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Leshaw 650 Newport Center Drive Newport Beach CA 92660 From time to time after the effective date of this Registration Statement. false true true false true false false false false false true Yes false false false true false <div style="line-height:12.0pt;margin-top:2pt;text-align:left"> <div style="margin-top:2pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The following table is intended to assist investors in understanding the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fees and expenses (annualized) that an investor in Common Shares of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund would bear, directly or indirectly, as a result of an offering. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">table reflects the use of leverage attributable to the Fund's reverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repurchase agreements averaged over the period ended December 31, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">2025 in an amount equal to 9.00% of the Fund's average total </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">managed assets, including the assets attributable to such leverage (or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">9.89% of the Fund's average total net assets attributable to Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shares) and shows Fund expenses as a percentage of net assets </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">attributable to Common Shares. The percentages above do not reflect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s use of other forms of economic leverage, such as credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">default swaps or other derivative instruments. The table and example </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">below are based on the Fund’s capital structure as of December 31, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">2025. The extent of the Fund’s assets attributable to leverage following </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">an offering, and the Fund’s associated expenses, are likely to vary </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(perhaps significantly) from these assumptions.</div></div> </div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left"> <div style="margin-top:6pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Shareholder Transaction Expenses:</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;"> </div></div></div> </div> <div style="margin-top:0.0pt"> <table cellpadding="0" cellspacing="0" style="text-align:start; empty-cells: show; width: 260pt;"> <tr style="height:9.5pt"> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:239.91pt"> <div style="line-height:8.0pt;text-align:left"> <div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Sales load (as a percentage of offering price)</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 4.5pt; margin-left: 0pt; position: relative; top: -3pt; letter-spacing: 0px;display:inline;">(1)</div> </div> </div> </td> <td style="padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Top;width:20.09pt"> <div style="line-height:8.0pt;text-align:left"> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;"><div style="-sec-ix-hidden:Fact_166721681;display:inline;">[]</div></div>%</div></div> </div> </td> </tr> <tr style="height:21pt"> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:4.5pt;vertical-align:Top;width:239.91pt"> <div style="line-height:8.0pt;text-align:left"> <div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Offering Expenses Borne by Common Shareholders (as a percentage of offering </div></div> <div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">price)</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 4.5pt; margin-left: 0pt; position: relative; top: -3pt; letter-spacing: 0px;display:inline;">(2)</div> </div> </div> </td> <td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:4.5pt;vertical-align:Top;width:20.09pt"> <div style="line-height:8.0pt;text-align:left"> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;"><div style="-sec-ix-hidden:Fact_166721682;display:inline;">[]</div></div>%</div></div> </div> </td> </tr> <tr style="height:9.5pt"> <td style="border-right: 0.5pt solid rgb(255, 255, 255); padding-bottom: 2.5pt; padding-top: 3.5pt; vertical-align: top; width: 239.91pt;"> <div style="line-height:8.0pt;text-align:left"> <div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Dividend Reinvestment Plan Fees</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 4.5pt; margin-left: 0pt; position: relative; top: -3pt; letter-spacing: 0px;display:inline;">(3)</div> </div> </div> </td> <td style="padding-bottom: 2.5pt; padding-top: 3.5pt; vertical-align: top; width: 20.09pt;"> <div style="line-height:8.0pt;text-align:left"> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">None</div></div> </div> </td> </tr> </table> </div> <div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 5pt; position: relative; top: 0px; letter-spacing: 0px;display:inline;">1</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">In the event that the Common Shares to which this prospectus relates are sold to or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">through underwriters or dealer managers, a corresponding prospectus supplement will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">disclose the applicable sales load and/or commission.</div><div style="clear: both; position: relative; max-height: 0px;"></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 5pt; position: relative; top: 0px; letter-spacing: 0px;display:inline;">2</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">The related prospectus supplement will disclose the estimated amount of offering </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">expenses, the offering price and the offering expenses borne by the Fund and indirectly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">by all of its Common Shareholders as a percentage of the offering price.</div><div style="clear: both; position: relative; max-height: 0px;"></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 5pt; position: relative; top: 0px; letter-spacing: 0px;display:inline;">3</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">You will pay brokerage charges if you direct your broker or the plan agent to sell your </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares that you acquired pursuant to a dividend reinvestment plan. You may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">also pay a pro rata share of brokerage commissions incurred in connection with open </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">market purchases pursuant to the Plan. See “Dividend Reinvestment Plan.”</div><div style="clear: both; position: relative; max-height: 0px;"></div> as a percentage of offering price 0 <div style="line-height:12.0pt;margin-top:6.0pt;text-align:left"> <div style="margin-top:6pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Annual Expenses</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;"> </div></div></div> </div> <div style="line-height:0.0pt;margin-top:6.0pt;text-align:left"> <div style="margin-top:6pt"></div> </div> <div style="margin-top:0.0pt"> <table cellpadding="0" cellspacing="0" style="text-align:start; empty-cells: show; width: 260pt;"> <tr style="height:32pt"> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Bottom;width:152.63pt"> <div style="line-height:0.5pt;text-align:left"> <div style="margin-left: 3pt; margin-right: 2.25pt; text-align: center; white-space: nowrap; font-size: 7pt;"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;"> </div></div></div> </div> </td> <td style="padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Bottom;width:107.37pt"> <div style="line-height:7.5pt;text-align:left"> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Percentage of Net Assets</div></div></div> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Attributable to Common Shares</div></div></div> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">(reflecting leverage attributable to</div></div></div> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">reverse repurchase agreements)</div></div></div> </div> </td> </tr> <tr style="height:13pt"> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:4.5pt;vertical-align:Top;width:152.63pt"> <div style="line-height:8.0pt;text-align:left"> <div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Management Fees</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 4.5pt; margin-left: 0pt; position: relative; top: -3pt; letter-spacing: 0px;display:inline;">(1)</div> </div> </div> </td> <td style="padding-bottom:3.5pt;padding-top:4.5pt;vertical-align:Top;width:107.37pt"> <div style="line-height:8.0pt;text-align:left"> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0.81%</div></div> </div> </td> </tr> <tr style="height:12pt"> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:152.63pt"> <div style="line-height:8.0pt;text-align:left"> <div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Interest Payments on Borrowed Funds</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 4.5pt; margin-left: 0pt; position: relative; top: -3pt; letter-spacing: 0px;display:inline;">(2)</div> </div> </div> </td> <td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:107.37pt"> <div style="line-height:8.0pt;text-align:left"> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0.46%</div></div> </div> </td> </tr> <tr style="height:12pt"> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:152.63pt"> <div style="line-height:8.0pt;text-align:left"> <div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Other Expenses</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 4.5pt; margin-left: 0pt; position: relative; top: -3pt; letter-spacing: 0px;display:inline;">(3)</div> </div> </div> </td> <td style="padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:107.37pt"> <div style="line-height:8.0pt;text-align:left"> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0.02%</div></div> </div> </td> </tr> <tr style="height:9.5pt"> <td style="width: 152.63pt; padding-top: 3.5pt; padding-bottom: 2.5pt; vertical-align: top; border-right-color: rgb(255, 255, 255); border-right-width: 0.5pt; border-right-style: solid; background-color: rgb(236, 246, 248);"> <div style="text-align: left; line-height: 8pt;"> <div style="text-align: left; margin-right: 2.25pt; margin-left: 3pt; white-space: nowrap;"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Total Annual Expenses</div><div style="top: -3pt; color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 4.5pt; margin-left: 0pt; position: relative; letter-spacing: 0px;display:inline;">(4)</div> </div> </div> </td> <td style="background-color:#ECF6F8;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:107.37pt"> <div style="line-height:8.0pt;text-align:left"> <div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">1.29%</div></div> </div> </td> </tr> </table> </div> <div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 5pt; position: relative; top: 0px; letter-spacing: 0px;display:inline;">1</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;"></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Management Fees include fees payable to the Investment Manager for advisory </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">services and for supervisory, administrative and other services. The Fund pays for the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">advisory, supervisory and administrative services it requires under what is essentially </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">an all-in fee structure (the “unified management fee”). Pursuant to an investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">management agreement, PIMCO is paid a Management Fee of 0.81% of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">average daily net assets (including daily net assets attributable to any preferred shares </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">of the Fund that may be outstanding). The Fund (and not PIMCO) will be responsible </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">for certain fees and expenses, which are reflected in the table above, that are not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">covered by the management fee under the investment management agreement. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Please see “Management of the Fund– Investment Management Agreement” for an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">explanation of the unified management fee and a definition of “daily net assets.”</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;"></div><div style="clear: both; position: relative; max-height: 0px;"></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 5pt; position: relative; top: 0px; letter-spacing: 0px;display:inline;">2</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Reflects the Fund’s use of leverage in the form of reverse repurchase agreements </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">averaged over the period ended December 31, 2025, which represented 9.00% of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Fund's average total managed assets, including the assets attributable to leverage (or </div><div style="clear: both; position: relative; max-height: 0px;"></div><div style="line-height:10.0pt;margin-left:10pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">9.89% of the Fund's average net assets attributable to Common Shares), as of that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">date, at an annual interest rate cost to the Fund of 4.45%, which is the weighted </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">average interest rate cost during the fiscal year ended June 30, 2025. See “Use of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Leverage—Effects of Leverage.” The actual amount of interest expense borne by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Fund will vary over time in accordance with the level of the Fund’s use of reverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">repurchase agreements, dollar rolls/buybacks and/or borrowings and variations in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">market interest rates. Borrowing expense is required to be treated as an expense of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Fund for accounting purposes. Any associated income or gains (or losses) realized from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">leverage obtained through such instruments is not reflected in the Annual Expenses </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">table above, but would be reflected in the Fund’s performance results.</div></div> <div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 5pt; position: relative; top: 0px; letter-spacing: 0px;display:inline;">3</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;"></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">“Other Expenses” are estimated for the Fund’s current fiscal year ending June 30, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">2026.</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;"></div><div style="clear: both; position: relative; max-height: 0px;"></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 5pt; position: relative; top: 0px; letter-spacing: 0px;display:inline;">4</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">“Interest Payments on Borrowed Funds” are borne by the Fund separately from the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">management fees paid to PIMCO. Excluding these expenses, Total Annual Expenses are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">0.83%.</div><div style="clear: both; position: relative; max-height: 0px;"></div> 0.0081 0.0046 0.0002 0.0129 <div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Management Fees include fees payable to the Investment Manager for advisory </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">services and for supervisory, administrative and other services. The Fund pays for the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">advisory, supervisory and administrative services it requires under what is essentially </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">an all-in fee structure (the “unified management fee”). Pursuant to an investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">management agreement, PIMCO is paid a Management Fee of 0.81% of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">average daily net assets (including daily net assets attributable to any preferred shares </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">of the Fund that may be outstanding). The Fund (and not PIMCO) will be responsible </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">for certain fees and expenses, which are reflected in the table above, that are not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">covered by the management fee under the investment management agreement. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Please see “Management of the Fund– Investment Management Agreement” for an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">explanation of the unified management fee and a definition of “daily net assets.”</div> <div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">“Other Expenses” are estimated for the Fund’s current fiscal year ending June 30, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">2026.</div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left"> <div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Example</div></div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The following example illustrates the expenses that you would pay on a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">$1,000 investment in Common Shares of the Fund assuming (1) that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s net assets do not increase or decrease, (2) that the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">incurs total annual expenses of 1.29% of net assets attributable to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares in years 1 through 10 (assuming assets attributable to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reverse repurchase agreements representing 9.00% of the Fund’s total </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">managed assets) and (3) a 5% annual return</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 6.5pt; position: relative; top: -4.25pt; letter-spacing: 0px;display:inline;">(1)</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">:</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div> </div> <div style="line-height:0.0pt;margin-top:6pt;text-align:left"> <div style="margin-top:6pt"></div> </div> <div style="margin-top:0.0pt"> <table cellpadding="0" cellspacing="0" style="text-align:start; empty-cells: show; width: 260pt;"> <tr style="height:8.5pt"> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Bottom;width:132.84pt"> <div style="line-height:0.5pt;text-align:left"> <div style="margin-left: 3pt; margin-right: 5.75pt; text-align: center; white-space: nowrap; font-size: 7pt;"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;"> </div></div></div> </div> </td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Bottom;width:29.55pt"> <div style="line-height:7pt;text-align:left"> <div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">1 Year</div></div></div> </div> </td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Bottom;width:32.32pt"> <div style="line-height:7pt;text-align:left"> <div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">3 Years</div></div></div> </div> </td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Bottom;width:32.32pt"> <div style="line-height:7pt;text-align:left"> <div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">5 Years</div></div></div> </div> </td> <td style="padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Bottom;width:32.96pt"> <div style="line-height:7pt;text-align:left"> <div style="margin-left:5.75pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">10 Years</div></div></div> </div> </td> </tr> <tr style="height:9pt"> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:132.84pt"> <div style="line-height:7.5pt;text-align:left"> <div style="margin-left:3pt;margin-right:5.75pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Total Expenses Incurred</div></div> </div> </td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:29.55pt"> <div style="line-height:7.5pt;text-align:left"> <div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$13</div></div> </div> </td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:32.32pt"> <div style="line-height:7.5pt;text-align:left"> <div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$41</div></div> </div> </td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:32.32pt"> <div style="line-height:7.5pt;text-align:left"> <div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$71</div></div> </div> </td> <td style="background-color:#ECF6F8;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:32.96pt"> <div style="line-height:7.5pt;text-align:left"> <div style="margin-left:5.75pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$155</div></div> </div> </td> </tr> </table> </div> <div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 5pt; position: relative; top: 0px; letter-spacing: 0px;display:inline;">(1)</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">The example above should not be considered a representation of future </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">expenses. Actual expenses may be higher or lower than those shown.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;"> The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">example assumes that the estimated Interest Payments on Borrowed Funds and Other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Expenses set forth in the Annual Expenses table are accurate, that the rate listed under </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Total Annual Expenses remains the same each year and that all dividends and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">distributions are reinvested at NAV. Actual expenses may be greater or less than those </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">assumed. Moreover, the Fund’s actual rate of return may be greater or less than the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">hypothetical 5% annual return shown in the example. The example does not include </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">commissions or estimated offering expenses, which would cause the expenses shown </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">in the example to increase. In connection with an offering of Common Shares, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">prospectus supplement will set forth an example including sales load and estimated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">offering costs.</div><div style="clear: both; position: relative; max-height: 0px;"></div> 13 41 71 155 <div style="line-height:14.0pt;margin-top:10pt;text-align:left"> <div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Investment Objectives and Policies</div></div></div> </div> <div style="line-height:12.0pt;margin-top:2pt;text-align:left"> <div style="margin-top:2pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">When used in this prospectus, the term “invest” includes both direct </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">investing and indirect investing and the term “investments” includes </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">both direct investments and indirect investments. For example, the Fund </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">may invest indirectly by investing in derivatives or through Subsidiaries. </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">References herein to the Fund include, as appropriate, Subsidiaries </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">through which the Fund may gain exposure to investments. The Fund </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">may be exposed to the different types of investments described below </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">through its investments in its Subsidiaries. The allocation of the Fund’s </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">assets to a Subsidiary, if any, will vary over time and will likely not </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">include all of the different types of investments described herein at any </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">given time.</div></div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s primary investment objective is to seek high current income. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Capital preservation and appreciation are secondary objectives. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund seeks to achieve its investment objectives by utilizing a dynamic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset allocation strategy among multiple fixed income sectors in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">global credit markets, including corporate debt (including, among other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">things, fixed-, variable- and floating-rate bonds, bank loans, convertible </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities and stressed debt securities issued by U.S. or foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(non-U.S.) corporations or other business entities, including emerging </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market issuers), mortgage related and other asset-backed securities, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">government and sovereign debt, taxable municipal bonds and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fixed-, variable- and floating-rate income-producing securities of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. and foreign issuers, including emerging market issuers. The Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may invest in investment grade debt securities and below investment </div></div> </div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">grade debt securities (commonly referred to as “high yield” securities or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“junk bonds”), including securities of stressed, distressed and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">defaulted issuers. The types of securities and instruments in which the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may invest are summarized under “Portfolio Contents” below. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund cannot assure you that it will achieve its investment objectives or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that the Fund's investment program will be successful, and you could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lose all of your investment in the Fund.</div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund cannot change its investment objectives without the approval </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the holders of a “majority of the outstanding” Common Shares and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any preferred shares outstanding voting together as a single class, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the holders of a “majority of the outstanding” preferred shares voting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as a separate class. A “majority of the outstanding” shares (whether </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">voting together as a single class or voting as a separate class) means (i) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">67% or more of such shares present at a meeting, if the holders of more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">than 50% of those shares are present or represented by proxy, or (ii) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more than 50% of such shares, whichever is less.</div></div> </div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left"> <div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Portfolio Management Strategies</div></div></div> </div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left"> <div style="margin-top:6pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Dynamic Allocation Strategy.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In managing the Fund, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investment Manager employs an active approach to allocation among </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">multiple fixed income sectors based on, among other things, market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions, valuation assessments, economic outlook, credit market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">trends and other economic factors. With PIMCO’s macroeconomic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">analysis as the basis for top-down investment decisions, including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">geographic and credit sector emphasis, PIMCO manages the Fund with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a focus on seeking income generating investment ideas across multiple </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fixed income sectors, including opportunities in developed and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">emerging global credit markets. PIMCO may choose to focus on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particular countries/regions, asset classes, industries and sectors to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exclusion of others at any time and from time to time based on market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions and other factors. For example, subject to the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment policies and limitations, the Fund may invest a substantial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portion of its total assets in mortgage-related and other asset backed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities, which investments PIMCO may choose to increase or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decrease, or eliminate entirely, over time and from time to time. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">relative value assessment within fixed income sectors draws on PIMCO’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regional and sector specialist insights. The Fund will observe various </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment guidelines as summarized below.</div></div> </div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left"> <div style="margin-top:6pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Investment Selection Strategies.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Once the Fund’s top-down, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio positioning decisions have been made as described above, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO selects particular investments for the Fund by employing a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bottom-up, disciplined credit approach which is driven by fundamental, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">independent research within each sector/asset class represented in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund, with a focus on identifying securities and other instruments with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">solid and/or improving fundamentals.</div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO utilizes strategies that focus on credit quality analysis, duration </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">management and other risk management techniques. PIMCO attempts </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to identify, through fundamental research driven by independent credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">analysis and proprietary analytical tools, debt obligations and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income producing securities that provide current income and/or </div></div> </div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">opportunities for capital appreciation based on its analysis of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuer’s credit characteristics and the position of the security in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuer’s capital structure.</div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Consideration of yield is only one component of the portfolio managers’ </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">approach in managing the Fund. PIMCO attempts to identify </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments that may appreciate in value based on PIMCO’s assessment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the issuer’s credit characteristics, forecast for interest rates and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">outlook for particular countries/regions, currencies, industries, sectors </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and the global economy and bond markets generally.</div></div> </div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left"> <div style="margin-top:6pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Credit Quality.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in debt instruments that are, at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the time of purchase, rated below investment grade, or that are unrated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">but determined to be of comparable quality. The Fund will not normally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invest more than 20% of its total assets in debt instruments, other than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related and other asset-backed securities, that are, at the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">time of purchase, rated CCC+ or lower by S&amp;P and Fitch and Caa1 or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lower by Moody’s, or that are unrated but determined by PIMCO to be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of comparable quality to securities so rated. The Fund may invest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">without limitation in mortgage-related and other asset-backed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities regardless of rating (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, of any credit quality). Subject to this </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">20% restriction, the Fund may invest in issuers of any credit quality </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(including bonds in the lowest ratings categories or that are unrated). </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may also invest up to 5% of its total assets in defaulted bonds </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">except that the Fund may invest in mortgage-related and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset-backed securities without regard to this limit, subject to the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other investment policies. For purposes of applying the foregoing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">policies, in the case of securities with split ratings (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, a security </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">receiving two different ratings from two different rating agencies), the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund will apply the higher of the applicable ratings. Subject to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">aforementioned investment guidelines, the Fund may invest in securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of stressed, distressed and/or defaulted issuers, which include securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in default as to the repayment of principal and/or interest at the time of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">acquisition by the Fund or that are rated in the lower rating categories </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by one or more nationally recognized statistical rating organizations (for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">example, Ca or lower by Moody’s or CC or lower by S&amp;P or Fitch) or, if </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unrated, are determined by PIMCO to be of comparable quality. Debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments of below investment grade quality, and in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">debtor-in-possession financings, are regarded as having predominantly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">speculative characteristics with respect to capacity to pay interest and to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repay principal, and are commonly referred to as “high yield” securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or “junk bonds.” Debt instruments in the lowest investment grade </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">category also may be considered to possess some speculative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">characteristics. The Fund may, for hedging, investment or leveraging </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purposes, make use of credit default swaps (which includes buying </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and/or selling credit default swaps), which are contracts whereby one </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">party makes periodic payments to a counterparty in exchange for the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">right to receive from the counterparty a payment equal to the par (or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other agreed-upon) value of a referenced debt obligation in the event of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a default or other credit event by the issuer of the debt obligation.</div></div> </div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left"> <div style="margin-top:6pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Independent Credit Analysis.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO relies primarily on its own </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">analysis of the credit quality and risks associated with individual debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments considered for the Fund, rather than relying exclusively on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rating agencies or third-party research. The Fund’s portfolio managers </div></div> </div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">utilize this information in an attempt to manage credit risk and/or to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">identify issuers, industries and sectors that are undervalued or that offer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">attractive yields relative to PIMCO’s assessment of their credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">characteristics. This aspect of PIMCO’s capabilities will be particularly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">important to the extent that the Fund invests in high yield securities and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in securities of emerging market issuers.</div></div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left"> <div style="margin-top:6pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Duration Management.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">It is expected that the Fund normally will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have a short to intermediate average portfolio duration (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, within a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">zero to eight (0 to 8) year range), as calculated by PIMCO, although it </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be shorter or longer at any time depending on market conditions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other factors. While the Fund seeks to maintain a short to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intermediate average portfolio duration, there is no limit on the maturity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or duration of any individual security in which the Fund may invest. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Duration is a measure used to determine the sensitivity of a security’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">price to changes in interest rates. For example, if the Fund has an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">average portfolio duration of eight years, a 1% increase in interest rates </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">would tend to correspond to an 8% decrease in the value of the Fund's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">debt portfolio. The Fund's duration strategy may entail maintaining a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">negative average portfolio duration from time to time, meaning the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio would tend to increase in value in response to an increase in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates. For example, if the Fund has a negative average portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">duration, a 1% increase in interest rates would tend to correspond to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">1% increase in the value of the Fund's debt portfolio for every year of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">negative duration. A negative average portfolio duration would </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potentially benefit the Fund’s portfolio in an environment of rising </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market interest rates, but would generally adversely impact the portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in an environment of falling or neutral market interest rates. See </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“Principal Risks of the Fund—Interest Rate Risk.” The Fund may use </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">various derivatives strategies to manage (increase or decrease) the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dollar-weighted average effective duration of the Fund’s portfolio. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO may also utilize certain strategies, including without limitation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments in structured notes or interest rate futures contracts or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">swap, cap, floor or collar transactions, for the purpose of reducing the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rate sensitivity of the Fund’s portfolio, although there is no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assurance that it will do so or that such strategies will be successful. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">foregoing is a description of interest rate duration management only. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The credit spread duration of the Fund’s portfolio may vary, in some </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cases significantly, from its interest rate duration.</div></div> </div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left"> <div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Use of Leverage</div></div></div> </div> <div style="line-height:12.0pt;margin-top:2pt;text-align:left"> <div style="margin-top:2pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund currently utilizes leverage principally through reverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repurchase agreements, and may also obtain additional leverage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">through dollar rolls/buybacks or borrowings, such as through bank loans </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or commercial paper and/or credit facilities. The Fund may also enter </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">into transactions other than those noted above that may give rise to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">form of leverage including, among others, futures and forward contracts </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(including foreign currency exchange contracts), total return swaps and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other derivative transactions, loans of portfolio securities, short sales, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when-issued, delayed delivery and forward commitment transactions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and selling credit default swaps. The Fund may also determine to issue </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">preferred shares or other types of senior securities to add leverage to its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio. The Fund’s Board may authorize the issuance of preferred </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shares without the approval of Common Shareholders. If the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issues preferred shares in the future, all costs and expenses relating to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the issuance and ongoing maintenance of the preferred shares will be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">borne by the Common Shareholders, and these costs and expenses may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be significant. Leveraging transactions pursued by the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increase its duration and sensitivity to interest rate movements.</div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Depending upon market conditions and other factors, the Fund may or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may not determine to add leverage following an offering to maintain or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increase the total amount of leverage (as a percentage of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">total assets) that the Fund currently maintains, taking into account the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">additional assets raised through the issuance of Common Shares in such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">offering. The Fund may utilize leverage opportunistically and may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">choose to increase or decrease, or eliminate entirely, its use of such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leverage over time and from time to time based on PIMCO’s assessment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the yield curve environment, interest rate trends, market conditions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other factors. If the Fund determines to add leverage following an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">offering, it is not possible to predict with accuracy the precise amount of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leverage that would be added, in part because it is not possible to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">predict the number of Common Shares that ultimately will be sold in an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">offering or series of offerings. To the extent that the Fund does not add </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">additional leverage following an offering, the Fund’s total amount of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leverage as a percentage of its total assets will decrease, which could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result in a reduction of investment income available for distribution to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shareholders.</div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund is subject to the 1940 Act requirement that an investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">company satisfy an asset coverage requirement of 300% of its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">indebtedness measured at the time the investment company incurs the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">indebtedness. This means that at any given time the value of the Fund's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">total indebtedness may not exceed one-third the value of its total assets </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(including assets attributable to such leverage). The interests of persons </div></div> </div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with whom the Fund enters into leverage arrangements will not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">necessarily be aligned with the interests of the Fund's shareholders and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such persons will have claims on the Fund’s assets that are senior to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">those of the Fund’s shareholders.</div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Under the 1940 Act, the Fund is currently not permitted to issue </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">preferred shares unless immediately after such issuance the value of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s total net assets is at least 200% of the liquidation value of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s preferred shares plus the aggregate amount of any senior </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities of the Fund representing indebtedness (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, such liquidation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value plus the aggregate amount of senior securities representing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">indebtedness may not exceed 50% of the Fund’s total net assets). In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, for so long as the Fund has preferred shares outstanding, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund will not be permitted to declare any cash dividend or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distribution on its Common Shares unless, at the time of such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">declaration, the value of the Fund’s total net assets, after giving effect to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such cash dividend or other distribution, satisfies the above-referenced </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">200% coverage requirement.</div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may enter into derivatives or other transactions that may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provide leverage (other than through the issuance of preferred shares or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bank borrowing). Rule 18f-4 under the 1940 Act (the “Derivatives </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Rule”) regulates a registered investment company's use of derivatives </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and certain other transactions that create future payment and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">delivery obligations by the Fund. The Derivatives Rule prescribes specific </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value-at-risk (“VaR”) leverage limits that apply to the Fund (although </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund in the future could qualify as a limited derivatives user (as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">defined in the Derivatives Rule) and would therefore not be subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">all of the requirements of the Derivatives Rule). VaR is an estimate of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potential losses on an instrument or portfolio over a specified time </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">horizon and at a given confidence level. The Fund may apply a relative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">VaR test or an absolute VaR test (if the Fund's derivatives risk manager </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">determines that a designated reference portfolio would not provide an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">appropriate reference portfolio for purposes of the relative VaR test). The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limit under the relative VaR test when a fund has no outstanding </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">preferred shares is 200% (or 250% when a fund has preferred shares </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">outstanding) of the VaR of a designated reference portfolio, which, very </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally, may be a designated unleveraged index or the Fund's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities portfolio excluding derivatives. If applicable, the limit under </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the absolute VaR test when a fund has no outstanding preferred shares </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">is 20% (or 25% when a fund has preferred shares outstanding) of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of a fund's net assets. The Derivatives Rule also generally requires </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund to appoint a derivatives risk manager, maintain a derivatives </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk management program (“DRMP”) designed to identify, assess, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reasonably manage the risks associated with transactions covered by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the rule, and abide by certain board and other reporting obligations and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">recordkeeping requirements. With respect to reverse repurchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">agreements or other similar financing transactions in particular, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Derivatives Rule permits a fund to enter into such transactions if the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fund either (i) complies with the asset coverage requirements of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Section 18 of the 1940 Act, and combines the aggregate amount of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">indebtedness associated with all reverse repurchase agreements and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">similar financing with the aggregate amount of any other senior </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities representing indebtedness when calculating the relevant asset </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">coverage ratio, or (ii) treats all reverse repurchase agreements and </div></div> </div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">similar financing transactions as derivatives transactions for all purposes </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">under the Derivatives Rule. The Fund has adopted procedures for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investing in derivatives and other transactions in compliance with the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Derivatives Rule. Compliance with the Derivatives Rule could adversely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affect the value or performance of the Fund. Limits or restrictions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">applicable to the counterparties or issuers, as applicable, with which the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may engage in derivative transactions could also limit or prevent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund from using certain instruments.</div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Leveraging is a speculative technique and there are special risks and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">costs involved. There is no assurance that the Fund will utilize reverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repurchase agreements, credit default swaps, dollar rolls/buybacks or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">borrowings, issue preferred shares or utilize any other forms of leverage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(such as the use of derivatives strategies). If used, there can be no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assurance that the Fund’s leveraging strategies will result in a higher </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">yield on your Common Shares. When leverage is used, the NAV and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market price of the Common Shares and the yield to Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders will be more volatile. See “Principal Risks of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund—Leverage Risk.” In addition, dividend, interest and other costs </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and expenses borne by the Fund with respect to its use of reverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repurchase agreements, credit default swaps, total return swaps, dollar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rolls/buybacks, borrowings, preferred shares or any other forms of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leverage are borne by the Common Shareholders and result in a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reduction of the NAV of the Common Shares. In addition, because the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fees received by the Investment Manager are based on the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">average daily “total managed assets” (including any assets attributable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to any reverse repurchase agreements, dollar rolls/buybacks, borrowings </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and preferred shares that may be outstanding) minus accrued liabilities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(other than liabilities representing reverse repurchase agreements, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dollar rolls/buybacks and borrowings), the Investment Manager has a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial incentive for the Fund to use certain forms of leverage (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">e.g.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reverse repurchase agreements, dollar rolls/buybacks, borrowings and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">preferred shares), which may create a conflict of interest between the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investment Manager, on the one hand, and the Common Shareholders, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on the other hand. Leverage transactions pursued by the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increase its duration and sensitivity of the value of the Fund’s portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to interest rate movements.</div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund also may borrow money for temporary purposes, to add </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leverage to the portfolio or for the settlement of securities transactions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which otherwise might require untimely dispositions of portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities held by the Fund.</div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Please see “Use of Leverage” and “Principal Risks of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund—Leverage Risk” in the body of this prospectus for additional </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">information regarding leverage and related risks.</div></div> </div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"> <div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Effects of Lev<div style="letter-spacing: 0px; top: 0px;display:inline;">er</div>a<div style="letter-spacing: 0px; top: 0px;display:inline;">ge</div></div></div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The following table is furnished in response to requirements of the SEC. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">It is designed to illustrate the effects of leverage through the use of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">senior securities, as that term is defined under Section 18 of the 1940 </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Act, on Common Share total return, assuming investment portfolio total </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">returns (consisting of income and changes in the value of investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">held in the Fund’s portfolio) of -10%, -5%, 0%, 5% and 10%. Although </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund does not currently have a class of senior securities </div></div> </div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">outstanding, the table below reflects the Fund’s continued use of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reverse repurchase <div style="display:inline;">agreements</div> over the period ended December 31, 2025 </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">representing approximately 9.00% of the Fund's average total </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">managed assets (including assets attributable to reverse repurchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">agreements) at an estimated annual effective interest expense rate of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">4.45% payable by the Fund on such instruments (based on market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions averaged over the period ended December 31, 2025). Based </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on such estimated annual effective interest expense rate, the annual </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">return that the Fund’s portfolio must experience (net of expenses) in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">order to cover such costs of the reverse repurchase agreements is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">0.40%. The information below does not reflect the Fund’s use of certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other forms of economic leverage achieved through the use of other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments or transactions not considered to be senior securities under </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the 1940 Act, such as credit default swaps or other derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments.</div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The assumed investment portfolio returns in the table below are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hypothetical figures and are not necessarily indicative of the investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio returns experienced or expected to be experienced by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund. Your actual returns may be greater or less than those appearing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">below. In addition, the actual borrowing expenses associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reverse repurchase agreements (or dollar rolls/buybacks or borrowings, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">if any) used by the Fund may vary frequently and may be significantly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">higher or lower than the rate used for the example below.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div> </div> <div style="margin-top:0.0pt"> <table cellpadding="0" cellspacing="0" style="text-align:start; border-bottom:0.5pt solid #00687D;empty-cells:show;width:260pt"> <tr style="height:21.5pt"> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:108.62pt"> <div style="line-height:7.5pt;text-align:left"> <div style="margin-left:3pt;margin-right:4pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Assumed Return on Portfolio (Net of </div></div> <div style="margin-left:3pt;margin-right:4pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Expenses)</div></div> </div> </td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:34.19pt"> <div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:26.19pt"> <div style="display:flex;margin:auto;width:28.19pt"> <div style="display:flex;white-space:nowrap;width:28.19pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">(10.00)%</div></div> </div> </div> </td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:30.59pt"> <div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:22.59pt"> <div style="display:flex;margin:auto;width:24.59pt"> <div style="display:flex;white-space:nowrap;width:24.59pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">(5.00)%</div></div> </div> </div> </td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:30.59pt"> <div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:22.59pt"> <div style="display:flex;margin:auto;width:24.59pt"> <div style="display:flex;white-space:nowrap;width:24.59pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 1.94pt; letter-spacing: 0px; top: 0px;display:inline;">0.00%</div></div> </div> </div> </td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:26.71pt"> <div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:18.71pt"> <div style="display:flex;margin:auto;width:20.71pt"> <div style="display:flex;white-space:nowrap;width:20.71pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">5.00%</div></div> </div> </div> </td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:29.31pt"> <div style="line-height:7.5pt;margin-left:4pt;margin-right:1.5pt;text-align:right;width:22.31pt"> <div style="display:flex;margin:auto;width:24.31pt"> <div style="display:flex;white-space:nowrap;width:24.31pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">10.00%</div></div> </div> </div> </td> </tr> <tr style="height:16pt"> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:108.62pt"> <div style="line-height:7.5pt;text-align:left"> <div style="margin-left:3pt;margin-right:4pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Corresponding Return to Common </div></div> <div style="margin-left:3pt;margin-right:4pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders</div></div> </div> </td> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:34.19pt"> <div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:26.19pt"> <div style="display:flex;margin:auto;width:28.19pt"> <div style="display:flex;white-space:nowrap;width:28.19pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">(11.43)%</div></div> </div> </div> </td> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:30.59pt"> <div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:22.59pt"> <div style="display:flex;margin:auto;width:24.59pt"> <div style="display:flex;white-space:nowrap;width:24.59pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">(5.93)%</div></div> </div> </div> </td> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:30.59pt"> <div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:22.59pt"> <div style="display:flex;margin:auto;width:24.59pt"> <div style="display:flex;white-space:nowrap;width:24.59pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">(0.44)%</div></div> </div> </div> </td> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:26.71pt"> <div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:18.71pt"> <div style="display:flex;margin:auto;width:20.71pt"> <div style="display:flex;white-space:nowrap;width:20.71pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">5.05%</div></div> </div> </div> </td> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:29.31pt"> <div style="line-height:7.5pt;margin-left:4pt;margin-right:1.5pt;text-align:right;width:22.31pt"> <div style="display:flex;margin:auto;width:24.31pt"> <div style="display:flex;white-space:nowrap;width:24.31pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">10.55%</div></div> </div> </div> </td> </tr> </table> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Share total return is composed of two elements — the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Share dividends paid by the Fund (the amount of which is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">largely determined by the net investment income of the Fund after </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">paying dividends on any preferred shares issued by the Fund and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses on any forms of leverage outstanding) and gains or losses on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the value of the securities and other instruments the Fund owns. As </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required by SEC rules, the table assumes that the Fund is more likely to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">suffer capital losses than to enjoy capital appreciation. For example, to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assume a portfolio total return of 0%, the Fund must assume that the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income it receives on its investments is entirely offset by losses in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of those investments. This table reflects hypothetical performance </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the Fund’s portfolio and not the actual performance of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares, the value of which is determined by market forces and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other factors.</div></div> </div> <div style="line-height:12.0pt;margin-top:4.0pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Should the Fund elect to add additional leverage to its portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">following an offering, any benefits of such additional leverage cannot </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be fully achieved until the proceeds resulting from the use of such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leverage have been received by the Fund and invested in accordance </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with the Fund’s investment objectives and policies. As noted above, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s willingness to use additional leverage, and the extent to which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leverage is used at any time, will depend on many factors, including, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">among other things, PIMCO’s assessment of the yield curve </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">environment, interest rate trends, market conditions and other factors.</div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The following table is furnished in response to requirements of the SEC. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">It is designed to illustrate the effects of leverage through the use of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">senior securities, as that term is defined under Section 18 of the 1940 </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Act, on Common Share total return, assuming investment portfolio total </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">returns (consisting of income and changes in the value of investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">held in the Fund’s portfolio) of -10%, -5%, 0%, 5% and 10%. Although </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund does not currently have a class of senior securities </div></div> </div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">outstanding, the table below reflects the Fund’s continued use of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reverse repurchase <div style="display:inline;">agreements</div> over the period ended December 31, 2025 </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">representing approximately 9.00% of the Fund's average total </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">managed assets (including assets attributable to reverse repurchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">agreements) at an estimated annual effective interest expense rate of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">4.45% payable by the Fund on such instruments (based on market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions averaged over the period ended December 31, 2025). Based </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on such estimated annual effective interest expense rate, the annual </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">return that the Fund’s portfolio must experience (net of expenses) in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">order to cover such costs of the reverse repurchase agreements is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">0.40%. The information below does not reflect the Fund’s use of certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other forms of economic leverage achieved through the use of other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments or transactions not considered to be senior securities under </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the 1940 Act, such as credit default swaps or other derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments.</div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The assumed investment portfolio returns in the table below are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hypothetical figures and are not necessarily indicative of the investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio returns experienced or expected to be experienced by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund. Your actual returns may be greater or less than those appearing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">below. In addition, the actual borrowing expenses associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reverse repurchase agreements (or dollar rolls/buybacks or borrowings, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">if any) used by the Fund may vary frequently and may be significantly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">higher or lower than the rate used for the example below.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The following table is furnished in response to requirements of the SEC. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">It is designed to illustrate the effects of leverage through the use of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">senior securities, as that term is defined under Section 18 of the 1940 </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Act, on Common Share total return, assuming investment portfolio total </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">returns (consisting of income and changes in the value of investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">held in the Fund’s portfolio) of -10%, -5%, 0%, 5% and 10%. Although </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund does not currently have a class of senior securities </div></div> </div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">outstanding, the table below reflects the Fund’s continued use of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reverse repurchase <div style="display:inline;">agreements</div> over the period ended December 31, 2025 </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">representing approximately 9.00% of the Fund's average total </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">managed assets (including assets attributable to reverse repurchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">agreements) at an estimated annual effective interest expense rate of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">4.45% payable by the Fund on such instruments (based on market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions averaged over the period ended December 31, 2025). Based </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on such estimated annual effective interest expense rate, the annual </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">return that the Fund’s portfolio must experience (net of expenses) in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">order to cover such costs of the reverse repurchase agreements is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">0.40%. The information below does not reflect the Fund’s use of certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other forms of economic leverage achieved through the use of other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments or transactions not considered to be senior securities under </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the 1940 Act, such as credit default swaps or other derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments.</div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The assumed investment portfolio returns in the table below are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hypothetical figures and are not necessarily indicative of the investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio returns experienced or expected to be experienced by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund. Your actual returns may be greater or less than those appearing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">below. In addition, the actual borrowing expenses associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reverse repurchase agreements (or dollar rolls/buybacks or borrowings, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">if any) used by the Fund may vary frequently and may be significantly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">higher or lower than the rate used for the example below.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div> </div> <table cellpadding="0" cellspacing="0" style="text-align:start; border-bottom:0.5pt solid #00687D;empty-cells:show;width:260pt"> <tr style="height:21.5pt"> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:108.62pt"> <div style="line-height:7.5pt;text-align:left"> <div style="margin-left:3pt;margin-right:4pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Assumed Return on Portfolio (Net of </div></div> <div style="margin-left:3pt;margin-right:4pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Expenses)</div></div> </div> </td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:34.19pt"> <div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:26.19pt"> <div style="display:flex;margin:auto;width:28.19pt"> <div style="display:flex;white-space:nowrap;width:28.19pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">(10.00)%</div></div> </div> </div> </td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:30.59pt"> <div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:22.59pt"> <div style="display:flex;margin:auto;width:24.59pt"> <div style="display:flex;white-space:nowrap;width:24.59pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">(5.00)%</div></div> </div> </div> </td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:30.59pt"> <div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:22.59pt"> <div style="display:flex;margin:auto;width:24.59pt"> <div style="display:flex;white-space:nowrap;width:24.59pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 1.94pt; letter-spacing: 0px; top: 0px;display:inline;">0.00%</div></div> </div> </div> </td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:26.71pt"> <div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:18.71pt"> <div style="display:flex;margin:auto;width:20.71pt"> <div style="display:flex;white-space:nowrap;width:20.71pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">5.00%</div></div> </div> </div> </td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:29.31pt"> <div style="line-height:7.5pt;margin-left:4pt;margin-right:1.5pt;text-align:right;width:22.31pt"> <div style="display:flex;margin:auto;width:24.31pt"> <div style="display:flex;white-space:nowrap;width:24.31pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">10.00%</div></div> </div> </div> </td> </tr> <tr style="height:16pt"> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:108.62pt"> <div style="line-height:7.5pt;text-align:left"> <div style="margin-left:3pt;margin-right:4pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Corresponding Return to Common </div></div> <div style="margin-left:3pt;margin-right:4pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders</div></div> </div> </td> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:34.19pt"> <div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:26.19pt"> <div style="display:flex;margin:auto;width:28.19pt"> <div style="display:flex;white-space:nowrap;width:28.19pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">(11.43)%</div></div> </div> </div> </td> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:30.59pt"> <div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:22.59pt"> <div style="display:flex;margin:auto;width:24.59pt"> <div style="display:flex;white-space:nowrap;width:24.59pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">(5.93)%</div></div> </div> </div> </td> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:30.59pt"> <div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:22.59pt"> <div style="display:flex;margin:auto;width:24.59pt"> <div style="display:flex;white-space:nowrap;width:24.59pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">(0.44)%</div></div> </div> </div> </td> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:26.71pt"> <div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:18.71pt"> <div style="display:flex;margin:auto;width:20.71pt"> <div style="display:flex;white-space:nowrap;width:20.71pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">5.05%</div></div> </div> </div> </td> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:29.31pt"> <div style="line-height:7.5pt;margin-left:4pt;margin-right:1.5pt;text-align:right;width:22.31pt"> <div style="display:flex;margin:auto;width:24.31pt"> <div style="display:flex;white-space:nowrap;width:24.31pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">10.55%</div></div> </div> </div> </td> </tr> </table> -0.1143 -0.0593 -0.0044 0.0505 0.1055 <div style="line-height:14.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Principal Risks of the Fund</div></div></div> <div style="line-height:12.0pt;margin-top:2pt;text-align:left"> <div style="margin-top:2pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund is subject to the principal risks noted below, whether through </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s direct investments, investments by its Subsidiaries, or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives positions.</div></div> </div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"> <div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Market Discount Risk</div></div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The price of the Fund’s Common Shares will fluctuate with market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions and other factors. If you sell your Common Shares, the price </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">received may be more or less than your original investment. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares are designed for long-term investors and should not be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">treated as trading vehicles. Shares of closed-end management </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment companies frequently trade at a discount from their NAV. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares may trade at a price that is less than the offering price </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for Common Shares issued pursuant to an offering. This risk may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">greater for investors who sell their Common Shares relatively shortly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">after completion of an offering. The sale of Common Shares by the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(or the perception that such sales may occur), particularly if sold at a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">discount to the then current market price of the Common Shares, may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have an adverse effect on the market price of the Common Shares.</div></div> </div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"> <div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Market Risk</div></div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The market price of securities owned by the Fund may fluctuate, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sometimes rapidly or unpredictably. Securities may decline in value due </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to a variety of factors affecting (or perceiving to affect) securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">markets generally or particular industries, sectors or companies </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">represented in the securities markets. The value of a security may decline </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">due to general market conditions that are not specifically related to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particular company, such as real or perceived adverse economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions, changes in the general outlook for corporate earnings, levels </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of public debt and deficits, changes in inflation, interest or currency </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rates, financial system instability, adverse changes to credit markets or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adverse investor sentiment generally. The value of a security may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decline due to factors that affect a particular industry or industries, such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as labor shortages or increased production costs and competitive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions within an industry. During a general downturn in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities markets, multiple asset classes may decline in value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">simultaneously even if the performance of those asset classes is not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise historically correlated. Investments may also be negatively </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impacted by market disruptions and by attempts by other market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participants to manipulate the prices of particular investments. Equity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities generally have greater price volatility than fixed income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities. Credit ratings downgrades may also negatively affect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities held by the Fund. Even when markets perform well, there is no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assurance that the investments held by the Fund will increase in value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">along with the broader market.</div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, market risk includes the risk that geopolitical and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">events will disrupt the economy on a national or global level. For </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instance, actual or threatened war or military conflict, terrorism, social </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unrest, recessions, supply chain disruptions, market manipulation, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">government defaults, government shutdowns, political and regulatory </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes, diplomatic developments or the imposition of sanctions and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other similar measures, including the imposition of tariffs, or other </div></div> </div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. economic policies and any related public health emergencies (such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as the spread of infectious diseases, pandemics and epidemics), </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">natural/environmental disasters or events, climate-change and climate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">related events can all negatively impact the securities markets, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could cause the Fund to lose value. This includes reliance on global </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">supply chains that are susceptible to disruptions resulting from, among </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other things, war and other armed conflicts, tariffs, extreme weather </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">events, and natural disasters. These events could reduce consumer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">demand or economic output, result in market closures, changes in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates, inflation/deflation, travel restrictions or quarantines, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significantly adversely impact the economy.</div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">As computing technology and data analytics continually advance there </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">has been an increasing trend towards machine driven and artificially </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intelligent trading systems, particularly providing such systems with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increasing levels of autonomy in trading decisions. Regulators of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial markets have become increasingly focused on the potential </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact of artificial intelligence on investment activities and may issue </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulations that are intended to affect the use of artificial technology in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">trading activities. Any such regulations may not have the intended effect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on financial markets. Moreover, advancements in artificial intelligence </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other technologies may suffer from the introduction of errors, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">defects or security vulnerabilities which can go undetected. Issues in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">construction and implementation of AI systems and models (including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">software issues, issues related to the use of artificial intelligence and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">machine learning (AI), and other technological issues) may adversely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact the Fund. AI systems may contain design flaws or faulty </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assumptions, rely on incomplete or inaccurate data inputs, and may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficult to interpret or audit.</div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The domestic political environment, as well as political and diplomatic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">events within the United States and abroad, such as the U.S. budget and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deficit reduction plan and foreign policy tensions with foreign nations, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including embargoes, tariffs, sanctions, trade wars, and other similar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">developments, has in the past resulted, and may in the future result, in a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">government shutdown or otherwise adversely affect the U.S. regulatory </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">landscape, the general market environment and/or investor sentiment, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which could have an adverse impact on the Fund’s investments and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operations. Additional and/or prolonged U.S. federal government </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shutdowns, U.S. foreign policy, the imposition of tariffs, or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. economic policies and any related domestic and/or geopolitical </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tensions may affect investor and consumer confidence and may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely impact financial markets and the broader economy, perhaps </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">suddenly and to a significant degree. Governmental and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">quasi-governmental authorities and regulators throughout the world </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have previously responded to serious economic disruptions with a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">variety of significant fiscal and monetary policy changes, including but </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not limited to, direct capital infusions into companies, new monetary </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">programs and dramatically lower interest rates. An unexpected or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sudden reversal of these policies, or the ineffectiveness of these policies, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could increase volatility in securities markets, which could adversely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affect the Fund’s investments. Any market disruptions could also prevent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund from executing advantageous investment decisions in a timely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">manner. To the extent that the Fund has focused its investments in a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">region enduring geopolitical market disruption will face higher risks of </div></div> </div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loss. Thus, investors should closely monitor current market conditions to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">determine whether the Fund meets their individual financial needs and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tolerance for risk.</div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">When inflationary price movements occur, fixed income securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">markets may experience heightened levels of interest rate, volatility and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidity risk. Interest rate increases in the future could cause the value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of a fund that invests in fixed income securities to decrease, which could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">force the Fund to liquidate investments at disadvantageous times or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prices, therefore adversely affecting the Fund and its shareholders. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Higher interest rates generally lower the values of real estate-related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assets. When this does not occur as expected, it presents an increased </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk of a correction or severe downturn in real estate-related asset </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prices, which could, by extension, adversely impact the value of other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments (such as loans, securitized debt and other fixed income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities). Such an impact could materialize in one real estate sector </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and not another, or in a different manner in different real estate sectors. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Examples of the risks faced by real estate-related assets include: tenant </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">vacancy rates, increased tenant turnover and tenant concentration; </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">general real estate headwinds, including delinquencies and difficulties in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collecting rents and other payments (which increases the risk of owners </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">being unable to pay or otherwise defaulting on their own borrowings </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and obligations); decreases in property values; increases in inflation, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">upkeep costs and other expenses; fluctuations in rents; and increased </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">concentration in ownership of certain types of properties.</div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Exchanges and securities markets may close early, close late or issue </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">trading halts on specific securities, which may result in, among other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">things, the Fund being unable to buy or sell certain securities or financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments at an advantageous time or accurately price its portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments. In addition, the Fund may rely on various third-party </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sources to calculate its NAV. As a result, the Fund is subject to certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operational risks associated with reliance on service providers and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">service providers' data sources. In particular, errors or systems failures </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other technological issues may adversely impact the Fund's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">calculation of its NAV, and such NAV calculation issues may result in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inaccurately calculated NAV, delays in NAV calculation and/or the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inability to calculate NAVs over extended periods. The Fund may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unable to recover any losses associated with such failures.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div> </div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"> <div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Asset Allocation Risk</div></div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investment performance depends upon how its assets are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">allocated and reallocated. A principal risk of investing in the Fund is that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO may make less than optimal or poor asset allocation decisions, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which could result in the Fund being underweight or overweight in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sectors, asset classes, or geographies that perform differently than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expected. PIMCO employs an active approach to allocation among </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">multiple fixed income sectors, but there is no guarantee that such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">allocation techniques will produce the desired results. It is possible that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO will focus on an investment that performs poorly or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">underperforms other investments under various market conditions. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund could experience losses as a result of these allocation decisions, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which could result in the Fund being underweight or overweight in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sectors, asset classes, or geographies that perform differently than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expected.</div></div> </div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Management Risk</div></div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund is subject to management risk because it is an actively </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">managed investment portfolio. PIMCO will apply investment techniques </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and risk analysis and may, in some cases, use proprietary models that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are developed and maintained by PIMCO in making investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decisions for the Fund, or may determine that certain factors are more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significant than others. There can be no guarantee that these decisions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will produce the desired results or that the due diligence conducted by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO will expose all material risks associated with an investment. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Additionally, PIMCO may not be able to identify suitable investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">opportunities and may face competition from other investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">managers when identifying and consummating certain investments, or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may determine that certain factors are more significant than others. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain securities or other instruments in which the Fund seeks to invest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may not be available in the quantities desired, including in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">circumstances where other funds for which PIMCO acts as investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adviser, including funds with names, investment objectives and policies, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and/or portfolio management teams, similar to the Fund, are seeking to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invest in the same or similar securities or instruments. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulatory restrictions, actual or perceived conflicts of interest or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">considerations may cause PIMCO to restrict or prohibit participation in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain investments. In such circumstances, PIMCO may determine to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchase other securities or instruments as substitutes. Such substitute </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities or instruments may not perform as intended, which could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result in losses to the Fund. To the extent the Fund employs strategies </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">targeting perceived pricing inefficiencies, arbitrage strategies or similar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strategies, it is subject to the risk that the pricing or valuation of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities and instruments involved in such strategies may change </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unexpectedly, which may result in reduced returns or losses to the Fund. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Additionally, legislative, regulatory or tax developments may adversely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affect management of the Fund.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund is also subject to the risk that deficiencies in the internal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">systems or controls of PIMCO or another service provider will cause </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">losses for the Fund or hinder Fund operations. For example, trading </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">delays or errors (both human and systemic) could prevent the Fund from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchasing a security expected to appreciate in value. Please refer to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“Portfolio Managers - Conflicts of Interest” in the SAI for further </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">information. Additionally, actual or perceived conflicts of interest may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affect the investment techniques available to PIMCO in connection with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">managing the Fund, may cause PIMCO to restrict or prohibit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participation in certain investments and may also adversely affect the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability of the Fund to achieve its investment objectives. There also can be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">no assurance that all of the personnel of PIMCO will continue to be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with PIMCO for any length of time. The loss of the services of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">one or more key employees of PIMCO could have an adverse impact on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s ability to realize its investment objectives.</div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, the Fund may rely on various third-party sources to calculate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its NAV. As a result, the Fund is subject to certain operational risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with reliance on service providers and service providers’ data </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sources. In particular, errors or systems failures and other technological </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issues may adversely impact the Fund’s calculations of its NAV, and such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">NAV calculation issues may result in inaccurately calculated NAVs, </div></div> </div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">delays in NAV calculation and/or the inability to calculate NAVs over </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extended periods. The Fund may be unable to recover any losses </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with such failures.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Issuer Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The value of a security may decline for a number of reasons that directly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">relate to the issuer, such as management performance, major litigation, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investigations or other controversies, changes in the issuer’s financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">condition or credit rating, changes in government regulations affecting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the issuer or its competitive environment and strategic initiatives such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as mergers, acquisitions or dispositions and the market response to any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such initiatives, financial leverage, reputation or reduced demand for the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuer’s goods or services, as well as the historical and prospective </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">earnings of the issuer and the value of its assets. A change in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial condition of a single issuer may affect one or more other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuers or securities markets as a whole. These risks can apply to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares issued by the Fund and to the issuers of securities and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other instruments in which the Fund invests.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Interest Rate Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Interest rate risk is the risk that fixed income securities and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments in the Fund’s portfolio will fluctuate in value because of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes, or the anticipation of changes, in interest rates. Factors </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including central bank monetary policy, rising inflation rates, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in general economic conditions may cause interest rates to rise, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which could cause the value of the Fund’s investments to decline. For </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">example, as nominal interest rates rise, the value of certain securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">held by the Fund is likely to decrease. Interest rate changes can be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sudden and unpredictable, and the Fund may experience losses as a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result of movements in interest rates. The Fund may not be able to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hedge against changes in interest rates or may choose not to do so for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cost or other reasons. In addition, any hedges may not work as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intended.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fixed income securities with longer durations tend to be more sensitive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to changes in interest rates, usually making them more volatile than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities with shorter durations. The values of equity and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-fixed income securities may also decline due to fluctuations. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Duration is a measure used to determine the sensitivity of a security’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">price to changes in interest rates that incorporates a security’s yield, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">coupon, final maturity and call features, among other characteristics.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Duration is useful primarily as a measure of the sensitivity of a fixed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income security’s market price to interest rate (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, yield) movements. All </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other things remaining equal, for each one percentage point increase in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates, the value of a portfolio of fixed income investments would </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally be expected to decline by one percent for every year of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio’s average duration above zero. For example, the value of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio of fixed income securities with an average duration of eight </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">years would generally be expected to decline by approximately 8% if </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates rose by one percentage point.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Dividend-paying equity securities, particularly those whose market price </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">is closely related to their yield, may be more sensitive to changes in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates. During periods of rising interest rates, the values of such </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities may decline and may result in losses to the Fund. Variable and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">floating rate securities generally are less sensitive to interest rate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes but may decline in value if their interest rates do not rise as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">much, or as quickly, as interest rates in general. Conversely, floating rate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities will not generally increase in value if interest rates decline.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Inverse floating rate securities may decrease in value if interest rates </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increase. Inverse floating rate securities may also exhibit greater price </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">volatility than a fixed rate obligation with similar credit quality. When </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund holds variable or floating rate securities, a decrease (or, in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">case of inverse floating rate securities, an increase) in market interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rates will adversely affect the income received from such securities and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the NAV of the Fund’s shares.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">A wide variety of factors can cause interest rates or yields of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. Treasury securities (or yields of other types of bonds) to rise, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including but not limited to central bank monetary policies, changing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inflation or real growth rates, general economic conditions, increasing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bond issuances or reduced market demand for low yielding investments. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Risks associated with changes in interest rates may be heightened </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">under certain market conditions, such as during times when the Federal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Reserve raises interest rates or when such rates remain elevated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">following a period of historically low levels. Additionally, the U.S. and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other governments have increased, and are likely to continue increasing, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">their debt issuances, which may also heighten these risks. There is the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk that the income generated by investments may not keep pace with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inflation. Actions by governments and central banking authorities can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result in increases or decreases in interest rates. Periods of higher </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inflation could cause such authorities to raise interest rates, which may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely affect the Fund and its investments. In addition, changes in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">monetary policy may exacerbate the risks associated with changing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates. Further, in market environments where interest rates are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rising, issuers may be less willing or able to make principal and interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments on fixed-income investments when due.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">During periods of very low or negative interest rates, the Fund may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unable to maintain positive returns. Very low or negative interest rates </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may magnify interest rate risk. Changing interest rates, including rates </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that fall below zero, may have unpredictable effects on markets, may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result in heightened market volatility and may detract from Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">performance to the extent the Fund is exposed to such interest rates.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Measures such as average duration may not accurately reflect the true </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rate sensitivity of the Fund. This is especially the case if the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consists of securities with widely varying durations. Therefore, if the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund has an average duration that suggests a certain level of interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate risk, the Fund may in fact be subject to greater interest rate risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">than the average would suggest. This risk is greater to the extent the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund uses leverage or derivatives in connection with the management </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the Fund, which would be magnified in the event that initial or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">variation margin is not provided by the counterparty to such transaction </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(or not provided below a certain threshold amount).</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Convexity is an additional measure used to understand a security's or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund's interest rate sensitivity. Convexity measures the rate of change of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">duration in response to changes in interest rates. With respect to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">security’s price, a larger convexity (positive or negative) may imply more </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dramatic price changes in response to changing interest rates. Convexity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be positive or negative. Negative convexity implies that interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate increases result in increased duration and vice versa, meaning </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increased sensitivity in prices in response to changes in interest rates.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Thus, securities with negative convexity, which may include bonds with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">traditional call features and certain mortgage-backed securities, may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">experience greater losses in periods of rising interest rates. Accordingly, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">if the Fund holds such securities, the Fund may be subject to a greater </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk of losses in periods of rising interest rates.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Credit Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund could experience losses if the issuer or guarantor of a fixed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income security (including a security purchased with securities lending </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collateral), the counterparty to a derivatives contract, or the issuer or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">guarantor of collateral, repurchase agreement or a loan of portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities is unable or unwilling, or is perceived (whether by market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participants, rating agencies, pricing services or otherwise) as unable or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unwilling, to make timely principal and/or interest payments or to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise honor its financial obligations. The risk that such issuer, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">guarantor or counterparty is less willing or able to do so is heightened </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in market environments where interest rates are changing, notably </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when rates are rising. The downgrade of the credit rating of a security or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the issuer of a security held by the Fund may decrease its value. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Measures such as average credit quality may not accurately reflect the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">true credit risk of the Fund. This is especially the case if the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consists of securities with widely varying credit ratings. Securities are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to varying degrees of credit risk, which are often reflected in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">credit ratings. This risk is greater to the extent the Fund uses leverage or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives in connection with the management of the Fund, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">would be magnified in the event that initial or variation margin is not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provided by the counterparty to such transaction (or not provided below </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a certain threshold amount). Rising or high interest rates may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deteriorate the credit quality of an issuer or counterparty, particularly if </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">an issuer or counterparty faces challenges rolling or refinancing its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations. The Fund’s investments may be adversely affected if any of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the issuers it is invested in are subject to an actual or perceived </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(whether by market participants, rating agencies, pricing services or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise) deterioration to their credit quality.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Credit risk includes credit spread risk, which is the risk that credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">spreads (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, the difference in yield between securities that is due to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">differences in their actual or perceived credit quality) may increase when </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the market believes that investments generally have a greater risk of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">default. Increasing credit spreads may reduce the market values of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s investments. Credit spreads often increase more for lower rated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and unrated securities than for investment grade securities. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when credit spreads increase, reductions in market value will generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be greater for longer-maturity securities. Further, credit spread duration </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(a measure of credit spread risk) can vary significantly from interest rate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">duration (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">e.g.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, for floating rate debt securities, credit spread duration </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">typically will be higher than interest rate duration). The Fund may add </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">credit spread duration to its portfolio, for example through the use of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">e.g.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, credit default swaps), even while it has lower interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate duration. The credit spread duration of the Fund’s portfolio may </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">vary, in some cases significantly, from its interest rate duration. All </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">descriptions of duration in this prospectus refer to interest rate duration </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unless otherwise noted.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Mortgage-Related and Other Asset-Backed Instruments Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The mortgage-related assets in which the Fund may invest include, but </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are not limited to, any security, instrument or other asset that is related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to U.S. or non-U.S. mortgages, including those issued by private </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">originators or issuers, or issued or guaranteed as to principal or interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by the U.S. government or its agencies or instrumentalities or by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-U.S. governments or authorities, such as, without limitation, assets </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">representing interests in, collateralized or backed by, or whose values </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are determined in whole or in part by reference to any number of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgages or pools of mortgages or the payment experience of such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgages or pools of mortgages, including REMICs, which could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">include Re-REMICs, mortgage pass-through securities, inverse floaters, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">CMOs, CLOs, multi-class pass-through securities, private mortgage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pass-through securities, stripped mortgage securities (generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest-only and principal-only securities), mortgage-related asset </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">backed securities and mortgage-related loans (including through </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participations, assignments, originations and whole loans), including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commercial and residential mortgage loans. Exposures to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related assets through derivatives or other financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments will be considered investments in mortgage-related assets.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may also invest in other types of asset-backed securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(“ABS”), including CDOs, CBOs and CLOs and other similarly structured </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Mortgage-related and other asset-backed instruments represent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interests in “pools” of mortgages or other assets such as consumer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans or receivables held in trust and often involve risks that are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">different from or possibly more acute than risks associated with other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">types of debt instruments.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Generally, rising interest rates tend to extend the duration of fixed rate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related assets, making them more sensitive to changes in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates. Compared to other fixed income investments with similar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">maturity and credit, mortgage-related securities may increase in value to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a lesser extent when interest rates decline and may decline in value to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">similar or greater extent when interest rates rise. As a result, in a period </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of rising interest rates, the Fund may exhibit additional volatility since </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">individual mortgage holders are less likely to exercise prepayment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">options, thereby putting additional downward pressure on the value of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these securities and potentially causing the Fund to experience losses. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">This is known as extension risk. Mortgage-backed securities can be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">highly sensitive to rising interest rates, such that even small movements </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">can cause the Fund to lose value. Mortgage-backed securities, and in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particular those not backed by a government guarantee, are subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">credit risk. When interest rates decline, borrowers may pay off their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgages sooner than expected. This can reduce the returns of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund because the Fund may have to reinvest that money at the lower </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prevailing interest rates. In addition, the creditworthiness, servicing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">practices, and financial viability of the servicers of the underlying </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage pools present significant risks. For instance, a servicer may be </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to make advances in respect of delinquent loans underlying the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related securities; however, servicers experiencing financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficulties may not be able to perform these obligations. Additionally, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">both mortgage-related securities and asset-backed securities are subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to risks associated with fraud or negligence by, or defalcation of, their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">servicers. These securities are also subject to the risks of the underlying </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans. In some circumstances, a servicer’s or originator’s mishandling of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">documentation related to the underlying collateral (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">e.g.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, failure to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properly document a security interest in the underlying collateral) may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affect the rights of security holders in and to the underlying collateral. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, the underlying loans may have been extended pursuant to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inappropriate underwriting guidelines, to no underwriting guidelines at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">all, or to fraudulent origination practices. The owner of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed security’s ability to recover against the sponsor, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">servicer or originator is uncertain and is often limited. The Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments in other asset-backed instruments are subject to risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">similar to those associated with mortgage-related assets, as well as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">additional risks associated with the nature of the assets and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">servicing of those assets. Payment of principal and interest on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset-backed instruments may be largely dependent upon the cash </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">flows generated by the assets backing the instruments, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset-backed instruments may not have the benefit of any security </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest in the related assets.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Subordinate mortgage-backed or asset-backed instruments are paid </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest only to the extent that there are funds available to make </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments. To the extent the collateral pool includes a large percentage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of delinquent loans, there is a risk that interest payments on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subordinate mortgage-backed or asset-backed instruments will not be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fully paid.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There are multiple tranches of mortgage-backed and asset-backed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments, offering investors various maturity and credit risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">characteristics. For example, tranches may be categorized as senior, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mezzanine, and subordinated/equity or “first loss.” The most senior </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tranche of a mortgage-backed or asset-backed instrument generally has </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the greatest collateralization and generally pays the lowest interest rate. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">If there are defaults or the collateral otherwise underperforms, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">scheduled payments to senior tranches generally take precedence over </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">those of mezzanine tranches, and scheduled payments to mezzanine </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tranches take precedence over those to subordinated/equity tranches. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Lower tranches represent lower degrees of credit quality and pay higher </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates intended to compensate for the attendant risks. The return </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on the lower tranches is especially sensitive to the rate of defaults in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collateral pool. The lowest tranche (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, the ”equity“ or ”residual“ </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tranche) generally specifically receives the residual interest payments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, money that is left over after the higher tranches have been paid </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and expenses of the issuing entities have been paid) rather than a fixed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rate. The Fund may also invest in the residual or equity tranches </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of mortgage-related and other asset-backed instruments, which may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">referred to as subordinate mortgage-backed or asset-backed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments and interest-only mortgage-backed or asset-backed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments. The Fund expects that investments in subordinate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed and other asset-backed instruments will be subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risks arising from delinquencies and foreclosures, thereby exposing its </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment portfolio to potential losses. Subordinate securities of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed and other asset-backed instruments are also subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to greater credit risk than those mortgage-backed or other asset-backed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments that are more highly rated.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The mortgage markets in the United States and in various foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">countries have experienced extreme difficulties in the past that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely affected the performance and market value of certain of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund's mortgage-related investments. Delinquencies and losses on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">residential and commercial mortgage loans (especially subprime and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">second-lien mortgage loans) may increase, and a decline in or flattening </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of housing and other real property values may exacerbate such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">delinquencies and losses. In addition, reduced investor demand for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage loans and mortgage-related securities and increased investor </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">yield requirements have caused limited liquidity in the secondary market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for mortgage-related securities, which can adversely affect the market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of mortgage-related securities. It is possible that such limited </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidity in such secondary markets could continue or worsen.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">With respect to risk retention tranches (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, eligible residual interests </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">initially held by the sponsors of CMBS and other eligible securitizations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pursuant to the U.S. Risk Retention Rules), a third-party purchaser, such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as the Fund, must hold its retained interest, unhedged, for at least five </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">years following the closing of the CMBS transaction, after which it is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">entitled to transfer its interest in the securitization to another person </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that meets the requirements for a third-party purchaser. Even after the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required holding period has expired, due to the generally illiquid nature </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of such investments, no assurance can be given as to what, if any, exit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strategies will ultimately be available for any given position.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, there is limited guidance on the application of the final </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. Risk Retention Rules to specific securitization structures. There can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be no assurance that the applicable federal agencies charged with the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">implementation of the final U.S. Risk Retention Rules (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">e.g.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, the FDIC, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Comptroller of the Currency, the Federal Reserve Board, the SEC, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Department of Housing and Urban Development, and the Federal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Housing Finance Agency) could not take positions in the future that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">differ from the interpretation of such rules taken or embodied in such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securitizations, or that the final U.S. Risk Retention Rules will not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">change.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Furthermore, in situations where the Fund invests in risk retention </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tranches of securitizations structured by third parties, the Fund may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to execute one or more letters or other agreements, the exact </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">form and nature of which will vary (each, a “Risk Retention </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Agreement”) under which it will make certain undertakings designed to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ensure such securitization complies with the U.S. Risk Retention Rules. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Such Risk Retention Agreements may include a variety of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">representations, warranties, covenants and other indemnities, each of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which may run to various transaction parties. If the Fund breaches any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">undertakings in any Risk Retention Agreement, it will be exposed to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">claims by the other parties thereto, including for any losses incurred as a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result of such breach, which could be significant and exceed the value of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s investments. Direct investments in mortgages and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">types of collateral are subject to risks similar (and in some cases to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">greater degree) to those described above.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Mortgage-Related Derivative Instruments Risk</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may engage in derivative transactions related to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed securities, including purchasing and selling </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exchange-listed and OTC put and call options, futures and forwards on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgages and mortgage-backed securities. The Fund may also invest in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed securities credit default swaps, which include swaps </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the reference obligation for which is a mortgage-backed security or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">related index, such as the CMBX Index (a tradeable index referencing a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">basket of commercial mortgage-backed securities) or the ABX (a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tradeable index referencing a basket of sub-prime mortgage-backed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities). The Fund may invest in newly developed mortgage related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives that may hereafter become available.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Derivative mortgage-backed securities (such as principal-only (“POs”), </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest-only (“IOs”) or inverse floating rate securities) are particularly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exposed to call and extension risks. Small changes in mortgage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prepayments can significantly impact the cash flows and the market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of these derivative instruments. In general, the risk of faster than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">anticipated prepayments adversely affects IOs, super floaters and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">premium priced mortgage-backed securities. The risk of slower than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">anticipated prepayments generally affects POs, floating-rate securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to interest rate caps, support tranches and discount priced </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed securities. In addition, particular derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments may be leveraged such that their exposure (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, price </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sensitivity) to interest rate and/or prepayment risk is magnified. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Mortgage-related derivative instruments involve risks associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related and other asset-backed instruments, privately-issued </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related securities, the mortgage market, the real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">industry, derivatives and credit default swaps. See “Mortgage-Related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and Other Asset-Backed Instruments Risk,” “Privately-Issued </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Mortgage-Related Securities Risk,” “Derivatives Risk,” and “Credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Default Swaps Risk.”</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Privately-Issued Mortgage-Related Securities Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There are no direct or indirect government or agency guarantees of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments in pools created by non-governmental issuers. Privately-issued </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related securities are also not subject to the same </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">underwriting requirements for the underlying mortgages that are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">applicable to those mortgage-related securities that have a government </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or government-sponsored entity guarantee.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Privately-issued mortgage-related securities are not traded on an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exchange and there may be a limited market for the securities, especially </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when there is a perceived weakness in the mortgage and real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market sectors. Without an active trading market, mortgage-related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities held in the Fund’s portfolio may be particularly difficult to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value because of the complexities involved in assessing the value of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">underlying mortgage loans.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Additionally, privately-issued mortgage-related securities, such as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">privately-held or non-traded REITs, may bear higher fees than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">publicly-traded REITs. Privately-held REITs generally are exempt from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">registration under the Securities Act and, as such, are not subject to the </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">same disclosure requirements as REITs registered under the Securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Act, which may make privately-held REITs more difficult to evaluate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from an investment perspective.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">High Yield Securities Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To the extent that the Fund invests in high yield securities and unrated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities of similar credit quality (commonly known as “high yield </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities” or “junk bonds”), the Fund may be subject to greater levels </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of market risk, credit risk, call risk and liquidity risk than funds that do </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not invest in such securities, which could have a negative effect on the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">NAV and market price of the Fund’s Common Shares or Common Share </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dividends. High yield securities may be issued by companies that are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">restructuring, are smaller and less creditworthy or are more highly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leveraged or indebted than other companies, or are financially </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distressed, and therefore they typically have more difficulty making </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">scheduled payments of principal and interest than issuers of higher </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rated investments. These securities are considered predominantly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">speculative by rating agencies with respect to an issuer’s continuing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability to make principal and interest payments, and their value may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more volatile than other types of securities. An economic downturn or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">individual issuer developments could adversely affect the market for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these securities and reduce the Fund’s ability to sell these securities at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">an advantageous time or price. An economic downturn could also lead </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to a higher non-payment rate and, a high yield security may lose </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significant market value before a default occurs. The Fund may purchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distressed securities that are in default or the issuers of which are in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bankruptcy, which involve heightened risks.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">High yield securities structured as zero-coupon bonds or pay-in-kind </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities tend to be especially volatile as they are particularly sensitive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to downward pricing pressures from rising interest rates or widening </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">spreads and may require the Fund to make taxable distributions of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">imputed income without receiving the actual cash currency. Issuers of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">high yield securities may have the right to “call” or redeem the issue </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prior to maturity, which may result in the Fund having to reinvest the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">proceeds in other high yield securities or similar instruments that may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pay lower interest rates. The Fund may also be subject to greater levels </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of liquidity risk than funds that do not invest in high yield securities. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Consequently, transactions in high yield securities may involve greater </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">costs than transactions in more actively traded securities. A lack of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">publicly-available information, irregular trading activity and wide </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bid/ask spreads among other factors, may, in certain circumstances, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make high yield debt more difficult to sell at an advantageous time or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">price than other types of securities or instruments. These factors may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result in the Fund being unable to realize full value for these securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and/or may result in the Fund not receiving the proceeds from a sale of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a high yield security for an extended period after such sale, each of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which could result in losses to the Fund. Because of the risks involved in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investing in high yield securities, an investment in the Fund should be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">considered speculative.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In general, lower rated debt securities carry a greater degree of risk that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the issuer will lose its ability to make interest and principal payments, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which could have a negative effect on the Fund. Securities of below </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment grade quality are regarded as having predominantly </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">speculative characteristics with respect to capacity to pay interest and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repay principal and are commonly referred to as “high yield” securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or “junk bonds.” High yield securities involve a greater risk of default </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and their prices are generally more volatile and sensitive to actual or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">perceived negative developments. Debt securities in the lowest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment grade category also may be considered to possess some </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">speculative characteristics by certain rating agencies. The Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchase stressed or distressed securities that are in default or the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuers of which are in bankruptcy, which involve heightened risks.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">An economic downturn could severely affect the ability of issuers </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(particularly those that are highly leveraged) to service or repay their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">debt obligations. Lower-rated securities are generally less liquid than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">higher-rated securities, which may have an adverse effect on the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability to dispose of them. High yield securities are particularly sensitive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to adverse economic, market, industry or issuer-specific developments, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which may result in an increased incidence of default. During periods of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deteriorating economic conditions, such as recessions or periods of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rising unemployment, or changing interest rates (notably increases), </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">high yield securities are particularly susceptible to credit and default risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as delinquencies and losses could increase, and such increases could be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sudden and significant. An economic downturn or individual issuer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">developments could adversely affect the market for these investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and reduce a Fund's ability to sell these investments at an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">advantageous time or price. These types of developments could cause </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">high yield securities to lose significant market value, including before a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">default occurs only at prices lower than if such securities were widely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">traded. In the event of default, the Fund may incur additional expenses </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to seek recovery or to negotiate new terms with a defaulting issuer. To </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the extent the Fund focuses on below investment grade debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations, PIMCO's capabilities in analyzing credit quality and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated risks will be particularly important, and there can be no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assurance that PIMCO will be successful in this regard. Due to the risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">involved in investing in high yield securities, an investment in the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">should be considered speculative.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s credit quality policies apply only at the time a security is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchased, and the Fund is not required to dispose of a security in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">event that a rating agency or PIMCO downgrades its assessment of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">credit characteristics of a particular issue. In determining whether to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">retain or sell such a security, PIMCO may consider factors including, but </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not limited to, PIMCO's assessment of the credit quality of the issuer of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such security, the price at which such security could be sold and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rating, if any, assigned to such security by other rating agencies. Analysis </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of creditworthiness may be more complex for issuers of high yield </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities than for issuers of higher quality debt securities. See “The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund's Investment Objectives and Strategies-Portfolio Contents-High </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Yield Securities” for additional information.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Municipal Bond Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investing in the municipal bond market involves the risks of investing in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">debt securities generally and certain other risks. The amount of public </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">information available about the municipal bonds in which the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invest is generally less than that for corporate equities or bonds, and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment performance of the Fund’s investment in municipal bonds </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may therefore be more dependent on the analytical abilities of PIMCO </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">than its investments in taxable bonds. The secondary market for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">municipal bonds, particularly below investment grade bonds in which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund may invest, also tends to be less well developed or liquid than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">many other securities markets, which may adversely affect the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability to sell municipal bonds at attractive prices or value municipal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bonds.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The ability of municipal issuers to make timely payments of interest and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">principal may be diminished during general economic downturns, by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">litigation, legislation or political events, or by the bankruptcy of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuer. Budgetary constraints of local, state, and federal governments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">upon which the issuers may be relying for funding may also impact </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Municipal Bonds. Laws, referenda, ordinances or regulations enacted in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the future by Congress or state legislatures or the applicable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">governmental entity could extend the time for payment of principal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and/or interest, or impose other constraints on enforcement of such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations, or on the ability of municipal issuers to levy taxes. Issuers of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">municipal securities also might seek protection under the bankruptcy </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">laws. In the event of bankruptcy of such an issuer, the Fund could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">experience delays in collecting principal and interest and the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not, in all circumstances, be able to collect all principal and interest to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which it is entitled. To enforce its rights in the event of a default in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payment of interest or repayment of principal, or both, the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">take possession of and manage the assets securing the issuer's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations on such securities, which may increase the Fund's operating </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses. The differences in priorities, perspectives and economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interests of bondholders and taxpayers or users of facilities financed by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">municipal bonds may affect the remedies available to the Fund in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">event of a default. Adverse economic, business, legal or political </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">developments might affect all or a substantial portion of the Fund's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">municipal bonds in the same manner. The Fund will be particularly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to these risks to the extent that it focuses its investments in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">municipal bonds in a particular state or geographic region. Municipal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities may also have exposure to potential risks resulting from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">climate change and environmental events, including extreme weather, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">flooding, fires and other natural disasters. Climate risks, if materialized, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">can adversely impact a municipal issuer's financial plans in current or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">future years or may impair a funding source for municipal issuer's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">revenue bonds. As a result, the impact of climate risks could adversely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact the value of the Fund's municipal securities investments.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in trust certificates issued in tender option bond </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">programs. In these programs, a trust typically issues two classes of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certificates and uses the proceeds to purchase municipal securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">having relatively long maturities and bearing interest at a fixed interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate substantially higher than prevailing short-term tax-exempt rates. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There is a risk that the Fund will not be considered the owner of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tender option bond for federal income tax purposes, and thus will not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be entitled to treat such interest as exempt from federal income tax.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain tender option bonds may be less liquid or may become less </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquid as a result of, among other things, a credit rating downgrade, a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payment default or a disqualification from tax-exempt status. The Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment in the securities issued by a tender option bond trust may </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">involve greater risk and volatility than an investment in a fixed rate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bond, and the value of such securities may decrease significantly when </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market interest rates increase. Tender option bond trusts could be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">terminated due to market, credit or other events beyond the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">control, which could require the Fund to dispose of portfolio investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">at inopportune times and prices. The Fund may use a tender option </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bond program as a way of achieving leverage in its portfolio, in which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">case the Fund will be subject to leverage risk. The use of tender option </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bonds will impact the Fund's duration and cause the Fund to be subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to increased duration and interest rate risk.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in revenue bonds, which are typically issued to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fund a wide variety of capital projects including electric, gas, water and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sewer systems; highways, bridges and tunnels; port and airport facilities; </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">colleges and universities; and hospitals. Because the principal security </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for a revenue bond is generally the net revenues derived from a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particular facility or group of facilities or, in some cases, from the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">proceeds of a special excise or other specific revenue source or annual </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">revenues, there is no guarantee that the particular project will generate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">enough revenue to pay its obligations, in which case the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">performance may be adversely affected.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in participations in lease obligations or installment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchase contract obligations of municipal authorities or entities.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Although a municipal lease obligation does not constitute a general </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligation of the municipality for which the municipality's taxing power </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">is pledged, a municipal lease obligation is ordinarily backed by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">municipality's covenant to budget for,appropriate and make the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments due under the municipal lease obligation. However, certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">municipal lease obligations contain “non-appropriation” clauses, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provide that the municipality has no obligation to make lease or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">installment purchase payments in future years unless money is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">appropriated for such purpose on a yearly basis. In the case of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“non-appropriation” lease, the Fund's ability to recover under the lease </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in the event of non-appropriation or default will be limited solely to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repossession of the leased property, without recourse to the general </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">credit of the lessee, and the disposition or re-leasing of the property </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">might prove difficult.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Municipal securities are also subject to interest rate, credit, and liquidity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: Arial; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Interest rate risk.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The value of municipal securities, similar to other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fixed income securities, will likely drop as interest rates rise in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">general market. Conversely, when rates decline, bond prices generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rise.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: Arial; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Credit risk.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The risk that a borrower may be unable to make interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or principal payments when they are due. Funds that invest in municipal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities rely on the ability of the issuer to service its debt. This subjects </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund to credit risk in that the municipal issuer may be fiscally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unstable or exposed to large liabilities that could impair its ability to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">honor its financial obligations. Municipal issuers with significant debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">service requirements, in the near-to mid-term; unrated issuers and those </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with less capital and liquidity to absorb additional expenses may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">most at risk. To the extent the Fund invests in lower quality or high yield </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">municipal securities, it may be more sensitive to the adverse credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">events in the municipal market. The treatment of municipalities in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bankruptcy is more uncertain, and potentially more adverse to debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">holders, than for corporate issues.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: Arial; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Liquidity Risk.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The risk that investors may have difficulty finding a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">buyer when they seek to sell, and therefore, may be forced to sell at a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">discount to the market value. Liquidity may sometimes be impaired in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the municipal market and because the Fund primarily invests in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">municipal securities, it may find it difficult to purchase or sell such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities at opportune times. The municipal securities market can be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">susceptible to increases in volatility and decreases in liquidity. Liquidity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">can decline unpredictably in response to a variety of factors, including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">overall economic conditions or credit tightening. Increases in volatility </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and decreases in liquidity also may be caused by a rise in interest rates </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(or the expectation of a rise in interest rates). Liquidity can be impaired </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">due to interest rate concerns, credit events, or general supply and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">demand imbalances. Depending on the particular issuer and current </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economic conditions, municipal securities could be deemed more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">volatile investments.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition to general municipal market risks, different municipal sectors </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may face different risks. For instance, general obligation bonds are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">secured by the full faith, credit, and taxing power of the municipality </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuing the obligation. As such, timely payment depends on the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">municipality's ability to raise tax revenue and maintain a fiscally sound </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">budget. The timely payments may also be influenced by any unfunded </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pension liabilities or other post-employee benefit plan liabilities.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Revenue bonds are secured by special tax revenues or other revenue </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sources. If the specified revenues do not materialize, then the bonds </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may not be repaid.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Private activity bonds are yet another type of municipal security. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Municipalities use private activity bonds to finance the development of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">industrial facilities for use by private enterprise. Principal and interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments are to be made by the private enterprise benefiting from the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">development, which means that the holder of the bond is exposed to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the risk that the private issuer may default on the bond.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Moral obligation bonds are usually issued by special purpose public </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">entities. If the public entity defaults, repayment becomes a “moral </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligation” instead of a legal one. The lack of a legally enforceable right </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to payment in the event of default poses a special risk for a holder of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the bond because it has little or no ability to seek recourse in the event </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of default.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, a significant restructuring of federal income tax rates or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">even serious discussion on the topic in Congress could cause municipal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bond prices to fall. The demand for municipal securities is strongly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">influenced by the value of tax-exempt income to investors relative to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taxable income. Lower income tax rates potentially reduce the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">advantage of owning municipal securities.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Similarly, changes to state or federal regulation tied to a specific sector, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such as the hospital sector, could have an impact on the revenue stream </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for a given subset of the m<div style="display:inline;">ark</div>et.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Municipal notes are similar to general municipal debt obligations, but </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">they generally possess shorter terms. Municipal notes can be used to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provide interim financing and may not be repaid if anticipated revenues </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are not realized.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Distressed and Defaulted Securities Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investments in the securities of financially distressed issuers involve </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">substantial risks, including the risk of default. Distressed securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally trade significantly below “par” or full value because </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments in such securities and debt of distressed issuers or issuers in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">default are considered speculative and involve substantial risks in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition to the risks of investing in high-yield bonds. Such investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be in default at the time of investment. In addition, these securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may fluctuate more in price, and are typically less liquid. The Fund also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will be subject to significant uncertainty as to when, and in what </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">manner, and for what value obligations evidenced by securities of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financially distressed issuers will eventually be satisfied. Defaulted </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations might be repaid only after lengthy workout or bankruptcy </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">proceedings, during which the issuer might not make any interest or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other payments. In any such proceeding relating to a defaulted </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligation, the Fund may lose its entire investment or may be required </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to accept cash or securities with a value substantially less than its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">original investment. Moreover, any securities received by the Fund upon </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">completion of a workout or bankruptcy proceeding may be less liquid, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">speculative or restricted as to resale. Similarly, if the Fund participates in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">negotiations with respect to any exchange offer or plan of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reorganization with respect to the securities of a distressed issuer, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may be restricted from disposing of such securities. To the extent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that the Fund becomes involved in such proceedings, the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have a more active participation in the affairs of the issuer than that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assumed generally by an investor. The Fund may incur additional </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses to the extent it is required to seek recovery upon a default in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the payment of principal or interest on its portfolio holdings.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Also among the risks inherent in investments in a troubled issuer is that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">it frequently may be difficult to obtain information as to the true </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial condition of such issuer. PIMCO's judgments about the credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">quality of a financially distressed issuer and the relative value of its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities may prove to be wrong.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Inflation-Indexed Security Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Inflation-indexed debt securities are subject to the effects of actual or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">anticipated changes in market interest rates caused by factors other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">than inflation (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">e.g.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, real interest rates). In general, the value of an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inflation-indexed security, including Treasury Inflation-Protected </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Securities (“TIPS”), tends to decrease when real interest rates increase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and can increase when real interest rates decrease. Thus generally, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">during periods of rising inflation, the value of inflation-indexed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities will tend to increase and during periods of deflation, their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value will tend to decrease. Interest payments on inflation-indexed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities are unpredictable and will fluctuate as the principal and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest are adjusted for inflation. There can be no assurance that the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inflation index used (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.,</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> the Consumer Price Index (“CPI”)), which is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">calculated and published by a third party, will accurately measure the </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">real rate of inflation in the prices of goods and services. Increases in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">principal value of TIPS due to inflation are considered taxable ordinary </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income for the amount of the increase in the calendar year. Any increase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in the principal amount of an inflation-indexed debt security will be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">considered taxable ordinary income, even though the Fund will not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">receive the principal until maturity. Additionally, a CPI swap can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potentially lose value if the realized rate of inflation over the life of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">swap is less than the fixed market implied inflation rate (fixed breakeven </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate) that the investor agrees to pay at the initiation of the swap. With </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">municipal inflation-indexed securities, the inflation adjustment is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">integrated into the coupon payment, which is federally tax-exempt (and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be state tax-exempt). For municipal inflation-indexed securities, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">there is no adjustment to the principal value. Because municipal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inflation-indexed securities are a small component of the municipal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bond market, they may be less liquid than conventional municipal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bonds.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Debt Securities Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Debt securities are generally subject to the risks described below and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">further herein:</div></div></div><div style="line-height:12.0pt;margin-top:6pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Issuer risk.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The value of debt securities may decline for a number of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reasons that directly relate to the issuer, such as management </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">performance, financial leverage, reduced demand for the issuer’s goods </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and services, historical and prospective earnings of the issuer and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of the assets of the issuer. A change in the financial condition of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">single issuer may affect securities markets as a whole. These risks can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">apply to the Common Shares issued by the Fund and to the issuers of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities and other instruments in which the Fund invests.</div></div></div><div style="line-height:12.0pt;margin-top:6pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Interest rate risk.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The market value of debt securities changes in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">response to interest rate changes and other factors. Interest rate risk is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the risk that prices of debt securities will increase as interest rates fall </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and decrease as interest rates rise, which would be reflected in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s NAV. The Fund may lose money if short-term or long-term </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates rise sharply in a manner not anticipated by the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">management. Moreover, because rates on certain floating rate debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities typically reset only periodically, changes in prevailing interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rates (and particularly sudden and significant changes) can be expected </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to cause some fluctuations in the NAV of the Fund to the extent that it </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invests in floating rate debt securities.</div></div></div><div style="line-height:12.0pt;margin-top:6pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Prepayment risk.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">During periods of declining interest rates, borrowers </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may prepay principal. This may force the Fund to reinvest in lower </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">yielding securities, resulting in a possible decline in the Fund’s income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and distributions.</div></div></div><div style="line-height:12.0pt;margin-top:6pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Credit risk.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Credit risk is the risk that one or more debt securities in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s portfolio will decline in price or fail to pay interest or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">principal when due because the issuer of the security experiences a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decline in its financial status. Credit risk is increased when a portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">security is downgraded or the perceived creditworthiness of the issuer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deteriorates.</div></div></div><div style="line-height:12.0pt;margin-top:6pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Reinvestment risk.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Reinvestment risk is the risk that income from the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s portfolio will decline if the Fund invests the proceeds from </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">matured, traded or called fixed income securities at market interest rates </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that are below the portfolio’s current earnings rate.</div></div><div style="line-height:12.0pt;margin-top:6pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Duration and maturity risk.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may seek to adjust the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">duration or maturity of its investments in debt securities based on its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assessment of current and projected market conditions. The Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">incur costs in seeking to adjust the average duration or maturity of its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio of debt securities. There can be no assurances that the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assessment of current and projected market conditions will be correct or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that any strategy to adjust duration or maturity will be successful.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, from time to time, uncertainty regarding the status of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">negotiations in the U.S. government to increase the statutory debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ceiling could impact the creditworthiness of the United States and could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact the liquidity and value of U.S. Government and other securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and ultimately the Fund.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Sovereign Debt Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition to the other risks applicable to debt investments, sovereign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">debt (debt issued by a foreign government) may decline in value as a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result of default or other adverse credit event resulting from an issuer’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inability or unwillingness to make principal or interest payments in a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">timely fashion. A sovereign entity’s failure to make timely payments on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its debt can result from many factors, including, without limitation, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">insufficient foreign (non-U.S.) currency reserves or an inability to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sufficiently manage fluctuations in relative currency valuations, an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inability or unwillingness to satisfy the demands of creditors and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">relevant supranational entities regarding debt service or economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reforms, the size of the debt burden relative to economic output and tax </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">revenues, cash flow difficulties, and other political and social </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">considerations. The risk of loss to the Fund in the event of a sovereign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">debt default or other adverse credit event is heightened by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unlikelihood of any formal recourse or means to enforce its rights as a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">holder of the sovereign debt. In addition, sovereign debt restructurings, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which may be shaped by entities and factors beyond the Fund’s control, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may result in a loss in value of the Fund’s sovereign debt holdings.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Senior Debt Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund will be subject to greater levels of credit risk than funds that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">do not invest in below investment grade senior debt. The Fund may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be subject to greater levels of liquidity risk than funds that do not invest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in senior debt. Restrictions on transfers in loan agreements, a lack of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">publicly available information and other factors may, in certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instances, make senior debt more difficult to sell at an advantageous </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">time or price than other types of securities or instruments. Additionally, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">if the issuer of senior debt prepays, the Fund will have to consider </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reinvesting the proceeds in other senior debt or similar instruments that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may pay lower interest rates.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Zero-Coupon Bonds, Step-Ups and Payment-In-Kind Securities </div></div><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The market prices of zero-coupon, step-ups and payment-in-kind </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities are generally more volatile than the prices of securities that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pay interest periodically and in cash, and are likely to respond to </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in interest rates to a greater degree than other types of debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities with similar maturities and credit quality. Because </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">zero-coupon securities bear no interest, their prices are especially </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">volatile, and because zero-coupon bondholders do not receive interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments, the prices of zero-coupon securities generally fall more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dramatically than those of bonds that pay interest on a current basis </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when interest rates rise. The market for zero-coupon and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payment-in-kind securities may suffer decreased liquidity. In addition, as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these securities may not pay cash interest, the Fund’s investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exposure to these securities and their risks, including credit risk, will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increase during the time these securities are held in the Fund’s portfolio. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Further, to maintain its qualification for treatment as a RIC and to avoid </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund-level U.S. federal income and/or excise taxes, the Fund is required </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to distribute to its shareholders any income it is deemed to have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">received in respect of such investments, notwithstanding that cash has </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not been received currently, and the value of paid-in-kind interest. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Consequently, the Fund may have to dispose of portfolio securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">under disadvantageous circumstances to generate the cash, or may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have to leverage itself by borrowing the cash to satisfy this distribution </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requirement. The required distributions, if any, would result in an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increase in the Fund’s exposure to these securities. Zero coupon bonds, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">step-ups and payment-in-kind securities allow an issuer to avoid or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">delay the need to generate cash to meet current interest payments and, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as a result, may involve greater credit risk than bonds that pay interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currently or in cash. The Fund would be required to distribute the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income on these instruments as it accrues, even though the Fund will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not receive the income on a current basis or in cash. Thus, the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sell other investments, including when it may not be advisable to do so, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to make income distributions to its shareholders.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Loans and Other Indebtedness; Loan Acquisitions, </div></div><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Participations and Assignments Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Loan interests may take the form of direct interests acquired during a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">primary distribution or other purchase of a loan, or assignments of, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">novations of or participations in all or a portion of a loan acquired in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">secondary markets. In addition to credit risk and interest rate risk, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund's exposure to loan interests may be subject to additional risks. For </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">example, purchasers of loans and other forms of direct indebtedness </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">depend primarily upon the creditworthiness of the borrower for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payment of principal and interest. Loans are subject to the risk that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">scheduled interest or principal payments will not be made in a timely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">manner or at all, either of which may adversely affect the value of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loan. If the Fund does not receive scheduled interest or principal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments on such indebtedness, the Fund’s share price and yield could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be adversely affected. Loans that are fully secured may offer the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more protection than an unsecured loan in the event of non-payment of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">scheduled interest or principal if the Fund is able to access and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">monetize the collateral. However, the collateral underlying a loan, if any, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be unavailable or insufficient to satisfy a borrower’s obligation. If </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund becomes owner, whole or in part, of any collateral after a loan </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">is foreclosed, the Fund may incur costs associated with owning and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">monetizing its ownership of the collateral.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">During periods of deteriorating economic conditions, such as recessions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or periods of rising unemployment, or changing interest rates (notably </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increases), delinquencies and losses generally increase, sometimes </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dramatically, with respect to obligations under such loans. An economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">downturn or individual corporate developments could adversely affect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the market for these instruments and reduce the Fund’s ability to sell </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these instruments at an advantageous time or price. An economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">downturn could also lead to a higher non-payment rate and, a loan may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lose significant market value before a default occurs.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investments in loans through a purchase of a loan or a direct </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assignment of a financial institution’s interests with respect to a loan </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may involve additional risks to the Fund. For example, if a loan is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">foreclosed, the Fund could become owner, in whole or in part, of any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collateral, which could include, among other assets, real estate or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">real or personal property, and would bear the costs and liabilities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with owning and holding or disposing of the collateral. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Moreover, the purchaser of an assignment typically succeeds to all the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rights and obligations under the loan agreement with the same rights </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and obligations as the assigning lender. Assignments may, however, be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">arranged through private negotiations between potential assignees and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potential assignors, and the rights and obligations acquired by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchaser of an assignment may differ from, and be more limited than, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">those held by the assigning lender. The Fund may also invest in loans </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that are not secured by collateral which typically present greater risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">than collateralized loans.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In connection with purchasing loan participations, the Fund generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will have no right to enforce compliance by the borrower with the terms </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the loan agreement relating to the loan, nor any rights </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of set-off against the borrower, and the Fund may not directly benefit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from any collateral supporting the loan in which it has purchased the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loan participation. As a result, the Fund will be subject to the credit risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of both the borrower and the lender that is selling the participation. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the event of the insolvency of the lender selling a participation, the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be treated as a general creditor of the lender and may not benefit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from any set-off between the lender and the borrower. A bankruptcy </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">court may restructure the payment obligations under the loan so as to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reduce the amount to which the Fund would be entitled or extended the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">time for payment. A court could subordinate the Fund's rights to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rights of other creditors of the borrower under applicable law. Various </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">laws enacted for the protection of borrowers may apply to loans, and a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bankruptcy proceeding against a borrower could delay or limit the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability of the Fund to collect principal and interest payments on such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans. Certain loan participations may be structured in a manner </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">designed to prevent purchasers of participations from being subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the credit risk of the lender, but even under such a structure, in the event </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the lender’s insolvency, the lender’s servicing of the participation may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be delayed and the assignability of the participation impaired.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may have difficulty disposing of loans and loan participations. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Because there may not be a liquid market for many such investments, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund anticipates that such investments could be sold only to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limited number of institutional investors. The lack of a liquid secondary </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market may have an adverse impact on the value of such investments </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and the Fund’s ability to dispose of particular loans and loan </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participations when that would be desirable, including in response to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">specific economic event such as a deterioration in the creditworthiness </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the borrower. The lack of a liquid secondary market for loans and loan </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participations also may make it more difficult for the Fund to assign a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value to these securities for purposes of valuing the Fund’s portfolio.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investments in loans may include participations in bridge loans, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are loans taken out by borrowers for a short period (typically less than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">one year) pending arrangement of more permanent financing through, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for example, the issuance of bonds, frequently high yield bonds issued </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for the purpose of acquisitions.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investments in loans may include acquisitions of, or participation in, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">delayed draw and delayed funding loans and revolving credit facilities. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">These commitments may have the effect of requiring the Fund to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increase its investment in a borrower at a time when it might not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise decide to do so (including at a time when the company’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial condition makes it unlikely that such amounts will be repaid). </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Delayed draw and delayed funding loans and revolving credit facilities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be subject to restrictions on transfer, and only limited opportunities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may exist to resell such instruments. As a result, the Fund may be unable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to sell such investments at an opportune time or may have to resell </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">them at less than fair market value. Further, the Fund may need to hold </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquid assets in order to provide funding for these types of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commitments, meaning the Fund may not be able to invest in other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">attractive investments, or the Fund may need to liquidate existing assets </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in order to provide such funding. More generally, sales of the Fund's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio holdings may result in short-term capital gains (which are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally taxed to shareholders at ordinary income tax rates when </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distributed net of short-term capital losses and net of long-term capital </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">losses), potentially subjecting shareholders of the Fund to adverse tax </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consequences.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in loans used to finance the cost of construction, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">acquisition, development, and/ or rehabilitation of a property including, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">but not limited to, development of single-family for-sale homes, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">multi-family rentals and/or commercial facilities. Such construction </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lending may expose the Fund to increased risk of non-payment and loss </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">because the loan is not backed by a finished project. Such risk may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">depend on the nature of the construction and the relevant counterparty </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or counterparties, which may include, but not be limited to, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">homebuilders, private developers and/or entities with limited capital. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Repayment of these types of loans may depend on the borrower’s ability </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to secure permanent “take-out” financing, which requires the successful </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">completion of the project, or operation of the property with an income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">stream sufficient to meet operating and loan expenses. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these types of loans are subject to the risk of errors in estimations of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">property’s value at completion of construction and the estimated cost of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">construction, as well as the risk that the projects may not be completed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and have limited liquidity.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To the extent the Fund invests in loans, including, but not limited to, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bank loans, non-syndicated loans, the residual or equity tranches of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related and other asset-backed securities, which may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">referred to as subordinate mortgage-backed or asset-backed securities </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and interest-only mortgage-backed or asset-backed securities, and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments, the Fund may be subject to greater levels of credit risk, call </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk, settlement risk, risk of subordination to other creditors, insufficient </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or lack of protection under federal securities laws and liquidity risk. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">These instruments are considered predominantly speculative with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">respect to an issuer’s continuing ability to make principal and interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments and may be more volatile than other types of securities. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may also be subject to greater levels of liquidity risk than funds </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that do not invest in loans. In addition, the loans in which the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invests may not be listed on any exchange and a secondary market for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such loans may be comparatively illiquid relative to markets for other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more liquid fixed income securities. Consequently, transactions in loans </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may involve greater costs than transactions in more actively traded </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities. In connection with certain loan transactions, transaction costs </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that are borne by the Fund may include the expenses of third parties </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that are retained to assist with reviewing and conducting diligence, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">negotiating, structuring and servicing a loan transaction, and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">providing other services in connection therewith. Furthermore, the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may incur such costs in connection with loan transactions that are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pursued by the Fund but not ultimately consummated (so-called </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“broken deal costs”).</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Restrictions on transfers in loan agreements, a lack of publicly available </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">information, irregular trading activity and wide bid/ask spreads, among </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other factors, may, in certain circumstances, make loans more difficult to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sell at an advantageous time or price than other types of securities or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments. These factors may result in the Fund being unable to realize </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">full value for the loans and/or may result in the Fund not receiving the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">proceeds from a sale of a loan for an extended period after such sale, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">each of which could result in losses to the Fund. Some loans may have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extended trade settlement periods, including settlement periods of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">greater than seven days, which may result in cash not being </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">immediately available to the Fund. If an issuer of a loan prepays or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">redeems the loan prior to maturity, the Fund may have to reinvest the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">proceeds in other loans or similar instruments that may pay lower </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates. Because of such risks involved in investing in loans, an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment in the Fund should be considered speculative.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investments in subordinated and unsecured loans generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are subject to similar risks as those associated with investments in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">secured loans. Subordinated or unsecured loans are lower in priority of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payment to secured loans and are subject to the additional risk that the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cash flow of the borrower and property securing the loan or debt, if any, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be insufficient to meet scheduled payments after giving effect to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the senior secured obligations of the borrower. This risk is generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">higher for subordinated unsecured loans or debt, which are not backed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by a security interest in any specific collateral. Subordinated and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unsecured loans generally have greater price volatility than secured </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans and may be less liquid. There is also a possibility that originators </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will not be able to sell participations in subordinated or unsecured </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans, which would create greater credit risk exposure for the holders of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such loans. Subordinate and unsecured loans share the same risks as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other below investment grade securities.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There may be less readily available information about most loans and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the underlying borrowers than is the case for many other types of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities. Loans may be issued by borrowers that are not subject to SEC </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reporting requirements and therefore may not be required to file reports </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with the SEC or may file reports that are not required to comply with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">SEC form requirements. In addition, such borrowers may be subject to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">less stringent liability disclosure regime than companies subject to SEC </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reporting requirements. Loans may not be considered “securities,” and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchasers, such as the Fund, therefore may not be entitled to rely on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the anti-fraud protections of the federal securities laws. Because there is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limited public information available regarding loan investments, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund is particularly dependent on the analytical abilities of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investment Manager.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Economic exposure to loan interests through the use of derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions may involve greater risks than if the Fund had invested in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the loan interest directly during a primary distribution, through </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assignments of, novations of or participations in a loan acquired in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">secondary markets since, in addition to the risks described above, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain derivative transactions may be subject to leverage risk and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">greater illiquidity risk, counterparty risk, valuation risk and other risks.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">“Covenant-lite” Obligations Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Covenant-lite obligations contain fewer maintenance covenants than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other obligations, or no maintenance covenants, and may not include </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">terms that allow the lender to monitor the performance of the borrower </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and declare a default if certain criteria are breached, which would allow </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the lender to restructure the loan or take other action intended to help </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mitigate losses. Covenant-lite loans carry a risk that the borrower could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transfer or encumber its assets, which could reduce the amount of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assets that can be used to satisfy debts and result in losses for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">debtholders. Covenant-lite loans may carry more risk than traditional </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans as they allow individuals and corporations to engage in activities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that would otherwise be difficult or impossible under a covenant-heavy </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loan agreement. In the event of default, covenant-lite loans may exhibit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">diminished recovery values as the lender may not have the opportunity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to negotiate with the borrower prior to default.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Subprime Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Loans, and debt instruments collateralized by loans, acquired by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may be subprime in quality, or may become subprime in quality. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Although there is no specific legal or market definition of “subprime,” </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subprime loans are generally understood to refer to loans made to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">borrowers that display poor credit histories and other characteristics </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that correlate with a higher default risk. Accordingly, subprime loans, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and debt instruments secured by such loans, have speculative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">characteristics and are subject to heightened risks, including the risk of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">nonpayment of interest or repayment of principal, and the risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with investments in high yield securities. In addition, these </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments could be subject to increased regulatory scrutiny. The Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">is not restricted by any particular borrower credit risk criteria and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">qualifications when acquiring loans or debt instruments collateralized </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by loans.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Reinvestment Risk</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Income from the Fund’s portfolio will decline if and when the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invests the proceeds from matured, traded or called debt obligations at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market interest rates that are below the portfolio’s current earnings rate. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">For instance, during periods of declining interest rates, an issuer of debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations may exercise an option to redeem securities prior to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">maturity, forcing the Fund to invest in lower-yielding securities. The Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">also may choose to sell higher yielding portfolio securities and to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchase lower yielding securities to achieve greater portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">diversification, because the Investment Manager believes the current </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">holdings are overvalued or for other investment-related reasons. A </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decline in income received by the Fund from its investments is likely to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have a negative effect on dividend levels and the market price, NAV </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and/or overall return of the Common Shares.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Call Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Call risk refers to the possibility that an issuer may exercise its right to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">redeem a fixed income security earlier than expected (a call). Issuers </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may call outstanding securities prior to their maturity for a number of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reasons (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">e.g.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, declining interest rates, changes in credit spreads and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">improvements in the issuer’s credit quality), and changes in the rate at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which prepayments or redemptions occur can affect the return on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment of these securities. If an issuer calls a security in which the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund has invested, the Fund may not recoup the full amount of its initial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment or may not realize the full anticipated earnings from the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment and may be forced to reinvest in lower-yielding securities, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities with greater credit risks or securities with other, less favorable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">features.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Foreign (Non-U.S.) Investment Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Foreign (non-U.S.) securities may experience more rapid and extreme </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in value than securities of U.S. issuers or securities that trade </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exclusively in U.S. markets. The securities markets of many foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">countries are relatively small, with a limited number of companies </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">representing a small number of industries. Additionally, issuers of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">foreign (non-U.S.) securities are usually not subject to the same degree </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of regulation as U.S. issuers. Financial reporting, legal, corporate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">governance, accounting, auditing and custody standards of foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">countries differ, in some cases significantly, from U.S. standards. Global </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economies and financial markets are becoming increasingly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interconnected, and conditions and events in one country, region or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial market may adversely impact issuers in a different country, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">region or financial market. Foreign (non-U.S.) market trading hours, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">clearance and settlement procedures, and holiday schedules may limit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund's ability to buy and sell securities. Investments in foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(non-U.S.) markets may also be adversely affected by governmental </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">actions such as the imposition of capital controls, nationalization of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">companies or industries, expropriation of assets or the imposition of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">punitive taxes. The governments of certain countries may prohibit or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impose substantial restrictions on foreign (non-U.S.) investing in their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">capital markets or in certain sectors or industries. In addition, a foreign </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(non-U.S.) government may limit or cause delay in the convertibility or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repatriation of its currency which would adversely affect the U.S. dollar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value and/or liquidity of investments denominated in that currency.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain foreign (non-U.S.) investments may become less liquid in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">response to market developments or adverse investor perceptions, or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">become illiquid after purchase by the Fund, particularly during periods </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of market turmoil. A reduction in trading in securities of issuers located </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in countries whose economies are heavily dependent upon trading with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">key partners may have an adverse impact on the Fund's investments.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Also, nationalization, expropriation or confiscatory taxation, unstable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">governments, decreased market liquidity, currency blockage, market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disruptions, political changes, security suspensions or diplomatic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">developments, trade restrictions (including tariffs) or the imposition of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sanctions or other similar measures could adversely affect the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments in a foreign (non-U.S.) country and may render holdings in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that foreign (non-U.S.) country illiquid or even worthless. In the event of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">nationalization, expropriation or other confiscation, the Fund could lose </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its entire investment in foreign (non-U.S.) securities. The type and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">severity of sanctions and other similar measures, including counter </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sanctions and other retaliatory actions, that may be imposed could vary </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">broadly in scope, and their impact is difficult to ascertain. These types of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">measures may include, but are not limited to, banning a sanctioned </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">country or certain persons or entities associated with such country from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">global payment systems that facilitate cross-border payments, restricting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities transactions, restricting dealings with entities that are critical </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the infrastructure of securities and related transactions in specific </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">jurisdictions, restricting transactions in specified sectors of certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">countries, and freezing the assets of particular countries, entities or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">persons. The imposition of sanctions and other similar measures could, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">among other things, result in a decline in the value and/or liquidity of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affected securities, downgrades in the credit ratings of affected or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">related securities, currency devaluation or volatility, and increased </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market volatility and disruption in the securities or sanctioned country </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and throughout the world. Sanctions and other similar measures could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">directly or indirectly limit or prevent the Fund from buying and selling </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities, receiving interest or principal payments due on the securities, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significantly delay or prevent securities transactions, and adversely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact the Fund's liquidity and performance and/or prevent the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidation of a portfolio holding sanctioned securities. Adverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions in a certain region can adversely affect securities of other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">countries whose economies appear to be unrelated. To the extent that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund invests a significant portion of its assets in a specific </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">geographic region or in securities denominated in a particular foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(non-U.S.) currency, the Fund will generally have more exposure to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regional economic risks, including weather emergencies and natural </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disasters, associated with foreign (non-U.S.) investments. Additionally, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">events and evolving conditions in certain markets or regions may alter </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the risk profile of investments tied to those markets or regions. This may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cause investments tied to such markets or regions to become riskier or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more volatile, even when investments in such markets or regions were </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">perceived as comparatively stable historically. Foreign (non-U.S.) </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities may also be less liquid (particularly during market closures </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">due to local market holidays or other reasons) and more difficult to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value than securities of U.S. issuers.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: Arial; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Investments in Russia.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund may invest in securities and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments that are economically tied to Russia. Investments in Russia </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are subject to various risks such as, but not limited to political, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economic, legal, market and currency risks. The risks include uncertain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">political and economic policies, short -term market volatility, poor </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">accounting standards, corruption and crime, an inadequate regulatory </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">system, regional armed conflict and unpredictable taxation. Investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in Russia are particularly subject to the risk that further economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sanctions, export and import controls, and other similar measures may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be imposed by the United States and/or other countries. Other similar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">measures may include, but are not limited to, banning or expanding </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bans on Russia or certain persons or entities associated with Russia </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from global payment systems that facilitate cross-border payments, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">restricting the settlement of securities transactions by certain investors, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and freezing Russian assets or those of particular countries, entities or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">persons with ties to Russia (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">e.g.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, Belarus). Such sanctions and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">similar measures - which may impact companies in many sectors, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including energy, financial services, technology, accounting, quantum </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">computing, shipping, aviation, metals and mining, defense, architecture, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">engineering, construction, manufacturing and transportation, among </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">others - and Russia's countermeasures may negatively impact the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund's performance and/or ability to achieve its investment objectives. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">For example, certain investments may be prohibited and/or existing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments may become illiquid (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">e.g.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, in the event that transacting in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain existing investments is prohibited, securities markets close, or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market participants cease transacting in certain investments in light of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">geopolitical events, sanctions or related considerations), which could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">render any such securities held by the Fund unmarketable for an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">indefinite period of time and/or cause the Fund to sell other portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">holdings at a disadvantageous time or price or to continue to hold </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments that the Fund no longer seeks to hold. In addition, such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sanctions or other similar measures, and the Russian government's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">response, could result in a downgrade of Russia's credit rating or of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities of issuers located in or economically tied to Russia, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">devaluation of Russia's currency and/or increased volatility with respect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to Russian securities and the ruble. Moreover, disruptions caused by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Russian military action or other actions (including cyberattacks, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">espionage or other asymmetric measures) or resulting actual or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">threatened responses to such activity may impact Russia's economy and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Russian and other issuers of securities in which the Fund is invested.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Such resulting actual or threatened responses may include, but are not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limited to, purchasing and financing restrictions, withdrawal of financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intermediaries, boycotts or changes in consumer or purchaser </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">preferences, sanctions, export and import controls, tariffs or cyberattacks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on the Russian government, Russian companies or Russian individuals, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including politicians. Any actions by Russia made in response to such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sanctions or retaliatory measures could further impair the value and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidity of Fund investments. Sanctions and other similar measures </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have resulted in defaults on debt obligations by certain corporate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuers and the Russian Federation that could lead to cross-defaults or </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cross-accelerations on other obligations of these issuers. The Russian </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities market is characterized by limited volume of trading, resulting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in difficulty in obtaining accurate prices and trading. These issues can be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">magnified as a result of sanctions and other similar measures that may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be imposed and the Russian government's response.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Russian securities market, as compared to U.S. markets, has </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significant price volatility, less liquidity, a smaller market capitalization </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and a smaller number of traded securities. There may be little publicly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">available information about issuers. Settlement, clearing and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">registration of securities transactions are subject to risks. Prior to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">implementation of the National Settlement Depository (”NSD“), a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">recognized central securities depository, there was no central </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">registration system for equity share registration in Russia, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">registration was carried out by either the issuers themselves or by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">registrars located throughout Russia. Title to Russian equities held </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">through the NSD is now based on the records of the NSD and not the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">registrars. Although the implementation of the NSD has enhanced the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">efficiency and transparency of the Russian securities market, issues </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">resulting in loss can still occur. In addition, sanctions by the European </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Union against the NSD, as well as the potential for sanctions by other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">governments, could make it more difficult to conduct or confirm </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions involving Russian securities. Ownership of securities issued </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by Russian companies that are not held through depositories such as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the NSD may be recorded by companies themselves and by registrars. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Moreover, changes in Russian laws and regulations could require the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transfer of securities from the NSD to registrars or other parties outside </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of standard custodial arrangements. In such cases, the risk is increased </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that the Fund could lose ownership rights through fraud, negligence or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">oversight. While applicable Russian regulations impose liability on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">registrars for losses resulting from their errors, it may be difficult for the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund to enforce any rights it may have against the registrar or issuer of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the securities in the event of loss of share registration. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuers and registrars are still prominent in the validation and approval </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of documentation requirements for corporate action processing in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Russia. Because the documentation requirements and approval criteria </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">vary between registrars and issuers, there remain unclear and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inconsistent market standards in the Russian market with respect to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">completion and submission of corporate action elections. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sanctions or Russian countermeasures may prohibit or limit the Fund's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability to participate in corporate actions, and therefore require the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to forego voting on or receiving funds that would otherwise be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">beneficial to the Fund. To the extent that the Fund suffers a loss relating </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to title or corporate actions relating to its portfolio securities, it may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficult for the Fund to enforce its rights or otherwise remedy the loss. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Russian securities laws may not recognize foreign nominee accounts </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">held with a custodian bank, and therefore the custodian may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">considered the ultimate owner of securities they hold for their clients.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Adverse currency exchange rates are a risk and there may be a lack of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">available currency hedging instruments. Investments in Russia may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to the risk of nationalization or expropriation of assets. Oil, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">natural gas, metals, minerals and timber account for a significant </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portion of Russia's exports, leaving the country vul<div style="display:inline;">nerabl</div>e to swings in </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">world prices and to sanctions or other actions that may be directed at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Russian economy as a whole or at Russian oil, natural gas, metals, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">minerals or timber industries.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Emerging Markets Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Foreign (non-U.S.) investment risk may be particularly high to the extent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that the Fund invests in securities of issuers based in or doing business </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in emerging market countries or invests in securities denominated in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currencies of emerging market countries. Investing in securities of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuers based in or doing business in emerging markets entails all of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risks of investing in foreign securities noted above, but to a heightened </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">degree.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investments in emerging market countries pose a greater degree of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">systemic risk (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, the risk of a cascading collapse of multiple institutions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">within a country, and even multiple national economies). The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inter-relatedness of economic and financial institutions within and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">among emerging market economies has deepened over the years, with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the effect that institutional failures and/or economic difficulties that are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of initially limited scope may spread throughout a country, a region or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">all or most emerging market countries. This may undermine any attempt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by the Fund to reduce risk through geographic diversification of its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There is a heightened possibility of imposition of withholding or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taxes on interest or dividend income or capital gains generated from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">emerging market securities. Governments of emerging market countries </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may engage in confiscatory taxation or expropriation of income and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assets to raise revenues or to pursue a domestic political agenda. In the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">past, emerging market countries have nationalized assets, companies </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and even entire sectors, including the assets of foreign investors, with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inadequate or no compensation to the prior owners. There can be no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assurance that the Fund will not suffer a loss of any or all of its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments, or interest or dividends thereon, due to adverse fiscal or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other policy changes in emerging market countries.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There is also a greater risk that an emerging market government may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">take action that impedes or prevents the Fund from taking income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and/or capital gains earned in the local currency and converting into </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. dollars (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, “repatriating” local currency investments or profits). </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain emerging market countries have sought to maintain foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exchange reserves and/or address the economic volatility and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dislocations caused by the large international capital flows by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">controlling or restricting the conversion of the local currency into other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currencies. This risk tends to become more acute when economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions otherwise worsen. There can be no assurance that if the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">earns income or capital gains in an emerging market currency or PIMCO </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise seeks to withdraw the Fund’s investments from a given </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">emerging market country, capital controls imposed by such country will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not prevent, or cause significant expense, or delay in, doing so.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Bankruptcy law and creditor reorganization processes may differ </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">substantially from those in the United States, resulting in greater </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">uncertainty as to the rights of creditors, the enforceability of such rights, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reorganization timing and the classification, seniority and treatment of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">claims. In certain emerging market countries, although bankruptcy laws </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have been enacted, the process for reorganization remains highly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">uncertain. In addition, it may be impossible to seek legal redress against </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">an issuer that is a sovereign state.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Emerging market countries typically have less established regulatory, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disclosure, legal, accounting, recordkeeping and financial reporting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">systems than those in more developed markets, which may increase the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potential for market manipulation or reduce the scope or quality of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial information available to investors. Governments in emerging </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market countries are often less stable and more likely to take extra-legal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">action with respect to companies, industries, assets, or foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ownership than those in more developed markets. Moreover, it can be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more difficult for investors to bring litigation or enforce judgments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">against issuers in emerging markets or for U.S. regulators to bring </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">enforcement actions, or obtain information needed to pursue or enforce </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such judgments, against such issuers. In addition, foreign companies </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with securities listed on U.S. exchanges may be delisted if they do not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">meet U.S. accounting standards and auditor oversight requirements, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which may decrease the liquidity and value of the securities. The Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may also be subject to emerging markets risk if it invests in derivatives </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or other securities or instruments whose value or return are related to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the value or returns of emerging markets securities.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Other heightened risks associated with emerging markets investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">include without limitation, (i) risks due to less social, political and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economic stability; (ii) the smaller size of the market for such securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and a lower volume of trading, resulting in a lack of liquidity and in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">price volatility; (iii) certain national policies which may restrict the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment opportunities, including sanctions and restrictions on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investing in issuers or industries deemed sensitive to relevant national </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interests and requirements that government approval be obtained prior </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to investment by foreign persons; (iv) certain national policies that may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">restrict the Fund’s repatriation of investment income, capital or the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">proceeds of sales of securities, including temporary restrictions on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">foreign capital remittances; (v) the lack of uniform accounting and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">auditing standards and/or standards that may be significantly different </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from the standards required in the United States; (vi) less publicly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">available financial and other information regarding issuers; (vii) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potential difficulties in enforcing contractual obligations; and (viii) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">higher rates of inflation, higher interest rates and other economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">concerns. Countries with emerging securities markets may additionally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">experience problems with share registration, settlement and custody, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which may result in losses to the Fund. The Fund may invest to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">substantial extent in emerging market securities that are denominated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in local currencies, subjecting the Fund to a greater degree of foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currency risk. Also, investing in emerging market countries may entail </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchases of securities of issuers that are insolvent, bankrupt or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise of questionable ability to satisfy their payment obligations as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">they become due, subjecting the Fund to a greater amount of credit risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and/or high yield risk. The economy of some emerging markets may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particularly exposed to or affected by a certain industry or sector, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">therefore issuers and/or securities of such emerging markets may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more affected by the performance of such industries or sectors.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Currency Risk</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Currency risk may be particularly high because the Fund may, at times </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or in general, have substantial exposure to emerging market currencies, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and engage in foreign currency transactions that are economically tied </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to emerging market countries. These currency transactions may present </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market, credit, currency, liquidity, legal, political, headline, reputational </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other risks different from, or greater than, the risks of investing in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">developed foreign (non-U.S.) currencies or engaging in foreign currency </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions that are economically tied to developed foreign countries.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investments denominated in foreign (non-U.S.) currencies or that trade </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in and receive revenues in, foreign (non-U.S.) currencies, derivatives or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other instruments that provide exposure to foreign (non-U.S.) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currencies, are subject to the risk that those currencies will decline in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value relative to the U.S. dollar, or, in the case of hedging positions, that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the U.S. dollar will decline in value relative to the currency being </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hedged.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Currency rates in foreign (non-U.S.) countries may fluctuate significantly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">over short periods of time for a number of reasons, including changes in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest or inflation rates, balance of payments and governmental </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">surpluses or deficits, intervention (or the failure to intervene) by U.S. or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">foreign (non-U.S.) governments, central banks or supranational entities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such as the International Monetary Fund, the imposition of currency </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">controls or other political developments in the United States or abroad. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">As a result, the Fund’s investments in or exposure to foreign (non-U.S.) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currencies and/or foreign (non-U.S.) currency-denominated securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may reduce the returns of the Fund. Currency risk may be particularly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">high to the extent that the Fund invests in foreign (non-U.S.) currencies </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or engages in foreign currency transactions that are economically tied to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">emerging market countries. These currency transactions may present </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market, credit, currency, liquidity, legal, political and other risks different </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from, or greater than, the risks of investing in developed foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(non-U.S.) currencies or engaging in foreign currency transactions that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are economically tied to developed foreign countries. Devaluation of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currency by a country's government or banking authority can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significantly impact the value of any investments denominated in that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currency. These fluctuations may have a significant adverse impact on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the value of the Fund’s portfolio and/or the level of Fund distributions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">made to Common Shareholders. There is no assurance that a hedging </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strategy, if used, will be successful. The Fund may also be adversely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impacted by expenses incurred by converting between currencies to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchase and sell securities not valued in the U.S. dollar, as well as by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currency restrictions, exchange control regulation, or governmental </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">restrictions that limit or otherwise delay the Fund’s ability to convert </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currencies.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Moreover, currency hedging techniques may be unavailable with respect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to emerging market currencies. As a result, the Fund’s investments in or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exposure to foreign (non-U.S.) currencies and/or foreign (non-U.S.) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currency-denominated, and especially emerging market-currency </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">denominated, securities may reduce the returns of the Fund.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The local emerging market currencies in which the Fund may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invested from time to time may experience substantially greater </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">volatility against the U.S. dollar than the major convertible currencies of </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">developed countries. Some of the local currencies in which the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may invest are neither freely convertible into one of the major currencies </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">nor internationally traded. The local currencies may be convertible into </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other currencies only inside the relevant emerging market where the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limited availability of such other currencies may tend to inflate their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">values relative to the local currency in question. Such internal exchange </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">markets can therefore be said to be neither liquid nor competitive. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, many of the currencies of emerging market countries in which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund may invest have experienced steady devaluation relative to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">freely convertible currencies.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Continuing uncertainty as to the status of the euro and the European </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Monetary Union (“EMU”) has created significant volatility in currency </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and financial markets generally. Any partial or complete dissolution of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the EMU could have significant adverse effects on currency and financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">markets, and on the values of the Fund’s portfolio investments. If one or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more EMU countries were to stop using the euro as its primary currency, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s investments in such countries may be redenominated into a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">different or newly adopted currency. As a result, the value of those </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments could decline significantly and unpredictably. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities or other investments that are redenominated may be subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to foreign currency risk, liquidity risk and valuation risk to a greater </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extent than similar investments currently denominated in euros. To the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extent a currency used for redenomination purposes is not specified in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">respect of certain EMU-related investments, or should the euro cease to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be used entirely, the currency in which such investments are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">denominated may be unclear, making such investments particularly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficult to value or dispose of. The Fund may incur additional expenses </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the extent it is required to seek judicial or other clarification of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">denomination or value of such securities.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There can be no assurance that if the Fund earns income or capital gains </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in a non-U.S. country or PIMCO otherwise seeks to withdraw the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments from a given country, capital controls imposed by such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">country will not prevent, or cause significant expense in, doing so.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">U.S. Government Securities Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain U.S. government securities, such as U.S. Treasury bills, notes, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bonds, and mortgage-related securities guaranteed by the Government </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">National Mortgage Association (“GNMA”), are supported by the full </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">faith and credit of the United States; others, such as those of the Federal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Home Loan Banks (“FHLBs”) or the Federal Home Loan Mortgage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Corporation (“FHLMC”), are supported by the right of the issuer to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">borrow from the U.S. Treasury; others, such as those of the Federal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">National Mortgage Association (“FNMA”), are supported by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">discretionary authority of the U.S. government to purchase the agency’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations; and still others are supported only by the credit of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">agency, instrumentality or corporation. U.S. government securities are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to market risk, interest rate risk and credit risk. Although </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">legislation has been enacted to support certain government sponsored </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">entities, including the FHLBs, FHLMC and FNMA, there is no assurance </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that the obligations of such entities will be satisfied in full, or that such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations will not decrease in value or default. It is difficult, if not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impossible, to predict the future political, regulatory or economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes that could impact the government sponsored entities and the </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">values of their related securities or obligations. In addition, certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">governmental entities, including FNMA and FHLMC, have been subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to regulatory scrutiny regarding their accounting policies and practices </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other concerns that may result in legislation, changes in regulatory </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">oversight and/or other consequences that could adversely affect the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">credit quality, availability or investment character of securities issued by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these entities. Yields available from U.S. government debt securities are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally lower than the yields available from such other securities. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">values of U.S. government securities change as interest rates fluctuate.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Periodically, uncertainty regarding the status of negotiations in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. government to increase the statutory debt ceiling could increase the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk that the U.S. government may default on payments on certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. government securities, cause the credit rating of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. government to be downgraded, increase volatility in the stock and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bond markets, result in higher interest rates, reduce prices of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. Treasury and other securities, and/or increase the costs of various </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">kinds of debt. If a government-sponsored entity is negatively impacted </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by legislative or regulatory action (or lack thereof), is unable to meet its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations, or its creditworthiness declines, the performance of a fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that holds securities of the entity will be adversely impacted.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Convertible Securities Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Convertible securities are fixed income securities, preferred securities or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other securities that are convertible into or exercisable for common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">stock of the issuer (or cash or securities of equivalent value) at either a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">stated price or a stated rate. Convertible debt securities pay interest and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">convertible preferred stocks pay dividends until they mature or are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">converted, exchanged or redeemed. The market values of convertible </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities may decline as interest rates increase and, conversely, may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increase as interest rates decline. A convertible security’s market value, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">however, tends to reflect the market price of the common stock of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuing company when that stock price approaches or is greater than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the convertible security’s “conversion price.” The conversion price is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">defined as the predetermined price at which the convertible security </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could be exchanged for the associated stock. Certain types of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">convertible securities may decline in value or lose their value entirely in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the event the issuer’s financial condition becomes significantly impaired. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">As the market price of the underlying common stock declines, the price </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the convertible security tends to be influenced more by the yield of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the convertible security. Thus, it may not decline in price to the same </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extent as the underlying common stock. In the event of a liquidation of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the issuing company, holders of convertible securities may be paid </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">before the company’s common stockholders but after holders of any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">senior debt obligations of the company. Consequently, the issuer’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">convertible securities generally entail less risk than its common stock </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">but more risk than its other debt obligations. Convertible securities are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">often rated below investment grade or not rated.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Synthetic Convertible Securities Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Synthetic convertible securities involve the combination of separate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities that possess the two principal characteristics of a traditional </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">convertible security (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, an income-producing component and a right to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">acquire an equity security). Synthetic convertible securities are often </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">achieved, in part, through investments in warrants or options to buy </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">common stock (or options on a stock index), and therefore are subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the risks associated with derivatives. The value of a synthetic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">convertible security will respond differently to market fluctuations than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a traditional convertible security because a synthetic convertible is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">composed of two or more separate securities or instruments, each with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its own market value. Because the convertible component is typically </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">achieved by investing in warrants or options to buy common stock at a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain exercise price, or options on a stock index, synthetic convertible </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities are subject to the risks associated with derivatives. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, if the value of the underlying common stock or the level of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">index involved in the convertible component falls below the exercise </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">price of the warrant or option, the warrant or option may lose all value.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Contingent Convertible Securities Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">CoCos have no stated maturity, have fully discretionary coupons and are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">typically issued in the form of subordinated debt instruments. CoCos </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally either convert into equity or have their principal written down </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(including potentially to zero) upon the occurrence of certain triggering </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">events (“triggers”) linked to regulatory capital thresholds or regulatory </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">actions relating to the issuer’s continued viability. As a result, an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment by the Fund in CoCos is subject to the risk that coupon (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest) payments may be cancelled by the issuer or a regulatory </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">authority in order to help the issuer absorb losses and the risk of total </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loss. If such an event occurs, an investor may not have any rights to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repayment of the principal amount of the securities. Additionally, an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investor may not be able to collect interest payments or dividends on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such securities. An investment by the Fund in CoCos is also subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the risk that, in the event of the liquidation, dissolution or winding-up of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">an issuer prior to a trigger event, the Fund’s rights and claims will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally rank junior to the claims of holders of the issuer’s other debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations and CoCos may also be treated as junior to an issuer’s other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations and securities. In addition, if CoCos held by the Fund are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">converted into the issuer’s underlying equity securities following a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">trigger event, the Fund’s holding may be further subordinated due to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the conversion from a debt to equity instrument. Further, the value of an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment in CoCos is unpredictable and will be influenced by many </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">factors and risks, including interest rate risk, credit risk, market risk and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidity risk. An investment by the Fund in CoCos may result in losses to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Valuation Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain securities in which the Fund invests may be less liquid and more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficult to value than other types of securities. Investments for which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market quotations are not readily available are valued at fair value as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">determined in good faith pursuant to Rule 2a-5 under the 1940 Act. Fair </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value pricing may require subjective determinations about the value of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">security or other asset. As a result, there can be no assurance that fair </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value pricing will result in adjustments to the prices of securities or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assets or that fair value pricing will reflect actual market value, and it is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">possible that the fair value determined for a security or other asset will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be materially different from quoted or published prices, from the prices </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">used by others for the same security or other asset and/or from the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value that actually could be or is realized upon the sale of that security </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or other asset.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Real Estate Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To the extent that the Fund invests directly or indirectly in real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments, including investments in equity or debt securities issued by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">private and public REITs, real estate operating companies (“REOCs”), </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">private or public real estate-related loans and real estate-linked </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivative instruments, it will be subject to the risks associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">owning real estate and with the real estate industry generally. These </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments carry increased risks, which include, but are not limited to: </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the burdens of ownership of real property; general and local economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions (such as an oversupply of space or a reduction in demand for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">space); fluctuations in the supply and demand for properties (including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">competition based on rental rates); energy and supply shortages; </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fluctuations in average occupancy and room rates; the attractiveness, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">type and location of the properties and changes in the relative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">popularity of commercial properties as an investment; the financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">condition and resources of tenants, buyers and sellers of properties; </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increased mortgage defaults; the quality of maintenance, insurance and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">management services; changes in the availability of debt financing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which may render the sale or refinancing of properties difficult or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impracticable; changes in building, environmental and other laws </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and/or regulations (including those governing usage and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">improvements), fiscal policies and zoning laws; changes in real property </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tax rates; changes in interest rates and the availability of mortgage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">funds which may render the sale or refinancing of properties difficult or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impracticable; changes in operating costs and expenses; energy and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">supply shortages; uninsured losses or delays from casualties or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">condemnation; negative developments in the economy that depress </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">travel or leasing activity; environmental liabilities; contingent liabilities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on disposition of assets; uninsured or uninsurable casualties; acts of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">God, including earthquakes, hurricanes and other natural disasters; </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">social unrest and civil disturbances, epidemics, pandemics or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">public crises; terrorist attacks and war; risks and operating problems </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">arising out of the presence of certain construction materials, structural </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or property level latent defects, work stoppages, shortages of labor, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strikes, union relations and contracts, fluctuating prices and supply of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">labor and/or other labor-related factor; and other factors which are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">beyond the control of PIMCO and its affiliates.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, the Fund’s investments will be subject to various risks which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could cause fluctuations in occupancy, rental rates, operating income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and expenses or which could render the sale or financing of its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties difficult or unattractive. For example, following the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">termination or expiration of a tenant’s lease, there may be a period of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">time before receiving rental payments under a replacement lease. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">During that period, the Fund would continue to bear fixed expenses </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such as interest, real estate taxes, maintenance and other operating </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses. In addition, declining economic conditions may impair the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability to attract replacement tenants and achieve rental rates equal to </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or greater than the rents paid under previous leases. Increased </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">competition for tenants may require capital improvements to properties </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which would not have otherwise been planned.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Ultimately, to the extent it is not possible to renew leases or re-let space </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as leases expire, decreased cash flow from tenants will result, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could adversely impact the Fund’s operating results.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Real estate values have historically been cyclical. As the general </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economy grows, demand for real estate increases and occupancies and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rents may increase. As occupancies and rents increase, property values </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increase, and new development occurs. As development may occur, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">occupancies, rents and property values may decline. Because leases are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">usually entered into for long periods and development activities often </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">require extended times to complete, the real estate value cycle often </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lags the general business cycle. Because of this cycle, real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">companies may incur large swings in their profits and the prices of their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities. Developments following the onset of COVID-19 have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely impacted certain commercial real estate markets, causing the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deferral of mortgage payments, renegotiated commercial mortgage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans, commercial real estate vacancies or outright mortgage defaults. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">These developments accelerated macro trends such as work from home </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and online shopping which have negatively impacted (and may continue </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to negatively impact) certain industries, such as brick-and-mortar retail.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The total returns available from investments in real estate generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">depend on the amount of income and capital appreciation generated by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the related properties. The performance of real estate, and thereby the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund, will be reduced by any related expenses, such as expenses paid </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">directly at the property level and other expenses that are capitalized or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise embedded into the cost basis of the real estate.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Separately, certain service providers to the Fund and/or its Subsidiaries, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as applicable, with respect to its real estate or real estate-related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments may be owned by, employed by, or otherwise related to, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO, Allianz SE, their affiliates and/or their respective employees, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consultants and other personnel. PIMCO may, in its sole discretion, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">determine to provide, or engage or recommend an affiliate of PIMCO to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provide, certain services to the Fund, instead of engaging or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">recommending one or more third parties to provide such services. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Subject to the governance requirements of a particular fund and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">applicable law, PIMCO or its affiliates, as applicable, will receive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">compensation in connection with the provision of such services. As a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result, PIMCO faces a conflict of interest when selecting or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">recommending service providers for the Fund. Fees paid to an affiliated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">service provider will be determined in PIMCO’s commercially reasonable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">discretion. Although PIMCO has adopted various policies and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">procedures intended to mitigate or otherwise manage conflicts of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest with respect to affiliated service providers, there can be no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">guarantee that such policies and procedures (which may be modified or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">terminated at any time in PIMCO’s sole discretion) will be successful.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investments in real estate will potentially be limited by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s intention to qualify as a RIC and will potentially limit the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability to so qualify. Income and gains from direct investments in real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate do not constitute qualifying income to a RIC for purposes of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">90% gross income test described below. If the Fund's income or gain </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from a particular investment were determined to constitute </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">nonqualifying income, which in certain cases may be determined </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">retroactively, and the Fund’s nonqualifying income from all sources were </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to exceed 10% of its gross income in any taxable year, or the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">nonqualifying income in any taxable year otherwise exceeded 10% of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its gross income, the Fund would fail to qualify as a RIC unless it were </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">eligible to and did pay a tax at the Fund level. See “Tax Risk” for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">additional details.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Leverage Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s use of leverage (as described under ”Use of Leverage“ in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">body of this prospectus) creates the opportunity for increased Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Share net income, but also creates special risks for Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders (including an increased risk of loss). To the extent used, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">there is no assurance that the Fund’s leveraging strategies will be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">successful. Leverage is a speculative technique that may expose the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund to greater risk and increased costs. The Fund’s assets attributable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to leverage, if any, will be invested in accordance with the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment objectives and policies. Interest expense payable by the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with respect to derivatives and other forms of leverage, and dividends </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payable with respect to preferred shares outstanding, if any, will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally be based on shorter-term interest rates that would be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">periodically reset. So long as the Fund’s portfolio investments provide a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">higher rate of return (net of applicable Fund expenses) than the interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses and other costs to the Fund of such leverage, the investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the proceeds thereof will generate more income than will be needed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to pay the costs of the leverage. If so, and all other things being equal, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the excess may be used to pay higher dividends to Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders than if the Fund were not so leveraged. There can be no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assurance these circumstances will occur. If, however, shorter-term </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates rise relative to the rate of return on the Fund’s portfolio, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the interest and other costs to the Fund of leverage could exceed the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate of return on the debt obligations and other investments held by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund, thereby reducing return to Common Shareholders. When the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reduces or discontinues its use of leverage (“deleveraging”), it may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to sell portfolio securities at inopportune times to repay </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leverage obligations, which could result in realized losses and a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decrease in the Fund's net asset value. Deleveraging involves complex </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operational processes, including the coordination of asset sales, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repayment of debt, and potential restructuring of the Fund's capital and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may involve significant costs, including transaction costs associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the sale of portfolio securities, prepayment penalties on borrowed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">funds, and, if applicable, fees related to the redemption of preferred </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shares. Leveraging transactions pursued by the Fund may increase its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">duration and sensitivity to interest rate changes and other market risks. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may continue to use leverage even if available financing rates </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are higher than anticipated returns, including, for example, in cases </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">where deleveraging, including any expenses related thereto, might be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">viewed as detrimental to the Fund’s portfolio. In addition, fees and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses of any form of leverage used by the Fund will be borne entirely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by the Common Shareholders (and not by preferred shareholders, if any) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and will reduce the investment return of the Common Shares. Therefore, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">there can be no assurance that the Fund’s use of leverage will result in a </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">higher yield on the Common Shares, and it may result in losses. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, any preferred shares issued by the Fund are expected to pay </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cumulative dividends, which may tend to increase leverage risk. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Leverage creates several major types of risks for Common Shareholders, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including:</div></div><div><div style="clear:both;margin-top:6pt;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the likelihood of greater volatility of NAV and market price of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares, and of the investment return to Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders, than a comparable portfolio without leverage;</div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the possibility either that Common Share dividends will fall if the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest and other costs of leverage rise, or that dividends paid on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares will fluctuate because such costs vary over time; </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and</div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the effects of leverage in a declining market or a rising interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate environment, as leverage is likely to cause a greater decline in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the NAV of the Common Shares than if the Fund were not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leveraged.</div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, the counterparties to the Fund’s leveraging transactions and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any preferred shareholders of the Fund will have complete priority of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payment over the Fund’s Common Shareholders.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Reverse repurchase agreements involve the risks that the interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income earned on the investment of the proceeds will be less than the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest expense and Fund expenses associated with the repurchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">agreement, that the market value of the securities sold by the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decline below the price at which the Fund is obligated to repurchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such securities and that the securities may not be returned to the Fund. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There is no assurance that reverse repurchase agreements can be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">successfully employed. Dollar roll/buybacks transactions involve the risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that the market value of the securities the Fund is required to purchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may decline below the agreed upon repurchase price of those securities. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Successful use of dollar rolls/buybacks may depend upon the Investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Manager’s ability to correctly predict interest rates and prepayments. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There is no assurance that dollar rolls/buybacks can be successfully </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">employed. In connection with reverse repurchase agreements and dollar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rolls/buybacks, the Fund will also be subject to counterparty risk with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">respect to the purchaser of the securities. If the broker/dealer to whom </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund sells securities becomes insolvent, the Fund’s right to purchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or repurchase securities may be restricted.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may engage in total return swaps, reverse repurchases, loans </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of portfolio securities, short sales and when-issued, delayed delivery and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">forward commitment transactions, credit default swaps, basis swaps </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other swap agreements, purchases or sales of futures and forward </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">contracts (including foreign currency exchange contracts), call and put </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">options or other derivatives. The Fund’s use of such transactions gives </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rise to associated leverage risks described above, and may adversely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affect the Fund’s income, distributions and total returns to Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders. To the extent that any offsetting positions do not behave </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in relation to one another as expected, the Fund may perform as if it is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leveraged through use of these derivative strategies. Any total return </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">swaps, reverse repurchases, loans of portfolio securities, short sales and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when-issued, delayed delivery and forward commitment transactions, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">credit default swaps, basis swaps and other swap agreements, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchases or sales of futures and forward contracts (including foreign </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currency exchange contracts), call and put options or other derivatives </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by the Fund or counterparties to the Fund’s other leveraging </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions, if any, would have seniority over the Fund’s Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shares.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Because the fees received by the Investment Manager may increase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">depending on the types of leverage utilized by the Fund, the Investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Manager has a financial incentive for the Fund to use certain forms of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leverage, which may create a conflict of interest between the Investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Manager, on the one hand, and the Common Shareholders, on the other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hand. To the extent that any Subsidiary of the Fund directly incurs </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leverage in the form of debt or preferred shares, the amount of such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leverage used by the Fund and such Subsidiaries will be consolidated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and treated as senior securities for purposes of complying with the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">1940 Act’s limitations on leverage by the Fund.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Smaller Company Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The general risks associated with debt instruments or equity securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are particularly pronounced for securities issued by companies with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">small market capitalizations. Small capitalization companies involve </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain special risks. They are more likely than larger companies to have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limited product lines, markets or financial resources, or to depend on a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">small, inexperienced management group. Securities of smaller </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">companies may trade less frequently and in lesser volume than more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">widely held securities and their values may fluctuate more sharply than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other securities. They may also have limited liquidity. These securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may therefore be more vulnerable to adverse developments than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities of larger companies, and the Fund may have difficulty </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchasing or selling securities positions in smaller companies at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prevailing market prices. Also, there may be less publicly available </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">information about smaller companies or less market interest in their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities as compared to larger companies. Companies with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">medium-sized market capitalizations may have risks similar to those of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">smaller companies.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Derivatives Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may, but is not required to, utilize a variety of derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments (both long and short positions) for investment or risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">management purposes. Additionally, the Fund may invest in futures and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other derivatives that provide equity exposures, including for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">equitization and hedging purposes, using derivatives that provide </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exposure that is not identical to the instruments or markets in which the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund seeks to invest 80% of its assets. Derivatives or other similar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments (referred to collectively as “derivatives”) are financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">contracts whose value depends on, or is derived from, the value of an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">underlying asset, reference rate or index. For example, the Fund may use </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivative instruments for purposes of increasing liquidity, providing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">efficient portfolio management, broadening investment opportunities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(including taking short or negative positions), implementing a tax or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cash management strategy, gaining exposure to a particular security or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">segment of the market, modifying the effective duration of the Fund's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio investments and/or enhancing total return. Investments in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives may take the form of buying and/or writing (selling) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives, and/or the Fund may otherwise become an obligor under a </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives transaction. These transactions may produce short-term </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">capital gains in the form of premiums or other returns for the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(which may support, constitute and/or increase the distributions paid by, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or the yield of, the Fund) but create the risk of losses that can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significantly exceed such current income or other returns. For example, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the premium received for writing a call option may be dwarfed by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">losses the Fund may incur if the call option is exercised, and derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions where the Fund is an obligor can produce an up-front </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">benefit, but the potential for leveraged losses. The distributions, or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distribution rates, paid by the Fund should not be viewed as the total </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">returns or overall performance of the Fund. These strategies may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">produce adverse tax consequences (for example, the Fund’s income and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">gain-generating strategies may generate current income and gains, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including short-term capital gains, taxable as ordinary income) and limit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s opportunity to profit or otherwise benefit from certain gains. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may enter into opposing derivative transactions, or otherwise </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">take opposing positions. Such transactions can generate distributable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">gains (which, as noted elsewhere, may be taxed as ordinary income) and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">create the risk of losses and NAV declines.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may engage in investment strategies, including the use of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives, to, among other things, generate current, distributable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income, even if such strategies could potentially result in declines in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s net asset value. The Fund’s income and gain-generating </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strategies, including certain derivatives strategies, may generate current </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income and gains, including short-term capital gains, taxable as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ordinary income sufficient to support distributions, even in situations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when the Fund has experienced a decline in net assets due to, for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">example, adverse changes in the broad U.S. or non-U.S. securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">markets or the Fund’s portfolio of investments, or arising from its use of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives. Consequently, Fund shareholders may receive distributions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to tax at ordinary income rates at a time when their investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in the Fund has declined in value, which may be economically similar to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a taxable return of capital.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The use of derivatives involves risks different from, and possibly greater </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">than, the risks associated with investing directly in securities and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">traditional investments. Derivatives, which may increase market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exposure and are subject to a number of risks including leverage risk, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidity risk (which may be heightened for highly customized </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives), interest rate risk, market risk, counterparty (including credit) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk, operational risk (such as documentation issues, settlement issues </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and systems failures), legal risk (such as insufficient documentation, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">insufficient capacity or authority of a counterparty, and issues with the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">legality or enforceability of a contract), management risk, risks arising </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from changes in applicable regulatory requirements, governmental risk, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sanctions risk, risks arising from margin requirements and risks arising </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from mispricing or valuation complexity (including the risk of improper </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">valuation), as well as the risks associated with the underlying asset, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reference rate or index. They also involve the risk that changes in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of a derivative instrument may not correlate perfectly with the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">underlying asset, rate or index. By investing in a derivative instrument, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund could lose more than the initial amount invested, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives may increase the volatility of the Fund, especially in unusual </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or extreme <div style="display:inline;">marke</div>t conditions. In addition, the use of derivatives may </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cause the Fund’s investment returns to be impacted by the performance </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of assets the Fund does not own, potentially resulting in the Fund’s total </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment exposure exceeding the value of its portfolio. Certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives have the potential for unlimited loss, regardless of the size of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the initial investment. The Fund may utilize asset segregation and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">posting of collateral for risk management or other purposes. The Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be required to hold additional cash or sell other investments in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">order to obtain cash to close out a position and changes in the value of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a derivative may also create margin delivery or settlement payment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations for the Fund. Also, suitable derivative transactions may not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be available in all circumstances and there can be no assurance that the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund will engage in these transactions to reduce exposure to other risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when that would be beneficial or that, if used, such strategies will be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">successful. The Fund's use of derivatives may increase or accelerate the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">amount of taxes payable by Common Shareholders.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Non-centrally-cleared Over-the-counter (”OTC“) derivatives are also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to the risk that a counterparty to the transaction will not fulfill </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its contractual obligations to the other party, as many of the protections </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">afforded to centrally cleared derivative transactions might not be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">available for non-centrally-cleared OTC derivatives. The primary credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk on derivatives that are exchange-traded or traded through a central </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">clearing counterparty resides with the Fund's clearing broker, or the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">clearinghouse.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Derivatives that are cleared by a central clearing organization can still </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be subject to different risks, including the creditworthiness of the central </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">clearing organization and its members.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, derivatives that are traded on an exchange are subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the risk that an exchange may limit the maximum daily price fluctuation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of a derivative contract and restrict or suspend trading of a contract that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">has reached a limit. Such limit governs only price movements of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">contract during a particular trading day and therefore does not limit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potential losses because the limit may work to prevent the liquidation of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unfavorable positions. A daily limit may be reached for several </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consecutive days with little or no trading.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Participation in the markets for derivative instruments involves </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment risks and transaction costs to which the Fund may not be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject absent the use of these strategies. The skills needed to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">successfully execute derivative strategies may be different from those </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">needed for other types of transactions. If the Fund incorrectly forecasts </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the value and/or creditworthiness of securities, currencies, interest rates, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">counterparties or other economic factors involved in a derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transaction, the Fund might have been in a better position if the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">had not entered into such derivative transaction. In evaluating the risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and contractual obligations associated with particular derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments or other similar investments, it is important to consider that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain derivative transactions, absent a default or termination event, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may only be modified or terminated by mutual consent of the Fund and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its counterparty.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Therefore, it may not be possible for the Fund to modify, terminate, or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">offset the Fund's obligations or the Fund's exposure to the risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with a derivative transaction prior to its scheduled </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">termination or maturity date, which may create a possibility of increased </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">volatility and/or decreased liquidity to the Fund. Hedges are sometimes </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to imperfect matching between the derivative and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">underlying instrument, and there can be no assurance that the Fund's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hedging transactions will be effective. Derivatives used for hedging or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk management may not operate as intended and may expose the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund to additional risks. In such case, the Fund may experience losses.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Because the markets for certain derivative instruments (including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">markets located in foreign countries) are relatively new and still </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">developing, appropriate derivative transactions may not be available in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">all circumstances for risk management or other purposes. Upon the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expiration of a particular contract, the Fund may wish to retain the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s position in the derivative instrument by entering into a similar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">contract but may be unable to do so if the counterparty to the original </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">contract is unwilling to enter into the new contract and no other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">appropriate counterparty can be found. When such markets are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unavailable, the Fund will be subject to increased liquidity and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment risk.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may enter into opposite sides of interest rate swap and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives for the principal purpose of generating distributable gains on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the one side (characterized as ordinary income for tax purposes) that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are not part of the Fund’s duration or yield curve management </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strategies (“paired swap transactions”), and with a substantial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">possibility that the Fund will experience a corresponding capital loss </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and decline in NAV with respect to the opposite side transaction (to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extent it does not have corresponding offsetting capital gains).</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Consequently, Common Shareholders may receive distributions and owe </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tax on amounts that are effectively a taxable return of the shareholder’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment in the Fund, at a time when their investment in the Fund has </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">declined in value, which tax may be at ordinary income rates. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, the Fund’s use of derivatives may cause the Fund to realize </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">higher amounts of short-term capital gains (generally taxed at ordinary </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income tax rates), potentially subjecting shareholders of the Fund to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adverse tax consequences. The tax treatment of certain derivatives in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which the Fund invests may be unclear and thus subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">recharacterization. Any recharacterization of payments made or received </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by the Fund pursuant to derivatives potentially could affect the amount, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">timing or character of Fund distributions. In addition, the tax treatment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of such investment strategies may be changed by regulation or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">More generally, sales of the Fund’s portfolio holdings may result in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">short-term capital gains (which are generally taxed to shareholders at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ordinary income tax rates when distributed net of short-term capital </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">losses and net of long-term capital losses), potentially subjecting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shareholders of the Fund to adverse tax consequences.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Although hedging can reduce or eliminate losses, it can also reduce or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">eliminate gains. Hedges are sometimes subject to imperfect matching </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">between the derivative and the underlying instrument, and there can be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">no assurance that the Fund's hedging transactions will be effective.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Derivatives used for hedging or risk management may not operate as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intended or may expose the Fund to additional risks. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives used for hedging may partially protect the Fund from the </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risks they were intended to hedge yet not fully mitigate the impact of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such risks. The regulation of the derivatives markets has increased over </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">time, and additional future regulation of the derivatives markets may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make derivatives more costly, may limit the availability or reduce the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidity of derivatives, or may otherwise adversely affect the value or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">performance of derivatives. Any such adverse future developments could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impair the effectiveness or raise the costs of the Fund’s derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions, impede the employment of the Fund’s derivatives </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strategies, or adversely affect the Fund’s performance and cause the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund to lose value.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Credit Default Swaps Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Credit default swap agreements may involve greater risks than if the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund had invested in the reference obligation directly since, in addition </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to general market risks, credit default swaps are subject to leverage risk, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">illiquidity risk, counterparty risk and credit risk. A buyer generally also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will lose its investment and recover nothing should no credit event occur </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and the swap is held to its termination date. If a credit event were to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">occur, the value of any deliverable obligation received by the seller (if </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any), coupled with the upfront or periodic payments previously received, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be less than the full notional value it pays to the buyer, resulting in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a loss of value to the seller. When the Fund acts as a seller of a credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">default swap, it is exposed to many of the same risks of leverage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">described herein. As the seller, the Fund would receive a stream of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments over the term of the swap agreement provided that no event </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of default has occurred with respect to the referenced debt obligation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">upon which the swap is based. The Fund would effectively add leverage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to its portfolio because, if a default occurs, the stream of payments may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">stop and, in addition to its total net assets, the Fund would be subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment exposure on the notional amount of the swap.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Although the Fund may seek to realize gains by selling credit default </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">swaps that increase in value, to realize gains on selling credit default </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">swaps, an active secondary market for such instruments must exist or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund must otherwise be able to close out these transactions at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">advantageous times. In addition to the risk of losses described above, if </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">no such secondary market exists or the Fund is otherwise unable to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">close out these transactions at advantageous times, selling credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">default swaps may not be profitable for the Fund.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The market for credit default swaps has become more volatile as the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">creditworthiness of certain counterparties has been questioned and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">downgraded. The Fund will be subject to credit risk with respect to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">counterparties to the credit default swap contract (whether a clearing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">corporation or another third party). If a counterparty’s credit becomes </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significantly impaired, multiple requests for collateral posting in a short </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">period of time could increase the risk that the Fund may not receive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adequate collateral. The Fund may exit its obligations under a credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">default swap only by terminating the contract and paying applicable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">breakage fees, or by entering into an offsetting credit default swap </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">position, which may cause the Fund to incur more losses. The Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obtain no or limited recovery in a bankruptcy or other reorganizational </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">proceedings, and any recovery may be significantly delayed.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Counterparty Risk</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund will be subject to credit risk with respect to the counterparties </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the derivative contracts and other instruments entered into by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund or held by special purpose or structured vehicles in which the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invests. For example, if a bank at which the Fund or issuer has an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">account fails, any cash or other assets in bank or custody accounts, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which may be substantial in size, could be temporarily inaccessible or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">permanently lost by the Fund or issuer. In the event that the Fund enters </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">into a derivative transaction with a counterparty that subsequently </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">becomes insolvent or becomes the subject of a bankruptcy case, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivative transaction may be terminated in accordance with its terms </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and the Fund’s ability to realize its rights under the derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instrument and its ability to distribute the proceeds could be adversely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affected. If a counterparty becomes bankrupt or otherwise fails to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">perform its obligations under a derivative contract due to financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficulties, the Fund may experience significant delays in obtaining any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">recovery (including recovery of any collateral it has provided to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">counterparty) in a dissolution, assignment for the benefit of creditors, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidation, winding-up, bankruptcy, or other analogous proceeding. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, in the event of the insolvency of a counterparty to a derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transaction, the derivative transaction would typically be terminated at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its fair market value. If the Fund is owed this fair market value in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">termination of the derivative transaction and its claim is unsecured, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund will be treated as a general creditor of such counterparty, and will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not have any claim with respect to any underlying security or asset. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may obtain only a limited recovery or may obtain no recovery in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such circumstances. Counterparty credit risk also includes the related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk of having concentrated exposure to a single counterparty, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may increase potential losses if the counterparty were to become </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">insolvent. While the Fund may seek to manage its counterparty risk by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transacting with a number of counterparties, concerns about the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">solvency of, or a default by, one large market participant could lead to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significant impairment of liquidity and other adverse consequences for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other counterparties.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Repurchase Agreements Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may enter into repurchase agreements, in which the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchases a security from a bank or broker-dealer, which agrees to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repurchase the security at the Fund’s cost plus interest within a specified </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">time. Entering into repurchase agreements allows the Fund to earn a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">return on cash in the Fund's portfolio that would otherwise remain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">un-invested. Repurchase agreements may involve risks in the event of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">default or insolvency of the counterparty, including possible delays or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">restrictions upon the Fund's ability to sell the underlying securities and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">additional expenses in seeking to enforce the Fund's rights and recover </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any losses. Although the Fund seeks to limit the credit risk under a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repurchase agreement by carefully selecting counterparties and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">accepting only high quality collateral, some credit risk remains. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">counterparty could default which may make it necessary for the Fund to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">incur expenses to liquidate the collateral. The security subject to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repurchase agreement may be or become illiquid. These events could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">also trigger adverse tax consequences for the Fund.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In December 2023, the U.S. Securities and Exchange Commission </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adopted rule amendments that are expected to result in the Fund being </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to clear all or substantially all of its repurchase agreements </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collateralized by U.S. Treasury securities as of June 30, 2027 where a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">direct participant in any covered clearing agency is the counterparty. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may incur costs in connection with entering into new agreements </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(or amending existing agreements) with counterparties who are direct </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participants of a covered clearing agency and potentially other market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participants and taking other actions to comply with the new </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requirements. In addition, upon the compliance date, the costs and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">benefits of entering into repurchase agreements collateralized by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. Treasury securities to the Fund may be impacted as compared to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such repurchase agreements prior to the compliance date.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Collateralized Bond Obligations, Collateralized Loan </div></div><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Obligations and Collateralized Debt Obligations Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">CBOs, CLOs and CDOs may charge management fees and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">administrative expenses. For CBOs, CLOs and CDOs, the cash flows from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the trust are split into two or more portions, called tranches, varying in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk and yield. The riskiest portion is the equity tranche which generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bears losses in connection with the first defaults, if any, on the bonds or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans in the trust. A senior tranche from a CLO, CBO and CDO trust </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">typically has higher credit ratings and lower yields than the underlying </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities. CLO tranches, CBO, and CDO, even senior ones, can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">experience substantial losses due to actual defaults, increased sensitivity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to defaults due to collateral default and disappearance of protecting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tranches, market anticipation of defaults and aversion to CLO, CBO or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other CDO securities. The risks of an investment in a CBO, CLO or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">CDO vary depending on the type of collateral securities and the class of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the instrument in which the Fund invests, among other factors.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Normally, CLOs, CBOs and other CDOs are privately offered and sold, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and thus are not registered under the securities laws. Investments in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">CLOs, CBOs and CDOs may be or become illiquid. In addition to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">normal risks associated with debt instruments (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">e.g.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, interest rate risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and credit risk), CLOs, CBOs and CDOs carry additional risks including, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">but not limited to: (i) the possibility that distributions from the collateral </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will not be adequate to make interest or other payments; (ii) the risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that the quality of the collateral may decline in value or default; (iii) the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk that the Fund may invest in CBOs, CLOs or other CDOs that are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subordinate to other classes; and (iv) the risk that the complex structure </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the security may not be fully understood at the time of investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and may produce disputes with the issuer or others and may produce </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unexpected investment results.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Equity Securities and Related Market Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The market price of common stocks and other equity securities may go </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">up or down, sometimes rapidly or unpredictably. Equity securities may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decline in value due to factors affecting equity securities markets </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally, particular industries represented in those markets, or the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuer itself. The values of equity securities may decline due to real or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">perceived adverse economic conditions, changes in the general outlook </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for corporate earnings, changes in interest or currency rates adverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes to credit markets or adverse investor sentiment generally. They </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may also decline due to labor shortages or increased production costs </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and competitive conditions within an industry. Equity securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally have greater price volatility than bonds and other debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Different types of equity securities provide different voting and dividend </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rights and priority in the event of the bankruptcy and/or insolvency of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the issuer. In addition to common stock, equity securities may include </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">preferred securities, convertible securities and warrants. Equity securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other than common stock are subject to many of the same risks as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">common stock, although possibly to different degrees. The risks of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">equity securities are generally magnified in the case of equity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments in distressed companies.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Preferred Securities Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition to equity securities risk, credit risk and possibly high yield </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk, investment in preferred securities involves certain other risks. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain preferred securities contain provisions that allow an issuer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">under certain conditions to skip or defer distributions. If the Fund owns </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a preferred security that is deferring its distribution, the Fund may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to include the amount of the deferred distribution in its taxable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income for tax purposes although it does not currently receive such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">amount in cash. In order to receive the special treatment accorded to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">RICs and their shareholders under the Code and to avoid U.S. federal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income and/or excise taxes at the Fund level, the Fund may be required </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to distribute this income to shareholders in the tax year in which the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income is recognized (without a corresponding receipt of cash by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund). Therefore, the Fund may be required to pay out as an income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distribution in any such tax year an amount greater than the total </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">amount of cash income the Fund actually received and to sell portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities, including at potentially disadvantageous times or prices, to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obtain cash needed for these income distributions. Preferred securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">often are subject to legal provisions that allow for redemption in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">event of certain tax or legal changes or at the issuer’s call. In the event </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of redemption, the Fund may not be able to reinvest the proceeds at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">comparable rates of return. Preferred securities are subordinated to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bonds and other debt securities in an issuer’s capital structure in terms </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of priority for corporate income and liquidation payments, and therefore </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will be subject to greater credit risk than those debt securities. Preferred </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities may trade less frequently and in a more limited volume and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be subject to more abrupt or erratic price movements than many </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other securities.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Insurance-Linked and Other Instruments Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in insurance-linked instruments and similar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments (which may include, for example, exposure to reinsurance </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">contracts (through sidecars or otherwise), event-linked bonds, such as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">catastrophe and resilience bonds, and securities relating to life </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">insurance policies, annuity contracts and premium finance loans). The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund could lose a portion or all of the principal it has invested in these </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">types of investments, and the right to additional interest and/or dividend </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments with respect to the investments, upon the occurrence of one </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or more trigger events, as defined within the terms of an investment.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Trigger events may include natural or other perils of a specific size or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">magnitude that occur in a designated geographic region during a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">specified time period, and/or that involve losses or other metrics that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exceed a specific amount. The Fund may also invest in insurance-linked </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments that are subject to “indemnity triggers.” An indemnity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">trigger is a mechanism where the payout to the investor is based on the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">actual losses incurred by the insurer and come into play when losses </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from a specified event exceed a designated level. Insurance-linked </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments subject to indemnity triggers are often regarded as being </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to potential moral hazard, since such insurance-linked </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments are triggered by actual losses of the ceding sponsor and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ceding sponsor may have an incentive to take actions and/or risks that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">would have an adverse effect on the Fund. There is no way to accurately </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">predict whether a trigger event will occur and, accordingly, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">insurance-linked instruments and similar investments carry significant </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk. In addition to the specified trigger events, these types of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments may expose the Fund to other risks, including but not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limited to issuer (credit) default, adverse regulatory or jurisdictional </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interpretations and adverse tax consequences.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may also gain exposure to reinsurance contracts (through </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">insurance-linked securities, sidecars or otherwise). This exposure may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">include “excess of loss” contracts, wherein liability arises only if and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when losses exceed a specified amount, and proportional reinsurance, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">wherein a pro rata portion of the premiums and liabilities of the cedant </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with a specified business or a portfolio if insurance contracts </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are linked to the investment. Investments linked to reinsurance </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions may involve significant insurance brokerage fees, fronting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fees and other transaction costs.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">A series of major triggering events could cause the failure of a reinsurer. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Similarly, to the extent the Fund invests in reinsurance-related securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for which a triggering event occurs, losses associated with such event </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will result in losses to the Fund and a series of major triggering events </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affecting a large portion of the reinsurance-related securities held by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may result in substantial losses to the Fund. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unexpected events such as natural disasters or terrorist attacks could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lead to government intervention. Political, judicial and legal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">developments affecting the reinsurance industry could also create new </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and expanded theories of liability or regulatory or other requirements; </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such changes could have a material adverse effect on the Fund. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, the litigation environment in catastrophe-exposed states or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regions could impact the frequency and severity of insurance claims, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">litigation costs could decrease the value of the Fund's investment in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">products linked to reinsurance contracts. In recent years, capital market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participants have been increasingly active in the reinsurance market and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">markets for related risks. Increased competition could result in fewer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">submissions, lower premium rates and less favorable policy terms and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain insurance-linked instruments and similar investments may have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limited liquidity, or may be illiquid. The Fund has limited transparency </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">into the individual contracts underlying certain insurance-linked </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments and similar investments, which may make the risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assessment of them more difficult. These types of investments may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficult to value.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The aforementioned instruments may include longevity and mortality </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments, including indirect investment in pools of insurance-related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">longevity and mortality investments, including life insurance policies, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">annuity contracts and premium finance loans. Such investments are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to “longevity risk” and/or “mortality risk.” Longevity risk is the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk that members of a reference population will live longer, on average, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">than anticipated. Mortality risk is the risk that members of a reference </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">population will live shorter, on average, than anticipated. Changes in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these rates can significantly affect the liabilities and cash needs of life </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">insurers, annuity providers and pension funds. The terms of a longevity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bond typically provide that the investor in the bond will receive less than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the bond’s par amount at maturity if the actual average longevity (life </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">span) of a specified population of people observed over a specified </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">period of time (typically measured by a longevity index) is higher than a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">specified level. If longevity is higher than expected, the bond will return </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">less than its par amount at maturity. A mortality bond, in contrast to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">longevity bond, typically provides that the investor in the bond will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">receive less than the bond’s par amount at maturity if the mortality rate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of a specified population of people observed over a specified period of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">time (typically measured by a mortality index) is higher than a specified </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">level.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">During their term, both longevity bonds and mortality bonds typically </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pay a floating rate of interest to investors. Longevity and mortality </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments purchased by the Fund involve the risk of incorrectly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">predicting the actual level of longevity or mortality, as applicable, for the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reference population of people. With respect to mortality investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">held by the Fund, there is also the risk that an epidemic or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">catastrophic event could strike the reference population, resulting in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortality rates exceeding expectations. The Fund may also gain this type </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of exposure through event-linked derivative instruments, such as swaps, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that are contingent on or formulaically related to longevity or mortality </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Private Placements and Restricted Securities Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">A private placement involves the sale of securities that have not been </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">registered under the Securities Act or relevant provisions of applicable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-U.S. law to certain institutional and qualified individual purchasers, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such as the Fund. In addition to the general risks to which all securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are subject, securities received in a private placement generally are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to strict restrictions on resale, and there may be no liquid </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">secondary market or ready purchaser for such securities. See “Principal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Risks of the Fund – Liquidity Risk.” Therefore, the Fund may be unable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to dispose of such securities when it desires to do so, or at the most </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">favorable time or price. Private placements may also raise valuation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risks. See “Principal Risks of the Fund – Valuation Risk.”</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may also have to bear the expense of registering the securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for resale and the risk of substantial delays in effecting the registration. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Additionally, the purchase price and subsequent valuation of private </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">placements typically reflect a discount, which may be significant, from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the market price of comparable securities for which a more liquid </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market exists.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Securities Lending Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">For the purpose of achieving income, the Fund may lend its portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities to brokers, dealers, and other financial institutions provided a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">number of conditions are satisfied, including that the loan is fully </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collateralized. Please see “Investment Objectives and Policies—Loans of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Portfolio Securities” in the Statement of Additional Information for more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">details. When the Fund lends portfolio securities, its investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">performance will continue to reflect changes in the value of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities loaned, and the Fund will also receive a fee or interest on the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collateral. Securities lending involves the risk of loss of rights in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collateral or delay in recovery of the collateral if the borrower fails to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">return the security loaned or becomes insolvent. The Fund may pay </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lending fees to a party arranging the loan. Cash collateral received by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund in securities lending transactions may be invested in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">short-term liquid fixed income instruments or in money market or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">short-term mutual funds, or similar investment vehicles, including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affiliated money market or short-term mutual funds. The Fund bears the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk of such investments.</div></div></div><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;"> </div></div></div></div><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Inflation/Deflation Risk</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Inflation risk is the risk that the value of assets or income from the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s investments will be worth less in the future as inflation decreases </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the value of payments at future dates. As inflation increases, the real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of the Fund’s portfolio could decline. Inflation rates may change </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">frequently and significantly as a result of various factors, including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unexpected shifts in the domestic or global economy or changes in fiscal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or monetary policies. Deflation risk is the risk that prices throughout the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economy decline over time. Deflation may have an adverse effect on the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">creditworthiness of issuers and may make issuer default more likely, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which may result in a decline in the value of the Fund’s portfolio and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Regulatory Changes Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Financial entities, such as investment companies and investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">advisers, are generally subject to extensive government regulation and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intervention. Government regulation and/or intervention may change </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the way the Fund is regulated, affect the expenses incurred directly by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund and the value of its investments, and limit and /or preclude the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s ability to achieve its investment objectives. Government </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulation may change frequently and may have significant adverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consequences. The Fund and the Investment Manager have historically </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">been eligible for exemptions from certain regulations. However, there is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">no assurance that the Fund and the Investment Manager will continue </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to be eligible for such exemptions.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Moreover, government regulation may have unpredictable and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unintended effects. Legislative or regulatory actions to address </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">perceived liquidity or other issues in fixed income markets generally, or </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in particular markets such as the municipal securities market, may alter </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or impair the Fund’s ability to pursue its investment objectives or utilize </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain investment strategies and techniques.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">While there continues to be uncertainty about the full impact of these </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other regulatory changes, it is the case that the Fund will be subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to a more complex regulatory framework, and may incur additional </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">costs to comply with new requirements as well as to monitor for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">compliance in the future. Actions by governmental entities may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact certain instruments in which the Fund invests and reduce market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidity and resiliency.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Recent policy initiatives undertaken by the U.S. government have the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potential to impact international relations, trade agreements, and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">overall regulatory environment in ways that could create uncertainty </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and instability in domestic and global markets, and could adversely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affect the investment performance of the Fund. In particular, actions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taken by the U.S. government in respect of international trade relations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could lead to trade wars, increased costs for imported goods, disruptions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in supply chains, reduced foreign investment, and instability in regions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">where the Fund invests.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Regulatory Risk—Commodity Pool Operator</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The CFTC has adopted regulations that subject registered investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">companies and their investment advisers to regulation by the CFTC if </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the registered investment company invests more than a prescribed level </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of its liquidation value in futures, options on futures or commodities, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">swaps, or other financial instruments regulated under the CEA and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rules thereunder (“commodity interests”), or if the Fund markets itself </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as providing investment exposure to such instruments.  The Investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Manager is registered with the CFTC as a CPO. However, with respect to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund, the Investment Manager has claimed an exclusion from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">registration as a CPO pursuant to CFTC Rule 4.5. For the Investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Manager to remain eligible for this exclusion, the Fund must comply </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with certain limitations, including limits on its ability to use any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commodity interests and limits on the manner in which the Fund holds </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">out its use of such commodity interests. These limitations may restrict </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s ability to pursue its investment objectives and strategies, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increase the costs of implementing its strategies, result in higher </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses for the Fund, and/or adversely affect the Fund’s total return. To </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the extent the Investment Manager becomes ineligible for this exclusion </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from CFTC regulation, the Investment Manager may consider steps in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">order to continue to qualify for exemption from CFTC regulation, or may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">determine to operate the Fund subject to CFTC regulation.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Liquidity Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Liquidity risk exists when particular investments are difficult to purchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or sell. Illiquid investments are investments that the Fund reasonably </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expects cannot be sold or disposed of in current market conditions in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">seven calendar days or less without the sale or disposition significantly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changing the market value of the investment. Illiquid investments may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">become harder to value, especially in changing markets. The Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments in illiquid investments may reduce the returns of the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">because it may be unable to sell the illiquid investments at an </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">advantageous time or price or possibly require the Fund to dispose of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other investments at unfavorable times or prices in order to satisfy its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations, which could prevent the Fund from taking advantage of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other investment opportunities. Illiquidity can be caused by, among </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other things, a drop in overall market trading volume, an inability to find </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a willing buyer, or legal restrictions on the securities’ resale, capital </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">controls, delays or limits on repatriation of local currency, or insolvency </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of local governments. Additionally, the market for certain investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may become illiquid under adverse market or economic conditions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">independent of any specific adverse changes in the conditions of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particular issuer, such as during changes in interest rates, elevated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">volatility, market or geopolitical disruptions, economic uncertainty or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">public health crises. There can be no assurance that an investment that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">is deemed to be liquid when purchased will continue to be liquid while </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">it is held by a fund and/or when a fund wishes to dispose of it. Bond </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">markets have consistently grown over time while the capacity for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">traditional dealer counterparties to engage in fixed income trading has </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not kept pace with the growth of bond markets and may remain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">constrained. As a result, dealer inventories of corporate bonds, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provide a core indication of the ability of financial intermediaries to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“make markets,” remain limited relative to the size of the market. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Because market makers seek to provide stability to a market through </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">their intermediary services, the significant reduction in dealer inventories </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could potentially lead to decreased liquidity and increased volatility in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the fixed income markets, especially during periods of economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">uncertainty or market stress. In such cases, the Fund, due to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficulty in purchasing and selling such securities or instruments, may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be unable to achieve its desired level of exposure to a certain sector. To </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the extent that the Fund’s principal investment strategies involve </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities of companies with smaller market capitalizations, foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(non-U.S.) securities, Rule 144A securities, illiquid sectors of fixed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income securities, derivatives or securities with substantial market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and/or credit risk, the Fund will tend to have the greatest exposure to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidity risk.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Further fixed income securities with longer durations until maturity face </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">heightened levels of liquidity risk as compared to fixed income securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with shorter durations until maturity. The risks associated with illiquid </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments may be particularly acute in situations in which the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operations require cash (such as in connection with repurchase offers) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and could result in the Fund borrowing to meet its short-term needs or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">incurring losses on the sale of illiquid instruments. It may also be the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">case that other market participants may be attempting to liquidate fixed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income holdings at the same time as the Fund, causing increased supply </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in the market and contributing to liquidity risk and downward pricing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pressure.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Liquidity risk also refers to the risk that the Fund may be required to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hold additional cash or sell other investments in order to obtain cash to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">close out derivatives or meet the liquidity demands that derivatives can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">create to make payments of margin, collateral, or settlement payments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to counterparties. The Fund may have to sell a security at a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disadvantageous time or price to meet such obligations.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The actions of governments and regulators may have the effect of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reducing market liquidity, market resiliency and money supply.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Structured Investments Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Holders of structured products, including structured notes, credit-linked </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">notes and other types of structured products, bear the risks of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">underlying investments, index or reference obligation and are subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">counterparty risk. The Fund may have the right to receive payments only </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from the structured product, and generally does not have direct rights </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">against the issuer or the entity that sold the assets to be securitized. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">While certain structured products enable the investor to acquire </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interests in a pool of securities without the brokerage and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses associated with directly holding the same securities, investors </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in structured products generally pay their share of the structured </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">product’s administrative and other expenses. Although it is difficult to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">predict whether the prices of indexes and securities underlying </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">structured products will rise or fall, these prices (and, therefore, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prices of structured products) are generally influenced by the same types </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of political and economic events that affect issuers of securities and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">capital markets generally. If the issuer of a structured product uses </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shorter term financing to purchase longer term securities, the issuer may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be forced to sell its securities at below market prices if it experiences </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficulty in obtaining such financing, which may adversely affect the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of the structured products owned by the Fund. Structured </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">products generally entail risks associated with derivative instruments. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">See ”Principal Risks of the Fund—Derivatives Risk.“</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Tax Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund has elected to be treated as a RIC under Subchapter M of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Code and intends each year to qualify and be eligible to be treated as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such, so that it generally will not be subject to U.S. federal income tax </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on its net investment income or net short-term or long-term capital </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">gains that are timely distributed (or deemed distributed, as described </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">below) to shareholders. In order to qualify and be eligible for such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">treatment, the Fund must meet certain asset diversification tests, derive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">at least 90% of its gross income for such year from certain types of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">qualifying income, and distribute to its shareholders at least 90% of its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“investment company taxable income” as that term is defined in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Code (which includes, among other things, dividends, taxable interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and the excess of any net short-term capital gains over net long-term </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">capital losses, as reduced by certain deductible expenses) and net </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tax-exempt income, for such year.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investment strategy will potentially be limited by its intention </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to continue qualifying for treatment as a RIC and can limit the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability to continue qualifying as such. The tax treatment of certain of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s investments under one or more of the qualification or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distribution tests applicable to RICs is uncertain. An adverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">determination or future guidance by the IRS or a change in law might </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affect the Fund’s ability to qualify or be eligible for for treatment as a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">RIC. Income and gains from certain of the Fund's activities may not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">constitute qualifying income to a RIC for purposes of the 90% gross </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income test. If the Fund’s income or gain from a particular investment or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">activity were determined to constitute non<div style="display:inline;">qualifyi</div>ng income, which in </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain cases may be determined retroactively, and the Fund's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">nonqualifying income from all sources were to exceed 10% of its gross </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income in any taxable year, the Fund would fail to qualify as a RIC </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unless it were eligible to and did pay a tax at the Fund level. See </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“Taxation” in the Statement of Additional Information for additional </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">details.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">If, in any year, the Fund were to fail to qualify for treatment as a RIC </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">under the Code and were ineligible to or did not otherwise cure such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">failure, the Fund would be subject to tax on its taxable income at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">corporate rates and, when such income is distributed, shareholders </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">would be subject to further tax on such distributions to the extent of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund's current or accumulated earnings and profits.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To the extent the Fund invests through one or more Subsidiaries, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may be required to include in gross income for U.S. federal income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tax purposes all of the Subsidiary’s income, whether or not such income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">is distributed by the Subsidiary, and the Fund may generally have to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">treat such income as ordinary income, regardless of the character of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Subsidiary’s underlying income or gains. If a net loss is realized by a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Subsidiary, such loss is not generally available to offset the income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">earned by the Fund, and such loss cannot be carried forward to offset </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taxable income of the Fund or the Subsidiary in future periods.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Subsidiary Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To the extent the Fund invests through one or more of its wholly-owned </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Subsidiaries, the Fund would be exposed to the risks associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such Subsidiary’s investments. Such Subsidiaries would likely not be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">registered as investment companies under the 1940 Act and, except as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">noted in this prospectus, would not be subject to all of the investor </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">protections of the 1940 Act. Changes in the laws of the United States </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and/or the jurisdiction in which a Subsidiary is organized could result in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the inability of the Fund and/or the Subsidiary to operate as intended </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and could adversely affect the Fund.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Portfolio Turnover Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Investment Manager manages the Fund without regard generally to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">restrictions on portfolio turnover. The use of futures contracts and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivative instruments with relatively short maturities may tend to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exaggerate the portfolio turnover rate for the Fund. Trading in fixed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income securities does not generally involve the payment of brokerage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commissions, but does involve indirect transaction costs. The use of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">futures contracts and other derivative instruments may involve the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payment of commissions to futures commission merchants or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intermediaries. Higher portfolio turnover involves correspondingly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">greater expenses to the Fund, including brokerage commissions or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dealer mark-ups and other transaction costs on the sale of securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and reinvestments in other securities. The higher the rate of portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">turnover of the Fund, the higher these transaction costs borne by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund generally will be. Such sales may result in realization of taxable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">capital gains (including short-term capital gains, which are generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taxed to shareholders at ordinary income tax rates when distributed net </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of short-term capital losses and net long-term capital losses), and may </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely impact the Fund’s after-tax returns. The realization of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">short-term capital gains may also cause adverse tax consequences for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s shareholders. See “Tax Matters.”</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Operational Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">An investment in the Fund, like any fund, can involve operational and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">technology risks arising from factors such as processing errors, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">communication errors, human errors, inadequate or failed internal or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">external processes, failures in systems and technology, cybersecurity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">incidents, the potential use of artificial intelligence and machine </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">learning (AI), changes in personnel and errors caused by third-party </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">service providers. The occurrence of any of these failures, errors or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">breaches could result in a loss of information, regulatory scrutiny, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reputational damage or other events, any of which could have a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">material adverse effect on the Fund. Operational and technology risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for the issuers could also result in material adverse consequences for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such issuers and may cause the Fund's investments in such issuers to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lose value. While the Fund seeks to minimize such events through </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">controls and oversight, there may still be failures that could cause losses </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the Fund.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Other Investment Companies Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">When investing in an investment company, the Fund will generally bear </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its ratable share of that investment company's expenses, and would </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">remain subject to payment of the Fund's investment management fees </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other expenses with respect to assets so invested. Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders would therefore be subject to duplicative expenses to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extent the Fund invests in other investment companies. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these other investment companies may utilize leverage, in which case </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">an investment would subject the Fund to additional risks associated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with leverage. Due to its own financial interest or other business </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">considerations, the Investment Manager may choose to invest a portion </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the Fund's assets in investment companies sponsored or managed by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Investment Manager or its related parties in lieu of investments by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund directly in portfolio securities, or may choose to invest in such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment companies over investment companies sponsored or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">managed by others. Participation in a cash sweep program where the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund's uninvested cash balance is used to purchase shares of affiliated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or unaffiliated money market funds or cash management pooled </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment vehicles at the end of each day subjects the Fund to the risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with the underlying money market funds or cash </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">management pooled investment vehicles, including liquidity risk. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Applicable law may limit the Fund's ability to invest in other investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">companies. See “Principal Risks of the Fund-Leverage Risk.”</div></div></div><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Privacy and Data Security Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Gramm-Leach-Bliley Act (”GLBA“) and other laws limit the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disclosure of certain non-public personal information about a consumer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to non-affiliated third parties and require financial institutions to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disclose certain privacy policies and practices with respect to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">information sharing with both affiliates and non-affiliated third parties. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Many states and a number of non-U.S. jurisdictions have enacted </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">privacy and data security laws requiring safeguards on the privacy and </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">security of consumers’ personally identifiable information. Other laws </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deal with obligations to safeguard and dispose of private information in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a manner designed to avoid its dissemination. Privacy rules adopted by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the U.S. Federal Trade Commission and SEC implement the GLBA and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other requirements and govern the disclosure of consumer financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">information by certain financial institutions, ranging from banks to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">private investment funds. U.S. platforms following certain models </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally are required to have privacy policies that conform to these </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">GLBA and other requirements. In addition, such platforms typically have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">policies and procedures intended to maintain platform participants’ </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">personal information securely and dispose of it properly.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund generally does not intend to obtain or hold borrowers’ </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-public personal information, and the Fund has implemented </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">procedures reasonably designed to prevent the disclosure of borrowers’ </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-public personal information to the Fund. However, service providers </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the Fund or its Subsidiaries, including their custodians and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">platforms acting as loan servicers for the Fund or its Subsidiaries, may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obtain, hold or process such information. The Fund and entities that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interact with the Fund, including service providers, custodians and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">platforms are susceptible to operational, information security and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">related cybersecurity risks. The Fund cannot guarantee the security of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-public personal information in the possession of such a service </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provider and cannot guarantee that service providers have been and will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">continue to comply with the GLBA, other data security and privacy laws </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and any other related regulatory requirements. Violations of the GLBA </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other laws could subject the Fund to litigation and/or fines, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">penalties or other regulatory action, which, individually or in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">aggregate, could have an adverse effect on the Fund. The Fund may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">face regulations related to privacy and data security in the other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">jurisdictions in which the Fund invests.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Confidential Information Access Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In managing the Fund (and other PIMCO clients), PIMCO may from time </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to time have the opportunity to receive material, non-public information </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(“Confidential Information”) about the issuers of certain investments, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including, without limitation, senior floating rate loans, other loans and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">related investments being considered for acquisition by the Fund or held </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in the Fund’s portfolio. For example, an issuer of privately placed loans </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">considered by the Fund may offer to provide PIMCO with financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">information and related documentation regarding the issuer that is not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">publicly available. Pursuant to applicable policies and procedures, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO may (but is not required to) seek to avoid receipt of Confidential </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Information about such issuers so as to avoid possible restrictions on its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability to purchase and sell investments on behalf of the Fund and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">clients to which such Confidential Information relates. In such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">circumstances, the Fund (and other PIMCO clients) may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disadvantaged in comparison to other investors, including with respect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the price the Fund pays or receives when it buys or sells an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment. Further, PIMCO’s and the Fund’s abilities to assess the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">desirability of proposed consents, waivers or amendments with respect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to certain investments may be compromised if they are not privy to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">available Confidential Information. PIMCO may also determine to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">receive such Confidential Information in certain circumstances under its </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">applicable policies and procedures. If PIMCO intentionally or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unintentionally comes into possession of Confidential Information, it </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be unable, potentially for a substantial period of time, to purchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or sell investments to which such Confidential Information relates.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Cyber Security Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">As the use of technology, including cloud-based technology, has </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">become more prevalent and interconnected in the course of business, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund is potentially more susceptible to operational and information </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">security risks resulting from breaches in cyber security, including: </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">processing and human errors, inadequate or failed internal or external </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">processes, failures in system and technology, errors in algorithms used </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with respect to Fund operations and changes in personnel. A breach in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cyber security refers to both intentional and unintentional cyber events </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from outside threat actors or internal resources that may, among other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">things, cause the Fund to lose proprietary information, suffer data </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">corruption and/or destruction, lose operational capacity, result in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unauthorized release or other misuse of confidential information, or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise disrupt normal business operations. Geopolitical tensions can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increase the scale and sophistication of deliberate cybersecurity attacks, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particularly those from nation-states or from entities with nation-state </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">backing, who may desire to use cybersecurity attacks to cause damage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or create leverage against geopolitical rivals. Cyber security breaches </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may involve unauthorized access to the Fund’s digital information </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">systems (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">e.g.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, through “hacking” or malicious software coding), and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may come from multiple sources, including outside attacks such as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">denial-of-service attacks (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, efforts to make network services </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unavailable to intended users) or cyber extortion, including exfiltration </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of data held for ransom and/or “ransomware” attacks that renders </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">systems inoperable until the ransom is paid, or insider actions (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">e.g.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intentionally or unintentionally harmful acts of PIMCO personnel). In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, cyber security breaches involving the Fund’s third party service </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">providers (including but not limited to advisers, sub-advisers, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">administrators, transfer agents, custodians, vendors, suppliers, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distributors and other third parties), trading counterparties or issuers in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which the Fund invests can also subject the Fund to many of the same </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risks associated with direct cyber security breaches or extortion of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">company data. PIMCO’s use of cloud-based service providers could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">heighten or change these risks. In addition, work-from-home </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">arrangements by the Fund, the Investment Manager or their service </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">providers could increase all of the above risks, create additional data </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and information accessibility concerns, and make the Fund, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investment Manager or their service providers susceptible to operational </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disruptions, any of which could adversely impact their operations.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Cyber security failures or breaches may result in financial losses to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund and its shareholders. For example, cyber security failures or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">breaches involving trading counterparties or issuers in which the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invests could adversely impact such counterparties or issuers and cause </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s investment to lose value. These failures or breaches may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result in disruptions to business operations, potentially resulting in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial losses; interference with the Fund’s ability to calculate its NAV, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">process shareholder transactions or otherwise transact business with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shareholders; impediments to trading; violations of applicable privacy </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other laws; regulatory fines; penalties; third-party claims in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">litigation; reputational damage; reimbursement or other compensation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">costs; additional compliance and cyber security risk management costs </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other adverse consequences. In addition, substantial costs may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">incurred in order to prevent any cyber incidents in the future.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Like with operational risk in general, the Fund has established business </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">continuity plans and risk management systems designed to reduce the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risks associated with cyber security. However, there are inherent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limitations in these plans and systems, including that certain risks may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not have been identified, in large part because different or unknown </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">threats may emerge in the future. As such, there is no guarantee that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such efforts will succeed, especially because the Fund does not directly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">control the cyber security systems of issuers in which the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invest, trading counterparties or third-party service providers to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund. Such entities have experienced cyber attacks and other attempts </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to gain unauthorized access to systems from time to time, and there is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">no guarantee that efforts to prevent or mitigate the effects of such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">attacks or other attempts to gain unauthorized access will be successful. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There is also a risk that cyber security breaches may not be detected. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund and its shareholders may suffer losses as a result of a cyber </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">security breach related to the Fund, its service providers, trading </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">counterparties or the issuers in which the Fund invests.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Potential Conflicts of Interest Risk—Allocation of Investment </div></div><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Opportunities</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Investment Manager and its affiliates are involved worldwide with a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">broad spectrum of financial services and asset management activities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and may engage in the ordinary course of business in activities in which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">their interests or the interests of their clients may conflict with those of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund. The Investment Manager may provide investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">management services to other funds and discretionary managed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">accounts that follow an investment program similar to that of the Fund. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Subject to the requirements of the 1940 Act, the Investment Manager </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intends to engage in such activities and may receive compensation from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">third parties for its services. The results of the Fund’s investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">activities may differ from those of the Fund’s affiliates, or another </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">account managed by the Investment Manager or its affiliates, and it is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">possible that the Fund could sustain losses during periods in which one </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or more of the Fund’s affiliates and/or other accounts managed by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investment Manager or its affiliates, including proprietary accounts, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">achieve profits on their trading.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Market Disruptions Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund is subject to investment and operational risks associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial, economic and other global market developments and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disruptions, including those arising from war, military conflicts, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">geopolitical disputes, terrorism, social or political unrest, recessions, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">supply chain disruptions, tariffs and other restrictions on trade, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sanctions, market manipulation, government interventions, defaults and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shutdowns, political changes or diplomatic developments, public health </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">emergencies (such as the spread of infectious diseases, pandemics and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">epidemics), bank failures, natural/environmental disasters, climate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">change and climate related events, responses to government actions or </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interventions (the threat or imposition of tariffs, trade restrictions, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currency restrictions, or similar actions) which can all negatively impact </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the securities markets, interest rates, auctions, secondary trading, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ratings, credit risk, inflation, deflation and other factors relating to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s investments or the Investment Manager’s operations and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of an investment in the Fund, its distributions and its returns. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">These events can also impair the technology and other operational </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">systems upon which the Fund’s service providers, including PIMCO as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s investment adviser, rely, and could otherwise disrupt the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s service providers’ ability to fulfill their obligations to the Fund. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Furthermore, events involving limited liquidity, defaults, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-performance or other adverse developments that affect financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">institutions or the financial services industry generally, or concerns or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rumors about any events of these kinds or other similar risks, have in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">past and may in the future lead to market-wide liquidity problems.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Focused Investment Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To the extent that the Fund focuses its investments in a particular sector, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">it may be susceptible to loss due to adverse developments affecting that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sector, including (but not limited to): governmental regulation; inflation; </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rising interest rates; cost increases in raw materials, fuel and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operating expenses; technological innovations that may render existing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">products and equipment obsolete; competition from new entrants; high </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">research and development costs; increased costs associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">compliance with environmental or other governmental regulations; and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other economic, business or political developments specific to that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sector. Furthermore, the Fund may invest a substantial portion of its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assets in companies in related sectors that may share common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">characteristics, are often subject to similar business risks and regulatory </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">burdens, and whose securities may react similarly to the types of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">developments described above, which will subject the Fund to greater </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk. The Fund also will be subject to focused investment risk to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extent that it invests a substantial portion of its assets in a particular </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuer, market, asset class, country or geographic region.</div></div></div><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Certain Affiliations</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain broker-dealers may be considered to be affiliated persons of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund and/or the Investment Manager due to their possible affiliations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with Allianz SE, the ultimate parent of the Investment Manager, or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">another Allianz entity. Allianz Asset Management of America LP merged </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with Allianz Asset Management of America LLC (“Allianz Asset </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Management”), with the latter being the surviving entity, effective </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">January 1, 2023. Following the merger, Allianz Asset Management is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO’s managing member and direct parent entity. Absent an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exemption from the SEC or other regulatory relief, the Fund is generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">precluded from effecting certain principal transactions with affiliated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">brokers, and its ability to purchase securities being underwritten by an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affiliated broker or a syndicate including an affiliated broker, or to utilize </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affiliated brokers for agency transactions, is subject to restrictions. This </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could limit the Fund’s ability to engage in securities transactions and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">take advantage of market opportunities.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The 1940 Act imposes significant limits on co-investment with affiliates </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the Fund. The Fund has received exemptive relief from the SEC that, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the extent the Fund relies on such relief, permits it to (among other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">things) co-invest alongside certain other persons in privately negotiated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments, including certain affiliates of the Investment Manager and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain public or private funds managed by the Investment Manager and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its affiliates, subject to certain terms and conditions. The exemptive relief </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from the SEC with respect to co-investments imposes a number of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions on any co-investments made in reliance on such relief that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may limit or restrict the Fund’s ability to participate in an investment or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">require it to participate in an investment to a lesser extent, which could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">negatively impact the Fund’s ability to execute its desired investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strategy and its returns. Subject to applicable law, the Fund may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invest alongside other PIMCO managed funds and accounts, including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">private funds and affiliates of the Investment Manager, without relying </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on the exemptive relief. Pursuant to co-investment exemptive relief, to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the extent the Fund relies on such relief, the Fund will be able to invest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in opportunities in which PIMCO and/or its affiliates has an investment, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and PIMCO and/or its affiliates will be able to invest in opportunities in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which a fund has made an investment.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Anti-Takeover Provisions</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s Declaration and the Fund's Bylaws include provisions that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could limit the ability of other entities or persons to acquire control of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund or to convert the Fund to open-end status. These provisions in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Declaration and the Fund's Bylaws could have the effect of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">depriving the Common Shareholders of opportunities to sell their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares at a premium over the then-current market price of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares or at NAV.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Fund Distribution Rates</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Although the Fund may seek to maintain level distributions, the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distribution rates may be affected by numerous factors, including but </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not limited to changes in realized and projected market returns, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fluctuations in market interest rates, Fund performance, and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">factors. The Fund’s distributions may be comprised of a return of capital. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In general terms, a return of capital would occur where a Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distribution (or portion thereof) represents a return of a portion of your </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment, rather than net income or capital gains generated from your </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment during a particular period. There can be no assurance that a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">change in market conditions or other factors will not result in a change </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in the Fund’s distribution rate or that the rate will be sustainable in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">future.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">For instance, during periods of low or declining interest rates, the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distributable income and dividend levels may decline for many reasons. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">For example, the Fund may have to deploy uninvested assets (whether </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from sales of Fund shares, proceeds from matured, traded or called debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations or other sources) in new, lower yielding instruments.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Additionally, payments from certain instruments that may be held by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund (such as variable and floating rate securities) may be negatively </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impacted by declining interest rates, which may also lead to a decline in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s distributable income and dividend levels.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"> <div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Market Discount Risk</div></div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The price of the Fund’s Common Shares will fluctuate with market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions and other factors. If you sell your Common Shares, the price </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">received may be more or less than your original investment. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares are designed for long-term investors and should not be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">treated as trading vehicles. Shares of closed-end management </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment companies frequently trade at a discount from their NAV. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares may trade at a price that is less than the offering price </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for Common Shares issued pursuant to an offering. This risk may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">greater for investors who sell their Common Shares relatively shortly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">after completion of an offering. The sale of Common Shares by the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(or the perception that such sales may occur), particularly if sold at a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">discount to the then current market price of the Common Shares, may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have an adverse effect on the market price of the Common Shares.</div></div> </div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"> <div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Market Risk</div></div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The market price of securities owned by the Fund may fluctuate, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sometimes rapidly or unpredictably. Securities may decline in value due </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to a variety of factors affecting (or perceiving to affect) securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">markets generally or particular industries, sectors or companies </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">represented in the securities markets. The value of a security may decline </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">due to general market conditions that are not specifically related to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particular company, such as real or perceived adverse economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions, changes in the general outlook for corporate earnings, levels </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of public debt and deficits, changes in inflation, interest or currency </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rates, financial system instability, adverse changes to credit markets or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adverse investor sentiment generally. The value of a security may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decline due to factors that affect a particular industry or industries, such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as labor shortages or increased production costs and competitive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions within an industry. During a general downturn in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities markets, multiple asset classes may decline in value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">simultaneously even if the performance of those asset classes is not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise historically correlated. Investments may also be negatively </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impacted by market disruptions and by attempts by other market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participants to manipulate the prices of particular investments. Equity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities generally have greater price volatility than fixed income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities. Credit ratings downgrades may also negatively affect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities held by the Fund. Even when markets perform well, there is no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assurance that the investments held by the Fund will increase in value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">along with the broader market.</div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, market risk includes the risk that geopolitical and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">events will disrupt the economy on a national or global level. For </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instance, actual or threatened war or military conflict, terrorism, social </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unrest, recessions, supply chain disruptions, market manipulation, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">government defaults, government shutdowns, political and regulatory </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes, diplomatic developments or the imposition of sanctions and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other similar measures, including the imposition of tariffs, or other </div></div> </div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. economic policies and any related public health emergencies (such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as the spread of infectious diseases, pandemics and epidemics), </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">natural/environmental disasters or events, climate-change and climate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">related events can all negatively impact the securities markets, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could cause the Fund to lose value. This includes reliance on global </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">supply chains that are susceptible to disruptions resulting from, among </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other things, war and other armed conflicts, tariffs, extreme weather </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">events, and natural disasters. These events could reduce consumer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">demand or economic output, result in market closures, changes in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates, inflation/deflation, travel restrictions or quarantines, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significantly adversely impact the economy.</div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">As computing technology and data analytics continually advance there </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">has been an increasing trend towards machine driven and artificially </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intelligent trading systems, particularly providing such systems with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increasing levels of autonomy in trading decisions. Regulators of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial markets have become increasingly focused on the potential </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact of artificial intelligence on investment activities and may issue </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulations that are intended to affect the use of artificial technology in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">trading activities. Any such regulations may not have the intended effect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on financial markets. Moreover, advancements in artificial intelligence </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other technologies may suffer from the introduction of errors, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">defects or security vulnerabilities which can go undetected. Issues in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">construction and implementation of AI systems and models (including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">software issues, issues related to the use of artificial intelligence and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">machine learning (AI), and other technological issues) may adversely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact the Fund. AI systems may contain design flaws or faulty </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assumptions, rely on incomplete or inaccurate data inputs, and may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficult to interpret or audit.</div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The domestic political environment, as well as political and diplomatic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">events within the United States and abroad, such as the U.S. budget and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deficit reduction plan and foreign policy tensions with foreign nations, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including embargoes, tariffs, sanctions, trade wars, and other similar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">developments, has in the past resulted, and may in the future result, in a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">government shutdown or otherwise adversely affect the U.S. regulatory </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">landscape, the general market environment and/or investor sentiment, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which could have an adverse impact on the Fund’s investments and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operations. Additional and/or prolonged U.S. federal government </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shutdowns, U.S. foreign policy, the imposition of tariffs, or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. economic policies and any related domestic and/or geopolitical </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tensions may affect investor and consumer confidence and may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely impact financial markets and the broader economy, perhaps </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">suddenly and to a significant degree. Governmental and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">quasi-governmental authorities and regulators throughout the world </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have previously responded to serious economic disruptions with a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">variety of significant fiscal and monetary policy changes, including but </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not limited to, direct capital infusions into companies, new monetary </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">programs and dramatically lower interest rates. An unexpected or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sudden reversal of these policies, or the ineffectiveness of these policies, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could increase volatility in securities markets, which could adversely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affect the Fund’s investments. Any market disruptions could also prevent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund from executing advantageous investment decisions in a timely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">manner. To the extent that the Fund has focused its investments in a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">region enduring geopolitical market disruption will face higher risks of </div></div> </div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loss. Thus, investors should closely monitor current market conditions to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">determine whether the Fund meets their individual financial needs and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tolerance for risk.</div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">When inflationary price movements occur, fixed income securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">markets may experience heightened levels of interest rate, volatility and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidity risk. Interest rate increases in the future could cause the value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of a fund that invests in fixed income securities to decrease, which could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">force the Fund to liquidate investments at disadvantageous times or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prices, therefore adversely affecting the Fund and its shareholders. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Higher interest rates generally lower the values of real estate-related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assets. When this does not occur as expected, it presents an increased </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk of a correction or severe downturn in real estate-related asset </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prices, which could, by extension, adversely impact the value of other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments (such as loans, securitized debt and other fixed income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities). Such an impact could materialize in one real estate sector </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and not another, or in a different manner in different real estate sectors. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Examples of the risks faced by real estate-related assets include: tenant </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">vacancy rates, increased tenant turnover and tenant concentration; </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">general real estate headwinds, including delinquencies and difficulties in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collecting rents and other payments (which increases the risk of owners </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">being unable to pay or otherwise defaulting on their own borrowings </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and obligations); decreases in property values; increases in inflation, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">upkeep costs and other expenses; fluctuations in rents; and increased </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">concentration in ownership of certain types of properties.</div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Exchanges and securities markets may close early, close late or issue </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">trading halts on specific securities, which may result in, among other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">things, the Fund being unable to buy or sell certain securities or financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments at an advantageous time or accurately price its portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments. In addition, the Fund may rely on various third-party </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sources to calculate its NAV. As a result, the Fund is subject to certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operational risks associated with reliance on service providers and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">service providers' data sources. In particular, errors or systems failures </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other technological issues may adversely impact the Fund's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">calculation of its NAV, and such NAV calculation issues may result in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inaccurately calculated NAV, delays in NAV calculation and/or the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inability to calculate NAVs over extended periods. The Fund may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unable to recover any losses associated with such failures.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div> </div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"> <div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Asset Allocation Risk</div></div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investment performance depends upon how its assets are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">allocated and reallocated. A principal risk of investing in the Fund is that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO may make less than optimal or poor asset allocation decisions, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which could result in the Fund being underweight or overweight in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sectors, asset classes, or geographies that perform differently than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expected. PIMCO employs an active approach to allocation among </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">multiple fixed income sectors, but there is no guarantee that such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">allocation techniques will produce the desired results. It is possible that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO will focus on an investment that performs poorly or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">underperforms other investments under various market conditions. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund could experience losses as a result of these allocation decisions, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which could result in the Fund being underweight or overweight in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sectors, asset classes, or geographies that perform differently than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expected.</div></div> </div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Management Risk</div></div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund is subject to management risk because it is an actively </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">managed investment portfolio. PIMCO will apply investment techniques </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and risk analysis and may, in some cases, use proprietary models that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are developed and maintained by PIMCO in making investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decisions for the Fund, or may determine that certain factors are more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significant than others. There can be no guarantee that these decisions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will produce the desired results or that the due diligence conducted by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO will expose all material risks associated with an investment. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Additionally, PIMCO may not be able to identify suitable investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">opportunities and may face competition from other investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">managers when identifying and consummating certain investments, or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may determine that certain factors are more significant than others. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain securities or other instruments in which the Fund seeks to invest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may not be available in the quantities desired, including in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">circumstances where other funds for which PIMCO acts as investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adviser, including funds with names, investment objectives and policies, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and/or portfolio management teams, similar to the Fund, are seeking to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invest in the same or similar securities or instruments. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulatory restrictions, actual or perceived conflicts of interest or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">considerations may cause PIMCO to restrict or prohibit participation in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain investments. In such circumstances, PIMCO may determine to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchase other securities or instruments as substitutes. Such substitute </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities or instruments may not perform as intended, which could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result in losses to the Fund. To the extent the Fund employs strategies </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">targeting perceived pricing inefficiencies, arbitrage strategies or similar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strategies, it is subject to the risk that the pricing or valuation of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities and instruments involved in such strategies may change </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unexpectedly, which may result in reduced returns or losses to the Fund. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Additionally, legislative, regulatory or tax developments may adversely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affect management of the Fund.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund is also subject to the risk that deficiencies in the internal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">systems or controls of PIMCO or another service provider will cause </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">losses for the Fund or hinder Fund operations. For example, trading </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">delays or errors (both human and systemic) could prevent the Fund from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchasing a security expected to appreciate in value. Please refer to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“Portfolio Managers - Conflicts of Interest” in the SAI for further </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">information. Additionally, actual or perceived conflicts of interest may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affect the investment techniques available to PIMCO in connection with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">managing the Fund, may cause PIMCO to restrict or prohibit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participation in certain investments and may also adversely affect the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability of the Fund to achieve its investment objectives. There also can be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">no assurance that all of the personnel of PIMCO will continue to be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with PIMCO for any length of time. The loss of the services of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">one or more key employees of PIMCO could have an adverse impact on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s ability to realize its investment objectives.</div></div> </div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"> <div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, the Fund may rely on various third-party sources to calculate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its NAV. As a result, the Fund is subject to certain operational risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with reliance on service providers and service providers’ data </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sources. In particular, errors or systems failures and other technological </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issues may adversely impact the Fund’s calculations of its NAV, and such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">NAV calculation issues may result in inaccurately calculated NAVs, </div></div> </div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">delays in NAV calculation and/or the inability to calculate NAVs over </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extended periods. The Fund may be unable to recover any losses </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with such failures.</div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Issuer Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The value of a security may decline for a number of reasons that directly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">relate to the issuer, such as management performance, major litigation, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investigations or other controversies, changes in the issuer’s financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">condition or credit rating, changes in government regulations affecting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the issuer or its competitive environment and strategic initiatives such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as mergers, acquisitions or dispositions and the market response to any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such initiatives, financial leverage, reputation or reduced demand for the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuer’s goods or services, as well as the historical and prospective </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">earnings of the issuer and the value of its assets. A change in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial condition of a single issuer may affect one or more other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuers or securities markets as a whole. These risks can apply to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares issued by the Fund and to the issuers of securities and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other instruments in which the Fund invests.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Interest Rate Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Interest rate risk is the risk that fixed income securities and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments in the Fund’s portfolio will fluctuate in value because of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes, or the anticipation of changes, in interest rates. Factors </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including central bank monetary policy, rising inflation rates, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in general economic conditions may cause interest rates to rise, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which could cause the value of the Fund’s investments to decline. For </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">example, as nominal interest rates rise, the value of certain securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">held by the Fund is likely to decrease. Interest rate changes can be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sudden and unpredictable, and the Fund may experience losses as a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result of movements in interest rates. The Fund may not be able to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hedge against changes in interest rates or may choose not to do so for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cost or other reasons. In addition, any hedges may not work as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intended.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fixed income securities with longer durations tend to be more sensitive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to changes in interest rates, usually making them more volatile than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities with shorter durations. The values of equity and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-fixed income securities may also decline due to fluctuations. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Duration is a measure used to determine the sensitivity of a security’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">price to changes in interest rates that incorporates a security’s yield, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">coupon, final maturity and call features, among other characteristics.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Duration is useful primarily as a measure of the sensitivity of a fixed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income security’s market price to interest rate (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, yield) movements. All </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other things remaining equal, for each one percentage point increase in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates, the value of a portfolio of fixed income investments would </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally be expected to decline by one percent for every year of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio’s average duration above zero. For example, the value of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio of fixed income securities with an average duration of eight </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">years would generally be expected to decline by approximately 8% if </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates rose by one percentage point.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Dividend-paying equity securities, particularly those whose market price </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">is closely related to their yield, may be more sensitive to changes in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates. During periods of rising interest rates, the values of such </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities may decline and may result in losses to the Fund. Variable and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">floating rate securities generally are less sensitive to interest rate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes but may decline in value if their interest rates do not rise as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">much, or as quickly, as interest rates in general. Conversely, floating rate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities will not generally increase in value if interest rates decline.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Inverse floating rate securities may decrease in value if interest rates </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increase. Inverse floating rate securities may also exhibit greater price </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">volatility than a fixed rate obligation with similar credit quality. When </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund holds variable or floating rate securities, a decrease (or, in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">case of inverse floating rate securities, an increase) in market interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rates will adversely affect the income received from such securities and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the NAV of the Fund’s shares.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">A wide variety of factors can cause interest rates or yields of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. Treasury securities (or yields of other types of bonds) to rise, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including but not limited to central bank monetary policies, changing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inflation or real growth rates, general economic conditions, increasing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bond issuances or reduced market demand for low yielding investments. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Risks associated with changes in interest rates may be heightened </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">under certain market conditions, such as during times when the Federal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Reserve raises interest rates or when such rates remain elevated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">following a period of historically low levels. Additionally, the U.S. and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other governments have increased, and are likely to continue increasing, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">their debt issuances, which may also heighten these risks. There is the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk that the income generated by investments may not keep pace with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inflation. Actions by governments and central banking authorities can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result in increases or decreases in interest rates. Periods of higher </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inflation could cause such authorities to raise interest rates, which may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely affect the Fund and its investments. In addition, changes in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">monetary policy may exacerbate the risks associated with changing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates. Further, in market environments where interest rates are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rising, issuers may be less willing or able to make principal and interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments on fixed-income investments when due.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">During periods of very low or negative interest rates, the Fund may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unable to maintain positive returns. Very low or negative interest rates </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may magnify interest rate risk. Changing interest rates, including rates </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that fall below zero, may have unpredictable effects on markets, may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result in heightened market volatility and may detract from Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">performance to the extent the Fund is exposed to such interest rates.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Measures such as average duration may not accurately reflect the true </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rate sensitivity of the Fund. This is especially the case if the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consists of securities with widely varying durations. Therefore, if the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund has an average duration that suggests a certain level of interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate risk, the Fund may in fact be subject to greater interest rate risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">than the average would suggest. This risk is greater to the extent the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund uses leverage or derivatives in connection with the management </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the Fund, which would be magnified in the event that initial or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">variation margin is not provided by the counterparty to such transaction </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(or not provided below a certain threshold amount).</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Convexity is an additional measure used to understand a security's or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund's interest rate sensitivity. Convexity measures the rate of change of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">duration in response to changes in interest rates. With respect to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">security’s price, a larger convexity (positive or negative) may imply more </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dramatic price changes in response to changing interest rates. Convexity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be positive or negative. Negative convexity implies that interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate increases result in increased duration and vice versa, meaning </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increased sensitivity in prices in response to changes in interest rates.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Thus, securities with negative convexity, which may include bonds with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">traditional call features and certain mortgage-backed securities, may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">experience greater losses in periods of rising interest rates. Accordingly, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">if the Fund holds such securities, the Fund may be subject to a greater </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk of losses in periods of rising interest rates.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Credit Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund could experience losses if the issuer or guarantor of a fixed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income security (including a security purchased with securities lending </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collateral), the counterparty to a derivatives contract, or the issuer or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">guarantor of collateral, repurchase agreement or a loan of portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities is unable or unwilling, or is perceived (whether by market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participants, rating agencies, pricing services or otherwise) as unable or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unwilling, to make timely principal and/or interest payments or to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise honor its financial obligations. The risk that such issuer, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">guarantor or counterparty is less willing or able to do so is heightened </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in market environments where interest rates are changing, notably </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when rates are rising. The downgrade of the credit rating of a security or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the issuer of a security held by the Fund may decrease its value. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Measures such as average credit quality may not accurately reflect the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">true credit risk of the Fund. This is especially the case if the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consists of securities with widely varying credit ratings. Securities are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to varying degrees of credit risk, which are often reflected in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">credit ratings. This risk is greater to the extent the Fund uses leverage or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives in connection with the management of the Fund, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">would be magnified in the event that initial or variation margin is not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provided by the counterparty to such transaction (or not provided below </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a certain threshold amount). Rising or high interest rates may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deteriorate the credit quality of an issuer or counterparty, particularly if </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">an issuer or counterparty faces challenges rolling or refinancing its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations. The Fund’s investments may be adversely affected if any of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the issuers it is invested in are subject to an actual or perceived </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(whether by market participants, rating agencies, pricing services or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise) deterioration to their credit quality.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Credit risk includes credit spread risk, which is the risk that credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">spreads (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, the difference in yield between securities that is due to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">differences in their actual or perceived credit quality) may increase when </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the market believes that investments generally have a greater risk of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">default. Increasing credit spreads may reduce the market values of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s investments. Credit spreads often increase more for lower rated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and unrated securities than for investment grade securities. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when credit spreads increase, reductions in market value will generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be greater for longer-maturity securities. Further, credit spread duration </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(a measure of credit spread risk) can vary significantly from interest rate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">duration (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">e.g.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, for floating rate debt securities, credit spread duration </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">typically will be higher than interest rate duration). The Fund may add </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">credit spread duration to its portfolio, for example through the use of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">e.g.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, credit default swaps), even while it has lower interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate duration. The credit spread duration of the Fund’s portfolio may </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">vary, in some cases significantly, from its interest rate duration. All </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">descriptions of duration in this prospectus refer to interest rate duration </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unless otherwise noted.</div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Mortgage-Related and Other Asset-Backed Instruments Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The mortgage-related assets in which the Fund may invest include, but </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are not limited to, any security, instrument or other asset that is related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to U.S. or non-U.S. mortgages, including those issued by private </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">originators or issuers, or issued or guaranteed as to principal or interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by the U.S. government or its agencies or instrumentalities or by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-U.S. governments or authorities, such as, without limitation, assets </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">representing interests in, collateralized or backed by, or whose values </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are determined in whole or in part by reference to any number of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgages or pools of mortgages or the payment experience of such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgages or pools of mortgages, including REMICs, which could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">include Re-REMICs, mortgage pass-through securities, inverse floaters, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">CMOs, CLOs, multi-class pass-through securities, private mortgage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pass-through securities, stripped mortgage securities (generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest-only and principal-only securities), mortgage-related asset </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">backed securities and mortgage-related loans (including through </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participations, assignments, originations and whole loans), including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commercial and residential mortgage loans. Exposures to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related assets through derivatives or other financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments will be considered investments in mortgage-related assets.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may also invest in other types of asset-backed securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(“ABS”), including CDOs, CBOs and CLOs and other similarly structured </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Mortgage-related and other asset-backed instruments represent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interests in “pools” of mortgages or other assets such as consumer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans or receivables held in trust and often involve risks that are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">different from or possibly more acute than risks associated with other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">types of debt instruments.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Generally, rising interest rates tend to extend the duration of fixed rate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related assets, making them more sensitive to changes in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates. Compared to other fixed income investments with similar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">maturity and credit, mortgage-related securities may increase in value to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a lesser extent when interest rates decline and may decline in value to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">similar or greater extent when interest rates rise. As a result, in a period </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of rising interest rates, the Fund may exhibit additional volatility since </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">individual mortgage holders are less likely to exercise prepayment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">options, thereby putting additional downward pressure on the value of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these securities and potentially causing the Fund to experience losses. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">This is known as extension risk. Mortgage-backed securities can be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">highly sensitive to rising interest rates, such that even small movements </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">can cause the Fund to lose value. Mortgage-backed securities, and in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particular those not backed by a government guarantee, are subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">credit risk. When interest rates decline, borrowers may pay off their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgages sooner than expected. This can reduce the returns of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund because the Fund may have to reinvest that money at the lower </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prevailing interest rates. In addition, the creditworthiness, servicing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">practices, and financial viability of the servicers of the underlying </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage pools present significant risks. For instance, a servicer may be </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to make advances in respect of delinquent loans underlying the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related securities; however, servicers experiencing financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficulties may not be able to perform these obligations. Additionally, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">both mortgage-related securities and asset-backed securities are subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to risks associated with fraud or negligence by, or defalcation of, their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">servicers. These securities are also subject to the risks of the underlying </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans. In some circumstances, a servicer’s or originator’s mishandling of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">documentation related to the underlying collateral (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">e.g.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, failure to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properly document a security interest in the underlying collateral) may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affect the rights of security holders in and to the underlying collateral. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, the underlying loans may have been extended pursuant to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inappropriate underwriting guidelines, to no underwriting guidelines at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">all, or to fraudulent origination practices. The owner of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed security’s ability to recover against the sponsor, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">servicer or originator is uncertain and is often limited. The Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments in other asset-backed instruments are subject to risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">similar to those associated with mortgage-related assets, as well as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">additional risks associated with the nature of the assets and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">servicing of those assets. Payment of principal and interest on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset-backed instruments may be largely dependent upon the cash </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">flows generated by the assets backing the instruments, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset-backed instruments may not have the benefit of any security </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest in the related assets.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Subordinate mortgage-backed or asset-backed instruments are paid </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest only to the extent that there are funds available to make </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments. To the extent the collateral pool includes a large percentage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of delinquent loans, there is a risk that interest payments on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subordinate mortgage-backed or asset-backed instruments will not be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fully paid.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There are multiple tranches of mortgage-backed and asset-backed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments, offering investors various maturity and credit risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">characteristics. For example, tranches may be categorized as senior, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mezzanine, and subordinated/equity or “first loss.” The most senior </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tranche of a mortgage-backed or asset-backed instrument generally has </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the greatest collateralization and generally pays the lowest interest rate. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">If there are defaults or the collateral otherwise underperforms, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">scheduled payments to senior tranches generally take precedence over </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">those of mezzanine tranches, and scheduled payments to mezzanine </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tranches take precedence over those to subordinated/equity tranches. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Lower tranches represent lower degrees of credit quality and pay higher </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates intended to compensate for the attendant risks. The return </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on the lower tranches is especially sensitive to the rate of defaults in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collateral pool. The lowest tranche (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, the ”equity“ or ”residual“ </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tranche) generally specifically receives the residual interest payments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, money that is left over after the higher tranches have been paid </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and expenses of the issuing entities have been paid) rather than a fixed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rate. The Fund may also invest in the residual or equity tranches </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of mortgage-related and other asset-backed instruments, which may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">referred to as subordinate mortgage-backed or asset-backed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments and interest-only mortgage-backed or asset-backed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments. The Fund expects that investments in subordinate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed and other asset-backed instruments will be subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risks arising from delinquencies and foreclosures, thereby exposing its </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment portfolio to potential losses. Subordinate securities of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed and other asset-backed instruments are also subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to greater credit risk than those mortgage-backed or other asset-backed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments that are more highly rated.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The mortgage markets in the United States and in various foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">countries have experienced extreme difficulties in the past that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely affected the performance and market value of certain of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund's mortgage-related investments. Delinquencies and losses on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">residential and commercial mortgage loans (especially subprime and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">second-lien mortgage loans) may increase, and a decline in or flattening </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of housing and other real property values may exacerbate such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">delinquencies and losses. In addition, reduced investor demand for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage loans and mortgage-related securities and increased investor </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">yield requirements have caused limited liquidity in the secondary market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for mortgage-related securities, which can adversely affect the market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of mortgage-related securities. It is possible that such limited </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidity in such secondary markets could continue or worsen.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">With respect to risk retention tranches (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, eligible residual interests </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">initially held by the sponsors of CMBS and other eligible securitizations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pursuant to the U.S. Risk Retention Rules), a third-party purchaser, such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as the Fund, must hold its retained interest, unhedged, for at least five </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">years following the closing of the CMBS transaction, after which it is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">entitled to transfer its interest in the securitization to another person </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that meets the requirements for a third-party purchaser. Even after the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required holding period has expired, due to the generally illiquid nature </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of such investments, no assurance can be given as to what, if any, exit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strategies will ultimately be available for any given position.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, there is limited guidance on the application of the final </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. Risk Retention Rules to specific securitization structures. There can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be no assurance that the applicable federal agencies charged with the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">implementation of the final U.S. Risk Retention Rules (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">e.g.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, the FDIC, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Comptroller of the Currency, the Federal Reserve Board, the SEC, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Department of Housing and Urban Development, and the Federal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Housing Finance Agency) could not take positions in the future that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">differ from the interpretation of such rules taken or embodied in such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securitizations, or that the final U.S. Risk Retention Rules will not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">change.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Furthermore, in situations where the Fund invests in risk retention </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tranches of securitizations structured by third parties, the Fund may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to execute one or more letters or other agreements, the exact </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">form and nature of which will vary (each, a “Risk Retention </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Agreement”) under which it will make certain undertakings designed to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ensure such securitization complies with the U.S. Risk Retention Rules. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Such Risk Retention Agreements may include a variety of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">representations, warranties, covenants and other indemnities, each of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which may run to various transaction parties. If the Fund breaches any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">undertakings in any Risk Retention Agreement, it will be exposed to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">claims by the other parties thereto, including for any losses incurred as a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result of such breach, which could be significant and exceed the value of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s investments. Direct investments in mortgages and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">types of collateral are subject to risks similar (and in some cases to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">greater degree) to those described above.</div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Mortgage-Related Derivative Instruments Risk</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may engage in derivative transactions related to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed securities, including purchasing and selling </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exchange-listed and OTC put and call options, futures and forwards on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgages and mortgage-backed securities. The Fund may also invest in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed securities credit default swaps, which include swaps </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the reference obligation for which is a mortgage-backed security or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">related index, such as the CMBX Index (a tradeable index referencing a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">basket of commercial mortgage-backed securities) or the ABX (a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tradeable index referencing a basket of sub-prime mortgage-backed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities). The Fund may invest in newly developed mortgage related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives that may hereafter become available.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Derivative mortgage-backed securities (such as principal-only (“POs”), </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest-only (“IOs”) or inverse floating rate securities) are particularly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exposed to call and extension risks. Small changes in mortgage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prepayments can significantly impact the cash flows and the market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of these derivative instruments. In general, the risk of faster than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">anticipated prepayments adversely affects IOs, super floaters and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">premium priced mortgage-backed securities. The risk of slower than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">anticipated prepayments generally affects POs, floating-rate securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to interest rate caps, support tranches and discount priced </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed securities. In addition, particular derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments may be leveraged such that their exposure (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, price </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sensitivity) to interest rate and/or prepayment risk is magnified. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Mortgage-related derivative instruments involve risks associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related and other asset-backed instruments, privately-issued </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related securities, the mortgage market, the real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">industry, derivatives and credit default swaps. See “Mortgage-Related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and Other Asset-Backed Instruments Risk,” “Privately-Issued </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Mortgage-Related Securities Risk,” “Derivatives Risk,” and “Credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Default Swaps Risk.”</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Privately-Issued Mortgage-Related Securities Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There are no direct or indirect government or agency guarantees of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments in pools created by non-governmental issuers. Privately-issued </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related securities are also not subject to the same </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">underwriting requirements for the underlying mortgages that are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">applicable to those mortgage-related securities that have a government </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or government-sponsored entity guarantee.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Privately-issued mortgage-related securities are not traded on an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exchange and there may be a limited market for the securities, especially </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when there is a perceived weakness in the mortgage and real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market sectors. Without an active trading market, mortgage-related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities held in the Fund’s portfolio may be particularly difficult to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value because of the complexities involved in assessing the value of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">underlying mortgage loans.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Additionally, privately-issued mortgage-related securities, such as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">privately-held or non-traded REITs, may bear higher fees than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">publicly-traded REITs. Privately-held REITs generally are exempt from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">registration under the Securities Act and, as such, are not subject to the </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">same disclosure requirements as REITs registered under the Securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Act, which may make privately-held REITs more difficult to evaluate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from an investment perspective.</div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">High Yield Securities Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To the extent that the Fund invests in high yield securities and unrated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities of similar credit quality (commonly known as “high yield </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities” or “junk bonds”), the Fund may be subject to greater levels </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of market risk, credit risk, call risk and liquidity risk than funds that do </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not invest in such securities, which could have a negative effect on the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">NAV and market price of the Fund’s Common Shares or Common Share </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dividends. High yield securities may be issued by companies that are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">restructuring, are smaller and less creditworthy or are more highly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leveraged or indebted than other companies, or are financially </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distressed, and therefore they typically have more difficulty making </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">scheduled payments of principal and interest than issuers of higher </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rated investments. These securities are considered predominantly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">speculative by rating agencies with respect to an issuer’s continuing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability to make principal and interest payments, and their value may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more volatile than other types of securities. An economic downturn or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">individual issuer developments could adversely affect the market for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these securities and reduce the Fund’s ability to sell these securities at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">an advantageous time or price. An economic downturn could also lead </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to a higher non-payment rate and, a high yield security may lose </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significant market value before a default occurs. The Fund may purchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distressed securities that are in default or the issuers of which are in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bankruptcy, which involve heightened risks.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">High yield securities structured as zero-coupon bonds or pay-in-kind </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities tend to be especially volatile as they are particularly sensitive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to downward pricing pressures from rising interest rates or widening </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">spreads and may require the Fund to make taxable distributions of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">imputed income without receiving the actual cash currency. Issuers of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">high yield securities may have the right to “call” or redeem the issue </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prior to maturity, which may result in the Fund having to reinvest the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">proceeds in other high yield securities or similar instruments that may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pay lower interest rates. The Fund may also be subject to greater levels </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of liquidity risk than funds that do not invest in high yield securities. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Consequently, transactions in high yield securities may involve greater </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">costs than transactions in more actively traded securities. A lack of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">publicly-available information, irregular trading activity and wide </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bid/ask spreads among other factors, may, in certain circumstances, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make high yield debt more difficult to sell at an advantageous time or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">price than other types of securities or instruments. These factors may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result in the Fund being unable to realize full value for these securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and/or may result in the Fund not receiving the proceeds from a sale of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a high yield security for an extended period after such sale, each of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which could result in losses to the Fund. Because of the risks involved in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investing in high yield securities, an investment in the Fund should be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">considered speculative.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In general, lower rated debt securities carry a greater degree of risk that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the issuer will lose its ability to make interest and principal payments, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which could have a negative effect on the Fund. Securities of below </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment grade quality are regarded as having predominantly </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">speculative characteristics with respect to capacity to pay interest and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repay principal and are commonly referred to as “high yield” securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or “junk bonds.” High yield securities involve a greater risk of default </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and their prices are generally more volatile and sensitive to actual or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">perceived negative developments. Debt securities in the lowest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment grade category also may be considered to possess some </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">speculative characteristics by certain rating agencies. The Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchase stressed or distressed securities that are in default or the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuers of which are in bankruptcy, which involve heightened risks.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">An economic downturn could severely affect the ability of issuers </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(particularly those that are highly leveraged) to service or repay their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">debt obligations. Lower-rated securities are generally less liquid than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">higher-rated securities, which may have an adverse effect on the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability to dispose of them. High yield securities are particularly sensitive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to adverse economic, market, industry or issuer-specific developments, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which may result in an increased incidence of default. During periods of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deteriorating economic conditions, such as recessions or periods of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rising unemployment, or changing interest rates (notably increases), </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">high yield securities are particularly susceptible to credit and default risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as delinquencies and losses could increase, and such increases could be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sudden and significant. An economic downturn or individual issuer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">developments could adversely affect the market for these investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and reduce a Fund's ability to sell these investments at an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">advantageous time or price. These types of developments could cause </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">high yield securities to lose significant market value, including before a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">default occurs only at prices lower than if such securities were widely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">traded. In the event of default, the Fund may incur additional expenses </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to seek recovery or to negotiate new terms with a defaulting issuer. To </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the extent the Fund focuses on below investment grade debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations, PIMCO's capabilities in analyzing credit quality and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated risks will be particularly important, and there can be no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assurance that PIMCO will be successful in this regard. Due to the risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">involved in investing in high yield securities, an investment in the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">should be considered speculative.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s credit quality policies apply only at the time a security is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchased, and the Fund is not required to dispose of a security in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">event that a rating agency or PIMCO downgrades its assessment of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">credit characteristics of a particular issue. In determining whether to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">retain or sell such a security, PIMCO may consider factors including, but </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not limited to, PIMCO's assessment of the credit quality of the issuer of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such security, the price at which such security could be sold and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rating, if any, assigned to such security by other rating agencies. Analysis </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of creditworthiness may be more complex for issuers of high yield </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities than for issuers of higher quality debt securities. See “The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund's Investment Objectives and Strategies-Portfolio Contents-High </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Yield Securities” for additional information.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Municipal Bond Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investing in the municipal bond market involves the risks of investing in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">debt securities generally and certain other risks. The amount of public </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">information available about the municipal bonds in which the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invest is generally less than that for corporate equities or bonds, and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment performance of the Fund’s investment in municipal bonds </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may therefore be more dependent on the analytical abilities of PIMCO </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">than its investments in taxable bonds. The secondary market for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">municipal bonds, particularly below investment grade bonds in which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund may invest, also tends to be less well developed or liquid than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">many other securities markets, which may adversely affect the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability to sell municipal bonds at attractive prices or value municipal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bonds.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The ability of municipal issuers to make timely payments of interest and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">principal may be diminished during general economic downturns, by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">litigation, legislation or political events, or by the bankruptcy of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuer. Budgetary constraints of local, state, and federal governments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">upon which the issuers may be relying for funding may also impact </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Municipal Bonds. Laws, referenda, ordinances or regulations enacted in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the future by Congress or state legislatures or the applicable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">governmental entity could extend the time for payment of principal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and/or interest, or impose other constraints on enforcement of such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations, or on the ability of municipal issuers to levy taxes. Issuers of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">municipal securities also might seek protection under the bankruptcy </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">laws. In the event of bankruptcy of such an issuer, the Fund could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">experience delays in collecting principal and interest and the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not, in all circumstances, be able to collect all principal and interest to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which it is entitled. To enforce its rights in the event of a default in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payment of interest or repayment of principal, or both, the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">take possession of and manage the assets securing the issuer's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations on such securities, which may increase the Fund's operating </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses. The differences in priorities, perspectives and economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interests of bondholders and taxpayers or users of facilities financed by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">municipal bonds may affect the remedies available to the Fund in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">event of a default. Adverse economic, business, legal or political </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">developments might affect all or a substantial portion of the Fund's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">municipal bonds in the same manner. The Fund will be particularly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to these risks to the extent that it focuses its investments in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">municipal bonds in a particular state or geographic region. Municipal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities may also have exposure to potential risks resulting from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">climate change and environmental events, including extreme weather, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">flooding, fires and other natural disasters. Climate risks, if materialized, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">can adversely impact a municipal issuer's financial plans in current or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">future years or may impair a funding source for municipal issuer's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">revenue bonds. As a result, the impact of climate risks could adversely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact the value of the Fund's municipal securities investments.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in trust certificates issued in tender option bond </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">programs. In these programs, a trust typically issues two classes of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certificates and uses the proceeds to purchase municipal securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">having relatively long maturities and bearing interest at a fixed interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate substantially higher than prevailing short-term tax-exempt rates. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There is a risk that the Fund will not be considered the owner of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tender option bond for federal income tax purposes, and thus will not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be entitled to treat such interest as exempt from federal income tax.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain tender option bonds may be less liquid or may become less </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquid as a result of, among other things, a credit rating downgrade, a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payment default or a disqualification from tax-exempt status. The Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment in the securities issued by a tender option bond trust may </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">involve greater risk and volatility than an investment in a fixed rate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bond, and the value of such securities may decrease significantly when </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market interest rates increase. Tender option bond trusts could be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">terminated due to market, credit or other events beyond the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">control, which could require the Fund to dispose of portfolio investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">at inopportune times and prices. The Fund may use a tender option </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bond program as a way of achieving leverage in its portfolio, in which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">case the Fund will be subject to leverage risk. The use of tender option </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bonds will impact the Fund's duration and cause the Fund to be subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to increased duration and interest rate risk.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in revenue bonds, which are typically issued to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fund a wide variety of capital projects including electric, gas, water and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sewer systems; highways, bridges and tunnels; port and airport facilities; </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">colleges and universities; and hospitals. Because the principal security </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for a revenue bond is generally the net revenues derived from a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particular facility or group of facilities or, in some cases, from the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">proceeds of a special excise or other specific revenue source or annual </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">revenues, there is no guarantee that the particular project will generate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">enough revenue to pay its obligations, in which case the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">performance may be adversely affected.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in participations in lease obligations or installment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchase contract obligations of municipal authorities or entities.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Although a municipal lease obligation does not constitute a general </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligation of the municipality for which the municipality's taxing power </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">is pledged, a municipal lease obligation is ordinarily backed by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">municipality's covenant to budget for,appropriate and make the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments due under the municipal lease obligation. However, certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">municipal lease obligations contain “non-appropriation” clauses, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provide that the municipality has no obligation to make lease or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">installment purchase payments in future years unless money is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">appropriated for such purpose on a yearly basis. In the case of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“non-appropriation” lease, the Fund's ability to recover under the lease </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in the event of non-appropriation or default will be limited solely to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repossession of the leased property, without recourse to the general </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">credit of the lessee, and the disposition or re-leasing of the property </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">might prove difficult.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Municipal securities are also subject to interest rate, credit, and liquidity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: Arial; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Interest rate risk.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The value of municipal securities, similar to other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fixed income securities, will likely drop as interest rates rise in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">general market. Conversely, when rates decline, bond prices generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rise.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: Arial; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Credit risk.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The risk that a borrower may be unable to make interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or principal payments when they are due. Funds that invest in municipal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities rely on the ability of the issuer to service its debt. This subjects </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund to credit risk in that the municipal issuer may be fiscally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unstable or exposed to large liabilities that could impair its ability to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">honor its financial obligations. Municipal issuers with significant debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">service requirements, in the near-to mid-term; unrated issuers and those </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with less capital and liquidity to absorb additional expenses may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">most at risk. To the extent the Fund invests in lower quality or high yield </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">municipal securities, it may be more sensitive to the adverse credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">events in the municipal market. The treatment of municipalities in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bankruptcy is more uncertain, and potentially more adverse to debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">holders, than for corporate issues.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: Arial; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Liquidity Risk.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The risk that investors may have difficulty finding a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">buyer when they seek to sell, and therefore, may be forced to sell at a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">discount to the market value. Liquidity may sometimes be impaired in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the municipal market and because the Fund primarily invests in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">municipal securities, it may find it difficult to purchase or sell such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities at opportune times. The municipal securities market can be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">susceptible to increases in volatility and decreases in liquidity. Liquidity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">can decline unpredictably in response to a variety of factors, including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">overall economic conditions or credit tightening. Increases in volatility </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and decreases in liquidity also may be caused by a rise in interest rates </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(or the expectation of a rise in interest rates). Liquidity can be impaired </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">due to interest rate concerns, credit events, or general supply and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">demand imbalances. Depending on the particular issuer and current </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economic conditions, municipal securities could be deemed more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">volatile investments.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition to general municipal market risks, different municipal sectors </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may face different risks. For instance, general obligation bonds are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">secured by the full faith, credit, and taxing power of the municipality </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuing the obligation. As such, timely payment depends on the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">municipality's ability to raise tax revenue and maintain a fiscally sound </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">budget. The timely payments may also be influenced by any unfunded </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pension liabilities or other post-employee benefit plan liabilities.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Revenue bonds are secured by special tax revenues or other revenue </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sources. If the specified revenues do not materialize, then the bonds </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may not be repaid.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Private activity bonds are yet another type of municipal security. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Municipalities use private activity bonds to finance the development of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">industrial facilities for use by private enterprise. Principal and interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments are to be made by the private enterprise benefiting from the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">development, which means that the holder of the bond is exposed to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the risk that the private issuer may default on the bond.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Moral obligation bonds are usually issued by special purpose public </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">entities. If the public entity defaults, repayment becomes a “moral </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligation” instead of a legal one. The lack of a legally enforceable right </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to payment in the event of default poses a special risk for a holder of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the bond because it has little or no ability to seek recourse in the event </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of default.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, a significant restructuring of federal income tax rates or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">even serious discussion on the topic in Congress could cause municipal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bond prices to fall. The demand for municipal securities is strongly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">influenced by the value of tax-exempt income to investors relative to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taxable income. Lower income tax rates potentially reduce the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">advantage of owning municipal securities.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Similarly, changes to state or federal regulation tied to a specific sector, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such as the hospital sector, could have an impact on the revenue stream </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for a given subset of the m<div style="display:inline;">ark</div>et.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Municipal notes are similar to general municipal debt obligations, but </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">they generally possess shorter terms. Municipal notes can be used to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provide interim financing and may not be repaid if anticipated revenues </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are not realized.</div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Distressed and Defaulted Securities Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investments in the securities of financially distressed issuers involve </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">substantial risks, including the risk of default. Distressed securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally trade significantly below “par” or full value because </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments in such securities and debt of distressed issuers or issuers in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">default are considered speculative and involve substantial risks in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition to the risks of investing in high-yield bonds. Such investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be in default at the time of investment. In addition, these securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may fluctuate more in price, and are typically less liquid. The Fund also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will be subject to significant uncertainty as to when, and in what </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">manner, and for what value obligations evidenced by securities of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financially distressed issuers will eventually be satisfied. Defaulted </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations might be repaid only after lengthy workout or bankruptcy </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">proceedings, during which the issuer might not make any interest or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other payments. In any such proceeding relating to a defaulted </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligation, the Fund may lose its entire investment or may be required </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to accept cash or securities with a value substantially less than its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">original investment. Moreover, any securities received by the Fund upon </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">completion of a workout or bankruptcy proceeding may be less liquid, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">speculative or restricted as to resale. Similarly, if the Fund participates in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">negotiations with respect to any exchange offer or plan of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reorganization with respect to the securities of a distressed issuer, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may be restricted from disposing of such securities. To the extent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that the Fund becomes involved in such proceedings, the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have a more active participation in the affairs of the issuer than that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assumed generally by an investor. The Fund may incur additional </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses to the extent it is required to seek recovery upon a default in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the payment of principal or interest on its portfolio holdings.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Also among the risks inherent in investments in a troubled issuer is that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">it frequently may be difficult to obtain information as to the true </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial condition of such issuer. PIMCO's judgments about the credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">quality of a financially distressed issuer and the relative value of its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities may prove to be wrong.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Inflation-Indexed Security Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Inflation-indexed debt securities are subject to the effects of actual or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">anticipated changes in market interest rates caused by factors other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">than inflation (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">e.g.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, real interest rates). In general, the value of an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inflation-indexed security, including Treasury Inflation-Protected </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Securities (“TIPS”), tends to decrease when real interest rates increase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and can increase when real interest rates decrease. Thus generally, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">during periods of rising inflation, the value of inflation-indexed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities will tend to increase and during periods of deflation, their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value will tend to decrease. Interest payments on inflation-indexed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities are unpredictable and will fluctuate as the principal and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest are adjusted for inflation. There can be no assurance that the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inflation index used (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.,</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> the Consumer Price Index (“CPI”)), which is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">calculated and published by a third party, will accurately measure the </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">real rate of inflation in the prices of goods and services. Increases in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">principal value of TIPS due to inflation are considered taxable ordinary </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income for the amount of the increase in the calendar year. Any increase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in the principal amount of an inflation-indexed debt security will be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">considered taxable ordinary income, even though the Fund will not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">receive the principal until maturity. Additionally, a CPI swap can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potentially lose value if the realized rate of inflation over the life of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">swap is less than the fixed market implied inflation rate (fixed breakeven </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate) that the investor agrees to pay at the initiation of the swap. With </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">municipal inflation-indexed securities, the inflation adjustment is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">integrated into the coupon payment, which is federally tax-exempt (and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be state tax-exempt). For municipal inflation-indexed securities, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">there is no adjustment to the principal value. Because municipal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inflation-indexed securities are a small component of the municipal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bond market, they may be less liquid than conventional municipal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bonds.</div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Debt Securities Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Debt securities are generally subject to the risks described below and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">further herein:</div></div></div><div style="line-height:12.0pt;margin-top:6pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Issuer risk.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The value of debt securities may decline for a number of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reasons that directly relate to the issuer, such as management </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">performance, financial leverage, reduced demand for the issuer’s goods </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and services, historical and prospective earnings of the issuer and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of the assets of the issuer. A change in the financial condition of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">single issuer may affect securities markets as a whole. These risks can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">apply to the Common Shares issued by the Fund and to the issuers of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities and other instruments in which the Fund invests.</div></div></div><div style="line-height:12.0pt;margin-top:6pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Interest rate risk.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The market value of debt securities changes in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">response to interest rate changes and other factors. Interest rate risk is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the risk that prices of debt securities will increase as interest rates fall </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and decrease as interest rates rise, which would be reflected in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s NAV. The Fund may lose money if short-term or long-term </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates rise sharply in a manner not anticipated by the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">management. Moreover, because rates on certain floating rate debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities typically reset only periodically, changes in prevailing interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rates (and particularly sudden and significant changes) can be expected </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to cause some fluctuations in the NAV of the Fund to the extent that it </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invests in floating rate debt securities.</div></div></div><div style="line-height:12.0pt;margin-top:6pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Prepayment risk.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">During periods of declining interest rates, borrowers </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may prepay principal. This may force the Fund to reinvest in lower </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">yielding securities, resulting in a possible decline in the Fund’s income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and distributions.</div></div></div><div style="line-height:12.0pt;margin-top:6pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Credit risk.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Credit risk is the risk that one or more debt securities in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s portfolio will decline in price or fail to pay interest or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">principal when due because the issuer of the security experiences a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decline in its financial status. Credit risk is increased when a portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">security is downgraded or the perceived creditworthiness of the issuer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deteriorates.</div></div></div><div style="line-height:12.0pt;margin-top:6pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Reinvestment risk.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Reinvestment risk is the risk that income from the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s portfolio will decline if the Fund invests the proceeds from </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">matured, traded or called fixed income securities at market interest rates </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that are below the portfolio’s current earnings rate.</div></div><div style="line-height:12.0pt;margin-top:6pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Duration and maturity risk.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may seek to adjust the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">duration or maturity of its investments in debt securities based on its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assessment of current and projected market conditions. The Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">incur costs in seeking to adjust the average duration or maturity of its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio of debt securities. There can be no assurances that the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assessment of current and projected market conditions will be correct or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that any strategy to adjust duration or maturity will be successful.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, from time to time, uncertainty regarding the status of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">negotiations in the U.S. government to increase the statutory debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ceiling could impact the creditworthiness of the United States and could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact the liquidity and value of U.S. Government and other securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and ultimately the Fund.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Sovereign Debt Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition to the other risks applicable to debt investments, sovereign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">debt (debt issued by a foreign government) may decline in value as a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result of default or other adverse credit event resulting from an issuer’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inability or unwillingness to make principal or interest payments in a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">timely fashion. A sovereign entity’s failure to make timely payments on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its debt can result from many factors, including, without limitation, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">insufficient foreign (non-U.S.) currency reserves or an inability to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sufficiently manage fluctuations in relative currency valuations, an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inability or unwillingness to satisfy the demands of creditors and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">relevant supranational entities regarding debt service or economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reforms, the size of the debt burden relative to economic output and tax </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">revenues, cash flow difficulties, and other political and social </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">considerations. The risk of loss to the Fund in the event of a sovereign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">debt default or other adverse credit event is heightened by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unlikelihood of any formal recourse or means to enforce its rights as a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">holder of the sovereign debt. In addition, sovereign debt restructurings, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which may be shaped by entities and factors beyond the Fund’s control, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may result in a loss in value of the Fund’s sovereign debt holdings.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Senior Debt Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund will be subject to greater levels of credit risk than funds that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">do not invest in below investment grade senior debt. The Fund may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be subject to greater levels of liquidity risk than funds that do not invest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in senior debt. Restrictions on transfers in loan agreements, a lack of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">publicly available information and other factors may, in certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instances, make senior debt more difficult to sell at an advantageous </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">time or price than other types of securities or instruments. Additionally, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">if the issuer of senior debt prepays, the Fund will have to consider </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reinvesting the proceeds in other senior debt or similar instruments that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may pay lower interest rates.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Zero-Coupon Bonds, Step-Ups and Payment-In-Kind Securities </div></div><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The market prices of zero-coupon, step-ups and payment-in-kind </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities are generally more volatile than the prices of securities that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pay interest periodically and in cash, and are likely to respond to </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in interest rates to a greater degree than other types of debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities with similar maturities and credit quality. Because </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">zero-coupon securities bear no interest, their prices are especially </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">volatile, and because zero-coupon bondholders do not receive interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments, the prices of zero-coupon securities generally fall more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dramatically than those of bonds that pay interest on a current basis </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when interest rates rise. The market for zero-coupon and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payment-in-kind securities may suffer decreased liquidity. In addition, as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these securities may not pay cash interest, the Fund’s investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exposure to these securities and their risks, including credit risk, will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increase during the time these securities are held in the Fund’s portfolio. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Further, to maintain its qualification for treatment as a RIC and to avoid </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund-level U.S. federal income and/or excise taxes, the Fund is required </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to distribute to its shareholders any income it is deemed to have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">received in respect of such investments, notwithstanding that cash has </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not been received currently, and the value of paid-in-kind interest. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Consequently, the Fund may have to dispose of portfolio securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">under disadvantageous circumstances to generate the cash, or may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have to leverage itself by borrowing the cash to satisfy this distribution </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requirement. The required distributions, if any, would result in an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increase in the Fund’s exposure to these securities. Zero coupon bonds, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">step-ups and payment-in-kind securities allow an issuer to avoid or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">delay the need to generate cash to meet current interest payments and, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as a result, may involve greater credit risk than bonds that pay interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currently or in cash. The Fund would be required to distribute the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income on these instruments as it accrues, even though the Fund will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not receive the income on a current basis or in cash. Thus, the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sell other investments, including when it may not be advisable to do so, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to make income distributions to its shareholders.</div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Loans and Other Indebtedness; Loan Acquisitions, </div></div><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Participations and Assignments Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Loan interests may take the form of direct interests acquired during a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">primary distribution or other purchase of a loan, or assignments of, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">novations of or participations in all or a portion of a loan acquired in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">secondary markets. In addition to credit risk and interest rate risk, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund's exposure to loan interests may be subject to additional risks. For </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">example, purchasers of loans and other forms of direct indebtedness </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">depend primarily upon the creditworthiness of the borrower for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payment of principal and interest. Loans are subject to the risk that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">scheduled interest or principal payments will not be made in a timely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">manner or at all, either of which may adversely affect the value of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loan. If the Fund does not receive scheduled interest or principal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments on such indebtedness, the Fund’s share price and yield could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be adversely affected. Loans that are fully secured may offer the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more protection than an unsecured loan in the event of non-payment of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">scheduled interest or principal if the Fund is able to access and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">monetize the collateral. However, the collateral underlying a loan, if any, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be unavailable or insufficient to satisfy a borrower’s obligation. If </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund becomes owner, whole or in part, of any collateral after a loan </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">is foreclosed, the Fund may incur costs associated with owning and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">monetizing its ownership of the collateral.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">During periods of deteriorating economic conditions, such as recessions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or periods of rising unemployment, or changing interest rates (notably </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increases), delinquencies and losses generally increase, sometimes </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dramatically, with respect to obligations under such loans. An economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">downturn or individual corporate developments could adversely affect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the market for these instruments and reduce the Fund’s ability to sell </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these instruments at an advantageous time or price. An economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">downturn could also lead to a higher non-payment rate and, a loan may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lose significant market value before a default occurs.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investments in loans through a purchase of a loan or a direct </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assignment of a financial institution’s interests with respect to a loan </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may involve additional risks to the Fund. For example, if a loan is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">foreclosed, the Fund could become owner, in whole or in part, of any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collateral, which could include, among other assets, real estate or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">real or personal property, and would bear the costs and liabilities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with owning and holding or disposing of the collateral. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Moreover, the purchaser of an assignment typically succeeds to all the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rights and obligations under the loan agreement with the same rights </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and obligations as the assigning lender. Assignments may, however, be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">arranged through private negotiations between potential assignees and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potential assignors, and the rights and obligations acquired by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchaser of an assignment may differ from, and be more limited than, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">those held by the assigning lender. The Fund may also invest in loans </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that are not secured by collateral which typically present greater risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">than collateralized loans.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In connection with purchasing loan participations, the Fund generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will have no right to enforce compliance by the borrower with the terms </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the loan agreement relating to the loan, nor any rights </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of set-off against the borrower, and the Fund may not directly benefit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from any collateral supporting the loan in which it has purchased the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loan participation. As a result, the Fund will be subject to the credit risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of both the borrower and the lender that is selling the participation. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the event of the insolvency of the lender selling a participation, the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be treated as a general creditor of the lender and may not benefit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from any set-off between the lender and the borrower. A bankruptcy </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">court may restructure the payment obligations under the loan so as to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reduce the amount to which the Fund would be entitled or extended the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">time for payment. A court could subordinate the Fund's rights to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rights of other creditors of the borrower under applicable law. Various </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">laws enacted for the protection of borrowers may apply to loans, and a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bankruptcy proceeding against a borrower could delay or limit the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability of the Fund to collect principal and interest payments on such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans. Certain loan participations may be structured in a manner </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">designed to prevent purchasers of participations from being subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the credit risk of the lender, but even under such a structure, in the event </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the lender’s insolvency, the lender’s servicing of the participation may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be delayed and the assignability of the participation impaired.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may have difficulty disposing of loans and loan participations. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Because there may not be a liquid market for many such investments, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund anticipates that such investments could be sold only to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limited number of institutional investors. The lack of a liquid secondary </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market may have an adverse impact on the value of such investments </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and the Fund’s ability to dispose of particular loans and loan </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participations when that would be desirable, including in response to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">specific economic event such as a deterioration in the creditworthiness </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the borrower. The lack of a liquid secondary market for loans and loan </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participations also may make it more difficult for the Fund to assign a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value to these securities for purposes of valuing the Fund’s portfolio.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investments in loans may include participations in bridge loans, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are loans taken out by borrowers for a short period (typically less than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">one year) pending arrangement of more permanent financing through, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for example, the issuance of bonds, frequently high yield bonds issued </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for the purpose of acquisitions.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investments in loans may include acquisitions of, or participation in, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">delayed draw and delayed funding loans and revolving credit facilities. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">These commitments may have the effect of requiring the Fund to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increase its investment in a borrower at a time when it might not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise decide to do so (including at a time when the company’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial condition makes it unlikely that such amounts will be repaid). </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Delayed draw and delayed funding loans and revolving credit facilities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be subject to restrictions on transfer, and only limited opportunities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may exist to resell such instruments. As a result, the Fund may be unable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to sell such investments at an opportune time or may have to resell </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">them at less than fair market value. Further, the Fund may need to hold </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquid assets in order to provide funding for these types of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commitments, meaning the Fund may not be able to invest in other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">attractive investments, or the Fund may need to liquidate existing assets </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in order to provide such funding. More generally, sales of the Fund's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio holdings may result in short-term capital gains (which are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally taxed to shareholders at ordinary income tax rates when </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distributed net of short-term capital losses and net of long-term capital </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">losses), potentially subjecting shareholders of the Fund to adverse tax </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consequences.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in loans used to finance the cost of construction, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">acquisition, development, and/ or rehabilitation of a property including, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">but not limited to, development of single-family for-sale homes, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">multi-family rentals and/or commercial facilities. Such construction </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lending may expose the Fund to increased risk of non-payment and loss </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">because the loan is not backed by a finished project. Such risk may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">depend on the nature of the construction and the relevant counterparty </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or counterparties, which may include, but not be limited to, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">homebuilders, private developers and/or entities with limited capital. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Repayment of these types of loans may depend on the borrower’s ability </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to secure permanent “take-out” financing, which requires the successful </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">completion of the project, or operation of the property with an income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">stream sufficient to meet operating and loan expenses. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these types of loans are subject to the risk of errors in estimations of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">property’s value at completion of construction and the estimated cost of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">construction, as well as the risk that the projects may not be completed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and have limited liquidity.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To the extent the Fund invests in loans, including, but not limited to, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bank loans, non-syndicated loans, the residual or equity tranches of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related and other asset-backed securities, which may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">referred to as subordinate mortgage-backed or asset-backed securities </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and interest-only mortgage-backed or asset-backed securities, and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments, the Fund may be subject to greater levels of credit risk, call </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk, settlement risk, risk of subordination to other creditors, insufficient </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or lack of protection under federal securities laws and liquidity risk. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">These instruments are considered predominantly speculative with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">respect to an issuer’s continuing ability to make principal and interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments and may be more volatile than other types of securities. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may also be subject to greater levels of liquidity risk than funds </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that do not invest in loans. In addition, the loans in which the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invests may not be listed on any exchange and a secondary market for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such loans may be comparatively illiquid relative to markets for other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more liquid fixed income securities. Consequently, transactions in loans </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may involve greater costs than transactions in more actively traded </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities. In connection with certain loan transactions, transaction costs </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that are borne by the Fund may include the expenses of third parties </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that are retained to assist with reviewing and conducting diligence, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">negotiating, structuring and servicing a loan transaction, and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">providing other services in connection therewith. Furthermore, the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may incur such costs in connection with loan transactions that are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pursued by the Fund but not ultimately consummated (so-called </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“broken deal costs”).</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Restrictions on transfers in loan agreements, a lack of publicly available </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">information, irregular trading activity and wide bid/ask spreads, among </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other factors, may, in certain circumstances, make loans more difficult to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sell at an advantageous time or price than other types of securities or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments. These factors may result in the Fund being unable to realize </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">full value for the loans and/or may result in the Fund not receiving the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">proceeds from a sale of a loan for an extended period after such sale, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">each of which could result in losses to the Fund. Some loans may have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extended trade settlement periods, including settlement periods of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">greater than seven days, which may result in cash not being </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">immediately available to the Fund. If an issuer of a loan prepays or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">redeems the loan prior to maturity, the Fund may have to reinvest the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">proceeds in other loans or similar instruments that may pay lower </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates. Because of such risks involved in investing in loans, an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment in the Fund should be considered speculative.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investments in subordinated and unsecured loans generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are subject to similar risks as those associated with investments in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">secured loans. Subordinated or unsecured loans are lower in priority of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payment to secured loans and are subject to the additional risk that the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cash flow of the borrower and property securing the loan or debt, if any, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be insufficient to meet scheduled payments after giving effect to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the senior secured obligations of the borrower. This risk is generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">higher for subordinated unsecured loans or debt, which are not backed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by a security interest in any specific collateral. Subordinated and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unsecured loans generally have greater price volatility than secured </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans and may be less liquid. There is also a possibility that originators </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will not be able to sell participations in subordinated or unsecured </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans, which would create greater credit risk exposure for the holders of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such loans. Subordinate and unsecured loans share the same risks as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other below investment grade securities.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There may be less readily available information about most loans and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the underlying borrowers than is the case for many other types of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities. Loans may be issued by borrowers that are not subject to SEC </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reporting requirements and therefore may not be required to file reports </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with the SEC or may file reports that are not required to comply with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">SEC form requirements. In addition, such borrowers may be subject to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">less stringent liability disclosure regime than companies subject to SEC </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reporting requirements. Loans may not be considered “securities,” and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchasers, such as the Fund, therefore may not be entitled to rely on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the anti-fraud protections of the federal securities laws. Because there is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limited public information available regarding loan investments, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund is particularly dependent on the analytical abilities of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investment Manager.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Economic exposure to loan interests through the use of derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions may involve greater risks than if the Fund had invested in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the loan interest directly during a primary distribution, through </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assignments of, novations of or participations in a loan acquired in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">secondary markets since, in addition to the risks described above, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain derivative transactions may be subject to leverage risk and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">greater illiquidity risk, counterparty risk, valuation risk and other risks.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">“Covenant-lite” Obligations Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Covenant-lite obligations contain fewer maintenance covenants than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other obligations, or no maintenance covenants, and may not include </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">terms that allow the lender to monitor the performance of the borrower </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and declare a default if certain criteria are breached, which would allow </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the lender to restructure the loan or take other action intended to help </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mitigate losses. Covenant-lite loans carry a risk that the borrower could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transfer or encumber its assets, which could reduce the amount of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assets that can be used to satisfy debts and result in losses for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">debtholders. Covenant-lite loans may carry more risk than traditional </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans as they allow individuals and corporations to engage in activities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that would otherwise be difficult or impossible under a covenant-heavy </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loan agreement. In the event of default, covenant-lite loans may exhibit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">diminished recovery values as the lender may not have the opportunity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to negotiate with the borrower prior to default.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Subprime Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Loans, and debt instruments collateralized by loans, acquired by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may be subprime in quality, or may become subprime in quality. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Although there is no specific legal or market definition of “subprime,” </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subprime loans are generally understood to refer to loans made to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">borrowers that display poor credit histories and other characteristics </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that correlate with a higher default risk. Accordingly, subprime loans, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and debt instruments secured by such loans, have speculative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">characteristics and are subject to heightened risks, including the risk of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">nonpayment of interest or repayment of principal, and the risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with investments in high yield securities. In addition, these </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments could be subject to increased regulatory scrutiny. The Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">is not restricted by any particular borrower credit risk criteria and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">qualifications when acquiring loans or debt instruments collateralized </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by loans.</div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Reinvestment Risk</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Income from the Fund’s portfolio will decline if and when the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invests the proceeds from matured, traded or called debt obligations at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market interest rates that are below the portfolio’s current earnings rate. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">For instance, during periods of declining interest rates, an issuer of debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations may exercise an option to redeem securities prior to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">maturity, forcing the Fund to invest in lower-yielding securities. The Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">also may choose to sell higher yielding portfolio securities and to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchase lower yielding securities to achieve greater portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">diversification, because the Investment Manager believes the current </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">holdings are overvalued or for other investment-related reasons. A </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decline in income received by the Fund from its investments is likely to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have a negative effect on dividend levels and the market price, NAV </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and/or overall return of the Common Shares.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Call Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Call risk refers to the possibility that an issuer may exercise its right to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">redeem a fixed income security earlier than expected (a call). Issuers </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may call outstanding securities prior to their maturity for a number of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reasons (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">e.g.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, declining interest rates, changes in credit spreads and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">improvements in the issuer’s credit quality), and changes in the rate at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which prepayments or redemptions occur can affect the return on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment of these securities. If an issuer calls a security in which the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund has invested, the Fund may not recoup the full amount of its initial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment or may not realize the full anticipated earnings from the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment and may be forced to reinvest in lower-yielding securities, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities with greater credit risks or securities with other, less favorable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">features.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Foreign (Non-U.S.) Investment Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Foreign (non-U.S.) securities may experience more rapid and extreme </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in value than securities of U.S. issuers or securities that trade </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exclusively in U.S. markets. The securities markets of many foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">countries are relatively small, with a limited number of companies </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">representing a small number of industries. Additionally, issuers of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">foreign (non-U.S.) securities are usually not subject to the same degree </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of regulation as U.S. issuers. Financial reporting, legal, corporate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">governance, accounting, auditing and custody standards of foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">countries differ, in some cases significantly, from U.S. standards. Global </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economies and financial markets are becoming increasingly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interconnected, and conditions and events in one country, region or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial market may adversely impact issuers in a different country, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">region or financial market. Foreign (non-U.S.) market trading hours, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">clearance and settlement procedures, and holiday schedules may limit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund's ability to buy and sell securities. Investments in foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(non-U.S.) markets may also be adversely affected by governmental </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">actions such as the imposition of capital controls, nationalization of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">companies or industries, expropriation of assets or the imposition of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">punitive taxes. The governments of certain countries may prohibit or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impose substantial restrictions on foreign (non-U.S.) investing in their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">capital markets or in certain sectors or industries. In addition, a foreign </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(non-U.S.) government may limit or cause delay in the convertibility or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repatriation of its currency which would adversely affect the U.S. dollar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value and/or liquidity of investments denominated in that currency.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain foreign (non-U.S.) investments may become less liquid in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">response to market developments or adverse investor perceptions, or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">become illiquid after purchase by the Fund, particularly during periods </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of market turmoil. A reduction in trading in securities of issuers located </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in countries whose economies are heavily dependent upon trading with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">key partners may have an adverse impact on the Fund's investments.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Also, nationalization, expropriation or confiscatory taxation, unstable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">governments, decreased market liquidity, currency blockage, market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disruptions, political changes, security suspensions or diplomatic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">developments, trade restrictions (including tariffs) or the imposition of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sanctions or other similar measures could adversely affect the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments in a foreign (non-U.S.) country and may render holdings in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that foreign (non-U.S.) country illiquid or even worthless. In the event of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">nationalization, expropriation or other confiscation, the Fund could lose </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its entire investment in foreign (non-U.S.) securities. The type and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">severity of sanctions and other similar measures, including counter </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sanctions and other retaliatory actions, that may be imposed could vary </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">broadly in scope, and their impact is difficult to ascertain. These types of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">measures may include, but are not limited to, banning a sanctioned </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">country or certain persons or entities associated with such country from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">global payment systems that facilitate cross-border payments, restricting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities transactions, restricting dealings with entities that are critical </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the infrastructure of securities and related transactions in specific </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">jurisdictions, restricting transactions in specified sectors of certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">countries, and freezing the assets of particular countries, entities or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">persons. The imposition of sanctions and other similar measures could, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">among other things, result in a decline in the value and/or liquidity of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affected securities, downgrades in the credit ratings of affected or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">related securities, currency devaluation or volatility, and increased </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market volatility and disruption in the securities or sanctioned country </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and throughout the world. Sanctions and other similar measures could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">directly or indirectly limit or prevent the Fund from buying and selling </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities, receiving interest or principal payments due on the securities, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significantly delay or prevent securities transactions, and adversely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact the Fund's liquidity and performance and/or prevent the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidation of a portfolio holding sanctioned securities. Adverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions in a certain region can adversely affect securities of other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">countries whose economies appear to be unrelated. To the extent that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund invests a significant portion of its assets in a specific </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">geographic region or in securities denominated in a particular foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(non-U.S.) currency, the Fund will generally have more exposure to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regional economic risks, including weather emergencies and natural </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disasters, associated with foreign (non-U.S.) investments. Additionally, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">events and evolving conditions in certain markets or regions may alter </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the risk profile of investments tied to those markets or regions. This may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cause investments tied to such markets or regions to become riskier or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more volatile, even when investments in such markets or regions were </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">perceived as comparatively stable historically. Foreign (non-U.S.) </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities may also be less liquid (particularly during market closures </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">due to local market holidays or other reasons) and more difficult to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value than securities of U.S. issuers.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: Arial; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Investments in Russia.</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund may invest in securities and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments that are economically tied to Russia. Investments in Russia </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are subject to various risks such as, but not limited to political, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economic, legal, market and currency risks. The risks include uncertain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">political and economic policies, short -term market volatility, poor </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">accounting standards, corruption and crime, an inadequate regulatory </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">system, regional armed conflict and unpredictable taxation. Investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in Russia are particularly subject to the risk that further economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sanctions, export and import controls, and other similar measures may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be imposed by the United States and/or other countries. Other similar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">measures may include, but are not limited to, banning or expanding </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bans on Russia or certain persons or entities associated with Russia </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from global payment systems that facilitate cross-border payments, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">restricting the settlement of securities transactions by certain investors, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and freezing Russian assets or those of particular countries, entities or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">persons with ties to Russia (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">e.g.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, Belarus). Such sanctions and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">similar measures - which may impact companies in many sectors, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including energy, financial services, technology, accounting, quantum </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">computing, shipping, aviation, metals and mining, defense, architecture, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">engineering, construction, manufacturing and transportation, among </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">others - and Russia's countermeasures may negatively impact the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund's performance and/or ability to achieve its investment objectives. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">For example, certain investments may be prohibited and/or existing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments may become illiquid (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">e.g.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, in the event that transacting in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain existing investments is prohibited, securities markets close, or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market participants cease transacting in certain investments in light of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">geopolitical events, sanctions or related considerations), which could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">render any such securities held by the Fund unmarketable for an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">indefinite period of time and/or cause the Fund to sell other portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">holdings at a disadvantageous time or price or to continue to hold </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments that the Fund no longer seeks to hold. In addition, such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sanctions or other similar measures, and the Russian government's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">response, could result in a downgrade of Russia's credit rating or of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities of issuers located in or economically tied to Russia, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">devaluation of Russia's currency and/or increased volatility with respect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to Russian securities and the ruble. Moreover, disruptions caused by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Russian military action or other actions (including cyberattacks, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">espionage or other asymmetric measures) or resulting actual or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">threatened responses to such activity may impact Russia's economy and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Russian and other issuers of securities in which the Fund is invested.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Such resulting actual or threatened responses may include, but are not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limited to, purchasing and financing restrictions, withdrawal of financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intermediaries, boycotts or changes in consumer or purchaser </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">preferences, sanctions, export and import controls, tariffs or cyberattacks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on the Russian government, Russian companies or Russian individuals, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including politicians. Any actions by Russia made in response to such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sanctions or retaliatory measures could further impair the value and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidity of Fund investments. Sanctions and other similar measures </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have resulted in defaults on debt obligations by certain corporate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuers and the Russian Federation that could lead to cross-defaults or </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cross-accelerations on other obligations of these issuers. The Russian </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities market is characterized by limited volume of trading, resulting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in difficulty in obtaining accurate prices and trading. These issues can be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">magnified as a result of sanctions and other similar measures that may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be imposed and the Russian government's response.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Russian securities market, as compared to U.S. markets, has </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significant price volatility, less liquidity, a smaller market capitalization </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and a smaller number of traded securities. There may be little publicly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">available information about issuers. Settlement, clearing and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">registration of securities transactions are subject to risks. Prior to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">implementation of the National Settlement Depository (”NSD“), a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">recognized central securities depository, there was no central </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">registration system for equity share registration in Russia, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">registration was carried out by either the issuers themselves or by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">registrars located throughout Russia. Title to Russian equities held </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">through the NSD is now based on the records of the NSD and not the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">registrars. Although the implementation of the NSD has enhanced the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">efficiency and transparency of the Russian securities market, issues </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">resulting in loss can still occur. In addition, sanctions by the European </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Union against the NSD, as well as the potential for sanctions by other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">governments, could make it more difficult to conduct or confirm </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions involving Russian securities. Ownership of securities issued </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by Russian companies that are not held through depositories such as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the NSD may be recorded by companies themselves and by registrars. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Moreover, changes in Russian laws and regulations could require the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transfer of securities from the NSD to registrars or other parties outside </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of standard custodial arrangements. In such cases, the risk is increased </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that the Fund could lose ownership rights through fraud, negligence or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">oversight. While applicable Russian regulations impose liability on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">registrars for losses resulting from their errors, it may be difficult for the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund to enforce any rights it may have against the registrar or issuer of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the securities in the event of loss of share registration. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuers and registrars are still prominent in the validation and approval </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of documentation requirements for corporate action processing in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Russia. Because the documentation requirements and approval criteria </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">vary between registrars and issuers, there remain unclear and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inconsistent market standards in the Russian market with respect to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">completion and submission of corporate action elections. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sanctions or Russian countermeasures may prohibit or limit the Fund's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability to participate in corporate actions, and therefore require the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to forego voting on or receiving funds that would otherwise be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">beneficial to the Fund. To the extent that the Fund suffers a loss relating </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to title or corporate actions relating to its portfolio securities, it may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficult for the Fund to enforce its rights or otherwise remedy the loss. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Russian securities laws may not recognize foreign nominee accounts </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">held with a custodian bank, and therefore the custodian may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">considered the ultimate owner of securities they hold for their clients.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Adverse currency exchange rates are a risk and there may be a lack of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">available currency hedging instruments. Investments in Russia may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to the risk of nationalization or expropriation of assets. Oil, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">natural gas, metals, minerals and timber account for a significant </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portion of Russia's exports, leaving the country vul<div style="display:inline;">nerabl</div>e to swings in </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">world prices and to sanctions or other actions that may be directed at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Russian economy as a whole or at Russian oil, natural gas, metals, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">minerals or timber industries.</div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Emerging Markets Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Foreign (non-U.S.) investment risk may be particularly high to the extent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that the Fund invests in securities of issuers based in or doing business </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in emerging market countries or invests in securities denominated in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currencies of emerging market countries. Investing in securities of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuers based in or doing business in emerging markets entails all of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risks of investing in foreign securities noted above, but to a heightened </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">degree.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investments in emerging market countries pose a greater degree of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">systemic risk (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, the risk of a cascading collapse of multiple institutions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">within a country, and even multiple national economies). The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inter-relatedness of economic and financial institutions within and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">among emerging market economies has deepened over the years, with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the effect that institutional failures and/or economic difficulties that are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of initially limited scope may spread throughout a country, a region or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">all or most emerging market countries. This may undermine any attempt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by the Fund to reduce risk through geographic diversification of its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There is a heightened possibility of imposition of withholding or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taxes on interest or dividend income or capital gains generated from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">emerging market securities. Governments of emerging market countries </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may engage in confiscatory taxation or expropriation of income and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assets to raise revenues or to pursue a domestic political agenda. In the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">past, emerging market countries have nationalized assets, companies </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and even entire sectors, including the assets of foreign investors, with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inadequate or no compensation to the prior owners. There can be no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assurance that the Fund will not suffer a loss of any or all of its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments, or interest or dividends thereon, due to adverse fiscal or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other policy changes in emerging market countries.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There is also a greater risk that an emerging market government may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">take action that impedes or prevents the Fund from taking income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and/or capital gains earned in the local currency and converting into </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. dollars (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, “repatriating” local currency investments or profits). </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain emerging market countries have sought to maintain foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exchange reserves and/or address the economic volatility and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dislocations caused by the large international capital flows by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">controlling or restricting the conversion of the local currency into other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currencies. This risk tends to become more acute when economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions otherwise worsen. There can be no assurance that if the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">earns income or capital gains in an emerging market currency or PIMCO </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise seeks to withdraw the Fund’s investments from a given </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">emerging market country, capital controls imposed by such country will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not prevent, or cause significant expense, or delay in, doing so.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Bankruptcy law and creditor reorganization processes may differ </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">substantially from those in the United States, resulting in greater </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">uncertainty as to the rights of creditors, the enforceability of such rights, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reorganization timing and the classification, seniority and treatment of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">claims. In certain emerging market countries, although bankruptcy laws </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have been enacted, the process for reorganization remains highly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">uncertain. In addition, it may be impossible to seek legal redress against </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">an issuer that is a sovereign state.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Emerging market countries typically have less established regulatory, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disclosure, legal, accounting, recordkeeping and financial reporting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">systems than those in more developed markets, which may increase the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potential for market manipulation or reduce the scope or quality of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial information available to investors. Governments in emerging </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market countries are often less stable and more likely to take extra-legal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">action with respect to companies, industries, assets, or foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ownership than those in more developed markets. Moreover, it can be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more difficult for investors to bring litigation or enforce judgments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">against issuers in emerging markets or for U.S. regulators to bring </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">enforcement actions, or obtain information needed to pursue or enforce </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such judgments, against such issuers. In addition, foreign companies </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with securities listed on U.S. exchanges may be delisted if they do not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">meet U.S. accounting standards and auditor oversight requirements, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which may decrease the liquidity and value of the securities. The Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may also be subject to emerging markets risk if it invests in derivatives </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or other securities or instruments whose value or return are related to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the value or returns of emerging markets securities.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Other heightened risks associated with emerging markets investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">include without limitation, (i) risks due to less social, political and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economic stability; (ii) the smaller size of the market for such securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and a lower volume of trading, resulting in a lack of liquidity and in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">price volatility; (iii) certain national policies which may restrict the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment opportunities, including sanctions and restrictions on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investing in issuers or industries deemed sensitive to relevant national </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interests and requirements that government approval be obtained prior </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to investment by foreign persons; (iv) certain national policies that may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">restrict the Fund’s repatriation of investment income, capital or the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">proceeds of sales of securities, including temporary restrictions on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">foreign capital remittances; (v) the lack of uniform accounting and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">auditing standards and/or standards that may be significantly different </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from the standards required in the United States; (vi) less publicly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">available financial and other information regarding issuers; (vii) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potential difficulties in enforcing contractual obligations; and (viii) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">higher rates of inflation, higher interest rates and other economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">concerns. Countries with emerging securities markets may additionally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">experience problems with share registration, settlement and custody, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which may result in losses to the Fund. The Fund may invest to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">substantial extent in emerging market securities that are denominated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in local currencies, subjecting the Fund to a greater degree of foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currency risk. Also, investing in emerging market countries may entail </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchases of securities of issuers that are insolvent, bankrupt or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise of questionable ability to satisfy their payment obligations as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">they become due, subjecting the Fund to a greater amount of credit risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and/or high yield risk. The economy of some emerging markets may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particularly exposed to or affected by a certain industry or sector, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">therefore issuers and/or securities of such emerging markets may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more affected by the performance of such industries or sectors.</div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Currency Risk</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Currency risk may be particularly high because the Fund may, at times </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or in general, have substantial exposure to emerging market currencies, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and engage in foreign currency transactions that are economically tied </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to emerging market countries. These currency transactions may present </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market, credit, currency, liquidity, legal, political, headline, reputational </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other risks different from, or greater than, the risks of investing in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">developed foreign (non-U.S.) currencies or engaging in foreign currency </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions that are economically tied to developed foreign countries.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investments denominated in foreign (non-U.S.) currencies or that trade </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in and receive revenues in, foreign (non-U.S.) currencies, derivatives or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other instruments that provide exposure to foreign (non-U.S.) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currencies, are subject to the risk that those currencies will decline in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value relative to the U.S. dollar, or, in the case of hedging positions, that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the U.S. dollar will decline in value relative to the currency being </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hedged.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Currency rates in foreign (non-U.S.) countries may fluctuate significantly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">over short periods of time for a number of reasons, including changes in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest or inflation rates, balance of payments and governmental </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">surpluses or deficits, intervention (or the failure to intervene) by U.S. or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">foreign (non-U.S.) governments, central banks or supranational entities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such as the International Monetary Fund, the imposition of currency </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">controls or other political developments in the United States or abroad. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">As a result, the Fund’s investments in or exposure to foreign (non-U.S.) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currencies and/or foreign (non-U.S.) currency-denominated securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may reduce the returns of the Fund. Currency risk may be particularly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">high to the extent that the Fund invests in foreign (non-U.S.) currencies </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or engages in foreign currency transactions that are economically tied to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">emerging market countries. These currency transactions may present </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market, credit, currency, liquidity, legal, political and other risks different </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from, or greater than, the risks of investing in developed foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(non-U.S.) currencies or engaging in foreign currency transactions that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are economically tied to developed foreign countries. Devaluation of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currency by a country's government or banking authority can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significantly impact the value of any investments denominated in that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currency. These fluctuations may have a significant adverse impact on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the value of the Fund’s portfolio and/or the level of Fund distributions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">made to Common Shareholders. There is no assurance that a hedging </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strategy, if used, will be successful. The Fund may also be adversely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impacted by expenses incurred by converting between currencies to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchase and sell securities not valued in the U.S. dollar, as well as by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currency restrictions, exchange control regulation, or governmental </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">restrictions that limit or otherwise delay the Fund’s ability to convert </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currencies.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Moreover, currency hedging techniques may be unavailable with respect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to emerging market currencies. As a result, the Fund’s investments in or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exposure to foreign (non-U.S.) currencies and/or foreign (non-U.S.) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currency-denominated, and especially emerging market-currency </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">denominated, securities may reduce the returns of the Fund.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The local emerging market currencies in which the Fund may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invested from time to time may experience substantially greater </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">volatility against the U.S. dollar than the major convertible currencies of </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">developed countries. Some of the local currencies in which the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may invest are neither freely convertible into one of the major currencies </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">nor internationally traded. The local currencies may be convertible into </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other currencies only inside the relevant emerging market where the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limited availability of such other currencies may tend to inflate their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">values relative to the local currency in question. Such internal exchange </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">markets can therefore be said to be neither liquid nor competitive. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, many of the currencies of emerging market countries in which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund may invest have experienced steady devaluation relative to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">freely convertible currencies.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Continuing uncertainty as to the status of the euro and the European </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Monetary Union (“EMU”) has created significant volatility in currency </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and financial markets generally. Any partial or complete dissolution of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the EMU could have significant adverse effects on currency and financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">markets, and on the values of the Fund’s portfolio investments. If one or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more EMU countries were to stop using the euro as its primary currency, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s investments in such countries may be redenominated into a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">different or newly adopted currency. As a result, the value of those </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments could decline significantly and unpredictably. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities or other investments that are redenominated may be subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to foreign currency risk, liquidity risk and valuation risk to a greater </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extent than similar investments currently denominated in euros. To the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extent a currency used for redenomination purposes is not specified in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">respect of certain EMU-related investments, or should the euro cease to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be used entirely, the currency in which such investments are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">denominated may be unclear, making such investments particularly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficult to value or dispose of. The Fund may incur additional expenses </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the extent it is required to seek judicial or other clarification of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">denomination or value of such securities.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There can be no assurance that if the Fund earns income or capital gains </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in a non-U.S. country or PIMCO otherwise seeks to withdraw the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments from a given country, capital controls imposed by such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">country will not prevent, or cause significant expense in, doing so.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">U.S. Government Securities Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain U.S. government securities, such as U.S. Treasury bills, notes, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bonds, and mortgage-related securities guaranteed by the Government </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">National Mortgage Association (“GNMA”), are supported by the full </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">faith and credit of the United States; others, such as those of the Federal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Home Loan Banks (“FHLBs”) or the Federal Home Loan Mortgage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Corporation (“FHLMC”), are supported by the right of the issuer to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">borrow from the U.S. Treasury; others, such as those of the Federal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">National Mortgage Association (“FNMA”), are supported by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">discretionary authority of the U.S. government to purchase the agency’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations; and still others are supported only by the credit of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">agency, instrumentality or corporation. U.S. government securities are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to market risk, interest rate risk and credit risk. Although </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">legislation has been enacted to support certain government sponsored </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">entities, including the FHLBs, FHLMC and FNMA, there is no assurance </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that the obligations of such entities will be satisfied in full, or that such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations will not decrease in value or default. It is difficult, if not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impossible, to predict the future political, regulatory or economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes that could impact the government sponsored entities and the </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">values of their related securities or obligations. In addition, certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">governmental entities, including FNMA and FHLMC, have been subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to regulatory scrutiny regarding their accounting policies and practices </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other concerns that may result in legislation, changes in regulatory </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">oversight and/or other consequences that could adversely affect the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">credit quality, availability or investment character of securities issued by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these entities. Yields available from U.S. government debt securities are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally lower than the yields available from such other securities. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">values of U.S. government securities change as interest rates fluctuate.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Periodically, uncertainty regarding the status of negotiations in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. government to increase the statutory debt ceiling could increase the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk that the U.S. government may default on payments on certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. government securities, cause the credit rating of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. government to be downgraded, increase volatility in the stock and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bond markets, result in higher interest rates, reduce prices of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. Treasury and other securities, and/or increase the costs of various </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">kinds of debt. If a government-sponsored entity is negatively impacted </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by legislative or regulatory action (or lack thereof), is unable to meet its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations, or its creditworthiness declines, the performance of a fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that holds securities of the entity will be adversely impacted.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Convertible Securities Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Convertible securities are fixed income securities, preferred securities or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other securities that are convertible into or exercisable for common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">stock of the issuer (or cash or securities of equivalent value) at either a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">stated price or a stated rate. Convertible debt securities pay interest and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">convertible preferred stocks pay dividends until they mature or are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">converted, exchanged or redeemed. The market values of convertible </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities may decline as interest rates increase and, conversely, may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increase as interest rates decline. A convertible security’s market value, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">however, tends to reflect the market price of the common stock of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuing company when that stock price approaches or is greater than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the convertible security’s “conversion price.” The conversion price is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">defined as the predetermined price at which the convertible security </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could be exchanged for the associated stock. Certain types of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">convertible securities may decline in value or lose their value entirely in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the event the issuer’s financial condition becomes significantly impaired. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">As the market price of the underlying common stock declines, the price </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the convertible security tends to be influenced more by the yield of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the convertible security. Thus, it may not decline in price to the same </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extent as the underlying common stock. In the event of a liquidation of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the issuing company, holders of convertible securities may be paid </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">before the company’s common stockholders but after holders of any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">senior debt obligations of the company. Consequently, the issuer’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">convertible securities generally entail less risk than its common stock </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">but more risk than its other debt obligations. Convertible securities are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">often rated below investment grade or not rated.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Synthetic Convertible Securities Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Synthetic convertible securities involve the combination of separate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities that possess the two principal characteristics of a traditional </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">convertible security (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, an income-producing component and a right to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">acquire an equity security). Synthetic convertible securities are often </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">achieved, in part, through investments in warrants or options to buy </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">common stock (or options on a stock index), and therefore are subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the risks associated with derivatives. The value of a synthetic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">convertible security will respond differently to market fluctuations than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a traditional convertible security because a synthetic convertible is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">composed of two or more separate securities or instruments, each with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its own market value. Because the convertible component is typically </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">achieved by investing in warrants or options to buy common stock at a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain exercise price, or options on a stock index, synthetic convertible </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities are subject to the risks associated with derivatives. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, if the value of the underlying common stock or the level of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">index involved in the convertible component falls below the exercise </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">price of the warrant or option, the warrant or option may lose all value.</div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Contingent Convertible Securities Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">CoCos have no stated maturity, have fully discretionary coupons and are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">typically issued in the form of subordinated debt instruments. CoCos </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally either convert into equity or have their principal written down </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(including potentially to zero) upon the occurrence of certain triggering </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">events (“triggers”) linked to regulatory capital thresholds or regulatory </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">actions relating to the issuer’s continued viability. As a result, an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment by the Fund in CoCos is subject to the risk that coupon (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest) payments may be cancelled by the issuer or a regulatory </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">authority in order to help the issuer absorb losses and the risk of total </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loss. If such an event occurs, an investor may not have any rights to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repayment of the principal amount of the securities. Additionally, an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investor may not be able to collect interest payments or dividends on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such securities. An investment by the Fund in CoCos is also subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the risk that, in the event of the liquidation, dissolution or winding-up of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">an issuer prior to a trigger event, the Fund’s rights and claims will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally rank junior to the claims of holders of the issuer’s other debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations and CoCos may also be treated as junior to an issuer’s other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations and securities. In addition, if CoCos held by the Fund are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">converted into the issuer’s underlying equity securities following a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">trigger event, the Fund’s holding may be further subordinated due to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the conversion from a debt to equity instrument. Further, the value of an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment in CoCos is unpredictable and will be influenced by many </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">factors and risks, including interest rate risk, credit risk, market risk and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidity risk. An investment by the Fund in CoCos may result in losses to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Valuation Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain securities in which the Fund invests may be less liquid and more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficult to value than other types of securities. Investments for which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market quotations are not readily available are valued at fair value as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">determined in good faith pursuant to Rule 2a-5 under the 1940 Act. Fair </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value pricing may require subjective determinations about the value of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">security or other asset. As a result, there can be no assurance that fair </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value pricing will result in adjustments to the prices of securities or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assets or that fair value pricing will reflect actual market value, and it is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">possible that the fair value determined for a security or other asset will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be materially different from quoted or published prices, from the prices </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">used by others for the same security or other asset and/or from the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value that actually could be or is realized upon the sale of that security </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or other asset.</div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Real Estate Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To the extent that the Fund invests directly or indirectly in real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments, including investments in equity or debt securities issued by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">private and public REITs, real estate operating companies (“REOCs”), </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">private or public real estate-related loans and real estate-linked </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivative instruments, it will be subject to the risks associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">owning real estate and with the real estate industry generally. These </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments carry increased risks, which include, but are not limited to: </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the burdens of ownership of real property; general and local economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions (such as an oversupply of space or a reduction in demand for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">space); fluctuations in the supply and demand for properties (including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">competition based on rental rates); energy and supply shortages; </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fluctuations in average occupancy and room rates; the attractiveness, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">type and location of the properties and changes in the relative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">popularity of commercial properties as an investment; the financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">condition and resources of tenants, buyers and sellers of properties; </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increased mortgage defaults; the quality of maintenance, insurance and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">management services; changes in the availability of debt financing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which may render the sale or refinancing of properties difficult or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impracticable; changes in building, environmental and other laws </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and/or regulations (including those governing usage and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">improvements), fiscal policies and zoning laws; changes in real property </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tax rates; changes in interest rates and the availability of mortgage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">funds which may render the sale or refinancing of properties difficult or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impracticable; changes in operating costs and expenses; energy and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">supply shortages; uninsured losses or delays from casualties or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">condemnation; negative developments in the economy that depress </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">travel or leasing activity; environmental liabilities; contingent liabilities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on disposition of assets; uninsured or uninsurable casualties; acts of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">God, including earthquakes, hurricanes and other natural disasters; </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">social unrest and civil disturbances, epidemics, pandemics or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">public crises; terrorist attacks and war; risks and operating problems </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">arising out of the presence of certain construction materials, structural </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or property level latent defects, work stoppages, shortages of labor, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strikes, union relations and contracts, fluctuating prices and supply of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">labor and/or other labor-related factor; and other factors which are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">beyond the control of PIMCO and its affiliates.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, the Fund’s investments will be subject to various risks which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could cause fluctuations in occupancy, rental rates, operating income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and expenses or which could render the sale or financing of its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties difficult or unattractive. For example, following the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">termination or expiration of a tenant’s lease, there may be a period of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">time before receiving rental payments under a replacement lease. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">During that period, the Fund would continue to bear fixed expenses </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such as interest, real estate taxes, maintenance and other operating </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses. In addition, declining economic conditions may impair the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability to attract replacement tenants and achieve rental rates equal to </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or greater than the rents paid under previous leases. Increased </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">competition for tenants may require capital improvements to properties </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which would not have otherwise been planned.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Ultimately, to the extent it is not possible to renew leases or re-let space </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as leases expire, decreased cash flow from tenants will result, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could adversely impact the Fund’s operating results.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Real estate values have historically been cyclical. As the general </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economy grows, demand for real estate increases and occupancies and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rents may increase. As occupancies and rents increase, property values </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increase, and new development occurs. As development may occur, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">occupancies, rents and property values may decline. Because leases are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">usually entered into for long periods and development activities often </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">require extended times to complete, the real estate value cycle often </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lags the general business cycle. Because of this cycle, real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">companies may incur large swings in their profits and the prices of their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities. Developments following the onset of COVID-19 have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely impacted certain commercial real estate markets, causing the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deferral of mortgage payments, renegotiated commercial mortgage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans, commercial real estate vacancies or outright mortgage defaults. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">These developments accelerated macro trends such as work from home </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and online shopping which have negatively impacted (and may continue </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to negatively impact) certain industries, such as brick-and-mortar retail.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The total returns available from investments in real estate generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">depend on the amount of income and capital appreciation generated by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the related properties. The performance of real estate, and thereby the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund, will be reduced by any related expenses, such as expenses paid </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">directly at the property level and other expenses that are capitalized or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise embedded into the cost basis of the real estate.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Separately, certain service providers to the Fund and/or its Subsidiaries, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as applicable, with respect to its real estate or real estate-related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments may be owned by, employed by, or otherwise related to, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO, Allianz SE, their affiliates and/or their respective employees, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consultants and other personnel. PIMCO may, in its sole discretion, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">determine to provide, or engage or recommend an affiliate of PIMCO to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provide, certain services to the Fund, instead of engaging or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">recommending one or more third parties to provide such services. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Subject to the governance requirements of a particular fund and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">applicable law, PIMCO or its affiliates, as applicable, will receive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">compensation in connection with the provision of such services. As a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result, PIMCO faces a conflict of interest when selecting or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">recommending service providers for the Fund. Fees paid to an affiliated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">service provider will be determined in PIMCO’s commercially reasonable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">discretion. Although PIMCO has adopted various policies and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">procedures intended to mitigate or otherwise manage conflicts of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest with respect to affiliated service providers, there can be no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">guarantee that such policies and procedures (which may be modified or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">terminated at any time in PIMCO’s sole discretion) will be successful.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investments in real estate will potentially be limited by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s intention to qualify as a RIC and will potentially limit the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability to so qualify. Income and gains from direct investments in real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate do not constitute qualifying income to a RIC for purposes of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">90% gross income test described below. If the Fund's income or gain </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from a particular investment were determined to constitute </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">nonqualifying income, which in certain cases may be determined </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">retroactively, and the Fund’s nonqualifying income from all sources were </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to exceed 10% of its gross income in any taxable year, or the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">nonqualifying income in any taxable year otherwise exceeded 10% of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its gross income, the Fund would fail to qualify as a RIC unless it were </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">eligible to and did pay a tax at the Fund level. See “Tax Risk” for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">additional details.</div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Leverage Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s use of leverage (as described under ”Use of Leverage“ in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">body of this prospectus) creates the opportunity for increased Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Share net income, but also creates special risks for Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders (including an increased risk of loss). To the extent used, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">there is no assurance that the Fund’s leveraging strategies will be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">successful. Leverage is a speculative technique that may expose the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund to greater risk and increased costs. The Fund’s assets attributable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to leverage, if any, will be invested in accordance with the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment objectives and policies. Interest expense payable by the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with respect to derivatives and other forms of leverage, and dividends </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payable with respect to preferred shares outstanding, if any, will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally be based on shorter-term interest rates that would be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">periodically reset. So long as the Fund’s portfolio investments provide a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">higher rate of return (net of applicable Fund expenses) than the interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses and other costs to the Fund of such leverage, the investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the proceeds thereof will generate more income than will be needed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to pay the costs of the leverage. If so, and all other things being equal, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the excess may be used to pay higher dividends to Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders than if the Fund were not so leveraged. There can be no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assurance these circumstances will occur. If, however, shorter-term </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates rise relative to the rate of return on the Fund’s portfolio, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the interest and other costs to the Fund of leverage could exceed the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate of return on the debt obligations and other investments held by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund, thereby reducing return to Common Shareholders. When the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reduces or discontinues its use of leverage (“deleveraging”), it may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to sell portfolio securities at inopportune times to repay </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leverage obligations, which could result in realized losses and a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decrease in the Fund's net asset value. Deleveraging involves complex </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operational processes, including the coordination of asset sales, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repayment of debt, and potential restructuring of the Fund's capital and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may involve significant costs, including transaction costs associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the sale of portfolio securities, prepayment penalties on borrowed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">funds, and, if applicable, fees related to the redemption of preferred </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shares. Leveraging transactions pursued by the Fund may increase its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">duration and sensitivity to interest rate changes and other market risks. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may continue to use leverage even if available financing rates </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are higher than anticipated returns, including, for example, in cases </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">where deleveraging, including any expenses related thereto, might be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">viewed as detrimental to the Fund’s portfolio. In addition, fees and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses of any form of leverage used by the Fund will be borne entirely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by the Common Shareholders (and not by preferred shareholders, if any) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and will reduce the investment return of the Common Shares. Therefore, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">there can be no assurance that the Fund’s use of leverage will result in a </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">higher yield on the Common Shares, and it may result in losses. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, any preferred shares issued by the Fund are expected to pay </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cumulative dividends, which may tend to increase leverage risk. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Leverage creates several major types of risks for Common Shareholders, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including:</div></div><div><div style="clear:both;margin-top:6pt;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the likelihood of greater volatility of NAV and market price of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares, and of the investment return to Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders, than a comparable portfolio without leverage;</div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the possibility either that Common Share dividends will fall if the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest and other costs of leverage rise, or that dividends paid on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares will fluctuate because such costs vary over time; </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and</div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the effects of leverage in a declining market or a rising interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate environment, as leverage is likely to cause a greater decline in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the NAV of the Common Shares than if the Fund were not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leveraged.</div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, the counterparties to the Fund’s leveraging transactions and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any preferred shareholders of the Fund will have complete priority of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payment over the Fund’s Common Shareholders.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Reverse repurchase agreements involve the risks that the interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income earned on the investment of the proceeds will be less than the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest expense and Fund expenses associated with the repurchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">agreement, that the market value of the securities sold by the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decline below the price at which the Fund is obligated to repurchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such securities and that the securities may not be returned to the Fund. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There is no assurance that reverse repurchase agreements can be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">successfully employed. Dollar roll/buybacks transactions involve the risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that the market value of the securities the Fund is required to purchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may decline below the agreed upon repurchase price of those securities. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Successful use of dollar rolls/buybacks may depend upon the Investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Manager’s ability to correctly predict interest rates and prepayments. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There is no assurance that dollar rolls/buybacks can be successfully </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">employed. In connection with reverse repurchase agreements and dollar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rolls/buybacks, the Fund will also be subject to counterparty risk with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">respect to the purchaser of the securities. If the broker/dealer to whom </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund sells securities becomes insolvent, the Fund’s right to purchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or repurchase securities may be restricted.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may engage in total return swaps, reverse repurchases, loans </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of portfolio securities, short sales and when-issued, delayed delivery and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">forward commitment transactions, credit default swaps, basis swaps </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other swap agreements, purchases or sales of futures and forward </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">contracts (including foreign currency exchange contracts), call and put </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">options or other derivatives. The Fund’s use of such transactions gives </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rise to associated leverage risks described above, and may adversely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affect the Fund’s income, distributions and total returns to Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders. To the extent that any offsetting positions do not behave </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in relation to one another as expected, the Fund may perform as if it is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leveraged through use of these derivative strategies. Any total return </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">swaps, reverse repurchases, loans of portfolio securities, short sales and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when-issued, delayed delivery and forward commitment transactions, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">credit default swaps, basis swaps and other swap agreements, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchases or sales of futures and forward contracts (including foreign </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currency exchange contracts), call and put options or other derivatives </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by the Fund or counterparties to the Fund’s other leveraging </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions, if any, would have seniority over the Fund’s Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shares.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Because the fees received by the Investment Manager may increase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">depending on the types of leverage utilized by the Fund, the Investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Manager has a financial incentive for the Fund to use certain forms of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leverage, which may create a conflict of interest between the Investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Manager, on the one hand, and the Common Shareholders, on the other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hand. To the extent that any Subsidiary of the Fund directly incurs </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leverage in the form of debt or preferred shares, the amount of such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leverage used by the Fund and such Subsidiaries will be consolidated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and treated as senior securities for purposes of complying with the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">1940 Act’s limitations on leverage by the Fund.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Smaller Company Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The general risks associated with debt instruments or equity securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are particularly pronounced for securities issued by companies with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">small market capitalizations. Small capitalization companies involve </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain special risks. They are more likely than larger companies to have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limited product lines, markets or financial resources, or to depend on a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">small, inexperienced management group. Securities of smaller </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">companies may trade less frequently and in lesser volume than more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">widely held securities and their values may fluctuate more sharply than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other securities. They may also have limited liquidity. These securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may therefore be more vulnerable to adverse developments than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities of larger companies, and the Fund may have difficulty </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchasing or selling securities positions in smaller companies at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prevailing market prices. Also, there may be less publicly available </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">information about smaller companies or less market interest in their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities as compared to larger companies. Companies with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">medium-sized market capitalizations may have risks similar to those of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">smaller companies.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Derivatives Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may, but is not required to, utilize a variety of derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments (both long and short positions) for investment or risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">management purposes. Additionally, the Fund may invest in futures and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other derivatives that provide equity exposures, including for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">equitization and hedging purposes, using derivatives that provide </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exposure that is not identical to the instruments or markets in which the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund seeks to invest 80% of its assets. Derivatives or other similar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments (referred to collectively as “derivatives”) are financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">contracts whose value depends on, or is derived from, the value of an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">underlying asset, reference rate or index. For example, the Fund may use </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivative instruments for purposes of increasing liquidity, providing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">efficient portfolio management, broadening investment opportunities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(including taking short or negative positions), implementing a tax or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cash management strategy, gaining exposure to a particular security or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">segment of the market, modifying the effective duration of the Fund's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio investments and/or enhancing total return. Investments in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives may take the form of buying and/or writing (selling) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives, and/or the Fund may otherwise become an obligor under a </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives transaction. These transactions may produce short-term </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">capital gains in the form of premiums or other returns for the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(which may support, constitute and/or increase the distributions paid by, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or the yield of, the Fund) but create the risk of losses that can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significantly exceed such current income or other returns. For example, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the premium received for writing a call option may be dwarfed by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">losses the Fund may incur if the call option is exercised, and derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions where the Fund is an obligor can produce an up-front </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">benefit, but the potential for leveraged losses. The distributions, or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distribution rates, paid by the Fund should not be viewed as the total </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">returns or overall performance of the Fund. These strategies may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">produce adverse tax consequences (for example, the Fund’s income and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">gain-generating strategies may generate current income and gains, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including short-term capital gains, taxable as ordinary income) and limit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s opportunity to profit or otherwise benefit from certain gains. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may enter into opposing derivative transactions, or otherwise </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">take opposing positions. Such transactions can generate distributable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">gains (which, as noted elsewhere, may be taxed as ordinary income) and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">create the risk of losses and NAV declines.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may engage in investment strategies, including the use of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives, to, among other things, generate current, distributable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income, even if such strategies could potentially result in declines in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s net asset value. The Fund’s income and gain-generating </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strategies, including certain derivatives strategies, may generate current </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income and gains, including short-term capital gains, taxable as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ordinary income sufficient to support distributions, even in situations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when the Fund has experienced a decline in net assets due to, for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">example, adverse changes in the broad U.S. or non-U.S. securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">markets or the Fund’s portfolio of investments, or arising from its use of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives. Consequently, Fund shareholders may receive distributions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to tax at ordinary income rates at a time when their investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in the Fund has declined in value, which may be economically similar to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a taxable return of capital.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The use of derivatives involves risks different from, and possibly greater </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">than, the risks associated with investing directly in securities and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">traditional investments. Derivatives, which may increase market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exposure and are subject to a number of risks including leverage risk, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidity risk (which may be heightened for highly customized </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives), interest rate risk, market risk, counterparty (including credit) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk, operational risk (such as documentation issues, settlement issues </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and systems failures), legal risk (such as insufficient documentation, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">insufficient capacity or authority of a counterparty, and issues with the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">legality or enforceability of a contract), management risk, risks arising </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from changes in applicable regulatory requirements, governmental risk, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sanctions risk, risks arising from margin requirements and risks arising </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from mispricing or valuation complexity (including the risk of improper </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">valuation), as well as the risks associated with the underlying asset, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reference rate or index. They also involve the risk that changes in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of a derivative instrument may not correlate perfectly with the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">underlying asset, rate or index. By investing in a derivative instrument, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund could lose more than the initial amount invested, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives may increase the volatility of the Fund, especially in unusual </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or extreme <div style="display:inline;">marke</div>t conditions. In addition, the use of derivatives may </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cause the Fund’s investment returns to be impacted by the performance </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of assets the Fund does not own, potentially resulting in the Fund’s total </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment exposure exceeding the value of its portfolio. Certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives have the potential for unlimited loss, regardless of the size of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the initial investment. The Fund may utilize asset segregation and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">posting of collateral for risk management or other purposes. The Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be required to hold additional cash or sell other investments in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">order to obtain cash to close out a position and changes in the value of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a derivative may also create margin delivery or settlement payment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations for the Fund. Also, suitable derivative transactions may not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be available in all circumstances and there can be no assurance that the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund will engage in these transactions to reduce exposure to other risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when that would be beneficial or that, if used, such strategies will be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">successful. The Fund's use of derivatives may increase or accelerate the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">amount of taxes payable by Common Shareholders.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Non-centrally-cleared Over-the-counter (”OTC“) derivatives are also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to the risk that a counterparty to the transaction will not fulfill </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its contractual obligations to the other party, as many of the protections </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">afforded to centrally cleared derivative transactions might not be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">available for non-centrally-cleared OTC derivatives. The primary credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk on derivatives that are exchange-traded or traded through a central </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">clearing counterparty resides with the Fund's clearing broker, or the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">clearinghouse.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Derivatives that are cleared by a central clearing organization can still </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be subject to different risks, including the creditworthiness of the central </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">clearing organization and its members.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, derivatives that are traded on an exchange are subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the risk that an exchange may limit the maximum daily price fluctuation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of a derivative contract and restrict or suspend trading of a contract that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">has reached a limit. Such limit governs only price movements of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">contract during a particular trading day and therefore does not limit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potential losses because the limit may work to prevent the liquidation of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unfavorable positions. A daily limit may be reached for several </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consecutive days with little or no trading.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Participation in the markets for derivative instruments involves </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment risks and transaction costs to which the Fund may not be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject absent the use of these strategies. The skills needed to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">successfully execute derivative strategies may be different from those </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">needed for other types of transactions. If the Fund incorrectly forecasts </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the value and/or creditworthiness of securities, currencies, interest rates, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">counterparties or other economic factors involved in a derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transaction, the Fund might have been in a better position if the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">had not entered into such derivative transaction. In evaluating the risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and contractual obligations associated with particular derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments or other similar investments, it is important to consider that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain derivative transactions, absent a default or termination event, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may only be modified or terminated by mutual consent of the Fund and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its counterparty.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Therefore, it may not be possible for the Fund to modify, terminate, or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">offset the Fund's obligations or the Fund's exposure to the risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with a derivative transaction prior to its scheduled </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">termination or maturity date, which may create a possibility of increased </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">volatility and/or decreased liquidity to the Fund. Hedges are sometimes </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to imperfect matching between the derivative and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">underlying instrument, and there can be no assurance that the Fund's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hedging transactions will be effective. Derivatives used for hedging or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk management may not operate as intended and may expose the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund to additional risks. In such case, the Fund may experience losses.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Because the markets for certain derivative instruments (including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">markets located in foreign countries) are relatively new and still </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">developing, appropriate derivative transactions may not be available in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">all circumstances for risk management or other purposes. Upon the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expiration of a particular contract, the Fund may wish to retain the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s position in the derivative instrument by entering into a similar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">contract but may be unable to do so if the counterparty to the original </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">contract is unwilling to enter into the new contract and no other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">appropriate counterparty can be found. When such markets are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unavailable, the Fund will be subject to increased liquidity and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment risk.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may enter into opposite sides of interest rate swap and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives for the principal purpose of generating distributable gains on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the one side (characterized as ordinary income for tax purposes) that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are not part of the Fund’s duration or yield curve management </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strategies (“paired swap transactions”), and with a substantial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">possibility that the Fund will experience a corresponding capital loss </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and decline in NAV with respect to the opposite side transaction (to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extent it does not have corresponding offsetting capital gains).</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Consequently, Common Shareholders may receive distributions and owe </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tax on amounts that are effectively a taxable return of the shareholder’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment in the Fund, at a time when their investment in the Fund has </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">declined in value, which tax may be at ordinary income rates. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, the Fund’s use of derivatives may cause the Fund to realize </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">higher amounts of short-term capital gains (generally taxed at ordinary </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income tax rates), potentially subjecting shareholders of the Fund to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adverse tax consequences. The tax treatment of certain derivatives in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which the Fund invests may be unclear and thus subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">recharacterization. Any recharacterization of payments made or received </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by the Fund pursuant to derivatives potentially could affect the amount, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">timing or character of Fund distributions. In addition, the tax treatment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of such investment strategies may be changed by regulation or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">More generally, sales of the Fund’s portfolio holdings may result in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">short-term capital gains (which are generally taxed to shareholders at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ordinary income tax rates when distributed net of short-term capital </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">losses and net of long-term capital losses), potentially subjecting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shareholders of the Fund to adverse tax consequences.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Although hedging can reduce or eliminate losses, it can also reduce or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">eliminate gains. Hedges are sometimes subject to imperfect matching </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">between the derivative and the underlying instrument, and there can be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">no assurance that the Fund's hedging transactions will be effective.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Derivatives used for hedging or risk management may not operate as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intended or may expose the Fund to additional risks. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivatives used for hedging may partially protect the Fund from the </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risks they were intended to hedge yet not fully mitigate the impact of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such risks. The regulation of the derivatives markets has increased over </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">time, and additional future regulation of the derivatives markets may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make derivatives more costly, may limit the availability or reduce the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidity of derivatives, or may otherwise adversely affect the value or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">performance of derivatives. Any such adverse future developments could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impair the effectiveness or raise the costs of the Fund’s derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions, impede the employment of the Fund’s derivatives </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strategies, or adversely affect the Fund’s performance and cause the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund to lose value.</div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Credit Default Swaps Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Credit default swap agreements may involve greater risks than if the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund had invested in the reference obligation directly since, in addition </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to general market risks, credit default swaps are subject to leverage risk, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">illiquidity risk, counterparty risk and credit risk. A buyer generally also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will lose its investment and recover nothing should no credit event occur </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and the swap is held to its termination date. If a credit event were to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">occur, the value of any deliverable obligation received by the seller (if </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any), coupled with the upfront or periodic payments previously received, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be less than the full notional value it pays to the buyer, resulting in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a loss of value to the seller. When the Fund acts as a seller of a credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">default swap, it is exposed to many of the same risks of leverage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">described herein. As the seller, the Fund would receive a stream of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments over the term of the swap agreement provided that no event </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of default has occurred with respect to the referenced debt obligation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">upon which the swap is based. The Fund would effectively add leverage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to its portfolio because, if a default occurs, the stream of payments may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">stop and, in addition to its total net assets, the Fund would be subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment exposure on the notional amount of the swap.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Although the Fund may seek to realize gains by selling credit default </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">swaps that increase in value, to realize gains on selling credit default </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">swaps, an active secondary market for such instruments must exist or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund must otherwise be able to close out these transactions at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">advantageous times. In addition to the risk of losses described above, if </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">no such secondary market exists or the Fund is otherwise unable to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">close out these transactions at advantageous times, selling credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">default swaps may not be profitable for the Fund.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The market for credit default swaps has become more volatile as the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">creditworthiness of certain counterparties has been questioned and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">downgraded. The Fund will be subject to credit risk with respect to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">counterparties to the credit default swap contract (whether a clearing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">corporation or another third party). If a counterparty’s credit becomes </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significantly impaired, multiple requests for collateral posting in a short </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">period of time could increase the risk that the Fund may not receive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adequate collateral. The Fund may exit its obligations under a credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">default swap only by terminating the contract and paying applicable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">breakage fees, or by entering into an offsetting credit default swap </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">position, which may cause the Fund to incur more losses. The Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obtain no or limited recovery in a bankruptcy or other reorganizational </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">proceedings, and any recovery may be significantly delayed.</div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Counterparty Risk</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund will be subject to credit risk with respect to the counterparties </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the derivative contracts and other instruments entered into by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund or held by special purpose or structured vehicles in which the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invests. For example, if a bank at which the Fund or issuer has an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">account fails, any cash or other assets in bank or custody accounts, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which may be substantial in size, could be temporarily inaccessible or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">permanently lost by the Fund or issuer. In the event that the Fund enters </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">into a derivative transaction with a counterparty that subsequently </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">becomes insolvent or becomes the subject of a bankruptcy case, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivative transaction may be terminated in accordance with its terms </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and the Fund’s ability to realize its rights under the derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instrument and its ability to distribute the proceeds could be adversely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affected. If a counterparty becomes bankrupt or otherwise fails to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">perform its obligations under a derivative contract due to financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficulties, the Fund may experience significant delays in obtaining any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">recovery (including recovery of any collateral it has provided to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">counterparty) in a dissolution, assignment for the benefit of creditors, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidation, winding-up, bankruptcy, or other analogous proceeding. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, in the event of the insolvency of a counterparty to a derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transaction, the derivative transaction would typically be terminated at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its fair market value. If the Fund is owed this fair market value in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">termination of the derivative transaction and its claim is unsecured, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund will be treated as a general creditor of such counterparty, and will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not have any claim with respect to any underlying security or asset. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may obtain only a limited recovery or may obtain no recovery in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such circumstances. Counterparty credit risk also includes the related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk of having concentrated exposure to a single counterparty, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may increase potential losses if the counterparty were to become </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">insolvent. While the Fund may seek to manage its counterparty risk by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transacting with a number of counterparties, concerns about the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">solvency of, or a default by, one large market participant could lead to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significant impairment of liquidity and other adverse consequences for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other counterparties.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Repurchase Agreements Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may enter into repurchase agreements, in which the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchases a security from a bank or broker-dealer, which agrees to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repurchase the security at the Fund’s cost plus interest within a specified </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">time. Entering into repurchase agreements allows the Fund to earn a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">return on cash in the Fund's portfolio that would otherwise remain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">un-invested. Repurchase agreements may involve risks in the event of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">default or insolvency of the counterparty, including possible delays or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">restrictions upon the Fund's ability to sell the underlying securities and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">additional expenses in seeking to enforce the Fund's rights and recover </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any losses. Although the Fund seeks to limit the credit risk under a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repurchase agreement by carefully selecting counterparties and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">accepting only high quality collateral, some credit risk remains. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">counterparty could default which may make it necessary for the Fund to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">incur expenses to liquidate the collateral. The security subject to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repurchase agreement may be or become illiquid. These events could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">also trigger adverse tax consequences for the Fund.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In December 2023, the U.S. Securities and Exchange Commission </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adopted rule amendments that are expected to result in the Fund being </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to clear all or substantially all of its repurchase agreements </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collateralized by U.S. Treasury securities as of June 30, 2027 where a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">direct participant in any covered clearing agency is the counterparty. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may incur costs in connection with entering into new agreements </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(or amending existing agreements) with counterparties who are direct </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participants of a covered clearing agency and potentially other market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participants and taking other actions to comply with the new </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requirements. In addition, upon the compliance date, the costs and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">benefits of entering into repurchase agreements collateralized by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. Treasury securities to the Fund may be impacted as compared to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such repurchase agreements prior to the compliance date.</div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Collateralized Bond Obligations, Collateralized Loan </div></div><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Obligations and Collateralized Debt Obligations Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">CBOs, CLOs and CDOs may charge management fees and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">administrative expenses. For CBOs, CLOs and CDOs, the cash flows from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the trust are split into two or more portions, called tranches, varying in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk and yield. The riskiest portion is the equity tranche which generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bears losses in connection with the first defaults, if any, on the bonds or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans in the trust. A senior tranche from a CLO, CBO and CDO trust </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">typically has higher credit ratings and lower yields than the underlying </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities. CLO tranches, CBO, and CDO, even senior ones, can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">experience substantial losses due to actual defaults, increased sensitivity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to defaults due to collateral default and disappearance of protecting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tranches, market anticipation of defaults and aversion to CLO, CBO or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other CDO securities. The risks of an investment in a CBO, CLO or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">CDO vary depending on the type of collateral securities and the class of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the instrument in which the Fund invests, among other factors.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Normally, CLOs, CBOs and other CDOs are privately offered and sold, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and thus are not registered under the securities laws. Investments in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">CLOs, CBOs and CDOs may be or become illiquid. In addition to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">normal risks associated with debt instruments (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">e.g.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, interest rate risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and credit risk), CLOs, CBOs and CDOs carry additional risks including, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">but not limited to: (i) the possibility that distributions from the collateral </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will not be adequate to make interest or other payments; (ii) the risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that the quality of the collateral may decline in value or default; (iii) the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk that the Fund may invest in CBOs, CLOs or other CDOs that are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subordinate to other classes; and (iv) the risk that the complex structure </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the security may not be fully understood at the time of investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and may produce disputes with the issuer or others and may produce </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unexpected investment results.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Equity Securities and Related Market Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The market price of common stocks and other equity securities may go </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">up or down, sometimes rapidly or unpredictably. Equity securities may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decline in value due to factors affecting equity securities markets </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally, particular industries represented in those markets, or the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuer itself. The values of equity securities may decline due to real or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">perceived adverse economic conditions, changes in the general outlook </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for corporate earnings, changes in interest or currency rates adverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes to credit markets or adverse investor sentiment generally. They </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may also decline due to labor shortages or increased production costs </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and competitive conditions within an industry. Equity securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally have greater price volatility than bonds and other debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Different types of equity securities provide different voting and dividend </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rights and priority in the event of the bankruptcy and/or insolvency of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the issuer. In addition to common stock, equity securities may include </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">preferred securities, convertible securities and warrants. Equity securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other than common stock are subject to many of the same risks as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">common stock, although possibly to different degrees. The risks of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">equity securities are generally magnified in the case of equity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments in distressed companies.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Preferred Securities Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition to equity securities risk, credit risk and possibly high yield </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk, investment in preferred securities involves certain other risks. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain preferred securities contain provisions that allow an issuer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">under certain conditions to skip or defer distributions. If the Fund owns </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a preferred security that is deferring its distribution, the Fund may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to include the amount of the deferred distribution in its taxable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income for tax purposes although it does not currently receive such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">amount in cash. In order to receive the special treatment accorded to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">RICs and their shareholders under the Code and to avoid U.S. federal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income and/or excise taxes at the Fund level, the Fund may be required </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to distribute this income to shareholders in the tax year in which the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income is recognized (without a corresponding receipt of cash by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund). Therefore, the Fund may be required to pay out as an income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distribution in any such tax year an amount greater than the total </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">amount of cash income the Fund actually received and to sell portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities, including at potentially disadvantageous times or prices, to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obtain cash needed for these income distributions. Preferred securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">often are subject to legal provisions that allow for redemption in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">event of certain tax or legal changes or at the issuer’s call. In the event </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of redemption, the Fund may not be able to reinvest the proceeds at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">comparable rates of return. Preferred securities are subordinated to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bonds and other debt securities in an issuer’s capital structure in terms </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of priority for corporate income and liquidation payments, and therefore </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will be subject to greater credit risk than those debt securities. Preferred </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities may trade less frequently and in a more limited volume and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be subject to more abrupt or erratic price movements than many </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other securities.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Insurance-Linked and Other Instruments Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in insurance-linked instruments and similar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments (which may include, for example, exposure to reinsurance </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">contracts (through sidecars or otherwise), event-linked bonds, such as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">catastrophe and resilience bonds, and securities relating to life </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">insurance policies, annuity contracts and premium finance loans). The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund could lose a portion or all of the principal it has invested in these </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">types of investments, and the right to additional interest and/or dividend </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments with respect to the investments, upon the occurrence of one </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or more trigger events, as defined within the terms of an investment.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Trigger events may include natural or other perils of a specific size or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">magnitude that occur in a designated geographic region during a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">specified time period, and/or that involve losses or other metrics that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exceed a specific amount. The Fund may also invest in insurance-linked </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments that are subject to “indemnity triggers.” An indemnity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">trigger is a mechanism where the payout to the investor is based on the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">actual losses incurred by the insurer and come into play when losses </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from a specified event exceed a designated level. Insurance-linked </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments subject to indemnity triggers are often regarded as being </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to potential moral hazard, since such insurance-linked </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments are triggered by actual losses of the ceding sponsor and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ceding sponsor may have an incentive to take actions and/or risks that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">would have an adverse effect on the Fund. There is no way to accurately </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">predict whether a trigger event will occur and, accordingly, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">insurance-linked instruments and similar investments carry significant </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk. In addition to the specified trigger events, these types of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments may expose the Fund to other risks, including but not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limited to issuer (credit) default, adverse regulatory or jurisdictional </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interpretations and adverse tax consequences.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may also gain exposure to reinsurance contracts (through </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">insurance-linked securities, sidecars or otherwise). This exposure may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">include “excess of loss” contracts, wherein liability arises only if and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when losses exceed a specified amount, and proportional reinsurance, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">wherein a pro rata portion of the premiums and liabilities of the cedant </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with a specified business or a portfolio if insurance contracts </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are linked to the investment. Investments linked to reinsurance </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions may involve significant insurance brokerage fees, fronting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fees and other transaction costs.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">A series of major triggering events could cause the failure of a reinsurer. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Similarly, to the extent the Fund invests in reinsurance-related securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for which a triggering event occurs, losses associated with such event </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will result in losses to the Fund and a series of major triggering events </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affecting a large portion of the reinsurance-related securities held by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may result in substantial losses to the Fund. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unexpected events such as natural disasters or terrorist attacks could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lead to government intervention. Political, judicial and legal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">developments affecting the reinsurance industry could also create new </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and expanded theories of liability or regulatory or other requirements; </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such changes could have a material adverse effect on the Fund. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, the litigation environment in catastrophe-exposed states or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regions could impact the frequency and severity of insurance claims, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">litigation costs could decrease the value of the Fund's investment in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">products linked to reinsurance contracts. In recent years, capital market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participants have been increasingly active in the reinsurance market and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">markets for related risks. Increased competition could result in fewer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">submissions, lower premium rates and less favorable policy terms and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain insurance-linked instruments and similar investments may have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limited liquidity, or may be illiquid. The Fund has limited transparency </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">into the individual contracts underlying certain insurance-linked </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments and similar investments, which may make the risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assessment of them more difficult. These types of investments may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficult to value.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The aforementioned instruments may include longevity and mortality </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments, including indirect investment in pools of insurance-related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">longevity and mortality investments, including life insurance policies, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">annuity contracts and premium finance loans. Such investments are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to “longevity risk” and/or “mortality risk.” Longevity risk is the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk that members of a reference population will live longer, on average, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">than anticipated. Mortality risk is the risk that members of a reference </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">population will live shorter, on average, than anticipated. Changes in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these rates can significantly affect the liabilities and cash needs of life </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">insurers, annuity providers and pension funds. The terms of a longevity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bond typically provide that the investor in the bond will receive less than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the bond’s par amount at maturity if the actual average longevity (life </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">span) of a specified population of people observed over a specified </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">period of time (typically measured by a longevity index) is higher than a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">specified level. If longevity is higher than expected, the bond will return </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">less than its par amount at maturity. A mortality bond, in contrast to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">longevity bond, typically provides that the investor in the bond will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">receive less than the bond’s par amount at maturity if the mortality rate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of a specified population of people observed over a specified period of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">time (typically measured by a mortality index) is higher than a specified </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">level.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">During their term, both longevity bonds and mortality bonds typically </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pay a floating rate of interest to investors. Longevity and mortality </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments purchased by the Fund involve the risk of incorrectly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">predicting the actual level of longevity or mortality, as applicable, for the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reference population of people. With respect to mortality investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">held by the Fund, there is also the risk that an epidemic or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">catastrophic event could strike the reference population, resulting in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortality rates exceeding expectations. The Fund may also gain this type </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of exposure through event-linked derivative instruments, such as swaps, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that are contingent on or formulaically related to longevity or mortality </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Private Placements and Restricted Securities Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">A private placement involves the sale of securities that have not been </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">registered under the Securities Act or relevant provisions of applicable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-U.S. law to certain institutional and qualified individual purchasers, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such as the Fund. In addition to the general risks to which all securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are subject, securities received in a private placement generally are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to strict restrictions on resale, and there may be no liquid </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">secondary market or ready purchaser for such securities. See “Principal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Risks of the Fund – Liquidity Risk.” Therefore, the Fund may be unable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to dispose of such securities when it desires to do so, or at the most </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">favorable time or price. Private placements may also raise valuation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risks. See “Principal Risks of the Fund – Valuation Risk.”</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may also have to bear the expense of registering the securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for resale and the risk of substantial delays in effecting the registration. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Additionally, the purchase price and subsequent valuation of private </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">placements typically reflect a discount, which may be significant, from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the market price of comparable securities for which a more liquid </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market exists.</div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Securities Lending Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">For the purpose of achieving income, the Fund may lend its portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities to brokers, dealers, and other financial institutions provided a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">number of conditions are satisfied, including that the loan is fully </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collateralized. Please see “Investment Objectives and Policies—Loans of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Portfolio Securities” in the Statement of Additional Information for more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">details. When the Fund lends portfolio securities, its investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">performance will continue to reflect changes in the value of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities loaned, and the Fund will also receive a fee or interest on the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collateral. Securities lending involves the risk of loss of rights in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collateral or delay in recovery of the collateral if the borrower fails to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">return the security loaned or becomes insolvent. The Fund may pay </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lending fees to a party arranging the loan. Cash collateral received by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund in securities lending transactions may be invested in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">short-term liquid fixed income instruments or in money market or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">short-term mutual funds, or similar investment vehicles, including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affiliated money market or short-term mutual funds. The Fund bears the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk of such investments.</div></div></div> <div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Inflation/Deflation Risk</div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Inflation risk is the risk that the value of assets or income from the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s investments will be worth less in the future as inflation decreases </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the value of payments at future dates. As inflation increases, the real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of the Fund’s portfolio could decline. Inflation rates may change </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">frequently and significantly as a result of various factors, including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unexpected shifts in the domestic or global economy or changes in fiscal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or monetary policies. Deflation risk is the risk that prices throughout the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economy decline over time. Deflation may have an adverse effect on the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">creditworthiness of issuers and may make issuer default more likely, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which may result in a decline in the value of the Fund’s portfolio and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares.</div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Regulatory Changes Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Financial entities, such as investment companies and investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">advisers, are generally subject to extensive government regulation and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intervention. Government regulation and/or intervention may change </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the way the Fund is regulated, affect the expenses incurred directly by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund and the value of its investments, and limit and /or preclude the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s ability to achieve its investment objectives. Government </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulation may change frequently and may have significant adverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consequences. The Fund and the Investment Manager have historically </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">been eligible for exemptions from certain regulations. However, there is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">no assurance that the Fund and the Investment Manager will continue </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to be eligible for such exemptions.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Moreover, government regulation may have unpredictable and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unintended effects. Legislative or regulatory actions to address </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">perceived liquidity or other issues in fixed income markets generally, or </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in particular markets such as the municipal securities market, may alter </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or impair the Fund’s ability to pursue its investment objectives or utilize </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain investment strategies and techniques.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">While there continues to be uncertainty about the full impact of these </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other regulatory changes, it is the case that the Fund will be subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to a more complex regulatory framework, and may incur additional </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">costs to comply with new requirements as well as to monitor for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">compliance in the future. Actions by governmental entities may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact certain instruments in which the Fund invests and reduce market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidity and resiliency.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Recent policy initiatives undertaken by the U.S. government have the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potential to impact international relations, trade agreements, and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">overall regulatory environment in ways that could create uncertainty </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and instability in domestic and global markets, and could adversely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affect the investment performance of the Fund. In particular, actions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taken by the U.S. government in respect of international trade relations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could lead to trade wars, increased costs for imported goods, disruptions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in supply chains, reduced foreign investment, and instability in regions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">where the Fund invests.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Regulatory Risk—Commodity Pool Operator</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The CFTC has adopted regulations that subject registered investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">companies and their investment advisers to regulation by the CFTC if </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the registered investment company invests more than a prescribed level </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of its liquidation value in futures, options on futures or commodities, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">swaps, or other financial instruments regulated under the CEA and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rules thereunder (“commodity interests”), or if the Fund markets itself </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as providing investment exposure to such instruments.  The Investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Manager is registered with the CFTC as a CPO. However, with respect to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund, the Investment Manager has claimed an exclusion from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">registration as a CPO pursuant to CFTC Rule 4.5. For the Investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Manager to remain eligible for this exclusion, the Fund must comply </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with certain limitations, including limits on its ability to use any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commodity interests and limits on the manner in which the Fund holds </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">out its use of such commodity interests. These limitations may restrict </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s ability to pursue its investment objectives and strategies, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increase the costs of implementing its strategies, result in higher </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses for the Fund, and/or adversely affect the Fund’s total return. To </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the extent the Investment Manager becomes ineligible for this exclusion </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from CFTC regulation, the Investment Manager may consider steps in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">order to continue to qualify for exemption from CFTC regulation, or may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">determine to operate the Fund subject to CFTC regulation.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Liquidity Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Liquidity risk exists when particular investments are difficult to purchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or sell. Illiquid investments are investments that the Fund reasonably </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expects cannot be sold or disposed of in current market conditions in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">seven calendar days or less without the sale or disposition significantly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changing the market value of the investment. Illiquid investments may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">become harder to value, especially in changing markets. The Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments in illiquid investments may reduce the returns of the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">because it may be unable to sell the illiquid investments at an </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">advantageous time or price or possibly require the Fund to dispose of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other investments at unfavorable times or prices in order to satisfy its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations, which could prevent the Fund from taking advantage of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other investment opportunities. Illiquidity can be caused by, among </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other things, a drop in overall market trading volume, an inability to find </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a willing buyer, or legal restrictions on the securities’ resale, capital </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">controls, delays or limits on repatriation of local currency, or insolvency </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of local governments. Additionally, the market for certain investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may become illiquid under adverse market or economic conditions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">independent of any specific adverse changes in the conditions of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particular issuer, such as during changes in interest rates, elevated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">volatility, market or geopolitical disruptions, economic uncertainty or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">public health crises. There can be no assurance that an investment that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">is deemed to be liquid when purchased will continue to be liquid while </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">it is held by a fund and/or when a fund wishes to dispose of it. Bond </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">markets have consistently grown over time while the capacity for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">traditional dealer counterparties to engage in fixed income trading has </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not kept pace with the growth of bond markets and may remain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">constrained. As a result, dealer inventories of corporate bonds, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provide a core indication of the ability of financial intermediaries to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“make markets,” remain limited relative to the size of the market. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Because market makers seek to provide stability to a market through </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">their intermediary services, the significant reduction in dealer inventories </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could potentially lead to decreased liquidity and increased volatility in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the fixed income markets, especially during periods of economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">uncertainty or market stress. In such cases, the Fund, due to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficulty in purchasing and selling such securities or instruments, may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be unable to achieve its desired level of exposure to a certain sector. To </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the extent that the Fund’s principal investment strategies involve </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities of companies with smaller market capitalizations, foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(non-U.S.) securities, Rule 144A securities, illiquid sectors of fixed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income securities, derivatives or securities with substantial market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and/or credit risk, the Fund will tend to have the greatest exposure to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidity risk.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Further fixed income securities with longer durations until maturity face </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">heightened levels of liquidity risk as compared to fixed income securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with shorter durations until maturity. The risks associated with illiquid </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments may be particularly acute in situations in which the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operations require cash (such as in connection with repurchase offers) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and could result in the Fund borrowing to meet its short-term needs or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">incurring losses on the sale of illiquid instruments. It may also be the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">case that other market participants may be attempting to liquidate fixed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income holdings at the same time as the Fund, causing increased supply </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in the market and contributing to liquidity risk and downward pricing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pressure.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Liquidity risk also refers to the risk that the Fund may be required to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hold additional cash or sell other investments in order to obtain cash to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">close out derivatives or meet the liquidity demands that derivatives can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">create to make payments of margin, collateral, or settlement payments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to counterparties. The Fund may have to sell a security at a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disadvantageous time or price to meet such obligations.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The actions of governments and regulators may have the effect of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reducing market liquidity, market resiliency and money supply.</div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Structured Investments Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Holders of structured products, including structured notes, credit-linked </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">notes and other types of structured products, bear the risks of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">underlying investments, index or reference obligation and are subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">counterparty risk. The Fund may have the right to receive payments only </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from the structured product, and generally does not have direct rights </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">against the issuer or the entity that sold the assets to be securitized. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">While certain structured products enable the investor to acquire </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interests in a pool of securities without the brokerage and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses associated with directly holding the same securities, investors </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in structured products generally pay their share of the structured </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">product’s administrative and other expenses. Although it is difficult to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">predict whether the prices of indexes and securities underlying </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">structured products will rise or fall, these prices (and, therefore, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prices of structured products) are generally influenced by the same types </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of political and economic events that affect issuers of securities and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">capital markets generally. If the issuer of a structured product uses </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shorter term financing to purchase longer term securities, the issuer may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be forced to sell its securities at below market prices if it experiences </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficulty in obtaining such financing, which may adversely affect the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of the structured products owned by the Fund. Structured </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">products generally entail risks associated with derivative instruments. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">See ”Principal Risks of the Fund—Derivatives Risk.“</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Tax Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund has elected to be treated as a RIC under Subchapter M of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Code and intends each year to qualify and be eligible to be treated as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such, so that it generally will not be subject to U.S. federal income tax </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on its net investment income or net short-term or long-term capital </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">gains that are timely distributed (or deemed distributed, as described </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">below) to shareholders. In order to qualify and be eligible for such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">treatment, the Fund must meet certain asset diversification tests, derive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">at least 90% of its gross income for such year from certain types of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">qualifying income, and distribute to its shareholders at least 90% of its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“investment company taxable income” as that term is defined in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Code (which includes, among other things, dividends, taxable interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and the excess of any net short-term capital gains over net long-term </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">capital losses, as reduced by certain deductible expenses) and net </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tax-exempt income, for such year.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investment strategy will potentially be limited by its intention </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to continue qualifying for treatment as a RIC and can limit the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability to continue qualifying as such. The tax treatment of certain of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s investments under one or more of the qualification or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distribution tests applicable to RICs is uncertain. An adverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">determination or future guidance by the IRS or a change in law might </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affect the Fund’s ability to qualify or be eligible for for treatment as a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">RIC. Income and gains from certain of the Fund's activities may not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">constitute qualifying income to a RIC for purposes of the 90% gross </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income test. If the Fund’s income or gain from a particular investment or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">activity were determined to constitute non<div style="display:inline;">qualifyi</div>ng income, which in </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain cases may be determined retroactively, and the Fund's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">nonqualifying income from all sources were to exceed 10% of its gross </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income in any taxable year, the Fund would fail to qualify as a RIC </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unless it were eligible to and did pay a tax at the Fund level. See </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“Taxation” in the Statement of Additional Information for additional </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">details.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">If, in any year, the Fund were to fail to qualify for treatment as a RIC </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">under the Code and were ineligible to or did not otherwise cure such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">failure, the Fund would be subject to tax on its taxable income at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">corporate rates and, when such income is distributed, shareholders </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">would be subject to further tax on such distributions to the extent of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund's current or accumulated earnings and profits.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To the extent the Fund invests through one or more Subsidiaries, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may be required to include in gross income for U.S. federal income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tax purposes all of the Subsidiary’s income, whether or not such income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">is distributed by the Subsidiary, and the Fund may generally have to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">treat such income as ordinary income, regardless of the character of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Subsidiary’s underlying income or gains. If a net loss is realized by a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Subsidiary, such loss is not generally available to offset the income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">earned by the Fund, and such loss cannot be carried forward to offset </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taxable income of the Fund or the Subsidiary in future periods.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Subsidiary Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To the extent the Fund invests through one or more of its wholly-owned </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Subsidiaries, the Fund would be exposed to the risks associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such Subsidiary’s investments. Such Subsidiaries would likely not be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">registered as investment companies under the 1940 Act and, except as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">noted in this prospectus, would not be subject to all of the investor </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">protections of the 1940 Act. Changes in the laws of the United States </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and/or the jurisdiction in which a Subsidiary is organized could result in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the inability of the Fund and/or the Subsidiary to operate as intended </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and could adversely affect the Fund.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Portfolio Turnover Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Investment Manager manages the Fund without regard generally to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">restrictions on portfolio turnover. The use of futures contracts and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivative instruments with relatively short maturities may tend to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exaggerate the portfolio turnover rate for the Fund. Trading in fixed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income securities does not generally involve the payment of brokerage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commissions, but does involve indirect transaction costs. The use of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">futures contracts and other derivative instruments may involve the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payment of commissions to futures commission merchants or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intermediaries. Higher portfolio turnover involves correspondingly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">greater expenses to the Fund, including brokerage commissions or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dealer mark-ups and other transaction costs on the sale of securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and reinvestments in other securities. The higher the rate of portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">turnover of the Fund, the higher these transaction costs borne by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund generally will be. Such sales may result in realization of taxable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">capital gains (including short-term capital gains, which are generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taxed to shareholders at ordinary income tax rates when distributed net </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of short-term capital losses and net long-term capital losses), and may </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely impact the Fund’s after-tax returns. The realization of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">short-term capital gains may also cause adverse tax consequences for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s shareholders. See “Tax Matters.”</div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Operational Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">An investment in the Fund, like any fund, can involve operational and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">technology risks arising from factors such as processing errors, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">communication errors, human errors, inadequate or failed internal or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">external processes, failures in systems and technology, cybersecurity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">incidents, the potential use of artificial intelligence and machine </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">learning (AI), changes in personnel and errors caused by third-party </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">service providers. The occurrence of any of these failures, errors or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">breaches could result in a loss of information, regulatory scrutiny, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reputational damage or other events, any of which could have a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">material adverse effect on the Fund. Operational and technology risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for the issuers could also result in material adverse consequences for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such issuers and may cause the Fund's investments in such issuers to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lose value. While the Fund seeks to minimize such events through </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">controls and oversight, there may still be failures that could cause losses </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the Fund.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Other Investment Companies Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">When investing in an investment company, the Fund will generally bear </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its ratable share of that investment company's expenses, and would </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">remain subject to payment of the Fund's investment management fees </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other expenses with respect to assets so invested. Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders would therefore be subject to duplicative expenses to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extent the Fund invests in other investment companies. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these other investment companies may utilize leverage, in which case </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">an investment would subject the Fund to additional risks associated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with leverage. Due to its own financial interest or other business </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">considerations, the Investment Manager may choose to invest a portion </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the Fund's assets in investment companies sponsored or managed by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Investment Manager or its related parties in lieu of investments by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund directly in portfolio securities, or may choose to invest in such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment companies over investment companies sponsored or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">managed by others. Participation in a cash sweep program where the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund's uninvested cash balance is used to purchase shares of affiliated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or unaffiliated money market funds or cash management pooled </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment vehicles at the end of each day subjects the Fund to the risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with the underlying money market funds or cash </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">management pooled investment vehicles, including liquidity risk. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Applicable law may limit the Fund's ability to invest in other investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">companies. See “Principal Risks of the Fund-Leverage Risk.”</div></div></div> <div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Privacy and Data Security Risk</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Gramm-Leach-Bliley Act (”GLBA“) and other laws limit the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disclosure of certain non-public personal information about a consumer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to non-affiliated third parties and require financial institutions to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disclose certain privacy policies and practices with respect to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">information sharing with both affiliates and non-affiliated third parties. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Many states and a number of non-U.S. jurisdictions have enacted </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">privacy and data security laws requiring safeguards on the privacy and </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">security of consumers’ personally identifiable information. Other laws </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deal with obligations to safeguard and dispose of private information in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a manner designed to avoid its dissemination. Privacy rules adopted by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the U.S. Federal Trade Commission and SEC implement the GLBA and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other requirements and govern the disclosure of consumer financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">information by certain financial institutions, ranging from banks to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">private investment funds. U.S. platforms following certain models </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally are required to have privacy policies that conform to these </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">GLBA and other requirements. In addition, such platforms typically have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">policies and procedures intended to maintain platform participants’ </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">personal information securely and dispose of it properly.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund generally does not intend to obtain or hold borrowers’ </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-public personal information, and the Fund has implemented </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">procedures reasonably designed to prevent the disclosure of borrowers’ </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-public personal information to the Fund. However, service providers </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the Fund or its Subsidiaries, including their custodians and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">platforms acting as loan servicers for the Fund or its Subsidiaries, may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obtain, hold or process such information. The Fund and entities that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interact with the Fund, including service providers, custodians and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">platforms are susceptible to operational, information security and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">related cybersecurity risks. The Fund cannot guarantee the security of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-public personal information in the possession of such a service </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provider and cannot guarantee that service providers have been and will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">continue to comply with the GLBA, other data security and privacy laws </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and any other related regulatory requirements. Violations of the GLBA </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other laws could subject the Fund to litigation and/or fines, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">penalties or other regulatory action, which, individually or in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">aggregate, could have an adverse effect on the Fund. The Fund may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">face regulations related to privacy and data security in the other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">jurisdictions in which the Fund invests.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Confidential Information Access Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In managing the Fund (and other PIMCO clients), PIMCO may from time </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to time have the opportunity to receive material, non-public information </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(“Confidential Information”) about the issuers of certain investments, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including, without limitation, senior floating rate loans, other loans and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">related investments being considered for acquisition by the Fund or held </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in the Fund’s portfolio. For example, an issuer of privately placed loans </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">considered by the Fund may offer to provide PIMCO with financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">information and related documentation regarding the issuer that is not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">publicly available. Pursuant to applicable policies and procedures, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO may (but is not required to) seek to avoid receipt of Confidential </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Information about such issuers so as to avoid possible restrictions on its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability to purchase and sell investments on behalf of the Fund and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">clients to which such Confidential Information relates. In such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">circumstances, the Fund (and other PIMCO clients) may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disadvantaged in comparison to other investors, including with respect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the price the Fund pays or receives when it buys or sells an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment. Further, PIMCO’s and the Fund’s abilities to assess the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">desirability of proposed consents, waivers or amendments with respect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to certain investments may be compromised if they are not privy to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">available Confidential Information. PIMCO may also determine to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">receive such Confidential Information in certain circumstances under its </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">applicable policies and procedures. If PIMCO intentionally or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unintentionally comes into possession of Confidential Information, it </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be unable, potentially for a substantial period of time, to purchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or sell investments to which such Confidential Information relates.</div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Cyber Security Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">As the use of technology, including cloud-based technology, has </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">become more prevalent and interconnected in the course of business, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund is potentially more susceptible to operational and information </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">security risks resulting from breaches in cyber security, including: </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">processing and human errors, inadequate or failed internal or external </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">processes, failures in system and technology, errors in algorithms used </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with respect to Fund operations and changes in personnel. A breach in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cyber security refers to both intentional and unintentional cyber events </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from outside threat actors or internal resources that may, among other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">things, cause the Fund to lose proprietary information, suffer data </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">corruption and/or destruction, lose operational capacity, result in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unauthorized release or other misuse of confidential information, or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise disrupt normal business operations. Geopolitical tensions can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increase the scale and sophistication of deliberate cybersecurity attacks, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particularly those from nation-states or from entities with nation-state </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">backing, who may desire to use cybersecurity attacks to cause damage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or create leverage against geopolitical rivals. Cyber security breaches </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may involve unauthorized access to the Fund’s digital information </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">systems (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">e.g.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, through “hacking” or malicious software coding), and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may come from multiple sources, including outside attacks such as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">denial-of-service attacks (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, efforts to make network services </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unavailable to intended users) or cyber extortion, including exfiltration </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of data held for ransom and/or “ransomware” attacks that renders </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">systems inoperable until the ransom is paid, or insider actions (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">e.g.</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intentionally or unintentionally harmful acts of PIMCO personnel). In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, cyber security breaches involving the Fund’s third party service </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">providers (including but not limited to advisers, sub-advisers, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">administrators, transfer agents, custodians, vendors, suppliers, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distributors and other third parties), trading counterparties or issuers in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which the Fund invests can also subject the Fund to many of the same </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risks associated with direct cyber security breaches or extortion of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">company data. PIMCO’s use of cloud-based service providers could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">heighten or change these risks. In addition, work-from-home </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">arrangements by the Fund, the Investment Manager or their service </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">providers could increase all of the above risks, create additional data </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and information accessibility concerns, and make the Fund, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investment Manager or their service providers susceptible to operational </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disruptions, any of which could adversely impact their operations.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Cyber security failures or breaches may result in financial losses to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund and its shareholders. For example, cyber security failures or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">breaches involving trading counterparties or issuers in which the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invests could adversely impact such counterparties or issuers and cause </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s investment to lose value. These failures or breaches may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result in disruptions to business operations, potentially resulting in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial losses; interference with the Fund’s ability to calculate its NAV, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">process shareholder transactions or otherwise transact business with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shareholders; impediments to trading; violations of applicable privacy </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other laws; regulatory fines; penalties; third-party claims in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">litigation; reputational damage; reimbursement or other compensation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">costs; additional compliance and cyber security risk management costs </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other adverse consequences. In addition, substantial costs may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">incurred in order to prevent any cyber incidents in the future.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Like with operational risk in general, the Fund has established business </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">continuity plans and risk management systems designed to reduce the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risks associated with cyber security. However, there are inherent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limitations in these plans and systems, including that certain risks may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not have been identified, in large part because different or unknown </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">threats may emerge in the future. As such, there is no guarantee that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such efforts will succeed, especially because the Fund does not directly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">control the cyber security systems of issuers in which the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invest, trading counterparties or third-party service providers to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund. Such entities have experienced cyber attacks and other attempts </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to gain unauthorized access to systems from time to time, and there is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">no guarantee that efforts to prevent or mitigate the effects of such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">attacks or other attempts to gain unauthorized access will be successful. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There is also a risk that cyber security breaches may not be detected. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund and its shareholders may suffer losses as a result of a cyber </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">security breach related to the Fund, its service providers, trading </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">counterparties or the issuers in which the Fund invests.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Potential Conflicts of Interest Risk—Allocation of Investment </div></div><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Opportunities</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Investment Manager and its affiliates are involved worldwide with a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">broad spectrum of financial services and asset management activities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and may engage in the ordinary course of business in activities in which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">their interests or the interests of their clients may conflict with those of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund. The Investment Manager may provide investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">management services to other funds and discretionary managed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">accounts that follow an investment program similar to that of the Fund. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Subject to the requirements of the 1940 Act, the Investment Manager </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intends to engage in such activities and may receive compensation from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">third parties for its services. The results of the Fund’s investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">activities may differ from those of the Fund’s affiliates, or another </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">account managed by the Investment Manager or its affiliates, and it is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">possible that the Fund could sustain losses during periods in which one </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or more of the Fund’s affiliates and/or other accounts managed by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investment Manager or its affiliates, including proprietary accounts, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">achieve profits on their trading.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Market Disruptions Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund is subject to investment and operational risks associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial, economic and other global market developments and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disruptions, including those arising from war, military conflicts, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">geopolitical disputes, terrorism, social or political unrest, recessions, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">supply chain disruptions, tariffs and other restrictions on trade, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sanctions, market manipulation, government interventions, defaults and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shutdowns, political changes or diplomatic developments, public health </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">emergencies (such as the spread of infectious diseases, pandemics and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">epidemics), bank failures, natural/environmental disasters, climate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">change and climate related events, responses to government actions or </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interventions (the threat or imposition of tariffs, trade restrictions, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currency restrictions, or similar actions) which can all negatively impact </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the securities markets, interest rates, auctions, secondary trading, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ratings, credit risk, inflation, deflation and other factors relating to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s investments or the Investment Manager’s operations and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of an investment in the Fund, its distributions and its returns. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">These events can also impair the technology and other operational </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">systems upon which the Fund’s service providers, including PIMCO as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s investment adviser, rely, and could otherwise disrupt the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s service providers’ ability to fulfill their obligations to the Fund. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Furthermore, events involving limited liquidity, defaults, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-performance or other adverse developments that affect financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">institutions or the financial services industry generally, or concerns or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rumors about any events of these kinds or other similar risks, have in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">past and may in the future lead to market-wide liquidity problems.</div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Focused Investment Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To the extent that the Fund focuses its investments in a particular sector, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">it may be susceptible to loss due to adverse developments affecting that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sector, including (but not limited to): governmental regulation; inflation; </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rising interest rates; cost increases in raw materials, fuel and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operating expenses; technological innovations that may render existing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">products and equipment obsolete; competition from new entrants; high </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">research and development costs; increased costs associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">compliance with environmental or other governmental regulations; and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other economic, business or political developments specific to that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sector. Furthermore, the Fund may invest a substantial portion of its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assets in companies in related sectors that may share common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">characteristics, are often subject to similar business risks and regulatory </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">burdens, and whose securities may react similarly to the types of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">developments described above, which will subject the Fund to greater </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk. The Fund also will be subject to focused investment risk to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extent that it invests a substantial portion of its assets in a particular </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuer, market, asset class, country or geographic region.</div></div></div> <div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Certain Affiliations</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain broker-dealers may be considered to be affiliated persons of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund and/or the Investment Manager due to their possible affiliations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with Allianz SE, the ultimate parent of the Investment Manager, or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">another Allianz entity. Allianz Asset Management of America LP merged </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with Allianz Asset Management of America LLC (“Allianz Asset </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Management”), with the latter being the surviving entity, effective </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">January 1, 2023. Following the merger, Allianz Asset Management is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO’s managing member and direct parent entity. Absent an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exemption from the SEC or other regulatory relief, the Fund is generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">precluded from effecting certain principal transactions with affiliated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">brokers, and its ability to purchase securities being underwritten by an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affiliated broker or a syndicate including an affiliated broker, or to utilize </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affiliated brokers for agency transactions, is subject to restrictions. This </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could limit the Fund’s ability to engage in securities transactions and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">take advantage of market opportunities.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The 1940 Act imposes significant limits on co-investment with affiliates </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the Fund. The Fund has received exemptive relief from the SEC that, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the extent the Fund relies on such relief, permits it to (among other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">things) co-invest alongside certain other persons in privately negotiated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments, including certain affiliates of the Investment Manager and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain public or private funds managed by the Investment Manager and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its affiliates, subject to certain terms and conditions. The exemptive relief </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from the SEC with respect to co-investments imposes a number of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions on any co-investments made in reliance on such relief that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may limit or restrict the Fund’s ability to participate in an investment or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">require it to participate in an investment to a lesser extent, which could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">negatively impact the Fund’s ability to execute its desired investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strategy and its returns. Subject to applicable law, the Fund may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invest alongside other PIMCO managed funds and accounts, including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">private funds and affiliates of the Investment Manager, without relying </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on the exemptive relief. Pursuant to co-investment exemptive relief, to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the extent the Fund relies on such relief, the Fund will be able to invest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in opportunities in which PIMCO and/or its affiliates has an investment, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and PIMCO and/or its affiliates will be able to invest in opportunities in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which a fund has made an investment.</div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Anti-Takeover Provisions</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s Declaration and the Fund's Bylaws include provisions that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could limit the ability of other entities or persons to acquire control of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund or to convert the Fund to open-end status. These provisions in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Declaration and the Fund's Bylaws could have the effect of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">depriving the Common Shareholders of opportunities to sell their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares at a premium over the then-current market price of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares or at NAV.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Fund Distribution Rates</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Although the Fund may seek to maintain level distributions, the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distribution rates may be affected by numerous factors, including but </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not limited to changes in realized and projected market returns, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fluctuations in market interest rates, Fund performance, and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">factors. The Fund’s distributions may be comprised of a return of capital. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In general terms, a return of capital would occur where a Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distribution (or portion thereof) represents a return of a portion of your </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment, rather than net income or capital gains generated from your </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment during a particular period. There can be no assurance that a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">change in market conditions or other factors will not result in a change </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in the Fund’s distribution rate or that the rate will be sustainable in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">future.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">For instance, during periods of low or declining interest rates, the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distributable income and dividend levels may decline for many reasons. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">For example, the Fund may have to deploy uninvested assets (whether </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from sales of Fund shares, proceeds from matured, traded or called debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations or other sources) in new, lower yielding instruments.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Additionally, payments from certain instruments that may be held by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund (such as variable and floating rate securities) may be negatively </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impacted by declining interest rates, which may also lead to a decline in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s distributable income and dividend levels.</div></div></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Description of Capital Structure</div></div></div></div><div style="line-height:12.0pt;margin-top:2pt;text-align:left"><div style="margin-top:2pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The following is a brief description of the capital structure of the Fund. This description does not purport to be complete and is subject to and qualified </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in its entirety by reference to the Declaration and the Fund’s Bylaws, as amended and restated through the date hereof (the “Bylaws”). The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Declaration and Bylaws are each exhibits to the registration statement of which this prospectus is a part.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund is an unincorporated voluntary association with transferable shares of beneficial interest (commonly referred to as a “Massachusetts </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">business trust”) established under the laws of the Commonwealth of Massachusetts by the Declaration. The Declaration provides that the Trustees of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund may authorize separate classes of shares of beneficial interest. However, as of the date of this prospectus, the Fund does not have any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shares outstanding other than the Common Shares. </div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The following table shows the amount of Common Shares authorized and outstanding as of </div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">April 30, 2026.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:0.0pt;margin-top:6pt;text-align:left"><div style="margin-top:6pt"> </div></div><div style="margin-top:0.0pt"> <table cellpadding="0" cellspacing="0" style="text-align:start; border-bottom:0.5pt solid #00687D;empty-cells:show;width:538pt"> <tr style="height:14.25pt"> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:257.01pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Title of Class</div></div></div></div></td> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:68.6pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Amount Authorized</div></div></div></div></td> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:142.51pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Amount Held by Registrant or for its Account</div></div></div></div></td> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:69.88pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Amount Outstanding</div></div></div></div></td></tr> <tr style="height:8.75pt"> <td style="background-color:azure;padding-bottom:2pt;padding-top:1.75pt;vertical-align:Top;width:257.01pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares</div></div></div></td> <td style="background-color:azure;padding-bottom:2pt;padding-top:1.75pt;vertical-align:Top;width:68.6pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Unlimited</div></div></div></td> <td style="background-color:azure;padding-bottom:2pt;padding-top:1.75pt;vertical-align:Top;width:142.51pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0</div></div></div></td> <td style="background-color:azure;padding-bottom:2pt;padding-top:1.75pt;vertical-align:Top;width:69.88pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">74,721,061</div></div></div></td></tr></table></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Common Shares of the Fund commenced trading on the NYSE in December 2001, under the trading or “ticker” symbol “PCN.” As of the close of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">trading on the NYSE on April 30, 2026, the NAV per Common Share was $11.56, and the closing price per Common Share on the NYSE was $12.02.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shareholders are entitled to share equally in dividends declared by the Board to Common Shareholders and in the net assets of the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">available for distribution to Common Shareholders after payment of the preferential amounts payable to holders of any outstanding preferred shares </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of beneficial interest.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">All Common Shares of the Fund have equal rights to the payment of dividends and the distribution of assets upon liquidation.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares of the Fund are fully paid and, subject to matters discussed in “Anti-Takeover and Other Provisions in the Agreement and Declaration </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of Trust and Bylaws,” non-assessable, and have no pre-emptive or conversion rights or rights to cumulative voting, and have no right to cause the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund to redeem their shares.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Upon liquidation of the Fund, after payment of the preferential amounts payable to holders of any outstanding preferred shares of beneficial interest, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and upon receipt of such releases, indemnities and refunding agreements as they deem necessary for their protection, the Trustees may distribute the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">remaining assets of the Fund among the Fund’s Common Shareholders.</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders of each class are entitled to one vote for each share held. Common Shareholders will vote with the holders of any outstanding preferred </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shares as a single class on each matter submitted to a vote of holders of Common Shares, except as otherwise provided by the Declaration, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Bylaws or applicable law.</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:14.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Plan of Distribution</div></div></div></div><div style="line-height:12.0pt;margin-top:2pt;text-align:left"><div style="margin-top:2pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may sell Common Shares to or through underwriters or dealers, directly to one or more purchasers (including existing shareholders in a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rights offering), through agents, or through a combination of any such methods of sale. The applicable prospectus supplement will identify any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">underwriter or agent involved in the offer and sale of the Common Shares, any sales loads, discounts, commissions, fees or other compensation paid </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to any underwriter, dealer or agent, the offering price, net proceeds and use of proceeds and the terms of any sale.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The distribution of the Common Shares may be effected from time to time in one or more transactions at a fixed price or prices, which may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changed, at prevailing market prices at the time of sale, at prices related to such prevailing market prices, or at negotiated prices. The sale of Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shares by the Fund (or the perception that such sales may occur), particularly if sold at a discount to the then-current market price of the Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shares, may have an adverse effect on the market price of the Common Shares.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may sell the Common Shares directly to, and solicit offers from, institutional investors or others who may be deemed to be underwriters as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">defined in the Securities Act for any resales of the securities. In this case, no underwriters or agents would be involved. The Fund may use electronic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">media, including the Internet, to sell offered securities directly.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In connection with the sale of the Common Shares, underwriters or agents may receive compensation from the Fund or from PIMCO or its affiliates in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the form of discounts, concessions or commissions. Underwriters may sell Common Shares to or through dealers, and such dealers may receive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">compensation in the form of discounts, concessions or commissions from the underwriters and/or commissions from the purchasers for whom they </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may act as agents. Underwriters, dealers and agents that participate in the distribution of the Common Shares may be deemed to be underwriters </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">under the Securities Act, and any discounts and commissions they receive from the Fund and any profit realized by them on the resale of the Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shares may be deemed to be underwriting discounts and commissions under the Securities Act. Any such underwriter or agent will be identified and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any such compensation received from the Fund will be described in the applicable prospectus supplement. The maximum amount of compensation to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be received by any Financial Industry Regulatory Authority member or independent broker-dealer will not exceed 8% for the sale of any securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">being registered pursuant to Rule 415 under the Securities Act. The Fund will not pay any compensation to any underwriter or agent in the form of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">warrants, options, consulting or structuring fees or similar arrangements.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">If a prospectus supplement so indicates, the Fund may grant the underwriters an option to purchase additional Common Shares at the public offering </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">price, less the underwriting discounts and commissions, within a certain number of days (often 30 to 45 days) from the date of the prospectus </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">supplement, to cover any over-allotments.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">nder agreements into which the Fund may enter, underwriters, dealers and agents who participate in the distribution of the Common Shares may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">entitled to indemnification by the Fund against certain liabilities, including liabilities under the Securities Act. Underwriters, dealers and agents may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">engage in transactions with the Fund, or perform services for the Fund, in the ordinary course of business.</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">If so indicated in the applicable prospectus supplement, the Fund will, or will authorize underwriters or other persons acting as its agents to, solicit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">offers by certain institutions to purchase Common Shares from the Fund pursuant to contracts providing for payment and delivery on a future date. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Institutions with which such contracts may be made include commercial and savings banks, insurance companies, pension funds, investment companies, educational and charitable institutions and others, but in all cases such institutions must be approved by the Fund. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The obligation of any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchaser under any such contract will be subject to the condition that the purchase of the Common Shares shall not at the time of delivery be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prohibited under the laws of the jurisdiction to which such purchaser is subject. The underwriters and such other agents will not have any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">responsibility in respect of the validity or performance of such contracts. Such contracts will be subject only to those conditions set forth in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prospectus supplement, and the prospectus supplement will set forth the commission payable for solicitation of such contracts.</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To the extent permitted under the 1940 Act and the rules and regulations promulgated thereunder, the underwriters may from time to time act as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">brokers or dealers and receive fees in connection with the execution of the Fund’s portfolio transactions after the underwriters have ceased to be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">underwriters and, subject to certain restrictions, each may act as a broker while it is an underwriter.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">A prospectus and accompanying prospectus supplement in electronic form may be made available on the websites maintained by underwriters. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">underwriters may agree to allocate a number of securities for sale to their online brokerage account holders. Such allocations of securities for Internet </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distributions will be made on the same basis as other allocations. In addition, securities may be sold by the underwriters to securities dealers who </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">resell securities to online brokerage account holders.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In order to comply with the securities laws of certain states, if applicable, Common Shares offered hereby will be sold in such jurisdictions only </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">through registered or licensed brokers or dealers.</div></div></div> The following table shows the amount of Common Shares authorized and outstanding as of <div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">April 30, 2026.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="line-height:0.0pt;margin-top:6pt;text-align:left"><div style="margin-top:6pt"> </div></div> <table cellpadding="0" cellspacing="0" style="text-align:start; border-bottom:0.5pt solid #00687D;empty-cells:show;width:538pt"> <tr style="height:14.25pt"> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:257.01pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Title of Class</div></div></div></div></td> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:68.6pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Amount Authorized</div></div></div></div></td> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:142.51pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Amount Held by Registrant or for its Account</div></div></div></div></td> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:69.88pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Amount Outstanding</div></div></div></div></td></tr> <tr style="height:8.75pt"> <td style="background-color:azure;padding-bottom:2pt;padding-top:1.75pt;vertical-align:Top;width:257.01pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares</div></div></div></td> <td style="background-color:azure;padding-bottom:2pt;padding-top:1.75pt;vertical-align:Top;width:68.6pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Unlimited</div></div></div></td> <td style="background-color:azure;padding-bottom:2pt;padding-top:1.75pt;vertical-align:Top;width:142.51pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0</div></div></div></td> <td style="background-color:azure;padding-bottom:2pt;padding-top:1.75pt;vertical-align:Top;width:69.88pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">74,721,061</div></div></div></td></tr></table> Common Shares 0 74721061 All Common Shares of the Fund have equal rights to the payment of dividends and the distribution of assets upon liquidation. <div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Upon liquidation of the Fund, after payment of the preferential amounts payable to holders of any outstanding preferred shares of beneficial interest, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and upon receipt of such releases, indemnities and refunding agreements as they deem necessary for their protection, the Trustees may distribute the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">remaining assets of the Fund among the Fund’s Common Shareholders.</div> <div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders of each class are entitled to one vote for each share held. Common Shareholders will vote with the holders of any outstanding preferred </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shares as a single class on each matter submitted to a vote of holders of Common Shares, except as otherwise provided by the Declaration, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Bylaws or applicable law.</div> <div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">nder agreements into which the Fund may enter, underwriters, dealers and agents who participate in the distribution of the Common Shares may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">entitled to indemnification by the Fund against certain liabilities, including liabilities under the Securities Act. Underwriters, dealers and agents may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">engage in transactions with the Fund, or perform services for the Fund, in the ordinary course of business.</div> <div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The obligation of any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchaser under any such contract will be subject to the condition that the purchase of the Common Shares shall not at the time of delivery be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prohibited under the laws of the jurisdiction to which such purchaser is subject. The underwriters and such other agents will not have any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">responsibility in respect of the validity or performance of such contracts. Such contracts will be subject only to those conditions set forth in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prospectus supplement, and the prospectus supplement will set forth the commission payable for solicitation of such contracts.</div> <div style="line-height:14.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Market and Net Asset Value Information</div></div></div><div style="line-height:12.0pt;margin-top:2pt;text-align:left"><div style="margin-top:2pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s Common Shares are listed on the NYSE under the trading or “ticker” symbol “PCN.” The Fund’s Common Shares commenced trading on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the NYSE in December 2001. The Fund cannot predict whether its Common Shares will trade in the future at a premium or discount to NAV. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conduct of any offering and the issuance of additional Common Shares pursuant to any offering may have an adverse effect on prices in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">secondary market for the Fund’s Common Shares by increasing the number of shares available, which may put downward pressure on the market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">price for the Common Shares. The proceeds of an offering will be reduced immediately following an offering by any sales load, commissions and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">offering expenses paid or reimbursed by the Fund in connection with such offering. The completion of an offering may result in an immediate dilution </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the NAV per Common Share for all existing Common Shareholders.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The following table sets forth, for each of the periods indicated, the high and low closing market prices of the Fund’s Common Shares on the NYSE, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the high and low NAV per Common Share and the high and low premium/discount to NAV per Common Share. See “Net Asset Value” for information </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as to how the Fund’s NAV is determined.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:0.0pt;margin-top:6pt;text-align:left"><div style="margin-top:6pt"> </div></div><div style="margin-top:0.0pt"> <table cellpadding="0" cellspacing="0" style="text-align:start; border-bottom:0.5pt solid #00687D;empty-cells:show;width:538pt"> <tr style="height:21.25pt"> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:359.17pt"><div style="line-height:0.5pt;text-align:left"><div style="margin-left: 3pt; margin-right: 3pt; text-align: left; white-space: nowrap; font-size: 7pt;"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;"> </div></div></div></div></td> <td colspan="2" style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:51.6pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Common share</div></div></div><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">market price</div></div><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 4.5pt; position: relative; top: -2.75pt; letter-spacing: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">(1)</div></div> </div></div></td> <td colspan="2" style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:51.6pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Common share</div></div></div><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">net asset value</div></div></div></div></td> <td colspan="2" style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:75.64pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Premium (discount) as a</div></div></div><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">% of net asset value</div></div></div></div></td></tr> <tr style="height:11.5pt"> <td style="background-color:azure;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:359.17pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Quarter</div></div></div></div></td> <td style="background-color:azure;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:25.8pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">High</div></div></div></div></td> <td style="background-color:azure;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:25.8pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Low</div></div></div></div></td> <td style="background-color:azure;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:25.8pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">High</div></div></div></div></td> <td style="background-color:azure;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:25.8pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Low</div></div></div></div></td> <td style="background-color:azure;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:37.82pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">High</div></div></div></div></td> <td style="background-color:azure;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:37.82pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Low</div></div></div></div></td></tr> <tr style="height:11.25pt"> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:359.17pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Quarter ended March 31, 2026</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$12.88</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$11.43</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$12.00</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$11.41</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:37.82pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">8.47%</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:37.82pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0.18%</div></div></div></td></tr> <tr style="height:11pt"> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:359.17pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Quarter ended December 31, 2025</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$13.44</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$12.34</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$12.01</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$11.81</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:37.82pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">12.58%</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:37.82pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">4.14%</div></div></div></td></tr> <tr style="height:11pt"> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:359.17pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Quarter ended September 30, 2025</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$13.45</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$12.52</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$12.00</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$11.68</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:37.82pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">12.84%</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:37.82pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">6.03%</div></div></div></td></tr> <tr style="height:11pt"> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:359.17pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Quarter ended June 30, 2025</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$13.64</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$11.76</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$11.81</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$11.37</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:37.82pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">15.79%</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:37.82pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">1.91%</div></div></div></td></tr> <tr style="height:11pt"> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:359.17pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Quarter ended March 31, 2025</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$13.81</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$13.34</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$11.96</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$11.75</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:37.82pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">16.47%</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:37.82pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">12.40%</div></div></div></td></tr> <tr style="height:11pt"> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:359.17pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Quarter ended December 31, 2024</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$14.30</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$13.32</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$11.98</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$11.81</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:37.82pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">19.57%</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:37.82pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">12.60%</div></div></div></td></tr> <tr style="height:11pt"> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:359.17pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Quarter ended September 30, 2024</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$14.19</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$13.08</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$11.97</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$11.38</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:37.82pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">20.02%</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:37.82pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">12.85%</div></div></div></td></tr> <tr style="height:11pt"> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:359.17pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Quarter ended June 30, 2024</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$14.21</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$12.46</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$11.66</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$11.35</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:37.82pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">22.08%</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:37.82pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">8.82%</div></div></div></td></tr> <tr style="height:11pt"> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:359.17pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Quarter ended March 31, 2024</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$13.97</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$12.37</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$11.68</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$11.41</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:37.82pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">19.81%</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:37.82pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">7.19%</div></div></div></td></tr> <tr style="height:11pt"> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:359.17pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Quarter ended December 31, 2023</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$12.66</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$10.75</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$11.58</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$10.58</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:37.82pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">14.93%</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:37.82pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">1.32%</div></div></div></td></tr> <tr style="height:8.5pt"> <td style="background-color:#FFFFFF;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:359.17pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Quarter ended September 30, 2023</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$14.24</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$12.17</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$11.15</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:25.8pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">$10.83</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:37.82pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">29.00%</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:37.82pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">11.55%</div></div></div></td></tr></table></div><div><div style="clear:both;margin-top:4pt;position:relative;width:100%"><div style="float:left;line-height:7pt;text-align:left;width:5.99pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 5pt; position: relative; top: 0px; letter-spacing: 0px;display:inline;">(1)</div></div><div style="float:left;line-height:10.0pt;margin-left:4.01pt;text-align:left;width:523.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Such prices reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions.</div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-top:4.0pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s NAV per Common share at the close of business on April 30, 2026 was $11.56 and the last reported sale price of a Common Share on the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">NYSE on that day was $12.02, representing a 3.98% premium to such NAV.</div></div></div> 12.88 11.43 12 11.41 0.0847 0.0018 13.44 12.34 12.01 11.81 0.1258 0.0414 13.45 12.52 12 11.68 0.1284 0.0603 13.64 11.76 11.81 11.37 0.1579 0.0191 13.81 13.34 11.96 11.75 0.1647 0.124 14.3 13.32 11.98 11.81 0.1957 0.126 14.19 13.08 11.97 11.38 0.2002 0.1285 14.21 12.46 11.66 11.35 0.2208 0.0882 13.97 12.37 11.68 11.41 0.1981 0.0719 12.66 10.75 11.58 10.58 0.1493 0.0132 14.24 12.17 11.15 10.83 0.29 0.1155 Such prices reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions. 11.56 12.02 0.0398 You will pay brokerage charges if you direct your broker or the plan agent to sell your Common Shares that you acquired pursuant to a dividend reinvestment plan. You may also pay a pro rata share of brokerage commissions incurred in connection with open market purchases pursuant to the Plan. See “Dividend Reinvestment Plan. In the event that the Common Shares to which this prospectus relates are sold to or through underwriters or dealer managers, a corresponding prospectus supplement will disclose the applicable sales load and/or commission. The related prospectus supplement will disclose the estimated amount of offering expenses, the offering price and the offering expenses borne by the Fund and indirectly by all of its Common Shareholders as a percentage of the offering price. Management Fees include fees payable to the Investment Manager for advisory services and for supervisory, administrative and other services. The Fund pays for the advisory, supervisory and administrative services it requires under what is essentially an all-in fee structure (the “unified management fee”). Pursuant to an investment management agreement, PIMCO is paid a Management Fee of 0.81% of the Fund’s average daily net assets (including daily net assets attributable to any preferred shares of the Fund that may be outstanding). The Fund (and not PIMCO) will be responsible for certain fees and expenses, which are reflected in the table above, that are not covered by the management fee under the investment management agreement. Please see “Management of the Fund– Investment Management Agreement” for an explanation of the unified management fee and a definition of “daily net assets.” Reflects the Fund’s use of leverage in the form of reverse repurchase agreements averaged over the period ended December 31, 2025, which represented 9.00% of the Fund's average total managed assets, including the assets attributable to leverage (or 9.89% of the Fund's average net assets attributable to Common Shares), as of that date, at an annual interest rate cost to the Fund of 4.45%, which is the weighted average interest rate cost during the fiscal year ended June 30, 2025. See “Use of Leverage—Effects of Leverage.” The actual amount of interest expense borne by the Fund will vary over time in accordance with the level of the Fund’s use of reverse repurchase agreements, dollar rolls/buybacks and/or borrowings and variations in market interest rates. Borrowing expense is required to be treated as an expense of the Fund for accounting purposes. Any associated income or gains (or losses) realized from leverage obtained through such instruments is not reflected in the Annual Expenses table above, but would be reflected in the Fund’s performance results. “Other Expenses” are estimated for the Fund’s current fiscal year ending June 30, 2026. “Interest Payments on Borrowed Funds” are borne by the Fund separately from the management fees paid to PIMCO. Excluding these expenses, Total Annual Expenses are 0.83%. The example above should not be considered a representation of future expenses. Actual expenses may be higher or lower than those shown. The example assumes that the estimated Interest Payments on Borrowed Funds and Other Expenses set forth in the Annual Expenses table are accurate, that the rate listed under Total Annual Expenses remains the same each year and that all dividends and distributions are reinvested at NAV. Actual expenses may be greater or less than those assumed. Moreover, the Fund’s actual rate of return may be greater or less than the hypothetical 5% annual return shown in the example. The example does not include commissions or estimated offering expenses, which would cause the expenses shown in the example to increase. In connection with an offering of Common Shares, the prospectus supplement will set forth an example including sales load and estimated offering costs.