107,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"e4169326-9b14-42f4-841a-671d29907acb","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":107,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"75de1a3b-9858-4d3a-b1d4-bbfb865f13ca","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":107,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"d23dec31-3e5d-497e-9682-cdf6662a069c","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":107,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"25395ab0-1a67-4391-b556-7029e809e98b","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":107,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"ce708071-71a9-4e6c-bbaa-07081ccacbb0","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":107,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"d9cecf45-24c7-4ef9-a724-6211feb1eb42","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":107,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"bf8f3281-25d6-4c84-bfef-be0489c65d67","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":107,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"82eafc4f-6d16-4267-93cc-02ff2f0d9f94","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Cer tain of the issuers of securities","page_number":107,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"6fe69f6b-380f-4036-b3fa-ff3d3a0c30e5","block_type":"box","text":"held in the Fund’s por tfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":107,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"55f4f311-f3fb-4036-848d-4d888ebb6ac8","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":107,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"0954fc37-1bfa-42f6-ad4f-6eacad52aa6a","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":107,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"be6c5e86-cba9-44a7-9b5c-70b8b01704d5","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, par ticularly a hydro-based electric","page_number":107,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"f8f807e6-d2e2-4187-bd02-7be2581f46a1","block_type":"box","text":"utility.","page_number":107,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"2409cb18-58dd-4bc6-aba0-ec5b5e5c776c","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":107,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"5431ff1d-f607-47b0-ad49-4550455d000c","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":107,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"8444fb11-afb0-4d4a-b0e5-9ac2e7697f02","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":107,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"979b91bc-b720-40d4-ae94-fb67243f8422","block_type":"box","text":"interest rates and therefore may lead to volatility in per formance.","page_number":107,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"0e7e6c4c-4d6c-4991-ab37-4ff57786c084","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":107,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"a5873af3-452d-41ca-b6e8-1f3aae0e1fec","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":107,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"21b89afa-4e0c-4097-a1ee-10b74e69f7f9","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":107,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"277b4d38-8588-4f7b-a1b5-ba2dd7087889","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":107,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"723c1e5d-afa4-459c-990b-2854093eec2f","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":107,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"6cecb017-9458-4dab-8904-a7437e25cf26","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":107,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"7756d58c-39d0-4836-866f-6a906c6b9486","block_type":"box","text":"continue in the future.","page_number":107,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"9fe1cf3a-034b-4012-961f-273311d81990","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":107,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"fb80d9db-e090-4715-b32b-1104f66062f6","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":107,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"4d0c98c6-1167-4fd0-8164-5ceca46e53ca","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":107,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"5a91b672-7a41-4077-b92b-b47b41714a0a","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":107,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"2dfd01f2-c65d-4b06-8b5c-30e7dcb9b8f6","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":107,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"80a3a232-3029-4bae-9670-a83c1c33ed39","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant par t of their","page_number":107,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"1d693ee8-89e9-4953-98c6-78cbe3a8023c","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in cer tain","page_number":107,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"90eb348c-e5e2-453b-bef6-fa1fb3aace1b","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":107,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"e249cb3a-70eb-495e-a5ba-fd7582a4bca9","block_type":"box","text":"II-77","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e0faac8d-8603-4aa8-b4d7-ad199f03aef9","block_type":"box","text":"NM0926U-5977728-107/232","page_number":107,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"bf6abcc4-0ce1-40bb-ad97-8c841d2d5b1b","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":108,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"374c22b7-377d-420e-bb4c-15c6d77635ea","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":108,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"3e049534-ed95-4daf-bb47-d1fdb90580a5","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":108,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"4040920d-1818-469d-9d20-0b042c80bf49","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":108,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"20d83aba-45a8-4d1c-9a14-01c3a2a897c6","block_type":"box","text":"restrictions on the maximum level of profits of cer tain utility companies, but may also subject these companies to","page_number":108,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"99ae9332-d237-4dc4-92ca-34d070fcecf8","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment oppor tunities that may arise from","page_number":108,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"d4253778-6106-4fd6-8ed1-9f6e30f7c475","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":108,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"84144d3f-050d-4d0f-a512-9dc979cdbc7a","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":108,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"6723ccc4-c417-4e4e-aded-068c9852b4c4","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":108,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"999d4f09-c329-4de0-837e-342d5fa7c383","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":108,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"70285409-61f6-485d-bf19-53771719a3eb","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":108,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"dc2b6b64-12d5-458d-8839-117621f5c236","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":108,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"71574a34-2fed-47da-99a5-59a1e49393a3","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":108,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"b0182237-e494-424b-9919-8d49c014ff26","block_type":"box","text":"ways different from regulation in the United States.","page_number":108,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"6ad4e3f7-7dc0-42f9-9aa8-c5f191c54ddc","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment oppor tunities","page_number":108,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"1a2eb02d-d34f-4d4f-9ac0-898365979aee","block_type":"box","text":"throughout the world. For example, the rapid growth of cer tain foreign economies will necessitate expansion of","page_number":108,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"d1d9446c-0ccc-4481-938f-f51529b70637","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":108,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"8622e3e8-fa3a-4ecc-9c9b-bfa949da280e","block_type":"box","text":"owned, thereby limiting current investment oppor tunities for a Fund, the Manager believes that, in order to attract","page_number":108,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"de269f74-f6c6-41cb-9b9e-006973993568","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":108,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"19144567-83d8-4c6e-a128-99ba845349be","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":108,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"2988d4ad-0365-4766-b016-4581e07e81b4","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":108,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"b1937a00-612b-498b-86d2-eb0ac439419e","block_type":"box","text":"assurance that such favorable developments will occur or that investment oppor tunities in foreign markets will","page_number":108,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"d2000a11-ddd9-45f5-8edf-5f9108719dfa","block_type":"box","text":"increase.","page_number":108,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"a5dbd14e-ba25-4db2-a015-a4a219a4637d","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":108,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"39e6ee02-681f-43ec-95fa-837cf3708c9b","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":108,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"a6b54f48-5ac0-4986-bb55-811f53e99b97","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":108,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"52fe1a8c-1f9e-4b34-a1c4-abcdf0607c0f","block_type":"box","text":"Electric.","page_number":108,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"861f5aef-8a5a-485e-90f6-87ee9ec5cb55","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":108,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"06dcc0cb-fbff-4c91-9f85-6bfffa25521b","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":108,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"08b18ab4-93f5-463b-8efb-381703fa24d0","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":108,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"5b437721-61b2-4cc3-8f89-7225a3989a83","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":108,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"d0455494-4575-4c4d-84c8-0da68f3603e6","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":108,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"275722fa-1f04-497e-9280-a24c18f1ecb3","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":108,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"08e96d29-0cb8-45fe-8921-474ca56e1884","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":108,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"fde568eb-6e9d-4e52-92f1-75387da85fce","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":108,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"cf28004c-3a77-43d4-beeb-3aab6de39525","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":108,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"51e10714-4cfc-415c-9d6a-5a06ece2e397","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":108,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"e02f8276-3849-4454-97f5-bd9f9f4a5c25","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":108,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"10508354-0e59-4f79-81df-c546b12cad35","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in par t with customers. In a period of rising interest","page_number":108,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"fcc8f107-27ac-4345-a9da-109335f35c4c","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":108,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"8f10ec45-91ad-4451-87f5-d4a5eb2b2a9a","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":108,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"96f5a009-61ff-4e0f-8100-d7936a0647ed","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":108,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"da0c6f76-87d9-4317-b45e-235dee18c977","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":108,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"d5de8451-0266-444c-827a-8349e2f11c34","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":108,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"bd5b83e0-96ce-4026-a419-29fb8937e333","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":108,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"e99e0178-17ea-4c92-83d8-57450e047588","block_type":"box","text":"and for decommissioning such plants.","page_number":108,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"193090c5-48ce-449a-a817-219f799c4046","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":108,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"eb8397a5-cc25-4d5b-888e-c3f69a4f1e71","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":108,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"922409c1-e38e-4eb3-98d4-cd069b4715d9","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":108,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"4690684a-5554-4a5d-93e2-fafc13c224b0","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":108,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"2007155a-29c8-49fa-9bc7-35ffcd8c915f","block_type":"box","text":"is expected to be the least competitive and the more regulated par t of the business, may see higher ratings given the","page_number":108,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"752322b4-3ff8-4568-937d-9452e7db7b74","block_type":"box","text":"greater predictability of cash flow.","page_number":108,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"e53a1cb3-01d1-497b-a65b-fd61946d74fc","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":108,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"b717a9c3-55d8-46b1-83b0-da41126291c5","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":108,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"22ae5e6a-2cab-4de7-8ced-87006561ef97","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":108,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"7553acda-8ee5-4002-9786-68eae081a1fe","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":108,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"5dfd935b-6f8b-43f4-b45a-6f29f51da6ca","block_type":"box","text":"II-78","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0d3555ea-b84d-4bdd-bf59-ea944b786c99","block_type":"box","text":"NM0926U-5977728-108/232","page_number":108,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8b9d013c-89a6-4e8a-b1ff-60030b5fa639","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":109,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"a37e6478-6809-4a50-a7a9-ce3884db9931","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":109,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"64ded26a-64b6-4eb2-a81a-72d71d94189d","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":109,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"b4c03f59-3c92-41f7-92e4-0d5d0371a02c","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":109,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"50b24648-7106-487b-bf6f-5b834af3ca14","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":109,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"bfb5c734-3d74-4259-b508-1303d2961f93","block_type":"box","text":"Telecommunications.","page_number":109,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"b9da5f9b-495e-43cd-8e18-21823fc5aa3c","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":109,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"1487967b-4619-4fd1-8f38-659086693112","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":109,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"4c59ec3b-d075-42d2-8cfc-edfca2af4de4","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":109,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"e8f138f8-23aa-4b63-a5c0-1c7480e9e44b","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":109,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"13c961d7-b5d4-4cff-8913-5da780b16fa1","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":109,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"8ccfad44-b7d9-4ade-99a3-a71fff9b6e41","block_type":"box","text":"networks still comprise the greatest por tion of this segment, but non-regulated activities such as wireless telephone","page_number":109,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"83f9782e-d5e0-4944-b0f4-140a0853520a","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":109,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"8662c974-29c9-4359-9f15-4467856e8818","block_type":"box","text":"internet services are becoming increasingly significant components as well. In par ticular, wireless and internet","page_number":109,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"ba242e09-31c0-4cda-ab9c-8f61eda5f9cb","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":109,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"4433de21-028d-44f4-a8bb-9d34b1942e0e","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":109,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"cc94eb12-0345-4151-9bb6-c0f6dc2b9990","block_type":"box","text":"regulated businesses provide significant investment oppor tunities with companies that may increase their earnings","page_number":109,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"6271c8b3-aae4-4938-8014-36360a06fbc9","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":109,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"f037fd68-f34c-4d6c-8ebd-4a75578ed70b","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":109,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"916592f0-6eab-4594-bdfa-dede7c2804ac","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":109,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"ff9c05b2-6153-4c0d-a860-f5fbd382fd38","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":109,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"5a8aa182-c93f-49aa-b887-0eecb5ab6b40","block_type":"box","text":"residential, corporate and governmental customers.","page_number":109,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"99ef12e6-9509-4b24-b216-135714cac6a9","block_type":"box","text":"Gas.","page_number":109,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"e9f04ebc-9873-47a9-aa1f-71d953d85466","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":109,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"62c78aa5-ba6f-4bac-bddc-8307428648fa","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":109,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"3b58e551-7572-4291-8aac-b3380c99eef0","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":109,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"13a1e8ad-2e80-4453-889e-56a0c82b293f","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":109,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"06f19f28-4f75-44f7-96d2-33f9040fe925","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":109,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"1b10a1c7-6296-4058-aa80-0a580cfa6dbf","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":109,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"c00cdb4c-82d6-444f-b806-842ca850565c","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":109,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"fc5882f9-ee69-4530-a5a6-ae0ef0db52cc","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":109,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"c6e2693e-ae10-4644-8321-0c300d5c105a","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":109,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"96ca44b5-5f96-41a8-b4c0-3460d78bd8ca","block_type":"box","text":"Water.","page_number":109,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"ade5d7cf-3b24-4ca3-b16e-d9f524674e5a","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":109,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"03012a8f-eee2-43fb-ae12-6d3a2e8b59f2","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":109,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"41874621-05c5-4572-ab17-e9af1b3672ed","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":109,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"3ba090f4-23a6-4974-97bf-0e81f35df046","block_type":"box","text":"opinion of the Manager, there may be oppor tunities for cer tain companies to acquire other water utility companies","page_number":109,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"588ac282-0de9-4e00-9215-d4e96af627c5","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment oppor tunities","page_number":109,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"d24606e1-9c14-44d5-82ec-738c38ea8571","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":109,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"19a6065a-07d8-4c07-ab53-f8b2a80c983a","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":109,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"96bc6e80-de98-4405-abcb-c2019fc8de7d","block_type":"box","text":"Utility Industries Generally.","page_number":109,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"c82a36ee-863b-443d-b15b-0cfe6e08a7b5","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":109,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"406bc2e7-c8c2-431c-acba-b687b5d1ca8e","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":109,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"9218d4a9-129a-46de-babb-dab1c04ee3da","block_type":"box","text":"not develop in the future.","page_number":109,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"7b7e6b28-06cd-437b-92de-a7da01865210","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":109,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"1b9d7db9-4962-4d4f-af83-9e20f4f82929","block_type":"box","text":"A Fund may purchase or sell","page_number":109,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"f1bf477f-93de-4e03-b845-88e64a4cbc5c","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":109,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"fff672c2-0e33-4334-82e0-86db0c196cf3","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":109,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"a2d7ae1e-65c3-4a22-a543-74d898f19008","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":109,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"6f509917-1532-46e5-aa68-5708bd31e8ea","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":109,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"767289e2-15bf-4558-a68b-4370042d2768","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":109,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"118c4a1b-9d1a-4b69-9d7f-32cbda08e5a2","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":109,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"4649e347-43d9-47d9-a7d9-0b2ca700a82f","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterpar ty generally will be required to post collateral when entering into","page_number":109,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"ff252238-b7f7-4d0a-ba22-804d42902988","block_type":"box","text":"cer tain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":109,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"15df9590-d16c-439e-a129-41a38f6d0878","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":109,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"53c6a99b-afce-4bb8-8a28-250d8a0da1ce","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterpar ty credit risk between trade and settlement, but","page_number":109,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"e90b9911-e017-47dd-9c3f-bda1cb841215","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":109,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"02cfca30-6d14-476a-ba4e-289d507d0f33","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":109,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"e33c04f4-04b1-4fc3-9b0f-663744c1fad5","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":109,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"e781fd83-bfa6-410e-9625-8080429627fc","block_type":"box","text":"II-79","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6f0e034a-05d0-48e3-ba4b-3cc83eea9f37","block_type":"box","text":"NM0926U-5977728-109/232","page_number":109,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"abb1a2ac-3a01-497f-be7e-482811fe973d","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":110,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"52ff327f-3bf4-4f78-a742-443daa7d7105","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":110,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"2c60aa37-7e40-45e3-a88a-f504c9393091","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":110,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"26582563-6017-413f-a240-7b38c854f402","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":110,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"becf5a8d-59f4-4992-b230-57db8dbf8099","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":110,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"7631064b-7824-4ea8-84ab-cc4f2318aa87","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":110,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"9398bd9f-e61d-4387-923a-5e20b3e74116","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other par ty to","page_number":110,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"f99a66de-ed50-4179-ad1b-2401a0b1f361","block_type":"box","text":"consummate the trade. Failure of such par ty to do so may result in the Fund’s incurring a loss or missing an","page_number":110,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"bc2429bc-13ad-4d6d-bc57-406cfe42448e","block_type":"box","text":"oppor tunity to obtain a price considered to be advantageous.","page_number":110,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"300edea4-398f-4bf6-a4ba-a65767e67e43","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":110,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"cfe14f00-d38b-44a9-a2cd-e9721e52f6d7","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund star ting on the","page_number":110,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"cd80d69f-4ccd-4a6d-bbb4-7583bbaeb700","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":110,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"3ab5042a-12a5-4864-9940-d0a7f9abe9d5","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":110,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"76599a4e-7114-4745-9b68-7e2f32ed98da","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":110,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"cabc988a-4192-4d21-a2d9-1b44a6a85fea","block_type":"box","text":"securities (","page_number":110,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"604494ac-20bb-4e83-ba05-a84b59f6dd6e","block_type":"box","text":"e.g.","page_number":110,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"ee888a1b-ab8f-4fb7-ad66-6ae35a0c4321","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":110,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"785a21f1-c061-4852-bc82-02c19e6a71bc","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":110,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"487af8fb-3944-44ca-8f67-c72b46f6903c","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":110,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"f124395f-5cf9-4556-a5f1-ed26721200db","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":110,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"243aab81-75a3-4a2d-bff2-883926f104c4","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":110,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"811e63b6-562d-42e1-b36f-909f750cbe07","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":110,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"872bdf8d-3d2a-4755-a33d-2824f94ac20b","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":110,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"b2a1087d-909f-41a5-92a8-2c7c5926a655","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":110,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"d7bcce41-6542-4360-acef-894b9df4ea24","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many agreements with respect to when-issued, TBA","page_number":110,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"42641fd1-77e1-4ffe-ada6-a23d50f2740e","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterpar ties, such as a Fund, to","page_number":110,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"04c264cd-7aae-4ba4-8cbd-1d5118ae2ee2","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":110,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"ec9ee6e4-6d62-4260-9d27-f19cbadd3ab1","block_type":"box","text":"suppor t in the event that the counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency","page_number":110,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"363ddd65-86df-486f-b622-a75cfb874537","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":110,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"7076bf16-ac19-4a33-a42b-50c5a5189a8d","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":110,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"ab0a950a-1ec9-4d48-aadc-691e713a5524","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":110,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"39feebce-68ae-44a5-a081-e1b933cb961a","block_type":"box","text":"Yields and Ratings.","page_number":110,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"71c6b9c0-b803-4d78-8dfb-aa55a6e00ab9","block_type":"box","text":"The yields on cer tain obligations are dependent on a variety of factors, including general","page_number":110,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"c46e3b01-b927-4861-bb33-1aae2664a238","block_type":"box","text":"market conditions, conditions in the par ticular market for the obligation, the financial condition of the issuer, the size","page_number":110,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"aa7f8766-089a-423b-9c38-3c74fd58c19e","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":110,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"ce478866-d04c-4cda-8405-bf666826a940","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they under take to rate. Ratings, however, are","page_number":110,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"b254d338-eb27-40b5-bd22-d635fe1c068b","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":110,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"f93be2be-0a49-4925-aacf-a7bc35bc4a6f","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":110,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"7912afdb-6b35-4e34-97eb-d1560efa25a8","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":110,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"4693d448-f2c5-4a1a-8964-52adc3715192","block_type":"box","text":"continue to hold the security.","page_number":110,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"50018f10-4d71-4d51-9268-241811492c7d","block_type":"box","text":"Zero Coupon Securities.","page_number":110,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"5b866e46-f817-45b8-9e2d-c3e4fdfa8fc0","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":110,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"58b9043f-df2e-4f09-b69c-2d991978e99c","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":110,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"60a2c1bd-fb47-40b4-b3a8-bc43b94689d3","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":110,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"bff9abaf-1f26-4009-a473-c2f713f7e947","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":110,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"3e9768e7-f5c3-45fb-a6a5-a22742510c3f","block_type":"box","text":"security.","page_number":110,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"118f1a2e-b70d-4191-88ad-d5d741fc49ff","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":110,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"a29f2f58-98f9-407b-9bc5-a94ec33a9937","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":110,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"4f99f6a8-5894-4759-97fe-e701c25e830c","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":110,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"038fd8b3-47d0-4db7-b6ec-4282c2e7c409","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":110,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"bba4906c-9f83-44a2-9754-aa0cdf9814d0","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":110,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"e85436fd-9ec4-450c-9d3a-a7c1ff6d503b","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":110,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"5d780352-a04a-460f-8ada-ef9bff60eb2b","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":110,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"786c0f10-c871-4d89-b4ad-7ce9313107ef","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":110,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"9d9ed901-52b4-4970-8129-b069ab6fbac3","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shor ter term zero coupon bonds. These investments","page_number":110,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"001a7446-d263-4b49-8619-2ec708175c37","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":110,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"25db51a9-16bc-401d-86dd-4e433c4d62de","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":110,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"559623ae-a08e-4da9-9900-ec1cd5bf25ca","block_type":"box","text":"II-80","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"09af680f-9d9a-4aae-b231-357f5a272cd4","block_type":"box","text":"NM0926U-5977728-110/232","page_number":110,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7a557cd7-c086-4d27-9312-099364706470","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":111,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"4b723973-10bc-4d5b-a6ec-8412acec3ac7","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":111,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"5c6849e7-5a5e-4a7c-93e8-d981fc77d55a","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":111,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"67dcc6a4-2265-4011-91ed-ca3d8f6c37e2","block_type":"box","text":"intervals.","page_number":111,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"e50e850d-e11e-4a4b-a8f4-b9d913a40f8f","block_type":"box","text":"Fur ther, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":111,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"26d17248-42fc-4656-b5cb-a8d2bfdffacc","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":111,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"2a677c54-d4d9-4770-af78-82bf6649b69e","block_type":"box","text":"por tfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":111,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"a3ccc276-ad41-43e4-a6d9-8d657c133d51","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":111,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"6f8f8d9a-b6ea-438d-be57-17976407c5de","block_type":"box","text":"exposure to zero coupon securities.","page_number":111,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"ab1f8550-c55c-4189-b081-a514fc92b78e","block_type":"box","text":"In addition to the above-described risks, there are cer tain other risks related to investing in zero coupon","page_number":111,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"adce4362-bbaf-4d1c-b425-9472567ab79b","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":111,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"50ffd6b0-f83d-46e0-887c-ef08698b85ae","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":111,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"87a975a1-99f2-4ab8-ac42-adef4613afe5","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s por tfolio.","page_number":111,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"60775eeb-3964-45ed-a9ac-b00754f4369c","block_type":"box","text":"Suitability. (All Funds)","page_number":111,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"03394f16-9a38-4bda-aa96-025313abd1d3","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":111,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"305d12b4-3a6d-496e-acc6-b94f6b4c2575","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":111,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"b0c2b6b5-b625-4194-9a96-c5cf58fecab4","block_type":"box","text":"investment program. The suitability for any par ticular investor of a purchase of shares in a Fund will depend upon,","page_number":111,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"a4e53615-d691-4c8f-b53b-32535d471ae3","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":111,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"41ffdc4a-821c-4776-ad2f-1174686b8f9a","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":111,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"185c9f4d-8f19-40bf-811e-e72cc4cd27c2","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":111,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"b34cbb30-a33a-4ba9-b325-0d2efdb84622","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":111,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"1f5b3213-478f-4067-9c56-280bc7bb439a","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":111,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"981d50e6-5de6-4046-994f-31a095dff4fa","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":111,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"015a3b3f-20cd-40c1-94e7-055418cbe475","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":111,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"5b2ccd1d-00ad-46ed-be7a-61695d831525","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":111,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"805df79c-1f7c-4f4c-bee2-c5e12964d496","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quar ter of the taxable year, (i) at least","page_number":111,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"42c7c05e-ffb8-4cc6-b878-df340a66799a","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":111,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"00a135b0-9524-404a-8a0d-24df2cea5614","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":111,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"78b790da-01ab-478b-8198-004403691708","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":111,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"08e47231-ab3b-4dd0-955e-2d5f81c662fb","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":111,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"f207aca9-3866-43b2-83e3-87ea09e48608","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":111,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"736c28ba-6610-4d25-a843-472ccb4e4371","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":111,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"9a8455e0-bd4e-42a4-8ed2-81beff958382","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded par tnerships","page_number":111,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"681a2fd5-4831-410c-b1a8-b289a221339d","block_type":"box","text":"(","page_number":111,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"f3b931f5-0e4a-4249-ac1d-a179e7f7d070","block_type":"box","text":"i.e.","page_number":111,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"e083fe23-7e40-41d9-b3c9-5e21ed49f464","block_type":"box","text":", par tnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":111,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"d995913a-00bb-4b2a-bd2b-606a2d66fc8f","block_type":"box","text":"par tnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":111,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"c5b2d48a-4388-4369-9da8-438847936df6","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":111,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"07599762-a5fc-4fb9-976f-2fb5958ca10a","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":111,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"26725c54-5d58-4644-8468-a5bbb1f0dec9","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":111,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"d3722a68-fda8-4134-a438-22f416826485","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":111,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"040e804f-7e97-43f1-b89f-b3f6eb00e8a5","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":111,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"757f8149-f4d1-4243-9d8b-6336c29f7453","block_type":"box","text":"regarded as the sole issuer.","page_number":111,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"e473e758-4d87-4265-8ebe-8dea2ff8bd27","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":111,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"141ec642-4dc9-474d-b68c-8f06b580f66d","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":111,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"7b63fdd8-2c26-41aa-8494-7f72509029e2","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":111,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"8ce7ce82-5bbc-4ae5-b5b7-02337de24883","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":111,"box":{"x":70,"y":770,"width":747,"height":12}},{"id":"f4671b32-6ed5-4d94-a848-069dc391d3c1","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":111,"box":{"x":70,"y":785,"width":834,"height":12}},{"id":"6d23c9fe-90cd-4ed2-98c5-668f856a1b4a","block_type":"box","text":"75% of its total assets.","page_number":111,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"cfae0239-b339-4016-9b52-8c788752829b","block_type":"box","text":"II-81","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7ee0f6b5-0ce4-4e87-b689-d17056430d99","block_type":"box","text":"NM0926U-5977728-111/232","page_number":111,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3ad042ba-2db6-4328-ab23-ceb4bac7b5c7","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":112,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"9014d787-91af-49ee-bb19-cb5c1ea00509","block_type":"box","text":"Directors and Officers","page_number":112,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"ff3e5291-d043-4a6b-b614-d4cca9f37a8f","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":112,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"b0f6275d-6b8b-45a8-a9f5-fdbdcc571b78","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":112,"box":{"x":69,"y":113,"width":783,"height":12}},{"id":"de2c3a10-4053-49fc-a2f0-46cef34f5013","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Par t I of each Fund’s SAI for biographical and","page_number":112,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"3d8551f8-898d-44fd-8fd7-cd2003d500f5","block_type":"box","text":"cer tain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":112,"box":{"x":69,"y":143,"width":789,"height":12}},{"id":"1d606fd4-8332-4a96-a1f6-765c954d017e","block_type":"box","text":"Management Arrangements","page_number":112,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"593758dc-cc5e-4d79-a7dd-b19100a98552","block_type":"box","text":"Management Services.","page_number":112,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"30f148d5-face-44dc-be26-4f0f21d0fc6a","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":112,"box":{"x":270,"y":197,"width":615,"height":11}},{"id":"ce543a75-a1d1-499f-94c1-fec65b2e77c0","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":112,"box":{"x":69,"y":212,"width":836,"height":11}},{"id":"bf9c086c-6954-44cd-ab48-bf93ccf27782","block_type":"box","text":"por tfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":112,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"15f179c1-98be-43fa-87ce-1b973676d857","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a par ticular security rests with the Manager. The Manager","page_number":112,"box":{"x":68,"y":242,"width":832,"height":11}},{"id":"33db2b3a-a31a-4604-8e79-3187ee7d0518","block_type":"box","text":"per forms cer tain of the other administrative services and provides all the office space, facilities, equipment and","page_number":112,"box":{"x":70,"y":257,"width":801,"height":11}},{"id":"a6c7f681-944a-46d5-af1b-1f71022bf9c4","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":112,"box":{"x":69,"y":272,"width":370,"height":11}},{"id":"fd1fe6f5-a199-49cb-94c6-7ccdd9fe4e9e","block_type":"box","text":"Each Feeder Fund invests all or a por tion of its assets in shares of a Master Por tfolio. To the extent a Feeder","page_number":112,"box":{"x":102,"y":295,"width":778,"height":11}},{"id":"62d96a82-0ef7-4877-aed9-174b924bbf4b","block_type":"box","text":"Fund invests all of its assets in a Master Por tfolio, it does not invest directly in por tfolio securities and does not","page_number":112,"box":{"x":70,"y":310,"width":800,"height":11}},{"id":"7a585eed-b913-488c-a757-c5a70a1aaf59","block_type":"box","text":"require management services. For such Feeder Funds, por tfolio management occurs at the Master Por tfolio level.","page_number":112,"box":{"x":69,"y":325,"width":810,"height":11}},{"id":"27f8b3b9-ac1b-4ca5-8832-e00b157bed79","block_type":"box","text":"Management Fee.","page_number":112,"box":{"x":102,"y":348,"width":126,"height":11}},{"id":"69d9fed2-d519-4b8f-af62-0693287d3fb6","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":112,"box":{"x":235,"y":348,"width":646,"height":11}},{"id":"bf6da413-6a9b-4b82-8402-ebaf621041ba","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":112,"box":{"x":68,"y":363,"width":841,"height":11}},{"id":"c4b90124-69f6-453b-a331-1e063f85e448","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":112,"box":{"x":69,"y":378,"width":833,"height":11}},{"id":"bb037648-d490-45ef-afb9-d6b1f62013f2","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements —","page_number":112,"box":{"x":68,"y":393,"width":746,"height":11}},{"id":"f2af9e9c-4cfc-4e80-8721-ad4a5a2d0ad1","block_type":"box","text":"Management Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of each Fund’s SAI.","page_number":112,"box":{"x":70,"y":408,"width":825,"height":11}},{"id":"e0bca894-1a5b-494a-9905-d21f42163c80","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":112,"box":{"x":102,"y":431,"width":774,"height":11}},{"id":"904d3bfd-1fd2-463a-bbad-921707b934a9","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":112,"box":{"x":69,"y":446,"width":826,"height":11}},{"id":"bda7d1e2-f069-4d28-8924-3c1aca032515","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":112,"box":{"x":70,"y":461,"width":820,"height":11}},{"id":"104f428c-9667-452f-ae2a-94d242a68584","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":112,"box":{"x":68,"y":476,"width":797,"height":11}},{"id":"b7e7a48d-05ae-4747-8eb7-4a7389b501bb","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":112,"box":{"x":70,"y":491,"width":830,"height":12}},{"id":"2ed32262-2749-4281-8416-74ba11cc6b33","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder repor ts, prospectuses and statements of additional","page_number":112,"box":{"x":69,"y":506,"width":802,"height":12}},{"id":"e627bdb5-1588-4442-990d-e97530e65cf6","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":112,"box":{"x":70,"y":521,"width":809,"height":12}},{"id":"d3913c08-177d-4519-b816-61f6973c7f69","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":112,"box":{"x":69,"y":537,"width":838,"height":11}},{"id":"aadec3ec-f83a-41e2-bd4c-66c7765c1744","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":112,"box":{"x":69,"y":552,"width":830,"height":11}},{"id":"53ac1102-e6b8-44f0-8de7-7d3e318bcb98","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":112,"box":{"x":70,"y":567,"width":784,"height":11}},{"id":"721e7eb0-930e-4f10-b11e-dd9795de7268","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":112,"box":{"x":69,"y":582,"width":767,"height":11}},{"id":"67531ce3-386f-40a6-b3e0-0a86945ef8d2","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Cer tain accounting services are provided to each Fund","page_number":112,"box":{"x":69,"y":597,"width":825,"height":11}},{"id":"22c0f345-848f-481e-8559-d5619e747a8f","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":112,"box":{"x":69,"y":612,"width":827,"height":11}},{"id":"608876e2-8619-44c4-a2b9-47e56ea7cb72","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":112,"box":{"x":69,"y":627,"width":814,"height":12}},{"id":"3f427b3a-ee25-4125-9c95-4df987ffcfc9","block_type":"box","text":"each Fund. Each Fund pays a fee for these services. The Distributor pays cer tain promotional expenses of the Funds","page_number":112,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"4b8d6e08-e161-4176-a126-d88058f683e9","block_type":"box","text":"incurred in connection with the offering of shares of the Funds. Cer tain expenses are financed by each Fund pursuant","page_number":112,"box":{"x":70,"y":658,"width":839,"height":11}},{"id":"d19a294a-8b2e-4f42-9caf-d8cf6500f5b8","block_type":"box","text":"to distribution plans in compliance with Rule 12b-1 under the Investment Company Act. See “Purchase of Shares —","page_number":112,"box":{"x":68,"y":673,"width":828,"height":11}},{"id":"adbaa39a-6a3b-4fd0-bed2-9ff0cc4529d3","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans.”","page_number":112,"box":{"x":70,"y":688,"width":350,"height":11}},{"id":"90dfadff-6003-43db-b916-b1a83283c558","block_type":"box","text":"Sub-Advisory Fee.","page_number":112,"box":{"x":102,"y":711,"width":124,"height":11}},{"id":"c26f0811-ed3d-4945-aba5-606ca02d1782","block_type":"box","text":"The Manager of cer tain Funds has entered into one or more sub-advisory agreements (the","page_number":112,"box":{"x":232,"y":710,"width":643,"height":12}},{"id":"5c0ff911-dcc7-464f-85b9-3a8175e08c2f","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":112,"box":{"x":70,"y":726,"width":839,"height":11}},{"id":"95bea93c-c688-4ff1-bc08-8f2b85a0e30c","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":112,"box":{"x":68,"y":741,"width":830,"height":11}},{"id":"8ae7bb00-8891-43f2-8bc1-d7294bf5ae9b","block_type":"box","text":"Organization of the Manager.","page_number":112,"box":{"x":102,"y":763,"width":204,"height":12}},{"id":"7732ec60-f94e-4211-92b1-b94a222436f6","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":112,"box":{"x":313,"y":763,"width":560,"height":12}},{"id":"7c7d568f-d201-490c-b3dc-306b5961d2ec","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":112,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"7b80d77f-b44a-4951-9324-6a2cd3b9d1a4","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":112,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"2a662477-4c9f-4278-9e3f-d2608a2c173c","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":112,"box":{"x":69,"y":809,"width":768,"height":11}},{"id":"23ef38d8-6e22-4d9c-afb7-37fb000d64d4","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":112,"box":{"x":69,"y":824,"width":821,"height":11}},{"id":"b25ea48f-1f4a-4ec9-922e-f636a4d5883b","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":112,"box":{"x":69,"y":839,"width":517,"height":11}},{"id":"2d82e489-0938-4099-b452-d7541f08e6e4","block_type":"box","text":"Duration and Termination.","page_number":112,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"752c5444-7eb6-46f2-b5ad-913a2748c879","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":112,"box":{"x":292,"y":862,"width":613,"height":11}},{"id":"7be7c87f-03d0-4fde-9879-341239c0018b","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":112,"box":{"x":69,"y":877,"width":835,"height":11}},{"id":"cc54afc3-eca1-4676-b385-59927760f59a","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":112,"box":{"x":69,"y":892,"width":803,"height":11}},{"id":"1eee4318-5201-4c68-ae5f-973f6ca34c84","block_type":"box","text":"(b) by a majority of the Directors of the Fund who are not par ties to such agreement or interested persons (as defined","page_number":112,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"2cbafe9e-3091-41d3-a51c-9e04d493d3f5","block_type":"box","text":"II-82","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e4161df3-2ad1-492f-adb0-f64dec1dfddd","block_type":"box","text":"NM0926U-5977728-112/232","page_number":112,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"931c1a63-447c-453d-a364-5c2aeee96a65","block_type":"box","text":"in the Investment Company Act) of any such par ty. Each Management Agreement automatically terminates on","page_number":113,"box":{"x":70,"y":45,"width":778,"height":11}},{"id":"24d060ea-38f8-4779-af74-9ac18f0763b7","block_type":"box","text":"assignment and may be terminated without penalty on 60 days’ written notice at the option of either par ty thereto or","page_number":113,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"66dccf02-7096-4f99-96bb-bd6d0062c7d8","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":113,"box":{"x":69,"y":75,"width":388,"height":11}},{"id":"95709bd2-1dcd-4d8f-91d2-6a93012af150","block_type":"box","text":"Other Service Arrangements","page_number":113,"box":{"x":69,"y":105,"width":205,"height":11}},{"id":"2190c5d7-bd18-4ba9-9c32-c279c864db88","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":113,"box":{"x":101,"y":128,"width":338,"height":9}},{"id":"c3cc89b6-9bab-4134-a7b0-10c308987785","block_type":"box","text":"Cer tain Funds have entered into an administration agreement","page_number":113,"box":{"x":446,"y":128,"width":439,"height":11}},{"id":"d5b7fafb-7c6d-4828-980c-2d1c4dded6af","block_type":"box","text":"(the “Administration Agreement”) with an administrator identified in the Fund’s Prospectus and Par t I of the Fund’s","page_number":113,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"cc60de30-906d-4290-bb86-0c50f69df4bf","block_type":"box","text":"SAI (each an “Administrator”). For its services to a Fund, the Administrator receives monthly compensation at the","page_number":113,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"b72c7d41-a467-46d0-aacd-13e029b6afdc","block_type":"box","text":"annual rate set for th in each applicable Fund’s Prospectus. For information regarding any administrative fees paid by","page_number":113,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"45097418-24ea-4eb2-8ef3-6724647d9d7c","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":113,"box":{"x":68,"y":188,"width":738,"height":12}},{"id":"53aef385-c08b-40d1-9fa5-b23b935ce57e","block_type":"box","text":"Arrangements — Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of","page_number":113,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"87318170-4fb8-45af-a9dc-cba7ef8f2388","block_type":"box","text":"that Fund’s SAI.","page_number":113,"box":{"x":68,"y":219,"width":113,"height":8}},{"id":"0042b74a-a060-4dc1-aeaf-5e37207e982d","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":113,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"e73f7b29-97b5-4848-b3e3-182180ffd20e","block_type":"box","text":"cer tain administrative services to the Fund and to pay, or cause its affiliates to pay, for maintaining its staff and","page_number":113,"box":{"x":69,"y":256,"width":800,"height":12}},{"id":"27337ea8-939b-4abf-80f6-f727d8a1c90e","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. Each Administrator is also","page_number":113,"box":{"x":70,"y":271,"width":809,"height":12}},{"id":"2793a391-44e0-43e1-a8a6-81c094cd4192","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":113,"box":{"x":69,"y":286,"width":826,"height":12}},{"id":"0e7f7686-ad0b-4d46-bef6-e2698ffc14c2","block_type":"box","text":"persons of the Administrator or any of its affiliates.","page_number":113,"box":{"x":70,"y":302,"width":362,"height":11}},{"id":"92d59947-dcdf-4550-b4ea-103bb982bbdd","block_type":"box","text":"Duration and Termination of Administration Agreement.","page_number":113,"box":{"x":102,"y":324,"width":390,"height":12}},{"id":"1e3a4138-30a5-4e27-ab61-f822e76dadc4","block_type":"box","text":"Unless earlier terminated as described below, each","page_number":113,"box":{"x":499,"y":325,"width":364,"height":10}},{"id":"e0fd8143-17ac-4355-a289-d141f86d07bc","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":113,"box":{"x":68,"y":339,"width":832,"height":12}},{"id":"2801aa82-2276-4a30-b19b-6a0fb2d1c561","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":113,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"43391952-a3a9-4d60-be3a-050a63266f44","block_type":"box","text":"securities of such Fund and (b) by a majority of the Directors of the Fund who are not par ties to such contract or","page_number":113,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"394db53b-ae95-4c09-9b4d-b465758c0441","block_type":"box","text":"interested persons (as defined in the Investment Company Act) of any such par ty. Such contract is not assignable","page_number":113,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"c310411e-897d-4c57-a59d-91d956ae70eb","block_type":"box","text":"and may be terminated without penalty on written notice at the option of either par ty thereto or by the vote of the","page_number":113,"box":{"x":69,"y":400,"width":805,"height":11}},{"id":"2bfba055-3e37-47c7-9ffb-d0ab1a7ff196","block_type":"box","text":"shareholders of the Fund.","page_number":113,"box":{"x":69,"y":415,"width":181,"height":9}},{"id":"fdbdfe67-bafb-4fe5-8103-85818f13feb9","block_type":"box","text":"Transfer Agency Services.","page_number":113,"box":{"x":103,"y":438,"width":180,"height":11}},{"id":"9ad41a5c-9768-4e94-b3e4-10bf84e6d58a","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":113,"box":{"x":291,"y":438,"width":595,"height":11}},{"id":"17fb1dbe-ac49-4398-ab2c-77294e18048d","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":113,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"ff6575b8-e531-40ef-864d-c7496f4645af","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":113,"box":{"x":68,"y":468,"width":833,"height":11}},{"id":"df98d4be-a7ae-4e3d-97a7-1d3433ff8a52","block_type":"box","text":"with the Funds. Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":113,"box":{"x":68,"y":483,"width":792,"height":11}},{"id":"a65d156e-69a7-443f-b8d4-1b8e2408564e","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":113,"box":{"x":68,"y":498,"width":819,"height":11}},{"id":"b40ce2bb-949b-453a-8531-f18d18c2815d","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":113,"box":{"x":68,"y":513,"width":839,"height":12}},{"id":"8863f895-1fea-4705-94aa-cf2f70a05bb5","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":113,"box":{"x":70,"y":528,"width":831,"height":12}},{"id":"cf2adcd3-9a54-4550-bdbd-44d105b22567","block_type":"box","text":"for cer tain accounts that par ticipate in cer tain fee-based programs sponsored by the Manager or its affiliates. For","page_number":113,"box":{"x":68,"y":543,"width":813,"height":12}},{"id":"8e86506e-03ad-4d01-a9d1-0afe1811a5d3","block_type":"box","text":"purposes of each Transfer Agency Agreement, the term “account” includes a shareholder account maintained directly","page_number":113,"box":{"x":70,"y":559,"width":836,"height":11}},{"id":"cdc15533-bdd5-4db3-97ef-e0b05f04069f","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":113,"box":{"x":69,"y":574,"width":806,"height":11}},{"id":"27c7123c-80aa-4d5c-a5aa-84fffc335441","block_type":"box","text":"class on a recordkeeping system.","page_number":113,"box":{"x":69,"y":589,"width":238,"height":11}},{"id":"5be88b0b-4fc3-4f53-bb02-f946e69dd1bb","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":113,"box":{"x":102,"y":612,"width":338,"height":11}},{"id":"214adcb8-7ad1-4423-9a46-d9ac295d96c7","block_type":"box","text":"The Audit Committee of each Fund, the members of which are","page_number":113,"box":{"x":446,"y":612,"width":441,"height":10}},{"id":"cdd3de16-4671-4200-992e-4efafb743f12","block_type":"box","text":"non-interested Directors of the Fund, has selected an independent registered public accounting firm for that Fund that","page_number":113,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"dc183f1b-dd82-446e-bca2-0f3b39764720","block_type":"box","text":"audits the Fund’s financial statements. Please see the inside back cover page of your Fund’s Prospectus and Par t I","page_number":113,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"272eff37-03a3-4488-8d60-72626d8a3239","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":113,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"4ac44105-e309-4abf-8c29-bdc621c25ace","block_type":"box","text":"Custodian Services.","page_number":113,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"04b6aab8-3221-45bc-986c-96277a89b014","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":113,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"d39296d9-6f4b-43b1-8d4b-af8ec530f8d7","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":113,"box":{"x":70,"y":695,"width":820,"height":11}},{"id":"7b2dd4f8-c685-4aad-a14e-c7f8dbcf5598","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":113,"box":{"x":70,"y":710,"width":814,"height":11}},{"id":"b02d12aa-c40e-491b-8403-61acda21ee07","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":113,"box":{"x":68,"y":725,"width":802,"height":11}},{"id":"eced8718-75db-4e21-831d-81540f14f1bd","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with cer tain foreign","page_number":113,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"9a58dee8-59c4-46c3-8b42-7a2037d7204a","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":113,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"8242db19-6820-4fa6-aa6e-b52a75e6efe2","block_type":"box","text":"cer tain assets.","page_number":113,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"3e9abf46-8a4b-4db8-a661-585a238d6d2e","block_type":"box","text":"For cer tain Feeder Funds, the Custodian also acts as the custodian of the Master Por tfolio’s assets.","page_number":113,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"4d5ee09a-0d78-4806-b180-31a6d9e76b45","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. With respect to cer tain Funds, on a monthly","page_number":113,"box":{"x":102,"y":816,"width":803,"height":11}},{"id":"6fba9702-b609-4945-8390-fcf5709c1d4a","block_type":"box","text":"basis the Custodian nets the Fund’s daily positive and negative cash balances and calculates a credit (“custody","page_number":113,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"b868e01c-ca68-4f97-8b81-a2afad2f75a1","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":113,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"31d29c3b-d96e-4e71-bffe-b568f1152a7c","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":113,"box":{"x":69,"y":861,"width":826,"height":11}},{"id":"c075c84c-f5cc-458d-8f4a-9d8bdb184c04","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":113,"box":{"x":69,"y":876,"width":807,"height":11}},{"id":"09844bb7-186c-4042-86b7-d5315c7534d6","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":113,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"974958bd-9b99-40cc-884f-3dd7fc0beddf","block_type":"box","text":"Fund.","page_number":113,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"e5b164a6-15db-40c2-8758-d26299a5d8da","block_type":"box","text":"II-83","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"427f8faf-cd67-4398-a140-c0eb90dd58f8","block_type":"box","text":"NM0926U-5977728-113/232","page_number":113,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1e91a4bc-a02f-4a49-b356-24ff8af39886","block_type":"box","text":"Accounting Services.","page_number":114,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"e5a4d50a-3189-4d8f-83fa-cb54f5c2166b","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":114,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"0529e209-755e-4a63-a712-371c40b560ec","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides cer tain accounting and administrative services to the Fund. Each","page_number":114,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"c9767d06-a2b2-42d6-8ea8-3337ed395089","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":114,"box":{"x":70,"y":75,"width":797,"height":11}},{"id":"553d2232-f536-46d4-9bbd-2e644772cf4f","block_type":"box","text":"Master LLCs.","page_number":114,"box":{"x":70,"y":90,"width":91,"height":9}},{"id":"e396c126-d06d-494f-8c40-9ec01e9cc936","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":114,"box":{"x":102,"y":113,"width":771,"height":11}},{"id":"65d9ccca-06c2-488d-9384-c75ecc1fb156","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Par t I of each Fund’s SAI for information on the","page_number":114,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"d8be050e-24d2-45d9-afea-e5f9f38d6d62","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":114,"box":{"x":69,"y":143,"width":828,"height":11}},{"id":"be43854f-c7ee-4780-baf1-8fbc272fcbee","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":114,"box":{"x":69,"y":158,"width":386,"height":11}},{"id":"0e19ad24-f035-4f4d-aecd-dcef542a2c38","block_type":"box","text":"Distribution Expenses.","page_number":114,"box":{"x":102,"y":181,"width":158,"height":11}},{"id":"c38bfb65-3537-4356-b8b9-7f6aa264e992","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":114,"box":{"x":267,"y":181,"width":614,"height":11}},{"id":"3cb90611-4425-4a5e-99a0-a4437e525542","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). 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shareholders, prospective shareholders, consultants,","page_number":118,"box":{"x":69,"y":299,"width":818,"height":11}},{"id":"fa8ee593-50cb-4dda-93c3-a7adc70ddba1","block_type":"box","text":"and third-par ty data providers upon request, as soon as such data is available.","page_number":118,"box":{"x":69,"y":314,"width":562,"height":11}},{"id":"b0dae65f-f5f5-4924-a944-5c56641b31f3","block_type":"box","text":"Contact Information.","page_number":118,"box":{"x":102,"y":337,"width":144,"height":9}},{"id":"242e5a6f-0695-4e57-9bdd-a1732593bf37","block_type":"box","text":"For information about por tfolio holdings and characteristics, BlackRock fund shareholders","page_number":118,"box":{"x":253,"y":337,"width":639,"height":11}},{"id":"57f6c964-5201-43da-a4e1-a5b4d085526d","block_type":"box","text":"and prospective investors should call the number set out on the back cover of the Prospectus.","page_number":118,"box":{"x":69,"y":352,"width":672,"height":11}},{"id":"2a06e415-be75-49c4-b2d4-a1f08e40231f","block_type":"box","text":"Compensation.","page_number":118,"box":{"x":102,"y":375,"width":105,"height":11}},{"id":"f62754da-c42e-4c03-8469-852df7e89944","block_type":"box","text":"Neither a Fund, a service provider nor any of their affiliated persons (as that term is defined in","page_number":118,"box":{"x":215,"y":375,"width":672,"height":11}},{"id":"226122b7-d71b-47c9-b2b5-924762dd5d9c","block_type":"box","text":"the Investment Company Act) shall receive compensation in any form in connection with the disclosure of information","page_number":118,"box":{"x":68,"y":390,"width":837,"height":11}},{"id":"6dd353c7-f47a-4c41-bff4-7af9d5cbfb1a","block_type":"box","text":"about such Fund’s Por tfolio Holdings or Por tfolio 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BlackRock, its subsidiaries and their","page_number":119,"box":{"x":102,"y":339,"width":731,"height":12}},{"id":"abe7819c-d82d-4f99-8cb0-0291dfacea29","block_type":"box","text":"respective directors, officers and employees, including the business units or entities and personnel who may be","page_number":119,"box":{"x":69,"y":355,"width":799,"height":11}},{"id":"88b32711-7f8f-49c9-b098-3d4f0e786d2f","block_type":"box","text":"involved in the investment activities and business operations of a Fund, are engaged worldwide in businesses,","page_number":119,"box":{"x":70,"y":370,"width":786,"height":11}},{"id":"5212cd5b-a3e9-4958-8c86-de5e023ed9d7","block_type":"box","text":"including managing equities, fixed income securities, cash and alternative investments, and other financial services,","page_number":119,"box":{"x":70,"y":385,"width":829,"height":11}},{"id":"b6643af3-7411-4896-bbb6-cbc9b4097de2","block_type":"box","text":"and have interests other than that of managing the Funds. 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Such other funds or accounts may offer exposure to strategies that are identical or","page_number":119,"box":{"x":69,"y":536,"width":808,"height":11}},{"id":"44f021f8-2f7e-4a57-9b69-da1013a1f209","block_type":"box","text":"substantially similar to those of a Fund but with different fees and expenses, governance and structures, and/or","page_number":119,"box":{"x":69,"y":551,"width":803,"height":11}},{"id":"4159b016-173f-464b-a37e-5b5b2bbbf16a","block_type":"box","text":"services provided by BlackRock","page_number":119,"box":{"x":69,"y":566,"width":224,"height":11}},{"id":"f978e124-9636-475d-95ee-f65b1f060972","block_type":"box","text":".","page_number":119,"box":{"x":295,"y":574,"width":2,"height":1}},{"id":"50963eb6-1c54-42f6-b887-28b765bb9cb2","block_type":"box","text":"BlackRock is also a major par ticipant in the global currency, equities, swap and fixed","page_number":119,"box":{"x":304,"y":566,"width":603,"height":11}},{"id":"27599bbc-e527-436d-b6ae-475deaa02974","block_type":"box","text":"income markets, in each case, for the accounts of clients and, in some cases, on a proprietary basis. 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Such transactions, par ticularly in","page_number":119,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"99dc242a-978f-4608-8f23-6e926058e965","block_type":"box","text":"respect of most proprietary accounts or client accounts, will be executed independently of a Fund’s transactions and","page_number":119,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"7b695877-ccdf-4e5a-a558-57943bd2c328","block_type":"box","text":"thus at prices or rates that may be more or less favorable than those obtained by the Fund.","page_number":119,"box":{"x":68,"y":680,"width":652,"height":11}},{"id":"ca07a6cf-690f-4dd9-b73f-144fb61d6c86","block_type":"box","text":"In addition, the por tfolio holdings of cer tain BlackRock-advised investment vehicles managed in an identical or","page_number":119,"box":{"x":102,"y":702,"width":787,"height":12}},{"id":"53b2e3f2-8f50-465e-b25b-a0afe94f0152","block_type":"box","text":"substantially similar manner as cer tain Funds are made publicly available on a more timely basis than the applicable","page_number":119,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"0ce3dec3-a6a9-4106-8258-53f5e0e4fd62","block_type":"box","text":"Fund. In some cases, such por tfolio holdings are made publicly available on a daily basis. While not expected, it is","page_number":119,"box":{"x":70,"y":732,"width":816,"height":12}},{"id":"7a682b6d-d68b-4a2d-9516-6114e9cbedbe","block_type":"box","text":"possible that a recipient of por tfolio holdings information for such an investment vehicle could cause harm to a Fund","page_number":119,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"d442ff5b-e10a-4d25-ad8a-83f2e04edaaa","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":119,"box":{"x":68,"y":763,"width":813,"height":11}},{"id":"984d8c19-a60d-4624-a328-b56e57587737","block_type":"box","text":"based on the information received.","page_number":119,"box":{"x":69,"y":778,"width":247,"height":9}},{"id":"3fe255a2-9eb2-4401-97f4-bce9ca1b6220","block_type":"box","text":"When BlackRock seeks to purchase or sell the same assets for client accounts, including a Fund, the assets","page_number":119,"box":{"x":101,"y":801,"width":777,"height":11}},{"id":"0776d68d-80c5-43ed-997b-2ab526526359","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":119,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"3d3b04c1-3456-4b51-a70f-84d2a60ad31d","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":119,"box":{"x":69,"y":831,"width":835,"height":11}},{"id":"a593e96c-cb92-4232-8e02-d44a8482085c","block_type":"box","text":"Fund. In addition, transactions in investments by one or more other accounts managed by BlackRock may have the","page_number":119,"box":{"x":70,"y":846,"width":817,"height":11}},{"id":"03803c2a-2d08-4742-8238-454c2fb1c127","block_type":"box","text":"effect of diluting or otherwise disadvantaging the values, prices or investment strategies of a Fund, par ticularly, but","page_number":119,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"3fc50609-a2c3-4f9a-bdd3-1bc48ce89558","block_type":"box","text":"not limited to, with respect to small capitalization, emerging market or less liquid strategies. This may occur with","page_number":119,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"ca524acb-9f1e-4d10-a81b-11afa4956baf","block_type":"box","text":"respect to BlackRock-advised accounts when investment decisions regarding a Fund are based on research or other","page_number":119,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"e74018f5-214b-42f8-9741-11a271a5e5e1","block_type":"box","text":"information that is also used to suppor t decisions for other accounts. When BlackRock implements a por tfolio","page_number":119,"box":{"x":70,"y":906,"width":785,"height":11}},{"id":"f76434ce-d8dc-446f-8e3b-892db34ca865","block_type":"box","text":"II-89","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"83e1bf05-0700-4d62-8bec-285c83034a8e","block_type":"box","text":"NM0926U-5977728-119/232","page_number":119,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"209bfa73-6dd6-495d-9cb9-1c6448220476","block_type":"box","text":"decision or strategy on behalf of another account ahead of, or contemporaneously with, similar decisions or","page_number":120,"box":{"x":69,"y":45,"width":767,"height":11}},{"id":"0ae9b0c1-c35e-4865-b6b4-c00a6eeb8432","block_type":"box","text":"strategies for a Fund, market impact, liquidity constraints, or other factors could result in the Fund receiving less","page_number":120,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"8f97395b-052e-4d6b-a9fc-105ba79bcf57","block_type":"box","text":"favorable trading results and the costs of implementing such decisions or strategies could be increased or the Fund","page_number":120,"box":{"x":68,"y":75,"width":827,"height":11}},{"id":"0ac2be0c-59e8-474d-a59a-792a9d348feb","block_type":"box","text":"could otherwise be disadvantaged. BlackRock may, in cer tain cases, elect to implement internal policies and","page_number":120,"box":{"x":69,"y":90,"width":776,"height":11}},{"id":"e41dc1c7-92f2-49e1-9a9b-ea230afc3868","block_type":"box","text":"procedures designed to limit such consequences, which may cause a Fund to be unable to engage in cer tain","page_number":120,"box":{"x":70,"y":105,"width":774,"height":11}},{"id":"9d874aff-bb26-4e8e-bd70-73751bc6081a","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":120,"box":{"x":69,"y":120,"width":781,"height":12}},{"id":"e222c4a3-5d66-43ca-909b-1e6a08b8caa4","block_type":"box","text":"Conflicts may also arise because por tfolio decisions regarding a Fund may benefit other accounts managed by","page_number":120,"box":{"x":69,"y":135,"width":787,"height":12}},{"id":"afce61d0-6b83-4546-88b6-cbd012dafbb7","block_type":"box","text":"BlackRock. For example, the sale of a long position or establishment of a shor t position by a Fund may impair the","page_number":120,"box":{"x":70,"y":150,"width":809,"height":12}},{"id":"8378d3ba-e680-4ac6-ab09-f74e526b0717","block_type":"box","text":"price of the same security sold shor t by (and therefore benefit) BlackRock or its other accounts or funds, and the","page_number":120,"box":{"x":70,"y":166,"width":805,"height":11}},{"id":"64081d4c-7271-4a2a-bddc-2947d988a0b9","block_type":"box","text":"purchase of a security or covering of a shor t position in a security by a Fund may increase the price of the same","page_number":120,"box":{"x":70,"y":181,"width":797,"height":11}},{"id":"0fcda8eb-4d15-4bd6-b3d9-8b6a879c6c1e","block_type":"box","text":"security held by (and therefore benefit) BlackRock or its other accounts or funds.","page_number":120,"box":{"x":69,"y":196,"width":573,"height":11}},{"id":"0dd62dd1-c993-4cfc-aa3e-88a664fd5763","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":120,"box":{"x":102,"y":218,"width":797,"height":12}},{"id":"ecaff813-40c5-4d04-a61a-94280c9f55d8","block_type":"box","text":"extend credit to different par ts of the capital structure of a single issuer. BlackRock may pursue rights, provide","page_number":120,"box":{"x":69,"y":234,"width":791,"height":11}},{"id":"95242bc4-cb27-47e5-bd8a-6d15ddc541e3","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":120,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"edec6c30-a0b6-4c49-9785-a0387ca1f465","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":120,"box":{"x":69,"y":264,"width":812,"height":11}},{"id":"511d6ab8-133e-434a-9858-ce18f4d53723","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":120,"box":{"x":69,"y":279,"width":803,"height":11}},{"id":"d9572c7e-6b40-454b-8f8e-8e077db9f6e1","block_type":"box","text":"Funds) hold positions in multiple par ts of the capital structure of an issuer, BlackRock may not pursue cer tain","page_number":120,"box":{"x":70,"y":294,"width":783,"height":11}},{"id":"3ba80e00-be7d-410b-82e9-4dc4fb750827","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":120,"box":{"x":69,"y":309,"width":818,"height":11}},{"id":"ebd5b28a-7f72-418a-b66d-99aa0829b4ff","block_type":"box","text":"BlackRock addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":120,"box":{"x":70,"y":324,"width":777,"height":11}},{"id":"3df14c05-e6c4-4518-8d1f-697309db7b8f","block_type":"box","text":"par ticular situations. For example, BlackRock may determine to rely on information barriers between different","page_number":120,"box":{"x":70,"y":339,"width":780,"height":12}},{"id":"c24ad9fd-d8fe-45d1-99f6-9b69627f8ef8","block_type":"box","text":"business units or por tfolio management teams. BlackRock may also determine to rely on the actions of similarly","page_number":120,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"305e805f-55b2-4d35-b5a1-2e883609714a","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":120,"box":{"x":69,"y":370,"width":817,"height":11}},{"id":"65c3601d-43cf-4ffe-963a-3732b3f588ea","block_type":"box","text":"Funds.","page_number":120,"box":{"x":70,"y":385,"width":44,"height":9}},{"id":"fbaf16c4-f508-4c47-b7c4-c7590310060a","block_type":"box","text":"In addition, to the extent permitted by applicable law, cer tain Funds may invest their assets in other funds","page_number":120,"box":{"x":102,"y":407,"width":755,"height":12}},{"id":"9911009b-f8c9-414f-8807-2ca0d7b169eb","block_type":"box","text":"advised by BlackRock, including funds that are managed by one or more of the same por tfolio managers, which could","page_number":120,"box":{"x":69,"y":423,"width":836,"height":11}},{"id":"0407eb21-5427-4f04-b89d-8ca89f1ea82f","block_type":"box","text":"result in conflicts of interest relating to asset allocation, timing of Fund purchases and redemptions, and increased","page_number":120,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"70fe4f4e-3858-44b5-a4c5-3b5f6bda413a","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including por tfolio managers.","page_number":120,"box":{"x":69,"y":453,"width":679,"height":11}},{"id":"7b75ec49-e2b7-434a-a5a1-ad9064cd2358","block_type":"box","text":"Third par ties, including service providers to BlackRock or the Fund, may sponsor events (including, but not","page_number":120,"box":{"x":101,"y":476,"width":760,"height":11}},{"id":"8604a42b-2dad-4b41-b3ab-8669d5b9fc02","block_type":"box","text":"limited to, marketing and promotional activities and presentations, educational training programs and conferences)","page_number":120,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"43bb0eb4-6053-4d1a-8810-c4797a6e22dd","block_type":"box","text":"for registered representatives, other professionals and individual investors. There is a potential conflict of interest as","page_number":120,"box":{"x":68,"y":506,"width":836,"height":11}},{"id":"5c117f84-98da-4df6-9765-d95a0588d981","block_type":"box","text":"such sponsorships may defray the costs of such activities to BlackRock, and may provide an incentive to BlackRock","page_number":120,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"1331b3e8-6d72-413d-8b3d-d228a63ef6b4","block_type":"box","text":"to retain such third par ties to provide services to the Fund.","page_number":120,"box":{"x":68,"y":536,"width":421,"height":11}},{"id":"b0bc0e5e-cca2-4b80-911f-c4cfd100f5a9","block_type":"box","text":"In cer tain circumstances, BlackRock, on behalf of the Funds, may seek to buy from or sell securities to another","page_number":120,"box":{"x":102,"y":559,"width":794,"height":11}},{"id":"5b004aaf-c7b9-447e-9720-3d39b8a19410","block_type":"box","text":"fund or account advised by BlackRock. BlackRock may (but is not required to) effect purchases and sales between","page_number":120,"box":{"x":68,"y":574,"width":817,"height":11}},{"id":"d94d73f5-e1b6-4281-a86b-643232b45bdf","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":120,"box":{"x":70,"y":589,"width":797,"height":11}},{"id":"ee886c36-18fb-4d20-bae0-e68fe7e29976","block_type":"box","text":"based on each par ty’s investment objectives and guidelines, subject to applicable law and regulation. There may be","page_number":120,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"24085a80-0aac-4c21-b099-4b61b4ae9d9f","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":120,"box":{"x":70,"y":619,"width":780,"height":11}},{"id":"0a366dbd-35ef-4c74-aa49-b787280bd987","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":120,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"74d9b974-96e7-4781-9ba4-543336ddae9c","block_type":"box","text":"loyalties and responsibilities to the par ties in such transactions.","page_number":120,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"74e0f0cc-57ae-46ed-8953-187537d2d22a","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":120,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"d4a62adf-c59c-4bec-80fa-9e422d2c9be8","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":120,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"1ccdc379-d560-4876-be13-9b8517f96ff0","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":120,"box":{"x":70,"y":702,"width":827,"height":12}},{"id":"afe11b17-e773-41fe-9a99-ae1fe660ab4d","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":120,"box":{"x":70,"y":717,"width":828,"height":12}},{"id":"48d2b799-0d40-46ea-a3b4-c6ef0b00d05a","block_type":"box","text":"case.","page_number":120,"box":{"x":69,"y":735,"width":37,"height":7}},{"id":"c17c61dc-e8aa-4758-aec5-ecc85ddac45d","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":120,"box":{"x":101,"y":755,"width":791,"height":11}},{"id":"b78c6f6d-5e13-49bb-bdc9-4a4f3fda7d6a","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":120,"box":{"x":70,"y":771,"width":824,"height":11}},{"id":"6c5345bc-967a-4c33-8331-f380f62914a9","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":120,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"c1bf3073-a59d-4fa3-a813-947bc6ad22cc","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":120,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"39add382-8a9c-40b0-a501-d61673829cd5","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":120,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"50d22494-5013-4aed-8204-a45852379edf","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":120,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"a4308bb0-e867-429d-b3e0-60539c246fc0","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":120,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"e0628fce-9166-485f-a460-5b41adc8c179","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":120,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"809dc261-f66e-49b2-9aa2-05fd13a57918","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":120,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"53577eed-1757-46fc-bc14-fcf730d825b2","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend cer tain","page_number":120,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"d5ec3a1a-a2b5-4867-a0e9-744dc52b2c85","block_type":"box","text":"II-90","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"84b52298-4963-4038-8162-63f04221ae24","block_type":"box","text":"NM0926U-5977728-120/232","page_number":120,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1b01bc7c-875e-4fbb-8dac-7d0676ca15cc","block_type":"box","text":"types of transactions in cer tain securities or instruments with respect to which BlackRock is per forming services or","page_number":121,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"75eecdb5-26c9-46d2-8fee-d119cc4c090e","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":121,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"661a0215-0924-4e8d-9a9b-f9c5ce3c8b70","block_type":"box","text":"accounts and accounts under its management may limit the investment oppor tunities for a Fund in cer tain emerging","page_number":121,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"a68f397b-79d0-4d27-a295-20a9364a113a","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":121,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"50ca15e7-4af7-4e17-9634-33c6be351953","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":121,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"87a1894a-5ba8-4c64-9c4d-3471096897bc","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to cer tain fundamental analysis and","page_number":121,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"aaa64d49-ef3e-41fe-940d-a29531a671b7","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":121,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"b53603dd-8ef2-40fd-9e6a-bdf4f87ebd2f","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":121,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"ce895b02-a351-440d-80d3-5a3fad82bccc","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":121,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"c8405f80-a07a-4cfe-8674-dfe3f869fe4b","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":121,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"54863873-a7c6-4b23-a9c1-78ed064cf4ba","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":121,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"dafcd58c-8c78-40bd-b12a-a304b65da795","block_type":"box","text":"proprietary activities or por tfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":121,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"da3c67c0-2371-44cb-a34f-af895bdff64a","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":121,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"48f82013-fcf1-4b98-ba1e-f39e57cb7e9a","block_type":"box","text":"managing a Fund.","page_number":121,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"b5f101a6-155e-4e16-b494-f25c0d5c650e","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":121,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"8da8f44e-fca6-4fc0-b866-3b95abfb1d21","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":121,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"bb57229f-ce03-4d70-accc-5a0b132defbd","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":121,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"e4cc6133-23f1-46bb-93c3-77c71aecc34f","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":121,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"9088fddd-48e9-4591-a143-d65ce9a19745","block_type":"box","text":"por tfolios, as well as by BlackRock itself and by its advisory clients.","page_number":121,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"76a3670b-2ad1-4e41-8ea9-ee911b462a62","block_type":"box","text":"In addition, cer tain principals and cer tain employees of a Fund’s investment adviser are also principals or","page_number":121,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"f3c67628-11b4-44bb-b4e6-fe10204f3343","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":121,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"b36079b3-e54d-4021-bbec-0c8412c26dc5","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":121,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"515469fa-00e7-4ca1-949a-6c1f2dc7b165","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":121,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"b66951dc-4eb7-4640-bfa6-9f427ff88fe3","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":121,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"ee47c774-9cb2-4aaf-9c79-94a28a062463","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":121,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"7452b37d-3946-4a77-ad53-99ffd418cf0a","block_type":"box","text":"as the counterpar ty, principal or issuer. In such cases, such par ty’s interests in the transaction will be adverse to the","page_number":121,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"5562ba91-b43c-4129-9e9e-227954fdd598","block_type":"box","text":"interests of the Fund, and such par ty may have no incentive to assure that the Fund obtains the best possible prices","page_number":121,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"8a7445e4-10e7-4436-8687-820653ba9e12","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":121,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"47e87d09-976e-4d77-badf-785469fa62ac","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":121,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"f3696099-8441-4ca1-8e6c-2049e5fe40dd","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":121,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"07c27953-d458-437e-8674-bda7e3d30fd0","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the per formance of the Fund.","page_number":121,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"8bec2891-d995-4a81-8049-6738dca82f22","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the per formance of","page_number":121,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"a57743ea-8cc9-4898-9502-6ec1e9630cde","block_type":"box","text":"cer tain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":121,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"2568b975-7283-43b2-8bf9-b260e2da6878","block_type":"box","text":"underlying fixed-income indexes used by cer tain iShares ETFs, related to derivative fixed-income products that are","page_number":121,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"9cfbdab1-510c-4967-8089-bfff1dfeb0a6","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":121,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"2571959b-0c4e-42a1-b126-f1c1fb72c923","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":121,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"8fb61ce4-5425-4c5c-859d-8d4f57360e19","block_type":"box","text":"under management for BlackRock.","page_number":121,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"797c3c38-5538-4d26-8ee5-6071d2dd486b","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":121,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"711dba44-a6c1-4951-93e1-2606bff5ba1c","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":121,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"edc6cf56-636d-4806-9245-f512d45c09a9","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":121,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"e13d7c6e-b665-4b0a-a7e4-421c962f15fb","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":121,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"b48c4cb0-8a42-4e1a-84d2-e489bb1d1c0f","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":121,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"b1f48cf8-3b6a-4d8f-8d8b-4d64f8e857ec","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":121,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"18cc6c99-ccca-4635-a00c-bed4d0ff4290","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":121,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"cfa58807-916f-4657-a028-93ee6854ff05","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":121,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"e39e5a76-3486-49f9-87af-2f9f42c825fd","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":121,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"c1654326-1a67-483c-ac16-b62657d2de78","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":121,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"76458338-64bf-4c46-84da-40b8ac69651c","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":121,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"c6221e4b-ec9b-453e-b690-9c0c900a4247","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":121,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"da590110-5ed9-4f78-8817-0d50ccef671f","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":121,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"581fad3c-03f7-4f1d-ad66-62b344121df1","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":121,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"76eceac9-b46b-4c77-a402-594903bddc5c","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":121,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"630b5542-cf3b-49a4-bd19-488e52a20cce","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":121,"box":{"x":69,"y":891,"width":823,"height":12}},{"id":"f0d95832-6cc3-4c73-9a5b-c05cb54de138","block_type":"box","text":"II-91","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cfae8739-c1b6-429f-a44c-423e7d0377b1","block_type":"box","text":"NM0926U-5977728-121/232","page_number":121,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"567d6787-389a-4c14-a556-2df4dc8e43a2","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":122,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"ece05f29-eb93-4892-812a-ce8a6363f13d","block_type":"box","text":"any such fees or other amounts.","page_number":122,"box":{"x":69,"y":60,"width":230,"height":11}},{"id":"e7e419d9-b6cf-4bfb-b5c1-d3491f1ff648","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":122,"box":{"x":101,"y":83,"width":805,"height":11}},{"id":"c420989c-b3ff-46be-a276-f891e8b645c0","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":122,"box":{"x":70,"y":98,"width":768,"height":11}},{"id":"959e26b6-874a-4f02-8e55-584145623946","block_type":"box","text":"A Fund will be required to establish business relationships with its counterpar ties based on the Fund’s own","page_number":122,"box":{"x":101,"y":120,"width":766,"height":11}},{"id":"26d6c7d3-9859-442e-aab6-20224666443c","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":122,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"43ddb3c7-dde2-4620-a1d2-33b63d403509","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterpar ties will rely on the credit of","page_number":122,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"7a674b44-99fc-444d-bb13-3a9ae3ba47ff","block_type":"box","text":"BlackRock in evaluating the Fund’s creditwor thiness.","page_number":122,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"2a3516ec-993e-4d85-a213-7b9a63cd020b","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":122,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"ed31afc7-2dab-4310-87a0-27e05476d2b4","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":122,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"fb18f5f2-622f-4b38-b573-dbe015b5f984","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":122,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"fd7e156f-c920-47ad-853c-5b0626a3134b","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":122,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"77a23102-8374-42f0-b1f4-a046057b608f","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":122,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"c2710348-6f99-41a4-b215-d2aca7de695e","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend par ticular","page_number":122,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"6279681d-67c2-4e2b-9758-e64b9c25702d","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":122,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"c9c8c258-c92c-4ce4-8142-b3ead536416b","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":122,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"4fec90bc-4fc3-454b-a8b3-066694053e21","block_type":"box","text":"BlackRock. As described fur ther below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":122,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"81e93bc2-c294-4953-9349-978a572381ca","block_type":"box","text":"clients with equal lending oppor tunities over time in order to approximate pro rata allocation.","page_number":122,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"1f239f1d-7cf5-4b5f-bd1e-cbf48a50d771","block_type":"box","text":"As par t of its securities lending program, BlackRock indemnifies the Funds and cer tain other clients and/or","page_number":122,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"180afc4d-af89-4369-aefe-79d1e8dc8bfe","block_type":"box","text":"funds against a shor tfall in collateral in the event of borrower default. On a regular basis, BlackRock calculates the","page_number":122,"box":{"x":68,"y":362,"width":820,"height":11}},{"id":"f7d1d6f7-2806-47a7-aa47-999c34e1bb2d","block_type":"box","text":"potential dollar exposure of collateral shor tfall resulting from a borrower default (“shor tfall risk”) in the securities","page_number":122,"box":{"x":70,"y":377,"width":806,"height":12}},{"id":"2025520a-ad1a-488a-b89e-791d2762d5b5","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":122,"box":{"x":70,"y":393,"width":816,"height":11}},{"id":"13d4d9a0-e2cc-470d-b22a-92a5927ff565","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shor tfall values using","page_number":122,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"cc332970-d8ad-438e-a5f9-a9addc44f860","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":122,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"99358e39-0a6a-4652-9ffe-0e26660f8461","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":122,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"4707a977-35cb-4ab2-9754-09c3ffbc95e1","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":122,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"83387817-894a-4ba3-8265-f56e71d4ab59","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":122,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"18ba3c7c-b9cc-4672-ad07-d4e85e41b4a0","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending oppor tunities for cer tain loans (including by","page_number":122,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"f77eb975-572c-4be9-844f-9ff679f78f09","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":122,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"859810ca-b9a9-4a37-ae64-1f9c5ceceac6","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":122,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"409939ff-df51-447b-8082-6fbcde3aff32","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":122,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"4ef05139-98c2-456a-b34b-ea0c44671300","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":122,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"31e6eb26-0e64-4983-b949-6cedff3cad6c","block_type":"box","text":"eliminating the volume of lending oppor tunities for cer tain types of loans, loans in par ticular markets, loans of","page_number":122,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"3a80e715-0349-41d6-8b52-089116dc3bc4","block_type":"box","text":"par ticular securities or types of securities, or for loans overall. In addition, some borrowers may prefer cer tain","page_number":122,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"a75cacdc-aa5a-44fd-9cbb-da3a24772f81","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":122,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"e11122c7-fbc3-4df8-b454-b83d84f8bee8","block_type":"box","text":"regulation.","page_number":122,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"c07787b1-15cb-4dd1-8c74-9d7166a53d3c","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":122,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"be001fdf-d48c-4dfc-b443-d5f444725734","block_type":"box","text":"order to allocate a loan to a por tfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":122,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"8cdc2262-7ec4-4d3e-a8b1-e58eaeec4e16","block_type":"box","text":"various program limits (","page_number":122,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"afa21698-c3af-4d79-8098-0888192bd76e","block_type":"box","text":"i.e.","page_number":122,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"2da44956-545e-4abe-8c3b-df98a6779a0a","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending por tfolio must","page_number":122,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"8256f6b8-5eb3-4b28-992f-26a21eff6b86","block_type":"box","text":"hold the asset at the time a loan oppor tunity arrives; and (iii) the lending por tfolio must also have enough inventory,","page_number":122,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"054128ee-effa-419c-9070-ebe4cb56f0e6","block_type":"box","text":"either on its own or when aggregated with other por tfolios into one single market delivery, to satisfy the loan request.","page_number":122,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"04f90194-3494-4a4a-8b64-73b2f1cb31b1","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending oppor tunities for all por tfolios, independent of whether","page_number":122,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"eef07c39-35a9-4924-85bd-892549e577a7","block_type":"box","text":"BlackRock indemnifies the por tfolio. Equal oppor tunities for lending por tfolios does not guarantee equal outcomes.","page_number":122,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"dc950ca5-fb43-474c-b684-3eddd0424d4a","block_type":"box","text":"Specifically, shor t and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":122,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"a158cb72-61d1-4c81-8b90-2fb10920b223","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":122,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"115f0e56-5359-43c1-8385-c1488f3c7ad0","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":122,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"74751f89-becd-41b4-9173-7d2157903dc3","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":122,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"2b50289e-24f4-4f4e-a56e-af73dd8e9a5d","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if por tfolio","page_number":122,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"1e2fbd97-28f2-4a96-b8ee-eae8e05c0505","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":122,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"a3b21392-2daf-43a6-aeb9-987472096d46","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":122,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"bb14d2bc-f82e-4932-bd2b-b431ff2f37b3","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":122,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"b6e87947-080b-453a-b299-dd38eba71fa9","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":122,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"c7177c5b-17d5-4955-a715-117805584b36","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":122,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"6e279850-3b45-4e6a-b147-37ea2e9361bd","block_type":"box","text":"II-92","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7323847c-7ad1-4ef1-8a91-2aaa0fdefdfe","block_type":"box","text":"NM0926U-5977728-122/232","page_number":122,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"fdf67914-d278-4036-ac89-3bc29d968ec9","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under cer tain circumstances, the Funds will not be charged","page_number":123,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"9cd00c05-d0cd-4d2d-86ed-eeb4b4051722","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":123,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"b694cedf-9cff-4a41-8464-eb064628795c","block_type":"box","text":"As discussed in the section below entitled “Por tfolio Transactions and Brokerage—Transactions in Por tfolio","page_number":123,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"a620d3cc-c303-42b2-9b81-b7cd30d6433c","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":123,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"411be0e5-469e-409c-84af-a4d5a93470dd","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":123,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"6dd8800f-df56-4313-83a2-33ef63202f1f","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":123,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"9825dd37-886a-4b0d-8db3-1b00813b3679","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":123,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"a7db77a8-3308-4288-b9e6-28107a315bf8","block_type":"box","text":"sub-adviser to cer tain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":123,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"8e3b0011-45b5-430a-acfd-58206fbf3311","block_type":"box","text":"than through client commissions.","page_number":123,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"afedcf02-7171-4678-bd44-641419b63165","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":123,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"310d7efb-08b9-464e-8d25-1d0156175392","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":123,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"67d67922-bfed-489b-a8d9-5912f4c9b1a4","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":123,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"0bd05611-2756-41e0-9596-34c9e5058888","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":123,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"6700a6ae-c3a4-40f4-88d7-5ac8e1108659","block_type":"box","text":"services may include, to the extent permitted by law, research repor ts on companies, industries and securities;","page_number":123,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"181563c4-7099-43a6-b063-84454a2d0832","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":123,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"cac23ca2-2dc8-4ce2-812f-eed9ce057fb4","block_type":"box","text":"research-oriented software and other services and products.","page_number":123,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"4fcc39c3-414c-4457-bae0-23b8cfd4e288","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":123,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"9532c1f3-b99a-410b-bdad-ecffdaa1d3c0","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":123,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"b352670f-5c14-41d9-a1b7-1074266f678e","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":123,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"74fde065-0db3-4576-b804-e1b866bee661","block_type":"box","text":"dispropor tionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":123,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"a0069e92-5c98-4b17-acdf-d96533bc2432","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":123,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"e1359598-0921-4857-93d2-b22e3d61a068","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":123,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"84367580-2a8e-4853-af07-6b441fd8fa1a","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including dispropor tionate benefits, of economies of scale","page_number":123,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"15b505ad-3a7d-4c82-9d3c-8007b7ee381f","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":123,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"87437f06-10ee-4e8b-a72f-ee14eb69a4dc","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":123,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"95d8a1bf-1074-4294-af27-a83b523a7c16","block_type":"box","text":"and services itself.","page_number":123,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"2e5333ce-b296-4a6b-92d8-13cc2f65eda8","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":123,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"f508eb59-c7ad-463b-9d6c-40d082aad4ae","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":123,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"e06dd249-bc1c-40e5-afbd-cad5fab44715","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":123,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"32117f8b-f729-4fe5-8205-55a2ebb8a532","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":123,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"f9a92cd2-5b67-4f37-a8e0-19f78f3c77f1","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":123,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"9869213c-1b49-4048-9f9f-8f7ecae220bf","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a por tion of the commissions or","page_number":123,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"3656f4b6-781a-44d1-bed7-e1876329bcd4","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":123,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"95db1f18-c6ec-4ff9-9ae0-30a67eb6e057","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":123,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"0b1deb5e-0d77-4fb5-ab0a-c1c3125d4e84","block_type":"box","text":"BlackRock may utilize cer tain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":123,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"349cbd2f-5d7e-4174-9d27-d86b076ec5b6","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":123,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"a277ecc8-d353-4a69-8338-0f4b292f0703","block_type":"box","text":"securities transactions for cer tain types of securities. These ECNs may charge fees for their services, including","page_number":123,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"ef936d54-b8e4-4abf-85ba-4643c3aab0a8","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":123,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"a8328bd8-7030-4add-b802-ff5d2020c0af","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":123,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"13d790ce-04ce-4008-bd25-725645cb7d73","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":123,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"013227a0-0fe9-4046-b67f-7d97a4760683","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In cer tain circumstances, ECNs may offer volume","page_number":123,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"41ab131b-43da-4b9e-8363-25b82ace247d","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":123,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"8f5a7d09-82d1-40bd-9518-5a3ecc9bb505","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":123,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"e8e7592a-accc-4790-bbba-37c44a6979da","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":123,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"4dd23fc6-e754-4bcb-a7ef-a8f61fd16dc0","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third par ty brokers select MEMX as the","page_number":123,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"f75b958f-d34a-4c2b-9db7-90a01a32599d","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client por tfolios.","page_number":123,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"8a36e782-f206-48c2-be17-99254777687f","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":123,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"a3505c9f-1054-4cdf-a846-1ace259532f4","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":123,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"f1db71f6-06e6-4049-8fd6-147a1dfd8c10","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Never theless, notwithstanding","page_number":123,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"dfc9084f-2309-4447-8656-46577014eafa","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":123,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"0a0b309c-1242-428a-b2a2-4b5d116be976","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":123,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"d5faa43d-b3ee-4535-b086-2f70d3cedf8c","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":123,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"334e3f9c-e65b-4399-9720-b3e746b14938","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":123,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"6eef5a39-da48-409d-a632-f1ae98d7e58e","block_type":"box","text":"II-93","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5792d349-b768-43c5-b7d1-974d042fc01e","block_type":"box","text":"NM0926U-5977728-123/232","page_number":123,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3864455f-2011-4d80-9697-91c6e31ded3a","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":124,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"a5bf90ac-a6b4-4eff-b3cf-a1ca09d902c5","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":124,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"d3809116-9030-4a6e-91d7-229114afef2f","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":124,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"b8a8d570-b386-4da5-b59f-7b6a6d8ea586","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":124,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"2b80c345-bf62-4f17-8a8d-46ff31776852","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":124,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"3ba4f010-540c-4df2-9f82-d13fda1f4622","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":124,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"5a557e0a-ab67-4fdc-a8c4-0efd50ec98bd","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, por tfolio diversification and expense ratio. BlackRock seeks to","page_number":124,"box":{"x":69,"y":135,"width":831,"height":11}},{"id":"3212a0ad-a7de-45c1-9aee-ebeaf4ccf350","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":124,"box":{"x":69,"y":150,"width":834,"height":12}},{"id":"8b7581d5-b1b1-41f0-999b-da4989e5a6ee","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":124,"box":{"x":69,"y":166,"width":355,"height":11}},{"id":"4d62140f-4d7c-4352-b1d6-8828569614fc","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":124,"box":{"x":102,"y":188,"width":742,"height":12}},{"id":"aac6de5f-6fe9-4f01-aa74-1e6402afedcc","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":124,"box":{"x":70,"y":203,"width":838,"height":12}},{"id":"bd9c6eec-b5a8-4434-bdf9-414fab02d57b","block_type":"box","text":"structured notes) by entities for which BlackRock provides and is compensated for cash management services","page_number":124,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"7f530075-348a-4b2a-991c-0ee74fbabf83","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":124,"box":{"x":69,"y":234,"width":816,"height":11}},{"id":"13599ba9-f353-4703-9bc7-f23b8e3b238f","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":124,"box":{"x":69,"y":249,"width":806,"height":11}},{"id":"efecb73a-64cb-476e-9b2b-360b8753b45b","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":124,"box":{"x":68,"y":264,"width":822,"height":11}},{"id":"f615a341-4023-4e8c-bf0f-4252dec781df","block_type":"box","text":"and sales of securities. As indicated below, BlackRock may engage in transactions with companies in which","page_number":124,"box":{"x":69,"y":279,"width":766,"height":11}},{"id":"5afcf1f6-8115-42a7-852b-8414b3be8912","block_type":"box","text":"BlackRock-advised funds or other clients of BlackRock have an investment.","page_number":124,"box":{"x":70,"y":294,"width":533,"height":9}},{"id":"f7cf203f-4640-404b-af80-a3161fb97eeb","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting sales of the","page_number":124,"box":{"x":102,"y":317,"width":789,"height":11}},{"id":"a72f41db-7772-45e8-a231-63d58a28defa","block_type":"box","text":"Funds. With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":124,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"c22d25f6-cf78-4f71-8548-e5d670f38fcb","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":124,"box":{"x":69,"y":347,"width":813,"height":11}},{"id":"333a5ab1-1711-4bc4-8b4c-0078ab8fce6a","block_type":"box","text":"sales of cer tain funds or other products that might be provided or offered. BlackRock and its sales personnel may","page_number":124,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"ad43a7ef-d540-4017-b470-21cd65058a1c","block_type":"box","text":"directly or indirectly receive a por tion of the fees and commissions charged to the Funds or their shareholders.","page_number":124,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"c1ebe7c9-87ba-4be6-86ad-2c4ae6126e15","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":124,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"aa1a99dc-3b6f-460b-94a9-399696fdb2b2","block_type":"box","text":"management. Fees and commissions may also be higher than for other products or services, and the remuneration","page_number":124,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"af4e3c90-f442-409c-b75e-1ad655fe5512","block_type":"box","text":"and profitability to BlackRock and such personnel resulting from transactions on behalf of or management of the","page_number":124,"box":{"x":69,"y":423,"width":801,"height":11}},{"id":"1f2a4701-0b6c-463a-8339-df65d9db7fc4","block_type":"box","text":"Funds may be greater than the remuneration and profitability resulting from other funds or products.","page_number":124,"box":{"x":70,"y":438,"width":711,"height":11}},{"id":"c28519a2-ecf3-42f1-908c-4af3cf50ed04","block_type":"box","text":"BlackRock may provide valuation assistance to cer tain clients with respect to cer tain securities or other","page_number":124,"box":{"x":102,"y":461,"width":741,"height":11}},{"id":"bcd5d9f0-1b66-470c-9722-638da3069fd2","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the valuations for","page_number":124,"box":{"x":70,"y":475,"width":823,"height":12}},{"id":"40dcdc83-b14d-408b-ae70-d65c3fbf04a5","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":124,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"13ae3fd0-216c-485e-89b5-f4905190239a","block_type":"box","text":"broker-dealer quotes or other data sources unavailable to the Fund’s pricing vendors. While BlackRock will generally","page_number":124,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"99731667-bf88-4250-aa3b-db947d818abd","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":124,"box":{"x":69,"y":521,"width":830,"height":11}},{"id":"0337d571-3caf-4cb5-a981-dacc3dad5576","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":124,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"a755e1d6-be9b-459b-8f6d-9adb767be08e","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":124,"box":{"x":69,"y":551,"width":792,"height":11}},{"id":"c75d6fc4-e10c-4644-8e19-708af6087f3b","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":124,"box":{"x":101,"y":574,"width":784,"height":11}},{"id":"ea5d1e5b-f918-496d-992b-21da1ed387df","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":124,"box":{"x":69,"y":589,"width":837,"height":11}},{"id":"ec6d170e-d1c0-4c49-a249-95756203b144","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":124,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"90dc7bf9-1591-456f-8a51-1970a2f62a4b","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":124,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"4e9000ae-25b1-4890-89b1-21bfd569aaa2","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":124,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"45316748-38aa-44b3-80f5-4ad3d857806b","block_type":"box","text":"(the “Valuation Procedures”). 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While fair value determinations","page_number":124,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"be7eea5f-d7c2-4411-923c-d3faddbca9f3","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":124,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"be121b1c-71da-44f1-8a9e-913cbd15037d","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third par ty valuation models, fair value","page_number":124,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"98d50951-f511-4344-8cb6-59840db1c05f","block_type":"box","text":"represents only a good faith approximation of the value of an asset or liability. 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For example, when BlackRock is engaged to provide advisory or risk","page_number":125,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"7284762e-169a-4500-84fc-135b3049150e","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":125,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"49927d26-bf96-4d28-afd2-3a4d27499e77","block_type":"box","text":"of that company on behalf of a Fund, par ticularly where such services result in BlackRock obtaining material non","page_number":125,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"fa1e34b7-2510-47f3-8520-429bb6c24957","block_type":"box","text":"public information about the company (","page_number":125,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"67a89c8a-462b-4ccc-b1c8-00e3d2ebd30d","block_type":"box","text":"e.g.","page_number":125,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"c857bdbc-9744-427f-8815-f2494163eb1b","block_type":"box","text":", in connection with par ticipation in a creditors’ committee). 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Cer tain por tfolio management teams within BlackRock may","page_number":125,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"76e4d137-a77e-4078-8ce5-932dd7ae819a","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":125,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"a705a188-c575-4532-9e10-691f8609ae70","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ por tfolio management teams. 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As a result of information barriers, cer tain units of","page_number":125,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"8c7500b4-a8e0-481b-a2bf-4501c57ac816","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to cer tain information and personnel, including","page_number":125,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"72d57522-fde4-4074-b98b-09e2712c3da0","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":125,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"889d82d9-7443-441a-af4f-50288dd5c31e","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":125,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"71c96b8c-be5c-4531-85ff-32a9f2314d0d","block_type":"box","text":"with the benefit of information held by cer tain areas of BlackRock.","page_number":125,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"3779c36e-62ff-476a-b080-87fc70513827","block_type":"box","text":"BlackRock may determine to move cer tain personnel, businesses, or business units from one side of an","page_number":125,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"bfcf399f-14f9-48e7-80d3-1b5fffb03116","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":125,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"a050e5ff-e7ac-452a-a414-7b2820cf136c","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":125,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"665586c4-838f-44b4-a59b-ce76228c5ff5","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":125,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"159c1e48-bbde-459b-bb85-e9320b62fb6a","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":125,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"582f3a48-847b-4083-8987-c0efb4f80b41","block_type":"box","text":"II-95","page_number":125,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9b28349b-8341-44d2-9137-c8a08f6d9100","block_type":"box","text":"NM0926U-5977728-125/232","page_number":125,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8e9f1d0f-f9be-4d91-9ef0-d17f60bd4d39","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":126,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"3b2a4489-0498-4274-a6e9-5496d7ca3bda","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":126,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"5a26dfce-7cb7-4f53-8a5e-6a1927a3703a","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadver tent crossings of the barriers,","page_number":126,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"9f656f8b-48b7-49ce-a5cb-6e282bd06055","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":126,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"3d04a071-cc70-4178-8a0d-79f16c6d6f40","block_type":"box","text":"a barrier.","page_number":126,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"ec0bf88e-df0d-46b0-89e6-c610e93d3f05","block_type":"box","text":"Although the information barriers are intended to allow for independent por tfolio management decision-making","page_number":126,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"82ffc212-f57b-4f5d-a18d-3b5c2d413795","block_type":"box","text":"and proxy voting among cer tain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":126,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"2212cec7-2c7b-43ab-9451-410ef352c12c","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":126,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"22f8de5d-6ab9-483d-a5a7-86fe177fe24a","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":126,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"c1795381-c912-4680-b222-ea7ea4cba5c2","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":126,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"e77a7381-13e4-4162-af75-d9986a5a8c81","block_type":"box","text":"issuers. For example, in cer tain circumstances where a BlackRock client invests in securities issued by companies","page_number":126,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"a9eeb9bb-1692-4a86-9058-ce2801f91f0b","block_type":"box","text":"that operate in cer tain industries (","page_number":126,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"87e8188f-c632-4f70-96e2-88be5227bbe1","block_type":"box","text":"e.g.","page_number":126,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"6718b03f-3ab2-4e24-a433-8f524d068ae8","block_type":"box","text":", banking, insurance, and utilities) or in cer tain emerging or international","page_number":126,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"06580c85-6ea5-41ae-b8cb-db7e751238a3","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":126,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"c684bec2-93e0-4216-a361-a71327a690f7","block_type":"box","text":"e.g.","page_number":126,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"6b58c49d-6040-45a9-8bd2-76feac48dd6f","block_type":"box","text":", with mechanisms such as poison pills","page_number":126,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"7680a2f5-6d3c-45ce-b812-e76d78c6259f","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in cer tain futures and derivatives, there may be","page_number":126,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"50bcdbc1-3bb9-4552-ba77-cea74e348ce5","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":126,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"155ef836-59a0-46e9-9fad-39867a04e5c5","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":126,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"7556a121-925b-4614-9620-bd62ac0c5983","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":126,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"0ca7bc87-7293-4832-8096-5e90f755e7a2","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance repor ting, increased","page_number":126,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"8010a6df-204c-47a7-9aee-ddd61ef4d321","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of cer tain restrictions, BlackRock may also","page_number":126,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"3a43c9a4-49c8-42cd-84c2-bf6fcfd273eb","block_type":"box","text":"seek to make indirect investments (","page_number":126,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"18e35e2a-cea7-4442-9733-12157c7eee04","block_type":"box","text":"e.g.","page_number":126,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"51e6bbc1-f8c7-49fe-b39d-b61bd7fbdec6","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to cer tain","page_number":126,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"836be51c-941e-4340-b889-e4ce49bc52c5","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":126,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"5bae8d9a-613a-47c2-9814-29b47ce52c86","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":126,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"4f5e0288-b9ab-485f-ba66-577875dc39c7","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":126,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"0f51dfdd-b5e2-43e8-9426-a6e64e4e1222","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":126,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"0895976a-09d2-46bd-9177-3bb4a7060a86","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Cer tain clients or shareholders may have their","page_number":126,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"45a506bd-648c-4a38-88aa-b05d19c635a5","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":126,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"e648354c-e828-42b4-9dec-7137dc672f25","block_type":"box","text":"If cer tain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":126,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"68d4e457-b08f-4cf1-acc9-108cb24b6898","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":126,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"8b6e6708-41a0-4008-89e2-9b2655af4b16","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or under take business transactions, may be restricted by","page_number":126,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"6c3d9f17-6e59-4372-8fc4-d4befa089d9e","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":126,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"9ac7f5a2-06af-4b5f-b252-dca176cf37ad","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":126,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"4899216f-85e4-45b4-8a47-4a82204e36e0","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":126,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"a54e3f79-6d26-429e-a4d8-91df92deb98b","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":126,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"7df1c5dc-cb52-49a2-938f-a3dda5c497de","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":126,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"887e3cff-6b02-4fa0-84eb-e082566e2ffd","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":126,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"5e220907-a245-4e76-83ac-7bc56851fab5","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":126,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"8d2c5493-b3d0-42a0-89a8-6305880e6668","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":126,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"a72ee68c-4dcc-490e-9168-b0aba32e11a7","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":126,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"ac7c4bef-4c90-44d5-8021-724cda0faa63","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":126,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"3cbc9b3c-f8ca-40cf-8bd2-bef2a74b06e0","block_type":"box","text":"restrictions could negatively impact a client’s per formance or ability to meet its investment objective.","page_number":126,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"13757066-36cf-497a-995e-915b77696058","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":126,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"2ba31fb2-ba12-48f9-bbc2-fe0127ccf1bb","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":126,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"83c6e643-2107-4b00-8b8c-d9fc4b488fb4","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":126,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"e939e369-8e7d-4ee4-8df0-640277013b8e","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":126,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"f7ae3c37-5917-4768-aed3-41c9dfd53c4f","block_type":"box","text":"from taking cer tain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":126,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"71aac882-6f26-43ef-9a74-844d00c95b59","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":126,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"e724160e-fe36-46c9-ae42-6cb92b2bfc31","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":126,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"1b1ad82d-9f53-45d6-afd4-52787f09a990","block_type":"box","text":"BlackRock seeks to allocate limited investment oppor tunities equitably among clients, taking into consideration","page_number":126,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"3c92cd6b-92d0-4259-bea5-e94412bfbbeb","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt cer tain controls designed to prevent the","page_number":126,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"57258921-e0d4-49c5-be73-ff1c9dbfb704","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":126,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"53b64255-4a17-4037-bdce-5c0264f11521","block_type":"box","text":"cer tain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":126,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"d2430eb4-1013-4ad8-9a24-51071a5ef324","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":126,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"6343c04a-b262-4354-b743-36ce579b52bc","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":126,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"c1fc120b-7193-4b71-9bf3-692b643908a7","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":126,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"96a0c22d-353c-44d7-b982-7614e7c56db5","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":126,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"7fe37881-fd89-4c3a-8a92-587ebf59eb4d","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":126,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"8d5520ce-cba8-4767-9196-3fae2baba30d","block_type":"box","text":"II-96","page_number":126,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f52588bb-db66-4044-a0a1-9a96a391e5b0","block_type":"box","text":"NM0926U-5977728-126/232","page_number":126,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"0385a7e8-4094-4f2d-9e62-c0b7ce1d3420","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":127,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"0213a876-4675-45bf-820b-d903823d6c7d","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadver tently breach a limit or violate the corporate or","page_number":127,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"ca2040f6-e396-48e8-8c66-cb2415356bb8","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":127,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"f99e7dc0-48a9-4c61-92ee-06ec858659e5","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger repor ting requirements to governmental and","page_number":127,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"9366cf9d-0268-49be-9a61-f3668239fae0","block_type":"box","text":"regulatory authorities, and such repor ts may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":127,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"93fbce65-bdc9-410c-a4d0-79241941e460","block_type":"box","text":"strategy with respect to such security or asset.","page_number":127,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"0586d0b5-c37f-4bcb-8a71-53889262c7cc","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":127,"box":{"x":102,"y":151,"width":785,"height":11}},{"id":"a340104c-d9f8-4552-ae86-d5f930baace8","block_type":"box","text":"license and use such indices as par t of their investment strategy. Index based funds that seek to track the","page_number":127,"box":{"x":70,"y":166,"width":760,"height":11}},{"id":"f38fc1e7-b170-477c-9e1d-abc060876d6b","block_type":"box","text":"per formance of securities indices also may use the name of the index or index provider in the fund name. Index","page_number":127,"box":{"x":70,"y":181,"width":796,"height":11}},{"id":"accdd989-98ce-4932-bd8a-743d6f7a8d0e","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":127,"box":{"x":70,"y":196,"width":830,"height":11}},{"id":"9a3bb6ff-c042-4402-bb42-41188efc8762","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":127,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"36b6fe10-d6ca-4ae8-90de-c7023fdb8ba5","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third par ty index. BlackRock may","page_number":127,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"2705042f-6820-42c9-b1b2-4e06185fe7a0","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":127,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"704593bd-f12f-4930-b326-bcc592f7bbc1","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":127,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"5740a946-ec6d-4a27-b565-1524a7fe1193","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":127,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"a70243cf-8271-4b81-8275-5fc7ea09bdc8","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":127,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"7cf8b342-daa7-46d0-a2c5-ef6e8f9a048f","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-par ty service providers to a Fund (","page_number":127,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"d1492ce3-becc-4216-a0a4-d9eb3a3222ef","block_type":"box","text":"e.g.","page_number":127,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"5f2bdd5e-8fe4-451d-a47a-e0dca13e59cb","block_type":"box","text":", custodians,","page_number":127,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"68585bbd-9d15-428d-80f0-4cb2c46f3d06","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":127,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"66be6d3c-6ad6-442d-a855-bf2681ab7a4e","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":127,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"abb2e140-5412-4489-a399-8ed745613da0","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":127,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"f4b57a62-8c1c-47c2-ad95-9643e78b13c7","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":127,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"420b4b8d-3b79-4f1a-b767-1872639de87b","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":127,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"4d6e450f-f917-4654-9c5e-c9680b90db83","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in par t, to BlackRock, which could result","page_number":127,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"2c370002-a780-41b2-b762-132963140613","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":127,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"472e74de-f3cb-4bf3-b9ec-dea508d90126","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-par ty service providers to a Fund, or the","page_number":127,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"845acf4e-0dc4-400f-aa5d-6a9db15e2478","block_type":"box","text":"selection of such providers, par ticularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":127,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"448694f1-836a-4a76-b6de-3ac5c5051ac3","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":127,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"ecaa5eb4-7a09-443f-aa60-ab9574330d2e","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":127,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"bafee4d1-cb38-4dd4-928c-7aca220053f8","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":127,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"ae4ad368-6c30-40d0-a80c-316975a44216","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":127,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"86a6720a-c1df-4bff-b12e-c6a5b23f1fc1","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":127,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"77f644ed-56e1-4b8b-8692-7ea1938dc1da","block_type":"box","text":"BlackRock owns or has an ownership interest in cer tain trading, por tfolio management, operations and/or","page_number":127,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"351ef462-fd9e-4734-bcd1-82b361ae5770","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":127,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"c6e454a2-290b-49e0-9059-819032ba0c9d","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":127,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"bdcb06f2-f78c-4ec0-ba1c-ea2286d6f212","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":127,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"419010d1-5d21-40c5-81d8-6471c45da845","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":127,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"2fa90f6b-ff37-4285-acac-32a8869062c2","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":127,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"de006727-c4b7-4121-9fb7-76d775b9987e","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":127,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"b7a2c3a8-4a70-49a6-9868-7b4c36ad35dd","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":127,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"b1729e8d-b85f-4ffd-9076-6eeaad65de00","block_type":"box","text":"provider.","page_number":127,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"201253bc-804f-4df3-bb47-2dd4940b2e9b","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":127,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"1e09834b-ce7d-42b4-9a24-f0f991407bbe","block_type":"box","text":"arrangements for cer tain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":127,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"f53662a5-0637-4a38-bb8a-565d5e4f7d5a","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":127,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"9fc5a154-f19a-46e3-b5ed-341ac9ecd25a","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":127,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"93753fd7-a973-489f-9e6e-850cb0b30ed0","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":127,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"86ac581f-22c7-4352-ac8b-346efc79e81d","block_type":"box","text":"PURCHASE OF SHARES","page_number":127,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"da9b46b4-50ab-460b-a6b1-7da7bf2ace9d","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":127,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"ca86ba3f-daa2-4686-9aaf-93f78bfdcdcb","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":127,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"e329d4ef-791e-415c-910b-55ee4fbbffcd","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Shor t Obligations Fund are","page_number":127,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"9419adff-2b96-4041-8d5e-0bbe53995cee","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":127,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"232770ac-06e6-4687-8fde-076efefaf52c","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to cer tain investors purchasing shares of Funds","page_number":127,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"a1d18056-5c00-4b0a-a8e0-f3405421570c","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":127,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"737b27f6-662f-4be8-a419-cb3fd5e94ac8","block_type":"box","text":"II-97","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b4153567-ede4-4690-8cc0-f19591d5eebd","block_type":"box","text":"NM0926U-5977728-127/232","page_number":127,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b08cd21d-8215-4029-a1d1-6b50eaefe148","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to cer tain eligible investors without a sales charge.","page_number":128,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"881e8121-2113-4768-9179-3c7940d2fd05","block_type":"box","text":"Cer tain Funds offer Class R Shares, which are available only to cer tain employer-sponsored retirement plans and are","page_number":128,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"c9afefcd-5d35-4f4c-b71b-cacafc9169e9","block_type":"box","text":"sold without a sales charge. Cer tain Funds offer Class G Shares, which are available only to investors on eligible","page_number":128,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"eda470f7-a456-4f43-8e70-0b00a37543dd","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":128,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"bb7fd680-67a6-4360-801a-f1aef3a479d0","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, cer tain Funds offer Service","page_number":128,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"32d973b8-192f-4002-981c-17f19b864f79","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to cer tain eligible investors. Please see the","page_number":128,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"d651c11a-44f9-4381-a4ce-b74bc6ced51e","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":128,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"f370869e-b7cd-487f-82dc-3f4024a02978","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":128,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"2c729bf7-6713-4660-b58a-fd1315fe8a1f","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":128,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"20a48687-c7c4-4361-832f-039eb000934c","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":128,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"37e489e9-dbe9-4e3c-9415-46491bc0a630","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":128,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"1f09afaf-f09e-48c9-b86e-42e0fb6d5f28","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":128,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"902ce966-02ed-44c3-af57-7bdeca0c770e","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":128,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"caefbe56-dc28-4cb4-b70f-06d5d1c6cdac","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":128,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"64ea2014-8620-4ec3-a407-3057a67885b9","block_type":"box","text":"Target Date Funds that allocate a por tion of such purchase order to such affiliated underlying fund. As to purchase","page_number":128,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"339e94f4-c196-44a9-a4fa-44d7df8e41e9","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":128,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"c43e8ccb-f457-4718-8066-7ba32d2cb3ce","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":128,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"5288c070-bd7b-4c8b-94d2-304231598c12","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":128,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"e617aa2e-64fc-4f00-8859-74e9c324890b","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":128,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"80f5a874-6599-4041-8185-d88391ee3282","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":128,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"f185ec6c-6224-4969-bcac-49c18c86d898","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":128,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"1f95c365-4cec-410d-864f-4a502ff83238","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":128,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"15ab4551-3e4d-4cc0-a3c7-830ca2bdf007","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":128,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"da5900de-c291-49d4-a325-caae10167901","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":128,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"97470da5-8587-4334-a587-97873902ac6e","block_type":"box","text":"The minimum investment for the initial purchase of shares is set for th in the Prospectus for each Fund. The","page_number":128,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"c4fdbc17-b0db-423d-b862-bdc27feb2dce","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":128,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"23f89ad9-c420-4072-92c7-9c88be26bc34","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":128,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"3eaf4305-47a0-424f-9853-311cc1237b5e","block_type":"box","text":"investment is $25.","page_number":128,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"ff4d62a1-2a0a-408f-8cce-0076219b5a22","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":128,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"a9574857-1a52-4e1d-9220-662dea6ec72b","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for cer tain investors","page_number":128,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"909a6b69-caab-4891-b18c-1c9ad80d11c2","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":128,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"f270a1f0-5090-4f8f-ba97-20e0d7bfc2df","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":128,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"5a07c111-bf88-4bba-bcea-327fb6f61245","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":128,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"d5c72006-1c80-4623-a63e-d262de8a58cd","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":128,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"48824355-508d-4de2-a591-d96ffcacddf5","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":128,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"537fccaa-6553-4b6a-8da9-08adb954c0a3","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":128,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"23962b5c-260d-4458-8a0e-37dda82c0183","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":128,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"13140262-108d-490b-9af0-59defa39bf97","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":128,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"949e12af-7454-4a61-b73f-bf29d5f28854","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":128,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"71397d0f-b443-420b-9dfb-108178d962d0","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":128,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"568cc097-ae35-4e55-8f12-8f288d1d0733","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":128,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"12dccbcc-57cd-4960-aade-d8954f6efe79","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":128,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"0cfa318a-4576-4862-a2cf-edf5f3ac0687","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":128,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"9dc75ae5-0971-4b7c-a4ba-765824372aa6","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":128,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"48a92f19-e6a9-4f93-8927-249baef993e7","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":128,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"28b82ccc-ee34-4fb4-a0c4-fb066a2e9726","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":128,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"8d9b8490-27ab-4795-9649-4fabab40c2d1","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":128,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"6d334a9b-acb3-4899-95d7-60881b376f16","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":128,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"1c0b2816-79d2-456b-a10b-ddd5e599c1a9","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":128,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"b160157b-9e04-40a3-8cee-5caa9b9c45c8","block_type":"box","text":"group of individuals whose sole organizational nexus is that its par ticipants are credit cardholders of a company,","page_number":128,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"fc3c0874-e33f-4f10-aa2c-a52881f9c362","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":128,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"313641a9-cfe1-4b96-b30b-f0494f44f193","block_type":"box","text":"adviser.","page_number":128,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"6c8f29ee-dce5-433c-a575-74d58c558d23","block_type":"box","text":"With cer tain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":128,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"821564d5-d2a4-42a9-a3b7-6cfca81b2436","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":128,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"f6230c2c-9576-44ce-a7ef-e1d4a4e5091a","block_type":"box","text":"II-98","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d91b206f-85ff-4ff0-afd9-2724e3d16f95","block_type":"box","text":"NM0926U-5977728-128/232","page_number":128,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b9ff641f-9a56-482c-96f3-fa48dd3ad672","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":129,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"d28ff7a1-a9da-479f-a6c8-a399bf8447d3","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":129,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"b7344ca0-aff7-469c-8eb9-a8ac660b2a8e","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":129,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"a069839d-7c4d-4a4b-b290-b426e7951df4","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":129,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"1df6f40f-882e-4c61-9315-4da703fdbf74","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":129,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"711bc7b3-e63f-48e9-a1c4-da9d14be54cc","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":129,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"2b73d6be-5394-46fe-827b-8508417d2b9a","block_type":"box","text":"also be restricted from making additional investments.","page_number":129,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"3af65531-86cb-424f-bce1-1d968821ccef","block_type":"box","text":"In-Kind Purchases","page_number":129,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"1289e63b-79b5-4f8f-8db9-dcef820402b9","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":129,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"ac5d5ffe-8f59-4c29-9d95-5bdee0cb29fa","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":129,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"88014130-0af9-4dc6-bfb7-7c9e67b8f960","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":129,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"605e8473-0c6e-4fef-8c0c-cd01811b4ae7","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":129,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"37f6dfc7-1b47-4252-939f-ee41e3cfb10c","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":129,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"6b7f07a5-b507-4144-8e4a-4857dfd3c75e","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":129,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"2b86fd52-6600-45d4-8b4b-4a455afb631a","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":129,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"e37334cd-89b3-4ca3-be37-f334d0159dbe","block_type":"box","text":"securities. All dividends, interest, subscription or other rights per taining to such securities shall become the proper ty","page_number":129,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"bb1aff0c-bb53-49eb-a433-896ec95c113c","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":129,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"051161c7-e4a0-4b54-af58-60f61d72274c","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":129,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"65ce02a2-4617-4e8a-af2e-c18acd8c519a","block_type":"box","text":"has settled.","page_number":129,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"7a6bc734-9b72-47ba-bd1b-5d3ea17df79d","block_type":"box","text":"Institutional Shares","page_number":129,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"7abccac9-c870-41a1-ba80-ec35f3dab2f2","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only cer tain investors are eligible to","page_number":129,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"4bb170dc-e449-4292-b3e7-dec29a3ac4a5","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":129,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"002a8beb-842b-48e0-89db-9c6831217872","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":129,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"c98950ad-014d-46c7-bd1d-0ff8d7a2dbdf","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":129,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"677981b3-d059-4acb-b669-2d87a0fe2fa8","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":129,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"5342767a-2ecd-44b8-8556-ed8c54a3dbd9","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":129,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"d420249d-498c-4152-9799-83c64f6800d9","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":129,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"80ff4050-19e0-4dea-b184-a4f7d61502db","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":129,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"922f6ee0-bc1a-41a8-a418-99daa2884615","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":129,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"25917a0b-0589-4657-a84f-a4076f67a25a","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":129,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"6c045ae9-1622-4e67-a80e-f19434e47631","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":129,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"a3132f13-606d-495e-9459-a3504886fdef","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":129,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"0505289f-dd74-49af-9a33-adeca0798b2d","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":129,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"6948b147-fcbd-4061-b07c-0abc782ace59","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":129,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"64a2fe55-1625-416e-81fb-b4b6e254fcdd","block_type":"box","text":"these fees and conditions.","page_number":129,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"55da33fd-3a6c-44a9-b958-1d54f95f5166","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":129,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"36e73e89-19a3-48e8-ac4b-2370aac5405f","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":129,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"b9d1e20c-0a0f-477b-b716-3746957d3199","block_type":"box","text":"cer tain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":129,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"3ab783da-b5b4-43c5-ac69-400146d7c133","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":129,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"f3b040e7-3157-4c68-8b02-223a7dd611f6","block_type":"box","text":"incurred by the Fund.","page_number":129,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"dfacf8d8-416f-4f91-a528-969af1f3e7b6","block_type":"box","text":"Cer tain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":129,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"740a379c-8114-4e7f-8376-63321d06cc5a","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":129,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"76f0a640-e905-4a4a-b76e-0b8b52877d2b","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":129,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"fdc6b846-e51f-4d69-befc-ff601419bf18","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":129,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"7b51fa05-8df1-406a-8de5-997613b87ff0","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":129,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"0c70ce31-cb62-4566-8e55-44185ff22c78","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":129,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"6c389d20-673d-401d-a69e-d9aa3ff1704c","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":129,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"dfe42f45-802b-4b8f-a582-c6c7ea47426e","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":129,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"737885aa-4204-41cc-b2fc-8ca0336b98a0","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":129,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"515882f8-8bd0-4c42-9207-8394226d74f8","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":129,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"e8db9858-3e30-434d-8450-e293d61e3b2c","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":129,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"905aadec-9263-4dec-b391-8bf9d8956f73","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":129,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"d34295c7-9528-4e8c-ac54-fa55baf0e266","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":129,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"c64c1fd3-db84-4291-b4a4-10d21cf8751a","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":129,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"2da31c67-c982-4aa4-bd89-a79069c80b28","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":129,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"dcab5a59-86ba-4112-9322-caf923695e68","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":129,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"9b17d927-e9f4-41d8-a438-839cedf2c56a","block_type":"box","text":"II-99","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d01b6a19-9aa3-48fd-9a04-c7ec7d8ef20b","block_type":"box","text":"NM0926U-5977728-129/232","page_number":129,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"61f6c123-53f3-48f7-9caf-d27fc643076a","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":130,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"f87fefc8-04c0-4fe5-864c-d44a401b9299","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":130,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"3b2d7bf4-5409-47d6-8e11-15570c196b00","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":130,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"5add4e69-26c0-49dd-95b4-b40072d447b8","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":130,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"a70e64a0-cdcb-4f05-8acb-fd45fc0a2a49","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":130,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"274102d1-db3a-4b40-905d-e59f1d9c6ad3","block_type":"box","text":"minimum initial investment of $1,000; trust depar tment clients of Bank of America, N.A. and its affiliates for whom","page_number":130,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"6ba839fa-bcb1-4e27-8386-5724c98d7c65","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding par ticipant directed employee benefit plans), (ii) otherwise have","page_number":130,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"4d1823b4-85ba-43d0-b962-8c85802f1fee","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of cer tain BofA Corp.","page_number":130,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"c5a5d9ba-2f7b-4f94-8719-74b9b0985382","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":130,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"4f5205ed-61c7-4e86-aef5-ca503cc3873d","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":130,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"4e8a53a1-b209-4c1d-9121-be6580dec791","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":130,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"ec9e7317-6944-49d7-9985-34a17bd390db","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":130,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"49c44225-89a5-4013-938e-133df13d1d9a","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":130,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"db8a7c5d-4a1b-4550-97fd-a390e96110b4","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by vir tue of the familiarity of these persons","page_number":130,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"016f7c3c-33e2-4d50-a735-7883259c4303","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":130,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"e95d14de-cb27-432b-9dc4-a47ae58ce770","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":130,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"fefcd7d3-5c80-4a28-a088-8c774d5cd054","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":130,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"26799b98-ee27-4cc6-bf49-8c6c4a007bd4","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":130,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"67ced91f-9d7e-43c1-9dd9-e20550194794","block_type":"box","text":"Shares are offered only (i) for purchase by cer tain employer-sponsored retirement plans and fee-based programs that","page_number":130,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"1ce65953-8f5f-463b-88eb-fe92e3ea769a","block_type":"box","text":"have been previously approved by cer tain Funds, and (ii) to cer tain investors who currently hold Investor A1 Shares","page_number":130,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"096a057d-201d-4ded-a3a4-8f8d8ce387af","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":130,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"3b7d2a25-52f1-43c3-83f3-c959738ebbc6","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":130,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"b9f3a7d4-d3ee-4a5c-8b77-0d535d9e4d7e","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":130,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"057708ec-b6e5-44d3-b2ef-5c98bdbcf2ef","block_type":"box","text":"BlackRock Shor t Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":130,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"eed7d5ff-079f-4c95-93aa-8df7efffa0a5","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":130,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"7993a92b-1f59-46d2-9345-9aee50da57d4","block_type":"box","text":"par ticularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":130,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"7fff4837-860c-433d-89ce-2fd1aaeced6e","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":130,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"1b2b7a4c-f215-4d57-95d1-8e83af57c5ae","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":130,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"4b224c06-c0d8-4fc7-b3d2-b94d2decdb63","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":130,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"ef00127f-98f3-4588-9dfc-e9fd50f088e3","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":130,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"36a2f539-3836-47d3-96d2-942198e604e4","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":130,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"d7f8df9f-056b-4d57-9592-a7b5e671039e","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":130,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"ceb6412c-8a1c-40b4-87f1-5d647056952b","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":130,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"645b8e48-d181-4d9d-81f8-6a7ffaaeaf8a","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":130,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"a3c92406-dba9-444a-a8a2-ea9202d21d3b","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":130,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"5691f127-31ad-44b9-a430-291335a1dcb3","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":130,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"a1104041-ec5f-46d5-b337-a94e1f6a1d63","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":130,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"73c6c6fd-5858-4a90-9618-be9a52c74143","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":130,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"2eb6ece0-b0f8-4fe6-9904-207cebdc0549","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":130,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"a34ffcf2-d8d9-4fd5-8671-b98f0cf897b1","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":130,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"1775bb31-ecf6-4f1b-afa4-c48924bdb2d8","block_type":"box","text":"periods indicated.","page_number":130,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"6d3c6097-00da-4976-a0ea-fc9b8ff6e148","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":130,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"77304b9c-a216-4321-ab5b-e0c994851576","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":130,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"943016d7-2d46-4c95-814b-d00e7b714ba8","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":130,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"ef7bb61c-23a5-4b61-8d75-ed87f16fbbfd","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":130,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"e58cae09-e897-4de8-852e-051625bf774b","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":130,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"54c0a31a-b2a3-4039-86f8-1f14d7f42ccc","block_type":"box","text":"Cer tain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":130,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"c4b8380b-f730-43ae-a594-d463fddcad57","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":130,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"2bd96495-6b61-4fb3-8a84-7f8b195577c3","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":130,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"edbb1f67-93ba-4331-b6d8-76dc70f5570b","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":130,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"9b590e1a-08ea-4bc4-b29e-0ebeec56455a","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":130,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"16614cf9-4a72-4f56-b6fb-a7c91cfbf396","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":130,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"fca984ec-a4ee-467a-a293-1dff4f362796","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":130,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"48560aa3-d8a8-4e84-a6f2-d85a91b925f9","block_type":"box","text":"II-100","page_number":130,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0597d435-d7a8-4bda-adce-f8aa6d776eef","block_type":"box","text":"NM0926U-5977728-130/232","page_number":130,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a3ff4fe5-1568-4660-9bd6-48377f6b3b1a","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":131,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"fc63ef16-4e0c-4c52-a797-232662ed669c","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":131,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"99d806a2-1a73-4efe-b5a5-a749d33df67d","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":131,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"f308aed6-06d7-414a-9f8f-610307397811","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":131,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"ac8986cf-3e5c-4a8b-b15b-58e328f60b0e","block_type":"box","text":"Reduced Initial Sales Charges","page_number":131,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"df93bbea-9668-428c-b149-1480e284ffec","block_type":"box","text":"Cer tain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":131,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"d7f7d551-0b2e-419a-ad27-c5c5129a4287","block_type":"box","text":"and/or the reduced sales effor ts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":131,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"c56a29ce-fa73-40ce-bf48-69b1dc000468","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":131,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"56ad6bf7-701e-42aa-be62-695361007520","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":131,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"9483c2c6-5062-4611-9bf4-30b50ade09ca","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":131,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"d38e30d7-bd68-4c2d-a863-1eeecf6f92c2","block_type":"box","text":"requirements of the new share class. Cer tain sales load reductions and waivers may be available to customers of","page_number":131,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"a9ad1b4a-74d5-4ac6-99c5-9a9308eedda2","block_type":"box","text":"cer tain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":131,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"0205af37-e0ee-4551-a526-13a6452999c7","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":131,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"c775c0a3-ce8d-4e34-841d-d1ad97d52e36","block_type":"box","text":"Reinvested Dividends.","page_number":131,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"7ea4b28b-04dd-4eb9-8f09-9d12a9d46fdd","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":131,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"b7b023f6-f537-4773-a72f-8f3cdeea005e","block_type":"box","text":"reinvestment of dividends.","page_number":131,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"f0232f23-a899-4cd1-88d9-7c031991bf85","block_type":"box","text":"Right of Accumulation.","page_number":131,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"fce943b8-1b81-4744-98fe-3962d88bb02b","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":131,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"a7fa0e4a-ee10-420f-9f16-d6ee09fbdb5c","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":131,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"ac74a93d-d405-46ca-9ba4-1de1fca69430","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":131,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"cdf6a1fc-6327-41cc-8ad6-d87614f59670","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":131,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"c1e9505b-d9ab-4507-851c-ac6eb22bee49","block_type":"box","text":"existing shares of cer tain unlisted closed-end management investment companies sponsored and advised by","page_number":131,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"f6221a77-c069-48d1-85c1-b07c59dc8a8a","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":131,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"bfa04b9f-9c2a-4255-8ff1-4a286583d81c","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":131,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"c08a1c47-3200-4fd1-9e82-7e6a947c015c","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":131,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"4dad7b92-aab5-495f-9a30-a26c74a054cf","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":131,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"4d94cba7-65eb-466d-a516-5775a65649de","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must aler t BlackRock to the existence of","page_number":131,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"273b811a-9e65-4db0-9424-a1fd588330a0","block_type":"box","text":"any previously purchased shares. Cer tain funds employ a “passive” management approach and attempt to match the","page_number":131,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"e05be4ed-3ac1-44e4-81d7-3583790c5dcc","block_type":"box","text":"per formance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":131,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"462a6034-3e9c-4521-99f1-fdeda707b8b0","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Shor t Obligations Fund generally are not subject to a sales","page_number":131,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"58acae48-0a9c-4144-8971-50d9db4941a6","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":131,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"46826e78-3163-4d98-9394-9db5a5a03c83","block_type":"box","text":"in the Index Funds and BlackRock Shor t Obligations Fund may be combined with the amount of an investor’s current","page_number":131,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"f5203aec-dbd1-426d-bf16-317722e0cce3","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":131,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"57233ec1-efcf-4834-ba92-b5cace4a196b","block_type":"box","text":"Letter of Intent.","page_number":131,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"4060f964-3459-4b7f-8c74-2dae7028d853","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":131,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"e2bde338-92c3-4a3f-b3a7-a09092c2cb66","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":131,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"c6f9f1cc-3391-43f3-914a-361cf6ae82de","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":131,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"249f7aa2-287e-4ef3-a261-aca97be3d0a8","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":131,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"8f694f2f-49b9-446c-9151-6ebf7672bf3e","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":131,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"e7020c3b-59c6-450b-91d9-4a73e9b8cadd","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":131,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"2f6496bc-a46d-4f61-8242-80b4ba2408a5","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":131,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"143914f7-4ad0-43ec-bfc7-632fcb8c4a39","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":131,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"ec3cf410-5771-4385-8303-05a9577eeee5","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":131,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"cda5215f-b403-47e8-bbbd-e4131bb724b5","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":131,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"bc758fec-1a4f-4e8b-b742-634edc44648c","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":131,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"f4b7336c-0113-4297-b353-493687059cac","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":131,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"6c9556e8-2067-438e-8407-267cc876f927","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":131,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"5a2418d0-304c-4e6f-8dad-6a47dafd116b","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":131,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"c12f6c34-276c-4b8f-825b-327e0f119e0e","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":131,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"b2ae2296-7ea2-4a8c-870c-18c5e0da6b73","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":131,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"e461cc02-c44c-480f-b68c-844e8ebc1f93","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":131,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"fde07772-b4f3-4c58-adc7-d6fc3615d43f","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":131,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"0fb41176-e063-4d8a-8879-9ad6462d90e1","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":131,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"d92dbcc7-ed1b-4a25-92ba-458820bba873","block_type":"box","text":"Placement Fees.","page_number":131,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"e20c30d3-7d16-4c39-8246-bdb99418031a","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":131,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"6af9aec2-0c85-45ba-8b02-991fc2b10766","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":131,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"7e942e8a-371a-4770-8067-8c11244d398f","block_type":"box","text":"II-101","page_number":131,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0f2ce487-560a-4523-b49d-342b8f252298","block_type":"box","text":"NM0926U-5977728-131/232","page_number":131,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4da37d09-e846-48fe-9351-999dd1d92d31","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":132,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"b95a9bfa-bbad-494b-98eb-5cf80ff4d3a3","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"377a8403-08b6-481e-96d1-085cf6cbd441","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":132,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"02b570d0-8c29-41d1-b861-922e4000cc8d","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"5a687d6a-37a3-4991-bc58-a5f58216ced6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"bbdffa70-c2c7-4592-ba65-3f0bc4b4e1c1","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"4f5ca8b8-0bd2-43c8-9877-2b7187ea7fd2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"2272870d-1e16-4e13-a72f-a7a05912bdf7","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":132,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"fee2a50e-858d-400d-84c0-394298f61c11","block_type":"box","text":"Por tfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares","page_number":132,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"11c298c9-a775-4df0-9420-0c8d83931a4b","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":132,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"278b4a8e-aba9-4894-b717-a623f48cc2df","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":132,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"fa79ab07-af25-484b-9315-e00f1161e429","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"e3907dad-3299-4e08-a922-aa458a941d57","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":132,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"bcc35e68-d588-4fc9-8fea-8059a50494e9","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"4c6682a9-e25d-481d-8152-5a0a265ea12f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"4500a6a7-50e4-4c90-a31e-7f128eb8e4bd","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"44ac4700-8438-4945-a37b-5dfd50bdb9c6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"67c67737-00cb-46b2-a020-f7336c5bf2b3","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":132,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"f7b9845d-fc79-4ed7-a687-fcffdc0d3c55","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Oppor tunities Fund of BlackRock Funds","page_number":132,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"d00b9763-cf0a-4477-b4cd-16b508ceb9b7","block_type":"box","text":"SM","page_number":132,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"965aba52-c075-49a4-8161-c8abf2cceef6","block_type":"box","text":",","page_number":132,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"acd99fd8-7e34-4f2d-9f8c-ec875657095d","block_type":"box","text":"BlackRock High Yield Por tfolio, BlackRock Core Bond Por tfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":132,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"1c11608b-f53d-47e2-a11f-af0da6668790","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":132,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"3176146c-395a-41b7-9772-8a9db0f6282a","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":132,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"1a0da77d-6926-4ee2-82be-cd42701672cb","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"ca2e7d8b-8f99-4168-b379-449c6e2b01d9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":132,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"db4f56e5-8a30-4da4-80d9-fd48800ae6d9","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"4a77d827-ea7d-4014-9d05-4bcb89b043df","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"cf9467e5-efcd-40d9-bd83-b841235b6f93","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"68f944cc-8a8c-4bf5-94d3-09e8568cf7fb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"0db90172-f4f9-4233-9dcf-696cd78b2220","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mor tgage-Backed Securities Fund and BlackRock Impact","page_number":132,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"8ece201b-ba85-42d4-97de-40780e3f8294","block_type":"box","text":"Mor tgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":132,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"ee635ff3-b15d-4f49-b8db-021a2506755e","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"02e69d91-937d-4f5f-90ed-f187b34002f3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"7e796528-4482-4e75-951d-946abac4d798","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"d21761fb-2fb1-4ea3-9041-f2c3989f98eb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"a3a39054-35ef-4f59-8b25-3e86638a156a","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"a20d416c-e4cb-46a8-a097-74c79a617fe2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":132,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"9fc6a959-66d4-41d5-9e14-8d253af5fad4","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":132,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"3f63fe16-c388-41b3-a2f8-4c5cb6685a49","block_type":"box","text":"may be up to the following amounts:","page_number":132,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"dcd015c2-dd98-447f-9c91-b2d43fe44a2e","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"6bc5b703-3be7-4d2e-92f1-a1094b7b6fab","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"f4ed6519-8ef1-4e26-8bc8-d3074143c3db","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"332bb548-192f-4f56-80dc-7df1305b33ba","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"f2848f3c-1460-4e58-b169-21223dcc204b","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"b115aa20-125a-40bc-8b93-b655123eb48b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":132,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"fdb9bb35-2f95-414e-a2c2-88dbae605535","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Por tfolio of BlackRock Funds V, the","page_number":132,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"3575dd8d-bf2a-4499-9451-5c1634a33141","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":132,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"8afb5cf1-6604-4095-b294-c50d636a748e","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"fac34b2b-f66e-4d27-a2d4-5a2396477ebc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":132,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"943b0821-4f51-4f98-886c-6fd6efc72d59","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"7e44cfc3-09bb-4916-9ebb-44f597ee9487","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":132,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"37172d7e-f92f-4363-9e18-f0dbb6dc5df5","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"9e1f7cd6-c2bd-4c4a-acae-b9662761648d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":132,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"b44cdf5a-7337-488e-8566-da2ddea9648d","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income","page_number":132,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"56d9fcd2-2fa8-404a-8621-2fccb327c43b","block_type":"box","text":"Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V, the","page_number":132,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"cd9f5fb9-5521-45a2-9eb5-da1e135b358d","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":132,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"082dd526-aa3c-42b0-b493-69ffa4f1a33c","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"0ea23e98-b05a-4fd5-aceb-b540f8f1d762","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":132,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"8d9b9df2-21b1-4397-ad19-a71bfebb573d","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"46bda82d-359f-45fe-9050-2fab8d95512c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"03660c51-0b4e-4d33-897b-1c2fb1187b1d","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"d2c9f4dd-010a-432b-b3be-ac023390fe64","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"0a40ab42-1213-463b-9509-58fadbe3e59b","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":132,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"b678ae77-3bb8-4a6e-acd3-04185c60e466","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":132,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"1f54903a-fb75-4ec7-b7d8-afcbf14e190c","block_type":"box","text":"$250,000 and above . . . .","page_number":132,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"f5b7ce89-d3ae-43a1-8dcd-3b93ec059a7c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"1f343407-d6a2-4206-987c-6d2898c5ce9d","block_type":"box","text":"II-102","page_number":132,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6f6be582-e413-4ddb-b3f0-0000c9b5aadc","block_type":"box","text":"NM0926U-5977728-132/232","page_number":132,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7eaf8097-e79d-47f0-aa8e-0d575f841283","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":133,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"2acb3c3e-8914-4691-9966-042f261ea152","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":133,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"37b0b762-d1cb-4d3f-811a-3394d8082084","block_type":"box","text":"the following amounts:","page_number":133,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"dec44bb6-e852-4292-8499-90495c89d980","block_type":"box","text":"$100,000 and above . . . .","page_number":133,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"f3c2a88e-c519-4b2d-a916-bf46f47bec7d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"4504cfae-8b37-4acb-89a6-5f167fc8567a","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":133,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"0e468c3a-e1ac-418a-9292-1f5c907a791f","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":133,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"e601a263-da3c-40dd-9fef-751a9113a3e1","block_type":"box","text":"$250,000 and above . . . .","page_number":133,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"8616a976-7f46-4b44-a328-003f39a0226b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"cb9e4267-8270-4a40-8b5a-7804b72da0fd","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal","page_number":133,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"bf3488a8-da52-4d12-a6d7-958f029896b7","block_type":"box","text":"Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust,","page_number":133,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"09067c7a-6e47-43b8-8b16-a735acfaa05a","block_type":"box","text":"BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":133,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"cf568631-29b6-4a62-ace1-f0cc59ce1ff5","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":133,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"fda2daf7-6a0f-4802-b835-6858f8249e69","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":133,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"c82be53f-8ec7-4d56-ae98-a86c98f30de0","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"34afb602-d73a-4f8d-810b-79dff597f550","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":133,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"f813a03f-806c-4050-8984-7efc58fba4fe","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"b30e33a5-edc0-4c92-b495-f13539c36f9e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"29c45342-2da0-4ebb-8150-b5d479c08a64","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"fdf018fd-40e4-4c3b-966b-51459c525420","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"00308ff5-f45a-430a-a547-55888c7201a8","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Por tfolio (for shares purchased on or after","page_number":133,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"7b15fa46-b783-407f-8e01-03c9e28f6ca8","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares purchased on or after July 1, 2020) of","page_number":133,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"cb01d880-828a-4e6f-935e-6e0e2533f170","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":133,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"c1557e72-0377-4341-9680-af4a29b97fc3","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":133,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"2efa5162-6985-4b6f-adb9-4230b637e454","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"513d6afa-aba8-4f93-a7b2-03b5e0bdc207","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":133,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"23307d27-97f3-4dcc-8485-e54d6891c651","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"50dbd65d-dae9-4722-878e-89a8aadfaa90","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"10fe77b7-3941-4f29-917b-8acd3630f7d2","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"50930ed6-bd4c-4810-a97b-0db4b01cb8d2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"8a07d271-029b-4cff-9fdf-fbcf9eb8e7ee","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":133,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"f62df369-9ad5-403c-b2e9-19d083c47d33","block_type":"box","text":"®","page_number":133,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"2037f3cc-5b5d-430f-b833-48bd7370fa38","block_type":"box","text":"Index 2030 Fund, BlackRock 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a","page_number":133,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"e239202c-bbb4-4eb4-93ac-c0776b7d19b5","block_type":"box","text":"II-103","page_number":133,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c889481d-6bb2-4411-9dd5-f6539f81876e","block_type":"box","text":"NM0926U-5977728-133/232","page_number":133,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"92b5862f-2f2c-4d43-bc20-6f98491d5c4f","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":134,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"48d53cb9-a0fd-4f4d-8002-d6aeafb97385","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":134,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"8ba4fd77-82f0-4e94-a4af-3a73d6b42817","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":134,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"8878a5ca-06b2-4a68-a342-7b8c58d92cc9","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":134,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"e87e0332-cfe6-4b80-9e60-71d4c817682b","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":134,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"f641286a-015e-423b-96b4-3431425eb767","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":134,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"21d428d2-7ad6-44b3-86d5-a9cf3c29973a","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":134,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"71c7841b-78ab-4647-9711-8ee0ece9455e","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":134,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"6d3d1554-28bb-487d-9cf2-0840fd6355dd","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":134,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"00f0fbb1-ccd1-4b08-b9be-e8af2e023bfd","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":134,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"ffd7637d-1f60-4d2c-867e-41bfcf9b3f8d","block_type":"box","text":"including: (a) officers, directors and par tners; (b) employees and retirees; (c) employees or registered representatives","page_number":134,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"51971040-5c47-4b59-a90b-5f6749753649","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":134,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"41447527-5dbf-4e34-afd9-8fa8ac305060","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":134,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"b63adc6c-7559-4d75-8034-c3885073a399","block_type":"box","text":"spouse or domestic par tner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":134,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"92054c6a-875a-4cdf-a4dd-ee19709a3cc6","block_type":"box","text":"plan for any of the persons set for th in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":134,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"60315f9f-64a3-4471-89f2-f0b4f3022df5","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":134,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"56f9606c-f122-4ce8-bf84-e4a8cc99ecb2","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":134,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"e3a2c106-1670-4915-8a8f-17a1e01abe35","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":134,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"0128d861-c7ca-4dc0-bfbf-9ec5d652cf1f","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":134,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"928a63c9-5708-4d90-af9e-ba39b6290747","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":134,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"e0f4307c-e6dc-43ae-a3fb-1001953c67f9","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":134,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"3b0451d3-91f7-4a05-89d6-9fc5e18c723f","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset","page_number":134,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"09044fac-596f-4a2e-9ffe-758637f3ecdb","block_type":"box","text":"Income Por tfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":134,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"7344ef65-85b7-4d99-bb04-2e98f5384310","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":134,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"d62a2835-edd2-4729-b361-ecca197e8d4b","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni","page_number":134,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"d781e4e3-a8b2-4cb2-a75f-5af7631ff937","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Oppor tunities Fund of BlackRock","page_number":134,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"a206f89e-8fb1-4882-9226-48cb2a65e3d5","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series","page_number":134,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"5fa2f3c5-1cf3-451b-be15-26d8f64e2fed","block_type":"box","text":"Trust, BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":134,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"8b4d032b-ebd3-47bf-a45a-634635d1ab77","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":134,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"c88a6b4f-794c-42bf-9490-4fbdadeb7203","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock","page_number":134,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"08d08fd2-be77-4bef-9833-5bb6ed95a010","block_type":"box","text":"Floating Rate Income Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of","page_number":134,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"66222ba6-f676-4178-a235-abe4049913f5","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":134,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"3eda2670-a682-4e48-8bd2-dc34a38e63eb","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":134,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"8d633020-5a62-490e-8d9d-5ae8f96a1109","block_type":"box","text":"shor ter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":134,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"ae6e13ef-cf9f-4ee9-8ceb-a15d51ee23b4","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to cer tain redemptions of Investor A Shares of the Index","page_number":134,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"2b2d6349-38a4-45f9-90fa-fd6c7307053d","block_type":"box","text":"Funds and BlackRock Shor t Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":134,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"60736213-1f3e-423f-a6d6-9f828bc041c7","block_type":"box","text":"por tfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":134,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"7e0ce44e-5191-4ca3-bb3c-c5c166062b3a","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Por tfolio”) as par t of an investment of $1,000,000 (lesser amounts may","page_number":134,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"3e43a26d-993d-43f4-ba20-5a686a6e5e95","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Por tfolio) or more. The Investor A Shares deferred sales","page_number":134,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"41ac80aa-515a-4377-a03e-2dbb583919e7","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":134,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"fde01276-6c7c-4885-a927-939c52080bf2","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Por tfolio (a shor ter holding period may apply depending","page_number":134,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"518e38e0-9fa5-41ca-b12a-bfce6c852309","block_type":"box","text":"on the Investor A Load-Waived BlackRock Por tfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":134,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"c87b691b-9f2c-465e-ae37-7e423f747081","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shor ter holding","page_number":134,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"dc9b4e8d-5121-4db8-8b32-708e7127faa4","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":134,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"ec33fc56-efab-4540-a76d-0b7990546b3e","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Shor t Obligations Fund).","page_number":134,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"dd1962d1-fecc-439d-b25d-5b833540c935","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":134,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"562a4d19-4efa-4c62-afa0-6a9359bdc375","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through cer tain employer-sponsored retirement plans","page_number":134,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"8b2c9fd9-9ea0-4fd3-bc08-3eb483bc34d3","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":134,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"5e8561eb-e3ff-4aa8-9e41-c74f4d1a16f6","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":134,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"92b70165-2ad7-4c2d-b769-a0b49db56499","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":134,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"5f6008f8-9eb0-4ad5-a451-642f68385ae3","block_type":"box","text":"cer tain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":134,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"38189627-20d2-498c-97bb-6d554945bbbf","block_type":"box","text":"shareholder’s death or, if later, the receipt of a cer tified probate settlement (including in connection with the","page_number":134,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"7bddd1b9-fdfe-41aa-9368-1cc3802ee32a","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":134,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"673018fa-de6d-4f85-b6f2-48db39cddb18","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":134,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"7fc45b34-4a8f-4304-b917-c80ffdbfe90a","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) cer tain redemptions made pursuant to the","page_number":134,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"6d33dbbc-2447-4ce1-b00e-38e789ba2992","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":134,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"23e0c2bf-fe83-4919-9137-9f4b2524b0c2","block_type":"box","text":"II-104","page_number":134,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cc2bb4cd-ecc7-44d9-96c2-25c713df47bf","block_type":"box","text":"NM0926U-5977728-134/232","page_number":134,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"84d4ad24-81a4-4efa-b8aa-51ba87ce6b64","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":135,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"5ae9f5eb-2d06-46a2-b246-6e71bc36641f","block_type":"box","text":"the absolute discretion of a Fund.","page_number":135,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"bf2c9d6c-3129-4e6d-8ea9-7de6cc5773dd","block_type":"box","text":"With respect to cer tain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":135,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"16e4984e-9bac-482a-8d00-c551cb2e2ebb","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":135,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"3d2762c2-20b0-42c3-877c-69c0b800b63c","block_type":"box","text":"BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset Income Por tfolio and BlackRock Managed Income","page_number":135,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"51a9e448-552a-4321-a8b6-a9d397f6c2b6","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":135,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"1481e921-378f-4efe-8dfc-01641f129732","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":135,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"3752a682-37b5-4ad6-a60f-1481044317ca","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":135,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"6cb40e8a-7be3-41fe-b23b-d3f2c727eae3","block_type":"box","text":"BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":135,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"76ba0037-6fc7-4d4c-a4e4-11d5d0f39a93","block_type":"box","text":"Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":135,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"7e4a6996-b890-471c-8edb-6467f7618278","block_type":"box","text":"Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":135,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"890a872a-ace4-4012-ae89-e45f4efdce6c","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":135,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"9b188b8c-a58e-422c-a668-09b8e32a600c","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income Por tfolio, BlackRock","page_number":135,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"8ae9a872-fc37-4cab-b23a-654ace6536e7","block_type":"box","text":"Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V) or more of Investor A or","page_number":135,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"3fe393a7-daed-46b4-93c5-013bcd88a346","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":135,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"42129b06-a648-4091-88a4-556dc79ed444","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":135,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"438a4833-e25d-45df-9109-7bbf02b6570d","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":135,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"c957e32d-e1a9-427f-8669-c8a7cae43fdd","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":135,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"2b5253ee-7718-42de-8c73-c1199e9f25a1","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":135,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"5e59f2d1-2a53-4503-be31-8581f96bcbed","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":135,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"ebabc20c-180a-48e0-8577-abbc9bad4e46","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":135,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"6e3c14a7-259b-4bdd-bc35-806383b811d7","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":135,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"005568a5-3117-4178-820f-c0af0e7be1d1","block_type":"box","text":"public or private investment company.","page_number":135,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"dfb62865-2803-4e24-a94c-6481d9515a24","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":135,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"61c7808d-64be-4c8a-97ae-e0d07fd0916c","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":135,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"18468716-27c9-47ef-94a7-048901817d01","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through cer tain financial advisers, selected securities dealers","page_number":135,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"94e481e4-0d22-4f65-8e1b-78bb800d7285","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":135,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"3bda64e2-a006-4625-9f5d-7d218d576b27","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":135,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"1c922ac4-a7fc-4bb2-894c-2aa22f6550dc","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncer tain","page_number":135,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"99a8d8b6-748e-424d-a7b8-ddff3171bb22","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":135,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"4b334622-3a36-4e16-ae1e-2e3291b3198a","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":135,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"908627de-d2c4-44f3-8988-3d47b9d9de4d","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":135,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"02edec23-7568-47c5-be4c-042ecd3a783d","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":135,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"35795a71-c439-4c71-b48b-b4de3a14fdce","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":135,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"dee34a5f-fe1a-4687-a242-96c9448faafa","block_type":"box","text":"intermediary associated with the account.","page_number":135,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"a14cc541-e3a1-4efd-a875-a37b4ad2b13c","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":135,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"1f2d95c8-f21e-4b03-8ab3-8feb7d5209cd","block_type":"box","text":"The deferred sales charge alternatives may be par ticularly appealing to investors who do not qualify for the","page_number":135,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"e8dab78d-f91c-49a4-9a3b-3f32f8694018","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":135,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"e316b8b2-0fa3-41a9-acfc-322a9730aba7","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":135,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"ef80f8a8-fc15-4f33-8339-3e6d9d8c064a","block_type":"box","text":"CDSC shares.","page_number":135,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"e5caabe2-0556-499e-adb8-cc698b2a5355","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":135,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"a4255146-c7e7-49d2-bfaa-6b665f18edd2","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":135,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"c7d03430-9f28-49ba-99cb-0e702fff9628","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":135,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"c8e80758-8f99-4026-aba2-9204b9116d0a","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":135,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"a799a1ec-8d46-4e63-b00f-5e90fb7757d6","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":135,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"625782e8-94ff-42c2-a185-95a050ef9f52","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":135,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"07c3cacd-a072-426d-8b4b-99716d091172","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":135,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"dbdc4c6c-069a-42ca-8a2c-5ceca6d5e1eb","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":135,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"18d10516-db58-4b05-add8-5c9f78199829","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":135,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"5c7f82b2-95a9-4b73-bd6d-8aef853ef530","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":135,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"10a3d8aa-c7d4-4668-8603-b728d8ce3eac","block_type":"box","text":"connection with sales of Investor C Shares to cer tain employer-sponsored retirement plans sponsored by the Fund,","page_number":135,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"19492ca3-dbc3-4041-a5a4-f0b6490a4051","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":135,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"08b3fc42-d3d0-4fd6-8241-6c4887d6406a","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":135,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"1487f812-e765-42cd-b36e-cf7c88aa8644","block_type":"box","text":"II-105","page_number":135,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6b568f00-59e9-4bc5-bac4-ceb3df1f90b6","block_type":"box","text":"NM0926U-5977728-135/232","page_number":135,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4f1a4534-9953-423f-8fb8-eaef14f3048b","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":136,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"d17927b6-71e4-47ee-9a24-a9876dc40589","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":136,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"52c1d83b-6ccb-4b2b-89ce-608de5e340c1","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":136,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"f78e0ba8-65cc-4048-a542-5525d5000d89","block_type":"box","text":"Investor C Shares held for approximately eight years will be conver ted into Investor A Shares, as set for th in each","page_number":136,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"a8a16355-5249-4fa4-9a82-474dd30178cb","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":136,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"5368b59e-0b61-4386-b73b-a02eff902428","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted to","page_number":136,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"5a5b3bda-2894-430c-ad9f-641580fc90e9","block_type":"box","text":"Investor A Shares.","page_number":136,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"9074b5b4-cc67-44fc-8677-aead54fac4bc","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":136,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"dba2f587-3d3f-4a28-ab23-4d6e1ab3ded0","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":136,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"a07d273c-51f3-4972-b4cf-51d5a9161d0c","block_type":"box","text":"of each Fund will conver t automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":136,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"77b28003-9a56-4116-a3e7-8a57f8f64efc","block_type":"box","text":"Cer tain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":136,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"230fc01f-207d-4c6e-8194-efb10f8d7ac2","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":136,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"fd2c50b6-16ce-45f1-9d82-f74b5ce83c61","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":136,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"d35dbcf0-1222-4375-9357-c9ca67eb1032","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":136,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"da9dc150-7541-447d-b570-66697a285ce6","block_type":"box","text":"cer tain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":136,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"5af45044-f344-4c9f-9c25-74fbf43a1af4","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":136,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"02bb7797-bdd8-4a25-acb9-4d42466cab06","block_type":"box","text":"Shares held as of the Effective Date will automatically conver t to Investor A Shares approximately eight years after","page_number":136,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"1b8bd709-0555-4d0e-a6d6-38b128fa402f","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":136,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"84441155-ea6b-4407-8d70-7a7326b20896","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":136,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"ac7b37cd-7f23-4cda-8d3f-7ec443f2a8b1","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":136,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"d4b5e322-c71a-48d3-9ba0-1a35e872a327","block_type":"box","text":"any such shares will conver t to Investor A Shares as soon as reasonably practicable after such date.","page_number":136,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"ac34a994-224a-4fbf-a08b-27e6bdbe319b","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":136,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"de3781ac-9778-47e1-bd7d-e3628dc91252","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted into Investor A","page_number":136,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"4daa7535-667b-48ba-affd-3e4ff3c27a9a","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":136,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"089aff86-21c3-4fa3-b20c-340f33967371","block_type":"box","text":"“Investor C Conversions”).","page_number":136,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"d55923a1-3879-43a2-8705-f5e72b105fec","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":136,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"ea056b9f-fde2-4471-af5d-a403f573f0f5","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":136,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"91d7676f-1705-4ab0-a724-a394583d4204","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":136,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"f46dddd5-1d60-46a6-864d-03317aaf732e","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":136,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"6a3a1dec-a6f5-4b13-9caa-46294a6907f8","block_type":"box","text":"Shares will also conver t automatically to Investor A Shares, as set for th in each Fund’s Prospectus. The Investor C","page_number":136,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"4b8f8fa0-626b-4153-8a9b-04b6d6725bd3","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":136,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"dc6100d2-de9e-4a84-b8cd-df02a56d56a3","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":136,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"56d8a342-a8a4-44ac-900e-66ddde7f615f","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":136,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"db1e8bd7-1981-43ba-bab3-c6c0407c08de","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":136,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"ede024ea-3821-4fe6-ac3e-8c5ab6fa81c2","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":136,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"9c421653-e0cb-4a64-9dc6-d1f2084bb528","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":136,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"7b8e4b47-7033-4007-a145-f7a3436d30ad","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":136,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"cc3f8015-e735-49a8-8d5b-c762797a2668","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":136,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"af8c0fd5-ba41-4d4b-a829-84a31d73331e","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":136,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"cbcba899-5209-4a7b-953d-a131917d67bd","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":136,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"fcea69e3-feef-459f-bce9-58107c4bdad6","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":136,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"d72edc9e-0b5f-4547-a250-50c6078ac60b","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":136,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"89f3156a-9036-44dc-bb7e-62326cb5bc34","block_type":"box","text":"redemption.","page_number":136,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"1220ece1-eca9-4a5d-a7db-283bc087046a","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":136,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"14ab674f-8577-48ad-9a17-074b048a6f96","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":136,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"b7cf2a31-3acf-4527-9438-6b4253546ebf","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":136,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"6b5ad40c-bdf8-46a5-bcdb-0f11251bae74","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":136,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"05ddf602-0b3a-419f-af3d-ed851081fabc","block_type":"box","text":"purchased through cer tain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":136,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"3b281de3-633f-4aca-a382-ec4c92611256","block_type":"box","text":"cer tain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":136,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"067f0f62-8ca2-4130-bdda-d27e68211eeb","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":136,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"ce9c0255-2445-4298-a700-f9ae96142ad2","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to cer tain","page_number":136,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"8ea9a2db-8d13-4c55-99bb-a793ac9bb53a","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":136,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"1d4c3039-6a37-4bf6-9f0c-bdcc56806695","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":136,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"8abe750c-24f8-43c7-9a9d-382a3f4d4621","block_type":"box","text":"II-106","page_number":136,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e0205ae2-a940-4d3e-bf7f-2ac11c2abe47","block_type":"box","text":"NM0926U-5977728-136/232","page_number":136,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5083743c-2a28-4f11-8a45-2960d41ebe50","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":137,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"f9fdfc2e-9e22-43df-aceb-5270e6424de4","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":137,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"80aa94be-85a0-4597-93a2-d65d5e00c669","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":137,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"891f91ed-a789-4389-aaec-20a24d55afa6","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":137,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"4b02ef52-3734-4b3a-a95c-ea648a966e0e","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":137,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"1cdd75f4-5aba-4fbb-9bff-20f32121f8db","block_type":"box","text":"limitations set for th under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":137,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"0b536618-6c57-41ac-b061-e43dedb0584a","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":137,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"608dd34e-0b2c-4464-bac7-72ae99d7d2b9","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":137,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"e1defc2b-28e7-48c8-a0eb-17841d8af34b","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":137,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"8127dab6-7c32-4859-8e09-ef5dd0058c86","block_type":"box","text":"Cer tain CDSC waivers and reductions on Investor C Shares may be available to customers of cer tain financial","page_number":137,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"51ec76ce-e569-4d29-ad64-89a6326b2857","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":137,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"4ffe1201-46cc-44fc-b73d-cc5dcdc11722","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":137,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"ece0668c-7e10-4f4c-a874-96eb9d87de0c","block_type":"box","text":"Class R Shares","page_number":137,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"07f6f821-595e-418c-8602-30674fa11c6a","block_type":"box","text":"Cer tain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":137,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"ce06496c-4298-4890-946f-e622c439ad0d","block_type":"box","text":"available only to cer tain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":137,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"93d39ef7-7640-460d-8c78-096962eddf5b","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":137,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"74e99062-4180-424f-904e-4ac748f20544","block_type":"box","text":"0.25% per year. Distribution fees are used to suppor t the Fund’s marketing and distribution effor ts, such as","page_number":137,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"78c2e133-424f-4a8b-9ddc-b9a66f5738d1","block_type":"box","text":"compensating financial advisers and other financial intermediaries, adver tising and promotion. Service fees are used","page_number":137,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"8e978fcb-0771-4b61-930e-9a03c4bf89d3","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":137,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"23e98758-c45d-4294-b131-9034f6adcfc3","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":137,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"dc0f2419-0412-4847-a253-b8e4084d7211","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":137,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"c630dbdd-75d6-47ec-ad43-3c08061806b0","block_type":"box","text":"Class K Shares","page_number":137,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"80dfa503-1a81-456c-9908-157566aa39e2","block_type":"box","text":"Cer tain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":137,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"6e381c4a-2d51-41e2-a64f-da1405fe8951","block_type":"box","text":"only to (i) cer tain employee benefit plans, such as health savings accounts, and cer tain employer-sponsored","page_number":137,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"71c86bbb-d15e-460f-b482-686a9bca58e1","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":137,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"fc0ff446-e551-45a7-a9f8-fc38a7c9c249","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":137,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"6f546514-1d48-4476-a0f4-bc32f165c615","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":137,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"1a6ffed2-42b3-4cdd-9783-013983cd0ea0","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":137,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"69f5d64c-0e1d-4f8c-a865-f817fb07c2c9","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":137,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"c1c8532a-c4f2-4709-bcb1-6f3938b6c4fd","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":137,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"b88eadf0-e78f-44bc-b1e1-706bf51838d2","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":137,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"4a40936b-0a8c-4e0f-97ee-55b4fe283ff7","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":137,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"2622de61-1e3e-4eeb-9536-3761f69c77d2","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":137,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"91266edb-e97f-48b1-ab7c-e4590f0e9f17","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":137,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"9189ad3a-df68-4b64-ab29-18e4a4286e1f","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":137,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"d3d40a7c-5ae5-4811-b705-c31c43ed39f4","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":137,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"a4d1886b-6fd8-4347-a747-af7c376a2b01","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":137,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"4bfffa66-86a7-47f6-8102-6ed18734c1b9","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":137,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"2bb84064-42ac-4a7c-9191-1c850455d967","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":137,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"25575708-4aff-4d18-85d7-82972e3bd78c","block_type":"box","text":"distribution and marketing agreement.","page_number":137,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"7dd9ce78-f8e7-4cd6-9900-0544a7274d5e","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":137,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"ecb6fd82-e873-41f7-9db6-99c63f84c62d","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":137,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"e93a15be-4e90-4957-a3a8-bb44f3e5dcb4","block_type":"box","text":"Eligible individuals who would like to conver t existing holdings to Class K Shares must contact BlackRock.","page_number":137,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"a63d6c6b-b1d1-4092-9b04-275e68061e62","block_type":"box","text":"Class G Shares","page_number":137,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"67036464-6778-4954-8d04-9d2c0e2cf0c9","block_type":"box","text":"Cer tain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":137,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"f1c8a2d6-adcc-4de2-8648-799dd6e67d76","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":137,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"1398e5b4-5023-4821-a48b-7456ad311432","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":137,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"ee528996-81da-480f-94d5-68aba6819396","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":137,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"203c1bfd-a056-4702-b3a0-46010495c389","block_type":"box","text":"eligibility requirements.","page_number":137,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"ff7dbdf4-e312-4b34-a1c7-e9391535ec3b","block_type":"box","text":"II-107","page_number":137,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5cef28c3-547b-4352-a273-6a6143c7a5b1","block_type":"box","text":"NM0926U-5977728-137/232","page_number":137,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3a770677-8189-48f3-b34e-3a7aec6468ff","block_type":"box","text":"Service Shares","page_number":138,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"18a8d0aa-27e5-4bf3-b8df-dc5fac29d75e","block_type":"box","text":"Cer tain Funds offer Service Shares, which are available only to cer tain investors, including: (i) cer tain financial","page_number":138,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"45acfec1-643a-46be-86f6-ec9c2fc18544","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) cer tain persons who were","page_number":138,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"e3314830-61b4-4656-b494-66419d5a83f3","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":138,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"4b19d381-bf3b-4ed6-bd5d-83ea8d26e104","block_type":"box","text":"®","page_number":138,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"f6ecd6e6-1e61-4811-b40c-2e7cfc30574f","block_type":"box","text":"Fund in 1996; and","page_number":138,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"799a33e9-cfa5-4077-8fb2-ffcbe55ddb50","block_type":"box","text":"(iii) par ticipants in the Capital Directions","page_number":138,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"33041517-3ca3-48c7-91b8-40a131da1ac7","block_type":"box","text":"SM","page_number":138,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"acdb9565-e189-47ee-86b1-7101e99d23e8","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":138,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"0334fdab-5480-4002-94d3-d3b29edd2adc","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set for th in the applicable Fund’s Prospectus.","page_number":138,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"14a2610e-838b-46e6-8f3e-964069a93ea5","block_type":"box","text":"BlackRock Shares","page_number":138,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"2e6688f3-e0ff-49f2-9df5-bdfe3696f63b","block_type":"box","text":"Cer tain Funds offer BlackRock Shares, which are available only to cer tain investors. BlackRock Shares are","page_number":138,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"b313fa86-7b3f-4b39-b037-b5c478b4ba38","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and cer tain","page_number":138,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"56124c3d-c057-42c6-8845-46c6960e97e3","block_type":"box","text":"fee-based programs.","page_number":138,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"2341ec38-920c-4a3c-a23f-e546e1aba9ca","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":138,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"991cdd1d-63e3-4997-9103-09df51e38b76","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":138,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"b14e4483-217a-4c5f-808a-6938a600108d","block_type":"box","text":"respect to cer tain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":138,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"08a7cdf3-9491-4efd-96ff-46fb13883fd6","block_type":"box","text":"shareholder servicing fees for cer tain services provided to its shareholders.","page_number":138,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"6557438a-7026-4dc5-a487-bce6b910a5b2","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":138,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"324b00da-600e-4933-b84d-a1ce729c3f40","block_type":"box","text":"BlackRock, fees for distribution and sales suppor t services with respect to Investor A, Investor A1, Investor C,","page_number":138,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"20755074-5ecb-4014-a46d-5b30dc821eb5","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described fur ther below, only Investor C and Class R Shares","page_number":138,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"0ff04b23-38cd-4bb0-98cf-314456fa7b92","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":138,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"9e40dbac-77de-4031-a450-fcacded21242","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":138,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"53cebc4f-bf49-4a12-b1bc-ecbd2de14524","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate effor ts to effect sales of the shares, but it is","page_number":138,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"136dee30-13da-42a9-b168-b59b98079b7b","block_type":"box","text":"not obligated to sell any par ticular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":138,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"1129f96e-7610-4e6b-be5b-845c445686e0","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":138,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"00959c36-55b8-43f5-9d43-75c7b1b26316","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":138,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"edbc582b-fdc9-4d82-87da-27d94f045ad0","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":138,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"21ac313f-0c6b-4290-98c6-6e6546cf653a","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":138,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"7b6a4f2f-2525-4310-9ef8-42aa923dce45","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for cer tain suppor t services rendered by Service Organizations to","page_number":138,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"608b5707-e77f-4f4f-98cc-44b5e41dfa46","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":138,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"77438c3b-5fb8-44f8-bcf2-0efb293f9107","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":138,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"93df7f97-01b0-40c7-b2b8-088fcfb0722a","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":138,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"c128d215-3512-427d-a5a2-3cd83fc83715","block_type":"box","text":"The suppor t services provided by Service Organizations are general shareholder liaison services, which include,","page_number":138,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"fe55e26b-3a43-4a3c-8f70-70f95267f41f","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":138,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"b45f6474-f971-47c0-b276-75c7482a2453","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and cer tain other matters","page_number":138,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"a6ea0320-9af6-4883-bfd2-b9151072fac3","block_type":"box","text":"per taining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":138,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"bf7c0f69-5efe-4741-accd-d2abd89be4b2","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":138,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"5525295b-6302-4e88-a26b-9da9446ba3c3","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":138,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"04467bcb-952e-4c01-8898-0bc64ce50450","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":138,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"4f0eec22-fb9c-4606-a145-9724392ed6e3","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":138,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"2753d580-10c2-4fc8-9b36-68997d219c42","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":138,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"83dfeb9a-7001-4431-afc2-bd7ca0627f06","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":138,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"781a4af2-6779-43a8-ad58-3ed784ed15b7","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":138,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"073f9098-9320-4e39-9d5f-5b8c0ea3ae91","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quar terly.","page_number":138,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"fd9c09a8-5cb8-4a9f-9b8e-64d27ddb8f28","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":138,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"d16100e5-45a0-4e7f-a2ac-24b0e3b9257a","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":138,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"89f06aa7-6c76-4701-af10-6e30ba5538b5","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":138,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"24bc2619-9995-47ed-9b75-73cf5abc4e4e","block_type":"box","text":"expenses, adver tising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":138,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"50bb30e6-491a-4fd1-afc4-e8ff7ea10baa","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":138,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"6d8af8cb-1582-45aa-b7c6-ee4d78fc056f","block_type":"box","text":"compensation for selling different classes of shares.","page_number":138,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"b5183997-fbce-4e7a-b0d9-f94fa54c0deb","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":138,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"e9ea8824-9d78-4f78-a651-27533fec0815","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":138,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"a094cbc7-4820-454a-97cd-b57b07dbc8f1","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":138,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"083c1f1f-c2f5-44e0-97b3-4ee0c1e7af0f","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":138,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"970f961d-6b38-413b-8eac-120ef85693fe","block_type":"box","text":"II-108","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8254007d-33f2-4e73-bf80-b1536049576e","block_type":"box","text":"NM0926U-5977728-138/232","page_number":138,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a07c1741-98bf-4e35-b037-b893951fdaf6","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quar terly","page_number":139,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"4ae9a29a-c156-47f3-9675-71c88764f958","block_type":"box","text":"repor ts regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":139,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"03ab7b80-3336-49cc-a0ad-9ce8c0774c99","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":139,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"35294b52-d921-46c1-b792-e90cb5949355","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":139,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"9aa7d88a-30dc-4193-8e91-3e51f0821897","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":139,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"fd6f4782-f9b3-4276-b8f4-a0c270393086","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":139,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"3ebd0470-5c0d-4f02-90e3-2e434003c781","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":139,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"f8df4b6a-e50f-4a1d-b04d-4a5e97fa9d37","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":139,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"ad3828fe-a1cc-4bd6-be33-defc30abca8c","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":139,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"6735456a-dd77-4e0b-b966-48f88120bf83","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":139,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"32328b8c-7ad0-4e57-bf58-09989ac33c04","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":139,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"c13c84b6-f48d-4df2-b22a-35ddaf55eac6","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":139,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"5b943d5f-33af-46a4-b99e-ae3b4d1ee70a","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":139,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"15f0e854-bb10-47dd-96da-c7a2ab9e751f","block_type":"box","text":"Directors. Rule 12b-1 fur ther requires that each Fund preserve copies of each Plan and any repor t made pursuant to","page_number":139,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"8ab53ac7-ce84-457c-b09a-dc41c8f5c538","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such repor t, the first two years in an","page_number":139,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"9eb412dc-74f1-447e-bed2-f89fc2a6a4e1","block_type":"box","text":"easily accessible place.","page_number":139,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"2a481598-4e81-43ef-bf21-398271836282","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":139,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"5ee0cbb5-d3fd-4b88-859f-239a6e5eb185","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":139,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"d003eda4-7c32-4b2d-8f70-7c9de4ca7541","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":139,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"e94433c9-4998-4fed-99fb-950880517afd","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":139,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"a5f5d17c-fc56-48d5-9d5b-7686d375e273","block_type":"box","text":"fiscal year.","page_number":139,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"65e362fe-dc11-4e6a-9dd5-e902c8c62e89","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":139,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"5e1eb3ac-de5f-48cb-8f8e-de013826c940","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":139,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"027e89a9-efbc-4ef0-8cb9-bf5fb8882190","block_type":"box","text":"imposes a limitation on cer tain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":139,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"5b16c72e-769f-491b-89a2-20d408a32780","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":139,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"149488f5-4199-4790-9dee-a43e5f26197e","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":139,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"10d09ce0-b6bf-456a-acf5-3213565a5530","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":139,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"6dcf7359-3cd8-4bc1-8422-916625caae81","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":139,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"6d6aada7-2529-4d5f-90ae-bf13fcf35830","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":139,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"93d00040-57db-4c46-b38c-a5e14384e7d1","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":139,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"01a614b5-c597-4128-a053-4cee6fcf8e1d","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI","page_number":139,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"32a92b43-6736-4144-8b00-70e7599c4f61","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":139,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"cc876823-db50-4d4f-abcd-00c52f164b23","block_type":"box","text":"and Class R Shares of your Fund.","page_number":139,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"99cc55f6-55f6-4e3a-9c8f-552b668e9289","block_type":"box","text":"Other Payments by the Fund","page_number":139,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"b5fcbd2f-83d6-45ba-987b-cb3ac89249a3","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":139,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"1d8bba86-2dda-4bfb-a1f1-a9336b261e7a","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":139,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"36132816-317d-49a4-8fdd-8efee8303c6f","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":139,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"c281363a-f66e-4545-94dd-0ded9bae6c18","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":139,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"1f621dc1-213c-437c-9496-e8f28e540cb3","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":139,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"8bb229ed-b9a2-47e8-ac3b-6764eeea3984","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":139,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"fbc39047-f567-4a46-956c-a26d682fa244","block_type":"box","text":"of these payments may be substantial.","page_number":139,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"6ce74525-433a-4430-a693-c4ef736f7682","block_type":"box","text":"Additional Payments by BlackRock","page_number":139,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"f4c29255-2ba1-406c-87de-ae12baac8068","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":139,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"0f440ca6-7865-49a5-bf2a-ba77c603b0f6","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":139,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"93aa858a-6f24-4736-84c1-5c0830415063","block_type":"box","text":"its shareholders and/or for data provision or technology suppor t. A Service Organization may per form these","page_number":139,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"cf683493-0450-4432-9710-281c23222326","block_type":"box","text":"obligations itself or may arrange for a third par ty to per form them. These payments, which are not made pursuant to","page_number":139,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"10a1be5d-afae-41ff-a101-31e71b0ea09a","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":139,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"a65553a2-629c-489e-b8a8-1bd3aa7f387d","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":139,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"c73275bd-fd7d-4ca4-95ba-2c250322434f","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":139,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"272dffa1-8650-498d-9556-31da36e6f7e9","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":139,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"593c6695-a2b8-4e35-ae0d-517d5ffe1aba","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":139,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"6c4ea53c-a9f0-4ee0-9a1d-18eaf86c6c11","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":139,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"fc8d5b26-b336-43d4-86ae-dfecb2181dc0","block_type":"box","text":"II-109","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"540a5627-c4cb-4a17-8562-96ec610577eb","block_type":"box","text":"NM0926U-5977728-139/232","page_number":139,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4d055413-1f3f-470e-8f61-b3acedc38886","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":140,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"e639a51d-4d76-4dd9-86fc-3f7504a6fde3","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":140,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"3165bc10-2ef9-4445-99f2-78e6ed0f25d2","block_type":"box","text":"applicable FINRA regulations, the details of cer tain of these payments, including the Service Organizations receiving","page_number":140,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"77641330-b0bf-4809-8130-cffdf3f71f98","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":140,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"53343b53-9652-4a02-8417-d7996896c2cb","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":140,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"1830e52d-658d-4bc2-8266-69bd80c77b6d","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":140,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"08a3440e-0649-4bc3-9868-df79f8b6e23e","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":140,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"84802a0c-8884-4851-a70c-e7f55cea4949","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":140,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"45799954-9082-4db8-83f4-d2b5ea27434a","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":140,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"43113f68-f384-4e26-944c-e915d26c5d4b","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":140,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"df97bdf1-7c5e-4cb9-a764-8ad7063e08de","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":140,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"8e351f9e-43cb-4363-ab4c-d187f16f1413","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":140,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"648762e8-ade9-4aac-9f8e-d0ec66a0d5f6","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":140,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"08ed03b2-e030-456a-842c-555cde6c00a9","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":140,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"bfe9be35-aa79-471f-8f92-e23a6f1c0de5","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In cer tain","page_number":140,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"9a03fb19-b87b-4c97-b3d9-2c260d01ff09","block_type":"box","text":"cases, these payments may be subject to cer tain minimum payment levels.","page_number":140,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"5e1cc26a-a688-46d2-a575-be619c32fefc","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":140,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"78dd3c31-27c3-4568-abec-6998ca6dc29a","block_type":"box","text":"cer tain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":140,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"f745979d-6f6b-4324-ba47-62ae66446a1b","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":140,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"c52049d3-2a26-4689-81a8-ea6771c29bec","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":140,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"97c1e54a-92b6-45a9-9f59-834f9ae38e5c","block_type":"box","text":"Funds.","page_number":140,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"2514e557-bc42-4883-a107-4ac8ea1fde30","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":140,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"afce62a9-e82f-473e-9fc2-635b3d262eb0","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing suppor t activities. These","page_number":140,"box":{"x":101,"y":415,"width":740,"height":11}},{"id":"4c3eff8e-c275-4a70-b019-74f3844b1f04","block_type":"box","text":"payments may take the form of, among other things, “due diligence” payments for a Service Organization’s","page_number":140,"box":{"x":70,"y":430,"width":764,"height":11}},{"id":"927a057e-deb5-4b58-8c4b-d76a76ae298d","block_type":"box","text":"examination of a Fund; payments for providing extra employee training and information relating to a Fund; fees for","page_number":140,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"94774a1f-e1e5-41b5-b7ae-51323e59e7c6","block_type":"box","text":"access (in some cases on a preferential basis) to the Service Organization’s registered representatives,","page_number":140,"box":{"x":69,"y":460,"width":742,"height":12}},{"id":"d0aaef74-f4ac-4e6b-ae4f-043ad1675df3","block_type":"box","text":"salespersons or other personnel, including at sales meetings and conferences; “shelf space” payments for placing","page_number":140,"box":{"x":69,"y":475,"width":820,"height":12}},{"id":"21293186-3760-49ea-a545-b2390c020cb7","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":140,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"e49a6487-a73a-4710-af44-b23b7d8b2629","block_type":"box","text":"may be a preferred or recommended list) of mutual funds available for purchase by its Customers or in cer tain sales","page_number":140,"box":{"x":69,"y":506,"width":830,"height":11}},{"id":"d53c8aae-d95e-48ae-a97d-db8b9bde4c7b","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":140,"box":{"x":70,"y":521,"width":803,"height":11}},{"id":"9ca3d958-ed3a-4f79-a564-02a609fc1b3d","block_type":"box","text":"include promotions in communications with the Service Organization’s Customers, registered representatives,","page_number":140,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"41b28763-38ad-4eba-9023-5a022461317a","block_type":"box","text":"salespersons and/or other personnel); payments for the sale of shares and/or the maintenance of share balances;","page_number":140,"box":{"x":69,"y":551,"width":823,"height":11}},{"id":"1711eacd-dd6b-4a67-8ab2-ec2cc21b0f10","block_type":"box","text":"transaction fees (also referred to as “ticket charges”); and payments for infrastructure suppor t. These payments","page_number":140,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"7aa3c45f-52b8-4f4d-87c3-84d034735928","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":140,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"bee1c73b-c670-4ab9-8405-84107954553a","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":140,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"e81ab6b0-cf4b-41aa-81d4-b495f17549a0","block_type":"box","text":"B. Shareholder Services","page_number":140,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"c05e7a47-3770-4a66-a524-aac901453026","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. In these","page_number":140,"box":{"x":102,"y":642,"width":754,"height":11}},{"id":"07b9a273-992d-44e6-8cbf-726adfb3d6f3","block_type":"box","text":"situations, a Fund may not maintain accounts in the name of the Customers and Service Organizations may per form","page_number":140,"box":{"x":69,"y":657,"width":830,"height":11}},{"id":"9af88068-953f-4723-aced-7390e5c344c6","block_type":"box","text":"some of the functions for these Customers’ accounts that the Transfer Agent would have per formed if the accounts","page_number":140,"box":{"x":69,"y":672,"width":823,"height":11}},{"id":"094b3861-ff18-4da1-832e-72e15657101d","block_type":"box","text":"had been in the Customers’ names on the Fund’s books. Such services include sub-accounting services, shareholder","page_number":140,"box":{"x":69,"y":687,"width":839,"height":11}},{"id":"d9c7746e-af23-4a46-9c3a-bb1142bdbcda","block_type":"box","text":"servicing and transaction processing services and are sometimes referred to as “recordkeeping,” “sub-transfer","page_number":140,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"8ad899ea-b299-49c1-a01e-81ae21510622","block_type":"box","text":"agency,” “sub-accounting,” “networking” and/or “administrative” services. Additional Payments may exceed amounts","page_number":140,"box":{"x":69,"y":718,"width":837,"height":11}},{"id":"81d81bb5-9d3b-4154-aebf-cfb8f7f9a8c5","block_type":"box","text":"that would be earned on these assets by the Transfer Agent for the per formance of these or similar services. These","page_number":140,"box":{"x":68,"y":732,"width":828,"height":12}},{"id":"f7ff0527-942e-4420-8e5b-538758b079db","block_type":"box","text":"Additional Payments made by BlackRock are in addition to any transfer agent, shareholder servicing and transaction","page_number":140,"box":{"x":68,"y":748,"width":827,"height":11}},{"id":"d64714bb-b0a4-47fb-8f55-d5726e92369d","block_type":"box","text":"processing fees paid by a Fund, as applicable.","page_number":140,"box":{"x":70,"y":763,"width":328,"height":11}},{"id":"d4c8eb63-38f5-4f7d-89f9-3308d4460dca","block_type":"box","text":"C. Data Provision and Technology Suppor t","page_number":140,"box":{"x":102,"y":786,"width":299,"height":11}},{"id":"b8ca254b-1461-44b0-8445-eaed8b2b343f","block_type":"box","text":"BlackRock may make Additional Payments to Service Organizations for the provision of cer tain analytical or other","page_number":140,"box":{"x":102,"y":808,"width":805,"height":11}},{"id":"e7ce522b-f8de-4e90-b7d2-b6a8538fd7c7","block_type":"box","text":"data services relating to the Funds, such as statistical information regarding sales of the Funds, or technology","page_number":140,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"28f05fd0-7cfc-4c31-9f62-4e944372f28d","block_type":"box","text":"suppor t. Such Additional Payments are generally made as a fixed dollar amount, and not based on assets or sales.","page_number":140,"box":{"x":69,"y":838,"width":821,"height":12}},{"id":"074ed011-b4eb-4cd7-93bb-932f6702deb9","block_type":"box","text":"D. Service Organizations Receiving Additional Payments","page_number":140,"box":{"x":102,"y":861,"width":397,"height":11}},{"id":"aa6a954d-6be6-4a66-a78c-935d47530ffb","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, cer tain of the Service","page_number":140,"box":{"x":101,"y":884,"width":774,"height":11}},{"id":"0204d447-2c4e-4acd-8b8c-5365dd041a2c","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":140,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"ca79c1bd-eb29-4c6b-a3b1-3bd584843859","block_type":"box","text":"II-110","page_number":140,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"45da6fd0-6fad-4b5c-958a-cfb324d5b51b","block_type":"box","text":"NM0926U-5977728-140/232","page_number":140,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"81655de2-82aa-41da-ac8a-504641d51f4d","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":141,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"d2b5e260-14c5-4917-850d-400f37ddb7f4","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":141,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"47affc2b-9ecd-4601-9a76-eeaad6e876f0","block_type":"box","text":"payments and to obtain fur ther information regarding any such payments.","page_number":141,"box":{"x":70,"y":75,"width":523,"height":11}},{"id":"9247c5ab-e025-4767-8a33-775e5c5351d0","block_type":"box","text":"&Par tners","page_number":141,"box":{"x":69,"y":106,"width":71,"height":9}},{"id":"52947b63-3c0c-4b73-a5f1-79eee9fe3f92","block_type":"box","text":"AccuTech Systems Corporation","page_number":141,"box":{"x":68,"y":127,"width":219,"height":11}},{"id":"f179fd8c-f4fb-4636-b813-6d9a5ae9eb59","block_type":"box","text":"ADP Broker-Dealer, Inc.","page_number":141,"box":{"x":68,"y":147,"width":164,"height":10}},{"id":"ab09750d-9a51-4f2f-8b3e-92bb3182ecc5","block_type":"box","text":"Advisor Credit Exchange, LLC","page_number":141,"box":{"x":68,"y":167,"width":207,"height":11}},{"id":"eb2543c7-cb32-41ae-a2da-bb8e9081d928","block_type":"box","text":"Advisor Group, 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The value of shares of each Fund at the time of redemption may be more or less than your cost at the","page_number":145,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"ccbcaba4-e273-4b53-bba6-92fcf6ccc32a","block_type":"box","text":"time of purchase, depending in par t on the market value of the securities held by the Fund at such time. Except for","page_number":145,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"0c8b1083-b09a-4b96-9dd7-8c0bd65729aa","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":145,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"e08785b9-65a0-4cf3-bfe2-2419b95b872a","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":145,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"f57ab697-a250-4558-be22-fac8a75e463d","block_type":"box","text":"redemption.","page_number":145,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"c95fa209-2c9d-4992-a132-43ce1c3f2988","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":145,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"19edcbce-02e2-4503-80b4-445d26e77172","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":145,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"55178ee3-fa75-4c65-a86f-2c200a655952","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":145,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"4f824262-3084-424b-828a-3e55c62ede3c","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of por tfolio securities or","page_number":145,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"80c51f67-d1a4-418a-bf0c-85565b74fc9b","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":145,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"673b76ae-4eba-443b-bea1-1b990de495e1","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":145,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"c8b33552-3329-4e92-b659-b1139eb818a0","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":145,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"b1aace2c-bc18-424a-8f1d-6e3fa0f64f64","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":145,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"55ddd267-03c4-4fd6-b169-cba04a482490","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":145,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"f098d238-bdcf-4441-b92b-b029c7f8213d","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":145,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"300a4d1d-970a-49e4-b965-f6f63496f6a5","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":145,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"961a58d5-7694-40bb-b6c6-75de1a211f34","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":145,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"572dc7e2-1836-4ba1-9dc5-243a3a073f03","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":145,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"c415d3df-c883-4348-8a60-269b6a4b45a5","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":145,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"ac01e981-1337-4765-937c-8f8e0adb3f81","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":145,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"f31578eb-2805-4b8e-a060-500479b2e0d5","block_type":"box","text":"so redeemed shall have no fur ther right with respect thereto other than to receive payment of the redemption price.","page_number":145,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"46b8a3f0-2acf-416f-9881-7f41c4b9d48f","block_type":"box","text":"Redemption","page_number":145,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"6a9d2595-a4eb-4860-ad54-ede976d9f965","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":145,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"2732af86-4d0c-4094-b082-ddb20957f175","block_type":"box","text":"Redeem by Telephone:","page_number":145,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"1b1b6c3d-2cab-4918-8767-b1063a27bfc4","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":145,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"e3984ad9-cf85-43db-9488-21d52e7b12be","block_type":"box","text":"telephone request if cer tain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":145,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"e82bcc2f-0bb0-464e-bb31-4c776846a32e","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":145,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"0416b36e-453c-4ec0-aed8-4aaf20f6876d","block_type":"box","text":"Cer tain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":145,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"9bb44e0f-9b15-413c-836b-2d523f45f9f5","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":145,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"77087a86-ebc5-4d53-9055-0d975446a422","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":145,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"8eaeb44d-d556-45c0-a28e-a6b92fc08344","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":145,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"fab0ed01-e1d9-411b-9245-e474bac0eb63","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, cer tain redemption","page_number":145,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"0871dd79-d41e-43d2-8101-8a2ace687005","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":145,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"2fc44bc7-3f6b-4052-82c7-ddfa3e9da8f3","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":145,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"24c94940-30ad-4693-935d-b17c7a768daf","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":145,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"d35e5c76-53f2-4682-944f-26c8b2dc4397","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":145,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"f9a2b734-69fa-4a67-8a18-1fc3d606471e","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a par t of these programs","page_number":145,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"38d4bfe5-d04a-42bf-8ba5-1c64ee7cfac5","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":145,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"90d99117-4267-4606-9dde-69e42e59db82","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":145,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"e2e40c20-7cd7-4d39-8c45-8949a2ccbc1f","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":145,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"ad7a7ab7-d76c-457b-9a28-e96da44e79c5","block_type":"box","text":"is requested by a corporation, par tnership, trust, fiduciary, executor or administrator.","page_number":145,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"ebf26af9-f444-4daa-bfaa-5df4ee88ac25","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":145,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"6e7d1297-e044-4b78-b00e-6eb3490426bd","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":145,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"abca2466-20c4-4177-8e9c-089ec8a3e158","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":145,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"12652ebe-5b71-4558-838b-aa11980c047f","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":145,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"05e33c49-9c90-4a3e-8169-1bd0e656ae93","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":145,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"d5185ad3-593d-40b6-9ef3-e2fce6743f42","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":145,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"e1823074-42dd-4469-9086-89e9035866a2","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share cer tificates have been issued","page_number":145,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"c313be34-6a33-4cc5-a6f3-245ac15a2503","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":145,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"ecf7a321-2edd-4ff7-bae3-0db6be709c07","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":145,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"4f97c1f7-5f53-4dcf-8f90-25add3301af1","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":145,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"84ced3a4-2ceb-4401-a6a1-8e55c7193fc5","block_type":"box","text":"II-115","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"38d97ff3-9e66-4ece-b21b-7a465f7f08f5","block_type":"box","text":"NM0926U-5977728-145/232","page_number":145,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a97533cc-915a-4945-ab10-c64cc80955b3","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":146,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"5748e602-72bc-4d6a-b8b1-7bf999631c13","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":146,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"be8cf5ba-a267-460a-8097-76db89d04cc9","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":146,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"94637518-5581-450f-89c4-035e071babbb","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":146,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"d773c1de-b9a6-4104-ae7c-e1755bf07965","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":146,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"dd09ab5a-7f39-4427-9f82-dd78bf9998de","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":146,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"a678ddba-0994-4629-bad6-e360fc079925","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":146,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"e9604630-f022-4b03-bf0b-6746a9bcb452","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":146,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"54007df7-ab68-4867-b459-75f9331f5119","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":146,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"8f943a5a-e9fb-4942-9536-1baafddb1d32","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":146,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"fba67d57-4f3f-413d-8841-037cc8821ede","block_type":"box","text":"Redeem by VRU:","page_number":146,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"a22f1c56-2d17-4098-b278-e5d0b954adf8","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":146,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"9da71dd6-5db8-4f20-a3c1-da19ebd2c62f","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":146,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"02d5aab3-c4e8-4818-a66f-a65e2848430c","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":146,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"a80e7977-2f77-4d05-8577-d1c1e2c20838","block_type":"box","text":"Redeem by Internet:","page_number":146,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"b92fa118-6968-4023-aff1-1fd35f167417","block_type":"box","text":"Cer tain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":146,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"1ef3f5f5-506d-4965-87a7-65455224e494","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":146,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"80c294dd-63e2-46aa-ad54-7b36ce67a2ea","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":146,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"5137ec02-79a2-444a-9291-e5651eb04a72","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to cer tain","page_number":146,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"6277e1f9-4ae9-44ed-8a33-1929d5575de8","block_type":"box","text":"institutional investors.","page_number":146,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"36392c38-5e07-4d6e-b93f-6eb11323b46a","block_type":"box","text":"Redeem in Writing:","page_number":146,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"662f5f0c-a0e9-4720-ad08-c8bc65747f13","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":146,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"654f22df-d50d-42bd-9cb8-dd81bd565467","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":146,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"90dd6379-3069-4c15-9409-9fa958a661d3","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":146,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"9982e53f-ad0b-4967-a680-3588fe905b85","block_type":"box","text":"Pennsylvania 15222. If you hold share cer tificates issued by your Fund, the letter must be accompanied by","page_number":146,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"fb3b5538-4f31-4851-aac3-3b43c78e3ec5","block_type":"box","text":"cer tificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":146,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"cc45db32-29ba-4e2e-9afa-d05d18b5ef98","block_type":"box","text":"generally be required but may be waived in cer tain limited circumstances. You can obtain a medallion signature","page_number":146,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"3e4a340e-2ba1-4829-9f94-d6116da71a7e","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":146,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"5e61560e-3a7d-43fd-9af2-2c17bf661dd2","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":146,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"ce69e2a6-9846-4ac8-9d22-01f76d2490f9","block_type":"box","text":"hold stock cer tificates, return the cer tificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":146,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"ef8145b0-e659-4947-98c2-7f58b61dbe34","block_type":"box","text":"or wire to the bank account of record.","page_number":146,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"0db3e0a8-2c4f-4d8c-8729-112fe106d192","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":146,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"cac62d28-a2f8-4af4-baa1-a4703e62b944","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":146,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"e6ddcb97-5e25-4859-9987-95aefb94b746","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":146,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"8bab6d64-f9b0-4e85-8d5c-321bb7dc4ab4","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":146,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"4a3344b8-dbd0-497a-a4ad-4c0d477091cb","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":146,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"a434da5d-e2c0-4831-b7bf-862ae9cd1fce","block_type":"box","text":"(that is, cash, Federal funds or cer tified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":146,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"5bbe4ab3-965f-470a-89d0-ea3d660bb1b8","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":146,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"a606f948-69a4-46c0-8164-3b78d719f2f6","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":146,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"35c4da30-e7b9-492a-aa43-5b44f90356a1","block_type":"box","text":"redeemed by the Fund.","page_number":146,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"f5a47394-f0cf-4e62-a868-e2e886c93fb0","block_type":"box","text":"Note on Low Balance Accounts.","page_number":146,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"ab28be17-0819-4f72-9a59-680cf24e2d70","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":146,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"32e6b965-a05c-45c4-8c04-6173b4e10be5","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":146,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"4d4ef57c-05fc-454e-a503-027b2fd55ad7","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":146,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"756486b9-e438-4388-82c3-55ca2c07f34d","block_type":"box","text":"for any reason, including market fluctuation.","page_number":146,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"6198f7db-93e0-452b-898b-c8b2a571e4a5","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":146,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"8b6529d4-c073-4088-bdac-77ff5041839c","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":146,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"8da9434b-8a5f-4880-81c9-fdc9525a80b1","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":146,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"d463c769-6cd2-4c04-a001-244eb2662d7f","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":146,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"af585d85-d760-4f91-b8c1-e4ffb2754f92","block_type":"box","text":"cer tain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":146,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"f1b1848d-3de6-4dc2-9b43-63b23c9c07da","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":146,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"15795a2f-fae4-438f-ad77-e3e50e8103b5","block_type":"box","text":"Redemptions in Kind:","page_number":146,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"a692179e-a845-47d9-9d4a-65085d75df82","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":146,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"b8a53b1a-d76a-4902-92ba-b1465fe47d81","block_type":"box","text":"whole or in par t by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":146,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"dd1c534d-fd49-401e-9339-c5107042c9fd","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":146,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"eca7b81c-660d-4b3f-a63f-5b1bc7914a50","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":146,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"e766ba05-8aa1-4283-8e6f-ec9d04d02f9b","block_type":"box","text":"normally be paid in cash but may be paid wholly or par tly by a distribution in kind of securities.","page_number":146,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"e4dba158-7222-4ab2-a46f-5268e440b4ec","block_type":"box","text":"II-116","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1e1a849e-6b47-4345-9195-05f32311494e","block_type":"box","text":"NM0926U-5977728-146/232","page_number":146,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a3e46040-344c-4a10-8138-0bb344a6382e","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":147,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"8364e3b3-f7b6-4803-95da-67c16f2aa3b4","block_type":"box","text":"rata representation of the Fund’s por tfolio or a non-pro-rata representation of the Fund’s por tfolio depending upon","page_number":147,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"b6099975-bfb6-4873-b5a5-3a9305aec33f","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":147,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"20a7f8c0-0d64-470e-9768-51374c5bd80b","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":147,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"1a6afa9b-57a4-4f06-b740-f0ef7f20f157","block_type":"box","text":"considering cer tain factors, including, without limitation, the por tfolio management team’s model or optimal por tfolio,","page_number":147,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"1e04556c-e507-41cb-9b39-eadfdf361a94","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":147,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"c6577de9-f64b-429d-915f-95a93badbb4e","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":147,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"59d35483-efed-472c-bdd5-515b05b8ce8e","block_type":"box","text":"retain those securities that will per form the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":147,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"cf6bdfea-55cf-42a3-9cae-6bc21816e2e4","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of por tfolio holdings","page_number":147,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"8799fba2-e416-460e-ae36-0cc1c5fd10ef","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":147,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"60ba42a9-c70c-4e28-aa49-955efe3c21c5","block_type":"box","text":"The Funds may effect redemptions in kind in an effor t to, among other considerations: (a) manage the por tfolio","page_number":147,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"04ca5be2-bc6a-40c4-b128-c46df32f2e7e","block_type":"box","text":"efficiently or for any other por tfolio management purpose, and (b) externalize cer tain transaction costs that would","page_number":147,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"92c483be-7b9f-42cf-afd8-d7ac5b1629e4","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or por tfolio turnover. Redemptions in kind may","page_number":147,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"c406a94c-df86-4152-9a9a-739c9fa1315e","block_type":"box","text":"reduce the need for the Fund to maintain shor t-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":147,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"856eee36-8f99-4113-b02e-370a278b1815","block_type":"box","text":"for the Fund to sell its investments at inoppor tune times, and lower Fund capital gain recognition, all of which may be","page_number":147,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"90ed6f31-1e01-496a-b76f-c2d84be045cb","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":147,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"72774a7e-1c58-4851-b613-d40263f83a79","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":147,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"86dc8685-ee0b-4408-a2e3-773dbe208b6f","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":147,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"ad337f2b-f546-4292-92c0-5ddd4433cb6e","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":147,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"4df9075f-5d20-47cf-8aa8-2cb92440f132","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s por tfolio, or a","page_number":147,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"807cc594-5234-4ae3-89c1-b3db682df357","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":147,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"9c99ff80-a25d-48c6-8842-eb8941a91966","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":147,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"bddb642a-cbba-44c1-be1a-706a7f69e7b3","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":147,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"b36b4b21-780d-4e81-a070-06bd57e380d2","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":147,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"e03a6b2f-5df7-4427-ad6b-6d7f2c2c03c7","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":147,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"aa5ed532-c12f-431a-b5ae-24285b3207d3","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":147,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"0746f95b-9b17-461f-816f-15edf26ad2d0","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":147,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"afa5fb74-f0d4-4017-ba36-0a2f629fd9bf","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":147,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"7c6cd949-f229-4c3a-98c1-2c9960adefc7","block_type":"box","text":"institutions that par ticipate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":147,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"dc1c2b81-2d86-41e6-b047-6cc469eaa69b","block_type":"box","text":"doing so. The Funds’ shor t-term trading policy shall not apply to the transactions described in this sub-section.","page_number":147,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"256bf8f1-e51b-4c5e-a269-e212ec4f8bcf","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to conver t them to cash, you may pay taxes","page_number":147,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"2a830c53-4e61-4ee0-aa50-442152dedd7a","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":147,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"6d852587-739d-4177-b970-450fc658c927","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":147,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"8eb1a49a-9574-411e-a520-522bcb77bf58","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":147,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"c2959db6-f074-473a-80dd-17dfeb642624","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":147,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"238679c5-6448-4465-91b0-0a8ccc14ee5d","block_type":"box","text":"Repurchase","page_number":147,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"2ad944ec-59d3-4d76-9bf4-a681728049e8","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":147,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"bc222bb2-e6c9-41df-af17-cccaeb2958b6","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":147,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"3cb8bbc2-5e21-43e8-ba58-89adfef1458d","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":147,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"8fd149ee-fc29-44da-a6b3-29c1e0835685","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":147,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"fa190898-0035-4c80-bd11-b4227642c2bc","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":147,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"f0730e29-c7a2-4f4e-9cbb-de1c4d874d1c","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":147,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"ce7c3c4d-2347-47db-8372-8935e493fd11","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":147,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"e462b0c8-997c-4b16-88fa-18b0864a8b7c","block_type":"box","text":"next business day.","page_number":147,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"1e2b477a-e5ea-4862-8deb-6b1c00095f5c","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":147,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"f2042015-a946-41d9-a0ac-5dfead4f8fae","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":147,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"038c1d62-8350-4ea6-b3c0-57d457173bbd","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":147,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"cb6cbeec-5c2c-4f1f-af29-6fab6b754881","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":147,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"52b34aa7-e402-47b2-9d1f-01f32532233b","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":147,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"10c03a2b-80dc-4b6f-a921-b05fb35e52bd","block_type":"box","text":"redeem shares as set out above.","page_number":147,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"2eb66137-eb52-4c16-b805-7f0ff98b8231","block_type":"box","text":"II-117","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8b349a9f-1fe9-4901-a1e5-8f8b9834b872","block_type":"box","text":"NM0926U-5977728-147/232","page_number":147,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"32d3f77e-974f-4cf4-875c-a72e21293b86","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":148,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"37a78cce-6613-40bc-948a-470779ec6888","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":148,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"83733c64-4016-40b9-9f14-fe844a5589fc","block_type":"box","text":"reinvest all or a por tion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":148,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"5e708a2a-6479-458d-81b9-e8be6abefd9d","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":148,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"74a2f492-3c6a-4f4f-9a1d-a67269b85853","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":148,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"36792412-f384-402f-a490-f11fb8139fe1","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":148,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"74230cc1-f21c-4375-8df2-0054769749be","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":148,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"bb49d6c1-d3f6-4851-a845-44e812bc9870","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":148,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"d04148c3-5fb1-4de8-a921-4e9466a78e41","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":148,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"803be291-471d-4f20-8691-6f7c422fc549","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":148,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"351029d4-8e1c-4326-a81f-b21cfa8812b9","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":148,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"984b5bf1-4ac1-4842-a00f-c466f729c2c7","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":148,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"59ad4313-bf3b-4716-b3d3-6e245ff743fd","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":148,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"c8dc06e8-eb17-48e2-a9fc-ebcf0de33087","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":148,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"5f4103c9-7819-4043-97ac-10f04e2a6a4e","block_type":"box","text":"other financial intermediary. Cer tain of these services are available only to U.S. investors.","page_number":148,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"c01e9b26-3547-4c18-903c-3c2bbfb669cd","block_type":"box","text":"Investment Account","page_number":148,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"c40ba67d-4d3a-48f4-bb74-d18206988c66","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":148,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"20860e0e-0437-434b-9003-d3d2a04184d4","block_type":"box","text":"least quar terly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":148,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"c4ed9c94-391c-4068-ae4c-1df5a28e54a2","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":148,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"935970d2-b52e-4665-bb08-453fadc05f5c","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":148,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"8ba7b817-9b77-4f8c-939e-e08347302baf","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":148,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"226f8963-01f7-48c3-8ce7-7ec7d74c475e","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":148,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"ffd23318-3315-4234-8bc8-dc34135e1294","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":148,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"cac27f5c-852c-41d0-9396-53d4311b3d47","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":148,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"c5ef3011-dd45-4272-b33f-0e6a16934aa4","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":148,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"ce077d50-62ca-4539-a39d-b1e4ee26c8fc","block_type":"box","text":"automatically at the Transfer Agent.","page_number":148,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"1376e9b8-01a9-492b-88c1-e31899519f49","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":148,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"052a0d1f-ee89-4121-8c2f-a60fc2684853","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Cer tain","page_number":148,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"f7c6ff90-990a-4b93-a8e0-fb6bc8537aeb","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":148,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"95906325-d592-4f31-a44a-c3612e586d5d","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":148,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"4725ba14-2286-40e4-b13f-dd9349424471","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":148,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"ebdeaee6-04d3-4e85-b8cd-4f9493aa4132","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":148,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"d5ab0f9b-e9d4-4197-b3f7-ecd039cb7088","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":148,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"bbc28d7e-37b0-411a-9bf5-41bc81c55612","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":148,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"2b207de7-d8de-4cbd-893a-2e871692996a","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":148,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"a71dc045-ed12-40bf-81f0-a9c6d5225698","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share cer tificates will","page_number":148,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"551a9a2f-b2fc-4354-aad2-84ffac02d1c6","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":148,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"d5e580b9-8d12-4a25-9d3d-9c38e9e0b492","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if cer tificates had been","page_number":148,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"1246806b-08d9-4c0a-9b0e-f6d5ecf06c9f","block_type":"box","text":"issued.","page_number":148,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"44d6894e-bb77-4095-94ef-5c8a9e5131d8","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":148,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"63a54a3f-08bf-4c17-867d-7a30802efe9f","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":148,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"c09e86e8-dc58-4a14-b76c-12722644f013","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":148,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"5e18d58e-2898-4414-8edb-e0236e30f4b3","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":148,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"ec98a27d-f974-425c-a771-3613e6000ec9","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":148,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"7af11833-c233-4452-ae7d-5060469f2d03","block_type":"box","text":"Exchange Privilege","page_number":148,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"e510b4d3-5d85-40cc-afb2-ebb3f0822183","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":148,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"0e33e002-e3e7-4dd3-9f2d-b7451bd1223f","block_type":"box","text":"each Fund have an exchange privilege with cer tain other Funds. However, Investor A1 Shares may only exchange out.","page_number":148,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"5e72da77-80fb-49eb-8977-8a8bab120b0b","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":148,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"c9d6764e-1d40-4545-84c1-afad6dd46f7f","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":148,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"1c86fffa-16a3-473d-b699-9f375b714e18","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":148,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"cce94ad8-d972-4301-8280-c2a3ffd2a6d6","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":148,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"7c07d6c9-2d0b-49d1-811e-b57babecea83","block_type":"box","text":"II-118","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"728a3aed-e1ab-49fd-9037-d34f82a1361b","block_type":"box","text":"NM0926U-5977728-148/232","page_number":148,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"bb50c8ab-3c14-43b6-8069-72f9da24e49e","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":149,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"cfc9771c-aa70-48c2-9cc4-24235a550003","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":149,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"e56b833b-e1a2-4797-9462-31450e1753ba","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":149,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"5a471134-7867-4e8b-8fec-7ea1c7ee2aba","block_type":"box","text":"Institutional Shares","page_number":149,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"c3eba434-3eae-4c87-907e-0e6cfab7149f","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":149,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"63cdc283-e9a2-4448-ac03-97a6b84981b6","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":149,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"e24db379-dee8-4c62-aa29-7cb935fe87ad","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":149,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"0955d147-bf7a-4116-9e98-8fd429eaedfb","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":149,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"ef4b2302-f000-4e87-8e7d-66f02ce3d09b","block_type":"box","text":"for Class G Shares of other Funds.","page_number":149,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"002c16ad-56b0-45b2-a5d1-9d005d2bf9bd","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":149,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"8ef3163f-cc90-42b2-9a43-a337bc4274fd","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":149,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"83e9957c-d4c8-4e0f-9ca0-19fde4658978","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":149,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"daeba164-f346-46ed-8602-d90ff2554505","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":149,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"d1edc79f-f1cc-4118-9aa9-0a0dcce6d1be","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":149,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"19b3b90f-3a90-4e9a-a38d-c498caeb2fb9","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":149,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"f63ab0d4-8cac-4533-b5c8-6534bde715fe","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":149,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"b6340a98-1f90-4829-8482-0230a957e30a","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":149,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"b70b7ae4-0a17-45ec-97dd-8e448a9e197b","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":149,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"b020b2ed-feda-49a4-b94c-bd362b6cf42e","block_type":"box","text":"Shareholders of cer tain Funds with Investor C Shares outstanding (“outstanding","page_number":149,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"eed9ca6d-206e-474e-bd4d-da1359c5826c","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":149,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"c8a2e451-eecf-48e9-821b-53cf289dea6c","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":149,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"771ee85b-a1de-45bf-a3b9-392c1e73cfea","block_type":"box","text":"the payment of any CDSC. Cer tain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":149,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"376ca9d7-c878-47cb-a033-355a9abf78e5","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":149,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"09ea1bb8-ca8c-415b-922e-0f4ee4ef72f0","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":149,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"a9cd2b13-cc9e-42c6-ad99-9b0ef73ef35b","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":149,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"bf3cac6e-1d8d-404e-8dbd-3ec6e6f3b4a5","block_type":"box","text":"Exchanges of Service Shares.","page_number":149,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"1050f265-6d2b-49e7-8425-83a80041e1fc","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":149,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"8f8a4bd5-cb23-4927-9e6f-aa73b6e42f57","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":149,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"1287a7ab-fa07-408d-a71c-1fd7bb41507a","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":149,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"a4970902-ba5e-4ae1-b50d-5ba166d8b410","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":149,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"cb96e160-88d9-4795-a1c3-7ea460aa6d83","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":149,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"7d94f7d3-7de4-407b-8d30-bbc92d3c6429","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":149,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"058839ea-c362-475d-aa2b-d3819af72547","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":149,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"9b2b25ff-7622-4573-ad54-1b8c7f3c64a9","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":149,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"abaf70d9-1ee7-4d5b-a3b6-63f5535790de","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":149,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"2d9d8d14-988a-44e7-b476-e38997ca589e","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":149,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"8e58cf7f-a8dc-40f8-a1aa-75b16e76ec96","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":149,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"092941db-4f2f-4990-8c77-b9a85689ed93","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":149,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"732ee9cd-630a-4b81-bd44-1417816e51a1","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":149,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"856b5609-6b85-4a6a-8317-5e1ba80a8e3a","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":149,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"0c5b1823-5c0c-4535-a3aa-02c93d519d41","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":149,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"090cf169-3037-431f-b881-3e3d55941c92","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":149,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"9592377f-190f-432a-9060-47a7348766f0","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":149,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"bbd28b79-4fef-4cbb-8673-eb002a03f51b","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":149,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"fe1bec7a-4ad8-4f96-9ed7-87699d210aef","block_type":"box","text":"exchange.","page_number":149,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"ef024fdf-d4ff-4fbe-890f-1dd5af765eda","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":149,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"4c65ea74-dbc1-489c-84d1-2a5c137dd9d4","block_type":"box","text":"The exchange privilege may be modified with respect to cer tain","page_number":149,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"89d88dd8-e7d1-4cad-96c1-33a1b9df8921","block_type":"box","text":"par ticipants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":149,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"6d8ada17-3568-4a4a-af6c-57e0b7135987","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":149,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"b3380460-23bb-4078-8c41-285171d8aa77","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":149,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"796f9579-ac32-4b98-9a58-f585c9d6df1d","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":149,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"b525b464-7709-4626-8908-03d9f8ef04fa","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":149,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"701cb2dd-4390-4bdf-8cca-a32ccb6ae3f9","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share cer tificates, you may","page_number":149,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"cc211671-bec2-49a5-aa17-34a0c08ee6de","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":149,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"449e4d48-a522-4f47-a46c-9ce2c0323847","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":149,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"eed4875d-86f1-40e5-be13-031bdc026790","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":149,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"e845bc4f-c9ef-42c3-a669-51f0c9947b8e","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":149,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"1fe8cfca-09fd-4c04-a351-b67fa7585311","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":149,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"00521fa3-cf7f-446c-81a2-5b4a642de80b","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":149,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"a495920b-1e99-4f84-b7fe-3e1c0dbedfa6","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":149,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"11e93e9a-b8de-46cd-8e5e-9ec3874be4b2","block_type":"box","text":"II-119","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a86e4fba-6f60-4e62-bf37-e877152c3b85","block_type":"box","text":"NM0926U-5977728-149/232","page_number":149,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3f97e945-6af0-44d1-8353-1855d600868b","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":150,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"ec89778f-de58-42b8-813d-94face09f2a4","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":150,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"c1b4faf2-cb28-429e-b4e8-dab2857ae5ae","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":150,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"02ce9505-9433-4e47-86db-da9f05e1acaf","block_type":"box","text":"Transfer Agent in writing.","page_number":150,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"795c4f3c-6101-480b-95cf-edec2ac43692","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment por tfolio whose shares are being","page_number":150,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"4555c5a1-2421-430b-9f3c-bc71963f0d52","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":150,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"a1f3ffe9-8902-4dfc-8519-f765e54ec64f","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":150,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"410a6722-81bc-4385-bd5b-5f8d322b93ec","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to par ticipate in the","page_number":150,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"ef081358-4229-4a22-9fb1-727560118bf2","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":150,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"aaeb48a5-bdf5-4ab5-b90e-a62868f5e441","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":150,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"68a56535-27d3-492b-bbc3-d758990eb406","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":150,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"d73bcd24-17d4-4ec1-8349-b0b9113e0723","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":150,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"12917c93-f02c-4d58-bf3f-b2851e287e99","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":150,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"28d5c459-31e5-4584-a7d7-b0b957130f33","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":150,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"62a77003-1af8-491a-ac29-e3c4b31a7e74","block_type":"box","text":"objective, policies and restrictions of the investment por tfolio into which the shareholder is making an exchange.","page_number":150,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"37003024-8c0e-4c7c-bd2c-c22224849c0f","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":150,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"17f1dc5a-c5da-4306-93a3-ba6467efb728","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":150,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"65234198-341d-42b5-8c1d-cd9878656330","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":150,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"b23be34a-7de8-4999-8e31-72fc1aed62d7","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":150,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"c60b8209-0038-4691-9df8-b771635bff01","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":150,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"3522fa22-8f23-46d9-8749-46cdd6da258b","block_type":"box","text":"do not operate to the disadvantage of any por tfolio or its shareholders.","page_number":150,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"5cb043cf-732a-41d3-8eec-931379a3e7a9","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":150,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"f1de1e92-924b-4b42-b57e-f58259866b20","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":150,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"66811f1d-9b31-471b-a315-4ac433c39a5a","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":150,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"9da6289e-7f00-42b4-a995-0fc9ac9cc731","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":150,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"461f6524-230d-4a34-8933-08ae22f7748c","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":150,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"9378b764-bf60-48cb-a5fa-8a3a73588c66","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent per taining to such instructions are","page_number":150,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"a50eff3e-8bb4-40d8-b1d7-4db2787fc37c","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":150,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"543bfb95-316c-44b4-95e2-d8c67aa0d731","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":150,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"f48a4bbc-7542-429b-bb0f-9396e009bf85","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":150,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"476936da-3489-4ee5-b10e-b8bf23e254b1","block_type":"box","text":"Cer tain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":150,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"45ce8dac-78fc-4d89-94de-82b42ffa05b8","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":150,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"dbb253a8-f73e-4fbc-8c44-9d88cb91c4fe","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":150,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"1b56ea5b-3113-4f44-8161-2849ffe7d940","block_type":"box","text":"may be distributed by the Distributor.","page_number":150,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"7404cce1-5b27-4141-8e87-d42acae88ee8","block_type":"box","text":"Participation in Fee-Based Programs","page_number":150,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"6dee0a30-7731-41c4-af15-e443f962060f","block_type":"box","text":"If you par ticipate in cer tain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":150,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"b74c0ac7-f48a-4e3e-85eb-44fc47985ac3","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in cer tain fee-based","page_number":150,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"6ed72773-dd92-4540-afa9-78a235a4a78e","block_type":"box","text":"programs in which BlackRock par ticipates, you may be able to buy Institutional Shares, including by exchanges from","page_number":150,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"f6c0291c-8e94-4b9d-8eac-fbbd952f48a0","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under cer tain","page_number":150,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"97973049-678d-4811-84ca-ba9bad5f6e35","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":150,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"dd0b7a16-9c28-47e7-9d84-8796058d5461","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":150,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"9f103e51-415e-4375-bdb7-95018fa7906d","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":150,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"e2a84473-5820-446d-9904-59d4eb78ed0c","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":150,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"3851db1d-befe-42cd-bded-f106250895ff","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":150,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"ab317adb-ff5c-4bbd-b32c-1c66b4ebcedd","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":150,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"03909206-0ca7-4f06-a950-75159363fc77","block_type":"box","text":"an account. In cer tain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":150,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"e3709991-91d0-45ca-a946-4c28c48a86e1","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":150,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"b4e104eb-d498-4bf4-9b35-ca4cbca37920","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":150,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"86bd8279-b7ad-42bb-963c-bc4aceb65e88","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":150,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"bb276fbc-7f10-4197-a2af-900b0d0f13af","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":150,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"d2ec39b6-95bb-4fdd-a222-96c8b7fb6936","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":150,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"6cde1cc4-8de4-47cb-94fd-6685668c1ecc","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":150,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"f09bc705-0114-4c10-bf1f-dd171572ac96","block_type":"box","text":"II-120","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9ac3ffc4-457f-4c2e-aa64-13cfefd667db","block_type":"box","text":"NM0926U-5977728-150/232","page_number":150,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e01ba56c-3911-447b-aeae-3742ea31b998","block_type":"box","text":"Cer tain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":151,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"5591c2f4-84f4-4cf4-af99-37af0ab92b11","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":151,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"1a456f20-ef46-4f0c-b9c6-e5fce4c54065","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":151,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"c02d104d-20c2-4882-818d-ec14c3511368","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":151,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"9a87329f-1882-42b0-b6e5-e9135b65dd4a","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":151,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"0bece4b1-44e6-45c0-8c2c-461f80773d7d","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":151,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"3d88231f-b7de-4b89-9275-5bb40297b04f","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":151,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"c2bd1462-5df2-49e5-afd3-7b855fb8b6b1","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":151,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"33c11a5c-95ec-4e16-8281-0e247c4257bf","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":151,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"7918bdb3-ba07-4f23-834f-bea2ff900abf","block_type":"box","text":"information.","page_number":151,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"82666acb-f6c5-4fd0-846a-7e9b4786a83f","block_type":"box","text":"Retirement and Education Savings Plans","page_number":151,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"9eb1f38e-f32a-4ecc-90db-1683fb95d43e","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":151,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"0335cd4c-6233-4888-9a26-8d60d934a60f","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and cer tain of","page_number":151,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"41d0cbbe-ca32-4cf9-9391-09afa3bc9cdc","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":151,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"bb565d76-fd1a-465f-837f-841df24838cc","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":151,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"d53d8109-996a-4e5d-86bb-e68a716e52ba","block_type":"box","text":"your financial intermediary.","page_number":151,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"6bf6ee2f-5afb-463f-8496-82bb430bd193","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":151,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"c5a8a04a-a106-4437-bc44-75cc4aaf7063","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":151,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"d4f89cc5-3a72-47ff-9ed6-0d1a89fa5981","block_type":"box","text":"distributed as well. Investors considering par ticipation in any retirement or education savings plan should review","page_number":151,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"4e8d2033-9e67-4a53-951a-ddaa47ba753c","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":151,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"c85e6731-bfe7-4aae-8322-5c2d96309622","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":151,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"9534d9bc-9578-4dcb-9d04-a9cced8e7055","block_type":"box","text":"Automatic Investment Plans","page_number":151,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"b3cc4d62-24c6-41ea-a0fd-df139d69c925","block_type":"box","text":"Investor class shareholders and cer tain Service Share shareholders who were shareholders of the Compass","page_number":151,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"80ac12eb-fda6-47f3-bd5b-2435e1a2c3e1","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":151,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"f3163a13-d6ad-4fae-b19a-1578f84ec387","block_type":"box","text":"®","page_number":151,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"a77387c5-e95c-4569-8bce-7be092381b23","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":151,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"bc034737-4972-4a23-a57d-e35a32fd2517","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":151,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"440717d1-e9a3-43a5-95c2-70218804b592","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through cer tain accounts, no minimum charge to","page_number":151,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"9a481102-2f41-4543-8c04-6c0428f06f61","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":151,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"508a2fef-ac97-4b32-a94e-f673ccd8718a","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":151,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"03440014-536e-44c0-a50d-f28486b9ef5c","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":151,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"e2c57602-3dfd-4850-b117-13b00a375d57","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":151,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"c338653c-6b51-41e9-87ca-9b8972043e83","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set for th in a","page_number":151,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"c5bec6c8-3d82-4fd4-85a8-975c736c338c","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":151,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"cb35cf9a-420f-4e11-824d-f7b10c2dfa90","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":151,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"ca23be8e-850e-4643-974e-bb2108260f2f","block_type":"box","text":"Systematic Withdrawal Plans","page_number":151,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"65a59391-d132-453b-94c4-46e40fbb2be0","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":151,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"488e417a-42d3-4a79-8a3c-16f52aa21a1f","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":151,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"19c0d3cb-99d5-4b50-a5f7-132cbe76cdb6","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":151,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"68424be2-a7ae-4975-a067-7962a966a605","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":151,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"89bcbbeb-a5e5-4b29-9d35-1ebadff0682e","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":151,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"71f76a2c-7529-45c2-8b2b-6e386b21a9c7","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":151,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"928a65f1-bb54-4601-a4e4-979d50c44540","block_type":"box","text":"www.blackrock.com.","page_number":151,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"ace63866-9249-438c-8d66-55946c235b71","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":151,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"e83675b0-1b1b-482c-a44b-b2506a21c76d","block_type":"box","text":"will be depleted. To par ticipate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":151,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"f070027a-4bd1-4083-9a7b-d2e6711ac9aa","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":151,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"f092aba6-1b7e-4fde-bb78-99e2b927ffa2","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":151,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"2aa5506c-6348-4c64-89b3-1bbc27f7ba9e","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":151,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"46621da3-ae6e-496b-9148-c3de55f79e9a","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":151,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"6e5b2287-8db5-4285-883f-ba18bbf0e0e3","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quar terly and semi-annual SWP redemptions of","page_number":151,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"85edf0d5-4004-4a89-a493-cd728ddb3298","block_type":"box","text":"II-121","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"65beac1e-f3c7-4364-9755-07812a9cfb75","block_type":"box","text":"NM0926U-5977728-151/232","page_number":151,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"00970d9f-306a-437e-b071-9e676cdf080e","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quar terly) and 6% (semi","page_number":152,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"6a571cbd-2d27-4558-bf86-a0fdc46254c1","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":152,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"efa8aec5-b960-4c5f-9a16-af1093dffc25","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":152,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"1ed4ff1a-0940-4ab8-8ed5-906e071ef2c0","block_type":"box","text":"For this reason, a shareholder may not par ticipate in the Automatic Investment Plan described above (see “How","page_number":152,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"90f815a9-dc5a-4eaa-a97d-f95178f20209","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":152,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"4ee7ffcf-080c-470b-9933-0013071a7ae7","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":152,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"714b41fd-d28e-48d0-9fa5-a51969eba92f","block_type":"box","text":"Dividend Allocation Plan","page_number":152,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"72dae176-ce1c-44c5-a423-55f6b28bd418","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":152,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"6fa44717-8399-44e9-87cd-90bb45020bff","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":152,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"58cac187-8b4d-4770-83fb-a699a3af6db7","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":152,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"82ba01b1-1d2b-4c60-93ee-b8225f4113fd","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":152,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"5280738c-f813-46c1-97c8-762d3285c3cf","block_type":"box","text":"PRICING OF SHARES","page_number":152,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"d6916fe7-b026-41bb-af2e-aa55b1ffa9cb","block_type":"box","text":"Determination of Net Asset Value","page_number":152,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"a85a95a1-bb7a-437e-8bfa-5d960cbd09cc","block_type":"box","text":"Valuation of Shares.","page_number":152,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"53d64a95-836e-4c7d-8168-3abba4948412","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":152,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"b572254d-8323-44eb-93c5-cef6f566f284","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":152,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"e6694d9d-e845-4835-ba85-351b858b61db","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":152,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"a4188b82-6310-45a3-9295-6fac21b4af5d","block_type":"box","text":"Equity Investments.","page_number":152,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"603747d8-6ac2-41b7-8291-678faeedfdca","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":152,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"ee3fdbc6-bba1-42ed-b33b-2b4388bb1e0f","block_type":"box","text":"e.g.","page_number":152,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"04ef15c3-b723-4e29-a113-2f46bfaabfc0","block_type":"box","text":", NYSE), on separate","page_number":152,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"0c383ffb-260d-4806-b6b8-da35e8f8993e","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":152,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"58e90bd9-bcaa-425c-a020-e39cf318fc3a","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":152,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"103f9d87-a204-403c-adfa-a0cf30626e37","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":152,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"27b8f140-5c94-4b85-9c0c-b68ad5d5fe91","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under cer tain circumstances,","page_number":152,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"81d7373f-a424-4c0d-914f-d4f316129120","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":152,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"d1390156-d3ce-4be3-b600-1b078c700209","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":152,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"89773238-350c-40a9-975c-14ec49d1a168","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":152,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"7811263d-33ec-4278-9c55-ae4f00491058","block_type":"box","text":"last bid (long positions) or ask (shor t positions) price, if available, will be used as the value of such security. If a Fund","page_number":152,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"04c2e5cc-8f32-426a-9673-82975f265513","block_type":"box","text":"holds both long and shor t positions in the same security, the last bid price will be applied to securities held long and","page_number":152,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"f6203265-37d9-4830-9ef0-818fe75b6884","block_type":"box","text":"the last ask price will be applied to securities sold shor t. If no bid or ask price is available on a day on which a Fund","page_number":152,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"355f4e19-92f9-488c-88d3-0c95f44faabe","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":152,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"5b287dbc-0ec7-4cb4-8018-4469481cb74f","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":152,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"9d37fc21-f73b-4ddd-a2cf-663bf115270f","block_type":"box","text":"defined below).","page_number":152,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"136e7250-c48d-406d-8372-38dabdbb5c17","block_type":"box","text":"Fixed-Income Investments.","page_number":152,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"5fbb3c67-6247-4940-be2f-877361d560bf","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":152,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"eebb8d73-37df-4edd-b4d6-1377bbb93028","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-par ty pricing services, each in","page_number":152,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"d120b458-4774-4ecd-aeae-2a6319911464","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize cer tain inputs","page_number":152,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"96f89f76-f4d1-4d52-8d4f-a91b4f0e0726","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":152,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"24eebb21-a582-4cda-8369-1976e1169945","block_type":"box","text":"e.g.","page_number":152,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"1ed418e4-ab96-4365-a70c-b5caf42d70d0","block_type":"box","text":", recent representative bids and offers), credit","page_number":152,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"04365efe-c7d0-4464-a10b-c97a560b49a7","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":152,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"09ceec75-2f98-47b8-8813-9f7f6708f350","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":152,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"d3d5bb1c-0d4d-4e41-9173-0f251d14af79","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":152,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"938f712f-b183-4739-917c-4804cba8d532","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":152,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"8636fb21-1f5d-426b-ab7d-0898bc35ecf2","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in cer tain asset","page_number":152,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"636cd997-8d58-4a30-9f7e-b7b374baf3e8","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":152,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"59ef00a6-2ba7-46a8-a4a0-85b891635558","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amor tized cost method of valuation may be used with","page_number":152,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"a752a9aa-67bb-4fbc-9fc4-76e0c6a5b10d","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":152,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"22163e0e-0691-4bcd-8b45-05a4c802da84","block_type":"box","text":"value. Cer tain fixed-income investments, including asset-backed and mor tgage related securities, may be valued","page_number":152,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"9c53fc5d-c32f-457a-83e9-2d15ec374113","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":152,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"b68e2e7d-1d0b-4fe7-9e99-404fe5eb0604","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":152,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"f38d8fea-3bd8-43c2-af42-08b9e5c6b800","block_type":"box","text":"attributes of the tranche.","page_number":152,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"504e87c7-00fd-45b8-a747-1d8af5a5ca6e","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":152,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"9ad3ec6a-3fb8-478a-b3f3-8d99239f5a67","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":152,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"2d21f518-dd78-4717-8eba-f9e2fb3f9f47","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":152,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"22ee4c9b-242b-4cb0-ab1b-e09be056c14a","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":152,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"f6d85dd6-22d7-4c96-9c76-fe6e7e09e644","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":152,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"17deaecc-2978-4419-88e0-a3e4150d9715","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (shor t positions) price, if available, will be used as","page_number":152,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"2c27425c-b981-47f4-bee2-f488f484428c","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":152,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"1b4fd28e-2e1d-413a-b01b-88d090daf275","block_type":"box","text":"II-122","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e92e772f-f473-4f2e-9fa7-d509322b4099","block_type":"box","text":"NM0926U-5977728-152/232","page_number":152,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"49abd356-9666-4462-816a-5c03ffca64e2","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":153,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"b9561c82-69e7-48a4-8e33-e338bec39413","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":153,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"be8fde0b-f776-4014-839c-1b3bf6de318d","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":153,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"54631057-da28-4c27-9f22-93f40e55970b","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":153,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"17772bd9-8746-45aa-81be-c494266871f3","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":153,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"e1ebed1b-5293-4351-bc9b-22c3c0458427","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":153,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"0430f259-0335-4072-81e8-5c1164918bf9","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":153,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"6a23ad38-a2d1-4099-8cd7-cdea52a6589d","block_type":"box","text":"Underlying Funds.","page_number":153,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"b297d2f1-5d38-49d8-8446-79cbf830b8a1","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":153,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"4fbbb8ea-2985-4a59-a5ce-026d4bf1700f","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":153,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"79381077-d0d8-4a6b-8776-e64f5defdd2f","block_type":"box","text":"at their most recent closing price.","page_number":153,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"16532d66-a3dd-48fb-b7b5-0df2bbe4d8de","block_type":"box","text":"General Valuation Information.","page_number":153,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"bd3a97ec-aa4b-4513-9df6-ce2b2fda03cf","block_type":"box","text":"Prices obtained from independent third-par ty pricing services, broker-dealers or","page_number":153,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"3d6ce690-0714-4136-9dba-32259f8ea4b6","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":153,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"c54f707b-c57b-4741-9fe5-534278d73991","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":153,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"8ee66433-f2ff-410c-a9c4-8b71cd381709","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":153,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"ab79db78-d620-4c58-88d5-5d28a25d85cd","block_type":"box","text":"applied prospectively. Such determination will be made considering per tinent facts and circumstances surrounding","page_number":153,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"d758ac84-b9ad-4112-8c5b-6e3a6713ad63","block_type":"box","text":"the revision.","page_number":153,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"1a85018e-c9e6-4911-bcaa-120a63ae35bd","block_type":"box","text":"In determining the market value of por tfolio investments, the Fund may employ independent third-par ty pricing","page_number":153,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"787c35c2-c482-4fcc-b3c5-73ed16cce4e7","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":153,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"7f77c94e-9667-47ad-9327-6bb538b3c4ea","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":153,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"da8b7ce1-5bbf-4ed5-a90e-558a73f9b3b3","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":153,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"d293ca97-cb70-4934-b57b-ff7dfeb4b4c0","block_type":"box","text":"price the Fund could receive upon the sale of any par ticular por tfolio investment may differ from the Fund’s valuation","page_number":153,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"62245a19-e8a0-41d1-8dad-75e4d87984a1","block_type":"box","text":"of the investment, par ticularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":153,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"f5ae0b9b-c56b-4333-86a5-936dc3130509","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":153,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"da134a13-00fc-4f0d-92d6-ef1120bfcaee","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":153,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"92eb6b3f-5268-484f-8f6c-cce680f540a1","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":153,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"689b7e77-ad9a-49ec-833c-1795e70c7cd2","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-par ty service providers.","page_number":153,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"33889527-f8d7-4b67-84a6-5b3a69a56c27","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":153,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"9bb302e8-fa6f-4984-8912-12e3a75abd55","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":153,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"3d15da12-0e82-4b3f-b5b2-ebb2d3e26471","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":153,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"8ec1f177-3d6b-402b-b72f-82d4a8b92c46","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":153,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"72986a73-dfb8-41b3-b649-c330543c6f2e","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":153,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"1be6a7ff-f06b-49ac-93aa-cd5000f10f14","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":153,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"ed64e296-8950-442b-8817-e4a91f296941","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":153,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"8653eee6-8b51-4293-822a-04dca2deb727","block_type":"box","text":"Cer tain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":153,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"d028b7f9-d8c6-4edd-af0e-ee26554e12be","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":153,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"0d59b2ae-5e91-471e-9fde-e8e75ae0ff72","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":153,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"4c985737-6ecc-44c1-ba50-33653d5a45cb","block_type":"box","text":"Fair Value.","page_number":153,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"c01419a9-aef0-4326-8b3d-9c29667059eb","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":153,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"4afd9f55-660e-43be-8f49-5b2912b6c83e","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":153,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"966d92e8-23b1-437f-b8f2-0a87909eb749","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":153,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"d44627fd-ef72-447e-8c3d-777ef0c3c169","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":153,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"6aadc339-3857-4273-9d18-f9cee11c54bc","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":153,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"254d9bc3-3575-4ee6-aef5-5f7214e90cdf","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":153,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"c783a225-e00c-4722-bf16-31dfd314115a","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":153,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"3aa9ae4c-cd17-43fd-bc5f-e0fa86d78bb3","block_type":"box","text":"(","page_number":153,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"749c774c-9a2f-4811-8335-80c4b4082e69","block_type":"box","text":"e.g.","page_number":153,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"4161724e-9679-4d75-9de0-b8d1962a5eaa","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":153,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"de4f2313-9935-41b4-bdf6-46fca3219670","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":153,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"b395b555-7959-4db7-a7cf-68524220844f","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":153,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"ccc69637-71e0-472d-8fdd-bc91fbee6a42","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":153,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"365314dd-cf2a-4ac3-a99d-9d2794ce2af3","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":153,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"19434e3b-066f-4574-bb92-7c5cdc13dae4","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":153,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"353fdd1f-fbc4-4398-ac55-c2b3cddfafe4","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":153,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"e101e136-fc00-4c3b-9ad0-fde7e2bfcea3","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":153,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"09b2c9ba-cd04-4204-9e58-5e9d9613d34f","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":153,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"087d42db-2122-4e57-aaa1-031ff9d4178b","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":153,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"e28b3d13-2a07-48fe-ae22-af46e552d6f9","block_type":"box","text":"be treated as a Fair Value Asset. For cer tain foreign assets, a third-par ty vendor supplies evaluated, systematic fair","page_number":153,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"497d6d4d-567e-411c-b335-f4a30e2fe8e9","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":153,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"6c8134f4-aa5d-4688-b395-c80e394c4acf","block_type":"box","text":"II-123","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cc178bb3-4218-433d-aa9b-0a89bf280096","block_type":"box","text":"NM0926U-5977728-153/232","page_number":153,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5f366099-7733-438b-a5b4-6e440f1b9c9e","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":154,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"b6da6f42-13b8-4509-8b29-76995ff2379d","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":154,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"f23a95a6-b2e8-4a39-ae65-70b0fb94edea","block_type":"box","text":"pricing time.","page_number":154,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"35147612-fd0d-48f5-88f9-9343b791aa93","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":154,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"65388db1-7d36-42d3-b78d-534a103bc4a0","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":154,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"8b7c0300-4597-45fd-867a-218daf5604a9","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-par ty pricing services,","page_number":154,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"d43f4b07-f994-4a24-8731-bdfbfa44c80a","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":154,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"d5362ea1-70de-4b9b-b324-6a88db7970f8","block_type":"box","text":"assets and liabilities of the Funds.","page_number":154,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"6dedb88b-7e9a-45d4-a663-95ffcb713ad4","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":154,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"1f4c3bb0-c02b-4d81-9b2b-15c7b88b61f5","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":154,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"d0776f91-9e7c-494e-b592-a80a88405c72","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":154,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"0053a19a-e5a6-4638-a965-7f10d34b66cc","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":154,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"e676758f-bc61-4944-8416-c9097226a9f8","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":154,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"61845704-f3d4-4677-9f33-b78fe6606b19","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-par ty","page_number":154,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"584eba66-5584-4e36-b5ff-d8707c495ecf","block_type":"box","text":"valuation models.","page_number":154,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"daf50efa-501d-4bfe-9c2b-1be677fdb7f0","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":154,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"51834365-b6c8-49b6-8686-cd8594849452","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on cer tain factors, including","page_number":154,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"f19279e5-ac61-4cc5-8c2f-179b7a5e0fb7","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":154,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"5498a698-e55b-43d7-85e3-01fe5e110026","block_type":"box","text":"alternatively, using proprietary or third-par ty models that may rely upon one or more unobservable inputs. Prices of","page_number":154,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"a2a79f3c-6e4a-4640-9293-e97011c9260e","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":154,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"113365c0-b23e-405b-8975-040c9b154a82","block_type":"box","text":"appropriate, an appraisal by a third-par ty experienced in the valuation of similar instruments, may also be used as a","page_number":154,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"0e3c9dd6-14a6-49c6-a14d-329b83f89003","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":154,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"03903268-d57c-44c5-ad50-80d3395f477d","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":154,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"1b3c11a6-5a69-48ae-9a05-e0510f5d3128","block_type":"box","text":"liabilities could have been sold during the period in which the par ticular fair values were used in determining a Fund’s","page_number":154,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"f6c68bcc-48c7-4a89-9fdb-4db231189177","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":154,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"9afd1b7c-e1fa-42ff-8abf-80be925770f6","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":154,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"17513083-a81d-4b5a-afe6-8d2162468eba","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":154,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"ce371b3b-3570-4f54-954a-7e346831337a","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set for th in","page_number":154,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"5c606671-1eae-43a8-94de-b7c29eace8e2","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":154,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"d2dcecda-0405-4f86-894c-12dd3c58c507","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":154,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"fbc80a20-bac1-42db-a0ce-c7267c70129e","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":154,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"e122c6ed-bbf0-41c7-bdd0-bb764248da95","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":154,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"cd8de4f1-df18-47d4-87b8-6d04addf78ce","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":154,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"8bb36a71-c02f-4e9c-82f4-ca008a3b44df","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":154,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"837140d4-24d9-4460-8f25-c7d3331537b3","block_type":"box","text":"increase the cost and/or reduce the availability of third-par ty determinations of fair market value. This may in turn","page_number":154,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"97f9a230-10a0-4f0f-b3ad-de05cf214e64","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":154,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"0c6b0c52-c2cd-4a98-a6c2-4946c44524d1","block_type":"box","text":"par ty determination of fair market value.","page_number":154,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"1131be20-cdff-4df6-b96d-173055585527","block_type":"box","text":"Computation of Offering Price Per Share","page_number":154,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"2898fbbe-1679-494e-ab9f-31044352c5b0","block_type":"box","text":"See “Computation of Offering Price Per Share” in Par t I of a Fund’s SAI for an illustration of the computation of","page_number":154,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"7a847642-71f6-4471-ad02-f25531e1b1c2","block_type":"box","text":"the offering price for shares of your Fund.","page_number":154,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"c27501ef-31d0-4ad9-b711-4341731dd0d6","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":154,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"6efc570f-54ea-4bf1-99b6-5b3511314232","block_type":"box","text":"Transactions in Portfolio Securities","page_number":154,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"eda2519e-906b-4dd8-9ef1-1239f46e36c3","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":154,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"add37929-17c5-411e-b97a-f71936cf9876","block_type":"box","text":"a Fund’s por tfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":154,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"1c908290-7905-415f-b5ad-2780d0e587ad","block_type":"box","text":"par ticular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account cer tain factors","page_number":154,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"ed4c8fc3-72bb-4139-9825-9c5f1711d950","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":154,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"a84ff437-e145-4f34-8010-06a90de1385c","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":154,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"db627a6a-8310-46bd-b613-327afcd84239","block_type":"box","text":"consistent with obtaining the best price and execution in par ticular transactions. Subject to applicable legal","page_number":154,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"f886b6bc-1574-478a-94c4-25f189cecd58","block_type":"box","text":"requirements, BlackRock may select a broker based par tly upon brokerage or research services provided to","page_number":154,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"25f53c2a-d393-4e87-864c-43cd4ad09b63","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":154,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"e07dc9b1-ba7e-4de3-9bcc-bea5a5c071fd","block_type":"box","text":"II-124","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6b603dee-a2d3-4283-bdd5-2ef1355bc2c0","block_type":"box","text":"NM0926U-5977728-154/232","page_number":154,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7a879e33-cdfe-46a8-b1c6-35af3b67753f","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":155,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"4c8a9375-b9b5-4483-a3ef-746b2f1486fb","block_type":"box","text":"reasonable in relation to the services provided.","page_number":155,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"4b3cafd1-2be5-4d48-b778-687c9b61b324","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":155,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"af468392-61e0-403f-9349-25c19904f422","block_type":"box","text":"Master Por tfolio, it is expected that all transactions in por tfolio securities will be entered into by the Master Por tfolio.","page_number":155,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"373bfed3-16f9-4dd9-b76e-e538f4471a66","block_type":"box","text":"In selecting brokers or dealers to execute por tfolio transactions, the Manager and sub-advisers seek to obtain","page_number":155,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"bfd4a0f9-fd29-4987-b13c-527d6983a9e3","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":155,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"ecad5aa8-80b6-4a9f-814a-a224118ba813","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":155,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"9e6128ee-0ec5-4b4b-8f6e-4a11c37efc0f","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":155,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"24f11312-3c52-4a33-84aa-6b77fd54c30e","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the par ticular security or instrument,","page_number":155,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"171c24e4-60af-4168-bf2d-c2e2fcd13da4","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":155,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"d92ddef1-cc03-4bb5-9c82-0baff6e66736","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":155,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"c526c190-1626-4df3-9b67-004b99883d81","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":155,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"336ff29e-3979-45fc-91d9-cc8c5052ce31","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":155,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"ce35bf9a-8235-4976-ae58-4413244c9a62","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under cer tain circumstances","page_number":155,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"2bcd0628-ef5f-4687-88be-edfc57679111","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":155,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"c5c92008-cf39-42ba-a0c7-8e64ad009e40","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":155,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"995cac75-0523-46b1-908c-cfb998af6181","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":155,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"7abe6b97-a11b-4f79-9b21-d0b892f14633","block_type":"box","text":"principal transactions under cer tain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":155,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"52544aaf-1d4f-48cb-bc34-c14fadd4220c","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":155,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"c48e4f1e-207a-4b28-86c4-931a5b55f826","block_type":"box","text":"per formance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":155,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"628afb09-6021-402c-9c5c-19f9538211dc","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and repor ts concerning issuers,","page_number":155,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"9aadf95b-f386-4fdf-9739-0f524e937ac4","block_type":"box","text":"industries, securities, economic factors and trends, por tfolio strategy, and the per formance of accounts; and","page_number":155,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"37528171-c570-4b8a-85c5-94caa55403ca","block_type":"box","text":"(3) effecting securities transactions and per forming functions incidental to securities transactions (such as","page_number":155,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"1d6d3deb-614f-42b7-b7ba-a006d7319929","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":155,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"1074856a-feb8-4a8f-8fbf-3aab89def8dd","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":155,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"e6c35534-9482-4f1c-b71e-7f1e94c93e1e","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may par ticipate in client commission arrangements under which","page_number":155,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"9fa5befb-ebfb-4cfe-8ba5-c176b760c989","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a por tion of","page_number":155,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"d56fe2d1-adb3-4d8b-b335-3a747c5fab64","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":155,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"57da170f-f38c-4bab-b2fd-a16cebcac5a7","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":155,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"40a66161-cf12-4276-b7cb-565e163c2d75","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":155,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"93e975ab-2dde-4e8e-8060-d24fabb8e8f6","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Cer tain Funds","page_number":155,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"910a6711-8395-4e56-89b4-77a451a89dc5","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":155,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"f58209b5-12f7-4788-ac80-2e945909275a","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":155,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"1390f4c5-c1aa-4366-a77a-48aa86f1bc8a","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":155,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"7b914274-57a3-4e11-8e13-cac61e139271","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":155,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"5e1f0994-d1f5-4df2-ad27-b1b7bddd42f1","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":155,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"c658dfc2-ccc2-41cf-b64b-5a47cda08746","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":155,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"9bee4543-ff7a-4089-a694-653f21e6669b","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":155,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"8bdae7a0-f947-4bd4-803d-1806cb735cf7","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-par ty and provided to BlackRock by the broker-dealer)","page_number":155,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"95b8ff15-0841-4e36-90f5-cf070356889e","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":155,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"af804bff-19ef-403b-8c0b-09c6480ec5f7","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":155,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"b02aa3de-1236-4046-8d19-9e7889e84a66","block_type":"box","text":"por tfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":155,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"e51fb741-36c8-483f-9ebc-83d2dbcdc87c","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":155,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"ef2a39ac-f863-4bad-b8b4-a7f4d2fdd41a","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":155,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"ff0d0c14-0ac5-46c1-926f-4ddde6f1de95","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":155,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"1724db56-41af-47d4-a702-c50b0f7d2cfc","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":155,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"3419a3de-f69d-48ec-9a18-204e2f0c890a","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-par ty related research and","page_number":155,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"5d842fd1-c9a8-40fd-b2f4-b62a61448914","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":155,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"d81f5aac-a117-45f4-82b9-abb3c1f1e8c6","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":155,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"66a8e456-a1b3-4a1c-9c87-96f2c1d5b8dc","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":155,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"931362bd-a4d6-4fad-b562-09f7a2336ac4","block_type":"box","text":"par ticular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":155,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"8211be9f-d033-4ac3-bca2-b8a77a65d803","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":155,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"0ac5d98e-bab8-4ed6-a93c-4bb978e0267e","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":155,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"a2bcb82b-bf8a-49c2-bdd2-fd5b6017a412","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":155,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"23a3b56f-e178-41ec-a7d5-24dcaebba631","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":155,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"7a9a3944-19c4-451c-9614-9def67fb623b","block_type":"box","text":"II-125","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bc4520df-640e-4e02-b841-b3c9f6bf3faf","block_type":"box","text":"NM0926U-5977728-155/232","page_number":155,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ebfc8030-b92a-455b-a05f-dd43dc53721a","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":156,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"0110a234-9e62-4fd1-9d34-371d111e6a8e","block_type":"box","text":"managed por tfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":156,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"39063c50-9abc-4576-afcc-0789f4cf0ca8","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":156,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"3b8fca60-ad49-40e2-982f-44b3be6a725f","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":156,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"c2449326-8166-40fa-9b80-d703b3be9241","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":156,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"e3d04058-b57e-438b-948a-5a0bb339e356","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":156,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"475a71c2-45ed-4de0-b96b-af4cc0d4ae87","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":156,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"98782a50-76fa-4304-b02b-c890679399d1","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":156,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"140ad828-762e-43c7-9cc1-9399f587afbd","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":156,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"a5793ddd-c93a-4d5b-92db-4ec28abd8ac4","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":156,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"41ff368b-3e99-400f-992d-748e28363281","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":156,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"ab52f99b-4525-4469-b5a1-7e1b2c9951c5","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":156,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"e116f86b-572e-4a74-962c-d767965351cb","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":156,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"889d6023-6e58-4943-b92e-466d818b7fab","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":156,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"059b6045-d6c6-459b-b079-3a19d8e7ca48","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":156,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"6420d5a2-d747-4293-ab14-f513d4988243","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":156,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"336aa3e9-8b26-4552-a6f1-6238ef4cc33a","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Por tfolio with respect","page_number":156,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"8cbe84af-7c4b-4454-a7ea-dce184d2ada4","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":156,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"fff03e21-de5c-4187-8bb5-efb76b40008b","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Por tfolio, BlackRock","page_number":156,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"ab0fae62-8f43-4c6e-917e-2b8288143ea0","block_type":"box","text":"is primarily responsible for the execution of the Master Por tfolio’s por tfolio transactions and the allocation of","page_number":156,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"462996c2-c665-4733-83b7-1610bd3a42e6","block_type":"box","text":"brokerage.","page_number":156,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"8882399d-4f49-4d2a-a951-1c4a986faac2","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":156,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"99dc0f7c-f307-417d-8d20-141938e1a3a1","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":156,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"7d2f83e2-f1a8-4cd8-874a-1b6f3ad90b4f","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under cer tain","page_number":156,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"05cdc32e-4e05-4c88-95bd-14855b5987bd","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":156,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"7d1cb62c-3c83-42f3-8704-a7f71c366bf4","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":156,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"3e4c0ee7-8372-40a3-9cb0-79b2ac78a0c4","block_type":"box","text":"Section 28(e).","page_number":156,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"bc1e3158-5986-4e32-8297-49c2497603d6","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":156,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"7031eb6b-b6d2-494b-a211-ca83b03463be","block_type":"box","text":"brokers or dealers to execute por tfolio transactions for a Fund; however, whether or not a par ticular broker or dealer","page_number":156,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"51ec2286-9204-47fb-8cc9-fe2505b1ee1d","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":156,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"026a0a78-b9ea-4485-a143-94eb8ed9c76f","block_type":"box","text":"execute transactions for those mutual funds.","page_number":156,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"5c6cec19-0477-493f-aa76-40f450507cf2","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":156,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"8932eee0-5ad6-412b-a43c-fdbecb57e73c","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":156,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"f47f5c01-db7b-45de-9767-347ec98725b8","block_type":"box","text":"in the form of depositary receipts, or other securities conver tible into foreign equity securities. Depositary receipts","page_number":156,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"e8249211-c726-4869-abc9-aba21fc938f1","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":156,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"008ece40-4f23-43c7-b464-9eeb4c701ac5","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":156,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"7b266a7e-73f3-4cf8-a374-e6d805e3df2b","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":156,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"27ff570c-cad3-4ffd-999f-b6adff7e098c","block_type":"box","text":"intends to manage its por tfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":156,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"c0672f21-3d71-49ee-8f74-b85de33724c6","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":156,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"d2d9eac2-e10d-4d8d-a948-4f1c0991b5bd","block_type":"box","text":"considerations will have a significant effect on a Fund’s por tfolio strategies.","page_number":156,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"560e4f90-22bd-4369-94b4-0acba3e7cebc","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":156,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"d6ccd25f-bd16-4189-a67b-2bf1528554fd","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":156,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"62670044-2f5e-4838-845e-be7362396d95","block_type":"box","text":"Each Fund may invest in cer tain securities traded in the OTC market and intends to deal directly with the dealers","page_number":156,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"2f3d1719-9e2e-4d35-8a8f-c09986e6aa18","block_type":"box","text":"who make a market in the par ticular securities, except in those circumstances in which better prices and execution","page_number":156,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"a002d025-fb33-4166-89df-b38c204095af","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":156,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"8a78a748-92ea-4fe8-b7e9-a4d7568ecafa","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":156,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"76476772-da33-4be6-b6d3-be5120512adb","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":156,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"606cc73e-5056-437d-a5cd-0cff76c8ff8d","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":156,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"1117cd7f-85e2-49e3-a4df-237b855cbff3","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":156,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"318209e6-6f89-4fb5-b3d3-03ff1aa7ef07","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":156,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"a499fd93-bbbf-475e-aed5-d66e1ef4c1e9","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":156,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"7f700030-4a11-4ba2-a84a-5bbffde3cbeb","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":156,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"2848ef2f-7168-4e98-8b8c-a482ed31990a","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":156,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"b7d9adb3-9c33-4bf0-ae96-3e12bee74cdc","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":156,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"35865ef1-0299-491a-8b6e-edc0ba48e2ab","block_type":"box","text":"II-126","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a101d75c-c7b5-4686-b31c-4d69a9dc3078","block_type":"box","text":"NM0926U-5977728-156/232","page_number":156,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"dc5508e6-1212-4a12-ae44-4b2f914ac8c5","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":157,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"99343dfb-73d0-40a4-842d-8b8bb57fc21e","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":157,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"3b25ae46-e0c5-46d4-8d9c-769a91948c83","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":157,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"66d4fa2c-6e5b-4378-99aa-91240039e650","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":157,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"bb69382d-1604-4b47-84d7-3bdad93eccb1","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":157,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"282d0788-589d-4c00-818b-45ba02841de2","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":157,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"62bcf3a5-cf7f-4ebb-91a5-bd2355e0cb43","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":157,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"0e11dc4e-eec4-4a77-bf0f-44e8f6dddaad","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":157,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"6b74333e-1830-428c-b0b0-45a288d6df40","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":157,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"6e62f948-e27e-45bc-8fae-85e99de70a61","block_type":"box","text":"with the rules of the Commission. As a result, the por tfolio turnover rates of a money market fund will be relatively","page_number":157,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"7c3b7910-52a6-4553-9a3a-179ae30d778f","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":157,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"3639ed6c-858d-4cd3-a102-2d15c254af8c","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":157,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"7ba2c7e1-7149-4ce3-b011-c5319d28937d","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":157,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"a36ac0f1-9caa-44e7-8389-cf09052fd826","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":157,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"f959f842-965f-48df-b68f-eb4c84dbc6e0","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":157,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"26aea24e-b0de-4bba-a4cf-a8e833fa9300","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an under taking from issuers of commercial paper or dealers","page_number":157,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"6dcdd9de-54d4-40e5-a7d4-4e68d32423dd","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":157,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"f8b4b2c4-45bb-4179-a13a-1803f0a36562","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":157,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"a4179c26-a29f-428d-9b21-c2c84ee9d5ed","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":157,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"cfd1219a-d382-45ad-873f-0eeeba618c15","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":157,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"722dce3e-23b2-4c85-8a43-8776dcf6fb4b","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":157,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"2c6735aa-1128-412c-b8a7-31d3d7b8dea7","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":157,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"9cf6889d-f6fa-4257-aff9-ef0f25edb078","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":157,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"25a7b3ec-8f48-467d-9391-129c448fceeb","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":157,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"0309d5e2-dbec-4c63-b72d-d56a68a4a8d9","block_type":"box","text":"These factors include: (i) investment objectives or strategies for par ticular accounts, including sector, industry,","page_number":157,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"85365f0c-7e17-4ff4-80e3-394850a58b33","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":157,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"0fdbb6c7-c50a-4d5c-869e-eaf7262af928","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":157,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"2d6d69bb-687b-4670-8147-af8226400e30","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":157,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"b956306a-0d73-44f8-a579-c66f80e563ca","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":157,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"a355d86b-ec0e-4f24-a17d-db540ed0a0bd","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":157,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"e62ec906-4e4a-4463-8219-0c023eea8ec8","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":157,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"3657a5fb-594e-4d52-98ae-76787ffdb7bc","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater per formance compensation to","page_number":157,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"bd1f4c51-a738-417e-bbfd-2779387803e4","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":157,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"4836da47-e849-4549-b0f7-884a9ee3ab3f","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":157,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"7bf9fbca-e32c-4451-88d0-f6f2eee0bfac","block_type":"box","text":"or (v) to manage or equalize investment per formance among different client accounts.","page_number":157,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"f9d9e86f-a0f0-4d58-a186-aabe5a87e2f4","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":157,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"2f319463-3e55-478f-b254-2a4bdd3a9eb2","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":157,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"5bf0e824-7c80-4dfc-a528-053c9b8d5629","block_type":"box","text":"accounts and compliance constraints.","page_number":157,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"5c76d0ef-265e-4084-8e77-ba92e902ca3e","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":157,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"0c564115-6fc3-409f-a606-d09c864efd6e","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":157,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"5379d6b8-86f0-4ffc-b4be-521b9d758624","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":157,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"b40772b3-c31a-45b6-a01e-23b886bf3183","block_type":"box","text":"among client accounts over time, each por tfolio manager or a member of his or her respective investment team will","page_number":157,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"bec67024-c36a-4c4e-97f8-5176a96773f9","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a par ticular offering with respect to eligible client","page_number":157,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"ae49c873-b873-492b-bf43-a06f4eaef802","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":157,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"cb29703c-ccf2-47a7-8405-269c2e4d5c9a","block_type":"box","text":"eligible for par ticular client accounts that are managed by por tfolio teams who have indicated interest in the offering","page_number":157,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"ca1c664f-69ec-440a-9988-20ff93332283","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":157,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"7107116c-6f9d-4be7-9f68-8d4f2486b47c","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":157,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"b51fb81f-54ea-423a-aa18-4f80a00692bf","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among par ticipating","page_number":157,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"09854439-9018-4dcb-9344-b9a41467e070","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":157,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"b8daaef7-abfd-4dde-b441-59666a0b9fd0","block_type":"box","text":"allocated among all accounts for which the investment is eligible, por tfolio managers may rotate such investment","page_number":157,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"a96f3cb0-ea1c-4707-8eee-8dfd95a684f0","block_type":"box","text":"oppor tunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":157,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"eb0ae036-2012-46cd-91d9-a5a26199a328","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":157,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"ea41567d-41a7-4a7a-b1e0-6c8b804bbdde","block_type":"box","text":"clients may be used as well.","page_number":157,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"7eb2759e-c0ee-4c0f-b3cd-0f41bc4086b1","block_type":"box","text":"II-127","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"505a9d49-c6bd-4347-b222-bcaa30f9da94","block_type":"box","text":"NM0926U-5977728-157/232","page_number":157,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a9a3a3a0-12a0-421f-8f28-82f2d2ada32f","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":158,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"274d80aa-a3be-49db-9bee-b5f703de8b24","block_type":"box","text":"the same securities at the same time for different clients based on the par ticular investment objective, guidelines","page_number":158,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"1cd7fbe5-627f-4032-849a-354a5717a2bf","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":158,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"9407a493-22d7-4c10-b8bc-3662bf790cee","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":158,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"7a0f06a1-7b13-4f78-90bd-49aaefa03306","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":158,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"6ee61e29-4cb0-42f8-a811-aec9cbdd9ee0","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":158,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"f59577d8-021a-4ecb-90b1-2ec72967d905","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":158,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"b4d6e07a-2324-446a-aae4-6d0722f76288","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":158,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"c71e090d-ea8b-4880-ad86-3d1463e694df","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":158,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"2b54f9c9-268d-4260-a4e6-713d3c7ca2d1","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":158,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"2bc6d2c3-a801-43b4-a188-cb23d1bd4b2b","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":158,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"3f6dbd6b-ecf3-4042-9dd8-d500b762dbdf","block_type":"box","text":"In cer tain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":158,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"77fc7e7b-8ccb-4f51-8472-c7ca22f7ac6b","block_type":"box","text":"aggregate cer tain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":158,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"03554cb5-09d7-43d4-9b9c-10c32acade2e","block_type":"box","text":"contemporaneous trades for client accounts under management by the same por tfolio manager or investment team","page_number":158,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"c5594a97-4f6f-414b-90f4-cacf099f5c55","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":158,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"bb479fb9-a76d-41c5-92a0-c227abf08e27","block_type":"box","text":"oppor tunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":158,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"cd7ad023-1510-4f38-91b3-b70a9d016163","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":158,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"8eb6f402-04d1-4755-9870-b314f22f101a","block_type":"box","text":"par ticular por tfolio manager or management team is filled at several different prices through multiple trades, all","page_number":158,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"4c32c108-3b65-42e4-acf4-7341ee2466b3","block_type":"box","text":"accounts par ticipating in the order will receive the average price except in the case of cer tain international markets","page_number":158,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"81d891d5-45e4-4b92-a7f5-d68ed46deb45","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":158,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"d29f3954-0c55-4283-a381-a79c778eaa24","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":158,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"af50e6c0-1898-49f6-a176-7f4c210e5446","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":158,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"e0ce4cdb-1a16-41f1-9b9e-55297814dce5","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":158,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"541a382d-323b-451f-8e57-7f900b050ef7","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":158,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"75e3ce18-85e1-41f2-b61b-3ab11744b952","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":158,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"524003cd-6a01-495c-a868-3f45a5942d3e","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":158,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"a5e67cec-b81f-4828-8750-d2176a8c8a01","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":158,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"dd22b411-3a1e-4cb5-9768-10ccc3670f85","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":158,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"2f8a12fe-574c-4543-9aed-b68543022005","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":158,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"58cefc70-753a-41df-bd11-7b9a736404e0","block_type":"box","text":"Investment Company Act. In no instance will por tfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":158,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"bfac99f6-7f2f-4a92-8e0d-b6039b231db4","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":158,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"9dc45d02-21ed-4d68-b441-86e0ee0e6afc","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":158,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"f330b116-6fcf-40c2-bdb9-07c138ac23c6","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of por tfolio securities of a Fund and","page_number":158,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"b49cc840-a699-4b95-8158-cfd899a05bf0","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":158,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"67b8d702-800a-43ab-81c0-84d946614439","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":158,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"2785edb0-db9e-4d19-9c31-b026ec6a462e","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":158,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"ad82e7bb-ae64-4773-8be1-d0d759d07467","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to par ticipate in volume","page_number":158,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"2616fe98-9cd5-4b01-b179-01a3610e3740","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":158,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"5bebcabe-71c7-4a85-af01-dce6ff94a720","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":158,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"f301e091-0db7-4c8f-9bb6-6517517cff25","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":158,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"84a5d7a9-d984-4348-bad1-69051fd2ff8f","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":158,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"61c1fdb5-3c5e-45cf-ab86-b9f6f16fac37","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":158,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"e5f742d9-817d-4cf0-967f-3b842b43582b","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":158,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"7a60454b-8ff9-48e2-b38c-299b800b9327","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":158,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"feed10f5-38f8-4d5d-b463-4dd2a24c6a2c","block_type":"box","text":"Portfolio Turnover","page_number":158,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"ae9d2321-975c-455b-a165-745560f3c15b","block_type":"box","text":"The por tfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of por tfolio","page_number":158,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"7ba4a4b0-1d7b-46ec-a21d-62bd4b460705","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":158,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"427dd5b0-b1ee-4374-b695-f0b41b17c82f","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the por tfolio during","page_number":158,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"0402e3a5-bb77-4b7d-bf63-926f8d20d79d","block_type":"box","text":"the year. A high rate of por tfolio turnover results in cer tain tax consequences, such as increased capital gain","page_number":158,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"13ec0155-ae07-439e-8618-d656440f70b2","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":158,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"9cea51e6-4a9e-4d24-850c-3979af2c90e0","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":158,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"0fb84c85-4f1e-49eb-858e-8cf995e5fb9d","block_type":"box","text":"II-128","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cb9d85e4-8e47-456b-9c51-762fc56da7da","block_type":"box","text":"NM0926U-5977728-158/232","page_number":158,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"925db068-f99b-40db-8ab6-a0e56f696f8d","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":159,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"44df38eb-9a85-4f21-9542-d38af47e4c49","block_type":"box","text":"Dividends","page_number":159,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"8142fd49-1472-46eb-9b37-b0aafbcda874","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":159,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"03a61751-b416-45af-8ebf-08165585338b","block_type":"box","text":"investment income are paid as set for th in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":159,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"78133314-78de-45db-b248-13f036d8ae30","block_type":"box","text":"realized capital gains, if any, as set for th in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":159,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"6cc81ab9-c213-4242-93d1-aa995fbe0738","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that cer tain","page_number":159,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"dc7f868c-07d6-4399-9c3a-fdef78787be8","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":159,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"4abb33db-4dcf-46dd-b300-845210b18b8a","block_type":"box","text":"net income from cer tain foreign currency transactions, such income will be distributed at least annually.","page_number":159,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"801d24ac-3402-43a0-aae1-05922f99d682","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":159,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"6f96c332-778b-483c-9416-87ffc629cf8b","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":159,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"71faa62a-a2c7-4252-af19-5f4b74ae4c8d","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":159,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"f3b058d2-918b-4ee2-b47e-ac3f4ecf8b55","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":159,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"54c66de2-c627-4a27-851a-38e4c800bd5f","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":159,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"482cb93c-cc90-45ab-837e-3d011619fe79","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":159,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"f4d93ffc-72f3-4c50-9c33-a0105556e48d","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":159,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"4e58e950-1f22-49e8-9c40-3137fe86ff32","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":159,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"8046b716-c12d-431e-8479-5253c9b3a17f","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":159,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"6a953529-c8c3-4669-9aed-4b89a333406b","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":159,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"c967b220-74d8-429d-8c1b-3dc380f645e6","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":159,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"da36093e-ff6b-40a4-bffd-f1fd83aae688","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":159,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"ad5a9f0f-9c00-44ea-aa04-3f1abe8dfd0d","block_type":"box","text":"Taxes","page_number":159,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"c42f3796-b81b-4d71-9d71-7819d07a1f02","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":159,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"a926246d-0fa3-4764-99d7-fe15962b33c3","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":159,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"f48ce372-7f27-4160-9dac-b384b0691a08","block_type":"box","text":"U.S. federal income tax on the par t of its investment company taxable income and net realized capital gains that it","page_number":159,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"e16c9041-3759-4ba6-8d03-ec2fa5d2e4a6","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":159,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"73191ea1-8af3-44df-9cd8-2c43855ed914","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":159,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"cd4e5c5e-9eac-469f-8cb4-867e6efbedc7","block_type":"box","text":"company, a Fund must meet cer tain requirements regarding the source of its income and the composition and","page_number":159,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"0d26d248-3f19-4661-95cb-c9fdd060559a","block_type":"box","text":"diversification of its assets. See Par t II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":159,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"0852b8c7-8da4-4953-a15f-95f3db221f35","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":159,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"676b1ab0-0993-4428-b8ff-7e2cfb6ae36a","block_type":"box","text":"underlying assets of the Master Por tfolio in which it has invested for purposes of satisfying the asset diversification","page_number":159,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"22225fdd-e46e-4925-bc5e-3d93fc5def4c","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":159,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"c693db98-8c15-47ae-a3ce-e824f87cbe6d","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":159,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"226d4937-ebd2-4e6d-afd2-6cb8af0c396e","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of cer tain assets, or by","page_number":159,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"3005302b-c48b-4d39-b20c-6036cf761f0e","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":159,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"394be6a6-5133-4bf1-a035-2409a9bc3d28","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":159,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"f6ad7a6d-78fe-4b21-9e05-2803561eaf9e","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":159,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"2986cec3-5b88-41df-9a54-94c05c18935c","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":159,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"10235ab3-30d9-4101-9284-a5e32b683bc4","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded par tnership. A Fund’s","page_number":159,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"ba0c0a36-686e-4cbf-8214-7eab054b50d9","block_type":"box","text":"investments in par tnerships, including in qualified publicly-traded par tnerships, may result in the Fund being subject","page_number":159,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"bba50055-c876-49bd-91fc-f8f57ae71854","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":159,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"edc71db8-c164-45a4-bc20-2104274ff166","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":159,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"6f1705e6-bf7a-4357-9014-55d4c27f3f0c","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of cer tain relief","page_number":159,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"7a241644-8cba-4c27-9c6c-5b055b75e90f","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":159,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"8faf3e65-565d-4021-ba28-d3a4c91183ab","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":159,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"8e393b7d-0130-4913-bd53-87c9331c4629","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":159,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"bf236b3b-14d1-4389-ae00-614b20363fda","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":159,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"374b3a81-081a-4955-a2f4-b8d75b66cca9","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":159,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"680588ab-d07b-42af-9320-889d66ce8e27","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":159,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"64306ab9-5147-4d10-a312-1f6d155bdca2","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":159,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"d7d11f2d-af07-480b-9f9b-a112fe1044eb","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":159,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"978b4d93-ec1a-4902-8c48-6657d6e2f455","block_type":"box","text":"offset gains in another, and the requirements (other than cer tain organizational requirements) for qualifying for","page_number":159,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"f95cc47b-a39b-4038-b60d-3080ed4c71db","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":159,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"732522a3-5d4d-45ca-8a0d-a835a3abf021","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":159,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"ab0f8e61-72bd-4826-9843-2efe193fcacc","block_type":"box","text":"II-129","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"dc501624-a15c-4cb4-bcb3-d735994830d8","block_type":"box","text":"NM0926U-5977728-159/232","page_number":159,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"57ddd2c2-513a-4633-a876-1c11ce96b5e0","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":160,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"3213cd3e-0e32-4434-aa61-70b07cadaf5e","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":160,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"82952d0b-1713-4cf1-b3cb-e02c9547a8ab","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":160,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"bdb3baa3-8e55-4e2e-acec-8c00743e7bcb","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus cer tain undistributed amounts from the","page_number":160,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"cb6d8302-a31a-4909-8589-0071e5420951","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":160,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"c0648607-c2f1-46ad-8783-3b5a4d3cd7dc","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":160,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"8da0dc99-3ea2-423b-bc0c-f3061122e65a","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":160,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"f393ef86-5b6b-4855-af71-c701204243be","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":160,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"03ddbb5f-53f0-48ca-bee9-03fb05fd35bc","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":160,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"7af8aeff-655b-41e9-8e62-a6a1b2f123fb","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":160,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"cdd123c5-789c-4320-838c-3199d9751ef9","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":160,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"712cd6f1-882d-450a-9712-9ad9f79872d3","block_type":"box","text":"limitation.","page_number":160,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"12e633ed-0f60-42ee-a9c2-0db5ed72b510","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net shor t-term capital gain over net long","page_number":160,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"32f2d6ba-9830-4ea5-9600-0631c539de63","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":160,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"47c521f4-bca2-4320-a39f-34b0c22c02bd","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net shor t-term capital loss (including","page_number":160,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"630f75ab-3305-4227-8e39-cf8ec8d56163","block_type":"box","text":"gains or losses from cer tain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":160,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"aa020885-62af-44cd-99b0-58bf5ab5158c","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":160,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"b18d1a4f-4cce-49be-a197-98d19a60018e","block_type":"box","text":"Distributions paid by a Fund that are repor ted as exempt-interest dividends will not be subject to regular U.S. federal","page_number":160,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"2bbc3bb8-115c-4b16-9361-6e5af129afc3","block_type":"box","text":"income tax. Cer tain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":160,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"fbc721fe-d068-4e30-90cc-0abf4d16cf53","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the por tion of ordinary income dividends constituting","page_number":160,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"fb855846-87c2-436b-804d-c794e011bb51","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":160,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"51fa6032-103d-4967-9a2b-89444c666a7c","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":160,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"76f49c3a-3cb8-4ff8-9f04-97648263caef","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":160,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"226fb6d2-93de-4aad-9522-a35b7336faef","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of cer tain","page_number":160,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"42781a02-4bb7-496e-85a1-a5f4e6182334","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":160,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"b2c3bd9b-f46c-4eaa-9841-9e854ad3b51b","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":160,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"0398a023-4298-441f-960f-271e54560e79","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":160,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"69c3c136-2ad6-46a9-bd84-ba02eb763b44","block_type":"box","text":"are derived from income on debt securities, cer tain types of preferred stock treated as debt for U.S. federal income","page_number":160,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"7cd91dd5-9213-4163-aef1-5f5c23102e82","block_type":"box","text":"tax purposes and shor t-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":160,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"d0e6380c-527a-4a7b-92cd-807efa6868fa","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":160,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"eb778ea2-628f-4650-ae61-8a0b85a1bbb8","block_type":"box","text":"constitute “qualified dividend income.”","page_number":160,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"6effbb4e-34d6-4b23-b48b-bebfb6388ddd","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":160,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"cf875315-04b0-4245-8a32-117bee09ee34","block_type":"box","text":"proceeds) of cer tain individuals, trusts and estates.","page_number":160,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"bdd95c1e-a8b1-4a48-95d1-4be55dab24ac","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net shor t-term capital losses) is not","page_number":160,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"30f7b8c8-6ab4-4d8a-9546-89a60166db86","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":160,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"331c65a9-9cad-41c7-b971-91058deaa748","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":160,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"24858a22-ed64-48c6-8547-6b88768f3d14","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":160,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"75c18b22-e85c-48e0-9c79-458c3feb69ba","block_type":"box","text":"income, as long-term capital gain, their propor tionate shares of such undistributed net capital gain, will be deemed to","page_number":160,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"ab6770f6-9ef5-494a-99da-a1e802cf9a4f","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":160,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"7abba936-9b34-4313-b362-cc9b4c8c073c","block_type":"box","text":"exceeds that liability) their propor tionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":160,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"7e1d68e9-2870-4764-b6b7-7661ec26e3b9","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":160,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"456b9a49-7c17-4f0c-b4bb-22fab806cb39","block_type":"box","text":"against their taxes.","page_number":160,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"70cdde58-a06e-4947-8feb-f263c4b55a90","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":160,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"2d337153-7178-48a8-b21b-e512554bebaa","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":160,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"b15e88b6-7f21-4513-a7e0-9f3a6f4eecae","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":160,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"ad5b6afd-86dc-4d3c-8062-31c3e70d4d55","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":160,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"d8a3aba9-4b51-41ae-91fd-8e1952826637","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":160,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"a2b46322-f119-4e71-a68b-609153e62a28","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":160,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"162225eb-0da0-433b-9152-44bab0a6c871","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":160,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"3bbe732b-bb08-4ba4-8b70-957bc8aabbfb","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":160,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"2400303f-4416-4f40-9132-1bb5fe1e1be9","block_type":"box","text":"dividends received by the shareholder.","page_number":160,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"87e92e30-9728-46c8-bc08-dc391a8a89fe","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":160,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"fdc6802a-b442-4b0a-985c-44ed2a7d2477","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":160,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"324beb2c-62f3-4c65-9d6a-1c1214c001e0","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":160,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"457e0df0-c61c-4d72-b3fe-a4de706cfc77","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":160,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"d0d86eb0-8a03-472e-8bdd-5feb6c969eb2","block_type":"box","text":"II-130","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6f67a58f-0a72-480d-bac9-15ef1fdd3159","block_type":"box","text":"NM0926U-5977728-160/232","page_number":160,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a9abca78-b3d7-428d-82c3-5302d0e9a713","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":161,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"c057e897-0b7d-4437-a639-ed282d6f9f6c","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":161,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"e33400f9-5e9e-4ea5-8df0-6b1811beed2d","block_type":"box","text":"calendar taxable year, if the Fund repor ts more capital gain dividends than it earns in such taxable year, then the","page_number":161,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"8111ce79-b7a0-4a8c-93a6-18845a15e044","block_type":"box","text":"Fund will reduce the amounts repor ted as capital gains. Where possible, such reduction will first be allocated to","page_number":161,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"37a5a26f-9ee2-427e-9715-bccd97eeb928","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":161,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"e1aecc2f-2793-487e-88e1-0e4e20ce71cd","block_type":"box","text":"taxable year, cer tain net capital losses arising after October 31 of the current taxable year, and cer tain net ordinary","page_number":161,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"affe0816-8859-493d-abf6-defd1edb246b","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":161,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"14ab936f-cde2-4b6e-a3ca-17af3e818b37","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":161,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"4ca85ab7-7df6-4f1f-92e0-9029bea9371c","block_type":"box","text":"taxable year.","page_number":161,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"092aa488-0f23-4252-8360-c83266c8f9ac","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":161,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"eedcebb1-71dc-4b7f-921a-d1167696aa73","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":161,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"2a5bcca7-8ff5-4519-a234-5751021798b0","block_type":"box","text":"basis in the conver ted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":161,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"7477675c-6818-45f2-ae8e-eea6a175fb5a","block_type":"box","text":"holding period for the conver ted Investor C Shares.","page_number":161,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"860924ca-8bb7-4738-a2a8-c7311ee8c605","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":161,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"c80c6cb6-7405-4dcc-af90-b87beefa7c6e","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":161,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"f60a8ccc-faa4-4226-8a9d-a047c797e8be","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":161,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"4d1e8bd9-8603-4c75-bae0-aebe9619476b","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":161,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"8f59ceb6-4107-446f-8987-44ac292c778e","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":161,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"a9fd7382-ee34-44fa-8e78-7699e249dc2d","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":161,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"a9ae494f-474a-43b7-8357-4d0e83ffaff7","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":161,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"7d72d2b8-2c18-4abb-b43b-9b81239458b7","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":161,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"f87c2ee4-e368-48f3-b0cf-503de8bbc681","block_type":"box","text":"generally be treated as shor t-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":161,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"0d12d614-c1de-4f1d-8821-2adfd9819688","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than shor t-term capital loss, to the extent of any","page_number":161,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"8205420d-9613-4fc3-80c9-98d1d8a1869f","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":161,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"fcfc1221-1351-40f0-80fc-91556d92b26c","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":161,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"c6680254-da2f-44cf-a265-151bda9c6589","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":161,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"879113b9-64c8-40f3-b61b-5f37cbcf3583","block_type":"box","text":"special tax rules that apply to their investments.","page_number":161,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"e8234792-632c-43e6-80f4-1827a9915419","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":161,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"5ff5ee1a-1e86-4555-b5b1-ebe7086e6efa","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":161,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"83b597e2-bf10-4444-b9ca-747fd8900340","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":161,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"c6ed8a85-0eaf-4066-b6e2-c6e9dba1e4c4","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":161,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"f081fce7-0764-44d1-a65c-4f930b67f243","block_type":"box","text":"A Fund is also generally required by law to repor t to each shareholder and to the IRS cost basis information for","page_number":161,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"8a038aa7-9c6f-4d08-a0e3-167adb0135dc","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":161,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"8353aedb-404a-46fc-84d5-8f3eaf607dd8","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":161,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"a229d1ad-0a7e-4211-a9ab-c21a5896b5ce","block_type":"box","text":"long-term or shor t-term. The adjusted cost basis of shares will be based on the default cost basis repor ting method","page_number":161,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"f2a9b104-9239-4e2c-a73d-c3bb65880276","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":161,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"ff311207-c5c2-4d15-a39f-7c0ee7eef7a5","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":161,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"ca001279-9406-428a-89d7-53b8949f55e2","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":161,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"6dcd19a2-05fa-4f48-834c-2b2f1b2266f4","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis repor ting","page_number":161,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"fea4e580-378f-446a-8467-ce819157961e","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":161,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"9497605f-8621-43a6-b425-0df4196baa6e","block_type":"box","text":"apply, but the Fund will continue to repor t to the IRS the gross proceeds received by a shareholder from the sale or","page_number":161,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"5b9bf629-b0f7-4a41-8d7c-d152bf21cd61","block_type":"box","text":"redemption of such shares.","page_number":161,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"3da29f1f-d582-43d2-89c2-014812a40722","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute por tfolio securities in kind for the","page_number":161,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"20b3d35e-3788-4dc8-af34-b42f71c690d6","block_type":"box","text":"purposes of por tfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":161,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"ec2182a8-1079-4dad-a9d2-478a4e700110","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the por tfolio securities it distributes to the redeeming","page_number":161,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"b6ae6ca7-42ab-48f1-918c-ec9c16e9595f","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":161,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"8c1a88aa-494a-428c-b489-146bdef1cf13","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":161,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"31d1e1e2-cf54-4da8-b523-806a52608f43","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":161,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"c663eccd-cb22-4d68-a5b9-e89bca980f58","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":161,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"dd9cf1e2-7501-4879-8f15-87fc86cdaafe","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":161,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"ed21f44d-b8ed-4462-a0d5-7e12b628526d","block_type":"box","text":"Cer tain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":161,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"c8158da9-2ef4-4491-a641-41e5752c0b33","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":161,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"29e4796f-c060-4a08-938f-12b87798a4e9","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":161,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"ec6a6b81-ee53-4d94-a0e4-920aa590d388","block_type":"box","text":"realizes from its investments. As a result, a larger por tion of the Fund’s distributions may be treated as ordinary","page_number":161,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"76f54c70-4dec-4dd6-bcd7-b3a4ba1b8845","block_type":"box","text":"II-131","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"419966d6-0a51-4f38-8896-de1355b97001","block_type":"box","text":"NM0926U-5977728-161/232","page_number":161,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"67bb43e9-e51c-4990-94d7-307e81156c3a","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":162,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"82ab028a-ab20-4320-9c47-73cc931b3537","block_type":"box","text":"(and, for purposes of the 4% excise tax, cer tain other dates as prescribed under the Code) are generally “marked-to","page_number":162,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"06da6311-762f-4e20-a2b3-5d5eb88d058c","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":162,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"63dfe9e8-5d34-40f5-aa6f-9cec2cc420f3","block_type":"box","text":"considered 60% long-term and 40% shor t-term capital gain or loss), which may increase the amount that must be","page_number":162,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"8f5b1369-2198-4d97-a4e4-d45a96df851b","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of cer tain","page_number":162,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"dd5bef3a-dfe2-46cc-85be-64194d5f1f5c","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":162,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"bdec263f-ee1f-48ed-a03d-e766065a34b1","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":162,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"13eb7fb1-92ba-40f2-8632-3be5022238a7","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":162,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"fc11a644-f9ae-41e6-a155-45e4c6c1478f","block_type":"box","text":"Cer tain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":162,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"27012938-2026-44e9-ad9b-adff39b7281a","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":162,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"8222cae8-a0cc-4eb9-8fad-795403b25124","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":162,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"3b94f8ef-e585-4558-b0af-797865289e70","block_type":"box","text":"on a section 1256 contract is treated as shor t-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":162,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"8149711b-48a3-48b7-8c43-48271afdbc7a","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":162,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"c4c7acde-610f-4cc8-b9b5-a2e4bfd5e14a","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":162,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"7c615032-fec2-48c3-b104-b87cc8f10247","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":162,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"9d8177d7-949d-4d02-9acd-48b90501beed","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":162,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"4db19d21-83bb-4d87-af34-0ef1f2e47546","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":162,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"a20955f9-5337-48bc-adcd-82322c161e8f","block_type":"box","text":"Cer tain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":162,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"3bf2de97-12dc-4dbd-ab36-b03d8913cae8","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":162,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"1b91f800-7142-42c5-aeaa-8d5ac5c0cfd5","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a por tion of the excess of the stated redemption","page_number":162,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"c94a61b7-f0fb-4c29-9a2c-19d20df9cbbc","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":162,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"b347ee14-722a-4be5-9b44-83b7778f9fe4","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":162,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"745d55a4-dbca-47df-89a4-7b4dfd5bcba7","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":162,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"78111b24-f189-4ef4-aa6b-27858eab17f3","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":162,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"bc11ff8f-3784-4444-b700-e0fad91fe879","block_type":"box","text":"currency denominated or referenced debt securities, cer tain asset-backed securities and contingent payment and","page_number":162,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"59f7e333-5c92-4be7-a577-54cf5fefbd29","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":162,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"115a5eb1-d4f3-4260-9288-7fbc3c26bd3e","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":162,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"bee7d53e-4fcb-4dbb-ae8d-47bf15f127bd","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or cer tain foreign currency options, futures","page_number":162,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"e6b840a3-35cc-4954-a38a-084b7a8aaab4","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":162,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"314dec5e-c558-4917-9915-46debaac8932","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":162,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"eaa72512-4a8d-41ee-a103-ccfddbccbe16","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":162,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"b1500601-d3e8-4c54-93a3-6d7996ce7f89","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":162,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"0d8b147c-c036-40e4-ad18-c6c90e35ef76","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":162,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"eaa77477-a99d-44a4-bb48-ef6f6f1ed7da","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":162,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"10f1cf53-5d90-4490-964c-ac9867a44593","block_type":"box","text":"in subsequent taxable years.","page_number":162,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"25e269fc-7a84-46ea-ab8c-5160479738fd","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":162,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"dd9d417f-0d8e-42f1-8fd6-19ae954a7c22","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":162,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"62898922-3abe-4474-88f0-f36c044c10ab","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":162,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"7a9a9660-891a-4ad9-a64c-5ca7460d24b7","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":162,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"f0edc3a5-ef31-4c29-8ed3-be6bdc2b1b1a","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly repor ted as capital gain dividends, generally will","page_number":162,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"a2ca72cb-7930-4bb3-adf2-756520879d4e","block_type":"box","text":"not be subject to a 30% withholding tax, unless cer tain exceptions apply. Dividends derived by a regulated investment","page_number":162,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"983f0690-59cc-4de6-90c6-f1fc56fb7551","block_type":"box","text":"company from shor t-term capital gains and qualified net interest income (including income from original issue","page_number":162,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"9407ec91-6fa5-4b87-81dd-1c7f5a6e0df4","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":162,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"88e3e052-b045-4582-ade2-27d6800573be","block_type":"box","text":"extent properly repor ted as “shor t-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":162,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"94f31f69-0817-40e5-85b8-7613829164e7","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to repor t such dividends as interest","page_number":162,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"c22daaad-45f9-4c38-b39b-2aebc8e70473","block_type":"box","text":"related dividends or shor t-term capital gain dividends. However, depending on its circumstances, a Fund may repor t","page_number":162,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"8ec0ee97-f145-492b-a469-a2550c29c4fc","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as shor t-term capital gain dividends, and/","page_number":162,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"09984343-c8dc-49e8-a796-fb289a399f03","block_type":"box","text":"or treat such dividends, in whole or in par t, as ineligible for this exemption from withholding. In order to qualify for","page_number":162,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"b6f88f81-b6a4-4010-a28f-d461636082b0","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable cer tification requirements","page_number":162,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"f0ef28d4-6c9c-4556-bd3f-798419c6103d","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":162,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"e3d5edd9-e33e-4030-b251-7178591616da","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund repor ts the","page_number":162,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"cbe7fd1c-de06-4d42-a937-34d2f920416e","block_type":"box","text":"payment as an interest-related or shor t-term capital gain dividend. Foreign shareholders should contact their","page_number":162,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"a9808d11-bd21-44a0-90ff-cf7042995c2e","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":162,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"9b268f1e-8ed3-47c9-a2ae-131f42762ded","block_type":"box","text":"por tion, if any, of a Fund’s distributions will be repor ted as interest-related dividends or shor t-term capital gain","page_number":162,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"e990ddbd-d236-4e49-8b6a-2c53938d9170","block_type":"box","text":"dividends under these rules.","page_number":162,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"a7a09269-0f11-41e8-bfb1-fb8e1b7ed43c","block_type":"box","text":"II-132","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b82f149d-e348-484c-811d-074224ee39a7","block_type":"box","text":"NM0926U-5977728-162/232","page_number":162,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3b1ba01d-6410-469b-931c-1426e0c50dde","block_type":"box","text":"Distributions to cer tain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":163,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"40c08f1e-e5ab-4c6d-a1c6-ce1ea1131363","block_type":"box","text":"proper ty interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":163,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"fa367711-1c7a-47f0-81e4-21925dd407a3","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":163,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"63cf846c-cb23-4aee-9de6-8eff13db2fc9","block_type":"box","text":"real proper ty interests (including shares in cer tain “U.S. real proper ty holding corporations” such as cer tain REITs,","page_number":163,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"09ba474e-929c-4614-a7cd-df003694bb97","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":163,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"f50394f3-4cfc-4052-a188-270e2cb18e91","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":163,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"0fa1c12b-cb32-4884-8825-df096b9f518a","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":163,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"530c3504-d805-49cc-8485-f7a88cc4cf10","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":163,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"30279b68-4556-483b-b59e-c021dc3e63f8","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":163,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"47bad811-361a-45d6-867c-09d00cf02b67","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":163,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"81e82d96-811f-4e9e-8259-88b0f3895244","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":163,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"781d1ae0-c0a8-47c8-916e-f013a62d8714","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":163,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"63d71f56-69fb-4307-b070-88a8aa10efb4","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":163,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"ebe56370-b169-4020-b5d8-69d2c6a94832","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":163,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"37ce58af-c2c3-4870-862f-a5a88326c968","block_type":"box","text":"sales or redemptions of shares held by cer tain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":163,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"fea54bf5-f37b-4bc2-8bf8-097612110dcf","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":163,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"a2e4fcd8-3446-4e59-a183-1e071616a504","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":163,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"acb15f24-b8b9-42e0-a890-3cb414588b25","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":163,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"da3ec5ea-70cb-4059-8f27-ecac71065af9","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":163,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"645333f0-f07e-4b5d-aa4a-e51120e97f7c","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":163,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"da990aab-5148-45cc-8fa5-ba75f7c434ac","block_type":"box","text":"distributions made in the form of U.S. real proper ty interests (including shares in cer tain “U.S. real proper ty holding","page_number":163,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"5268c37e-0b62-44ba-b88d-4e0c16365683","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":163,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"83d29d54-2fc6-42e7-8596-e98e3a6d499e","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":163,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"ac3c9001-6291-4f25-a84e-8539a9e45aea","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a por tion of any","page_number":163,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"29d27220-2f7d-4c34-9aec-d187ed3e94d4","block_type":"box","text":"unrecognized gain in the U.S. real proper ty interests equal to the product of (i) the excess of fair market value of","page_number":163,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"63f55a43-8e6c-486f-a038-fb26475e4730","block_type":"box","text":"such U.S. real proper ty interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":163,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"81258e78-9737-425d-a285-ee76b853c5f3","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":163,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"95ccc1ef-433c-4149-a68a-a1ff23d35923","block_type":"box","text":"A foreign shareholder may also be subject to cer tain “wash sale” rules to prevent the avoidance of the tax filing","page_number":163,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"3527be1f-c693-4206-8847-5884d226ef17","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":163,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"a61763cb-07b8-46f9-97ad-bb08f13456e8","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":163,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"bea6f3dc-8c9a-423b-9957-22fcbca491cc","block_type":"box","text":"concerning the par ticular tax consequences to them of an investment in a Fund.","page_number":163,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"08f23007-73ea-486f-a33c-c1963d7469bf","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":163,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"da96a0c5-75ff-457b-a3a7-de63ca2ea356","block_type":"box","text":"items paid to (i) cer tain foreign financial institutions and investment funds, and (ii) cer tain other foreign entities. To","page_number":163,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"df5de897-de81-4219-b271-25322e7cb623","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":163,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"18301d30-771a-4f6a-8d0d-e27b1b175d72","block_type":"box","text":"repor t to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":163,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"8bf58911-68f9-4f2f-a064-8646278f5825","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on cer tain payments made to noncomplying","page_number":163,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"37679a96-9ab9-4c84-a028-3491bc8f0411","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":163,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"e965430a-08e7-496e-a1a4-7c80b4712e0b","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":163,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"c170abcc-0297-444c-9f01-bd7d3ea0c992","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or cer tify there are no such owners.","page_number":163,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"7b87a3f0-a0a7-4b16-82a3-0442fb46a939","block_type":"box","text":"Under cer tain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":163,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"f9c81193-5c40-4d01-8326-588d3c6e87ea","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":163,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"0b22b70e-0833-4163-8bcc-d2a66cf0e1ea","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no cer tified taxpayer identification number","page_number":163,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"1cd9b0cb-f9fa-44f1-bfa5-edb6685d8c1a","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":163,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"8745add4-7b9f-40a4-9927-c596efbb87bc","block_type":"box","text":"account, an investor must cer tify under penalty of perjury that such number is correct and that such investor is not","page_number":163,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"fc59585c-92ad-48b3-8aae-7d60fcd04a0e","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":163,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"2f7cddfc-953d-4636-bfcc-d22936ee58e6","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":163,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"1d5292ed-212d-4ba8-9b89-3d9a66d2418b","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":163,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"cb6efc51-f72a-4c13-943c-6c7e803ec3cd","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":163,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"c546f2b5-18fe-4b5e-a155-19a0745a5df0","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":163,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"a23a96ed-e682-46e2-b426-1159542732cf","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":163,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"aa3dfbcc-de7b-4a73-8c72-b668efe5a877","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of por tfolio","page_number":163,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"6c7d2a57-8236-431a-9085-15f4e53e17c1","block_type":"box","text":"securities are in many cases exempted. That a loss is repor table under these regulations does not affect the legal","page_number":163,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"5ced520a-4d1a-4b6a-a612-34beab66dbe9","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":163,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"786a5442-20ba-4343-ab7a-8292f9ff740e","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":163,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"0fffd9c3-8b66-40bf-8d1d-955b21085d68","block_type":"box","text":"II-133","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f73a7cb2-72ef-4541-bf1e-a6f2202e83c1","block_type":"box","text":"NM0926U-5977728-163/232","page_number":163,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e3a8092b-a41e-4679-8bc7-0ca779a6fece","block_type":"box","text":"Cer tain types of income received by a Fund from REITs, real estate mor tgage investment conduits, taxable","page_number":164,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"922438df-e76a-4ce9-9fda-cde008fab53c","block_type":"box","text":"mor tgage pools or other investments may cause the Fund to repor t some or all of its distributions as “excess","page_number":164,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"1f61732b-e5f7-4940-91e0-62be89aa040d","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":164,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"108869d3-8881-4244-a505-efceb7e676d6","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":164,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"be535a11-6d47-42f3-b098-3416480beab0","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and cer tain charitable entities; (ii) not","page_number":164,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"62af3f5f-8f22-46a2-81b3-3291f2ce5894","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":164,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"a6cea7c2-c3dd-4c77-98f6-71585b33573f","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if cer tain “disqualified","page_number":164,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"999e4525-9c05-4b8c-850a-bb882f932318","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":164,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"609ff6e0-b3e8-4d2f-b386-68db822fdc68","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":164,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"0d386040-e821-4a15-92a4-1c4631a55ed9","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":164,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"d0d694ee-c4b6-4ee9-8466-dba6da60205a","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":164,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"c856f37d-d670-4c56-89e4-9b35df82101e","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":164,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"3815d3a7-d85a-4af3-b619-535b229cb9e8","block_type":"box","text":"investment oppor tunities.","page_number":164,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"d74e532e-64f4-4c72-b040-b25ee930acbb","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":164,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"66acf729-66e0-40d5-a697-59320c5c546c","block_type":"box","text":"imposed by foreign countries. Tax conventions between cer tain foreign countries and the United States may reduce or","page_number":164,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"bb19058d-4605-4bc2-bb91-48aab6135aa0","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":164,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"5be8799b-7451-496b-a7d8-5e6dd667d74c","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":164,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"c5d2e0b6-fb6f-49b9-b62d-046b3d370670","block_type":"box","text":"Fund, subject to cer tain requirements and limitations contained in the Code. For example, cer tain retirement","page_number":164,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"87bf539e-d917-4184-ae2e-489705ac560d","block_type":"box","text":"accounts and cer tain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":164,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"4c1f50c4-3b6d-43ae-a8d4-389e10660329","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":164,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"7cfc3a50-40f8-4478-bcca-8703de5cf853","block_type":"box","text":"respect to a security only if the holder of the security meets cer tain holding period requirements. Both the","page_number":164,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"f910ab98-f82e-48b0-89f9-648bac78074a","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":164,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"c99a04f9-e622-494c-9d3e-67d6c4367ac2","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":164,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"69accf31-a593-4b5c-b022-1e0179c1f928","block_type":"box","text":"the Fund. Fur ther, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":164,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"b694ddb7-94ba-44ff-abfe-12b0c4659de4","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":164,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"5624821d-3f99-49bf-89b1-f3f895b80454","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":164,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"9d10d1ca-6024-488f-a8b6-9f43bf3ed829","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their propor tionate shares of such foreign","page_number":164,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"70267eac-fc93-4422-9f97-0b8eff06974b","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such propor tionate shares as taxes paid by them, and","page_number":164,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"341a504a-408c-411c-b7d7-d24d9f44a013","block_type":"box","text":"deduct such propor tionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":164,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"b03ef5e7-4fe9-4a44-a543-29b38ed1477c","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":164,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"07b5315b-5fcd-4cf0-8f35-a738148712d5","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":164,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"8a270d3e-ab65-4a30-afc2-c5d84ca092ae","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":164,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"1b574422-a353-46a5-a798-db3e97aa6659","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":164,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"24c372f6-7524-4a9c-a824-0aef94199d01","block_type":"box","text":"having been paid by such shareholder. A Fund will repor t annually to its shareholders the amount per share of such","page_number":164,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"5e85e0c9-2817-4447-a20a-bbe6cf20e3fc","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":164,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"338eacaa-04bb-4ccb-9c3e-8f02bd38d94b","block_type":"box","text":"Cer tain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":164,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"fda296dc-5551-40c2-bba0-e80abc9cb351","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":164,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"594201c6-dd63-4fac-9f6d-1a1e46fab015","block_type":"box","text":"allowance of cer tain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":164,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"81665ba0-f038-4297-96b7-04f6eca96435","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":164,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"e770aa8b-72c8-4184-ab42-a24c6106f2f1","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":164,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"eda89001-be66-4afa-b6c6-966d3bf97726","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market cer tain types of","page_number":164,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"67ccd7c0-4f49-41de-90d7-a79c460a8716","block_type":"box","text":"positions in its por tfolio (","page_number":164,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"8eaad12e-03f6-42a3-a909-7a1d58f37935","block_type":"box","text":"i.e.","page_number":164,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"cceef6f9-0097-4bb3-9bc0-5b616542dd58","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":164,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"52ea33c0-4976-442b-82bf-0986d342cba0","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":164,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"9ff231d0-0605-4f71-ba12-c8295ddd8d0c","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":164,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"3c36f888-ab88-4e52-8f66-9506dc9eeb99","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":164,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"463d858a-f065-4b42-9212-9a133783eeac","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":164,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"eff43c5e-99b2-4fd5-b0bf-6a843b613840","block_type":"box","text":"Cer tain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":164,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"b0fc156a-d8b1-49d9-a063-ed9a1071ca98","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":164,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"bda54cba-0825-4bd4-9a51-108f9dd7798a","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":164,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"713812f0-c1f9-472c-a110-693833d2b89b","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":164,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"19f02e4d-d3e5-4e0a-bf79-19718bbf699f","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":164,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"196ee481-6ea5-489d-8593-8d1f1c083c0f","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":164,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"41c84918-5efb-4506-b4f4-cba129f65c54","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":164,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"60dd4bbd-a64f-448f-a955-2df3c526e7e2","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":164,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"863356f1-e25f-42c4-acc0-931b4c459fe8","block_type":"box","text":"II-134","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"80a4bf8d-0108-4ac3-821d-08b9f055ee99","block_type":"box","text":"NM0926U-5977728-164/232","page_number":164,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b8137a42-d7d0-40be-9583-280afd8ad9ad","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":165,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"ba01af20-25e0-4467-a449-52384c715589","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":165,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"92e81e02-a32d-42b1-8fb6-bebda88eda79","block_type":"box","text":"capital asset.","page_number":165,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"32aa9427-b51e-4306-9f9c-f506b0869e8e","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":165,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"3ed1254e-5f2e-4927-9e9f-72e283c1ca9c","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of shor t-term capital gains by underlying funds will","page_number":165,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"07e6e2dd-f81d-40c0-bad8-060acf154606","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":165,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"9468d532-f001-4438-8e84-93a0f0c4ff93","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":165,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"c935b552-cadd-49b2-a9b7-34d5e27c966e","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":165,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"d30890ff-7685-4697-9ecb-f557453220d4","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":165,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"f0a20599-8348-436b-abc8-b2447e2dc1eb","block_type":"box","text":"Fund were to invest otherwise.","page_number":165,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"be835aff-6ab1-4fa6-95a4-16fba257c6bd","block_type":"box","text":"A Fund may take cer tain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":165,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"e22bb5f9-87eb-421a-ac0f-befbf6265975","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":165,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"f9618841-9062-47d6-87b2-de471db26bc5","block_type":"box","text":"income will be “subpar t F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":165,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"b4996172-ce86-4e9e-96cf-2b571625c08c","block_type":"box","text":"to repor t all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":165,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"88f646f9-c64f-43e3-b921-585e33e3cb68","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":165,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"3ad70568-7e95-41b2-870d-6ecd19d4b272","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":165,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"2df3c17b-7508-4a52-8331-85d835a605e6","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":165,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"881077d3-b739-449d-8f0b-f807b5de7b87","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":165,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"9d9a32e7-e41c-4f02-9023-0b31339dd161","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":165,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"738ab9ff-4192-4a60-8391-e6f9ded250a4","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":165,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"f858810e-31f8-4571-af32-e88fc73058ee","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":165,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"7d5e79c3-4c62-4574-b3cb-30bc2ec1ba51","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to cer tain distributions from such","page_number":165,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"ef037ec0-e007-40c3-a268-a6e14b5c411c","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":165,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"0058a550-0b92-4f02-8618-5dccba176ff2","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":165,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"c0b9ba75-6fa0-48a5-9df7-307cd3a85ffb","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":165,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"62770dfe-b024-48ae-add7-c33817d681f5","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":165,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"d851214f-2701-4932-8c01-e88e30b4ea5c","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":165,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"d9f1b84e-665a-40ca-aefc-cdd92331da31","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":165,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"fb9c2e42-8b07-4ea0-9472-e0b8e5c0937e","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":165,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"fda24842-60f6-4b71-8707-da25743ee3f7","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":165,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"608f8bf4-8233-4d41-92e0-e7f385b16e85","block_type":"box","text":"PFICs, but in any par ticular year might be required to recognize income in excess of the distributions it received from","page_number":165,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"f2379374-7944-42d9-9cb7-43b6c99531a3","block_type":"box","text":"PFICs.","page_number":165,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"8447383f-a26e-446e-9054-f8240dd4d84a","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":165,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"c316c40d-0cc4-4d15-a718-c3d5efc804ac","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a por tion of the ordinary","page_number":165,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"51197bb0-6998-4a35-9564-08cded3e51c2","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":165,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"f60c1174-8f53-4e15-b24c-cb1ad3376656","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":165,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"323e07fa-2716-441d-8d8c-e641ccde715f","block_type":"box","text":"the Fund would be required to obtain cer tain annual information from the PFICs in which it invests, which may be","page_number":165,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"48ccf32d-a1fb-431d-ac07-e4479b228a43","block_type":"box","text":"difficult or impossible to obtain.","page_number":165,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"e647b022-71c7-4c9e-82be-0514920ca519","block_type":"box","text":"In cer tain situations, a Fund may, for a taxable year, defer all or a por tion of its net capital loss (or if there is no","page_number":165,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"bc969ed1-cb3e-41a5-a68e-ee7f640aba04","block_type":"box","text":"net capital loss, any net long-term or shor t-term capital loss) realized after October and its late-year ordinary loss","page_number":165,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"a97e5219-1308-4040-ab0b-b499009220a4","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":165,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"9bba528e-b5d1-4362-9364-07bed746f9f6","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":165,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"343b0da3-d9c5-4bec-90f2-be4d145df17b","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":165,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"b6786964-d326-4d46-88bd-cc482797aa39","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":165,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"2ad190b3-aa53-4dbf-a5a9-27340332e1a9","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":165,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"1cf9fa62-ba0d-488e-a7e3-791ed0c6103a","block_type":"box","text":"Municipal Funds","page_number":165,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"9b8ad2a7-fdfb-40b0-a107-575bd8d7a8ac","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":165,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"27d40cd1-15e1-41ed-b5e9-0312a9a1b572","block_type":"box","text":"Code. Under such section if, at the close of each quar ter of a Fund’s taxable year, at least 50% of the value of the","page_number":165,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"2aa4a4be-9e94-40b1-8220-a11f73abf122","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":165,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"e53aa744-c0a6-44b5-9da3-cdbbb07e1119","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":165,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"744bf503-5aae-4b03-b2d1-21248536ad94","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":165,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"83411140-0a72-4b3c-908d-5edc1ebed6f3","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any par t thereof paid by a Fund that are attributable to","page_number":165,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"5043270c-d50d-4368-9867-c30ce49504ce","block_type":"box","text":"interest on tax-exempt obligations and repor ted by the Fund as exempt-interest dividends. A Fund will allocate","page_number":165,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"c704797e-acb9-439a-ac93-6e27367563dd","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":165,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"4e00a9cb-9c77-4854-86d6-b09bb8b036cf","block_type":"box","text":"II-135","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ff7c4f3b-1298-4d97-849e-98ee927afb8b","block_type":"box","text":"NM0926U-5977728-165/232","page_number":165,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"87c8099c-7d76-418e-9cda-af910e15d9f1","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":166,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"ecb15de4-75f8-444a-ad7a-75b249005454","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":166,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"3e9c6440-684d-4af6-8f2f-cef2206fae6e","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":166,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"e1407ada-b0ca-4cd0-bcd5-c8f7abd60348","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":166,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"047bb07a-6ea5-4d83-96d6-bfc074b10ef8","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the por tion, if any, of a person’s social","page_number":166,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"9d3fbcf1-728b-4391-9f75-6fdb3e05ccf1","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":166,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"c62f6dcc-bc80-4bf0-9c0e-53c7236d5768","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":166,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"e6c5803d-ea29-4ad0-9228-589edc6b935e","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":166,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"18e4e5c9-f7c5-488d-a1a6-2178ea9ba76f","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":166,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"c65cab0a-2a8f-4e38-8a12-b67705145436","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":166,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"533cdd59-6210-4403-be27-421658b180d0","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to proper ty financed with the proceeds of an issue","page_number":166,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"12b75d2b-6fc2-46b8-8241-f2030e12fc97","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":166,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"bc72e54d-9fb0-4c25-becc-a8835eac2a9e","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":166,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"69a2d440-cc35-4d9a-a48e-042d2a8c07b9","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":166,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"21e56ee2-1cfa-4679-a857-92253c8ecea4","block_type":"box","text":"constitute exempt-interest dividends.","page_number":166,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"7e630706-c3eb-4cf8-a11a-1fa4e5e3b3ab","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":166,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"8a2f2573-7a6c-465c-b310-19361ec7d67c","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":166,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"3cf581ee-dbfc-44d1-afee-33ba6a1370a0","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":166,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"8eefd9ba-7385-445f-b213-5cca7020d361","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":166,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"68e89458-1e9c-4995-b4c3-8e4a6ccb4664","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":166,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"99876ab8-892f-4a1f-bcf7-0d9efb581212","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":166,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"4e126110-915f-41c4-b109-99eb7b0a3f72","block_type":"box","text":"All or a por tion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":166,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"23c5ab1a-f156-4e4f-912d-e1450d2099ce","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":166,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"048f0877-b4fd-4c9e-8143-05037a88af16","block_type":"box","text":"income dividends received by shareholders.","page_number":166,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"c531eafb-fabc-4c9b-b64c-b980681c2690","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":166,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"573784a3-6a22-4641-8df3-0196df55e3dd","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":166,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"1413d897-6183-4dd2-93ab-e9d2ab60e09f","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":166,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"9a02d60d-3e35-4bbf-a019-ec2801b15a32","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":166,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"e33869bb-2efd-4e67-a9ce-87677ff63168","block_type":"box","text":"the accrued market discount.","page_number":166,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"8c12554b-e3f9-415b-9310-df2542dc0738","block_type":"box","text":"The Code subjects interest received on cer tain otherwise tax-exempt securities to a federal alternative minimum","page_number":166,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"b2024f43-7076-4406-a007-800aa1a51bc6","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on cer tain “PABs” issued after August 7, 1986. PABs","page_number":166,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"7d005268-7e8d-4183-8f13-fbcb207c2e7e","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally per formed by governmental","page_number":166,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"a8bcd736-fb16-4c5e-be52-2518c45490ed","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":166,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"00c36580-bb93-4408-a30b-1611d2af5983","block_type":"box","text":"e.g.","page_number":166,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"cc520a0d-b043-4112-9ab8-33f4fad02417","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":166,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"c7825804-0d3e-483c-a995-1f3bcd26490c","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject cer tain investors in","page_number":166,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"64dbb02c-3e2c-41cd-8735-f0c126dfbb0a","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":166,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"3eab7abc-cbc4-4b2a-a1d1-ca1a763bfcb8","block_type":"box","text":"“PABs” and will repor t to shareholders after the close of the calendar year the por tion of the Fund’s dividends","page_number":166,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"68445148-3bbe-4802-80c5-012950c69d9f","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":166,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"f7283546-98e8-464c-8c07-b3d66d3b451e","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":166,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"143a5fb6-4e3f-4729-9524-9ee0429b586a","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":166,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"3d5339d0-bcec-4d7c-b1b6-f8f8b5251cac","block_type":"box","text":"such arrangements as ordinary income and to amor tize payments made under cer tain circumstances. Because","page_number":166,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"2c74a493-5a20-4e9f-8782-085a746e1a2c","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":166,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"8d5bb8e1-b139-4716-9ea6-34b3aef7ef2e","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income propor tionately, they","page_number":166,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"7fe2336d-e15f-47a0-92d0-0b09ee4bc3f0","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":166,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"93b3c6a8-1576-4112-b754-396ee450db9b","block_type":"box","text":"Please see Par t I of your Fund’s SAI for cer tain state tax information relevant to an investment in BlackRock","page_number":166,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"0fa181f7-00c5-4ab3-9232-0d821cfd7d53","block_type":"box","text":"California Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":166,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"4ebea1d8-3c78-4e87-b7e5-10bd90682ef2","block_type":"box","text":"Oppor tunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":166,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"6679c79e-ad5d-42c3-b952-1152d3fb3d01","block_type":"box","text":"within each applicable state.","page_number":166,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"6510dde9-6b25-4cb6-8404-238a4535bb60","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Por tfolio in","page_number":166,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"9d246995-1f2d-4cee-b27e-6d0c16ab7599","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":166,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"5d59e67e-ecef-43c7-a21f-47449ebe6e0f","block_type":"box","text":"investment companies. Each Master Por tfolio is classified either as a par tnership or a separate disregarded entity","page_number":166,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"a97c4fe4-11c9-403c-9fb2-a65b6f60ae64","block_type":"box","text":"(depending on the par ticular Master Por tfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":166,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"64eaca4d-7755-430d-b5be-9b8d0a6d5a66","block_type":"box","text":"to change the classification of a Master Por tfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":166,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"6206e93a-cb8f-4803-99f0-d14fb7c2dd25","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":166,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"1373d74e-755f-47a1-a533-a089bfd49c81","block_type":"box","text":"II-136","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8656356e-73da-41a8-b288-e22e63ac0486","block_type":"box","text":"NM0926U-5977728-166/232","page_number":166,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3b7a7dd9-4dbc-465b-b47a-0703baf977b0","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Por tfolio and to retain an investment manager to manage","page_number":167,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"f6b559b2-b403-4215-99a0-71a6cc5a4b09","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":167,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"3f930c6f-332f-4c07-942b-822d8dab439f","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Cer tain states exempt","page_number":167,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"41a7ac68-d42e-4f2f-8a2a-db7fb37c96ad","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":167,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"6f29ec7a-a2b4-40b2-8d86-6c2e5dbfc755","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":167,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"6d611620-b830-44ac-8750-8d0a6c227696","block_type":"box","text":"exempt from state income tax.","page_number":167,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"25efe4f9-b9c4-45d1-a512-8164c25a138a","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":167,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"c7a6c2c1-83fe-487c-b569-702db48d26ac","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":167,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"d3c5c520-c2ea-43db-8cf4-59ebeb02b881","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":167,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"5d19be70-5783-466a-8d7b-3d667bd7ba8c","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":167,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"e96204f3-fe5f-4639-905f-e248a6eeeac8","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":167,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"91418a5c-ceb1-48f4-9fee-f75c9af9efe4","block_type":"box","text":"cour t decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":167,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"3e0f8862-8254-490a-82e6-b506868acc80","block_type":"box","text":"decisions may have a retroactive effect.","page_number":167,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"e889b007-cce6-4bb6-b737-fd4fb85a1568","block_type":"box","text":"PERFORMANCE DATA","page_number":167,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"5186c064-2bdd-415d-b6bf-2dfa3d59522e","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":167,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"053ca6d7-2890-4f53-85be-d4ff98a612e4","block_type":"box","text":"applicable, yield and tax-equivalent yield in adver tisements or information furnished to present or prospective","page_number":167,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"47acf7c7-a1e3-40b5-a084-63581afd9188","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical per formance and is not","page_number":167,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"24e71818-6d21-452f-a5e4-5596014fecba","block_type":"box","text":"intended to indicate future per formance. Average annual total return is determined separately for each class of","page_number":167,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"3e59b225-90ee-4ab4-9308-ca9438850f57","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":167,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"705b114d-0e54-4c6c-8b7f-fb1ca7b6eff8","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":167,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"991b3035-38e1-4cfa-8aff-0596a347f2ba","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":167,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"462dde7d-2a49-4c89-aa21-46f7974db1ee","block_type":"box","text":"gains or losses on por tfolio investments over such periods) that would equate the initial amount invested to the","page_number":167,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"61e4e7c9-cf5d-4447-8714-20e16e5f47ad","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":167,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"93664fa0-3906-484b-9312-8c6a14fa6a9f","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":167,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"cabcab26-710b-4c0a-b40f-587910c8a48b","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":167,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"dac213cb-c3bc-4e67-8a9c-4b82a81df8bc","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":167,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"571a6dcb-84cb-4155-a4ab-4fa114f84629","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":167,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"fa45afcb-b469-4b7f-a345-d6f289ba23b5","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":167,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"40eab90b-0a67-44a4-bda6-0c11aa09b4c3","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":167,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"4dda327b-7ae5-4072-aca1-440ed3d77b98","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":167,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"23a18790-7f37-4928-b896-88eae43f9751","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":167,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"3887e19d-dcf9-46b5-9c47-b011ff787087","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":167,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"b883001d-1c49-4d45-bba1-4843db53c7a8","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":167,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"8c095a87-7c9f-47f6-9b0a-0bf65662d0e4","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":167,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"e5f8fce9-8bce-4ca2-8f82-9adc20cc8cc6","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":167,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"533a807f-08de-4eb5-a0e6-58a5a5e0bbe6","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":167,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"7c421bc2-b3c1-4e53-8645-16131ed79d21","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":167,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"2efc3d22-038a-45fe-8806-9d5b303c36e0","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":167,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"a6f43561-6b14-4225-9f44-645bdd9319db","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":167,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"f38b86c1-f931-4bfe-b589-c0acf5c4c7e0","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":167,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"b49c74df-ef47-4f5f-b980-beefdb592a36","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":167,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"7c2729a6-bbea-44bb-acab-b2251f43d91b","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":167,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"e790c3c8-5cca-4007-a68e-5aa6349f9b1d","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":167,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"7e6a2a38-c7b3-47a5-b79e-84526ab0bd0a","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":167,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"48ce3be6-c478-42d8-8e21-c06e5a7b49ae","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":167,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"311b69f7-9dad-43ed-a74d-e548b3ec0617","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":167,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"9a38d1a8-c843-46f4-a663-5186e16b7311","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":167,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"6241ac35-077d-4c6d-9cea-f2e5cf09b7a8","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":167,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"317564da-c817-454d-9597-73cf9dfa013f","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":167,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"ec94d184-26e7-410b-a23e-035dd3c27355","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":167,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"51599a60-c3bd-4a06-a3a0-2077d2fb888b","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":167,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"0112802b-d5df-40fd-97f5-2241384ad901","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":167,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"befe72d2-9824-4bf5-8f4f-e6d89290ad59","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":167,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"efc7fdd4-57e8-4bdc-aa3a-622c9043e469","block_type":"box","text":"II-137","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0e159b76-4903-4801-9f6f-9dfca28fe3ee","block_type":"box","text":"NM0926U-5977728-167/232","page_number":167,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e390af1e-567f-4353-8271-9cf533911dca","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":168,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"de5d8dee-11e7-4b20-b991-ea558b6b7955","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":168,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"e872de7b-e588-4053-9484-ebf8d3aa81a1","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":168,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"8db76f59-bc1a-461b-8692-32dac0ee07ce","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":168,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"1d36ec1d-0f8f-40dd-96a0-67b7572096d2","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":168,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"2a02e730-43a3-4bc3-890d-10d533d4f342","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":168,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"e0d5e090-64b6-4060-ac66-43f4246bfdf0","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":168,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"bad77e3c-5ebf-4875-a4d5-5467b8c36cbb","block_type":"box","text":"per formance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":168,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"b03356f1-814c-41de-99b0-0234829cdc67","block_type":"box","text":"some other amount, for various periods other than those noted in Par t I of each Fund’s SAI. Such data will be","page_number":168,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"5b0317ca-42d4-46df-aee1-e70f980582d9","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":168,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"a333e6f1-5c93-4056-b20c-d5a189e6ffa6","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":168,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"78e17f11-c84e-4811-8bff-aacd8d14997f","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":168,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"26e21999-b450-4169-bdd1-6e22ea055228","block_type":"box","text":"per formance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":168,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"cea30937-41e8-45ee-aa43-3310a2a44465","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":168,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"2d5b3fb1-16ec-45a2-861c-71f777829260","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":168,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"2e46e246-7a1e-498a-bd87-b72d6a5a5f9e","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":168,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"8f21ea78-d834-4bd8-926b-e447bf9a6d1e","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":168,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"ac88bef2-6b49-487e-9d82-113f57c328b3","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":168,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"28fd1d2f-a6c7-4452-8e4e-a2e63112fc9e","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":168,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"fa15f8d4-0430-4811-ae8e-8b23e38b5e60","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the par t of a Fund’s yield that is tax-exempt by (b) one","page_number":168,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"154bfe08-3259-4b4b-b039-0465ae724f4f","block_type":"box","text":"minus a stated tax rate and adding the result to that par t, if any, of the Fund’s yield that is not tax-exempt.","page_number":168,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"88104912-8e9e-4afb-8c2c-731030d3dbb4","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s por tfolio, a","page_number":168,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"320d6ff1-3a1d-485c-8528-955673ec8ef3","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":168,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"71b21396-067b-4481-beab-76a441e7d09f","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be wor th more or","page_number":168,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"10859d8a-8ebe-41c2-851a-0784da42d23e","block_type":"box","text":"less than their original cost.","page_number":168,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"816277c0-595c-4aae-9077-815aacf7897e","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":168,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"bcb537c6-70f6-4865-93d2-2830af98a230","block_type":"box","text":"the case of CDSC shares applicable to cer tain investors, as described under “Purchase of Shares” and “Redemption","page_number":168,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"f0c5553e-9969-49c6-955f-95b8c0ce3935","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in adver tisements directed to such investors may","page_number":168,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"d5d8a73a-0167-4cc3-a2dc-b0199c861a36","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":168,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"c45c8081-72d8-4227-aa52-dd7f53350390","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":168,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"994e8329-e2a2-4538-84a4-ce8a451c1650","block_type":"box","text":"lower amount of expenses is deducted.","page_number":168,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"3bbb204f-e320-4543-85d4-b75a7cab8902","block_type":"box","text":"On occasion, a Fund may compare its per formance to, among other things, the Fund’s benchmark index","page_number":168,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"2e1d4d90-da1e-4673-9bbd-c1d9e6df1ebc","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":168,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"bd3b97e1-6173-4a52-81f2-95865a823ea0","block_type":"box","text":"indices, or to per formance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":168,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"366b546d-b2b1-40e8-98fe-ee2a127edb33","block_type":"box","text":"Money Magazine, U.S.","page_number":168,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"e835e88b-56d1-4303-8976-eed9afd4f29f","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":168,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"5bcbdf1d-8619-4742-895a-f7ec41daf066","block_type":"box","text":"or other industry publications. When","page_number":168,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"2f1aa60b-ab76-40a5-83ce-5f8fc8ca0830","block_type":"box","text":"comparing its per formance to a market index, a Fund may refer to various statistical measures derived from the","page_number":168,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"c1684d45-f45d-44b3-b489-84d2cc42d42d","block_type":"box","text":"historical per formance of a Fund and the index, such as standard deviation and beta. As with other per formance","page_number":168,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"61390803-5791-476b-b5dc-70303a468887","block_type":"box","text":"data, per formance comparisons should not be considered indicative of a Fund’s relative per formance for any future","page_number":168,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"0f92167e-2b49-4c3f-b72e-cccd43020996","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted per formance ratings","page_number":168,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"4aa1ae87-1d02-47db-aeb0-8ae5aa1f5468","block_type":"box","text":"assigned by Morningstar in adver tising or supplemental sales literature. From time to time a Fund may quote in","page_number":168,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"9acaebf7-b74d-425d-85b1-509b19957553","block_type":"box","text":"adver tisements or other materials other applicable measures of Fund per formance and may also make reference to","page_number":168,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"2e301860-3668-485c-be5b-1e810ea87eed","block_type":"box","text":"awards that may be given to the Manager. Cer tain Funds may also compare their per formance to composite indices","page_number":168,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"a13c5747-5c32-4c79-bab2-59b55b03a70f","block_type":"box","text":"developed by Fund management.","page_number":168,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"bda33c7b-948d-4dad-82ac-259bac8c9189","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":168,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"2d10618f-f767-49ef-97f4-9ce84aa381cf","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":168,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"254bf0a9-461d-4be6-86e7-9fddfc7d164e","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":168,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"51062cfa-99b9-480f-b953-c403a4873695","block_type":"box","text":"and risk tolerance, discussion of a Fund’s por tfolio composition, investment philosophy, strategy or investment","page_number":168,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"d91723e9-5f67-49bf-9db9-43c77bcfa147","block_type":"box","text":"techniques, comparisons of the Fund’s per formance or por tfolio composition to that of other funds or types of","page_number":168,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"43c74c52-b3db-44f6-bcb8-c8efce885e1a","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model por tfolio. A Fund may also","page_number":168,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"8cd6f657-94be-4e1b-94a6-defceb5af035","block_type":"box","text":"quote various measures of volatility and benchmark correlation in adver tising and other materials, and may compare","page_number":168,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"ff009158-2216-4d30-87f2-d1fe3677e841","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":168,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"0bd11bce-d11a-4dd6-9190-e9f71d3c07ec","block_type":"box","text":"II-138","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3e4ceae7-8d2d-4c7e-9327-85f104c2fef5","block_type":"box","text":"NM0926U-5977728-168/232","page_number":168,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"329d087d-bf09-4a49-a3a6-015818d9bb3e","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":169,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"97c444cd-7ed2-4521-ad64-98cea59e0168","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":169,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"9ae2fc64-160a-4f89-a922-7797d0e2766e","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":169,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"294d9e57-b21d-41eb-bc91-bccd4c6018f1","block_type":"box","text":"Policy”), with respect to cer tain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to cer tain other","page_number":169,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"bb291fb5-3b68-473b-ad08-00a3980046c2","block_type":"box","text":"Funds, as applicable. Please refer to Par t I of this SAI, which discloses the policy applicable to each Fund.","page_number":169,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"739c961f-2846-4704-b388-9182448682eb","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":169,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"81664e99-ac37-42c8-80c6-38254979a89a","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Cer tain of such","page_number":169,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"30283388-dc15-4e08-bb7a-ef4893e71d98","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Par t I of this SAI, follow supplemental","page_number":169,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"c2ae84c8-b838-482f-a7d3-f2a9adf0d751","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to cer tain climate and decarbonization issues (the “BAIS","page_number":169,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"6c20c069-90dd-4161-988b-faa25ca32f9e","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":169,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"8a18ec02-9f35-4a4f-9ca8-570295dd7600","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":169,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"22508c66-adfd-40b4-b445-5238a6e83801","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":169,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"8d6f8b93-f908-44e0-ac47-c01f8d8f31ac","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":169,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"04b12e2c-90d0-4c4f-ba07-290fea9bdf0f","block_type":"box","text":"addition, cer tain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Par t I of","page_number":169,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"a694a7b1-035d-4095-9c28-6b7379b707a0","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to cer tain climate and decarbonization issues (the “BIS","page_number":169,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"aa9532d6-13a7-4dfb-86ba-64955a8fac09","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":169,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"905a2073-e191-44a7-9d66-07037e631f7c","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":169,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"e0d01b98-160c-445b-be10-f06bace8cb54","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":169,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"c5376b81-5ce8-4485-82f8-75e2a05130cb","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":169,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"01c79bdb-c21e-4f2d-99be-14a47840fa76","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":169,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"4c537bbb-3236-4ddc-90bb-7106e2d6d55a","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":169,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"36281698-723b-47d8-afa9-d08ad320d066","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":169,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"3a7dbb46-71fb-4724-bec9-4e9f038385d7","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a par ticular Fund pursuant to the","page_number":169,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"d5429596-0063-45d8-ab0b-d6204c952c17","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a par t of the","page_number":169,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"f235c0e7-ad19-48fe-8202-8d8c1f979e98","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to por tfolio securities during the most recent 12-","page_number":169,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"0c5d09c3-7393-4110-8b89-a4609dfda09c","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":169,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"1a8ea387-2869-4566-938a-28493fb5d7c4","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":169,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"f62c6b64-f583-41df-8638-c06dd929eaaf","block_type":"box","text":"GENERAL INFORMATION","page_number":169,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"ae64a430-7a98-44f7-a074-db98a72b3d6d","block_type":"box","text":"Description of Shares","page_number":169,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"23243000-8193-4c62-b81d-bcefb2cbaf7d","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":169,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"95e59a66-188e-4e67-b7be-9e6c9866a677","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":169,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"bda9a6dd-8c21-4f8b-9abf-5e53420c6b3a","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":169,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"b86bfa55-461c-4eb0-9a68-655528d0b0c9","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":169,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"0a02386c-6f5e-4f2a-b45a-38c27161c6d8","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":169,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"3e50b6f5-372c-49f0-acea-d64ba0be2f60","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":169,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"36ac61ab-b142-447e-a532-7d4e627e4ada","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":169,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"3719511d-7931-4ee4-b8c6-b85cfc72c3ed","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":169,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"e3f7332b-f8d6-4f18-88a0-d3253d78cf00","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":169,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"b7a2e95b-c074-443a-ab9e-eb4b1a34e0d9","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":169,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"aff825d6-d78c-406f-a979-2ed27e3bbde8","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":169,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"abc23d07-13af-45ef-9257-058fbc240c16","block_type":"box","text":"Common Stock is entitled to par ticipate equally in dividends and distributions declared by a Fund and in the net","page_number":169,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"2250e0bc-b41c-469c-bfef-12d9cb410d3d","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":169,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"f029e89c-6717-45fb-9d63-c5c1dc97e0e3","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":169,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"cff167ec-7f9d-4687-95e3-9f86723b59c7","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":169,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"5a790b12-0e73-4625-bdf8-41c74217d5e7","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":169,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"22eaaa01-2170-42bb-9495-6f892ee886cc","block_type":"box","text":"Cer tain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":169,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"ee579ce2-34dd-4bed-b19e-b6ec3bf493f6","block_type":"box","text":"shareholders of such a trust may, under cer tain circumstances, be held personally liable as par tners for its","page_number":169,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"6120fdbc-debf-409a-b4b5-60f1007d9b98","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":169,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"6303eeaa-88a4-4eab-a01c-c4234f85056b","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":169,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"5201107c-fada-4688-9f72-5def45f4a407","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":169,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"8404d70b-aa48-4fd6-8645-d575a563f783","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust proper ty for any","page_number":169,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"829833af-29d1-43c2-b17d-ecf70c2614eb","block_type":"box","text":"II-139","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"79271c3b-8942-4226-a0ba-ccd8635fc648","block_type":"box","text":"NM0926U-5977728-169/232","page_number":169,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"aa650d95-b74d-475c-a088-69cbeb9cd0fd","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":170,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"889edcc2-f63c-42ac-8208-2f2a682be471","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":170,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"2faed8ec-f8f1-4ae5-8b03-525675cfbed3","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tor t and other liabilities.","page_number":170,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"b2bb44de-3c13-496a-8d17-ee763eda2ef6","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":170,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"0d390427-4b70-4fcf-b49a-8cf29eb31f32","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":170,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"ffa6e2a8-ba27-4d87-a936-68362d6e3bd0","block_type":"box","text":"Cer tain Funds are organized as Delaware statutory trusts.","page_number":170,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"63152eab-80e7-49a8-801c-1c3bdaa7159e","block_type":"box","text":"Additional Information","page_number":170,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"801bafa7-b8d8-48a6-b0c9-4638b51b1b00","block_type":"box","text":"Under a separate agreement, BlackRock has granted cer tain Funds the right to use the “BlackRock” name and","page_number":170,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"d0d51def-94b2-4efd-aff0-045f9649801a","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":170,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"79f18f6d-0f41-4633-9eb7-3be92a6a4e67","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":170,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"087c0dce-0eea-48a5-a938-429c3c82d754","block_type":"box","text":"such name to any other company.","page_number":170,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"e3d541cc-b028-42c4-bdac-2710b725918e","block_type":"box","text":"II-140","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e083d7d1-1a97-4d7a-a08f-91969813f815","block_type":"box","text":"NM0926U-5977728-170/232","page_number":170,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"440b28ab-f826-4e9f-a38c-f809582f9b72","block_type":"box","text":"APPENDIX A","page_number":171,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"50c85f33-7e4c-4be5-9acd-3bf3770b0c70","block_type":"box","text":"Description of Bond Ratings","page_number":171,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"84a90025-a0be-4412-8322-6060c27ab9b6","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":171,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"f179fddc-0703-452f-97ff-9b8c875a8b5e","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":171,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"5e3c2cc0-3997-48a4-94ac-a5323c270eb3","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they under take no obligation to do","page_number":171,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"e0cb9f18-2a16-46b2-b778-32ee26fbd321","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":171,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"5c527071-8297-4a95-a3f9-999b84ee4560","block_type":"box","text":"securities on a par ticular subsequent date.","page_number":171,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"a76c2c79-abf0-48b5-9f73-8473bd13d244","block_type":"box","text":"NRSROs may rate specific investments (","page_number":171,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"5ade7a04-f14d-4314-8eeb-99e60a22b84e","block_type":"box","text":"e.g.","page_number":171,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"94a350fa-6485-4f1e-9a88-6cdcd6ac10d6","block_type":"box","text":", bonds), issuers (","page_number":171,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"41bc8ed7-72d6-425f-85d3-fce28ccdf429","block_type":"box","text":"e.g.","page_number":171,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"b2ffc187-8c7a-4bc2-9c09-13f48cd350ab","block_type":"box","text":", corporations, governments and financial","page_number":171,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"0e999c73-fd47-4e21-9e58-723451ce4e4d","block_type":"box","text":"institutions) and/or programs (","page_number":171,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"66875402-03aa-4cdb-af45-b70d9c1c47c7","block_type":"box","text":"e.g.","page_number":171,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"f5882aff-8c7a-416a-bcf3-e300ec9fed05","block_type":"box","text":", commercial paper programs). However, cer tain types of investments may not be","page_number":171,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"3f1a9300-71d6-4663-8545-5654fb19007c","block_type":"box","text":"rated by NRSROs, such as cer tain government/sovereign obligations, US agency securities, commercial paper, time","page_number":171,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"b09f93ae-699d-4098-8aa9-f840511ff51e","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":171,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"dd23bb89-e142-41b9-8d06-0bc0c81c86b8","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":171,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"a2423880-903b-4ef1-8e32-1537db6dfeda","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":171,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"237f9c31-ed89-4b07-bab6-3541ca489c12","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":171,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"04ad967b-d24d-4f85-b6d0-218a8db74409","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":171,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"d699fbce-8842-446f-b7af-39c4875c5a27","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":171,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"36c0e894-c1cb-4b65-982a-9f43cc63ad10","block_type":"box","text":"security (","page_number":171,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"36f75ff0-05e5-427a-8eb4-8c867f5b537f","block_type":"box","text":"e.g.","page_number":171,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"32328a68-5c45-4fd0-9f4d-e683abb3b573","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":171,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"6ee5b4d5-bc1f-468c-8c04-ed61124096c4","block_type":"box","text":"highest of the multiple ratings.","page_number":171,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"89f6d244-2d32-4c96-8c89-fc55939ce7ad","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":171,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"67bc5547-7f84-439f-8d41-8bc7d99374d5","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":171,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"f4521488-6600-416b-a69a-5929d055aaa2","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":171,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"3539627e-57d5-4ab5-a5b0-dc53e87b22cb","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":171,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"2fbd25cb-1809-4b7b-b601-b94f72ae1b80","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set for th in the","page_number":171,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"c28c1433-7419-4724-a3b4-c6baeb32d817","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set for th in","page_number":171,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"255d16d8-a514-468a-9218-92c2fb37a53c","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":171,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"780dfe80-74bd-4f1a-97e3-d10df547008d","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":171,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"c701fe7a-e6a3-4daf-a2bc-cdc699a94826","block_type":"box","text":"Where the investment objective of a fund is to track the per formance of an index that includes credit ratings","page_number":171,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"25e5e6e3-f5e9-47b8-96aa-0fce9932f496","block_type":"box","text":"eligibility criteria as par t of its index methodology, the fund may purchase any security within the index, such security","page_number":171,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"e6ef38ae-5a19-4fe5-9d12-78741cf7ccd6","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":171,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"045d9bdd-1548-40bc-9162-4bf738464056","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Fur ther, the fund may","page_number":171,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"d5982913-9831-46dc-ba73-fd69f5f6cb82","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":171,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"b9f97c96-ae84-428d-98d0-5d0b28db2f2d","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":171,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"6ad5ce32-d51e-41c6-8dbc-e62a00363677","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":171,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"5d840a05-e2d3-4d66-856c-66725a3b91e7","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":171,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"f4e7dbb8-2259-4eb0-8d20-255a76ca3b85","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":171,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"668afb3b-3c4f-4776-9913-6be51b3172df","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":171,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"3875a75a-2e88-41ba-8794-9e397d9bdd4d","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":171,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"b325a5df-a502-4641-a437-a7b9aef02cd0","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":171,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"00ef2f37-608b-4dab-8d16-18ff8bb401c3","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":171,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"89d3c886-537a-4f12-bdf2-6234d8842944","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":171,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"00ae579f-4d83-477c-b5bf-a5d101eed325","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":171,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"25b4fea4-a3a5-4be3-a061-ea011b9915c5","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":171,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"d0761332-2a35-412a-827d-2698fee11d64","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":171,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"80595037-5a18-4524-98d0-78213b1c8dd1","block_type":"box","text":"The descriptions below relate to general long-term and shor t-term obligations of an issuer.","page_number":171,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"77e813c1-84df-474a-983c-b1c7dcbf7831","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":171,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"c7805c77-845b-4518-8b20-83c25c886b56","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and shor t-term rating scales and are forward-looking","page_number":171,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"1a32babd-97d0-401f-9087-475dcb432557","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":171,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"412d1f50-e1e9-4503-be70-af4ed52f2c44","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":171,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"1e45d859-91cb-4b46-897e-0b2874a39328","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":171,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"a7c92fe4-c92d-4905-9d97-183f5ce5d9da","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":171,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"afd167eb-fceb-471a-bd12-48e29e301d42","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascer tainable amount, which may vary based","page_number":171,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"6eac8c3b-75fb-4973-a450-093729524d85","block_type":"box","text":"upon standard sources of variation (","page_number":171,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"a0773b06-1d44-4c7f-a0e5-30d7ba048f58","block_type":"box","text":"e.g.","page_number":171,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"b2bda915-aad2-43b8-a2fc-35dd63f70d97","block_type":"box","text":", floating interest rates), by an ascer tainable date. Moody’s rating addresses","page_number":171,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"d95f86a5-f682-4d6e-a50c-a343489c7829","block_type":"box","text":"A-1","page_number":171,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"08eb44f4-8ba2-4cbc-808b-52ab35f662e1","block_type":"box","text":"NM0926U-5977728-171/232","page_number":171,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"35fe7a9b-4ca6-4e8e-af7b-533b48680478","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":172,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"f57f0dc4-6e27-4289-bcb9-4a878bc83e71","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":172,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"59f6752b-0bfe-4bf2-9369-a98941d613e2","block_type":"box","text":"e.g.","page_number":172,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"51a8c8be-d3f7-43a9-9ebe-021968e44fd2","block_type":"box","text":", equity indexed), absent","page_number":172,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"ce2e9d84-0ba3-4990-94ef-62a805c0e54d","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":172,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"300befa2-fe83-404b-9d31-d14e920c1e38","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":172,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"08358816-cc4f-4c6f-a3df-996acf494581","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":172,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"1147bc9b-d960-4f38-933a-eab79cfc64dd","block_type":"box","text":"the event of default or impairment. Shor t-term ratings are assigned for obligations with an original maturity of thir teen","page_number":172,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"f73fe854-5777-44ec-8131-7068a236e3f5","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":172,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"52888f15-a11c-4e7d-a1e2-6d440e3fdb05","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":172,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"cabd4efa-a41f-45cd-9233-569feff5e344","block_type":"box","text":"and instrument level on both the long-term scale and the shor t-term scale. Typically, ratings are made publicly","page_number":172,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"1b5d410b-d83b-47d9-bc3a-cfe9ccf51529","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":172,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"31ccc07e-c125-4770-ad4d-a034fa423d1f","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":172,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"76368e45-4597-40bc-bb31-52ed7b145700","block_type":"box","text":"i.e.","page_number":172,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"1523be61-e547-4e4c-9dee-8d8c7790cc06","block_type":"box","text":", ratings on nonfinancial","page_number":172,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"3f87c731-0655-4abe-a78d-a2cdc71b34cb","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":172,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"7f6bc1b7-b2dd-4f84-8b23-c78316763114","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":172,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"709ea20d-4058-4277-83af-ca778708ae7a","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":172,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"53dcc073-0a1d-401f-9221-4b2774ffb11b","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":172,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"b4e2155b-03c5-45ab-a44b-4ed30c9595d1","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":172,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"745bf589-d725-4c3a-a7c0-e1e98f4ea9cb","block_type":"box","text":"expected equivalence in structured finance and fundamental rating per formance when measured over a long period","page_number":172,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"abdd6e23-d819-4283-a196-1ab24e67e634","block_type":"box","text":"of time.","page_number":172,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"24b23303-1363-4f7a-8935-7aeed91deb49","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":172,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"b092f550-3e8f-4036-af67-86665b7c3df2","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":172,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"f90c324e-ef49-4327-a894-64dd088cbb73","block_type":"box","text":"risk.","page_number":172,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"4d50f3b9-e7d3-4196-b0fd-04cf03afa8c9","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":172,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"0e25cb00-347d-4bbb-ba64-954c0f0df1bc","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":172,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"db87a02e-3e95-4108-8e96-adc611fa8be4","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":172,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"3a5f8ee3-577f-4301-86f3-4cb4007a3a4e","block_type":"box","text":"such may possess cer tain speculative characteristics.","page_number":172,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"333f879e-bd9d-484d-97a1-696c6024bc6e","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":172,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"78dfa2d8-1302-44f3-bb0b-724099d08ec7","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":172,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"eaa3c4ad-7989-486a-b81d-bbca9a28799d","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":172,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"caf4bedb-cd37-4c43-8743-48dae7c88149","block_type":"box","text":"credit risk.","page_number":172,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"472dbc4a-5a6d-4a26-a37e-cc3097c37113","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":172,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"c219e535-afe9-4ba6-b203-eee1e4fc5e71","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":172,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"c467dfdd-9940-4ba4-a9de-5113fc40512a","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":172,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"4f6f09d0-61d9-41a6-b3e9-0be2178fda10","block_type":"box","text":"of principal or interest.","page_number":172,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"9c5acd3b-f562-4ea6-ae5c-3c16c22f755b","block_type":"box","text":"Note:","page_number":172,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"99bf9f38-0004-422e-a7d6-d92db1292a16","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":172,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"87dec09c-049e-4d59-a881-d86b027693ac","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":172,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"dba5fc8b-66bb-4f50-9c29-f3bb63abca65","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":172,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"7cc71c0b-dedb-4b77-af2b-faf7f652f4cb","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":172,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"a2caf026-c14f-4a10-bc9d-658f36f853dc","block_type":"box","text":"companies, and securities firms.","page_number":172,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"f8e756c3-a511-4acc-8943-eea36413037e","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":172,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"20a03e33-9009-4e72-8d41-b30fb64d8326","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":172,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"b9a0b8cf-d3a4-4d3f-a246-da4966bcc3a7","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":172,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"88902f7f-6e1f-4f69-8637-7af9061fd93c","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":172,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"f1e025e7-02bb-49cb-9c6e-3e44910ee24a","block_type":"box","text":"that security.","page_number":172,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"f3977440-e6e7-47b7-89e3-c40250027232","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":172,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"f21b4c75-4962-4250-ae9c-91cb4461a4bf","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay shor t-term obligations.","page_number":172,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"72f8c90b-a267-4bbf-961c-f49fd29b8184","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay shor t-term obligations.","page_number":172,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"7ed38b45-9486-4d9d-94f0-38ae8a8d38a6","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay shor t-term obligations.","page_number":172,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"cb3e59b6-0933-40dd-8bfd-0e0c696407b6","block_type":"box","text":"NP Issuers (or suppor ting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":172,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"1928fd71-fd0e-4d78-8c52-00834766b448","block_type":"box","text":"categories.","page_number":172,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"5cc09be6-561f-4f98-a9f5-f918c712fc36","block_type":"box","text":"A-2","page_number":172,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"ee4c77b8-406c-4148-9f88-a817de28090f","block_type":"box","text":"NM0926U-5977728-172/232","page_number":172,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"fb86948c-2220-46a1-9d64-695b6a645978","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":173,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"f1d6feec-a783-4973-ae92-832e1e80a289","block_type":"box","text":"Moody’s uses the global shor t-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":173,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"aac2e8a6-774b-4b04-8821-0e77a1f58131","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":173,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"e9b4324a-f485-48a9-b866-715566632718","block_type":"box","text":"an issuer’s self-liquidity.","page_number":173,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"c2d7f908-f72c-46fb-9d4b-9d870f06506e","block_type":"box","text":"For other shor t-term municipal obligations, Moody’s uses one of two other shor t-term rating scales, the","page_number":173,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"507c4ddc-eed7-4d39-a1f0-8a420306511b","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":173,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"e5abae62-7a7c-4c51-8f9d-4951d13018f5","block_type":"box","text":"MIG Ratings","page_number":173,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"288cfead-730b-4d8f-be5a-695d4ff2c9e7","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and cer tain other shor t","page_number":173,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"ab6acf9c-2f60-4e68-8110-04d350266157","block_type":"box","text":"term obligations, which typically mature in three years or less. Under cer tain circumstances, Moody’s uses the MIG","page_number":173,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"12a683bf-10a1-401a-84e2-6c6159fd122a","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":173,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"15bf25a2-2c9c-4455-b2c9-49d2ed01885a","block_type":"box","text":"MIG Scale","page_number":173,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"f7d07882-3b23-4836-a331-432073c3601a","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":173,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"eb18d813-a3cc-4714-a5ae-0f70e692da85","block_type":"box","text":"cash flows, highly reliable liquidity suppor t, or demonstrated broad-based access to the market for","page_number":173,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"bf1a0496-bd77-4b58-a548-9e2be5da532b","block_type":"box","text":"refinancing.","page_number":173,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"dc2c8482-8c26-437e-b8f8-efc977a5827b","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":173,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"8e37d45b-0ca8-4cc7-885e-734f79f4e331","block_type":"box","text":"large as in the preceding group.","page_number":173,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"178782c7-ad7b-4fbc-9764-267710e18ef7","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":173,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"c7030d32-36f8-4ca4-8106-6b33db8e9437","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":173,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"03cb8e2d-2679-4cce-8d6a-67b378750176","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":173,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"cd18fe69-8cbe-41e2-ab0e-8c78284aa229","block_type":"box","text":"lack sufficient margins of protection.","page_number":173,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"6fc4763a-25ee-48f4-8346-5e0a7dafa56d","block_type":"box","text":"VMIG Ratings","page_number":173,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"caf271d0-b72f-4b61-970a-09f877626e74","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":173,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"8da36618-d693-4fbd-b740-24843843bbf2","block_type":"box","text":"are a long-term rating and a shor t-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":173,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"91cf874f-066e-402b-b5e2-45407550cb88","block_type":"box","text":"to meet scheduled principal and interest payments. The shor t-term payment obligation rating addresses the ability of","page_number":173,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"e77c72df-8be8-49b5-8412-11c9aed65483","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":173,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"75bc9464-eebd-4656-bb8f-3fc6190b4c94","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The shor t-term demand obligation rating uses the VMIG scale.","page_number":173,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"843039e8-0a02-4a7d-b995-ae486ea26719","block_type":"box","text":"VMIG ratings with liquidity suppor t use as an input the shor t-term Counterpar ty Risk Assessment of the suppor t","page_number":173,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"afb6ecca-0ec6-4fc1-b9e3-5acbae514353","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third par ty liquidity suppor t. Transitions of","page_number":173,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"558fcd35-483a-47f5-9b73-48addcd5fbcd","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity suppor t differ from transitions on the Prime scale to","page_number":173,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"6156899c-0531-4b01-a4f1-a91fff0dbda6","block_type":"box","text":"reflect the risk that external liquidity suppor t will terminate if the issuer’s long-term rating drops below investment","page_number":173,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"8b774294-8d65-4316-bb14-442d036a2cbf","block_type":"box","text":"grade.","page_number":173,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"8343cfad-6728-4c9e-aee8-da4ff2e8f2f8","block_type":"box","text":"Moody’s typically assigns the VMIG shor t-term demand obligation rating if the frequency of the demand feature is","page_number":173,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"a7027dd2-7b2e-42c2-950d-09700aaf06c0","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":173,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"ecfac39c-a03c-488d-a732-518ed6a0fbea","block_type":"box","text":"payable only with remarketing proceeds, the shor t-term demand obligation rating is “NR”.","page_number":173,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"a9fba6a0-c279-4e11-bda8-c8bf540dc136","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":173,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"d270cf5d-6806-4507-8eef-0bf19856de22","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":173,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"8d1c04ba-e4f4-4f66-a5ce-a08ce4a6777e","block_type":"box","text":"liquidity of the corporate obligor.","page_number":173,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"f5da298f-2ecc-42c5-9469-67304ac4cc51","block_type":"box","text":"VMIG Scale","page_number":173,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"9bee2b75-9fba-474c-9c6d-5c6835637311","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":173,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"8f3352f9-0a33-4522-93ce-36debd0dbb2a","block_type":"box","text":"shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":173,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"20edab91-91ec-458d-bd93-452274c63c5f","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong shor t-term","page_number":173,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"4ae54526-e63d-4e11-af81-d3357d0b6148","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":173,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"bec140c2-240c-4b32-8e6a-a0dc2abd702d","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":173,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"2d7df14b-f21c-45b3-bfc4-51e7afd28b8f","block_type":"box","text":"satisfactory shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":173,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"adb8a58b-0e15-4fbc-a9e4-6e2f4073c5af","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":173,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"cb3ed30b-f5f6-4c62-b372-89f83c77fa3a","block_type":"box","text":"may be suppor ted by a liquidity provider that does not have a sufficiently strong shor t-term rating or","page_number":173,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"d0b8fdd3-dbbe-4a4c-b848-a0a1183bf0f6","block_type":"box","text":"may lack the structural or legal protections.","page_number":173,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"fca6dad4-4a7b-4b23-9301-eda77efc2833","block_type":"box","text":"A-3","page_number":173,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"9d36d3ac-6c27-487c-90ae-baba887db2ce","block_type":"box","text":"NM0926U-5977728-173/232","page_number":173,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"97a6c22d-d629-4af7-87b0-2c9c82a96693","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":174,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"b6dfb716-2111-40e8-954d-89fe89be2297","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditwor thiness of an obligor with respect to a","page_number":174,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"aaa2e6e0-335f-4bfd-8597-61515cb2420e","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":174,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"d45cc7cc-6d88-4b3d-aa4e-87d7696a87c5","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditwor thiness of","page_number":174,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"f20c3ea5-264b-4836-b2b4-2ba16c10c927","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":174,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"63089be2-de40-4fdc-b186-5174394dc115","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":174,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"b3c5d2e9-9bf5-45b8-97e1-a6f7b05534af","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":174,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"6f8d08e2-b474-4d40-bc6c-6a914dc47dd6","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":174,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"fabc855e-d75b-406f-9166-d720c942b77b","block_type":"box","text":"Issue credit ratings can be either long-term or shor t-term. Shor t-term issue credit ratings are generally assigned","page_number":174,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"0a0af3e9-bb14-4bc0-9a93-aba366066259","block_type":"box","text":"to those obligations considered shor t-term in the relevant market, typically with an original maturity of no more than","page_number":174,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"efd28e1d-c395-4506-9399-5fad86791af2","block_type":"box","text":"365 days. Shor t-term issue credit ratings are also used to indicate the creditwor thiness of an obligor with respect to","page_number":174,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"b8274b19-7af3-41e8-b733-64c53e83d686","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":174,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"a7332e31-7d03-4426-b2b2-22e7ef48f6a7","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to cer tain instruments may diverge","page_number":174,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"0adfeca4-cf23-4e35-85a2-12bdabfb01dd","block_type":"box","text":"from these guidelines based on market practices.","page_number":174,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"715fb5ef-23c8-471d-9a9c-8b5ba347b8bc","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":174,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"764b3c49-5486-4127-a800-7b5b29862208","block_type":"box","text":"•","page_number":174,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"ffcb1edc-0e4a-43b9-b693-e869d5baf52f","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":174,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"acb85188-799a-49d3-b72a-02790cce0e93","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":174,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"9d0c49b5-6a5d-407a-a421-233f6383b9e8","block_type":"box","text":"•","page_number":174,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"7bbadafc-8d4a-4ac7-b078-1dc75d138586","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":174,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"bb1514e3-a9a8-4c2c-bde8-71ee1ca7bf40","block_type":"box","text":"•","page_number":174,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"b66d2b3e-618c-4dbe-8a5f-e356b5bbf7b1","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":174,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"57b321fc-9fde-4aff-ac40-e0b54674666d","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":174,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"c2fb3bff-a220-4759-a216-ec359e2c49bc","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":174,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"bc03aaf0-ae07-4316-b243-b3879d1f8f00","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":174,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"bc9f85bf-4d24-4609-9741-9d4460421db2","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":174,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"b7837de8-21d8-4be8-b817-8bf7fceda738","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":174,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"9f70fc2f-df69-4362-b2ba-c8842bbdb07f","block_type":"box","text":"obligations.)","page_number":174,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"08de05ed-4157-4055-a186-31a7775db1d5","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":174,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"f395f7bf-a4fc-43b2-b210-3aad997610e5","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":174,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"85e4aabc-3f03-4a49-99b4-71390a61ea09","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":174,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"26351f4a-e881-45a8-a893-01ca85dad3fa","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":174,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"a3ea0438-cdea-40d2-a8eb-2748adc4daaa","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":174,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"1e8eb56f-7883-43b1-9059-e9cfcff722a3","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":174,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"39e6bb5b-14f4-4591-b3cb-f6775ba436a8","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":174,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"30bd54f3-a1f5-4b35-bf60-355f6e211820","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":174,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"3649a356-13dc-4483-a666-3be0bcf4186b","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":174,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"c6e0d732-195c-47bb-a173-042629a4f564","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":174,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"8738b4c6-23a5-41d1-960f-48441badea5d","block_type":"box","text":"financial commitments on the obligation.","page_number":174,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"5d605c4f-8a49-405b-9e83-31d32ea29903","block_type":"box","text":"BB,","page_number":174,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"1f3bc9c8-1f13-42e9-9b82-e3baa555c3df","block_type":"box","text":"B,","page_number":174,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"ac506526-3b01-4606-a89b-77749c267aea","block_type":"box","text":"CCC,","page_number":174,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"5d6eba33-6151-4ae3-a3ca-8cfb345ca90c","block_type":"box","text":"CC,","page_number":174,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"725e48ce-3ba1-4d90-a5f6-37c8e6473762","block_type":"box","text":"and C","page_number":174,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"07edf54c-5a79-45e7-ba2d-76dcdaf65fa8","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":174,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"32e2cca8-dc5d-48f6-8bfd-477e48a98327","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":174,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"db9a03c2-7f49-4ac3-8108-49dd848bb464","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":174,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"c03cf350-51f6-4d55-abc7-fcdc5d856a58","block_type":"box","text":"large uncer tainties or major exposure to adverse conditions.","page_number":174,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"cb19d538-dc7a-4e1d-b485-33fbf424783b","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":174,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"e6c2cd9e-e2bb-4f74-83fc-76103f3e3a26","block_type":"box","text":"faces major ongoing uncer tainties or exposure to adverse business, financial, or economic","page_number":174,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"b36ac994-73ec-4a6b-a777-b8a6ad518e15","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":174,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"801179bb-0f7d-46f0-84b3-a513afef8834","block_type":"box","text":"on the obligation.","page_number":174,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"6e707d0f-e54a-4510-b275-95efa54f0be1","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":174,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"1c0d0caf-d138-4637-bd9f-c7bd32dfc5d9","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":174,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"d4d9f4f2-86d2-4c0c-8245-e795131002b7","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":174,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"5b173ad4-3278-4903-b57b-41c82b9866f2","block_type":"box","text":"financial commitments on the obligation.","page_number":174,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"dc3957e6-49c3-4fa9-96f3-480685cbd2cf","block_type":"box","text":"A-4","page_number":174,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"438038e6-e79e-4fc3-91ae-2f00777f6dcc","block_type":"box","text":"NM0926U-5977728-174/232","page_number":174,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a052faf7-4494-4f43-8c8a-59c53fba712a","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":175,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"463f7d46-fd64-43e5-b282-6bf7517e495d","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":175,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"1066a9c3-b263-4752-9dd1-8d7cba46c328","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":175,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"78d0a7f3-884b-418c-a967-1754217c0b8d","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":175,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"00c0d790-993c-4cf8-a380-cb6adf0844e6","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":175,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"6e8ab077-4a86-4468-88e1-30eca17db11b","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a vir tual cer tainty, regardless of the","page_number":175,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"789aadc6-fb52-47f8-b2f5-3258a655bfea","block_type":"box","text":"anticipated time to default.","page_number":175,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"655d4d49-6b89-44c4-9ecc-008b7591d7e9","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":175,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"f1215d47-d8f4-4be6-b78d-0ae76c28f005","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":175,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"f8eccb48-0b66-497a-a223-4aef0a378344","block_type":"box","text":"higher.","page_number":175,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"30cbd626-4aef-452c-886a-2bfc6363587b","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":175,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"255fc961-0140-4e85-8748-8a6aeb3918a0","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":175,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"d1c84b2d-4ff6-4994-a68c-88c18b21195d","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":175,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"9f85a437-e968-46cb-806f-77f00c2abb04","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":175,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"8d99e3cd-a49d-4e2b-9a54-6aacadcb384e","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":175,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"1e5f2124-9e57-4ac9-8f52-6cc9cf1bd349","block_type":"box","text":"action and where default on an obligation is a vir tual cer tainty, for example due to automatic stay","page_number":175,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"40341438-ee3b-42c8-9877-eb8f8f2d0e5f","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":175,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"c865e6bb-4ade-4fee-87cd-13bbef6de18f","block_type":"box","text":"restructuring.","page_number":175,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"8454a4d9-98c6-44fb-bebc-53a3fab7e90b","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":175,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"455481df-7d61-435f-b185-17cda74cc923","block_type":"box","text":"standing within the rating categories.","page_number":175,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"f26743b9-04a7-4ed0-8e40-841a3cdb0bd7","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":175,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"acfa84fb-8ee2-487c-9544-8b9d2f4c2ba8","block_type":"box","text":"A-1 A shor t-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":175,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"88d8d72f-fc16-4f85-8aac-bcbc7af51334","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, cer tain obligations","page_number":175,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"dac86343-8ccd-4d07-b246-7fa2706b8ea8","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":175,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"01c7557f-9f15-4c2b-9b0a-896aa01b654e","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":175,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"7a55a51f-8874-4440-9569-bfbe5e159d57","block_type":"box","text":"A-2 A shor t-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":175,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"e4180866-cef7-4227-8ba0-40ca79fb405b","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":175,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"0d8bdc29-f2df-4129-bd88-ec6129798d16","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":175,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"01bb1f95-8e79-4af8-aee0-ef5cfe041d53","block_type":"box","text":"A-3 A shor t-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":175,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"6127a944-a7a4-4694-a0f7-fed9d4b632f3","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":175,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"98c3628e-2e0c-4bd1-b014-75ee999aa46b","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":175,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"896b2a47-1983-4bb3-bca9-5cfb72aa6550","block_type":"box","text":"B A shor t-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":175,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"fc571d0e-91c0-42d2-8693-918e5fc07339","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":175,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"1112c369-6cb7-4853-9c74-ce6f6b46ea8b","block_type":"box","text":"it faces major ongoing uncer tainties that could lead to the obligor’s inadequate capacity to meet its","page_number":175,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"95d4e2ab-f639-4592-8f3f-97b4847a5c10","block_type":"box","text":"financial commitments.","page_number":175,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"78beb82b-60ae-466c-b63c-2f25ca4e6bb5","block_type":"box","text":"C A shor t-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":175,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"8bba1074-04ee-49b0-a0a4-d8c2cfba17ed","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":175,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"0543cb16-d860-4827-8e19-f7724a4dd9ca","block_type":"box","text":"commitments on the obligation.","page_number":175,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"dc997071-4333-4880-942b-192978334938","block_type":"box","text":"D A shor t-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":175,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"2ce4a2f9-7e12-4e0d-89f4-692799bf4b0d","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":175,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"89cd96c7-8a8f-4da8-a49a-eac8b659ed47","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":175,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"8392d751-efcb-4b2f-997f-1452d3805054","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":175,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"1781bf92-4137-4cc5-b379-c18b382a2fb8","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":175,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"b6ecd4b0-6ead-4e0d-8650-5c8879cd6e58","block_type":"box","text":"of a similar action and where default on an obligation is a vir tual cer tainty, for example due to","page_number":175,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"2309dfc4-02b0-44a4-8873-e5cc9ae47fab","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":175,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"03edc07b-e14e-4965-bc14-dd81ed54c635","block_type":"box","text":"debt restructuring.","page_number":175,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"d28672c1-344d-4d56-a710-0d165d98d16e","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":175,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"542150f9-7022-4c43-b128-314f5a4795e8","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":175,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"b2f57053-1ef9-4abb-8c1c-6bfe069b2e54","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":175,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"c4307eee-59fe-4f1e-b14f-3aa05c842575","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":175,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"339033f2-5450-447a-86c2-29dfecfe0865","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":175,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"c96aaa2e-87b8-4299-b04b-6ce73d3527bd","block_type":"box","text":"A-5","page_number":175,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"5ec6b522-c4c6-433e-9a5d-dee395f2627a","block_type":"box","text":"NM0926U-5977728-175/232","page_number":175,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"cd076dac-9441-474a-978a-79bbf43bd87b","block_type":"box","text":"•","page_number":176,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"e4b5c5fd-dfe0-46e6-a1de-6f68b4856bc6","block_type":"box","text":"Amor tization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":176,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"1b09b1cd-ee04-481a-a322-a06828f21924","block_type":"box","text":"as a note; and","page_number":176,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"f980e6fd-5346-48d8-82e1-fc59b92252ca","block_type":"box","text":"•","page_number":176,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"f2e91a01-9386-4bbe-a550-d73123e84092","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":176,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"e2c84bb8-e910-4709-8e37-31e194923984","block_type":"box","text":"treated as a note.","page_number":176,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"c24d6f26-5dbf-442f-b714-36f401ee34a9","block_type":"box","text":"S&P’s municipal shor t-term note rating symbols are as follows:","page_number":176,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"750ae525-1de9-4949-8f2f-cb008665662a","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":176,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"5dc7748e-9bd8-4b0b-87d1-37c3f31fb99c","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":176,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"f24f43dc-2d49-4b85-9c2e-cbc450a840ab","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":176,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"6c30608b-e0d6-48dd-ab5a-6127aac09915","block_type":"box","text":"economic changes over the term of the notes.","page_number":176,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"b98adb5b-a560-4b6a-b1cb-f26c63897afd","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":176,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"67cc025b-08ea-4d24-baab-ac303957d912","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":176,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"b73edfdb-40c7-4fbe-8894-fca2cd4327ca","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":176,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"60ce693e-c0ca-4a5a-874e-e931a98b3593","block_type":"box","text":"on an obligation is a vir tual cer tainty, for example due to automatic stay provisions.","page_number":176,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"2fd161b8-67cd-43db-a6e0-3a2b52594eb1","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":176,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"24cc9488-204f-4704-9f11-ae14a3e79e0d","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":176,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"3263a3f5-dbc0-4b99-9da7-aaaf3b4976bf","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":176,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"b7b0187c-66e4-49d9-b942-9b5ca22fea72","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":176,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"035145c3-631f-4f1d-959b-0e3e6cf9bfc7","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":176,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"c60a5c6b-a87c-410b-89f3-7169ddb116c1","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":176,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"936e0d04-dc4f-4f21-82dd-85db50c0976b","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":176,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"0bbebaad-78e1-4d02-b24d-cead20435c14","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":176,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"9e509caa-c828-46f7-9e80-fe5d6182548b","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":176,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"9359621f-0e29-4b64-8ef0-2315872e0b09","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterpar ty","page_number":176,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"59dbba27-7f00-47d2-9b0b-bceb1f3c1e3b","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":176,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"f34275a2-95c8-4069-94ab-7cc3711d9831","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":176,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"dff438c5-2b21-48ad-afad-25764891da61","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":176,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"6e384ba0-594f-4d13-a65c-0f1916aec092","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":176,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"72e671c9-a00f-46e5-9fdc-b2f6a007f029","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":176,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"fa6c90ad-4704-4ad5-a9fc-d21a879ba042","block_type":"box","text":"receivables or other financial assets.","page_number":176,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"399588ff-4d44-4c2d-afd3-81a0451a797d","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shor thand to","page_number":176,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"91e54a87-30c9-42b8-ba8a-1bd2075ae06f","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":176,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"2af84701-1052-42c7-963b-cfac2804ae56","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":176,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"27d68592-d759-42a9-b7d2-a24b9f9d36bd","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":176,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"b15e0238-b0c0-421d-8642-c58e92ecd109","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":176,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"c69bd219-d805-4fb2-9d71-7807f99c402f","block_type":"box","text":"occurred.","page_number":176,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"3110923f-24d2-473a-8632-cdf6778af8b4","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":176,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"fe5f932e-17bd-4dfc-b2be-b5c95b6ecb70","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":176,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"4d3f650f-c919-457b-bb78-e4954eaf7ad9","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":176,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"d5e204ea-41b7-4268-b4a3-e0461d9b2df6","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":176,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"d21adc71-dac4-47bb-8dbf-8c05ce6de2aa","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In par ticular, ratings do not deal with","page_number":176,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"eea866fd-0ebb-4bff-9a70-4f2840286e8c","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":176,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"662a2c40-9523-4f51-aae4-b6604a7f78f1","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":176,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"052f9c05-2cbf-49f5-a3a6-0e6e8f0b5819","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":176,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"3f181d37-463e-4148-acf0-677f8da35778","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":176,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"bd040083-500c-49db-a40a-e310e62ec549","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":176,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"1b7365db-8721-4669-a760-05e14b9e8600","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":176,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"bb76d8d5-a7d0-45b9-b212-092e16e5b4a4","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":176,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"fa5d43cc-4fd7-4796-b332-1a529c31bd5e","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":176,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"171fc7f4-177b-43fd-b43d-c38adf94a5d3","block_type":"box","text":"i.e.","page_number":176,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"da7e584e-554a-4ab4-8370-86cda06dd132","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":176,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"b8b3a966-2044-4bfe-803a-e0ec15d8b661","block_type":"box","text":"the obligation’s documentation).","page_number":176,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"08442d75-dcb2-4a1b-b960-1277c5717fd5","block_type":"box","text":"A-6","page_number":176,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"c0df579f-4a38-4c68-820c-ab3759b0cb17","block_type":"box","text":"NM0926U-5977728-176/232","page_number":176,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"98406baa-4486-418a-aa4e-cf6aafc9286e","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or cer tain note","page_number":177,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"ddd97dec-61a0-4e7e-b821-fedc3c6ace89","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":177,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"c301a52c-ad12-47f7-bcd8-438d307001e5","block_type":"box","text":"agents in the form of a rating letter.","page_number":177,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"1633194b-80be-46f5-b97a-fe359dad9431","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":177,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"d12faa14-4ea6-44d8-9722-ee0184bc42a1","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":177,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"1a83df2c-2cd9-4b8e-be33-743f9f30e645","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":177,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"3ddd74dc-4675-4fb0-a9fc-210a888b0605","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":177,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"ab840c82-a2d6-48d2-851f-352e8d10e60d","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":177,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"f83355cf-aa3a-40e5-a149-9fc6f524a76b","block_type":"box","text":"e.g.","page_number":177,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"71b92d29-d324-4487-82f0-c20e122faf06","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":177,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"f8a3bd52-72c1-4b16-863c-0b8cc705d6f8","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":177,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"ef27b9b6-b4f3-4c9c-a43d-8e0966b81ee7","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":177,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"c8431146-2ba7-4039-a117-6b97fca60c1a","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":177,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"4f8535ab-6fea-448a-acb1-d5be5cd5e44e","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":177,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"f8b1a6e4-e934-4ce4-a73f-387becc0a90d","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":177,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"28968c69-653f-45d0-9872-bf5c7a3ea154","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":177,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"0bacc7a1-c215-4547-b400-1492e1426826","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":177,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"d4afd67a-367b-4c8e-a5e2-2d54272755a5","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":177,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"6859c94c-2723-41d4-9851-ac88d410b941","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":177,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"1e1484d9-a583-4a42-857a-f0ebc29725a1","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":177,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"b1508bd8-de19-4079-a6c6-de8e3548d871","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":177,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"200778e2-c759-4ad5-a544-8fb1dfb9f280","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":177,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"b6264891-6618-4b17-987f-ace9e3e489bb","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":177,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"39b1f5b9-e07b-4189-9e11-c0f91598fbbb","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":177,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"ac641b1b-3680-4d44-9d77-3e8a91e2a07c","block_type":"box","text":"Ratings.","page_number":177,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"16964b50-0111-4491-8cdb-a3c2b754beba","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":177,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"27643ea1-062b-4356-b4b7-60c8a6386d50","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":177,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"fd2c47ec-cd7c-4a67-b4d6-6edcd9c49839","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":177,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"cccb5aee-58ca-476b-8ee9-6c981f8d468e","block_type":"box","text":"obligation ratings.","page_number":177,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"7453f3d8-2202-454b-9d5e-e0c8a7adf6e9","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":177,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"ca9cf2fd-928f-4044-b5a2-9a47fdcf7141","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":177,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"b00a30d6-18b5-4843-b566-947f40472dd7","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":177,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"1742df5a-e644-4682-ab52-1a4043245fba","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":177,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"fd25eda3-1a9a-4ded-8c53-fded36105122","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":177,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"f0a3ed52-567d-4836-81e1-0b8a412127f1","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":177,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"27092e20-b1c6-4d68-98c1-0d8c9b02f096","block_type":"box","text":"to foreseeable events.","page_number":177,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"0e931237-21db-4e1e-812a-b9d203d4ea28","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":177,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"508e62d9-f8c4-4a8b-961a-e3ef2c5b496e","block_type":"box","text":"financial commitments is considered strong. This capacity may, never theless, be more vulnerable","page_number":177,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"50f83602-b488-4204-869b-a4985fe5b621","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":177,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"71ad7acd-df2b-41f1-80a6-0718ae63de2a","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":177,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"a0bd6f89-fa93-4163-a5fa-2ff6678adf32","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":177,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"e5853b10-4033-4d70-8521-6d00d82a3459","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":177,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"12842873-396c-49cc-9789-4ab7e57115aa","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, par ticularly in the event of","page_number":177,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"afc72a0c-6c3b-4b32-a4ce-7c8314a9fc80","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":177,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"c2ca0c5c-bc50-4433-b0a3-dc677e30db71","block_type":"box","text":"flexibility exists that suppor ts the servicing of financial commitments.","page_number":177,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"1b4aa6ef-3665-40db-b736-a54e33651a5e","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":177,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"9759bcd6-8146-4ce6-81db-dcb949552121","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":177,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"f79caf6a-a83c-4e5d-8603-6a677a82c21a","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":177,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"d5f7bf0d-d819-4b96-ac6b-9531f66b18e1","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":177,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"8bb55c11-4d7e-4cbe-a43b-132d8333b3d1","block_type":"box","text":"possibility.","page_number":177,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"1fd37c30-eec5-4dd6-81d7-365a45ec63a0","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":177,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"32901375-569e-4bb7-9856-c58a8a7f5852","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":177,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"4d167020-45df-4faf-9146-a159374bfd82","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":177,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"002dff1f-102c-481b-82fe-f39e99a2c5ac","block_type":"box","text":"A-7","page_number":177,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"499363c8-8de1-409e-8486-c318df240c3b","block_type":"box","text":"NM0926U-5977728-177/232","page_number":177,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"fbc591e4-1b07-4802-a4c6-57730fcd49d0","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":178,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"d5c33210-9bdd-46a6-8227-8309340ba157","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":178,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"d22bee6c-a019-4829-a1c2-69a43fc1817e","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":178,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"0c2a890a-7426-455d-b706-f03b4d3d1092","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":178,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"83acd436-8762-4c9e-80fb-4c0d938849e0","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":178,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"ffa37895-3f1a-457d-be57-cdf283726354","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":178,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"19c9d61a-a34e-4463-9268-01777069efaa","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":178,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"dfde666c-c209-4472-a67e-57d921f5fb25","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":178,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"e18b1ccf-8f01-45de-8680-83ce0063e5af","block_type":"box","text":"relative status within major rating categories.","page_number":178,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"b23033ef-b765-4d01-997e-2c8f8f31eb2a","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":178,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"934c7cd5-9e05-4caa-9f5e-af1cc843b09a","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the shor t-term rating","page_number":178,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"4d150d05-c815-4608-88a6-11d6b4500dfa","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":178,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"3b43df18-b0fe-495d-9233-030083d0319d","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":178,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"d3acc727-66d7-48a0-962d-171c3f80f9aa","block_type":"box","text":"A shor t-term issuer or obligation rating is based in all cases on the shor t-term vulnerability to default of the rated","page_number":178,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"46681214-e768-4122-840e-bb66762d2739","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":178,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"091443da-3388-46b6-b02e-9b0adf86e63a","block_type":"box","text":"relevant obligation. Shor t-term deposit ratings may be adjusted for loss severity. Shor t-term ratings are assigned to","page_number":178,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"baa722ab-b883-429b-8f4b-97d84bcd39a6","block_type":"box","text":"obligations whose initial maturity is viewed as “shor t term” based on market convention. Typically, this means up to","page_number":178,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"a309b4be-ee25-46c1-84b7-45c359e4d306","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":178,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"0b0458d4-de88-418e-92a4-2be412e29843","block_type":"box","text":"finance markets.","page_number":178,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"4ac87ef0-7eee-44df-b426-266f27ab4a06","block_type":"box","text":"Fitch shor t-term ratings are as follows:","page_number":178,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"7fda9729-fc2a-4f1f-8e62-0dbb42c7a476","block_type":"box","text":"F1 Highest Shor t-Term Credit Quality. 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The intrinsic capacity for timely payment of financial commitments is","page_number":178,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"86c7b510-13b7-4fc9-8693-cdbf66e0fd60","block_type":"box","text":"adequate.","page_number":178,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"c395103e-79e5-4b4e-a6db-a158e2990900","block_type":"box","text":"B Speculative Shor t-Term Credit Quality. 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with","page_number":183,"box":{"x":69,"y":83,"width":785,"height":11}},{"id":"ff9af5f4-27ed-412a-8423-9995e39e3a2f","block_type":"box","text":"issuers.","page_number":183,"box":{"x":70,"y":98,"width":54,"height":9}},{"id":"d47210ff-0d29-4f2a-800e-a371022707d8","block_type":"box","text":"1","page_number":183,"box":{"x":131,"y":94,"width":4,"height":4}},{"id":"0ec13356-7e8b-43d8-884d-630a7b06ff23","block_type":"box","text":"BAIS works in par tnership with BlackRock’s investment teams, excluding index equity","page_number":183,"box":{"x":141,"y":98,"width":606,"height":11}},{"id":"a23bba6d-0a47-4c53-b8e4-1d2e36e1351f","block_type":"box","text":"2","page_number":183,"box":{"x":747,"y":98,"width":4,"height":4}},{"id":"d3e91b31-5880-48c6-9159-a4843689cc3d","block_type":"box","text":", providing exper tise","page_number":183,"box":{"x":753,"y":98,"width":143,"height":11}},{"id":"8b1f25ce-6fd6-41c1-823e-52613763da97","block_type":"box","text":"on investment stewardship and engaging with companies alongside and on behalf of those teams when appropriate.","page_number":183,"box":{"x":69,"y":113,"width":828,"height":11}},{"id":"7f54958e-d267-4959-889f-771c86cb6d1a","block_type":"box","text":"The team is responsible for establishing voting guidelines for the active equity platform, providing vote","page_number":183,"box":{"x":68,"y":128,"width":729,"height":11}},{"id":"3fd2b7c6-278a-45dc-99c6-1427df783a4e","block_type":"box","text":"recommendations and operationalizing voting decisions. The guidance informs the voting recommendations BAIS","page_number":183,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"d9771d22-42bb-424b-9639-1e459dcb22ee","block_type":"box","text":"makes to BlackRock’s active por tfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":183,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"7b0e12d9-d730-4523-8bc2-8e8d6b12f9bb","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":183,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"6449baa3-f36c-4799-b758-0fe0264cea1c","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":183,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"cca2a4fc-b66e-4b46-99fe-ded274e97981","block_type":"box","text":"The guidelines are not prescriptive as active por tfolio managers have discretion as to how they integrate these","page_number":183,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"3b31dab1-aea0-45e7-84f2-8f8a44a26e4b","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":183,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"dddb26f8-e598-4217-8ab5-63e5ec4e7a3e","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":183,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"b2a17f7c-949a-4a44-8967-fcb7fddcc83c","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":183,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"be0c6caa-465a-4026-a61b-0b8639d519b7","block_type":"box","text":"1","page_number":183,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"4ce59c32-7785-4f8a-9634-555450c0e822","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":183,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"51c3f175-99d5-4283-a459-2e5f9b01a1cd","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":183,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"b3bd6ec0-42a0-49c8-9860-0abc0f8b3033","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":183,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"85df0308-0e81-4484-975e-cc2e60dfb456","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":183,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"b6330957-7b06-43f3-9b91-5a9c6ed60625","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":183,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"bd73e2fb-5756-4e14-a0f3-6e866cf53d91","block_type":"box","text":"2","page_number":183,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"0ae5b5a4-a43b-4205-9d43-227adfda3fdc","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as par t","page_number":183,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"794f15b0-bb32-4a88-9666-1042f5c5ac04","block_type":"box","text":"of a strategic initiative to unlock the full breadth of the firm’s active and private markets capabilities for clients. 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The money BlackRock manages is not its own — it","page_number":184,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"d26289ac-7879-481f-9949-a51aae482045","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and por tfolio construction decisions.","page_number":184,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"58ad394a-aaaa-4369-97bc-3ebef56c5063","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":184,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"a364dd57-ebf7-4627-b2d3-9b43e6f90dd6","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":184,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"1ea1df65-07d9-4ce1-ba52-b1e87cc05a17","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":184,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"58f0b85e-d230-43d3-822d-8c383f76ffce","block_type":"box","text":"this work with research, data and analytics.","page_number":184,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"caef6710-b21c-45b8-8da0-b88f9c8a1d35","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":184,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"85ee4564-019f-44f2-9cd4-170b79be336a","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":184,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"b34efa26-f76b-41a8-9fa3-e8fe472fb4f4","block_type":"box","text":"practices that, in our experience, suppor t companies in delivering durable, risk-adjusted financial returns over time.","page_number":184,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"4e38d418-2ab8-48ce-891a-938b1f380c48","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":184,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"76bda0e5-44a3-41b8-97eb-9527b4e7aa79","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":184,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"4599188b-b023-4c69-8a9b-52c13e166fc0","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":184,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"fe1521ee-73b1-4b3c-a84f-f0ae26889a73","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Por tfolio Management Group and","page_number":184,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"336deb18-6b59-4dfe-a50c-92b648863024","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":184,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"a37ed898-f374-4de5-8578-995c41604d5d","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":184,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"49b1d07d-a5e8-4ef3-a4d1-2aa60805bc41","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":184,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"37954994-cb5c-444a-be9f-faa972e60cd2","block_type":"box","text":"investment analysts and por tfolio managers, with whom we work closely in engaging companies and voting at","page_number":184,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"9d3d6402-b0b3-4e9f-8150-de159a16173d","block_type":"box","text":"shareholder meetings.","page_number":184,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"b044add3-d499-4c93-8ae6-d5190dd9f46c","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":184,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"c690949e-a68d-4ece-9aab-47996a33c333","block_type":"box","text":"investing.","page_number":184,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"e143c3ca-c0d0-47d1-8705-7478e7bd181e","block_type":"box","text":"3","page_number":184,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"bb36ae6e-1d6a-4624-b43e-e544020dd8ab","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":184,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"4b13fc41-dafd-43b5-bf96-96d096b3c3fd","block_type":"box","text":"manage risks and oppor tunities to deliver durable, risk-adjusted financial returns. Por tfolio managers and","page_number":184,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"b395f6c3-8d7d-4cbe-8d4d-8a28e2656cbf","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":184,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"4f368f33-d28f-4087-beb6-89ab958ec73b","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":184,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"6895281e-7bad-4c28-881b-bd0c2c50ff3c","block_type":"box","text":"corporate strategy, capital structure and financial per formance, operations and material sustainability-related risks,","page_number":184,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"07fff980-283e-4285-9c5a-da0e57eb9e45","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":184,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"74009319-88b5-43be-aa7a-1abd0938e82d","block_type":"box","text":"suppor tive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":184,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"d7de66ae-01f5-456c-9ef6-60c51ea4be71","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":184,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"4fc4bfde-36cb-45df-9fa7-571ceec97e73","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":184,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"5808182d-6cdb-462d-92c7-db26bacbd6e0","block_type":"box","text":"each por tfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":184,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"13d21aca-f85f-4b38-8299-54618e215f35","block_type":"box","text":"vote the holdings in Systematic Active Equity por tfolios in accordance with these guidelines. We provide voting","page_number":184,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"07482248-9cc8-4ef4-a72f-bb63a4bc3519","block_type":"box","text":"recommendations to fundamental equity por tfolio managers, who may determine to vote differently based on each","page_number":184,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"6b2ccd11-fdf0-4305-ac39-1a624a79a1ff","block_type":"box","text":"por tfolio’s investment objectives and strategy.","page_number":184,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"4c61f7a6-efd1-44a3-802d-c807f7b85f36","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":184,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"ff6b46ef-6d98-46b2-bd08-3776e01e6aea","block_type":"box","text":"management teams and board directors","page_number":184,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"b3a5ee12-462d-49da-94f8-8c46aa09492d","block_type":"box","text":"4","page_number":184,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"be7d4942-61ef-44d6-b7ea-928cd606a839","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":184,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"c6d746e9-4c66-4bf3-bc2c-0775c826d5cb","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":184,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"9dea30c5-41c1-4e8c-a953-39eb59107982","block_type":"box","text":"applicable elements of governance that suppor t a company’s ability to manage material risks and oppor tunities and","page_number":184,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"382ef563-a0ac-4b3f-8260-9eb99ab2a837","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":184,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"0f82815b-3796-4e7d-83b7-c206c5b54066","block_type":"box","text":"norms within their local markets or, par ticularly in markets without well-established norms, aspire to widely","page_number":184,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"77a55a5e-fdf1-486e-ab54-af456bef63af","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":184,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"4959f793-92bb-432b-aa3d-e2025c348952","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":184,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"65aa7926-f26f-4416-a4c0-c81722aeac88","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":184,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"08b1d842-e436-481c-9b0e-9337adda379c","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":184,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"478b7ab7-ffc3-458c-8eb6-26b2423bc87a","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":184,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"7366d6ee-fa2f-466c-98ed-8b5a8256f7ea","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an impor tant mechanism for investors to express","page_number":184,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"893b78ac-c82f-4150-a78f-8fe099fa2bb6","block_type":"box","text":"suppor t for, or concern about, a company’s per formance. As a fiduciary, BlackRock is legally required to make proxy","page_number":184,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"6d807bec-96a2-401b-8d6d-b58b2c626624","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":184,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"92d71e75-a90d-4939-bfca-710cbbae36a3","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":184,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"c2d7f90e-b10e-4fd8-8edb-d354753eeda1","block_type":"box","text":"3","page_number":184,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"8fd7a28d-ccff-4ceb-a295-e6b8ceb9221f","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":184,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"cbf3624f-7215-433b-b9b1-b0ece068c17e","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":184,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"d4262080-2835-4004-87d9-52176d217e06","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":184,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"cc24d75e-ccde-45ae-880e-a6419e657d9c","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":184,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"50802634-e47a-47ba-9120-77d3a8c4f53c","block_type":"box","text":"4","page_number":184,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"28f8d75a-aa3e-46bd-b2e0-7a0044ec3cf7","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":184,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"3e90a963-e093-4aaf-9692-c0bc4674149d","block_type":"box","text":"boards and their members, where relevant.","page_number":184,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"bd459f09-39db-48ac-98f8-7948e43bf721","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":184,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"fd1d621a-04a6-479a-91ff-40a5ad94da4e","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":184,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"051de159-e11d-4ee9-94a6-c6cfe36185c0","block_type":"box","text":"NM0926U-5977728-184/232","page_number":184,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"575abd3b-d002-4627-80cb-c6026a60c986","block_type":"box","text":"In general, we tend to suppor t the recommendations of the board of directors and management. As indicated","page_number":185,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"c8906c98-4cd9-48a7-b8da-fd7e91a81fc4","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":185,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"58d49290-4c58-4e30-8740-eedd6d998f7f","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":185,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"a5950695-a105-4a41-aa42-4cb355f7c7a6","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":185,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"849168e1-1b91-41d8-802a-ba01a0f80b32","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":185,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"83f22dfd-aaf7-4204-95ed-e1bce5e7fd5f","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":185,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"b82a1cc8-85aa-457f-b616-3b32cd37e5d1","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":185,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"d92ed49d-ef8e-43f0-aa5c-d203d590660d","block_type":"box","text":"5","page_number":185,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"51c1eccc-b6fe-4391-9cda-6711c9589649","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":185,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"fc8eafed-5574-4185-a714-3d573a95e52e","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":185,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"80e955ed-1e4c-4c62-9510-3bb7e3fc2a15","block_type":"box","text":"component of fixed income investment strategies at BlackRock, par ticularly for those with sustainability objectives in","page_number":185,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"44433525-1753-480a-8f15-a471a2a58cda","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are under taken in","page_number":185,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"ba96d89d-1806-45c7-8856-cd81b6634096","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":185,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"31d949c2-33d0-4f2b-a467-0058780904d1","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":185,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"439f9be7-aa74-4e54-99eb-550bed0720bd","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":185,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"d91d7600-5a04-4fdd-9031-592943c0cfba","block_type":"box","text":"5","page_number":185,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"c02afa47-02cb-4ffc-9329-821b2ba7728f","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":185,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"af4ea239-041c-4ced-ba86-b2ffbf9f3663","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":185,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"d016f4d1-bf03-4d87-87ed-0d0fc5bf4dd2","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":185,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"d2203f71-81e0-4e25-928b-d26185045897","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":185,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c72d198c-bd77-4685-a81f-f27c24403f27","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":185,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"97780065-e3ed-4451-b6e1-907acb7a7247","block_type":"box","text":"NM0926U-5977728-185/232","page_number":185,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2f402a69-158c-4ee6-9943-584b0f8de10a","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":186,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"b88921de-4e0b-4ac9-9e19-7598a1ba9626","block_type":"box","text":"Roles and responsibilities","page_number":186,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"f0f8361d-022f-4b39-a03b-77cf3ffb5365","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":186,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"8975ca1a-90e5-482e-b93e-aa5bb3e8968d","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":186,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"99f516eb-02e4-486b-a8e2-fc6de4f69252","block_type":"box","text":"6","page_number":186,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"e5d15712-2c3e-44a5-88d9-6201b9bf4a1a","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":186,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"dabf7b7b-c2f4-4a2c-8b27-e34241c1ea04","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":186,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"14d81cf1-c4d0-47ac-8c46-16b54366b19b","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":186,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"ccb2617d-a161-4bf4-b961-104f818699c8","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":186,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"6407eb67-bffd-45f0-ac0a-382085d55fa2","block_type":"box","text":"per formance over time.","page_number":186,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"6790a10b-64a0-4494-a1cc-eba186ef559a","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":186,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"5c270e58-de05-44c6-a764-3fa49fbd16d3","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":186,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"70238ff7-0ebf-4f1d-b367-35b7a4136eda","block_type":"box","text":"One of the most impor tant responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":186,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"faa80a95-5b0c-4aea-9cc7-ed92a9bc421d","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the per formance of the CEO","page_number":186,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"13fd4245-0543-4470-839d-0d610809439d","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":186,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"fd748831-e8fc-4b2c-b808-7c81136dcce8","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":186,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"79a3ede6-f9d6-4446-8b45-38775eae61b3","block_type":"box","text":"Composition and effectiveness","page_number":186,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"a8af3227-adbd-4d00-aedc-12079a507de6","block_type":"box","text":"Appointment process","page_number":186,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"18393e74-feb9-41e7-b37c-76e2eab492be","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":186,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"1237b03c-276e-40ed-b334-3e13e48022f8","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":186,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"48a4ae7a-859a-4546-9bdb-05ca5ef2d140","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":186,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"f1d2ba68-5c39-449a-96eb-bc1d0bf8aeee","block_type":"box","text":"e.g.","page_number":186,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"684ba564-8089-4a8f-a921-333a0bc14497","block_type":"box","text":", sector, maturity, geographic","page_number":186,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"fadecedc-052c-4415-87d1-c794d16c70d7","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":186,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"29734085-814a-4d3e-8427-768735412cec","block_type":"box","text":"e.g.","page_number":186,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"fb9a8dcc-fd82-4f8d-a018-959a3240f18e","block_type":"box","text":", financial exper tise, industry track record). To","page_number":186,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"e0d154c8-6fa9-4765-8013-e2e1c950bfc8","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":186,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"465d819e-7793-4509-9f0d-537b31a169d0","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":186,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"f4d445dd-e5a6-43fe-a67e-64c778e26557","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":186,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"6a9e1364-d436-47be-ace9-a4c531ec9118","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":186,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"66f118a1-fa37-4411-86ff-13065342314b","block_type":"box","text":"and local market requirements.","page_number":186,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"ff98eca9-b5d0-41f2-ac23-0768dffcddc5","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any par ticular board","page_number":186,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"d288b88a-68a7-4252-8c13-30b1ba22ad6c","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":186,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"8ecd80c4-ad35-4d3e-8e70-b27661e03f84","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":186,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"767ff1db-b058-4e4e-895e-3d8724241297","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":186,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"74acee7f-54f1-42ba-a765-af2443a823a6","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to suppor t strong financial","page_number":186,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"250fbfa5-82e7-4d27-b567-e82c8919425e","block_type":"box","text":"per formance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":186,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"a3b372e8-10c0-4b64-af20-00ff826b5261","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":186,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"209d2970-88fa-4499-970e-a99c09c6f593","block_type":"box","text":"Independence","page_number":186,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"23e5dbc7-0b7c-4439-8cd7-96ecf0c727c0","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":186,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"7e0dc7d4-75ae-4202-9964-b53e80a4b6f2","block_type":"box","text":"e.g.","page_number":186,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"c80ae25e-d1e5-47b9-b591-4f5412944b4e","block_type":"box","text":", government or","page_number":186,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"34a28d79-5da6-4563-8ee6-3960c11a5355","block_type":"box","text":"employees) is of paramount impor tance to the protection of the interests of minority shareholders such as","page_number":186,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"78587067-399b-4a25-8356-96e52ecdac3b","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":186,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"8b73eb40-76cb-4356-b040-256866f95d9d","block_type":"box","text":"conflicts of interest or undue influence.","page_number":186,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"efa0f026-7e51-4f4f-afde-dca363073861","block_type":"box","text":"7","page_number":186,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"7ccd225c-30d6-496c-9e8f-c2424a85eaf6","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":186,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"19578969-5497-4a84-94f4-b51b664431fd","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":186,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"ddf35162-7b49-4362-8a78-4cc8a8af2992","block_type":"box","text":"independence should meet those local requirements.","page_number":186,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"9bcbcdb7-1296-4c50-8d1a-7db102c6c48e","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":186,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"72929ed2-a254-48fa-83dd-d9566d20f86e","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":186,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"3ccd3472-018b-4aed-87cd-54f83e2aa373","block_type":"box","text":"composition if this is a perennial issue.","page_number":186,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"2a942d98-e985-4994-a6ed-b4bc5c9e3fff","block_type":"box","text":"6","page_number":186,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"bc85858f-52b8-4184-a5e0-b21fc12eb8b1","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":186,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"02e3070a-25a5-4797-90bb-52065e7124cc","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":186,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"c56bab59-569c-4453-ada1-916c811ce4e0","block_type":"box","text":"7","page_number":186,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"d9bf96b2-e302-4186-b381-ebf5abf115aa","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":186,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"5afdcb3b-d9bc-4d78-a741-eab019814e73","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":186,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"fd192d07-d8ab-4c76-aa86-5c59bf65e303","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":186,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"da4a673a-5fed-4bcf-9d92-3b05c65ffc58","block_type":"box","text":"could, or could reasonably be perceived to, materially inter fere with a director’s ability to act in the best interests","page_number":186,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"ee3cc028-4678-456e-a136-c2de293e7654","block_type":"box","text":"of the company and shareholders.","page_number":186,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"4f2162f1-0f84-4f88-beaa-b146052e1f6f","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":186,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"fd6cb2e5-5380-42cf-8934-e9e57923968c","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":186,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"d851a361-4fe4-4446-8f72-f9c49923faec","block_type":"box","text":"NM0926U-5977728-186/232","page_number":186,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"79a5fd32-f5d8-44c2-8698-bc9507618213","block_type":"box","text":"Independent board leadership","page_number":187,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"dd8c9019-489c-455a-884d-2c073bd39b7b","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":187,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"ccec8ad3-6807-468a-bf31-526daa57eb72","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":187,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"decd342b-11dd-42e5-b67b-f4700267c4a5","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":187,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"a621e15e-8bb8-45ca-a847-31bcb3ccbe2e","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":187,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"f56aeb7f-cd30-46c4-8f47-a076b96a7544","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":187,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"69bc8abe-3331-4d15-9ad1-03c76bbce971","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":187,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"2d9abc86-6b5a-4026-bf84-e5e0f307663c","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":187,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"ef34989e-7146-4590-8652-5810f9451cdf","block_type":"box","text":"succession, executive pay, and board per formance. We look to boards to explain their board leadership model and","page_number":187,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"5bf3c448-5c68-4f66-9036-74c0060607d0","block_type":"box","text":"how it serves the interests of shareholders.","page_number":187,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"711b9d2e-17aa-4d30-8bca-d15c3c605a3e","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":187,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"a24d9370-6e65-437e-80e8-9e6e65872b45","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board per formance. We may vote against","page_number":187,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"6f4371ac-3199-46a5-b1a4-8b6cc3e0630c","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":187,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"351e496c-5d15-4b72-af67-f6da1b88cb30","block_type":"box","text":"Tenure and succession","page_number":187,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"d055e5d8-4247-4a33-99f4-045db007e018","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":187,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"d5353409-0506-42b5-9844-0da00be3766a","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":187,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"852db26f-e92f-40bd-8ba5-785f1294b65e","block_type":"box","text":"director tenure par ticularly around the contributions of directors who have served for longer periods than typically","page_number":187,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"b5ac16c1-1825-4429-9219-7772625a8d53","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":187,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"f2c1f8af-5d5c-4dec-8109-62fb2712f6ad","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":187,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"4ed66913-def4-4110-b577-cd8d3306c73c","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":187,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"251ea3f9-35c8-4148-89b0-15aa57d83bb2","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and exper tise with continuity through the","page_number":187,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"e1e6daab-5741-4847-bea6-56d62d150c30","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":187,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"70672dbf-4408-48d0-9d1c-bf5442bc173a","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":187,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"42da54a2-5a3c-459d-b20d-c532bc9cc450","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":187,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"58c0c68e-2713-4f10-b5fd-37341cb59b09","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":187,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"3a7ba046-caaf-4d4d-bfee-2c1cc2b95c7a","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":187,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"e6c0bca4-76e9-4a63-8465-1ac57bfaf59b","block_type":"box","text":"for their continued service is not evident.","page_number":187,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"881a403a-8f05-4121-a455-101c381cc780","block_type":"box","text":"Capacity","page_number":187,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"49d02467-e702-4122-a988-3028c873eadc","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":187,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"6bfe571c-12d7-4aea-a678-56ff11cb3f42","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":187,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"27f2e333-bba2-4675-a698-523b7bd9b1b5","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":187,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"965e7e88-e752-46be-bb5d-b4490e994f1f","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":187,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"1ebe0444-94da-4a43-8657-9532b11fd755","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":187,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"2a90e590-ddf8-4e33-8807-f540f766fd28","block_type":"box","text":"determinations across markets.","page_number":187,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"a571d3f9-018a-4c94-9b76-3bc07b4843dc","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":187,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"e6f97a02-0314-4dd4-8d05-b2bbb9e1f688","block_type":"box","text":"their duties to the board and company.","page_number":187,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"65ec4ce8-0e67-422d-bb4b-c29b6774e28d","block_type":"box","text":"Director elections","page_number":187,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"42d271b3-3576-4df7-8e0a-a426675ac0e0","block_type":"box","text":"Regular election of directors, ideally annually, suppor ts director accountability to shareholders. A classified board","page_number":187,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"c05beb4a-6a1f-4ef4-bb30-ce287ca2962a","block_type":"box","text":"structure","page_number":187,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"ff378f76-db05-4616-b836-4f2a7e71ae8e","block_type":"box","text":"8","page_number":187,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"d910a9f5-fc66-4141-98a6-c517ec1b2e29","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":187,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"3627b146-bbd5-420b-be73-dc0a2d127c31","block_type":"box","text":"basis of its business model (","page_number":187,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"d71b0ed3-84cb-4e70-a29c-923c77003362","block_type":"box","text":"e.g.","page_number":187,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"11c9578b-8f01-4b3f-b670-ec2c3bcf1870","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":187,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"8a7f5b41-4786-4d8c-a669-a9eae61269e9","block_type":"box","text":"Shareholders should have the oppor tunity to evaluate nominated directors individually rather than in bundled","page_number":187,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"e0f5a256-71d3-4fbd-8bb5-29596204ab44","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":187,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"b1d3036d-f030-45cb-bd90-afdfaa8a72f1","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not suppor t the election of directors","page_number":187,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"cda1f09a-9e70-4c5d-9023-893deee02420","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":187,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"78d57574-9b1d-4a50-9afb-a3f94e6cb77f","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":187,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"369d3466-f0bc-48dd-80ba-f203c6e16fae","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":187,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"c12e4c46-e506-45c1-bdf0-ca428f9e6588","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":187,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"70de2d8c-ae18-445d-895c-af66403a0e66","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":187,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"f9469f94-c6a0-4cd4-b4c7-6012cdad8c1e","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":187,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"1e00873c-0ef9-4efe-aa55-ab3a721a9584","block_type":"box","text":"par t of a single slate if we have concerns about the profile or per formance of an individual director.","page_number":187,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"c145c54d-6499-4aa7-8202-dec42f44fa38","block_type":"box","text":"8","page_number":187,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"601f18b4-7664-469c-ba37-f568e3a4fde0","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":187,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"ebf9cdd5-44e6-4a4d-b23c-8434df03697b","block_type":"box","text":"directors stands for election in any one year.","page_number":187,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"9b2bab93-15e6-4b78-9d84-707f74f097e5","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":187,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c92d5d4c-7531-44db-804f-22d5e0d15970","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":187,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"bb29dd0e-b729-47e9-8f9c-529b3dd62f4a","block_type":"box","text":"NM0926U-5977728-187/232","page_number":187,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7d38dc85-4270-4646-abfb-99967cf3de0f","block_type":"box","text":"Committees","page_number":188,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"07856242-7249-4d55-8cac-98c35006f5ba","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":188,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"5b2bcab5-31a1-4b85-83d4-cd5ad0e44a5f","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":188,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"49951c4d-c36e-41c0-bac8-32f5bcf43987","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":188,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"c0b52ba7-e454-4658-bfe0-8117944c9c52","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":188,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"f84c74a2-035d-41f9-b467-1e1c8b2baa49","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":188,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"1cb7a21f-ce86-4823-9226-8cffb6c13cf5","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":188,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"3eb01ee8-e382-4e4e-b583-fc3ca8015ddd","block_type":"box","text":"the board discloses the structure, membership, propor tion of independent directors, and responsibilities of each","page_number":188,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"19fed584-dc3a-4149-9ca8-069f9b342300","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":188,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"49a62faf-33c3-4c61-a6a7-c931bc11d15a","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"c8d26307-82f9-40ba-ae06-423d5c5ad5b1","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial repor ting, risk management and","page_number":188,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"9f054173-9f58-485a-8302-a89ad409e4d9","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":188,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"f866e68e-9c49-4b71-b10b-cc916dfc1e5a","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":188,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"ef469dd7-bccd-476e-9cf9-6ec616eb9d2c","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"348edb7e-cd42-4a71-8bf1-c9de296f772c","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":188,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"09e95508-dd5d-4b33-ad7d-3d841c5791d9","block_type":"box","text":"practices of the company, including the periodic review of board per formance; responsibility for succession","page_number":188,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"bcd5f561-8658-4aff-9122-3d1e226e85d1","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":188,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"cab93536-795e-48f4-b34f-0759e8733aa8","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":188,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"53b6e37c-1530-4055-88fb-4a9e36a33eec","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"737ca590-40ab-427c-96ca-046033ba22c9","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":188,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"94788fa8-4195-4d56-af79-f9e4365960bd","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":188,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"29e8cfa1-085f-40b2-82b4-43c7c9dbdead","block_type":"box","text":"firm-wide compensation policies.","page_number":188,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"98ef8db8-8d8c-444f-8464-5a7f6c1bb4c5","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":188,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"7772537f-c93c-4217-a936-1922fb73201d","block_type":"box","text":"to convey concerns about how a committee has under taken its responsibilities. We may vote against the election of","page_number":188,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"b30c6097-27ff-4587-b059-c5748caa6bf9","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":188,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"0a8a19f1-879f-4695-9220-aba3908fb2b6","block_type":"box","text":"Board and director evaluation","page_number":188,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"42f48e9f-9c4d-43e1-9e8b-599bddcbdfed","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the per formance of the board, the","page_number":188,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"2cd0fa4f-0446-4ab3-9c35-cef14d2496f6","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be under taken by an independent third","page_number":188,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"e3d4acd5-deef-4dfe-9418-3ab18c4c7e6d","block_type":"box","text":"par ty able to bring objective perspectives to the board on governance and per formance. We encourage companies to","page_number":188,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"0afd5374-8fcc-4586-9a92-475ac1732a35","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":188,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"dab50837-a789-4123-b97a-1f502815caf7","block_type":"box","text":"a result.","page_number":188,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"43f7e3dc-42a1-431b-9cac-dcc7947272e9","block_type":"box","text":"Access to independent advice","page_number":188,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"07b985a1-b5e9-48df-8e55-22ff598de2fd","block_type":"box","text":"To suppor t the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":188,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"a03e1c08-7121-4301-ae30-fc6102112900","block_type":"box","text":"access to independent advice. In cer tain circumstances, it may be helpful to boards to retain independent third","page_number":188,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"4dfdbaf1-d17d-4711-904a-c03cbc73a842","block_type":"box","text":"par ties to advise on critical matters. These might include new industry developments such as emergent and","page_number":188,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"db8bac70-fe39-4de3-ac2a-61be072be7f1","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":188,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"eb860637-d383-45f5-938a-b1166416deff","block_type":"box","text":"per formance, or significant transactions. Board committees may similarly retain third par ties to advise them on","page_number":188,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"9c9bb165-edea-4cfc-8d1a-5d2bc5e4327d","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":188,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"2486c760-8913-432b-a0c4-96c195db3c8c","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":188,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"d61785d1-eb4d-46f1-9203-3cf88610cc96","block_type":"box","text":"Boards play an impor tant role in establishing compensation arrangements that enable the company to recruit,","page_number":188,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"27a00d22-015b-417b-9d20-6ba55646feee","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":188,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"6bc90488-0aeb-4b2d-af04-62b28475a7c0","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":188,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"dd759997-d5df-48b5-9301-6e65e09985ec","block_type":"box","text":"per formance.","page_number":188,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"fed3d513-b945-43ae-8846-59cb166b4c61","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":188,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"c889cb7c-b4ab-40ad-b8ed-7f72f6a1567d","block_type":"box","text":"per formance against shor t-term metrics, incentives – most often share-based that reward per formance against long","page_number":188,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"348b03b6-7d13-48b5-bd6b-bb05f453ba6a","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":188,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"9acbfccc-9c2c-4f58-b295-fff2ea5e6e23","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":188,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"6470fc3f-e019-4cc7-913f-f2d399a52bb8","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":188,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"47505ccb-f687-4e14-883e-c30c09a0c2a2","block_type":"box","text":"recruit and motivate.","page_number":188,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"13565162-dab9-4d3a-95c4-ac120d510fc0","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to suppor t a company’s","page_number":188,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"09c7adbb-7123-4971-8ecc-6db06b2aa601","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":188,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"a6bb6fd7-9d26-4d35-b53a-f6822fcd0fd5","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":188,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"ae18c3f0-a19c-4d63-97bc-f68ab61a619c","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":188,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"7e086cf6-98ad-4f5f-a103-51c07c942690","block_type":"box","text":"arrangements include:","page_number":188,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"1425e51a-a2fd-43b8-834c-a0beaddcdbdf","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"6f8a81dc-368a-412a-b14d-b896851a9a02","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":188,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"4f90f114-be57-4491-b656-6ec9bbfcc3de","block_type":"box","text":"the company’s size, sector and market.","page_number":188,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"8a280526-99f5-42a6-a662-224285fa4566","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":188,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c13224bc-0e59-478a-82b8-6ffbdcaa0e36","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":188,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"371e41e3-bc04-402c-a956-9895d79c3cb2","block_type":"box","text":"NM0926U-5977728-188/232","page_number":188,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"598dc418-5b7c-4614-ae38-382d61f0713a","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"04eea7d8-4e57-4963-8b1f-87dfed353985","block_type":"box","text":"Variable pay subject to per formance metrics that are closely linked to the company’s shor t- and long-term","page_number":189,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"090d604d-a34a-4c1f-b8be-09fb020c9528","block_type":"box","text":"strategic objectives.","page_number":189,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"4c0c6eba-7acc-4026-bfc8-47b5b868cb6d","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"0016d97c-5f75-47b7-bd52-b9d5a67cb49a","block_type":"box","text":"Long-term incentives that motivate sustained per formance across a multi-year period.","page_number":189,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"1e5b9a60-4b9e-41e9-b14a-cf76f0c5ffd5","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"61afaae9-e7c6-4720-a533-47c3ea98691a","block_type":"box","text":"A balance between fixed and variable pay, shor t- and long-term incentives, and specific instruments (cash and","page_number":189,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"5b815cc4-e1be-48ac-afee-ecee3b01b5f1","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":189,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"6af5fcc0-f773-4d1b-a89a-947ae8a8e926","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"bd4dbb59-166c-49e2-a20a-196afd6dc788","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":189,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"766290db-9379-4f7d-84e0-b4d64c9a0027","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"d2af357f-5069-44c2-8956-86d3f6680a95","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":189,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"f3bac320-9a86-41fe-bb96-047b0dc99a8f","block_type":"box","text":"transparently.","page_number":189,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"65b533dc-7f14-4b2d-be0e-48a7b8d68ef7","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"1a1dff8f-5cc3-4fba-af2f-b3625148635f","block_type":"box","text":"A requirement, that par ticipants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":189,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"8c21e8a3-3ae8-4ee7-a850-9b6de095d6bd","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":189,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"35d441f5-b64e-4f63-94cc-e9d5b95ef59c","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"69dde4d4-99a8-492c-9365-2710021ba457","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":189,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"637b77c4-aff8-4cb1-bbd1-915c2c05c8e3","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"15892386-fcba-4cd8-9e45-ff361ba95ea4","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":189,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"67dcf318-87e4-4f53-8105-a691949d102b","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial repor ts, or executive","page_number":189,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"7439130e-f233-45f2-938f-9362c7255a1d","block_type":"box","text":"misconduct.","page_number":189,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"bb96a60f-bb75-44ed-8938-f03427fc9a2e","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"93fcc4e0-f2ce-407e-bf24-5e1244562b45","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":189,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"f83db1ed-d73f-4b10-9353-8075d2226f0f","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":189,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"c0b1d07a-5464-4f18-a5c5-ec3119d15e7b","block_type":"box","text":"approve the compensation repor t where we do not see alignment between executive compensation arrangements","page_number":189,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"6bbc53e7-1904-4dd8-9631-626876e06843","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":189,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"583f67f4-7615-4c26-bd40-2d250bdfc0b3","block_type":"box","text":"compensation misaligned with per formance, we may vote against the election of the chair of the responsible","page_number":189,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"a502481a-9b0a-46e2-9ed4-7889e6354f9d","block_type":"box","text":"committee, or the most senior independent director.","page_number":189,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"ba9582b5-bac2-45ee-abb3-8251ed7c7299","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":189,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"c55a25de-3b47-4448-8688-39240b5eed94","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":189,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"97ee388c-660c-473b-a766-33327fb5e94d","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":189,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"2e7c5963-36b3-4630-a71b-5ed9e868abed","block_type":"box","text":"do not suppor t non-executive directors par ticipating in per formance-based incentive plans as doing so may create a","page_number":189,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"f6d5fc7f-d0a3-40f1-b891-e91bc3dabe60","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":189,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"b54938b2-15cb-479d-9c65-91077ac179e6","block_type":"box","text":"CAPITAL STRUCTURE","page_number":189,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"e17c89bb-46eb-4939-ae5a-508e31d0db9e","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":189,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"e254ca27-cc4d-4316-aa4f-85c9ce8448d6","block_type":"box","text":"appropriate capital allocation in suppor t of long-term financial resilience.","page_number":189,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"35a1200e-b8cf-4973-99fa-505a65be9e1d","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":189,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"8eb950e1-b71c-483b-86a6-7f64a566a631","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":189,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"850dbecd-20f2-44a6-8aa9-a0cdf5a9b0bc","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":189,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"4c1ddb05-1ffd-4883-933b-582b0708dcd4","block_type":"box","text":"company’s approach. We may also suppor t a shareholder proposal seeking conversion of shares with differentiated","page_number":189,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"1d4658c6-89c8-436a-a73b-053187cc2020","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":189,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"22f5c1d5-36bb-4f0c-9e97-61e16922e6a5","block_type":"box","text":"Share issuance","page_number":189,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"d28ee3a1-14e0-4ecf-8845-de33616c8b97","block_type":"box","text":"We assess requests for share issuance for par ticular transactions on a case-by-case basis. We will generally","page_number":189,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"21c6e1cd-d9e0-43fe-8554-33d2c63efc52","block_type":"box","text":"suppor t authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":189,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"cab90ade-9bcc-4e4c-b26d-019563e26fea","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":189,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"5b2b4445-4cea-4666-b1e1-cb88f9d92b87","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":189,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"8984e8af-d72f-46a7-91df-a6c03364af34","block_type":"box","text":"market environment.","page_number":189,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"ecf7df7c-c054-43cd-9c75-dc8063fa152b","block_type":"box","text":"Share buybacks","page_number":189,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"ceb115c7-663b-42d9-919f-ef5d6dd5ebf6","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":189,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"4e0acbd2-3d79-4fc1-9bfe-5e2c39674c5d","block_type":"box","text":"management’s determination of the appropriate balance between investment that suppor ts the long-term growth of","page_number":189,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"baaf71bc-b58a-4311-9311-95fccd8a2058","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":189,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"b8be0214-5dee-405e-b996-40578a53f8df","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":189,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"540ea0f4-5cb9-43b4-a2f8-06f2a46e5931","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":189,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"f94d938d-c819-4f1d-94d5-280c6fbd36a2","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":189,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"6296f5a1-974a-4699-9ae4-4ec18cc8ed90","block_type":"box","text":"of the company and the market environment.","page_number":189,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"334d2a7a-b10b-42ce-83d6-4bb47216e6a7","block_type":"box","text":"Dividends","page_number":189,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"1c578ccd-d08e-49d7-92a6-0db43f485e35","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek fur ther clarification","page_number":189,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"5e74028f-f673-4a93-93ad-bf145a53bea6","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":189,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"34504207-b74d-49db-8a8e-9b8f2c66e42f","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":189,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b349e892-808c-4a1c-9dc0-385fd35e155b","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":189,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"8558bffa-0160-4a0a-83a6-7f5775768439","block_type":"box","text":"NM0926U-5977728-189/232","page_number":189,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"79959e00-0714-41cf-adbd-5bcb88d78ad8","block_type":"box","text":"Differentiated voting rights","page_number":190,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"d68b5269-b9a5-423d-ba23-eab5c8dfad14","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":190,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"be08a64c-189e-4410-90b0-347e6c2d8073","block_type":"box","text":"exposure. Cer tain companies, par ticularly those new to public markets, could make the case to adopt a","page_number":190,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"c112c688-4b29-4184-bc0d-9e6d9de0e829","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":190,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"0dba8ef1-62c4-473f-a0c6-df47c9b67b02","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":190,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"66ed34ef-e7b0-461e-a3b2-e577f29d1883","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":190,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"828fec1f-915f-4b4b-a0a7-3cee93b72d5e","block_type":"box","text":"We monitor developments in transactions and special situations closely and under take our own detailed","page_number":190,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"bbdad71d-06bd-4190-b092-ae8331a96624","block_type":"box","text":"analyses of proposals.","page_number":190,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"8a47b051-dfaa-497d-b0a1-0bb207c1be9f","block_type":"box","text":"Mergers and acquisitions","page_number":190,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"353c7b31-0b12-4dfc-b8ee-a62aa1ad1e28","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":190,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"126c7c35-0870-408b-ac1d-6ef53899ea48","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":190,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"9de8dc73-656d-40a3-9820-672bcc3017fc","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":190,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"5e7817e2-e6d1-475c-ad5e-93098ca1ba44","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":190,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"eaa88eb6-7aeb-4512-8b12-b403d3462013","block_type":"box","text":"an ad hoc transaction committee to under take an independent assessment of a significant merger or acquisition, in","page_number":190,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"681098dd-add5-41e7-80b8-2e4424f4d380","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":190,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"ba452b04-9680-4e19-9799-34a819829824","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":190,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"1e64fca7-6c4e-4188-aab6-936acc2c9fc3","block_type":"box","text":"Anti-takeover defenses","page_number":190,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"04179c98-3866-408e-b459-db51c86aa1eb","block_type":"box","text":"In principle, we do not suppor t companies using anti-takeover defenses, also known as poison pills or","page_number":190,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"8c509c08-bbe8-4264-a287-686953c43ade","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":190,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"fc38478f-224a-4f03-8e4e-243d3a05ce28","block_type":"box","text":"shareholder value. By exception, a poison pill may be suppor ted if its purpose is to delay a takeover that is","page_number":190,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"fae91293-912f-44f3-8b2c-7df9db0f513c","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":190,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"e84fbae4-b779-43fe-9881-3b53fb847470","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":190,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"a4ef2288-6088-4766-9ab3-d776b0ed3c03","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":190,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"a8f97111-cb23-4d67-a097-2a00c6316750","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":190,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"6e9505f9-131c-41ff-a1ea-83036f251f00","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":190,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"a42d55f4-0d50-403a-ad08-a481578eee7d","block_type":"box","text":"Shareholder activism","page_number":190,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"26b24c2b-1269-4fc7-ab12-31c015949153","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":190,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"75f0fa75-9a49-4076-b012-b9de8793c0bb","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":190,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"da452662-5f93-45bb-99fc-8cca6c3614ca","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":190,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"039d91e4-65b5-495b-8902-28100ab464af","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":190,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"650f4b5e-0367-4830-8978-484ce18514f9","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each par ty’s candidates. We evaluate","page_number":190,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"cf2763b2-6e13-4ceb-9c19-a2c3c51e326b","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":190,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"13faa70b-adba-4a12-893f-b5a9f11871fa","block_type":"box","text":"We may suppor t board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":190,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"80ed014f-cd49-4ab1-8ce4-5637c89f1682","block_type":"box","text":"the relevant por tfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":190,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"6ce17291-7f9e-4c85-b1f0-fb502fcb09d9","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and exper tise or have a poor track record of","page_number":190,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"14d49c8c-54d0-4a8f-8533-3bf08a329b2e","block_type":"box","text":"protecting shareholders’ interests.","page_number":190,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"1c4bc3fe-62c3-49cd-b37b-a84d584f01fa","block_type":"box","text":"Significant shareholders and related party transactions","page_number":190,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"55df5503-5bb0-4c1a-9906-65e60a47cb1b","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":190,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"77c22db0-740f-41a3-823e-f59723200097","block_type":"box","text":"interests of all shareholders when evaluating related par ty transactions.","page_number":190,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"4803779c-4c72-4653-abd2-b5e8655b7e1b","block_type":"box","text":"We consider it good practice for transactions with related par ties, such as significant shareholders or companies","page_number":190,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"74796544-0105-46ad-b4f0-8efe56e60dc0","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":190,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"35da558a-862d-48d3-a0c5-06406258e651","block_type":"box","text":"have been agreed with a non-related par ty. In our view, such transactions should be reviewed and approved by the","page_number":190,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"f910364b-9dc4-4fc8-b0b9-90693c878ffd","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":190,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"3fd7b317-549b-456b-99b9-dd07ecdbf944","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":190,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"8db9e42e-d2c0-4f94-a353-c9eeba7930ac","block_type":"box","text":"Investors depend on corporate repor ting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":190,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"036ede0f-9d29-47aa-8f21-f868b208ef51","block_type":"box","text":"implementation and financial per formance, as well as to assess the quality of management and operations and","page_number":190,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"edeb39b6-e67a-4730-8eae-2585115216c6","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":190,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"a7202c0f-7cd6-4efa-a44e-dabe7eb10701","block_type":"box","text":"oversee corporate repor ting and the policies and procedures underpinning the internal audit function and external","page_number":190,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"df118578-5884-4db2-b052-0f49af9974e3","block_type":"box","text":"audit.","page_number":190,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"b0d7746f-6b88-4d93-b8fc-a6c8f2dae39b","block_type":"box","text":"A company’s financial repor ting should provide decision-useful information for investors, and other stakeholders,","page_number":190,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"4b18a3a8-3dd3-4234-8c6d-b71f10b90c62","block_type":"box","text":"on its financial per formance and position. It should provide an accurate and balanced assessment of the risks and","page_number":190,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"e7bf2e26-fc07-429e-8a4d-3e7acf95e72d","block_type":"box","text":"oppor tunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":190,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"4837b198-1eb1-43b8-aaef-d82a603b536f","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":190,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"7767bf1d-5e76-4d9f-a0b8-0cc32f94dee0","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":190,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"9fe97bbb-0ad5-4f0f-b773-2fac15a116c2","block_type":"box","text":"NM0926U-5977728-190/232","page_number":190,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6d642beb-138c-4ff5-9466-b38b6187da18","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":191,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"99068d2a-66df-460a-81b6-8c7dcb26de7b","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed repor ting standards and any","page_number":191,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"3e604468-7a77-42fc-b3e8-fc8e146f599f","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":191,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"c7ed4f68-97e7-4359-a473-c2df7ffca359","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":191,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"a431db14-ddd1-4d2d-be5a-c6d2a4832c05","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial repor ting system by providing","page_number":191,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"062eaf91-8fd4-40c8-b22a-e28d3556c547","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":191,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"bddddb11-3c17-4fb3-9efd-6b6c442b4bc6","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":191,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"80f66511-4bf0-4f04-af65-71e4c28e20f5","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":191,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"6e407b71-b2bd-4afd-b767-0e1875e69685","block_type":"box","text":"impor tant level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":191,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"b9cee3ce-7753-43c9-8118-f7cb94d72c0f","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":191,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"ac7bd29d-70b7-4304-aaf6-b7a30ea82a0e","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":191,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"e13e699a-d64a-4713-a79e-8851c427d6d1","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":191,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"8befb432-405d-498d-9846-f99e55af4193","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and oppor tunities. The International","page_number":191,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"4ea34bae-5097-496d-a60d-115a1480e63d","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its repor ting standards,","page_number":191,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"0176c925-4233-4954-815e-5141ca8b5e22","block_type":"box","text":"which may be helpful to companies in preparing such repor ts.","page_number":191,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"2bc62f46-a141-43f4-b3a6-3c0b90e0fe56","block_type":"box","text":"9","page_number":191,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"10cf001f-ecd9-4048-af4f-ab2b869b5fda","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":191,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"84af9bbd-61ef-481e-9e16-d48b802339f9","block_type":"box","text":"framework, and note that companies in cer tain jurisdictions are subject to mandatory repor ting requirements under","page_number":191,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"81841039-bbd2-4ea4-aa5b-0e8a17d72bf8","block_type":"box","text":"standards specified by policy makers.","page_number":191,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"9a4e1bc6-2e44-4d2f-804c-dfb0c1cd70fd","block_type":"box","text":"10","page_number":191,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"66f7ecb2-eeab-4fcf-8e5d-a36d019b2b51","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":191,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"a826b930-8c85-49a5-80da-4596b22552d5","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":191,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"188f8a97-ce8d-44db-803a-15bce4d11f24","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":191,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"27a2690e-cd2f-43bb-9309-55d4de5d19a2","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":191,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"5afaf2c4-8939-474c-9f5f-2c3aefad5f90","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":191,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"dbdc5468-7de5-45cf-8327-9de1cd0fc8aa","block_type":"box","text":"of corporate repor ting. It is helpful when the audit repor t gives some insight into the scope and focus of the audit, as","page_number":191,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"7a79d2f9-f3c9-4be2-878f-5495c1a5b1c8","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":191,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"fb746855-dfcb-4f1d-b97d-75f2d9c8a2f6","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":191,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"4d07a665-74cc-44a6-a461-0b7ce37f904d","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":191,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"b3588c63-c0e5-4ddd-aed9-ebbda9cf3aca","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":191,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"ecfbdcc1-8165-40fd-9176-87f3ab2a2526","block_type":"box","text":"remained independent.","page_number":191,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"1d2bdbc3-1cec-4082-89cc-181e8d47d2fb","block_type":"box","text":"We may vote against the election of the responsible directors if corporate repor ting is insufficient or there are","page_number":191,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"57012ec6-1e1e-4cd4-9707-63a0c3f2e49e","block_type":"box","text":"material misstatements in financial repor ts. In markets where relevant, we may vote against a proposal to approve","page_number":191,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"d97f811f-e3d6-4c36-82c6-d178fb568ea6","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":191,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"bc030cd2-4020-4d2c-9e4d-63cccb428bd7","block_type":"box","text":"repor ting or the audit. We may vote against proposals to appoint the auditor, ratify the audit repor t, or approve the","page_number":191,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"9dee4c31-efc6-4505-91d7-3242992b6cb5","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":191,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"adb6c8a8-238a-457f-b57d-341b3402c5ce","block_type":"box","text":"misstatements in financial repor ts and the board has not established reasonable remediation plans.","page_number":191,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"e3e93aae-a832-4d78-bed9-e17cb7dfcd12","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":191,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"81bd61d1-46d5-4aee-adb4-8586bc8f4025","block_type":"box","text":"General shareholder meetings","page_number":191,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"9fde262c-da1c-444f-b98a-3e1b72d36f71","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":191,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"94b2ac35-c8f4-466d-bdeb-649717b59bed","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":191,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"bdf3f8e4-b27e-401c-954b-1781b8c27ed9","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":191,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"aa94db5f-0540-4b12-bade-29a05e0244f6","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of par ticipating in the","page_number":191,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"5886f01d-b3d4-49f1-a06a-b5b817a60251","block_type":"box","text":"meeting vir tually which, whilst welcome, should not limit the rights of shareholders to par ticipate as they would during","page_number":191,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"a6483956-7dcc-46e3-a54f-24cd35db5a6a","block_type":"box","text":"an in-person meeting.","page_number":191,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"cc946db8-1591-48da-8146-5feb3822edca","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":191,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"ce98f323-8224-43e8-ba8a-13595af242c3","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":191,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"5d904892-091e-4cad-bdbe-800d2aeaf71e","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":191,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"e123ace8-44e4-4ace-8b44-2ef2181d77d1","block_type":"box","text":"par ticipation.","page_number":191,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"8bcce8a4-5a4d-4f38-a5f6-6e903e2fe55e","block_type":"box","text":"9","page_number":191,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"306ddbdc-8e61-437f-ac3b-a8c0fb2d967e","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":191,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"0ce9fb8d-f92f-459d-9640-282295006e1e","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":191,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"e96995d9-d209-4871-949e-596148407c7c","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":191,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"4bef9996-73cb-4288-a64f-0196c0498701","block_type":"box","text":"Disclosures.”","page_number":191,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"ace13337-5c72-4d54-b2c7-a3ea6f54559a","block_type":"box","text":"10","page_number":191,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"3e99d7c8-1d95-4e88-aef7-7e0211d46fe3","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":191,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"82d22324-94c2-4756-8ab3-d557477bee5c","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyrepor ting\r\nandaditing/companrepor ting/corporatesstainabilitrepor tingen","page_number":191,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"b143c3a8-96c1-4705-9f35-21c8f35fc2b2","block_type":"box","text":"p/ p//p/p\r\nrepor ting-and-auditing/company-repor ting/corporate-sustainability-repor ting_en.","page_number":191,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"db235fdd-6f09-4cb8-bdd8-e2c16e5245d1","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":191,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"9550d512-fe41-4905-81d7-2f0943d096ff","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":191,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"f07e70a3-75ce-4335-8995-dc379d2a6d01","block_type":"box","text":"NM0926U-5977728-191/232","page_number":191,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4fcb621d-d1b3-491b-b53a-00867c8ab3cd","block_type":"box","text":"Bylaw amendments","page_number":192,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"6ef3cf8f-4877-41fd-b58f-3de8533d3966","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally suppor t","page_number":192,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"55e91bf2-0c7e-4e85-9583-29029c8f4a68","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":192,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"d809cd86-9b96-4240-8075-0e2ccf4cd61c","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":192,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"3376b01b-5fe9-4681-b450-7d0eccc6a8e0","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":192,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"f6d7e007-8a73-4ba1-b2c5-c07648483664","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":192,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"2f83e7b0-dba8-4829-8877-2baf5db0a3b4","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":192,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"367042ff-865b-44d9-a3d8-5f2781dfd3a7","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":192,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"77ea9443-c593-4018-8af0-2df40c108cb4","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":192,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"bc622b23-b66a-4428-9aed-def0b3461fbf","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":192,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"ef3a3268-cc3c-4d81-a942-7c5afe81bfee","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":192,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"92ddc479-fce2-4efe-b8e3-0b5a2deda277","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":192,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"33046045-8d1f-4a43-b33b-4e07277279c2","block_type":"box","text":"nomination process.","page_number":192,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"822bdd25-34bd-4e6a-a40a-85a3683622c9","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as impor tant accountability mechanisms.","page_number":192,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"5ffaae58-f853-4c25-9597-561d8bdc37a6","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":192,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"6ce56a07-37f5-4c39-bf74-4d6df580394e","block_type":"box","text":"Change of domicile","page_number":192,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"89c812af-ea2d-445e-8598-5f8af9e82815","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":192,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"d024f2bd-9ec9-4d39-8180-5ee2f579b6ca","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":192,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"e632e2f6-340a-4070-8aed-d0344fe514bf","block_type":"box","text":"immaterial.","page_number":192,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"149dafc7-78cd-4503-836c-e406525aa66b","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":192,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"0cdda4d2-234a-4c51-9e43-4b875f69aae3","block_type":"box","text":"with our clients’ financial interests.","page_number":192,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"63c7d541-2a51-423f-a42d-6ccdba59ca41","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":192,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"1aff19f5-7c1a-4f6b-a1b3-3f986a6c17c6","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":192,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"557a3f36-5e4d-44da-bc20-5b92510e530a","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":192,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"00908d99-ded9-408a-8913-e97448b1c184","block_type":"box","text":"on the suitability of a company for their investment strategy or por tfolio.","page_number":192,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"269834c1-241b-47a0-bd35-a34ef48c848d","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":192,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"6ba09574-fcde-4629-8d32-78515aacea99","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":192,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"947cb24d-7755-44aa-b051-cb58cbf13531","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":192,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"12d4808b-c9fc-4be6-a2f3-9b01f23d171c","block_type":"box","text":"Shareholders in many markets, who meet cer tain eligibility criteria, have the right to submit proposals to the","page_number":192,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"779ccf70-6f71-42d2-8643-edb20efab397","block_type":"box","text":"general shareholder meeting asking a company to take a par ticular course of action subject to the proposal being","page_number":192,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"387c37d0-5164-4eee-b0cb-8e9f532309b8","block_type":"box","text":"suppor ted by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":192,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"0602e34f-7fde-4fd3-a20d-34d0cd91bda2","block_type":"box","text":"relevant to a company’s business.","page_number":192,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"4bb4cc7f-5b74-4e9a-876d-9a8e28439b7a","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":192,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"7f01e5c5-2230-401b-9893-56ce152af7ed","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":192,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"b35533bd-d4e8-4e67-90a7-efc55749d144","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial per formance.","page_number":192,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"3c17c42b-fed5-465e-b002-e6c2e806ccfe","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or per formance is to","page_number":192,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"79ec9a57-9d48-455a-913c-79721cb4b2f4","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":192,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"805e7aec-baae-41ef-aaea-01679370e15b","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may suppor t a relevant","page_number":192,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"24d8d29c-5350-4a2d-898c-02270147e0ee","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not suppor t","page_number":192,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"b203acb5-069b-491e-aa10-340bb3bf96ba","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":192,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"5952a0c9-81e0-4b7e-84b3-b171895ecd89","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":192,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"fdca2668-a8d5-49c0-923f-6496cef5c50e","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":192,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"77fe4743-301d-4734-aa91-ba2aa00fcea5","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":192,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"3b6bfa24-fcb8-4c5c-9fe9-9ffcde1d7814","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":192,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"30736b4c-e8d7-440a-9240-644d3cff48f1","block_type":"box","text":"who authorize us to do so, on proposals put for th by others.","page_number":192,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"cd096b62-2588-469d-954c-daa17058c868","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":192,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"b6e56545-ef8f-4bf3-9c39-4a356eccc67e","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":192,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"ecdb6b1b-7660-4f61-8bf2-302a27ef50a5","block_type":"box","text":"in which they engage. When a corporation repor ts material financial risk related to policy and or regulatory changes,","page_number":192,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"8d5d7e50-6323-49c7-8d92-e14d4529be32","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":192,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"d8cbb5e8-a37d-42fd-bb1c-3dd6c4be024e","block_type":"box","text":"companies engage in corporate political activities and ensure that their par ticipation is consistent with their public","page_number":192,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"1c24665d-96bd-446e-bd31-6681a497f40f","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":192,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"068d6953-7fec-4062-abc8-07ca42889bf4","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":192,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"6e397418-f5d0-4f72-91bd-d039e29281fd","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"fe863f7e-3ff0-4c14-a89a-ad71e224c820","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":192,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"d5049dec-f786-4f40-8429-cb1aefac7fdf","block_type":"box","text":"NM0926U-5977728-192/232","page_number":192,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f8354a4d-f191-40cc-b316-ca4af9aa8081","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":193,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"fbba9f05-d605-446d-bbcf-3fc2b0d0d154","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":193,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"fe4d047b-1c1f-4b4f-bed7-7ba8fe092ae8","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":193,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"e5830812-c74c-48d3-a32d-5265a8b7848d","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":193,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"63d52084-87bd-4f77-9852-8b6ff47f6319","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":193,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"aaf10f2c-40fa-4065-8c1f-1586cfadf70b","block_type":"box","text":"under taken by trade associations on behalf of members.","page_number":193,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"a68c9067-0d08-47ca-a60b-d26335997dbe","block_type":"box","text":"We may suppor t a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":193,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"fc77028d-da5b-4387-9b09-976d49e901c7","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":193,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"91c645e5-182e-45b6-aa16-9819987b7335","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"9f339347-8c3c-44c5-a5b7-29a15ed62d0e","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":193,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"a55807b5-b234-42bd-a0ca-98da08cf5504","block_type":"box","text":"NM0926U-5977728-193/232","page_number":193,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ae363624-d3e6-4eb3-add2-3a5a1aafe1ee","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":194,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"3bdf9feb-3ab9-498d-9329-ce43a5c3fe42","block_type":"box","text":"We seek to understand how companies manage the material risks and oppor tunities inherent in their business","page_number":194,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"944ec9c4-75d8-4cd4-96be-67f577ac5e56","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":194,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"adfc4915-c153-442e-8150-ee54cb88a7c0","block_type":"box","text":"11","page_number":194,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"dfa6d4da-7ba2-456a-92b4-f1f259087017","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":194,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"11f5e0e6-138b-4a21-b0e8-6f75a1e5bf84","block_type":"box","text":"its financial per formance, are generally operational considerations embedded into day-to-day management systems.","page_number":194,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"83a70091-0647-4524-854d-94381e957a6c","block_type":"box","text":"Cer tain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":194,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"391b6bfc-31e3-41a2-ae98-665f6877c43f","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":194,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"952e311e-7986-41a7-862a-a2d56a87b5b1","block_type":"box","text":"regulatory requirements.","page_number":194,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"2027474a-ac2b-4a94-9f99-fb85cfc869a9","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":194,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"f0f03d82-3867-4ca6-9a42-7f7811406590","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":194,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"d5a5e7fd-2fc0-4e8b-afed-016350804a91","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":194,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"08442e0a-7638-4521-be02-b542f9534f50","block_type":"box","text":"integrating material sustainability-related risks and oppor tunities into their business decision-making and practices.","page_number":194,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"6c92e866-8c01-4b33-937e-97b12964136a","block_type":"box","text":"Doing so helps us under take a more holistic assessment of a company’s potential financial per formance and the","page_number":194,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"8de59bb5-091c-4a49-8e74-a898f8f09ba1","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":194,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"c20c702a-726a-4c3b-a080-005cf3b4a90d","block_type":"box","text":"We may vote against directors or suppor t a relevant shareholder proposal if we have concerns about how a","page_number":194,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"2ac8693f-7489-465a-bcf4-d410a8054bf5","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":194,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"70aa8882-72e8-493a-8e97-60338a783757","block_type":"box","text":"returns.","page_number":194,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"f062fcf2-9117-48c2-bcd7-c590428bc84d","block_type":"box","text":"KEY STAKEHOLDERS","page_number":194,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"62d86ef8-b433-4307-a19a-1127b69bc14c","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various par ties on","page_number":194,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"fe5aaa42-2382-4233-a470-e73d396e7a4b","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":194,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"44d5948f-2cb3-4e32-a815-1d64f71aae04","block_type":"box","text":"what is material to their business and long-term financial per formance. For many companies, key stakeholders","page_number":194,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"2058956d-00ce-4f50-9824-8c86a34b40dd","block_type":"box","text":"include employees, business par tners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":194,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"730662fa-5c68-41f1-a3ed-ec357690626f","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":194,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"b77804a6-4993-46cc-bc1d-fce281418be9","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":194,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"01b7176c-e5a6-4474-a7bc-8bf900e1f856","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":194,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"a822ef67-9611-4ed1-9b52-e81a91fb0e90","block_type":"box","text":"Cer tain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":194,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"aa77507c-8356-4b3c-8a82-69f82728e394","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":194,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"f006f146-b3bc-4517-afc7-aa3c7a09ca08","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":194,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"c4f857c5-d350-4280-b781-32acc8581445","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":194,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"586cd12b-fb48-4b21-9544-ad18b728d5b0","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":194,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"fdd823ee-4e22-4ca8-b5a2-8cd6ee65cf16","block_type":"box","text":"i.e.","page_number":194,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"08b0419c-d610-4f77-9641-c07a0855b2fa","block_type":"box","text":", one in which global","page_number":194,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"629fc102-eb6f-4890-a0d7-b8e0f584bca1","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":194,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"a4fb0efd-f2e6-4a44-9bea-687d252809f9","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":194,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"1f0475f0-4bfa-4b1b-a2f2-94d698acfe27","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":194,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"3b79efef-d475-4063-bcb7-ed5ce32903ee","block_type":"box","text":"client.","page_number":194,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"c99df7a2-5247-4caa-a9a9-3e1823e77fb5","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":194,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"203f43f6-9cfe-41f7-bab3-5f9ad1d1c727","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":194,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"9d5496f8-d541-4548-adb8-09a922584ecd","block_type":"box","text":"the low carbon transition, based on repor ted and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":194,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"26170a3e-7801-485d-9547-76fe0f97c917","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":194,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"06182578-81f6-4333-a76c-c3b7a95d3c0b","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":194,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"df8eca36-1ebf-4f91-8417-684863559a3e","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":194,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"cb6e613a-ed16-495e-82ce-e7520f316fd9","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":194,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"08defe71-3c5e-4bf1-98c2-49e87f007364","block_type":"box","text":"1 and 2 emissions.","page_number":194,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"d6171f83-df97-453a-b39f-c25fadcf62ea","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":194,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"a0ba11ea-9e9a-4df8-ad34-ccacd5a5f522","block_type":"box","text":"suppor t for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":194,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"191e108b-cf51-4ad3-a151-58c8396a8472","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":194,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"fd37bb6d-15df-4a70-9a86-3313e22216a3","block_type":"box","text":"specific guidelines. We may recommend suppor ting shareholder proposals seeking information relevant to a","page_number":194,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"aadb9b73-a34b-4393-a1ad-bba7ac70f9dc","block_type":"box","text":"11","page_number":194,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"089d59ed-c0f1-4a71-82ce-86ee53165c83","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":194,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"10151cc3-5052-4d02-b85c-15e6da1f8788","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":194,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"893e93c1-ac43-44b4-8bb2-ec02cc122cf3","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":194,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"a3ce5acb-21de-482f-9359-b4458d454adc","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":194,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"163bb8b0-dcc5-4b37-8304-f15f15e9f784","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":194,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"48ea54c2-6d8b-4a28-b602-38379066a5c5","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and oppor tunities relevant to their businesses.","page_number":194,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"db7e57b3-f74c-42c1-a63f-bd1d16ebbe67","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":194,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"3a301da9-7390-4049-a899-3b1480282a4f","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":194,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"3ef355ca-7bab-472f-85a3-9acc6f17cafb","block_type":"box","text":"sound governance framework.","page_number":194,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"f860d102-9bee-4697-ba7c-b01ccb72e56b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"6f236570-aa74-455b-882b-01ba3f1d2b79","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":194,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"de17a505-4015-4ffc-8998-743175ebae91","block_type":"box","text":"NM0926U-5977728-194/232","page_number":194,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"909dee6d-3dbc-49aa-b343-4bb8cf289bf3","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":195,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"e816e055-f999-4e6d-8671-e6f2bf30035b","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend suppor t for shareholder proposals that","page_number":195,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"84dac5ee-5a6e-4816-b6db-b7e83ab2a304","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":195,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"3f637aee-1f99-407a-bd97-5b5d1454ef44","block_type":"box","text":"the BAIS benchmark approach, the active por tfolio managers are ultimately responsible for voting consistent with","page_number":195,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"03bfedf4-2b7f-42e0-8ccf-cf2fdce509bb","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":195,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"aeef13fe-16c3-4484-b1bd-77a939180637","block_type":"box","text":"climate risk and the energy transition is under taken in line with BAIS’ benchmark guidelines.","page_number":195,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"e73af7ef-1c1a-4191-b4ff-f137a258c86b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ff85bb5c-b101-4ad1-adb5-755fe2a2c0cd","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":195,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"4355cbd9-86d2-423e-8873-84b29a9b2074","block_type":"box","text":"NM0926U-5977728-195/232","page_number":195,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3cb49c17-b0b9-4b23-8bdd-03f4e96ea175","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":196,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"be803ff9-338a-49c0-850e-f4a19c4b8613","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":196,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"c718bda6-1032-4f81-a3c8-3b4e7475bdc7","block_type":"box","text":"Oversight","page_number":196,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"a85fe59d-e1ed-46f8-b257-bd1b7e1d14e4","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":196,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"4e4e4742-f281-4d3f-b67e-e0b84b0a4963","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":196,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"6a572d70-d84d-4be6-96d2-0e60b7bac3b8","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":196,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"c954fad4-8370-4341-92cb-26ae300db6f1","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":196,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"57bfb28d-fb2e-40e0-8dd1-a0e851717680","block_type":"box","text":"in our engagement and voting activities, repor ting lines, and oversight.","page_number":196,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"91041f7d-a330-45c9-aab3-048373ef748a","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":196,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"6a2e950a-da33-4b3a-9a6b-5e6ebdc67da1","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":196,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"afe4fcf4-2cf4-4710-80d6-14c32009be77","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":196,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"7a717b2c-4649-4dc1-8b6d-828e4549de00","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":196,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"990c0a53-8a91-495f-88f6-b699a73bffab","block_type":"box","text":"relevant active equity investors.","page_number":196,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"c05c0e8b-3957-433f-b8b1-bcc8e8266550","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":196,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"0de28c99-2620-44c7-9dab-a0d5d1ceba74","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":196,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"05058e32-5c10-4afd-898a-501c0b85ae45","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and par ticipates in industry discussions to","page_number":196,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"4e054425-c06f-4f47-a52c-37b4a528b5c7","block_type":"box","text":"contribute to and keep abreast of impor tant developments in the corporate governance field. BAIS may use third","page_number":196,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"772336a7-e7a9-4821-a4bc-2d682dde4a47","block_type":"box","text":"par ties for cer tain of the foregoing activities and per forms oversight of those third par ties (see “Use and oversight of","page_number":196,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"be379bbe-4d3a-458c-b418-01d712b6aaa2","block_type":"box","text":"third-par ty vote services providers” below).","page_number":196,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"63b03f10-6891-48c9-8c55-d170290d1f2d","block_type":"box","text":"Voting guidelines and vote execution","page_number":196,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"7a670ea4-ee57-42fb-a46c-15bddeee5fd7","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":196,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"498fd7ec-2788-4418-b02b-d5b0e19f9d57","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":196,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"208ca115-c887-45e8-b171-9e340d39cbb8","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":196,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"a3e91545-7ed0-4cd9-8fa3-28208d7d2188","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":196,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"cdfdf066-9758-49c6-b8fa-6984dc791926","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":196,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"390448cf-0ad6-407c-812f-9bd2e9ab1f02","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":196,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"78eea4a4-0b0f-4f26-ae02-8408feaf8f77","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":196,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"5945caa0-f112-47e1-8cdc-915ca04097fb","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":196,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"db4067ba-fbee-4857-b981-582d40e1f376","block_type":"box","text":"although por tfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":196,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"e9a5f616-e31e-4acf-b7c0-10228b0dddfd","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":196,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"28d2fa68-2ea7-4cdc-abcd-757e1c032306","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":196,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"9912abab-e98e-4cb2-89cd-a88b5c7d9944","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":196,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"29b92eb5-454a-4a00-81b4-c8641c2b40f7","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":196,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"44912b2d-9711-4620-990d-328cc33a6e45","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":196,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"d71c891a-32b7-42c2-87be-042da917edba","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":196,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"0a935082-700d-4a34-bae9-1a94387aa51d","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":196,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"55c21a5a-a9bc-4f4c-a13a-55744901949b","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":196,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"f82a42b1-ee42-48cd-b5d3-7cd810ff6158","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":196,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"4b7bd8ec-c865-4834-b27e-63b5ba166fd6","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":196,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"886fd002-5484-4192-9527-244d8b990b6f","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":196,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"0eede6dd-5ce1-4443-a052-a63c958251c1","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":196,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"daabe09b-66ba-441e-980a-b7efda6f5e0c","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":196,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"05510943-b675-4d39-bf11-2c57302e63e3","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":196,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"dbc363e2-af4c-49a0-856a-f45840d1a5e7","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to the","page_number":196,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"03e7ddc1-a4cf-45c4-906f-5476c1ac5da2","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":196,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"1a833950-bab3-434f-8526-5242e890f30c","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-effor ts” basis. In addition, BAIS may determine that it is","page_number":196,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"530d30d1-1407-4769-959b-4e18a1d16055","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":196,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"2ac62376-7794-4412-ad56-9af71066574e","block_type":"box","text":"(including but not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising","page_number":196,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"ecb3b01e-105b-44e9-ab55-6fddbbb06f82","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":196,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"10e79f7a-66e6-4c4f-9b1f-71fff3df82fb","block_type":"box","text":"Voting Choice","page_number":196,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"fdcbe31c-4782-44cd-a886-a8f48fb645ea","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":196,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"1078b61c-b924-44b7-8a18-2e43e83107fe","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":196,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"c6adec29-dbff-47f2-a4a3-a94d838e8eaa","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b4e0b5c9-0b1d-471c-a84d-00e5314c5bf6","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":196,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"8ebee5e0-18dc-43aa-9ba3-6266a2d3e9f8","block_type":"box","text":"NM0926U-5977728-196/232","page_number":196,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"716d0ad1-196b-4a89-b2e1-380109a5709e","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in cer tain institutional pooled funds in the U.S.,","page_number":197,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"b02c6bbd-523d-4726-926b-b3c173cdeecc","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":197,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"1095e89c-3ddb-45d8-89bf-f94518e656dc","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":197,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"1978d80c-b950-44b6-a6ea-144b5b2bd8b1","block_type":"box","text":"strategies.","page_number":197,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"ce70e7bd-c3a4-4f85-ad84-710836d79bd0","block_type":"box","text":"12","page_number":197,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"038e6321-a9a3-4d4d-a33d-dd6c29b16b92","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":197,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"2553867c-9641-47ce-bff3-d9b995b6f61b","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":197,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"ff838039-d094-46d7-88e3-e736f9a79adf","block_type":"box","text":"with a third-par ty policy, or have elected to vote shares in accordance with their own policy. Our clients have greater","page_number":197,"box":{"x":68,"y":138,"width":823,"height":11}},{"id":"d48feb16-6e52-400a-bff9-81203c1ee2c9","block_type":"box","text":"control over proxy voting because of Voting Choice.","page_number":197,"box":{"x":69,"y":152,"width":360,"height":12}},{"id":"15e4680d-e541-4781-b602-d2330e389dba","block_type":"box","text":"13","page_number":197,"box":{"x":431,"y":153,"width":9,"height":4}},{"id":"a6ee8109-373e-4429-b502-ee16c33535c6","block_type":"box","text":"Use and oversight of third-party vote services providers","page_number":197,"box":{"x":69,"y":175,"width":403,"height":11}},{"id":"c53a9f55-9f93-406b-9819-243853cd9195","block_type":"box","text":"Third-par ty vote services providers – or proxy research firms – provide research and recommendations on proxy","page_number":197,"box":{"x":101,"y":193,"width":794,"height":12}},{"id":"4c2d0f2a-6cbb-4374-a48e-d3515306ad21","block_type":"box","text":"votes, as well as voting infrastructure. BlackRock contracts primarily with the vote services provider ISS and","page_number":197,"box":{"x":68,"y":208,"width":770,"height":12}},{"id":"a6328679-feac-4dc2-9182-fd6d393d0d94","block_type":"box","text":"leverages its online platform to supply research and suppor t voting, record keeping, and repor ting processes. We","page_number":197,"box":{"x":70,"y":223,"width":807,"height":12}},{"id":"97f467d8-64ff-42a6-ae86-4c269e509fe6","block_type":"box","text":"also use Glass Lewis’ research and analysis as an input into our voting process. It is impor tant to note that, although","page_number":197,"box":{"x":69,"y":238,"width":839,"height":11}},{"id":"7ef1ef03-7c30-48fc-9dff-d077a0a2f7f6","block_type":"box","text":"proxy research firms provide impor tant data and analysis, BAIS does not rely solely on their information or follow their","page_number":197,"box":{"x":70,"y":253,"width":839,"height":11}},{"id":"237ac723-dced-49b2-9e41-f053be82025b","block_type":"box","text":"voting recommendations. A company’s disclosures, our engagements and voting, investment colleagues’ insights and","page_number":197,"box":{"x":68,"y":268,"width":840,"height":11}},{"id":"0f12f312-6494-41a3-b1f6-fa93f10460d4","block_type":"box","text":"our Guidelines are impor tant inputs into our voting decisions on behalf of clients.","page_number":197,"box":{"x":69,"y":283,"width":578,"height":11}},{"id":"9d31195d-0d2a-4fc9-b5b8-bb8f287227e0","block_type":"box","text":"Given the large universe of actively held companies, BAIS employs the proxy services provider to streamline the","page_number":197,"box":{"x":102,"y":301,"width":795,"height":12}},{"id":"b77161f0-3214-4763-806c-66314eb2a072","block_type":"box","text":"voting process by making voting recommendations based on BAIS’ Guidelines when the items on a shareholder","page_number":197,"box":{"x":68,"y":316,"width":795,"height":12}},{"id":"34913fe2-2d33-4141-93c6-01ec3ab6fe02","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":197,"box":{"x":69,"y":331,"width":799,"height":11}},{"id":"385f8d05-55a7-4cdf-bbb3-f4015df5452a","block_type":"box","text":"necessary to the relevant por tfolio managers and vote. BAIS reviews and can override the recommendations of the","page_number":197,"box":{"x":69,"y":346,"width":819,"height":11}},{"id":"fa0cb64b-99d8-4fe6-87e4-48fb33c67563","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":197,"box":{"x":68,"y":361,"width":785,"height":11}},{"id":"449128c8-d0b7-46c5-a046-50fc688829ea","block_type":"box","text":"monitor securities filings, research repor ts, company announcements, and direct communications from companies to","page_number":197,"box":{"x":69,"y":376,"width":837,"height":11}},{"id":"5cc9b397-badb-4573-95e2-9e047ce54a37","block_type":"box","text":"ensure awareness of supplemental disclosures and proxy materials that may require a modification of votes.","page_number":197,"box":{"x":69,"y":390,"width":775,"height":12}},{"id":"e65aeb9c-2bc9-4fa4-b90c-a09ffe81edda","block_type":"box","text":"BAIS closely monitors the third-par ty vote services providers we contract with to ensure that they are meeting our","page_number":197,"box":{"x":102,"y":409,"width":807,"height":11}},{"id":"3d23d4c5-e5f8-4317-90d6-99e9139616c3","block_type":"box","text":"service level expectations and have effective policies and procedures in place to manage potential conflicts of","page_number":197,"box":{"x":69,"y":424,"width":788,"height":11}},{"id":"0a87601c-735c-443f-a73c-d95e5c30e33c","block_type":"box","text":"interest. Our oversight of service providers includes regular meetings with client service teams, systematic","page_number":197,"box":{"x":70,"y":439,"width":760,"height":11}},{"id":"57152abf-67a6-4fae-904a-3251a9b11449","block_type":"box","text":"monitoring of vendor operations, as well as annual due diligence meetings in accordance with BlackRock’s firmwide","page_number":197,"box":{"x":69,"y":454,"width":824,"height":11}},{"id":"7ae3c46a-e452-4758-a70b-80e96d4ae64e","block_type":"box","text":"policies.","page_number":197,"box":{"x":70,"y":469,"width":56,"height":11}},{"id":"631a39a6-2ef9-4e86-8281-e895339389e8","block_type":"box","text":"Conflicts management policies and procedures","page_number":197,"box":{"x":69,"y":491,"width":342,"height":11}},{"id":"d5e3a2ac-587f-4277-9347-79e31e07fb67","block_type":"box","text":"BlackRock maintains policies and procedures that seek to prevent undue influence on BAIS’ proxy voting 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Trustees/Directors (“Directors”) of cer tain open-end funds (the “Funds”) advised by","page_number":200,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"1a449d6c-c79a-4ea5-bcfa-4ad31aff574e","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":200,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"ea265389-e8bd-4511-9b68-d24dc2fb2535","block_type":"box","text":"voting proxies relating to por tfolio securities of the Funds, and have determined that it is in the best interests of","page_number":200,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"99ba978b-f478-4092-a5a4-8a0f68625656","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":200,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"fc831f1e-ba0d-4533-8adf-6d81d2284868","block_type":"box","text":"principles outlined in this Policy, as par t of BlackRock’s authority to manage, acquire and dispose of account","page_number":200,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"f45001b8-4ec3-450b-a514-d75725188e28","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":200,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"b7fe4213-287c-4cdd-9a0b-120322cd86cd","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":200,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"b63e1748-9164-45b8-bef6-7a3cb91b8b32","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":200,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"e11cd4d6-26e7-4922-9567-5c233773ae12","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":200,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"e3bed2c4-3dcf-40fb-9404-280902bc2fd2","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":200,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"a6d66ec9-a000-4a55-ba16-47ff5faeae11","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":200,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"90323669-4d1e-4eab-8ee8-47ca6067e371","block_type":"box","text":"Appendix A.","page_number":200,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"ca4d6b31-cda2-43a1-ad86-35c655cc8bdd","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":200,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"90321580-26bb-4cff-b0e3-07f0e978bbea","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":200,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"e8dfb1f5-b5f4-4802-95cb-3bf5ab00abe6","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":200,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"f687dcb2-550f-4258-92ab-7c3f5c19b2c6","block_type":"box","text":"Conflicts Management","page_number":200,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"5990eb0c-4152-445e-91fe-a31760f3d29b","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":200,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"a4a613e0-4520-4e22-b17d-e2ed4ca1ca8d","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":200,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"ec60a7e4-005e-4696-89cd-d83e18fb37f9","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":200,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"9225b135-11d8-4995-8d17-c38a9d7adbc0","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":200,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"9d9c0c4b-041f-4884-8d3f-4b9d57fd42a4","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":200,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"75a993e0-3859-4148-9b6b-8fcb4458d1a1","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":200,"box":{"x":101,"y":643,"width":800,"height":12}},{"id":"91387f57-e05c-4e4b-9289-2c12e7328789","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":200,"box":{"x":102,"y":658,"width":235,"height":9}},{"id":"551140fb-16fa-4e7d-92a8-11301e771eb8","block_type":"box","text":"In cer tain instances, BIS will engage an independent third-par ty voting service provider to make proxy voting","page_number":200,"box":{"x":135,"y":677,"width":769,"height":11}},{"id":"b4c5624f-4081-428b-bbb1-69bd1d0e1b43","block_type":"box","text":"recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":200,"box":{"x":102,"y":692,"width":800,"height":11}},{"id":"bea437d7-4fc8-412f-8722-f4f11da27b8e","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":200,"box":{"x":102,"y":707,"width":463,"height":11}},{"id":"3ae6166b-f700-4be1-9c09-e8b4732bf19a","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":200,"box":{"x":134,"y":725,"width":774,"height":11}},{"id":"ceb8e0f4-f6f1-4157-9020-b4708bfc3bc4","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":200,"box":{"x":102,"y":740,"width":791,"height":11}},{"id":"094d851c-4df3-43fd-b3f2-1ac8bcb88e08","block_type":"box","text":"in clients’ financial interests. The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":200,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"0b6ba1fc-8634-41a7-a928-6823043c5c55","block_type":"box","text":"connection with proxy voting.","page_number":200,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"0daf3904-330a-4062-9331-529369fad7d5","block_type":"box","text":"Reports to the Board","page_number":200,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"1bcb4e7a-622a-40c5-acc4-9d0a1ce633d8","block_type":"box","text":"BlackRock will repor t on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":200,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"a31e2b76-3f81-4e84-ab21-87251f4e9d23","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":200,"box":{"x":102,"y":822,"width":794,"height":11}},{"id":"1c155c34-4ccf-4aaf-ac7b-aeb08018403b","block_type":"box","text":"were in accordance with the Guidelines and the BlackRock Climate and Decarbonization Stewardship Guidelines,","page_number":200,"box":{"x":101,"y":837,"width":802,"height":11}},{"id":"c9658976-8ffc-4beb-aa9f-229603503d52","block_type":"box","text":"as applicable (2) any material changes to the Guidelines and the BlackRock Climate and Decarbonization","page_number":200,"box":{"x":102,"y":852,"width":747,"height":11}},{"id":"258527bb-d86c-4230-ac0e-a70a96d44c81","block_type":"box","text":"Stewardship Guidelines, including material changes to conflicts management practices, that have not previously","page_number":200,"box":{"x":102,"y":866,"width":798,"height":12}},{"id":"b731fa9d-1e67-4098-bb89-a4fdce56145d","block_type":"box","text":"been repor 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Through stewardship, we assess how companies are creating long-term financial","page_number":204,"box":{"x":70,"y":639,"width":831,"height":12}},{"id":"09d8b2df-21ab-44db-8ea2-69d4535913d6","block_type":"box","text":"value to serve our clients, many of whom are saving for long-term goals, such as retirement. 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Engagements provide companies with the","page_number":204,"box":{"x":69,"y":753,"width":829,"height":11}},{"id":"ce5ecf8b-6de6-45c2-9e02-482bac066132","block_type":"box","text":"oppor tunity to share their perspectives on topics that, in BIS’ experience, impact the long-term financial returns","page_number":204,"box":{"x":69,"y":768,"width":795,"height":11}},{"id":"a4c2cba3-ada6-4713-90eb-26207d9f27af","block_type":"box","text":"BlackRock’s clients depend on to meet their financial goals.","page_number":204,"box":{"x":70,"y":783,"width":425,"height":11}},{"id":"9cc2e90f-817f-406d-a2f0-88ea2063a456","block_type":"box","text":"1","page_number":204,"box":{"x":69,"y":813,"width":4,"height":4}},{"id":"978d7a99-f924-4a90-9e99-7beb864b50b2","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":204,"box":{"x":79,"y":812,"width":790,"height":11}},{"id":"12eb7baa-56b2-401d-9d4a-3f786193a99d","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":204,"box":{"x":69,"y":827,"width":836,"height":12}},{"id":"7eafe44e-868d-4e89-b5fb-f909253629c4","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":204,"box":{"x":68,"y":842,"width":805,"height":12}},{"id":"da7c3752-18b6-4b97-b7fe-de1a3146ac7c","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":204,"box":{"x":69,"y":857,"width":405,"height":12}},{"id":"1c6469d4-2b87-4b5c-ad26-53167228b887","block_type":"box","text":"2","page_number":204,"box":{"x":69,"y":876,"width":4,"height":4}},{"id":"0b4ad822-bd10-4794-a751-d349c4bf293b","block_type":"box","text":"Alongside the Global Principles and regional voting guidelines, BIS publishes Engagement Priorities which reflect the","page_number":204,"box":{"x":78,"y":875,"width":827,"height":11}},{"id":"021ea45d-1e9e-4e39-a777-9a3329155760","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":204,"box":{"x":68,"y":890,"width":818,"height":12}},{"id":"5df6c3bf-e947-4ab6-8fef-c9a9c8d6874b","block_type":"box","text":"material business risk or oppor tunity.","page_number":204,"box":{"x":69,"y":906,"width":264,"height":11}},{"id":"dcbbb9cf-961b-437a-af38-4ccca0f5ca9c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"feb1cac0-608f-451c-a164-bada0071bcca","block_type":"box","text":"Global Principles | 3","page_number":204,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"c7aa8606-abda-443f-aa8a-88804b239950","block_type":"box","text":"NM0926U-5977728-204/232","page_number":204,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"28f1306e-717b-4a85-a8df-4e85f888b050","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":205,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"0395f195-8120-4cc1-87bc-d0549ad69f96","block_type":"box","text":"governance. As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":205,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"267f1f15-bd5b-4fe8-988c-b91f2631d669","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":205,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"44fffb7b-bad4-4401-af33-f055c5f4af4b","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":205,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"70248a8f-0059-404b-bd27-fff7d7c3c8d9","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":205,"box":{"x":67,"y":105,"width":816,"height":11}},{"id":"59222015-a426-4995-832c-fa72ba745740","block_type":"box","text":"factors, including in-depth analysis of company disclosures, comparisons against industry peers, third-par ty research,","page_number":205,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"895115d8-bcd3-460a-a15c-a3fd42fa304d","block_type":"box","text":"and, where appropriate, engagement with companies.","page_number":205,"box":{"x":69,"y":136,"width":381,"height":11}},{"id":"d67c5312-933b-4214-b603-0e58997a90bd","block_type":"box","text":"Generally, BIS suppor ts the vote recommendations of the board of directors and management at companies","page_number":205,"box":{"x":102,"y":158,"width":770,"height":11}},{"id":"e939e059-f350-4882-9461-17526795935d","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":205,"box":{"x":68,"y":173,"width":838,"height":11}},{"id":"5638b04e-9dcd-47b8-8b8a-988c9c998573","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":205,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"344287fe-c885-4d6d-925a-cf509f6f575e","block_type":"box","text":"suppor t the election of directors or other management proposals, or we might not suppor t management’s voting","page_number":205,"box":{"x":69,"y":203,"width":802,"height":12}},{"id":"227706f7-a7ff-49ef-aeda-c40f9c9a89df","block_type":"box","text":"recommendation on a shareholder proposal.","page_number":205,"box":{"x":69,"y":219,"width":315,"height":10}},{"id":"3f33f80f-8966-447e-991b-d2003bbb5fba","block_type":"box","text":"SHAREHOLDER RIGHTS","page_number":205,"box":{"x":403,"y":249,"width":172,"height":9}},{"id":"4a4cbea8-684a-4526-b095-212b61f69546","block_type":"box","text":"BlackRock’s global approach as a shareholder on behalf of our clients is underpinned by cer tain rights attached","page_number":205,"box":{"x":102,"y":271,"width":796,"height":12}},{"id":"19aac3eb-277c-47d0-afa3-ec286fbb0bc5","block_type":"box","text":"to shareholding in most markets, as established by corporate laws, regulations, and listing rules.","page_number":205,"box":{"x":68,"y":287,"width":693,"height":11}},{"id":"d2f9fdad-be3e-45f5-876f-fb1e92da9273","block_type":"box","text":"3","page_number":205,"box":{"x":763,"y":287,"width":4,"height":4}},{"id":"cb786795-f04f-4428-ba88-73af972ba0f2","block_type":"box","text":"For example, in","page_number":205,"box":{"x":774,"y":287,"width":106,"height":10}},{"id":"429270fa-8005-423e-b236-8256475a1ae8","block_type":"box","text":"most markets, shareholders have the right to:","page_number":205,"box":{"x":69,"y":302,"width":326,"height":11}},{"id":"141b2c7f-26a2-4e1d-a504-61cf18c8bfad","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":325,"width":6,"height":4}},{"id":"c605cf91-22c2-452e-8192-e4a55db99db0","block_type":"box","text":"Vote to elect, remove, and nominate directors, approve the appointment of the auditor, and amend the corporate","page_number":205,"box":{"x":101,"y":322,"width":804,"height":11}},{"id":"c071ad4d-dd69-45bc-b8d3-7933cb1c9833","block_type":"box","text":"char ter or bylaws.","page_number":205,"box":{"x":101,"y":337,"width":126,"height":11}},{"id":"70db9566-455c-4c0f-af75-fe0e3d74abf7","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"7676d269-9d58-4fca-a0a5-dbf463f002a3","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":205,"box":{"x":101,"y":357,"width":789,"height":11}},{"id":"ca7bd757-6c1f-49aa-9c11-d5821444e59e","block_type":"box","text":"changes to the purpose of the business, dilution levels, and pre-emptive rights.","page_number":205,"box":{"x":101,"y":372,"width":564,"height":11}},{"id":"49725683-57d8-4425-9d28-813515b7dd33","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":395,"width":6,"height":5}},{"id":"22376415-4e98-4541-a48e-747c092e1569","block_type":"box","text":"Access sufficient and timely information on governance, strategic, and business matters — where such matters","page_number":205,"box":{"x":101,"y":392,"width":799,"height":12}},{"id":"c5297c4c-3540-4b09-917f-b85c48148608","block_type":"box","text":"are material — to make informed decisions.","page_number":205,"box":{"x":102,"y":407,"width":313,"height":9}},{"id":"1544a7bc-f68c-4c7f-89fa-6d041df5ec7d","block_type":"box","text":"KEY GOVERNANCE TOPICS","page_number":205,"box":{"x":391,"y":438,"width":196,"height":9}},{"id":"49c95148-3bd7-41b6-836b-d8da0d873d33","block_type":"box","text":"In our experience, there are cer tain globally applicable elements of corporate governance that contribute to a","page_number":205,"box":{"x":102,"y":460,"width":776,"height":12}},{"id":"f518da2e-c912-4b31-931b-bc30615a97a2","block_type":"box","text":"company’s ability to create long-term financial value for shareholders. These are topics that shareholders may have","page_number":205,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"af382dec-e073-4bb0-bd01-8398b9632e47","block_type":"box","text":"the ability to vote on at shareholder meetings. These areas include:","page_number":205,"box":{"x":68,"y":491,"width":482,"height":11}},{"id":"1c11df40-fcfc-4e4e-ac67-0d2aea336944","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":514,"width":6,"height":4}},{"id":"3459ddbd-4469-4f81-8bcc-779eb87b84f1","block_type":"box","text":"Boards and directors","page_number":205,"box":{"x":102,"y":511,"width":147,"height":9}},{"id":"2e8e841c-3ab9-4a20-9413-4ce796a30057","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":534,"width":6,"height":4}},{"id":"edb734e5-7567-4094-8462-323f107f9b63","block_type":"box","text":"Auditors and audit-related issues","page_number":205,"box":{"x":101,"y":531,"width":234,"height":9}},{"id":"f5f861a8-7606-4c68-9511-939b87cac1b8","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":554,"width":6,"height":5}},{"id":"2f92bd6c-c7d3-4437-b16e-fe6385aa8441","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":205,"box":{"x":102,"y":551,"width":583,"height":11}},{"id":"5b6b7603-b649-4447-b1ae-bb8d800cc212","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":574,"width":6,"height":5}},{"id":"6ca58615-66c7-4dc2-a446-74096607ec89","block_type":"box","text":"Executive compensation","page_number":205,"box":{"x":102,"y":571,"width":170,"height":11}},{"id":"aa94cfa5-8d47-4ecb-9acc-32ec9e4a9e1d","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":594,"width":6,"height":5}},{"id":"c8c9ed6b-7707-4452-b9f3-37c4c534064b","block_type":"box","text":"Shareholder protections and other significant corporate governance matters","page_number":205,"box":{"x":102,"y":591,"width":539,"height":12}},{"id":"bb8114dc-38e5-486a-83d0-a6891cb0c1ab","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":614,"width":6,"height":5}},{"id":"d6e5b0dd-f21f-46ef-93d4-91c777c9cd92","block_type":"box","text":"Shareholder proposals","page_number":205,"box":{"x":102,"y":612,"width":160,"height":11}},{"id":"d8e60582-562a-4447-b692-5e91c7150458","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking into","page_number":205,"box":{"x":101,"y":634,"width":740,"height":12}},{"id":"749c5c8c-1cc0-47dc-a9eb-55b160788626","block_type":"box","text":"consideration a number of company-specific factors, including the sector, market, and business environment within","page_number":205,"box":{"x":69,"y":649,"width":819,"height":12}},{"id":"2c426a4e-5f36-4fe2-b64e-6e02826d7960","block_type":"box","text":"which companies operate.","page_number":205,"box":{"x":68,"y":665,"width":186,"height":10}},{"id":"c0a72efa-c92c-46f0-827c-b04a9e41f672","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance standards","page_number":205,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"ffc5ab64-7fdc-4ee7-bf9a-2d2f0bc0f76c","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":205,"box":{"x":70,"y":702,"width":785,"height":11}},{"id":"7ceac6e1-b411-4b74-993c-4e50e0fa3cdd","block_type":"box","text":"suppor ts durable, long-term financial value creation. Our regional voting guidelines explain how the BIS Global","page_number":205,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"7c4e87d9-d808-44ea-aaf6-b003bebc1219","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":205,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"2e7bebdd-9590-4784-91cb-374d9ae73ee5","block_type":"box","text":"4","page_number":205,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"3c941338-2fd5-4574-94d4-52680b2184ce","block_type":"box","text":"3","page_number":205,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"f5243284-1b73-421e-b9f7-46e33464860d","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":205,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"918c73b2-c318-4252-90a6-0f6181704390","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":205,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"89a5fd29-2cc7-4faf-8cde-8fbc6642c53d","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":205,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"131e9cd1-212e-4b08-ba3a-1793f1c8fabb","block_type":"box","text":"4","page_number":205,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"39ff42ab-1307-4bcc-979f-977b924fb0dc","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":205,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"c27391f3-1c59-4c37-b0d3-2ad40e1665a9","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":205,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"e16e3398-2710-4230-bf2b-d15b72d85b90","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":205,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"d70f885c-a105-406b-9112-6b182bac63c6","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":205,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"dee6d592-55ba-4e4f-bca3-ea0074c64d9b","block_type":"box","text":"guidelines.","page_number":205,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"dee7ba94-c2c4-4e94-a11c-d8e6ac47b58f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"9d7c8634-b2ed-4ade-a088-976520e3ca58","block_type":"box","text":"Global Principles | 4","page_number":205,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"93d2b05c-630a-4774-aae8-e74ae3d66c53","block_type":"box","text":"NM0926U-5977728-205/232","page_number":205,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3682f28a-9f9f-4258-8aa5-d02c03ae6c55","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":206,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"c8c05f59-d38a-488f-af5f-95314ba5a1cb","block_type":"box","text":"Oversight role of the board","page_number":206,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"99a68582-1a42-47b0-9039-98a0dd27e1fc","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":206,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"f6f0dfcc-ef4e-415b-aea0-ba278c9673f3","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":206,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"a07862c1-6957-4c31-a85a-8c6a5529677a","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":206,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"bdf68cec-fd19-48a7-b241-0855e8621e1c","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most impor tant management decisions that suppor t","page_number":206,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"871d9571-2ef0-4008-81c1-c3ba4e7eded7","block_type":"box","text":"long-term financial per formance.","page_number":206,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"4245cbab-0781-4bab-80dc-7c175f3bc817","block_type":"box","text":"For this reason, our investment stewardship effor ts focus on the effectiveness of the board of directors. We","page_number":206,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"3544da04-30fd-43a5-9b69-cd7311f1f540","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":206,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"1f2c35dd-960c-487b-861d-cbc9e98c4b94","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":206,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"9ff2dae1-c300-4399-9cc1-098e78597dc3","block_type":"box","text":"the business environment in which a company is operating.","page_number":206,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"8cfe9d9d-4af1-40ce-ba13-1b0c7f833920","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":206,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"ffe48729-7f81-4d0f-9960-d5e1042a55eb","block_type":"box","text":"governance mechanisms that suppor ts its oversight of the company’s strategy and operations, consistent with the","page_number":206,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"aab794aa-04fe-4189-af08-0468bd469738","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":206,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"fb330854-cd2d-4e6a-9bb9-7384276c8df6","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":206,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"09d3f06e-ddae-49a3-ae60-7dbb0d0babf9","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":206,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"d166a332-3689-4fe7-8812-a33539c0577d","block_type":"box","text":"mitigating such risks.","page_number":206,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"86fdf49d-0fb6-4658-bdff-4125d15af284","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":206,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"5fb188f9-48d4-48b6-b6db-78dba6959283","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":206,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"bb99c365-a275-4afe-ba32-ff1e30c9ca55","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":206,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"0ac64fc8-59ee-4880-ac59-6041096fd879","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to ar ticulate the effectiveness of these","page_number":206,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"66b8da17-f121-4329-bc93-ba0278df066c","block_type":"box","text":"mechanisms in overseeing the management of business risks and oppor tunities and the fulfillment of the company’s","page_number":206,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"aa29e0de-57f0-4e27-b09f-0e50914e9e47","block_type":"box","text":"strategy.","page_number":206,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"c1505074-c361-4b59-a8b0-00a749ce94a4","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":206,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"7e27b9d8-3e45-4149-b746-dc65634b4c40","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not suppor ting the election of directors who, in our","page_number":206,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"6515a4f0-43d2-47f1-8ee3-b8a7aa704e05","block_type":"box","text":"assessment, have par ticular responsibility for the issues.","page_number":206,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"3db58b9b-4e4d-47d1-bec0-e7bfedce06c4","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":206,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"0570d726-8494-4791-aa3c-46f81be02ecf","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":206,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"2aa9cdaa-41f5-4b38-915d-ebf295d6b628","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":206,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"1aa91227-2172-43ee-bf91-c1b5270a45a7","block_type":"box","text":"per formance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":206,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"d45d1922-3356-4bc8-8fbb-1eb7462f9ffc","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":206,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"e3f1a306-4826-4c8a-a5b8-599194a9d226","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":206,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"c6d03e6b-2fc3-4aa8-b1c5-b38a3aaa63ac","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":206,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"dba5e049-2cd6-4485-b893-814d4bcb9446","block_type":"box","text":"Regular accountability through director elections","page_number":206,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"c1b1138c-6191-4416-9a4f-e4a3d4e2e4c1","block_type":"box","text":"The election of directors to the board is a right of shareholders and an impor tant signal of suppor t for, or","page_number":206,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"30e700a5-f1e9-4276-b62a-9d010168dd42","block_type":"box","text":"concern about, the per formance of the board in overseeing and advising management. To ensure accountability for","page_number":206,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"f4dd0be0-6025-4bcb-95ca-19262f82f08b","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":206,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"8c30147f-5e93-4035-b4a1-498304e5749c","block_type":"box","text":"5","page_number":206,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"c5e75162-dea8-470a-b3a5-9e8b35ef0998","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their suppor t for, or concerns about, board members’","page_number":206,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"9fee8f28-1d5a-4890-b3cc-3154e0363b44","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":206,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"c2ac62cb-7fe3-4a85-aa7b-3a0b4dc95394","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":206,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"353cdec6-5e4b-4cef-a904-2f6e5db78066","block_type":"box","text":"with a propor tion of directors being put forward for election at each shareholder meeting.","page_number":206,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"86f5f22b-7b8a-4fca-82b4-5a74f2a6cdb2","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":206,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"22b34ebb-2fc4-47d4-ad02-c5933a484c58","block_type":"box","text":"Regular director elections also give boards the oppor tunity to adjust their composition in an orderly way to reflect","page_number":206,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"4d4feba5-d080-4789-8e72-2cd677e349b8","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":206,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"f3c7878e-787c-4051-a44c-555662ee1bc7","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while suppor ting both continuity and","page_number":206,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"76f67a38-98ef-4aa9-8b04-8525c94f9419","block_type":"box","text":"5","page_number":206,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"243a812d-284c-4cc3-bdf8-fb34e8f87fae","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":206,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"cc9f6195-1074-4dd6-b62e-6cf7140beb2a","block_type":"box","text":"market regulation or voluntary best practice.","page_number":206,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"16c3e292-4daf-46cd-b30c-711b66ba9303","block_type":"box","text":"BlackRock Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"72327dad-01c3-4afe-aa76-951994e366c4","block_type":"box","text":"Global Principles | 5","page_number":206,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"d673f161-4d88-46a2-a138-3a19b88f4601","block_type":"box","text":"NM0926U-5977728-206/232","page_number":206,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d1dcd87c-62c8-4605-b251-ed4d1b6a461c","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":207,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"5b52b7f2-912a-48c1-889d-faf64098fbb3","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":207,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"63ce45a0-d196-436f-af43-13c24434fd36","block_type":"box","text":"recently.","page_number":207,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"b57c627f-5499-45a2-9dd6-7f4899f024f8","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":207,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"870969dd-7e08-4774-8fc9-6510c12d1b6d","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":207,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"f55d108f-b2bd-464c-b41e-2a69607c8981","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":207,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"52a25c33-787e-4c59-8e04-15e4340adb2e","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":207,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"edbc9ae0-2b95-4aa6-87ae-37fd767f0b04","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":207,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"f04dcba7-2ac8-46ca-96cc-b4570d36654c","block_type":"box","text":"Director independence","page_number":207,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"14033e39-8326-45dd-bcaa-c5aaf51ce5e2","block_type":"box","text":"Director independence — from management, significant shareholders, or other related par ties — is a central","page_number":207,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"48f03231-38d6-40ba-8d66-230bf15c99df","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":207,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"f3308529-0ac4-4547-883a-e920d236d68a","block_type":"box","text":"6","page_number":207,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"ecbc2ccd-a38a-46e4-a543-bb82020748ba","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":207,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"dba676c3-5ce4-4460-9104-5967dbcbf206","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":207,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"287b6193-9bda-42a2-bd13-f16433a77fdc","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":207,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"4f6fb357-3b28-4718-bfbc-889cf0c10a2b","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":207,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"fb89bea4-b404-4f83-ae1f-4c54aa4b4db9","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":207,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"2b801445-91c9-4399-bbec-bdc14d82a5c5","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"34a7917c-62e6-4ed8-b29b-afdcaa5edf72","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":207,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"17c3198a-7c41-46db-89eb-f403d99cd838","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"ea8ad148-9c5c-4271-9461-f8152784819b","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":207,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"3ae9f146-ce9b-4647-9965-ab02e670cd96","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"448cdbd3-fff7-4072-87a0-1e80049b751a","block_type":"box","text":"Interlocking directorates","page_number":207,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"308c26a3-0187-4c5e-a0d2-cba93304eb09","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"6be3faf5-ec67-49df-b473-d90095150fc9","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":207,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"a88a7810-8f7d-4f02-a0d0-475c0766f8ed","block_type":"box","text":"materially inter fere with a director’s ability to act in the best interests of the company and shareholders","page_number":207,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"30886668-8e98-49a5-b777-d172fae3cdb0","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":207,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"85483cb5-867c-4ab8-abd1-87ad2ef5c7a8","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":207,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"7657f363-58c6-4f25-a7a0-f6f525aaa643","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to suppor t independent board","page_number":207,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"f3fa6cb6-9dbc-4f09-9f4a-e6ae9f08ae8a","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":207,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"b943a89d-8974-4731-a97a-1bc1f1ad2388","block_type":"box","text":"is provided to the board, and encouraging independent director par ticipation in board deliberations. We appreciate","page_number":207,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"a2675624-75f3-48a5-af46-23de4fdb939c","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":207,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"45b25ccd-595c-4290-939b-dc27061e8902","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":207,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"69db222e-bd2e-41e7-aa51-581cd42276af","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":207,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"eff82107-5448-4015-bf2b-e251d9dd8069","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":207,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"3199f032-cd78-435c-9c49-1efcdb5c89c0","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":207,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"7ea3e8c8-e1cd-4853-9354-f8dc59d95b7f","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":207,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"b3ef256c-3b52-4051-b7f1-20d8e2c385a3","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":207,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"8fdf24dc-eb3b-4280-9f4f-19f539ca44af","block_type":"box","text":"par ticularly one involving a related par ty, or to investigate a significant adverse event.","page_number":207,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"635e94d5-c0d4-4ad4-b9e0-1484b195d652","block_type":"box","text":"Sufficient capacity","page_number":207,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"b3d16057-4aca-428f-b60f-c8156e7d26c4","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":207,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"8838946a-8ed6-4625-a626-bbfaaf3c68f9","block_type":"box","text":"appropriate amount of time to board and committee matters. It is impor tant that directors have the capacity to meet","page_number":207,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"cd73c816-ee71-415d-bfec-c0a2e88b8827","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":207,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"a53ee21f-bbb1-45f6-b254-cbce64a111bc","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":207,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"ae0122a1-1518-4b7b-962b-11812e0408b4","block_type":"box","text":"Board composition","page_number":207,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"7f8d8b40-b467-4509-a85f-0015283bd9f0","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":207,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"d0e7adb9-34e0-4c98-b4ba-38c3bb6cebb3","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":207,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"fad3758d-fb8a-4c40-a689-5c3ce8860b40","block_type":"box","text":"companies explain how their approach to board composition suppor ts the company’s governance practices.","page_number":207,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"6ccc0e25-7afc-4646-bddc-9aa0cc6821f9","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":207,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"1e8c1e10-a33f-4c3a-a9e6-fe0ec9128fe2","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":207,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"531b4065-09a8-4815-b98e-9a80ce953730","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and exper tise of the","page_number":207,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"b5242f35-53b9-476c-b924-528f5f97a308","block_type":"box","text":"board, as well as the par ticular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":207,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"52a21778-1d8e-462e-9f09-10601549ca02","block_type":"box","text":"6","page_number":207,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"4588b495-cbc5-4c3d-b2ab-bc8e0f35cad0","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":207,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"89c2095a-aa8e-4f64-bb48-a3c7ecf846ba","block_type":"box","text":"Repor ting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":207,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"0c0e9ace-177f-4bcb-ba33-b84234737c68","block_type":"box","text":"BlackRock Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"1e3e0a50-7b44-4624-ba6a-ae6841b83865","block_type":"box","text":"Global Principles | 6","page_number":207,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"ce121b20-8448-4aae-b27c-757e4c4cfd4b","block_type":"box","text":"NM0926U-5977728-207/232","page_number":207,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"bc3304ef-3556-4239-9a3f-1e8c6ac90578","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":208,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"ba1f0308-1441-4acf-b858-f2330fd5a6ac","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":208,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"7de88967-5e44-4cc5-ac89-fe2c8398b258","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":208,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"21ca86b7-6d06-45b7-a444-5c8df0f123d3","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":208,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"5185f3a3-aba5-4ced-8fba-e14e18be8522","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":208,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"fcb09085-43cc-4508-ab1e-0f973552c81e","block_type":"box","text":"may discuss with companies, par ticularly if there is a risk their board composition may be misaligned.","page_number":208,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"97e9746f-2e17-4a1c-aa49-eaca8f955a2f","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":208,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"f78c58fc-234a-47b3-b7d9-c6557486ce60","block_type":"box","text":"BIS recognizes the critical impor tance of financial statements to provide a complete and accurate por trayal of a","page_number":208,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"6925ccdf-7891-4615-a08a-c11e0244f477","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":208,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"7f7afec0-eb71-4e2d-b784-e68ae414e186","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":208,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"9de01155-1cf9-456c-ac7b-d1937b523909","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":208,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"e67593a3-d858-4245-97ea-923f1bc81371","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an impor tant role in a","page_number":208,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"b5b7d3df-bac1-4600-b001-20163831f750","block_type":"box","text":"company’s financial repor ting system by providing independent oversight of the accounts, material financial, and,","page_number":208,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"7da40a9f-2378-4920-b34f-634238860ac7","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":208,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"716d60f3-e045-408d-8bd5-bcab149ab9fb","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":208,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"442d02b7-076c-4dea-9157-4973228b811e","block_type":"box","text":"systems.","page_number":208,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"c40abd84-4309-43d5-b48c-cb0664cc5c89","block_type":"box","text":"7","page_number":208,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"4fc6ae5f-a0b3-427c-a41f-3e79879d5467","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":208,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"2147b1cf-34e2-40b2-87c9-c5d0d0df169b","block_type":"box","text":"financial statements and provides an impor tant level of reassurance to shareholders.","page_number":208,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"aefcdfc7-9104-4508-9170-4ff491e13f03","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly ar ticulated char ters that set out their","page_number":208,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"85a6c0f3-8dd8-40e0-b520-548c90052cbe","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":208,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"4b6869f3-baea-4f91-ad59-e8bf9a00dd83","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":208,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"6fa8b374-aae3-4d85-99a3-23323c208ac7","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":208,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"e12ebacd-9b6e-4c0e-9c95-199914758bda","block_type":"box","text":"exper tise to monitor and oversee the audit process and related activities.","page_number":208,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"be253ca8-05b0-4589-87b7-c8ac09e85af4","block_type":"box","text":"We take par ticular note of unexplained changes in repor ting methodology, cases involving significant financial","page_number":208,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"cff13b6f-a754-467b-8f5b-d5f29d62e12b","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":208,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"3aeb93f9-541e-4bfd-9b39-9443d70c58d4","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":208,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"1aa101bc-e8b7-4613-b221-42f2c6152e08","block_type":"box","text":"or internal audit function.","page_number":208,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"47355a92-2d99-4fb2-a3c2-9b3a85b55ebe","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":208,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"6da5e58b-79ed-434e-ba33-3e65f8c3dc48","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is impor tant that auditors are,","page_number":208,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"62c6e828-83cc-467b-b5d8-28959cc63cc0","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":208,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"369fdfe9-e062-4c3a-bfab-18434a331efd","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":208,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"3d9c2d46-2a93-4791-bb54-27a41c5be062","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":208,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"8741acf1-fe0c-46e1-bf75-89567b9555ef","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":208,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"89ec1d09-4868-4356-afaa-fc5e23f9b5fe","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":208,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"7a9b369e-2743-4a0b-8e74-de302b724610","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":208,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"37ac0922-e5b1-460d-a33c-600c10b409ba","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":208,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"bf9464e7-9aed-4461-a0b2-04cd44ad6b1d","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":208,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"6dfa3b35-bae8-48c8-9149-8f495cfaf50e","block_type":"box","text":"risk.","page_number":208,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"37216d7b-a58b-4e55-ac84-49435acb17e9","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":208,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"bee6e956-b669-4195-a091-7f33891c5b44","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":208,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"57ef2838-f059-478d-8bb1-3982f12850d5","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":208,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"c858ca4a-3ddf-4ff7-a53f-992ab7d05046","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":208,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"c1a43233-75ae-44de-9c8b-a72161f83114","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":208,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"0a34da4e-745c-42e5-bd76-1082959060d6","block_type":"box","text":"differentiated voting rights. As a result, BIS generally suppor ts bylaw amendments that introduce the adoption of","page_number":208,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"fd7a47f2-2eb0-42ec-b2c9-4acd17f6761f","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":208,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"9d6b1d39-6f1d-4b8c-8b16-962df1740ea1","block_type":"box","text":"7","page_number":208,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"95fc5096-3b8d-417f-ab41-dd5a66e83727","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":208,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"b52522d1-ea11-42d5-8b31-01eaa8338c6e","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":208,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"172cb860-34ad-47c1-a598-4f22b12e4828","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":208,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"b89578b8-71aa-4ecc-8c64-a24dca15121d","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":208,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"de470cdb-5973-4927-a0fb-38262969221d","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":208,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"7ffae4ed-60c6-472a-bfb3-92f6860938bf","block_type":"box","text":"BlackRock Investment Stewardship","page_number":208,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"fe7d5e44-e454-4624-ac98-02b1d8d646ba","block_type":"box","text":"Global Principles | 7","page_number":208,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"c1999d26-e537-4787-bb34-fccf10505d45","block_type":"box","text":"NM0926U-5977728-208/232","page_number":208,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e0cb81e9-ec1e-4ca8-8ff8-33c06c716630","block_type":"box","text":"However, we recognize that in cer tain markets, at least for a period of time, companies may have a valid reason","page_number":209,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"13f22c67-1480-4832-bd75-3bb5162c55f9","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":209,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"67ee3f85-c7b4-4d90-9796-3443ec3ef03d","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":209,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"8a679e95-b37f-472e-8f24-eb9cc5308560","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":209,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"35a2396e-5007-4971-b2a9-e2706af614fc","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the oppor tunity to affirm the current","page_number":209,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"2ad81ba8-bc90-4391-9455-e71b0a194acd","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":209,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"8d6a9f65-2910-47ed-ba66-5bc325cfc28f","block_type":"box","text":"minimizing costs to shareholders.","page_number":209,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"db87e771-b0da-4a41-a072-ea9f04ac3716","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":209,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"45e573fa-d18a-46b2-8036-7140a3547aa6","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":209,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"71f81f1a-5a71-4cde-bf85-7e7d1ec8b360","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous suppor t of the","page_number":209,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"3d179002-1073-4ada-a479-ecdd038d0692","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":209,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"5229f91b-5c66-43b6-9c54-5eb888a641ed","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":209,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"367a5d1e-9e82-425f-be34-90681a1cea98","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":209,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"ac2c7f4d-eac2-43e3-8c2c-7366aceb21cb","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related par ties, the recommendation to","page_number":209,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"f0204d6b-951a-4aa8-9604-c4c8bd477298","block_type":"box","text":"suppor t should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":209,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"fbdbe43c-0b83-447f-ab49-0ad360f6206e","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":209,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"33114502-cefa-4a1c-af4f-76a15f61cf6b","block_type":"box","text":"a separate vote of the non-conflicted par ties.","page_number":209,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"3c93bd2a-6090-4c9f-815f-dc541542ac56","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":209,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"74ce74f9-1dda-43e5-8b07-3b6b38416623","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":209,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"6a5aa3ed-53f2-4171-8bde-38783fd40c31","block_type":"box","text":"ability to sell their shares are contrary to basic proper ty rights. Such mechanisms can serve to protect and entrench","page_number":209,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"e56faeb8-eb66-461a-83b7-946bfedda95d","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":209,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"31dfe8f9-de9e-4ebb-86a2-deeae22dde52","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":209,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"7a31274b-ae7b-446b-ba6c-69c81730d705","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":209,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"1d70ece2-b6f9-4e7e-baee-8a798a97e235","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":209,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"17728bf5-883a-49a3-8a56-a5941c0b2852","block_type":"box","text":"Executive compensation is an impor tant tool used by companies to suppor t long-term financial value creation. A","page_number":209,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"45b3b19d-d967-48e0-b8d2-497a7edc2667","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":209,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"190566df-1a4c-4206-8ac5-c665d16b1177","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":209,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"12ad52a9-e50e-46fd-a9d2-7bbf7c8837cc","block_type":"box","text":"ownership.","page_number":209,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"ac9474ca-93d6-4993-a90a-f103c839f245","block_type":"box","text":"8","page_number":209,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"c6e2b1b5-2f0c-4c06-9831-ddcc34a2ec80","block_type":"box","text":"We look for a clear link between variable pay and operational and financial per formance that suppor t sustained","page_number":209,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"991bb0d9-5234-4d6d-b613-aa450d89fb6a","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when per formance targets incorporate","page_number":209,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"730a9d2c-e987-4a64-ada4-3cd1c4a0a278","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":209,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"5af34d79-548c-4eec-a9b1-d1ec613f786e","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":209,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"ca60b6af-1dff-4741-97a9-3e785278fd59","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":209,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"42cafe77-b82a-4496-9f56-ecebb7e961a7","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":209,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"1e420a0e-d01d-46c3-9fc9-e56884480bf0","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":209,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"b735763a-074c-4545-be33-f465a9c8b0a2","block_type":"box","text":"results over a period of years.","page_number":209,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"3256771a-3df0-4b6e-a315-53995fb8957e","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":209,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"9198c844-155b-4ffa-b2e7-87a5955cca87","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":209,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"f15b12fa-2671-4e82-b784-9468b02823f1","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":209,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"2a58f9a3-a324-44a6-ab93-1b4146ac7897","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":209,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"a6e6be29-e20d-48dd-b6ba-aee365f806dd","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":209,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"dcabb66b-7256-4781-b94e-f7fe5a53130b","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":209,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"3340839b-db6c-497b-9374-59b19c453220","block_type":"box","text":"executive compensation strategies.","page_number":209,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"568c8e7d-08d6-458a-b0d8-b4cc127f9c7b","block_type":"box","text":"We are not suppor tive of one-off or special bonuses unrelated to company or individual per formance. Where","page_number":209,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"71ffdc32-bec5-4f58-b0cd-a29fe3324834","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":209,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"35cffd7f-b9e0-4e5d-8030-4a7b48bd8fae","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":209,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"d9434ab4-657b-43c2-b1a2-11ef8fef4f0c","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":209,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"2b9b33d8-baa2-4abc-ad68-0456b7adf526","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":209,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"bc69886e-c68d-4b8e-8909-414e94d48f5b","block_type":"box","text":"per formance rather than solely base increases in total compensation on peer benchmarking.","page_number":209,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"00ccc4ab-e173-46a4-8cdb-64a9b7ad7cf4","block_type":"box","text":"8","page_number":209,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"22423313-7a49-49fa-a365-1b5531ddb0d7","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":209,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"c66463d1-41b8-47ed-9094-bc7cf426e4ff","block_type":"box","text":"different markets.","page_number":209,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"4c9165bd-f39e-449d-bf71-1f50d0193b4c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":209,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d048e4d6-3508-44b7-a905-5a4373e262a7","block_type":"box","text":"Global Principles | 8","page_number":209,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"bb09ebdb-7bd2-41d0-89a6-af2b647bb34b","block_type":"box","text":"NM0926U-5977728-209/232","page_number":209,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"86a089a4-eb92-4f15-a874-65df1dd91066","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":210,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"f440d6fc-1a7e-40b2-84b2-89995361482a","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":210,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"c1ff647e-9d80-4c4b-9f59-ebc93a342ace","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":210,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"e30176e0-b4bd-4379-90a4-84c83431cd14","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":210,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"779ee3b9-8f66-4a0a-b7b9-2693ad9d8deb","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":210,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"c20ea6fd-e4af-4b71-9f79-5010eaaa0fa0","block_type":"box","text":"effor t expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":210,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"b8ad69a8-c602-427b-a35e-e023eb79402a","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":210,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"b0137021-2b1d-43b3-971f-065b33a2232e","block_type":"box","text":"whom they are charged with overseeing.","page_number":210,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"eaa00984-97b1-4a30-8559-cf398e5c9c73","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":210,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"7c2812b8-ec97-495f-b0e1-b7ab9b3f8872","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":210,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"ecc596e6-8e51-47d8-88f0-8cd1792efb1a","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":210,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"f4973c37-42c8-4969-9e99-f89ada8d538f","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company per formance, BIS may not","page_number":210,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"0a05ec63-64ff-4108-a765-42547387ff81","block_type":"box","text":"suppor t management’s proposals to approve compensation, where they are on the agenda. We may also not suppor t","page_number":210,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"43e86bbc-89e7-4cf7-9ba5-42d4b32c9b71","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":210,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"b4753da4-f13d-44fe-b377-ecbfb6639a39","block_type":"box","text":"structures.","page_number":210,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"c60d3293-49d3-482a-bd75-505e55bf8191","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":210,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"0ce9b38a-2d61-4b12-824a-5b54d5b2ed23","block_type":"box","text":"Corporate form","page_number":210,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"1172d219-4638-492d-a9d9-3baeb35514ac","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":210,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"e5525fd8-c744-4a8e-a64f-a74d2e11b5d2","block_type":"box","text":"the company’s purpose and business model.","page_number":210,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"957bb927-dbd2-466b-bd44-e817e78a6f0e","block_type":"box","text":"9","page_number":210,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"5b778a96-8a4b-46e2-a27d-acd99497affe","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":210,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"202cd902-4c85-4227-88fb-c3971f713774","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":210,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"c5dbe9a9-f31a-4f6a-b503-0dac28242330","block_type":"box","text":"applicable law. We appreciate when suppor ting documentation from companies or shareholders proposing to alter the","page_number":210,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"c75fe0c4-33cd-4a53-8983-3bfbff74757e","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":210,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"7f941949-b1ad-48a2-937c-1458542999e2","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally suppor t","page_number":210,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"ce8fac5a-b6e2-4389-a78c-17305fa74d0d","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":210,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"855f4b0d-3749-4cbb-a339-acbed3d6dfe1","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":210,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"16a1d8dd-1d7f-46ae-962c-9a017a1251c0","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":210,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"a3ba3882-529d-4015-86fa-fa759a84952c","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":210,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"c63463f3-e62d-4ec0-8351-c20bac44c527","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":210,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"e86a1e5f-6780-4eab-a79c-50d496eb4454","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":210,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"439787b5-3735-4bb4-b289-0d29d3578ebd","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":210,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"4d7f7fba-d519-40a1-a521-8be32d055678","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":210,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"105f4447-def3-4414-8844-083cccaaadb0","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":210,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"34f89fc5-5cf0-4781-92f9-7911dc0f57ac","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial per formance. BIS","page_number":210,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"a92c8662-c792-4094-91f0-5bf4165b0ce3","block_type":"box","text":"may suppor t shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":210,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"dac237b3-c0a1-4444-b945-f7b31dbf1060","block_type":"box","text":"clients, better understand the material risks and oppor tunities companies face and how they are managing them,","page_number":210,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"1906d59a-9846-4647-97a8-12045428fb22","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":210,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"990c7499-4f84-4dd1-a06f-ee63cddabf74","block_type":"box","text":"between the specific request formally made in the proposal, the suppor ting documentation, and the proponents’","page_number":210,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"3658c808-b303-4f30-88ad-513d4624fe06","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":210,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"8e2b453b-982b-4fec-a5a8-9734ece7cd15","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":210,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"a426c4c3-fa42-4b53-8f8a-6e6e1decaf7e","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":210,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"9cccffe0-64e3-4c4a-9d33-be9f0cf45788","block_type":"box","text":"BIS does not suppor t shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":210,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"48fd2e33-5bef-4381-8b5b-03a8ea3796e7","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":210,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"c516ce30-9229-48ce-a92d-d003c2611fe8","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":210,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"a5944054-a390-4118-b561-a33280d9ecdb","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":210,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"3fbf1fac-cd70-47f2-b371-7c7c8badf498","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":210,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"8614c960-0a85-4790-be83-709221c19f36","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":210,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"0988ef34-b080-4677-9bde-775f5db163ec","block_type":"box","text":"requests. Fur ther, the proponent’s suppor ting statement may refer to topics that are not directly related to the","page_number":210,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"0862d9fd-b423-402b-80e5-c48b238fb722","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":210,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"555002fd-4f7e-4997-9cfb-4c8ced0bba12","block_type":"box","text":"the proponent. Therefore, when we vote in suppor t of a proposal, we are not necessarily endorsing every element of","page_number":210,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"11d65bb0-07cc-4a0f-9fcb-85549a367580","block_type":"box","text":"9","page_number":210,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"39cb96c9-fc87-44b9-8f7e-8b9c222dbb1d","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":210,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"f0018989-bfb8-49f5-b3c0-4b3cf3885389","block_type":"box","text":"BlackRock Investment Stewardship","page_number":210,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"ee3b3368-da8e-4294-affa-c73eb1678e17","block_type":"box","text":"Global Principles | 9","page_number":210,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"4b468ba6-cf8d-4249-b1aa-7d1aa52e20d3","block_type":"box","text":"NM0926U-5977728-210/232","page_number":210,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7b39e92e-19d3-47d1-817c-7e87bda8dad2","block_type":"box","text":"the proposal or the reasoning, objectives, or suppor ting statement of the proponent. We may suppor t a proposal for","page_number":211,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"35a876b2-b3a7-4b60-be1a-48155eb51b7c","block_type":"box","text":"different reasons than those put for th by the proponent, when we believe that overall it may advance our clients’","page_number":211,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"c283abbd-e2d1-49d5-8234-9c324a425249","block_type":"box","text":"long-term financial interests.","page_number":211,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"407a0a1b-5588-4a9d-a791-bf660b52612a","block_type":"box","text":"BlackRock is subject to cer tain rules, regulations, agency guidance, and contractual agreements that place","page_number":211,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"a395de65-9d4a-4bf6-92f7-4006e74d3a5d","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":211,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"545abc41-c37b-4598-ad24-80ad025c3cfe","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":211,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"e1ae1c39-b787-4e56-bee1-ca904eb19519","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":211,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"a435ef59-06a2-46ef-8e1b-96cd0566c660","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":211,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"30bbca69-4a56-436b-a86a-9f46ff0103fc","block_type":"box","text":"Appropriate oversight of material risks and oppor tunities, including material sustainability-related risks and","page_number":211,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"5e6a521c-0093-4570-8390-3c8ad676af96","block_type":"box","text":"oppor tunities, is an impor tant component of having an effective governance framework that suppor ts durable, long","page_number":211,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"be2d9359-71b9-470e-9b5b-a3621db460ef","block_type":"box","text":"term financial value creation.","page_number":211,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"e4757613-a493-4aaa-b83c-f8c77c24213e","block_type":"box","text":"10","page_number":211,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"2987cafe-fd0d-42a5-b6dc-c6ca75ac3649","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":211,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"4633cdc1-6673-4929-9b92-176e3af3a1e8","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and oppor tunities. We find it helpful","page_number":211,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"638f2d6d-f354-453a-bae4-1e2550cf0c28","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":211,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"64c4cff1-77de-4149-96e0-8e523c3a4adf","block_type":"box","text":"sustainability-related risks and oppor tunities into their strategy, risk management, and metrics and targets, including","page_number":211,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"3f3663e6-f646-4ed0-8e4d-4e308f809e16","block_type":"box","text":"industry-specific metrics.","page_number":211,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"0609d43d-c639-4286-a45c-cea6052fc0c9","block_type":"box","text":"Standardized disclosure of sustainability-related data suppor ts investors in making informed decisions. The","page_number":211,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"e2350dcf-554a-431f-982f-429feb1c3ef5","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":211,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"61353f94-0cef-4b1c-95d6-61122d6f4ca5","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":211,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"4d64c3c3-e5a1-4583-8967-1c56988b827b","block_type":"box","text":"11","page_number":211,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"c05d4421-3490-47bc-8f26-5da226dbb620","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":211,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"bae80525-884a-45e0-ad1c-27f58035d195","block_type":"box","text":"companies should use, and recognize that companies may repor t using different standards, some of which may be","page_number":211,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"bd2ce1df-7f1f-4241-9e0e-90ca1cc1b40c","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":211,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"3565c428-6fcf-45ac-bd46-8a134d677b7e","block_type":"box","text":"specific.","page_number":211,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"613d173f-b608-4101-9cfd-04e01743795d","block_type":"box","text":"We also recognize that companies may be phasing in repor ting over several years. We do not prescribe timelines","page_number":211,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"657ce4d5-55e5-4782-a53f-d38a1e487d24","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":211,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"05c58108-12c2-486e-9027-a016c380b2a8","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":211,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"10593704-5d94-4509-a740-cda4964cb9d3","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":211,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"b9108bf8-f8d8-4a5f-8ae2-fdadfe7ce96f","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":211,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"bd233a14-76d8-4ebc-9442-9b3fb33004d7","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":211,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"d520cc01-67f3-47f4-81cd-227935002ef9","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":211,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"6625175b-946a-43b5-bfd9-3eaab62126bb","block_type":"box","text":"which they par ticipate, any peer group benchmarking under taken, and any assurance processes to help investors","page_number":211,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"43ef6528-c4a6-413f-8c89-8bafbecbe5de","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":211,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"52f8ccdb-b9c6-4827-849e-a6745882f3b2","block_type":"box","text":"10","page_number":211,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"4cfbaaa5-9827-40b1-b929-dd6ae7f56e68","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":211,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"5c785094-c1ac-4465-bee3-8f4faf6d45c0","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":211,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"2d89a5cf-35bf-454d-9bb6-be32947cd8f1","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":211,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"f0bb6c0b-8a8f-46aa-8696-9be76236c2ca","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":211,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"f2d8b118-5a0e-4ef9-b058-7045adcdf40f","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":211,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"75b65413-a5f5-4752-a1c8-1aa11dd3f394","block_type":"box","text":"11","page_number":211,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"7ab0cc45-ad89-4f1d-b18d-6d2acbd833a9","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":211,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"cdb2e664-2157-445d-97fd-cca77aeff532","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":211,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"be733186-45ed-4a4e-b372-746b6af9da2f","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":211,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"d82913ea-b53e-4418-a924-78f1715394df","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":211,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"d09b08f0-5630-4855-957f-1325bacda2ff","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":211,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"e0605dd0-d717-4fe0-9e0a-84feb0d7eac7","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":211,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"304e1058-daae-43d4-ac7d-04db58a1a492","block_type":"box","text":"BlackRock Investment Stewardship","page_number":211,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"1aff070b-bb8c-4a4b-a31b-64294180b360","block_type":"box","text":"Global Principles | 10","page_number":211,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"1382894d-d840-432f-89b7-4efa41a4cec8","block_type":"box","text":"NM0926U-5977728-211/232","page_number":211,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"70e990e8-3fe2-4fd7-99bb-29be84d3064b","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":212,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"6b1cba6a-f90f-4544-8363-a60631f11821","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":212,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"48978394-3055-438a-95e7-cab9f49ecee3","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":212,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"06aece25-24fe-4157-a5a1-1203e31a972b","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial per formance through","page_number":212,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"6b400aaa-4b76-4276-b47e-fe3a01ff1770","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":212,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"f2d910d2-eb9b-4011-aba3-f78862eedd8d","block_type":"box","text":"12, 13","page_number":212,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"0e37cae9-6bc1-49e0-b3dc-97857a2d808c","block_type":"box","text":"From company disclosures and","page_number":212,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"04ae1125-8cd2-41ff-9546-68f7add86471","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":212,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"a926bfbd-37b7-4a70-b8e3-ef1f4e875119","block_type":"box","text":"oppor tunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":212,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"17833a44-a9ef-48b2-ac13-c34b16575038","block_type":"box","text":"Recognizing the value of these disclosures, cer tain markets such as the European Union mandate large","page_number":212,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"c0a10e51-9574-4e38-8dd2-a1800bafd2e5","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":212,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"f4ad33ec-3d18-43fb-bb3c-cb3d160857b5","block_type":"box","text":"viewed as best practice in the market.","page_number":212,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"80fb2341-99d4-49bf-a214-a73e48c20c85","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":212,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"edf2a482-0fb3-4772-9086-6637f12f74dc","block_type":"box","text":"climate-related risks and oppor tunities, and informing investment decisions. Such disclosures also provide investors","page_number":212,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"a65c41ed-ca34-4038-9e9e-8e7c202cbbf9","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":212,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"00c269d0-8e62-41ec-bd31-593834e17dbb","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":212,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"63eb2624-3d9f-4762-8485-8dab140cd3f5","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting shor t-, medium- and","page_number":212,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"95b82933-6b10-4911-8d55-5eae43cbe0e8","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":212,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"c6d55c74-b23a-4e95-a2a8-32207fd08693","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":212,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"5dd7e6bb-ac14-4079-aa43-2017d9e71ac3","block_type":"box","text":"interests of their investors.","page_number":212,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"d630378e-a7d0-4bf4-8920-ef2ca8294b08","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate cer tain disclosures, at this stage,","page_number":212,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"8e3009bd-06d7-469b-9e2b-aefc9082dc74","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncer tainty,","page_number":212,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"b9ac003b-fedb-43e8-ba28-4c82272986f8","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":212,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"6c0fb613-f0fe-4c45-ad2f-f3ecdd0e6f2d","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":212,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"b1676d6b-c506-42c0-8c97-255d8a7ce534","block_type":"box","text":"good-faith basis as methodology develops.","page_number":212,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"caf40448-fbbc-4da6-b400-e722986d9852","block_type":"box","text":"In addition to climate-related risks and oppor tunities, for companies whose strategies, operations or supply","page_number":212,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"32b1db94-1a26-44c0-9c4f-da1933186df7","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and oppor tunities may affect their ability to","page_number":212,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"7751bcde-009b-4804-911e-e1d9e97c99b2","block_type":"box","text":"generate long-term financial returns.","page_number":212,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"f8c99c41-3107-4272-8198-e9bbc12577ed","block_type":"box","text":"14","page_number":212,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"06da1997-6785-490a-91b5-0ebe7d569387","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":212,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"6de39cd5-2ac5-41b6-b83e-5b582a4abe09","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":212,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"806f7164-f4c3-4389-8309-73a33c4286b6","block_type":"box","text":"15","page_number":212,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"42621731-5013-4cec-87ae-bdb0961f0632","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":212,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"8a33bd2f-5201-4346-b537-0f14207034ed","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":212,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"610ef961-7e2b-4406-8cea-49f8dee8c1b9","block_type":"box","text":"per formance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":212,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"b1d7f084-da34-4cfa-afd4-3279b59a1c97","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":212,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"2ccac4d7-343a-4be9-b162-83ab9fc22007","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":212,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"b15ab822-a179-43d1-9e53-0d7287b5f23a","block_type":"box","text":"more likely to deliver durable, long-term financial per formance. By contrast, we have found that poor relationships","page_number":212,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"2db1f138-9b1d-4f0b-af39-0986c6d56235","block_type":"box","text":"12","page_number":212,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"9632f138-c119-4ebc-a700-9907e94a36f9","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in cer tain markets are","page_number":212,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"22e3a865-ef3c-448e-bd97-3e5a28859655","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":212,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"6afc30b0-c90c-4470-87da-af319587c2ce","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":212,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"82bcc928-fb2e-4e0c-b877-51c1faa6c8fd","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":212,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"b5c318b7-37ca-4674-9806-8ed4cb52d218","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":212,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"56ebcab3-d298-4ad0-bac9-51199a380171","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":212,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"63fbf58e-cf52-4a3c-b8a0-704fc7465b1c","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":212,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"ef37bf59-689e-47dd-b8e7-6efdcf0f48bd","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":212,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"151355f8-9c50-4b0a-be16-03dfdffcb066","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":212,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"79ceb2b6-9d37-4f8c-9bcd-ac28a41cb8a3","block_type":"box","text":"13","page_number":212,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"7f4d2956-2038-49ab-9331-a46c151ed999","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":212,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"17a01266-f3ad-44da-ac47-53a3fe197c18","block_type":"box","text":"2025.","page_number":212,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"0d933237-116a-47d2-a67f-4ea2a11aa584","block_type":"box","text":"14","page_number":212,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"0aa94626-a797-45ce-9942-c743fe780b4b","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":212,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"aaac7820-359a-4544-9000-ae7cc79f2818","block_type":"box","text":"2025.","page_number":212,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"eb27a340-74ca-4c35-82e4-ba8536118345","block_type":"box","text":"15","page_number":212,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"269c5fce-163a-4377-8a44-b1d5994bd4c4","block_type":"box","text":"Given the growing awareness of the materiality of these issues for cer tain businesses, enhanced repor ting on a","page_number":212,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"ef82553d-62b2-4072-8d60-59f2c96d4e17","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":212,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"5b44208a-9351-4ed9-98e4-93560820d4da","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":212,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"3b4fdc09-8ff1-47ce-b333-306fbd1e95d4","block_type":"box","text":"some companies may repor t using different standards, which may be required by regulation, or one of a number of","page_number":212,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"90f99a25-d657-4db2-947a-87048642d8af","block_type":"box","text":"other private sector standards. TNFD-aligned repor ting is not a voting issue. Website accessed in December 2025.","page_number":212,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"e554b32c-8d84-4237-930e-3e3722dde586","block_type":"box","text":"BlackRock Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"8c8a27e1-5051-473b-a333-70a8cdcb6ff1","block_type":"box","text":"Global Principles | 11","page_number":212,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"1dbaedeb-7dcb-43e0-a8fd-cbbf0ce86da1","block_type":"box","text":"NM0926U-5977728-212/232","page_number":212,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"647f43ec-d025-4db4-a0ba-2850e0fc44eb","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":213,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"19935a90-8f8a-463a-a099-33c393d7b97d","block_type":"box","text":"This is par ticularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":213,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"6fd054dd-4955-4d34-af92-bf0e20c75bb2","block_type":"box","text":"16","page_number":213,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"0e6d0b78-ec85-4879-9223-351df5bd03fe","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":213,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"1623a163-3fe5-4033-8baa-ba23908828e0","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":213,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"aa0aae48-d811-4542-beeb-e863a51e3cb7","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":213,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"7cc22d37-ad0b-4a9e-a094-fa2024021734","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":213,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"226b51b1-8ccc-4432-8214-97b57c3ba526","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":213,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"70cc31a4-a2c2-4d91-b5c7-1c811d6fd724","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":213,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"6f65f8d5-d646-47c2-b620-674ef1eee572","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":213,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"24f4a731-dac8-4382-8d75-cc31412842e2","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":213,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"e1bbef1f-ad9f-4d4d-bcb1-99479acffd74","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":213,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"a292b4c5-36c3-430f-8740-8c059f29ea3f","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":213,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"9c62b1a2-21ce-4000-8c67-3f8269202238","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":213,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"0452d700-2dd6-447c-a171-9acc33850180","block_type":"box","text":"impacts.","page_number":213,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"b9916ba7-a3f0-4a0e-aca0-cb19a24fc8f8","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":213,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"68462933-9cf0-47b5-9918-79473852bf96","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or suppor ting a business relevant","page_number":213,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"b29465a7-ea9c-42b1-b060-727dae5c079e","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":213,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"9b7339f5-3a4a-4ce7-b6b8-dee0d55cc7d5","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":213,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"95ceb97f-ab31-457b-b5df-d7e0ffcdc1e3","block_type":"box","text":"BIS’ governance structure suppor ts oversight and accountability of stewardship-related activities on behalf of","page_number":213,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"72cfb98b-2f2d-464d-9569-bb3587587ef4","block_type":"box","text":"clients at the global and regional level.","page_number":213,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"9c2e7d33-199d-433a-a5e3-14064849a013","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":213,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"479287a6-412f-4360-b00e-1051effecf69","block_type":"box","text":"suppor ts BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":213,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"6e9e347b-316e-4fa1-a214-45b619e1190b","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":213,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"fb38c919-0d1b-4466-ad42-52f79648d896","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic repor ts regarding the votes cast by","page_number":213,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"863469bc-3fe8-4d4d-90ae-c18e9199bc21","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":213,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"bbe3cbdf-523b-4722-b18f-db4f0cd0c23a","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":213,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"be9b1d76-2ddf-419b-8e6f-c9d3b9d8897c","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":213,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"49dbff7a-4df5-4855-9d37-ac2a080a272b","block_type":"box","text":"are independent from the investment stewardship function.","page_number":213,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"ec6ee5ef-ea14-4b96-8cf4-035da59ec991","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":213,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"631bd6bd-02d3-4177-b795-524e5a2b1c1a","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":213,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"5f734a8e-0e48-48ec-9d30-6020ed1fff7c","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":213,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"3c861194-b743-4452-b46c-377a89b7b876","block_type":"box","text":"VOTE EXECUTION","page_number":213,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"4f8985f4-48da-491c-9111-8ceac4831804","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":213,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"fc9d9adc-047e-4aa3-b68a-86ab051f2ca6","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":213,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"2241b94b-1f31-4df8-b538-964f38dc4242","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":213,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"16930466-86fd-4a66-b558-516b7388b47b","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":213,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"72c6bfec-e49f-43e1-9597-2476433f719c","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":213,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"6bd87db8-1326-4ef5-841b-16f557064793","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":213,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"b291557e-ed3f-4825-8ffc-b5e174fe2ed1","block_type":"box","text":"management policies and procedures,” below).","page_number":213,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"c7e91a01-1a75-4a33-9218-43f1264ad058","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":213,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"ec666084-45a0-4c84-88f7-531422b5f0bd","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":213,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"5e8bec9e-13b1-4546-b6e1-6bc4e6083a18","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":213,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"13ed6df2-3be0-424d-9a0e-bc7159e565ba","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":213,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"ab9d93d8-6564-496e-8e76-38a5b5556c3b","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":213,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"e98dde41-09e9-4e95-831f-843deb0f2686","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":213,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"272d8618-efae-44d4-8e38-ed5d4c205c00","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to","page_number":213,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"9e9a0cf0-8821-427f-9116-2ffc4c196ee5","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":213,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"442a270a-05b1-49c8-a664-8c0f66b1fc07","block_type":"box","text":"16","page_number":213,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"b0726926-3c46-4bee-b352-390b42e33b48","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":213,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"0a3039c0-279f-4169-87d5-ef8e23cc4970","block_type":"box","text":"December 2025.","page_number":213,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"1d9980b0-1a67-4210-8e92-3cbedf499e49","block_type":"box","text":"BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"39c13a06-5427-4453-9b5f-5f788d7ae750","block_type":"box","text":"Global Principles | 12","page_number":213,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"e86e9542-4532-4b59-b049-9a2c5cf6d63b","block_type":"box","text":"NM0926U-5977728-213/232","page_number":213,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"caddc352-af06-4fd9-924a-23900d1a16d1","block_type":"box","text":"BIS votes proxies in these situations on a “best-effor ts” basis. In addition, BIS may determine that it is generally","page_number":214,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"b29ab532-fd1e-40f6-b747-e11f21aa640d","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":214,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"466af3ba-6b29-40ad-9900-61191d545509","block_type":"box","text":"not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":214,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"860e10d1-3ded-46df-898d-a5fc61580534","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":214,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"726c75bb-df50-4b15-9ea0-eb4046838af3","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":214,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"8c40ed34-03f8-4bfb-8988-0bd8d58c5227","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business par tnership or","page_number":214,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"e2075683-f90c-4ea9-9330-9726e3dbe797","block_type":"box","text":"enterprise-level vendor management activities.","page_number":214,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"864d0d33-1e02-4eaa-84cd-b19c81c8f41a","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":214,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"37ac225f-ee0d-4211-84d1-7f75461937fa","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":214,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"7928405d-880f-4e92-a490-60b86a1b5883","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":214,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"47c2c010-b584-4f40-9863-d315245c507f","block_type":"box","text":"BlackRock employees.","page_number":214,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"5ab9942b-db68-43ef-8ec3-e1e7e27a785d","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":214,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"e5cb3a40-19f4-40bb-93cf-ca7462d899a0","block_type":"box","text":"SECURITIES LENDING","page_number":214,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"8192e8b0-8c1e-4c91-8581-c2e0fa878530","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":214,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"faed013e-c7c8-4e2f-85b4-9df3579057dd","block_type":"box","text":"enables BlackRock to increase the returns in clients’ por tfolios, and BlackRock’s lending agreements allow it to","page_number":214,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"1deb3fca-1bee-4bfd-804e-02abac276496","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":214,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"96c455f6-f802-48b1-99b1-b4e7f1d36664","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":214,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"2ebfa486-6987-449b-9ddf-090c37960e9d","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":214,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"c413777e-2743-4564-b5c3-015dadc6254d","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":214,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"3c0073e4-712d-481e-83b1-e44e562e299b","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":214,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"223df5a7-b6fd-4ceb-9a94-50879f360960","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":214,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"64b38002-c0d1-4fbb-8555-934dd50b2282","block_type":"box","text":"recall securities on loan as par t of BlackRock’s securities lending program in order to vote is based on an evaluation","page_number":214,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"b81b784e-c010-4071-a55f-b8c7e8cd2b94","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":214,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"da03003f-4fd7-4408-ae52-1e773315ca85","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":214,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"73c4fad9-8f46-4001-b861-92197e2b3404","block_type":"box","text":"of recall consideration).","page_number":214,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"8cb776ac-0dd2-425b-9746-8f248f9638ae","block_type":"box","text":"17","page_number":214,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"644346c8-b61b-4aed-8ad1-57cd7167239b","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":214,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"bb9bb187-59b9-48b6-af64-d7125cbf18bd","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":214,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"2881c758-81a6-47d5-925e-0df335488c1c","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":214,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"d2e16fbf-e44f-4b49-ad5c-bfb90290cdd4","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in cer tain instances,","page_number":214,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"09124961-1a5f-4c6e-90bc-913865cfe297","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":214,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"a98a62e7-a5c5-47bb-ba72-380b20cb7bbb","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":214,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"538ec15f-4da0-467e-afe4-3a4dfee5372f","block_type":"box","text":"impor tant to note that the majority of lendable assets in the market at any given time are not out on loan.","page_number":214,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"f0871349-c0c2-45e6-a2e7-bfcda1cc32bc","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":214,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"c5c0de40-3178-4b53-9dcb-464293fbc71e","block_type":"box","text":"and may modify it as necessary.","page_number":214,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"b20d9a00-f2f5-4d49-b177-058bbe7519c4","block_type":"box","text":"VOTING CHOICE","page_number":214,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"cb846a32-6cbe-4c6b-98a4-d447bc67d571","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":214,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"abd79b5e-4761-44f6-b80f-52f235c7748d","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":214,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"997775bd-de07-44cf-aa19-d171b83d2e7b","block_type":"box","text":"18","page_number":214,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"9d0857f8-930f-465f-a771-a3ace8b3e4f3","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in cer tain institutional pooled funds in the U.S.,","page_number":214,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"202d1a33-6b04-4ca3-9c1b-7b831ce4d8f9","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":214,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"d49a2673-735b-4e10-92b9-9f61ca75c77f","block_type":"box","text":"17","page_number":214,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"250614c0-f5df-4011-92f2-3ffd56004636","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":214,"box":{"x":84,"y":747,"width":789,"height":11}},{"id":"dcdba0d1-eb46-45d9-88be-9e3e8a3c60b6","block_type":"box","text":"date of a shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not","page_number":214,"box":{"x":69,"y":762,"width":763,"height":11}},{"id":"b51f5a41-1cae-4ba6-8f7f-36ee4083bc69","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":214,"box":{"x":70,"y":777,"width":794,"height":11}},{"id":"55a068fc-e1ca-4134-a0e5-ee64af5c8671","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":214,"box":{"x":69,"y":792,"width":833,"height":11}},{"id":"e6514172-b03d-40dc-8035-988a544c0837","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":214,"box":{"x":69,"y":807,"width":821,"height":11}},{"id":"f7b2e1e8-a150-4374-91a6-6d6034d11238","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":214,"box":{"x":69,"y":822,"width":823,"height":12}},{"id":"cb06fe6e-0162-4401-867f-9703ea8f5ce0","block_type":"box","text":"fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to","page_number":214,"box":{"x":68,"y":837,"width":822,"height":12}},{"id":"748ea4cd-9877-4382-883c-99b82bc993f6","block_type":"box","text":"potentially earn revenue for the fund (thereby forgoing the oppor tunity to vote).","page_number":214,"box":{"x":70,"y":852,"width":558,"height":12}},{"id":"1406b65c-b949-4109-b941-b1a9f50208c4","block_type":"box","text":"18","page_number":214,"box":{"x":69,"y":870,"width":9,"height":5}},{"id":"db7c7af0-ad98-427a-b13a-e34ac277d538","block_type":"box","text":"BlackRock will determine eligibility criteria under this program based upon, among other things, local market","page_number":214,"box":{"x":84,"y":870,"width":771,"height":11}},{"id":"7608b79a-1392-408b-8cd8-922c6ee90c0b","block_type":"box","text":"regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations,","page_number":214,"box":{"x":69,"y":885,"width":779,"height":11}},{"id":"5b7dc6cc-b74e-45c9-a27b-e8aada181d9f","block_type":"box","text":"including the decision to lend securities.","page_number":214,"box":{"x":70,"y":901,"width":285,"height":11}},{"id":"7579961f-2c12-4b79-89a6-c8bae02a69ae","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"4b1dbf9d-aff6-4c65-aa21-56b53b680dd9","block_type":"box","text":"Global Principles | 13","page_number":214,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"bc77b53a-a88a-4f0f-b64e-396fb509ea75","block_type":"box","text":"NM0926U-5977728-214/232","page_number":214,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"34816c3e-6375-4760-9b51-a26f0f143354","block_type":"box","text":"cer tain institutional pooled funds in the U.S., UK, Canada, and Switzerland that use systematic active equity","page_number":215,"box":{"x":69,"y":45,"width":772,"height":11}},{"id":"edca2123-e1c9-4baa-9ce7-d203a25bb036","block_type":"box","text":"(SAE) strategies. 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This includes companies which produce goods and services that contribute to real world","page_number":219,"box":{"x":69,"y":647,"width":753,"height":11}},{"id":"1077c125-8add-4d83-9b40-d32387c5fd80","block_type":"box","text":"decarbonization or have a carbon intensive business model and face outsized impacts from the low-carbon transition,","page_number":219,"box":{"x":69,"y":662,"width":836,"height":11}},{"id":"76ed2a5a-c343-4540-8b66-cbb64f6c8531","block_type":"box","text":"1","page_number":219,"box":{"x":69,"y":692,"width":4,"height":4}},{"id":"a37176c0-6837-4d8b-b40d-aa041f8d20a6","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":219,"box":{"x":79,"y":691,"width":790,"height":11}},{"id":"a022126d-985a-45da-b08b-278595c651e7","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":219,"box":{"x":69,"y":706,"width":836,"height":12}},{"id":"0e67776b-c768-4288-b9d9-239794c49aaf","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":219,"box":{"x":68,"y":721,"width":805,"height":12}},{"id":"b9f740ce-6b88-48ba-9ce8-5a80b0ab2a6f","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":219,"box":{"x":69,"y":737,"width":405,"height":11}},{"id":"b947770d-ee29-4b37-be27-b6c57a35d38f","block_type":"box","text":"2","page_number":219,"box":{"x":69,"y":755,"width":4,"height":4}},{"id":"aaf5b310-4c52-4f4d-a57c-4667027ef21b","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":219,"box":{"x":79,"y":754,"width":780,"height":11}},{"id":"f912d1ac-422f-42f3-ae55-5a734ebf931e","block_type":"box","text":"commitments to align their investment strategies with the transition to a low-carbon economy. 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Net zero commitments are sourced from respective","page_number":219,"box":{"x":79,"y":850,"width":782,"height":11}},{"id":"a572ea55-ecba-4c8d-bba7-bf6c92e725f9","block_type":"box","text":"company websites, as of January 2025.","page_number":219,"box":{"x":69,"y":865,"width":284,"height":11}},{"id":"3907e590-7810-4a64-bcf2-22dc3d3cdf1a","block_type":"box","text":"5","page_number":219,"box":{"x":69,"y":883,"width":4,"height":5}},{"id":"97d140c6-06c5-4431-9201-1b455546ec8b","block_type":"box","text":"A list of approved funds is on BlackRock’s website here.","page_number":219,"box":{"x":78,"y":883,"width":401,"height":11}},{"id":"4f15274e-2f9e-4deb-a5d9-f046bbb16623","block_type":"box","text":"6","page_number":219,"box":{"x":69,"y":901,"width":4,"height":4}},{"id":"2ccb967b-5f95-4d19-9e49-b16451e046f1","block_type":"box","text":"United Nations Climate Change, “The Paris Agreement,” accessed in December 2025.","page_number":219,"box":{"x":79,"y":900,"width":614,"height":12}},{"id":"bb135fb3-fb8c-48f1-b12f-08012b040270","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"2560ffb0-086a-4fc3-b37a-7d188b9c009d","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 3","page_number":219,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"3b5694e7-b7e0-4331-ad76-0fcb44a40a1b","block_type":"box","text":"NM0926U-5977728-219/232","page_number":219,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"812b1da3-b0ff-4b36-a4a8-32f742d61821","block_type":"box","text":"par ticularly those representing the major sources of scopes 1, 2, and 3 greenhouse gas (GHG) emissions across","page_number":220,"box":{"x":70,"y":45,"width":806,"height":11}},{"id":"4b755a6c-8c40-4f33-bc4a-034c687b15f0","block_type":"box","text":"companies held by in-scope funds and accounts that have selected the Guidelines.","page_number":220,"box":{"x":69,"y":60,"width":590,"height":11}},{"id":"4a4fd89f-15a2-4566-aad5-8c8fd72406a7","block_type":"box","text":"7","page_number":220,"box":{"x":661,"y":60,"width":4,"height":5}},{"id":"ca117813-1042-4a11-9c8e-9fc57b7402ee","block_type":"box","text":"For companies and matters not related to climate and transition risks, the dedicated team follows BIS’","page_number":220,"box":{"x":102,"y":82,"width":731,"height":11}},{"id":"0d4c3ddc-796a-47ca-82c5-b92c7e27bd81","block_type":"box","text":"Benchmark Policies.","page_number":220,"box":{"x":70,"y":98,"width":141,"height":9}},{"id":"cf8596e1-5720-4942-8f05-e23c8ff58886","block_type":"box","text":"8","page_number":220,"box":{"x":213,"y":98,"width":4,"height":4}},{"id":"e22273cc-2bc0-45a1-9374-5a2e07410015","block_type":"box","text":"In addition, for clients who do not direct BlackRock to prioritize climate risks and","page_number":220,"box":{"x":224,"y":98,"width":572,"height":11}},{"id":"80ed0d0b-717d-4d73-8d0e-236cf3a07294","block_type":"box","text":"decarbonization as an investment objective, BIS under takes our stewardship responsibilities in line with our","page_number":220,"box":{"x":69,"y":113,"width":769,"height":11}},{"id":"9d4bae7f-7f51-404a-aae6-e3a00f05b5dc","block_type":"box","text":"Benchmark Policies, with a sole focus on advancing those clients’ long-term financial interests. 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In addition, cer tain disclosures related to a company’s plans for adapting their","page_number":221,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"9999ae34-c17b-4c38-b5af-a92c02f7ebd8","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":221,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"514ab96a-ddc7-41fe-bffc-1f8cf88f657b","block_type":"box","text":"14","page_number":221,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"0fb34a65-de0e-42b6-95ca-614b7a1a48f1","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":221,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"131b8493-29af-408c-b10c-65baf331c58b","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":221,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"0491d300-fd22-473d-8f7c-0b41c5a6f163","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":221,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"304499f8-0e7a-43f2-8d64-1e770219bb45","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":221,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"154f78e9-85d4-49cf-b4fb-686a8c3a8c45","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":221,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"b93d2eae-b5e5-46b1-b7b5-b5009e4411ef","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":221,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"77a5074e-16b0-4b03-ac3b-c4321cd6b6e6","block_type":"box","text":"15","page_number":221,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"673b485d-8f9b-40c9-964c-cc691146b042","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":221,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"a0ecb7a1-da16-4a92-9c80-930151e5259d","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":221,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"b89ec4a3-0f72-4d8c-82a7-b4337351babd","block_type":"box","text":"companies may repor t using different standards, some of which may be required by regulation. In such cases, we","page_number":221,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"a65f4e5a-7cd6-462d-b13b-d3055572432c","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":221,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"cd549f91-2d29-4291-938b-bf77ea54f252","block_type":"box","text":"may be phasing in repor ting over several years. We do not prescribe timelines regarding when companies should","page_number":221,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"34383669-fffd-48ea-a6ba-c72aa04ec8f0","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"6bb69f5b-90f9-4592-bf74-cf5355a92ce1","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":221,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"52015bd2-2f68-4454-87b3-cf8124a6268a","block_type":"box","text":"NM0926U-5977728-221/232","page_number":221,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"95ad2f24-ba38-4d9d-9f24-e732a7da6cfe","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":222,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"4986cc3b-1bfc-489b-bbb1-8c31d0a26458","block_type":"box","text":"16, 17","page_number":222,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"737ad45f-fb10-49ae-a803-933444a4711d","block_type":"box","text":"In addition, the dedicated team looks to","page_number":222,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"942da3ef-05b6-44e0-bebc-8465be5f5b7f","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":222,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"fa7272f9-75a2-403d-b116-dee3fe67abe3","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":222,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"187fd5d7-1d99-46f4-a6a2-1f89814159b2","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":222,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"161d394c-f4b7-4595-a18f-e0c1d9920de4","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":222,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"175a9bc2-5dd7-4b51-a2a9-8c502922bed5","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":222,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"95951b38-744b-40f6-ae3f-6abcc1e0a264","block_type":"box","text":"18","page_number":222,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"3370e58b-13cc-49ed-ab1a-3499feaf8b9e","block_type":"box","text":"However,","page_number":222,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"fc7b0b78-5627-403f-9b8e-fe5c67495f13","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different par ts of","page_number":222,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"0f9795e8-388b-4481-b109-ad0a2cf18004","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":222,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"fe47dca2-4cee-4cc6-a4dd-ceb85053f4e1","block_type":"box","text":"their decarbonization targets. For some companies that play an impor tant role in the low-carbon transition, scope","page_number":222,"box":{"x":101,"y":166,"width":807,"height":11}},{"id":"072bfb20-6a88-4caf-b9e9-527e3fcad94c","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":222,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"02a5f02a-6ffc-439d-af25-2d5c9c22a7cd","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control, where relevant, we","page_number":222,"box":{"x":101,"y":196,"width":808,"height":11}},{"id":"7ecb1efb-a51f-4ec8-b536-091d36fbc2a2","block_type":"box","text":"look for disclosures on how the company approaches the low-carbon transition in these cases. This may include","page_number":222,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"0029c7ba-87ab-4bf9-b0b3-e329eb590475","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":222,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"1be43b5b-fcfb-4a09-b2a8-ce5e27513a6f","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":222,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"8f11e558-c718-49fd-855b-fabbee56ebd3","block_type":"box","text":"transition risks.","page_number":222,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"653afc66-6767-4431-8a97-afbb8ce08e01","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":222,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"f524069d-8871-45a4-a792-3058d0ff2884","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":222,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"34edeceb-2c4c-47db-a6c9-233396fac478","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":222,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"690ad91e-debd-4c7e-994e-69a96895bb8c","block_type":"box","text":"Transition plans","page_number":222,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"6704421e-8532-4e88-b33e-e04f027aea7e","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":222,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"2a75ee23-d42d-4cbd-b9bc-5b4a5e7a0a56","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":222,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"4af3fdee-d90c-461a-bfba-2ee5b8852ec1","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":222,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"cdc0a6f3-70e7-4402-8bb3-bf27d60809aa","block_type":"box","text":"(see Appendix 1).","page_number":222,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"378ff178-8b55-4e35-b67a-7c08dcf7ab28","block_type":"box","text":"19","page_number":222,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"0d06d2be-4cdf-44bd-b5a4-1f2be1661b42","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":222,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"c6982d6c-72a6-42e9-8acd-e82c3e0f3f6b","block_type":"box","text":"transition plans.","page_number":222,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"bddd18b3-05de-4112-a0ac-a9851aa5f93a","block_type":"box","text":"20","page_number":222,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"d62223a3-73ee-4085-8832-636cb15509ce","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":222,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"e0957ec1-a985-430b-b1bf-aeaea4ef20cf","block_type":"box","text":"repor ting approaches.","page_number":222,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"7bbec5f7-ae46-41ec-874d-33a6164276cc","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":222,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"a8d866b2-1492-4aed-bae6-b7daaab31459","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":222,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"1416e21b-51bf-48d9-9f7e-df85000db07a","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":222,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"affad0cf-df54-47fb-ad20-78f9c25369fe","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":222,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"689c6328-feec-40ae-bb55-0177191bb410","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":222,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"c23dd246-31a6-4c4f-9eaf-8d22a6870a7e","block_type":"box","text":"informed voting decisions.","page_number":222,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"4772dd37-b45c-4e93-8a16-9bc9e24e0ee4","block_type":"box","text":"16","page_number":222,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"90e6c6cd-4410-48e4-9843-ee8604f60cec","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":222,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"bd057092-6452-4889-8d9e-e9c1f1ceb00c","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":222,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"ad97eda0-d3c0-4c1b-ad67-215ffd651f4e","block_type":"box","text":"December 2025.","page_number":222,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"ff9ad22c-e5de-4346-82b5-d326b9f5175a","block_type":"box","text":"17","page_number":222,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"32252f5c-c458-4cbf-82bc-d0af96f04bf0","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":222,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"5eea08ee-7615-4ec3-b5dd-978cf8c61975","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":222,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"5caa341a-1004-4e3c-94af-f01cc513df13","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":222,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"f3ad50f6-3637-42ce-9828-69eae10bc460","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":222,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"45fe9272-2f58-4890-a4af-f2ed5b388940","block_type":"box","text":"18","page_number":222,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"3e1a7803-e40e-4ad2-9ddc-01a80ed1aad9","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":222,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"25dd66f5-f315-4cae-94d3-37b56fd25c75","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":222,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"3b259000-709a-459e-81ff-6e4b8c7f750e","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":222,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"30410963-602e-4ed4-91d1-548251f00773","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":222,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"47d1486b-8e34-41f7-b8a6-c3991cc13503","block_type":"box","text":"material to their business models.","page_number":222,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"2ec89f43-1ee3-46d4-84e4-c82f444ffcaa","block_type":"box","text":"19","page_number":222,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"049d4df4-c7a0-40cb-bcd5-b6a9ddbe07c4","block_type":"box","text":"International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":222,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"50a2e504-1836-44f1-a26d-4554200dac78","block_type":"box","text":"December 2025.","page_number":222,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"a4811427-bfa1-4558-bb08-f913c1d3c4b3","block_type":"box","text":"20","page_number":222,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"5b57ec1b-2407-4a6e-bc61-69605797749d","block_type":"box","text":"More companies are developing such plans, and public policymakers in cer tain markets are signaling their","page_number":222,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"b693bf5b-0fc4-45c0-afe5-397b2f980f89","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":222,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"2b32c73d-5f42-47a7-b59a-38cd57c8fbb1","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":222,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"723011e7-594d-4056-99b1-585c9f32ce1d","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":222,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"34c0f4a4-3255-4b0b-b061-08274c3db92c","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":222,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"1c4e988d-b438-48ec-a0ef-34aa146c97f9","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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Where the dedicated team","page_number":223,"box":{"x":69,"y":599,"width":788,"height":11}},{"id":"a01049ac-d394-4b17-ba45-1abddea032a4","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":223,"box":{"x":69,"y":614,"width":828,"height":11}},{"id":"a15cac97-d280-48a6-b7b9-7a1fc1d12978","block_type":"box","text":"having the most responsibility for the issue. 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The research uses a definition of materiality from the GHG Protocol,","page_number":223,"box":{"x":69,"y":734,"width":813,"height":11}},{"id":"6c24219c-ff3d-4808-a3ce-9fa366587be9","block_type":"box","text":"which “encourages companies to maintain a representative inventory of the “most significant GHG emissions, [that]","page_number":223,"box":{"x":68,"y":749,"width":828,"height":11}},{"id":"7b36e445-c02b-4a5c-bbf8-27f5f7917238","block_type":"box","text":"offer the most significant GHG reduction oppor tunities and are most relevant to the company’s business goals.”","page_number":223,"box":{"x":69,"y":764,"width":801,"height":12}},{"id":"a603d837-d40d-454f-8844-0daa97bef4cc","block_type":"box","text":"Website accessed in December 2025.","page_number":223,"box":{"x":68,"y":779,"width":272,"height":9}},{"id":"38ca9b8c-44b7-4b2c-b1ba-5592986392bb","block_type":"box","text":"22","page_number":223,"box":{"x":69,"y":797,"width":9,"height":5}},{"id":"e5c51612-a70a-4d6e-b116-2f95b7a69ad6","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":223,"box":{"x":84,"y":797,"width":787,"height":11}},{"id":"51bd4b4b-0ee7-4da1-a6a2-256674ec9d88","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":223,"box":{"x":68,"y":812,"width":500,"height":11}},{"id":"54b77e69-835f-4c63-8458-65df9c064507","block_type":"box","text":"23","page_number":223,"box":{"x":69,"y":830,"width":9,"height":5}},{"id":"db93f031-8543-4e84-b920-6eac5bc1c9af","block_type":"box","text":"Board repor t votes are generally advisory and relate to repor ts issued by the board of directors that may contain","page_number":223,"box":{"x":84,"y":830,"width":801,"height":11}},{"id":"6bb12bca-54d7-46ab-ac81-7a10290917a9","block_type":"box","text":"information on a company’s sustainability effor ts, operational resilience, or financial condition, among others.","page_number":223,"box":{"x":70,"y":845,"width":782,"height":11}},{"id":"5e2894cb-5ec4-414e-b0b1-194edd4f8cdc","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"64a73b5e-fdb4-4eb4-8b9e-32cf38239144","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 7","page_number":223,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"61db3b4a-92e4-4f7c-b469-1af46a73fcae","block_type":"box","text":"NM0926U-5977728-223/232","page_number":223,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"238773cc-3d1a-4214-9639-887ac385a10c","block_type":"box","text":"Where the dedicated team has not suppor ted director elections over climate concerns in a prior year, and the","page_number":224,"box":{"x":101,"y":45,"width":780,"height":11}},{"id":"4af5c134-45e8-4639-847f-b0dbeaeaa516","block_type":"box","text":"company has not subsequently made progress towards aligning with the transition to a low-carbon economy, the team","page_number":224,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"335c4e0d-b1bd-4815-bf5f-0181fd14adda","block_type":"box","text":"may escalate by not suppor ting the re-election of additional responsible directors.","page_number":224,"box":{"x":69,"y":75,"width":582,"height":11}},{"id":"1e256692-4f5c-42b4-bf85-194dde32ac32","block_type":"box","text":"24","page_number":224,"box":{"x":653,"y":75,"width":9,"height":5}},{"id":"7f3eabdf-cd5b-40db-a4e7-116f11dd61f6","block_type":"box","text":"Management proposals to approve a climate strategy or progress report","page_number":224,"box":{"x":69,"y":105,"width":528,"height":11}},{"id":"a92a2010-7274-4a51-ad9d-f34f170edc75","block_type":"box","text":"In cer tain markets, company management may submit proposals— commonly referred to as “Say on Climate” —","page_number":224,"box":{"x":102,"y":128,"width":807,"height":11}},{"id":"0943b41b-9296-4fad-8a5d-40334c799e77","block_type":"box","text":"seeking shareholder approval of their climate action plans or progress repor ts. 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Under the Guidelines, the team may suppor t","page_number":224,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"4017c5ca-d98e-4afb-bd4c-4e7d9f8e069c","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":224,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"9bd76760-a07b-4b0c-b70c-a9153eb279cb","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"b8dfc3f6-d721-4676-a254-22995bf0509e","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":224,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"da8b38a6-b0a5-426a-ade9-be7b769cb664","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":224,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"a69e24cc-add4-4a9c-81ab-238b43804ddf","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"e7e0973f-c436-4b0f-9c3e-f5ac666891f6","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":224,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"4c8068ad-97ad-4655-ba46-88538135679a","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":224,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"7f0456d2-85e7-49f6-b30e-6b8af9068d8a","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"ca82e4d3-d2f5-46aa-baba-d2ecc9978d6b","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":224,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"7f4c523a-361c-4e5a-bd56-0c6de4434604","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"3e32f3b3-bbb0-4982-aa02-2e38651e7c74","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":224,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"b1a6d0b8-35be-443f-b45e-7f3d9c7412a1","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":224,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"a83b3c06-6bfa-4f43-a1cb-8867021fcd6b","block_type":"box","text":"25","page_number":224,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"1d5dc21b-798b-4d75-938f-7fa6ee8a76a5","block_type":"box","text":"The dedicated team does not suppor t shareholder proposals that seek to constrain board or management","page_number":224,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"06589492-bde7-46b8-a92c-9889e1bfa419","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":224,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"c321dbe5-45f0-4b74-86f9-9ca21bd6d373","block_type":"box","text":"RELATED MATTERS","page_number":224,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"7c2ae7fe-ba94-4dcd-9362-0dcc247355e5","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":224,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"58a14a93-ad18-4386-bfa3-75d007520684","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. Under these Guidelines, the dedicated team engages,","page_number":224,"box":{"x":69,"y":670,"width":808,"height":11}},{"id":"f06aa501-8031-46e5-9eba-e4abc0abbde1","block_type":"box","text":"where appropriate, to enhance its understanding of a company’s approach. 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Some companies, in light of their long-term strategy, may decide to include relevant","page_number":224,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"63e528eb-08aa-4c7a-8a24-84fa2d28a55d","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":224,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"0c13fcc8-a571-4152-bbd6-cc7b76141f23","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":224,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"d18e89fc-14b7-4ccd-a744-a6cc6f5d1550","block_type":"box","text":"24","page_number":224,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"d7a964cb-b757-4367-ad05-5c4630d8da32","block_type":"box","text":"While the dedicated team may escalate voting by not suppor ting additional management proposals, principally","page_number":224,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"2f56b9b6-1b5f-4614-b324-4df2ea57f5b8","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":224,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"3dfb55c6-b0d7-4f40-9d46-3d81f993330f","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. The dedicated team will continue to take a","page_number":224,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"fab79dba-14b8-488d-bae7-bb463090babc","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":224,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"1bf7ee52-3833-49da-958e-ea034dbddb22","block_type":"box","text":"25","page_number":224,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"a5549824-f5fc-42f2-a491-229035540aba","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":224,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"42e1f773-5e34-4b8d-8389-692e2d8920a3","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":224,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"b91f6057-629e-4151-84e7-044ad811888d","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"2d2b01d5-b378-47f5-9a87-0649fcde31f2","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":224,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"1791d547-57ad-4b29-bbec-8f85a3ffbf8e","block_type":"box","text":"NM0926U-5977728-224/232","page_number":224,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a1f91a48-bcbf-4af5-8bd6-aa97795c826d","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":225,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"91857f4c-2552-49a5-9d05-736e36daf085","block_type":"box","text":"strategy and risk management.","page_number":225,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"643df827-de77-4dcc-ba5f-ad28a825df82","block_type":"box","text":"Auditors and audit-related issues","page_number":225,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"4c1297de-25fc-4cf2-88f1-e7fdf0ec2744","block_type":"box","text":"For companies with material climate or transition risks or oppor tunities in their business models, the dedicated","page_number":225,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"e03b7b56-6d78-4c6b-8934-897146df7cde","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":225,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"05d97baa-8cba-4956-943c-82dc1ccacb0f","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":225,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"13df8edb-8e0e-45d4-989b-08825be7a686","block_type":"box","text":"context of its audit repor t. The team notes that assurance of corporate disclosures related to climate risk and the","page_number":225,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"3e544f02-68c1-4ef2-ba73-e55d95faaf34","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":225,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"36d3d7fd-cea5-48d5-b233-3b370a40cbc3","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":225,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"e0af3081-a9a3-402e-9486-2419dcec6b78","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":225,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"5df14b56-cc71-4182-8e31-554477fa8a80","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":225,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"aefb6dcd-a45d-4763-83fa-6ce08adc5c9a","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":225,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"45dccb92-8057-4ce6-ae3d-ff6101cee2ae","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":225,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"dd448927-d4a0-4096-beab-479f5b8e7648","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":225,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"385d26af-601b-4bcf-a4ff-d60c7ae320c3","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":225,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"dae1a0d7-35a7-4e4d-a2d3-e75702cd8cfc","block_type":"box","text":"sustainability-related risks and oppor tunities that may be relevant to a company’s business model and long-term","page_number":225,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"27ff6cd8-315a-4f05-b8fb-644e3f59996c","block_type":"box","text":"financial per formance. These include a company’s impacts or dependencies on natural capital and key","page_number":225,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"ec105479-afba-4101-99fa-6bee1c502bcc","block_type":"box","text":"stakeholders.","page_number":225,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"3101f6c1-1285-43cb-8371-02386018f93d","block_type":"box","text":"26","page_number":225,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"e6ce9d77-c497-48b4-b6c5-04f7759dbcbc","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":225,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"e6bda279-9777-4fa8-a237-390b704bcc9c","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":225,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"2e9eb62b-6624-4d7f-a2da-0208df7e75a6","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":225,"box":{"x":69,"y":400,"width":832,"height":11}},{"id":"f4121774-6680-4c64-8a37-d2cd16c5e8f8","block_type":"box","text":"team may engage companies that face risks and oppor tunities related to land use and deforestation, access to fresh","page_number":225,"box":{"x":68,"y":415,"width":838,"height":11}},{"id":"341274eb-a1c4-4a8e-adc9-a6103cf51835","block_type":"box","text":"water, or the ability to secure scarce resources critical to the transition to a low-carbon economy.","page_number":225,"box":{"x":68,"y":430,"width":690,"height":11}},{"id":"27d5117f-39f3-433c-bef0-cec755e0e451","block_type":"box","text":"26","page_number":225,"box":{"x":69,"y":475,"width":9,"height":4}},{"id":"ebd12028-717e-4450-8aea-1991ae9b27ca","block_type":"box","text":"Engagement with companies on these issues is informed by BIS’ commentaries on natural capital, human capital","page_number":225,"box":{"x":84,"y":474,"width":807,"height":12}},{"id":"7a3f9aca-df9d-4bdc-8276-8922bcf06853","block_type":"box","text":"management, and corporate human rights risks, December 2025.","page_number":225,"box":{"x":69,"y":490,"width":468,"height":11}},{"id":"0092a09f-6b42-476c-a336-7d9a196eb203","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"dbf7981e-87b7-4ba3-90c4-0496f8e04c82","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 9","page_number":225,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"61bb996a-d2f7-4119-93b2-4f1ab0032dfc","block_type":"box","text":"NM0926U-5977728-225/232","page_number":225,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"63ff7ae7-9037-4575-abe0-5f30c8400862","block_type":"box","text":"Appendix 1","page_number":226,"box":{"x":68,"y":45,"width":82,"height":11}},{"id":"a8252331-27e1-412b-8208-2031b95748a8","block_type":"box","text":"Terminology","page_number":226,"box":{"x":68,"y":75,"width":87,"height":11}},{"id":"fc51a481-0aa6-4a41-b120-43c9f6963201","block_type":"box","text":"We understand the key concepts referred to within these Guidelines as follows:","page_number":226,"box":{"x":101,"y":98,"width":565,"height":11}},{"id":"46a5dc4f-6c1c-4c93-8c19-fa767ca19e23","block_type":"box","text":"Climate risk:","page_number":226,"box":{"x":101,"y":120,"width":92,"height":9}},{"id":"5a8a3c96-85e7-4322-9873-dd229c683014","block_type":"box","text":"Includes physical risk, the increased risk to companies’ assets and activities caused by the direct","page_number":226,"box":{"x":200,"y":120,"width":698,"height":11}},{"id":"d469155d-bd16-4fe7-8e49-6ddcd2c3d3a0","block_type":"box","text":"impact of changing weather patterns and natural catastrophes, and transition risk, the impact of the transition to a","page_number":226,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"d3e841d9-f25c-48cc-9c94-f8a7263401dc","block_type":"box","text":"low-carbon economy on a company’s long-term profitability.","page_number":226,"box":{"x":70,"y":150,"width":416,"height":12}},{"id":"8f242e84-1db5-4ceb-b7d3-504c9f0d8221","block_type":"box","text":"Transition to a low-carbon economy (“low-carbon transition”):","page_number":226,"box":{"x":101,"y":173,"width":449,"height":11}},{"id":"44ca1756-e63d-4c80-b40a-5a89e1d7bb37","block_type":"box","text":"The global economic shift toward lower","page_number":226,"box":{"x":556,"y":173,"width":278,"height":11}},{"id":"3a217cb8-879c-4ef8-9c1d-2c9e05067103","block_type":"box","text":"emissions across many sectors and business models. The economic transformation is being driven by changes in","page_number":226,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"69bbbd24-8201-4206-bd0f-afca3749d230","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":226,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"7d05c353-2ace-41fe-955e-e1d7e603d27c","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and por tfolios.","page_number":226,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"b57de30a-f18f-47d9-aa76-f1461183b6c1","block_type":"box","text":"Decarbonization:","page_number":226,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"eb666ab6-e40e-4960-b118-1c022944522b","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":226,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"6c07e252-1c93-47eb-be12-54606fb74f5b","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":226,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"feffd428-97a4-4542-b0ba-5d82b7d84703","block_type":"box","text":"individual consumers. 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