0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:C000004878Member 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:C000004879Member 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:C000004880Member 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:C000004882Member 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:C000173964Member 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:AllocationRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:CollateralizedDebtObligationsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:CommoditiesRelatedInvestmentsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:ConvertibleSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:CorporateLoansRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:CounterpartyRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:DebtSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:DepositaryReceiptsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:DerivativesRisksMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:DistressedSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:DollarRollsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:EmergingMarketsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:EquitySecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:ForeignSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:HighPortfolioTurnoverRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:HighYieldBondsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:IlliquidInvestmentsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:IndexedAndInverseSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:InflationIndexedBondsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:InvestmentStyleRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:LeverageRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:MarketRiskAndSelectionRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:MidCapSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:MoneyMarketSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:MortgageAndAssetBackedSecuritiesRisksMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:MunicipalSecuritiesRisksMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:OperationalAndTechnologyRisksMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:PreferredSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:RealEstateRelatedSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:REITInvestmentRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:RepurchaseAgreementsAndPurchaseAndSaleContractsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:ReverseRepurchaseAgreementsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member oef:RiskLoseMoneyMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:RiskOfInvestingInTheUnitedStatesMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:RisksOfLoanAssignmentsAndParticipationsMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:SecondLienLoansRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:SeniorLoansRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:ShortSalesAndShortPositionRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:SmallCapAndEmergingGrowthSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:SovereignDebtRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:StructuredNotesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:StructuredSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:SubsidiaryRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:SupranationalEntitiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:TenderOptionBondsAndRelatedSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:USGovernmentMortgageRelatedSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:USGovernmentObligationsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:VariableAndFloatingRateInstrumentRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:WarrantsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:ZeroCouponSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:AllocationRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:CollateralizedDebtObligationsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:CommoditiesRelatedInvestmentsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:ConvertibleSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:CorporateLoansRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:CounterpartyRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:DebtSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:DepositaryReceiptsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:DerivativesRisksMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:DistressedSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:DollarRollsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:EmergingMarketsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:EquitySecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:ForeignSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:HighPortfolioTurnoverRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:HighYieldBondsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:IlliquidInvestmentsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:IndexedAndInverseSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:InflationIndexedBondsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:InvestmentStyleRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:LeverageRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:MarketRiskAndSelectionRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:MidCapSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:MoneyMarketSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:MortgageAndAssetBackedSecuritiesRisksMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:MunicipalSecuritiesRisksMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:OperationalAndTechnologyRisksMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:PreferredSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:RealEstateRelatedSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:REITInvestmentRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:RepurchaseAgreementsAndPurchaseAndSaleContractsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:ReverseRepurchaseAgreementsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member oef:RiskLoseMoneyMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:RiskOfInvestingInTheUnitedStatesMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:RisksOfLoanAssignmentsAndParticipationsMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:SecondLienLoansRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:SeniorLoansRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:ShortSalesAndShortPositionRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:SmallCapAndEmergingGrowthSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:SovereignDebtRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:StructuredNotesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:StructuredSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:SubsidiaryRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:SupranationalEntitiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:TenderOptionBondsAndRelatedSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:USGovernmentMortgageRelatedSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:USGovernmentObligationsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:VariableAndFloatingRateInstrumentRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:WarrantsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:ZeroCouponSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:AllocationRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:CollateralizedDebtObligationsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:CommoditiesRelatedInvestmentsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:ConvertibleSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:CorporateLoansRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:CounterpartyRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:DebtSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:DepositaryReceiptsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:DerivativesRisksMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:DistressedSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:DollarRollsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:EmergingMarketsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:EquitySecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:ForeignSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:HighPortfolioTurnoverRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:HighYieldBondsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:IlliquidInvestmentsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:IndexedAndInverseSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:InflationIndexedBondsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:InvestmentStyleRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:LeverageRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:MarketRiskAndSelectionRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:MidCapSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:MoneyMarketSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:MortgageAndAssetBackedSecuritiesRisksMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:MunicipalSecuritiesRisksMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:OperationalAndTechnologyRisksMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:PreferredSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:RealEstateRelatedSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:REITInvestmentRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:RepurchaseAgreementsAndPurchaseAndSaleContractsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:ReverseRepurchaseAgreementsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member oef:RiskLoseMoneyMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:RiskOfInvestingInTheUnitedStatesMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:RisksOfLoanAssignmentsAndParticipationsMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:SecondLienLoansRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:SeniorLoansRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:ShortSalesAndShortPositionRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:SmallCapAndEmergingGrowthSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:SovereignDebtRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:StructuredNotesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:StructuredSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:SubsidiaryRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:SupranationalEntitiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:TenderOptionBondsAndRelatedSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:USGovernmentMortgageRelatedSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:USGovernmentObligationsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:VariableAndFloatingRateInstrumentRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:WarrantsRiskMember 2026-04-30 2026-04-30 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:ZeroCouponSecuritiesRiskMember 2026-04-30 2026-04-30 0000844779 2026-04-30 2026-04-30 0000844779 bf1:InvestorACAndInstitutionalMember bf1:C000004878Member 2021-01-01 2025-12-31 0000844779 bf1:ServicesMember bf1:C000004879Member 2021-01-01 2025-12-31 0000844779 bf1:ServicesMember bf1:C000004879Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0000844779 bf1:ServicesMember bf1:C000004879Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:C000004880Member 2021-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:C000004880Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:C000004880Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:C000004882Member 2021-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:C000173964Member 2021-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:C000173964Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:C000173964Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:Bloomberg13YearTreasuryBondIndexMember 2021-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:ICEBofA3MonthUSTreasuryBillIndexMember 2021-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:MSCIAllCountryWorldIndexNetMember 2021-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:TwentyFiveMSCIAllCountryWorldIndexNet75Bloomberg13YearTreasuryBondIndexMember 2021-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:Bloomberg13YearTreasuryBondIndexMember 2021-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:ICEBofA3MonthUSTreasuryBillIndexMember 2021-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:MSCIAllCountryWorldIndexNetMember 2021-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:TwentyFiveMSCIAllCountryWorldIndexNet75Bloomberg13YearTreasuryBondIndexMember 2021-01-01 2025-12-31 0000844779 bf1:ServicesMember bf1:Bloomberg13YearTreasuryBondIndexMember 2021-01-01 2025-12-31 0000844779 bf1:ServicesMember bf1:ICEBofA3MonthUSTreasuryBillIndexMember 2021-01-01 2025-12-31 0000844779 bf1:ServicesMember bf1:MSCIAllCountryWorldIndexNetMember 2021-01-01 2025-12-31 0000844779 bf1:ServicesMember bf1:TwentyFiveMSCIAllCountryWorldIndexNet75Bloomberg13YearTreasuryBondIndexMember 2021-01-01 2025-12-31 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:C000004879Member 2016-01-01 2016-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:C000004880Member 2016-01-01 2016-12-31 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:C000173964Member 2016-01-01 2016-12-31 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:C000004879Member 2017-01-01 2017-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:C000004880Member 2017-01-01 2017-12-31 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:C000173964Member 2017-01-01 2017-12-31 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:C000004879Member 2018-01-01 2018-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:C000004880Member 2018-01-01 2018-12-31 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:C000173964Member 2018-01-01 2018-12-31 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:C000004879Member 2019-01-01 2019-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:C000004880Member 2019-01-01 2019-12-31 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:C000173964Member 2019-01-01 2019-12-31 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:C000004879Member 2020-01-01 2020-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:C000004880Member 2020-01-01 2020-12-31 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:C000173964Member 2020-01-01 2020-12-31 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:C000004879Member 2021-01-01 2021-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:C000004880Member 2021-01-01 2021-12-31 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:C000173964Member 2021-01-01 2021-12-31 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:C000004879Member 2022-01-01 2022-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:C000004880Member 2022-01-01 2022-12-31 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:C000173964Member 2022-01-01 2022-12-31 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:C000004879Member 2023-01-01 2023-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:C000004880Member 2023-01-01 2023-12-31 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:C000173964Member 2023-01-01 2023-12-31 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:C000004879Member 2024-01-01 2024-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:C000004880Member 2024-01-01 2024-12-31 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:C000173964Member 2024-01-01 2024-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:C000004878Member 2025-01-01 2025-12-31 0000844779 bf1:ServicesMember bf1:C000004879Member 2025-01-01 2025-12-31 0000844779 bf1:ServicesMember bf1:C000004879Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0000844779 bf1:ServicesMember bf1:C000004879Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:C000004880Member 2025-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:C000004880Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:C000004880Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:C000004882Member 2025-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:C000173964Member 2025-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:C000173964Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:C000173964Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:Bloomberg13YearTreasuryBondIndexMember 2025-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:ICEBofA3MonthUSTreasuryBillIndexMember 2025-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:MSCIAllCountryWorldIndexNetMember 2025-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:TwentyFiveMSCIAllCountryWorldIndexNet75Bloomberg13YearTreasuryBondIndexMember 2025-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:Bloomberg13YearTreasuryBondIndexMember 2025-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:ICEBofA3MonthUSTreasuryBillIndexMember 2025-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:MSCIAllCountryWorldIndexNetMember 2025-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:TwentyFiveMSCIAllCountryWorldIndexNet75Bloomberg13YearTreasuryBondIndexMember 2025-01-01 2025-12-31 0000844779 bf1:ServicesMember bf1:S000001870Member bf1:C000004879Member 2025-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:S000001870Member bf1:C000004880Member 2025-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:S000001870Member bf1:C000173964Member 2025-01-01 2025-12-31 0000844779 bf1:ServicesMember bf1:Bloomberg13YearTreasuryBondIndexMember 2025-01-01 2025-12-31 0000844779 bf1:ServicesMember bf1:ICEBofA3MonthUSTreasuryBillIndexMember 2025-01-01 2025-12-31 0000844779 bf1:ServicesMember bf1:MSCIAllCountryWorldIndexNetMember 2025-01-01 2025-12-31 0000844779 bf1:ServicesMember bf1:TwentyFiveMSCIAllCountryWorldIndexNet75Bloomberg13YearTreasuryBondIndexMember 2025-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:C000004878Member 2016-01-01 2025-12-31 0000844779 bf1:ServicesMember bf1:C000004879Member 2016-01-01 2025-12-31 0000844779 bf1:ServicesMember bf1:C000004879Member oef:AfterTaxesOnDistributionsAndSalesMember 2016-01-01 2025-12-31 0000844779 bf1:ServicesMember bf1:C000004879Member oef:AfterTaxesOnDistributionsMember 2016-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:C000004880Member 2016-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:C000004880Member oef:AfterTaxesOnDistributionsAndSalesMember 2016-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:C000004880Member oef:AfterTaxesOnDistributionsMember 2016-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:C000004882Member 2016-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:C000173964Member 2016-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:C000173964Member oef:AfterTaxesOnDistributionsAndSalesMember 2016-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:C000173964Member oef:AfterTaxesOnDistributionsMember 2016-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:Bloomberg13YearTreasuryBondIndexMember 2016-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:ICEBofA3MonthUSTreasuryBillIndexMember 2016-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:MSCIAllCountryWorldIndexNetMember 2016-01-01 2025-12-31 0000844779 bf1:ClassKMember bf1:TwentyFiveMSCIAllCountryWorldIndexNet75Bloomberg13YearTreasuryBondIndexMember 2016-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:Bloomberg13YearTreasuryBondIndexMember 2016-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:ICEBofA3MonthUSTreasuryBillIndexMember 2016-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:MSCIAllCountryWorldIndexNetMember 2016-01-01 2025-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:TwentyFiveMSCIAllCountryWorldIndexNet75Bloomberg13YearTreasuryBondIndexMember 2016-01-01 2025-12-31 0000844779 bf1:ServicesMember bf1:Bloomberg13YearTreasuryBondIndexMember 2016-01-01 2025-12-31 0000844779 bf1:ServicesMember bf1:ICEBofA3MonthUSTreasuryBillIndexMember 2016-01-01 2025-12-31 0000844779 bf1:ServicesMember bf1:MSCIAllCountryWorldIndexNetMember 2016-01-01 2025-12-31 0000844779 bf1:ServicesMember bf1:TwentyFiveMSCIAllCountryWorldIndexNet75Bloomberg13YearTreasuryBondIndexMember 2016-01-01 2025-12-31 iso4217:USD pure 0000844779 false 485BPOS 2026-04-30 0.1143 0.0616 -0.0008 0.0771 0.0434 0.0141 0.0649 0.0029 0.0578 0.0272 0.0629 0.0319 0.1181 0.0666 0.0004 0.0803 0.0479 0.0187 0.0697 0.0064 0.0658 0.0022 0.0585 0.0270 0.1141 0.0621 -0.0008 0.0779 0.0436 0.0149 N-1A BLACKROCK FUNDS 2026-08-28 Fund OverviewKey Facts About BlackRock Tactical Opportunities Fund Investment Objective <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The investment objective of BlackRock Tactical Opportunities Fund (the “Fund”), a series of BlackRock Funds</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">SM</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> (the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Trust</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">), is to seek total return.</span></div> Fees and Expenses of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. Amounts in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the table are rounded to the nearest basis point, which in some cases may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">0.00.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">You may pay other fees, such </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">as brokerage commissions and other fees to your financial professional or your selected securities dealer, broker, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">investment adviser, service provider or industry professional (including BlackRock Advisors, LLC (</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">BlackRock</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">) and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">its affiliates) (each, a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">Financial Intermediary</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">), which are not reflected in the table and example below.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> You may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fund complex advised by BlackRock or its affiliates. More information about these and other discounts is available </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">from your Financial Intermediary and in the “Details About the Share Classes” and the “Intermediary-Defined Sales </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Charge Waiver Policies” sections on pages </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">44</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">A-1</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, respectively, of the Fund’s prospectus and in the “Purchase of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Shares” section on page </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">II-97</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> of Part II of the Fund’s Statement of Additional Information.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in the fund complex advised by BlackRock or its affiliates. 25000 Shareholder Fees (fees paid directly from your investment) 0.0525 0 0 0 0.0100 0 Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0050 0.0050 0.0050 0.0025 0.0100 0 0.0025 0.0021 0.0021 0.0001 0.0001 0.0001 0.0101 0.0172 0.0072 -0.0001 0.0100 0.0172 0.0072 A contingent deferred sales charge (“CDSC”) of 0.75% is assessed on certain redemptions of Investor A Shares made within 18 months after purchase where no initial sales charge was paid at the time of purchase as part of an investment of $1,000,000 or more. June 30, 2028 The Total Annual Fund Operating Expenses do not correlate to the ratios of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which do not include Acquired Fund Fees and Expenses. Example: <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or lower, based on these assumptions your costs would be:</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> 622 829 1053 1695 275 542 933 1842 74 230 401 894 You would pay the following expenses if you did not redeem your shares:  175 542 933 1842 Portfolio Turnover: <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">83</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">% of the average value of its portfolio.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> 0.83 Principal Investment Strategies of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund uses a macro asset allocation strategy, investing varying percentages of its portfolio in global stocks, bonds, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">money market instruments, foreign currencies and cash. The Fund has wide flexibility in the relative weightings given </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to each category. The Fund takes both long and short positions within and across each category, which the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">expects to result in a lower correlation to the equity or fixed-income markets than if the Fund invested in either such </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market in its entirety.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">In selecting investments, the Fund management team will identify global macro opportunities and position the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">using a combination of individual securities and derivatives.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund uses a combination of a systematic (i.e., rule-based) investment process and a discretionary investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">process to allocate assets. The systematic process compares data across similar assets to rank expected return </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">opportunities and to appropriately scale the Fund’s exposure. The discretionary process derives investment themes </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">based on research and analysis of macro-economic data and seeks exposures to these themes.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">With respect to its equity investments, the Fund may invest in individual equity securities to an unlimited extent. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund may invest in common stock, preferred stock, non-convertible preferred stock and depositary receipts. The Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may invest in securities of both U.S. and non-U.S. issuers without limit, which can be U.S. dollar-based or non-U.S. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">dollar-based and may be currency hedged or unhedged. The Fund may invest in securities of companies of any market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">capitalization. The Fund may also invest in securities convertible into common stock.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">With respect to its fixed-income investments, the Fund may invest in individual fixed-income securities to an unlimited </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">extent. The Fund may invest in a portfolio of fixed-income securities such as corporate bonds and notes, commercial </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and residential mortgage-backed securities (bonds that are backed by a mortgage loan or pools of loans secured </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">either by commercial property or residential mortgages, as applicable), collateralized mortgage obligations (bonds that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are backed by cash flows from pools of mortgages and may have multiple classes with different payment rights and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">protections), collateralized debt obligations (“CDOs”), asset-backed securities, convertible securities, debt obligations </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of governments and their sub-divisions (including those of non-U.S. governments), other floating or variable rate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">obligations, municipal obligations and zero coupon debt securities. The Fund may also invest a significant portion of its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">assets in non-investment grade bonds (“junk” bonds or distressed securities), non-investment grade bank loans, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">foreign bonds (both U.S. dollar- and non-U.S. dollar-denominated) and bonds of emerging market issuers. The Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may invest in non-U.S. dollar-denominated bonds on a currency hedged or unhedged basis.</span></div> <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">With respect to its cash investments, the Fund may hold high quality money market securities, including short term </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">U.S. Government securities, U.S. Government agency securities, securities issued by U.S. Government-sponsored </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">enterprises and U.S. Government instrumentalities, bank obligations, commercial paper, including asset-backed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commercial paper, corporate notes and repurchase agreements. The Fund may invest a significant portion of its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">assets in money market funds, including those advised by BlackRock or its affiliates.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may invest in derivatives, including, but not limited to, interest rate, total return and credit default swaps, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">options, futures, options on futures and swaps and foreign currency transactions (including swaps), for hedging </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">purposes, as well as to increase the return on its portfolio investments. The Fund may seek to obtain market exposure </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to the securities in which it primarily invests by entering into a series of purchase and sale contracts or by using other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment techniques (such as reverse repurchase agreements or dollar rolls). The Fund may also use forward foreign </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">currency exchange contracts (obligations to buy or sell a currency at a set rate in the future) to hedge against </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">movement in the value of non-U.S. currencies.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may also invest in indexed and inverse floating rate securities.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may invest in U.S. and non-U.S. real estate investment trusts (“REITs”), structured products (including, but </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">not limited to, structured notes, credit linked notes and participation notes, or other instruments evidencing interests </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in special purpose vehicles, trusts, or other entities that hold or represent interests in fixed-income securities) and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">floating rate securities (such as bank loans).</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may seek to provide exposure to the investment returns of real assets, that trade in the commodity markets </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">through investment in commodity-linked derivative instruments and investment vehicles, such as exchange-traded </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">funds, that invest in commodities and are designed to provide investment exposure to physical commodities. The Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">expects to gain exposure to commodity markets by investing up to 25% of its total assets, inclusive of leverage, in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">BlackRock Cayman Tactical Opportunities Fund, Ltd. (the “Subsidiary”), a wholly owned subsidiary of the Fund formed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in the Cayman Islands, which invests primarily in commodity-related instruments. The Subsidiary may also hold cash </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and invest in other instruments, including fixed income securities, either as investments or to serve as margin or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">collateral for the Subsidiary’s derivative positions. The Subsidiary (unlike the Fund) may invest without limitation in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commodity-related instruments. However, the Subsidiary is otherwise subject to the same fundamental, non-fundamental</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> and certain other investment restrictions as the Fund.</span></div> You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Derivatives Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund’s use of derivatives may increase its costs, reduce the Fund’s returns and/or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">increase volatility. Derivatives involve significant risks, including:</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Leverage Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund’s use of derivatives can magnify the Fund’s gains and losses. Relatively small market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">movements may result in large changes in the value of a derivatives position and can result in losses that greatly </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exceed the amount originally invested.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Market Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Some derivatives are more sensitive to interest rate changes and market price fluctuations than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other securities. The Fund could also suffer losses related to its derivatives positions as a result of unanticipated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market movements, which losses are potentially unlimited. Finally, BlackRock may not be able to predict correctly </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the direction of securities prices, interest rates and other economic factors, which could cause the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">derivatives positions to lose value.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Counterparty Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Derivatives are also subject to counterparty risk, which is the risk that the other party in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">transaction will be unable or unwilling to fulfill its contractual obligation, and the related risks of having concentrated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposure to such a counterparty.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Illiquidity Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The possible lack of a liquid secondary market for derivatives and the resulting inability of the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to sell or otherwise close a derivatives position could expose the Fund to losses and could make derivatives more </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">difficult for the Fund to value accurately.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Operational Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The use of derivatives includes the risk of potential operational issues, including documentation </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issues, settlement issues, systems failures, inadequate controls and human error.</span></div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Legal Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">enforceability of a contract.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Volatility and Correlation Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Volatility is defined as the characteristic of a security, an index or a market to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fluctuate significantly in price within a short time period. A risk of the Fund’s use of derivatives is that the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fluctuations in their values may not correlate with the overall securities markets.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Valuation Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Valuation for derivatives may not be readily available in the market. Valuation may be more difficult </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in times of market turmoil since many investors and market makers may be reluctant to purchase complex </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">instruments or quote prices for them.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Hedging Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Hedges are sometimes subject to imperfect matching between the derivative and the underlying </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security, and there can be no assurance that the Fund’s hedging transactions will be effective. The use of hedging </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may result in certain adverse tax consequences.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Tax Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Certain aspects of the tax treatment of derivative instruments, including swap agreements and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commodity-linked derivative instruments, are currently unclear and may be affected by changes in legislation, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">regulations or other legally binding authority. Such treatment may be less favorable than that given to a direct </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment in an underlying asset and may adversely affect the timing, character and amount of income the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">realizes from its investments.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Equity Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Stock markets are volatile. The price of equity securities fluctuates based on changes in a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">company’s financial condition and overall market and economic conditions.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Debt Securities Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Debt securities, such as bonds, involve risks, such as credit risk, interest rate risk, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">extension risk, and prepayment risk, each of which is described in further detail below:</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Credit Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Credit risk refers to the possibility that the issuer of a debt security (i.e., the borrower) will not be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">able to make payments of interest and principal when due. Changes in an issuer’s credit rating or the market’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">perception of an issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">degree of credit risk depends on both the financial condition of the issuer and the terms of the obligation.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Interest Rate Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The market value of bonds and other fixed-income securities changes in response to interest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">rate changes and other factors. Interest rate risk is the risk that prices of bonds and other fixed-income securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">will increase as interest rates fall and decrease as interest rates rise.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may be subject to a greater risk of rising interest rates during a period of low interest rates. For example, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">if interest rates increase by 1%, assuming a current portfolio duration of ten years, and all other factors being </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">equal, the value of the Fund’s investments would be expected to decrease by 10%. (Duration is a measure of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">price sensitivity of a debt security or portfolio of debt securities to relative changes in interest rates.) The magnitude </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of these fluctuations in the market price of bonds and other fixed-income securities is generally greater for those </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities with longer maturities. Fluctuations in the market price of the Fund’s investments will not affect interest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">income derived from instruments already owned by the Fund, but will be reflected in the Fund’s net asset value. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund may lose money if short-term or long-term interest rates rise sharply in a manner not anticipated by Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">management.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">To the extent the Fund invests in debt securities that may be prepaid at the option of the obligor (such as mortgage-backed</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> securities), the sensitivity of such securities to changes in interest rates may increase (to the detriment of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund) when interest rates rise. Moreover, because rates on certain floating rate debt securities typically reset </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">only periodically, changes in prevailing interest rates (and particularly sudden and significant changes) can be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">expected to cause some fluctuations in the net asset value of the Fund to the extent that it invests in floating rate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">debt securities.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">These basic principles of bond prices also apply to U.S. Government securities. A security backed by the “full faith </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and credit” of the U.S. Government is guaranteed only as to its stated interest rate and face value at maturity, not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">its current market price. Just like other fixed-income securities, government-guaranteed securities will fluctuate in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">value when interest rates change.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">A general rise in interest rates has the potential to cause investors to move out of fixed-income securities on a large </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">scale, which may increase redemptions from funds that hold large amounts of fixed-income securities. Heavy </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">redemptions could cause the Fund to sell assets at inopportune times or at a loss or depressed value and could </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">hurt the Fund’s performance.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Extension Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — When interest rates rise, certain obligations will be paid off by the obligor more slowly than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">anticipated, causing the value of these obligations to fall.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Prepayment Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — When interest rates fall, certain obligations will be paid off by the obligor more quickly than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">originally anticipated, and the Fund may have to invest the proceeds in securities with lower yields.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div> <div style="clear: both; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Allocation Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund’s ability to achieve its investment objective depends upon BlackRock’s skill in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">determining the Fund’s strategic asset class allocation and in selecting the best mix of underlying funds and direct </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments. There is a risk that BlackRock’s evaluations and assumptions regarding asset classes or underlying </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">funds may be incorrect in view of actual market conditions.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Collateralized Debt Obligations Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— In addition to the typical risks associated with fixed-income securities and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">asset-backed securities, CDOs, including collateralized loan obligations, carry additional risks including, but not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other payments; (ii) the risk that the collateral may default or decline in value or be downgraded, if rated by a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">nationally recognized statistical rating organization; (iii) the Fund may invest in tranches of CDOs that are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">subordinate to other tranches; (iv) the structure and complexity of the transaction and the legal documents could </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">lead to disputes among investors regarding the characterization of proceeds; (v) the investment return achieved by </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund could be significantly different than those predicted by financial models; (vi) the lack of a readily available </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">secondary market for CDOs; (vii) the risk of forced “fire sale” liquidation due to technical defaults such as coverage </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">test failures; and (viii) the CDO’s manager may perform poorly.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Commodities Related Investments Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Exposure to the commodities markets may subject the Fund to greater </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">volatility than investments in traditional securities. The value of commodity-linked derivative investments may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">affected by changes in overall market movements, commodity index volatility, changes in inflation, interest rates, or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">factors affecting a particular industry or commodity, such as drought, floods, weather, embargoes, tariffs and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">international economic, political and regulatory developments.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Convertible Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The market value of a convertible security performs like that of a regular debt </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition, convertible </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities are subject to the risk that the issuer will not be able to pay interest, principal or dividends when due, and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">their market value may change based on changes in the issuer’s credit rating or the market’s perception of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuer’s creditworthiness. Since it derives a portion of its value from the common stock into which it may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">converted, a convertible security is also subject to the same types of market and issuer risks that apply to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">underlying common stock, including the potential for increased volatility in the price of the convertible security.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Corporate Loans Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Commercial banks and other financial institutions or institutional investors make corporate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">loans to companies that need capital to grow or restructure. Borrowers generally pay interest on corporate loans at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">rates that change in response to changes in market interest rates such as the Secured Overnight Financing Rate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">SOFR</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">) or the prime rates of U.S. banks. As a result, the value of corporate loan investments is generally less </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposed to the adverse effects of shifts in market interest rates than investments that pay a fixed rate of interest. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The market for corporate loans may be subject to irregular trading activity and wide bid/ask spreads. In addition, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">transactions in corporate loans may settle on a delayed basis. As a result, the proceeds from the sale of corporate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">loans may not be readily available to make additional investments or to meet the Fund’s redemption obligations. To </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the extent the extended settlement process gives rise to short-term liquidity needs, the Fund may hold additional </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cash, sell investments or temporarily borrow from banks and other lenders. The corporate loans in which the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">invests are usually rated below investment grade.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Counterparty Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The counterparty to an over-the-counter derivatives contract or a borrower of the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities may be unable or unwilling to make timely principal, interest or settlement payments, or otherwise to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">honor its obligations. Any such failure to honor its obligations may cause significant losses to the Fund.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Depositary Receipts Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Depositary receipts are generally subject to the same risks as the foreign securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that they evidence or into which they may be converted. In addition to investment risks associated with the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">underlying issuer, depositary receipts expose the Fund to additional risks associated with the non-uniform terms </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that apply to depositary receipt programs, credit exposure to the depository bank and to the sponsors and other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">parties with whom the depository bank establishes the programs, currency risk and the risk of an illiquid market for </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">depositary receipts. The issuers of unsponsored depositary receipts are not obligated to disclose information that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">is, in the United States, considered material. Therefore, there may be less information available regarding these </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuers and there may not be a correlation between such information and the market value of the depositary </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">receipts. While depositary receipts provide an alternative to directly purchasing underlying foreign securities in their </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">respective markets and currencies, they continue to be subject to many of the risks associated with investing </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">directly in foreign securities, including political, economic, and currency risk.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Distressed Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Distressed securities are speculative and involve substantial risks in addition to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risks of investing in junk bonds. The Fund will generally not receive interest payments on the distressed securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and may incur costs to protect its investment. In addition, distressed securities involve the substantial risk that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">principal will not be repaid. These securities may present a substantial risk of default or may be in default at the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">time of investment. The Fund may incur additional expenses to the extent it is required to seek recovery upon a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">default in the payment of principal of or interest on its portfolio holdings. In any reorganization or liquidation </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">proceeding relating to a portfolio company, the Fund may lose its entire investment or may be required to accept </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cash or securities with a value less than its original investment. Distressed securities and any securities received in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">an exchange for such securities may be subject to restrictions on resale.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Dollar Rolls Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Dollar rolls involve the risk that the market value of the securities that the Fund is committed to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">buy may decline below the price of the securities the Fund has sold. These transactions may involve leverage.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Emerging Markets Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Emerging markets are riskier than more developed markets because they tend to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">develop unevenly and may never fully develop. Investments in emerging markets may be considered speculative. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Emerging markets are more likely to experience hyperinflation and currency devaluations, which adversely affect </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">returns to U.S. investors. In addition, many emerging financial markets have far lower trading volumes and less </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">liquidity than developed markets.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Foreign Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Foreign investments often involve special risks not present in U.S. investments that can </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">increase the chances that the Fund will lose money. These risks include:</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; margin-left: 12pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 493.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund generally holds its foreign securities and cash in foreign banks and securities depositories, which may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">be recently organized or new to the foreign custody business and may be subject to only limited or no regulatory </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">oversight.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; margin-left: 12pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 493.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Changes in foreign currency exchange rates can affect the value of the Fund’s portfolio.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; margin-left: 12pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 493.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The economies of certain foreign markets may not compare favorably with the economy of the United States with </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">respect to such issues as growth of gross national product, reinvestment of capital, resources and balance of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">payments position.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; margin-left: 12pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 493.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The governments of certain countries, or the U.S. Government with respect to certain countries, may prohibit or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">impose substantial restrictions through capital controls and/or sanctions on foreign investments in the capital </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">markets or certain industries in those countries, which may prohibit or restrict the ability to own or transfer </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">currency, securities, derivatives or other assets.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; margin-left: 12pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 493.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Many foreign governments do not supervise and regulate stock exchanges, brokers and the sale of securities to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the same extent as does the United States and may not have laws to protect investors that are comparable to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">U.S. securities laws.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; margin-left: 12pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 493.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Settlement and clearance procedures in certain foreign markets may result in delays in payment for or delivery of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities not typically associated with settlement and clearance of U.S. investments.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; margin-left: 12pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 493.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund’s claims to recover foreign withholding taxes may not be successful, and if the likelihood of recovery of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">foreign withholding taxes materially decreases, due to, for example, a change in tax regulation or approach in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">foreign country, accruals in the Fund’s net asset value for such refunds may be written down partially or in full, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">which will adversely affect the Fund’s net asset value.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">High Portfolio Turnover Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund may engage in active and frequent trading of its portfolio securities. High </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">portfolio turnover (more than 100%) may result in increased transaction costs to the Fund, including brokerage </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commissions, dealer mark-ups and other transaction costs on the sale of the securities and on reinvestment in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other securities. The sale of Fund portfolio securities may result in the realization and/or distribution to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders of higher capital gains or losses as compared to a fund with less active trading policies. These effects </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of higher than normal portfolio turnover may adversely affect Fund performance.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">High Yield Bonds Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Although junk bonds generally pay higher rates of interest than investment grade bonds, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">junk bonds are high risk investments that are considered speculative and may cause income and principal losses </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for the Fund.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Illiquid Investments Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund may not acquire any illiquid investment if, immediately after the acquisition, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund would have invested more than 15% of its net assets in illiquid investments. An illiquid investment is any </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">calendar days or less without the sale or disposition significantly changing the market value of the investment. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Subsidiary will also limit its investment in illiquid investments to 15% of its net assets. In applying the illiquid </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments restriction to the Fund, the Fund’s investment in the Subsidiary is considered to be liquid. Liquid </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments may become illiquid after purchase by the Fund, particularly during periods of market turmoil. There can </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">be no assurance that a security or instrument that is deemed to be liquid when purchased will continue to be liquid </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for as long as it is held by the Fund, and any security or instrument held by the Fund may be deemed an illiquid </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment pursuant to the Fund’s liquidity risk management program. The Fund’s illiquid investments may reduce </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the returns of the Fund because it may be difficult to sell the illiquid investments at an advantageous time or price. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">In addition, if the Fund is limited in its ability to dispose of illiquid investments during periods when shareholders </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are redeeming or selling their shares or the Fund’s net assets otherwise shrink, the Fund will need to dispose of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">liquid securities to meet redemption requests and illiquid securities will become a larger portion of the Fund’s </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">holdings. An investment may be illiquid due to, among other things, the reduced number and capacity of traditional </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market participants to make a market in fixed-income securities or the lack of an active trading market. To the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">extent that the Fund’s principal investment strategies involve derivatives or securities with substantial market and/or</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> credit risk, the Fund will tend to have greater exposure to the risks associated with illiquid investments. Illiquid </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments may be harder to value, especially in changing markets, and if the Fund is forced to sell these </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments to meet redemption requests or for other cash needs, the Fund may suffer a loss. This may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">magnified in a rising interest rate environment or other circumstances where investor redemptions or sales of Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares may be higher than normal. In addition, when there is illiquidity in the market for certain securities, the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund, due to limitations on illiquid investments, may be subject to purchase and sale restrictions.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Indexed and Inverse Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Indexed and inverse securities provide a potential return based on a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">particular index of value or interest rates. The Fund’s return on these securities will be subject to risk with respect </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to the value of the particular index. These securities are subject to leverage risk and correlation risk. Certain </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">indexed and inverse securities have greater sensitivity to changes in interest rates or index levels than other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities, and the Fund’s investment in such instruments may decline significantly in value if interest rates or index </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">levels move in a way Fund management does not anticipate.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Inflation-Indexed Bonds Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The principal value of an investment in the Fund is not protected or otherwise </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">guaranteed by virtue of any investments by the Fund in inflation-indexed bonds. The value of inflation-indexed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities generally fluctuates with changes in real interest rates, decreasing when real interest rates rise and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">increasing when real interest rates fall. Real interest rates represent nominal (or stated) interest rates minus the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">inflation rates. If the Fund purchases TIPS in the secondary market and the bonds’ principal values previously were </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">adjusted upward, but then there is a period of declining inflation rates, the Fund may receive at maturity less than it </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">invested.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">In addition, interest payments on inflation-indexed securities generally vary up or down along with the rate of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">inflation, and inflation-indexed bonds typically have lower nominal yields than conventional fixed-rate bonds. If the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">index measuring inflation falls, the principal value of inflation-indexed bonds will be adjusted downward, and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reduced.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income, even </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">though investors do not receive their principal until maturity. Periodic adjustments for inflation to the principal </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">amount of an inflation-indexed bond may give rise to original issue discount, which will be includable in the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">gross income. Due to original issue discount, the Fund may be required to make annual distributions to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders that exceed the cash received, which may cause the Fund to liquidate certain investments when it is </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">not advantageous to do so. Also, if the principal value of an inflation-indexed bond is adjusted downward due to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">deflation, amounts previously distributed in the taxable year may be characterized in some circumstances as a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">return of capital.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Investment Style Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Under certain market conditions, growth investments have performed better during the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">later stages of economic expansion and value investments have performed better during periods of economic </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">recovery. Therefore, these investment styles may over time go in and out of favor. At times when the investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">style used by the Fund is out of favor, the Fund may underperform other equity funds that use different investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">styles.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Leverage Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Some transactions may give rise to a form of economic leverage. These transactions may include, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">among others, derivatives, and may expose the Fund to greater risk and increase its costs. The use of leverage may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to meet the applicable requirements of the Investment Company Act of 1940, as amended (the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Company Act</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">) and the rules thereunder. Increases and decreases in the value of the Fund’s portfolio will be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">magnified when the Fund uses leverage.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Market Risk and Selection Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Market risk is the risk that one or more markets in which the Fund invests will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">go down in value, including the possibility that the markets will go down sharply and unpredictably. Securities or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other investments held by the Fund may underperform the markets, the relevant indices or benchmarks, or the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities selected by other funds with similar investment objectives and investment strategies, or may otherwise </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fail to perform as intended. The value of a security or other asset may decline due to changes in general market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">conditions, economic trends or events that are not specifically related to the issuer of the security or other asset, or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">factors that affect a particular issuer or issuers, exchange, country, group of countries, region, market, industry, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">group of industries, sector or asset class. The success of the Fund’s activities could be affected by interest rates, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">availability of credit, inflation rates, economic uncertainty, changes in laws, tariffs and trade barriers, supply chain </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">disruptions, economic sanctions, currency exchange controls, and local, regional or global events such as war, acts </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of terrorism, natural and environmental disasters, the spread of infectious illness or other public health issues like </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">pandemics or epidemics, recessions, or other events.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Recent policy initiatives undertaken by the U.S. government have the potential to impact international relations, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">trade agreements and the overall regulatory environment in ways that could create uncertainty and instability in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">domestic and global markets, and could adversely affect the investment performance of the Fund. In particular, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">actions taken by the U.S. government in respect of international trade relations could lead to trade wars, increased </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">costs for imported goods, disruptions in supply chains, reduced foreign investment, and instability in regions where </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund invests.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Mid Cap Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The securities of mid cap companies generally trade in lower volumes and are generally </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">subject to greater and less predictable price changes than the securities of larger capitalization companies.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Money Market Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— If market conditions improve while the Fund has invested some or all of its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">assets in high quality money market securities, this strategy could result in reducing the potential gain from the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market upswing, thus reducing the Fund’s opportunity to achieve its investment objective.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Mortgage- and Asset-Backed Securities Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Mortgage- and asset-backed securities represent interests in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“pools” of mortgages or other assets, including consumer loans or receivables held in trust. Mortgage- and asset-</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">backed securities are subject to credit, interest rate, prepayment and extension risks. These securities also are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">subject to risk of default on the underlying mortgage or asset, particularly during periods of economic downturn. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">certain mortgage-backed securities.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Municipal Securities Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Municipal securities risks include the ability of the issuer to repay the obligation, the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">relative lack of information about certain issuers of municipal securities, and the possibility of future legislative </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">changes which could affect the market for and value of municipal securities. Budgetary constraints of local, state, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and federal governments upon which the issuers may be relying for funding may also impact municipal securities. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">These risks include:</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">General Obligation Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Timely payments depend on the issuer’s credit quality, ability to raise tax </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">revenues and ability to maintain an adequate tax base.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Revenue Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> These payments depend on the money earned by the particular facility or class of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">facilities, or the amount of revenues derived from another source.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Private Activity Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Municipalities and other public authorities issue private activity bonds to finance </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">development of industrial facilities for use by a private enterprise. The private enterprise pays the principal and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interest on the bond, and the issuer does not pledge its full faith, credit and taxing power for repayment.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Moral Obligation Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Moral obligation bonds are generally issued by special purpose public authorities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of a state or municipality. If the issuer is unable to meet its obligations, repayment of these bonds becomes a moral </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commitment, but not a legal obligation, of the state or municipality.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Municipal Notes Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Municipal notes are shorter term municipal debt obligations. If there is a shortfall in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">anticipated proceeds, the notes may not be fully repaid and the Fund may lose money.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Municipal Lease Obligations Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> In a municipal lease obligation, the issuer agrees to make payments when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">due on the lease obligation. Although the issuer does not pledge its unlimited taxing power for payment of the lease </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">obligation, the lease obligation is secured by the leased property.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Tax-Exempt Status Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The Fund and its investment manager will rely on the opinion of issuers’ bond counsel </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and, in the case of derivative securities, sponsors’ counsel, on the tax-exempt status of interest on municipal bonds </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and payments under derivative securities. Neither the Fund nor its investment manager will independently review the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">bases for those tax opinions, which may ultimately be determined to be incorrect and subject the Fund and its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders to substantial tax liabilities.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Operational and Technology Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund is directly and indirectly susceptible to operational and technology </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risks, including those related to human errors, processing errors, communication errors, systems failures, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cybersecurity incidents, and the use of artificial intelligence and machine learning (“AI”), which may result in losses </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for the Fund and its shareholders or may impair the Fund’s operations. While the Fund’s service providers are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">required to have appropriate operational, information security and cybersecurity risk management policies and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">procedures, their methods of risk management may differ from those of the Fund. Operational and technology risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for the issuers in which the Fund invests could also result in material adverse consequences for such issuers and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may cause the Fund’s investments in such issuers to lose value.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Preferred Securities Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Preferred securities may pay fixed or adjustable rates of return. Preferred securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are subject to issuer-specific and market risks applicable generally to equity securities. In addition, a company’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">preferred securities generally pay dividends only after the company makes required payments to holders of its </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">bonds and other debt. For this reason, the value of preferred securities will usually react more strongly than bonds </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and other debt to actual or perceived changes in the company’s financial condition or prospects. Preferred </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities of smaller companies may be more vulnerable to adverse developments than preferred securities of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">larger companies.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Real Estate-Related Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The main risk of real estate-related securities is that the value of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">underlying real estate may go down. Many factors may affect real estate values. These factors include both the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">general and local economies, vacancy rates, changes in rent schedules, tenant bankruptcies, the ability to re-lease </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">space under expiring leases on attractive terms, the amount of new construction in a particular area, the laws and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">regulations (including zoning, environmental and tax laws) affecting real estate and the costs of owning, maintaining </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and improving real estate. The availability of mortgage financing and changes in interest rates may also affect real </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">estate values. If the Fund’s real estate-related investments are concentrated in one geographic area or in one </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">property type, the Fund will be particularly subject to the risks associated with that area or property type. Many </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuers of real estate-related securities are highly leveraged, which increases the risk to holders of such securities. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The value of the securities the Fund buys will not necessarily track the value of the underlying investments of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuers of such securities. In addition, certain issuers of real estate-related securities may have developed or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commenced development on properties and may develop additional properties in the future. Real estate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">development involves significant risks in addition to those involved in the ownership and operation of established </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">properties. Real estate securities may have limited diversification and are, therefore, subject to risks inherent in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">operating and financing a limited number of projects. Real estate securities are also subject to heavy cash flow </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">dependency and defaults by borrowers or tenants.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">REIT Investment Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Investments in REITs involve unique risks. REITs may have limited financial resources, may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">trade less frequently and in limited volume, may engage in dilutive offerings of securities and may be more volatile </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">than other securities. REIT issuers may also fail to maintain their exemptions from investment company registration </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or fail to qualify for the “dividends paid deduction” under the Internal Revenue Code of 1986, as amended (the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“Internal Revenue Code”), which allows REITs to reduce their corporate taxable income for dividends paid to their </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Repurchase Agreements and Purchase and Sale Contracts Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — If the other party to a repurchase agreement or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">purchase and sale contract defaults on its obligation under the agreement, the Fund may suffer delays and incur </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">costs or lose money in exercising its rights under the agreement. If the seller fails to repurchase the security in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">either situation and the market value of the security declines, the Fund may lose money.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Reverse Repurchase Agreements Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Reverse repurchase agreements involve the sale of securities held by the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund with an agreement to repurchase the securities at an agreed-upon price, date and interest payment. Reverse </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">repurchase agreements involve the risk that the other party may fail to return the securities in a timely manner or at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">all. The Fund could lose money if it is unable to recover the securities and the value of the collateral held by the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund, including the value of the investments made with cash collateral, is less than the value of the securities. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">These events could also trigger adverse tax consequences for the Fund. In addition, reverse repurchase agreements </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">involve the risk that the interest income earned in the investment of the proceeds will be less than the interest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">expense.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Risk of Investing in the United States </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Certain changes in the U.S. economy, such as when the U.S. economy </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">weakens or when its financial markets decline, may have an adverse effect on the securities to which the Fund has </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposure.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Risks of Loan Assignments and Participations </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— As the purchaser of an assignment, the Fund typically succeeds </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to all the rights and obligations of the assigning institution and becomes a lender under the credit agreement with </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">respect to the debt obligation; however, the Fund may not be able unilaterally to enforce all rights and remedies </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">under the loan and with regard to any associated collateral. Because assignments may be arranged through private </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">negotiations between potential assignees and potential assignors, the rights and obligations acquired by the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">as the purchaser of an assignment may differ from, and be more limited than, those held by the assigning lender. In </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">addition, if the loan is foreclosed, the Fund could become part owner of any collateral and could bear the costs and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">liabilities of owning and disposing of the collateral. The Fund may be required to pass along to a purchaser that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">buys a loan from the Fund by way of assignment a portion of any fees to which the Fund is entitled under the loan. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">borrower with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and the Fund may not directly benefit from any collateral supporting the loan in which it has purchased the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">participation. As a result, the Fund will be subject to the credit risk of both the borrower and the lender that is </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">selling the participation. In the event of the insolvency of the lender selling a participation, the Fund may be treated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">as a general creditor of the lender and may not benefit from any set-off between the lender and the borrower.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Second Lien Loans Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Second lien loans generally are subject to similar risks as those associated with </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments in senior loans. Because second lien loans are subordinated or unsecured and thus lower in priority of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">payment to senior loans, they are subject to the additional risk that the cash flow of the borrower and property </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securing the loan or debt, if any, may be insufficient to meet scheduled payments after giving effect to the senior </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">secured obligations of the borrower.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Senior Loans Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — There is less readily available, reliable information about most senior loans than is the case </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for many other types of securities. An economic downturn generally leads to a higher non-payment rate, and a senior </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">loan may lose significant value before a default occurs. Moreover, any specific collateral used to secure a senior </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">loan may decline in value or become illiquid, which would adversely affect the senior loan’s value. No active trading </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market may exist for certain senior loans, which may impair the ability of the Fund to realize full value in the event </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of the need to sell a senior loan and which may make it difficult to value senior loans. Although senior loans in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">which the Fund will invest generally will be secured by specific collateral, there can be no assurance that liquidation </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of such collateral would satisfy the borrower’s obligation in the event of non-payment of scheduled interest or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">principal or that such collateral could be readily liquidated. To the extent that a senior loan is collateralized by stock </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in the borrower or its subsidiaries, such stock may lose all of its value in the event of the bankruptcy of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">borrower. Uncollateralized senior loans involve a greater risk of loss. The senior loans in which the Fund invests are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">usually rated below investment grade.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Short Sales and Short Position Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Because making short sales or taking short positions in securities that it </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">does not own would expose the Fund to the risks associated with those securities, such short sales or positions </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">involve speculative exposure risk. In such situations, the Fund will incur a loss as a result of a short sale or position </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">if the price of the reference instrument increases after the Fund entered into the short sale or position. The Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may engage in short sales and gain short exposure through certain derivative instruments, such as futures, options </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or swaps. The Fund may lose more money than the actual cost of a short sale or position and the potential losses </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are theoretically unlimited on a short sale or position.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Small Cap and Emerging Growth Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Small cap or emerging growth companies may have limited </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">product lines or markets. They may be less financially secure than larger, more established companies. They may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">depend on a more limited management group than larger capitalized companies.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Sovereign Debt Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Sovereign debt instruments are subject to the risk that a governmental entity may delay or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">refuse to pay interest or repay principal on its sovereign debt, due, for example, to cash flow problems, insufficient </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">foreign currency reserves, political considerations, the relative size of the governmental entity’s debt position in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">relation to the economy or the failure to put in place economic reforms required by the International Monetary Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or other multilateral agencies.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Structured Notes Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Structured notes and other related instruments purchased by the Fund are generally </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">privately negotiated debt obligations where the principal and/or interest is determined by reference to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">performance of a specific asset, benchmark asset, market or interest rate (“reference measure”). The purchase of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">structured notes exposes the Fund to the credit risk of the issuer of the structured product. Structured notes may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">be leveraged, increasing the volatility of each structured note’s value relative to the change in the reference </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">measure. Structured notes may also be less liquid and more difficult to price accurately than less complex </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities and instruments or more traditional debt securities.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Structured Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Because structured securities of the type in which the Fund may invest typically </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">involve no credit enhancement, their credit risk generally will be equivalent to that of the underlying instruments, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">index or reference obligation and will also be subject to counterparty risk. The Fund may have the right to receive </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">payments only from the structured security, and generally does not have direct rights against the issuer or the entity </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that sold the assets to be securitized. In addition to the general risks associated with debt securities discussed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">herein, structured securities carry additional risks, including, but not limited to: the possibility that distributions </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">from collateral securities will not be adequate to make interest or other payments; the quality of the collateral may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">decline in value or default; and the possibility that the structured securities are subordinate to other classes. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund is permitted to invest in a class of structured securities that is either subordinated or unsubordinated to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">right of payment of another class. Subordinated structured securities typically have higher yields and present </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">greater risks than unsubordinated structured securities. Structured securities are typically sold in private placement </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">transactions, and there currently is no active trading market for structured securities. Structured securities are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">based upon the movement of one or more factors, including currency exchange rates, interest rates, reference </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">bonds and stock indices, and changes in interest rates and impact of these factors may cause significant price </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fluctuations. Additionally, changes in the reference instrument or security may cause the interest rate on the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">structured security to be reduced to zero. Certain issuers of such structured securities may be deemed to be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“investment companies” as defined in the Investment Company Act. As a result, the Fund’s investment in such </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities may be limited by certain investment restrictions contained in the Investment Company Act.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Subsidiary Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — By investing in the Subsidiary, the Fund is indirectly exposed to the risks associated with the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Subsidiary’s investments. The commodity-related instruments held by the Subsidiary are generally similar to those </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that are permitted to be held by the Fund and are subject to the same risks that apply to similar investments if held </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">directly by the Fund (see “Commodities Related Investments Risk” above). There can be no assurance that the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment objective of the Subsidiary will be achieved. The Subsidiary is not registered under the Investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Company Act, and, unless otherwise noted in this prospectus, is not subject to all the investor protections of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Investment Company Act. However, the Fund wholly owns and controls the Subsidiary, and the Fund and the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Subsidiary are both managed by BlackRock, making it unlikely that the Subsidiary will take action contrary to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interests of the Fund and its shareholders. The Board has oversight responsibility for the investment activities of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund, including its investment in the Subsidiary, and the Fund’s role as sole shareholder of the Subsidiary. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Subsidiary is subject to the same investment restrictions and limitations, and follows the same compliance policies </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and procedures, as the Fund, except that the Subsidiary may invest without limitation in commodity-related </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">instruments. Changes in the laws of the United States and/or the Cayman Islands could result in the inability of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund and/or the Subsidiary to operate as described in this prospectus and the SAI and could adversely affect the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Supranational Entities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund may invest in obligations issued or guaranteed by the World Bank. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">government members, or “stockholders,” usually make initial capital contributions to the World Bank and in many </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cases are committed to make additional capital contributions if the World Bank is unable to repay its borrowings. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">There is no guarantee that one or more stockholders of the World Bank will continue to make any necessary </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">additional capital contributions. If such contributions are not made, the entity may be unable to pay interest or repay </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">principal on its debt securities, and the Fund may lose money on such investments.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Tender Option Bonds and Related Securities Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The Fund’s participation in tender option bond transactions </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may reduce the Fund’s returns and/or increase volatility. Investments in tender option bond transactions expose the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund to counterparty risk and leverage risk. An investment in a tender option bond transaction typically will involve </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">greater risk than an investment in a municipal fixed rate security, including the risk of loss of principal. Distributions </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">on residual inverse floating rate interests (“TOB Residuals”) will bear an inverse relationship to short-term municipal </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security interest rates. Distributions on TOB Residuals paid to the Fund will be reduced or, in the extreme, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">eliminated as short-term municipal interest rates rise and will increase when short-term municipal interest rates </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fall. TOB Residuals generally will underperform the market for fixed rate municipal securities in a rising interest rate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">environment. The Fund may invest in special purpose entities (“TOB Trusts”) on either a non-recourse or recourse </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">basis. If the Fund invests in a TOB Trust on a recourse basis, it could suffer losses in excess of the value of its TOB </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Residuals.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">U.S. Government Mortgage-Related Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— There are a number of important differences among the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">agencies and instrumentalities of the U.S. Government that issue mortgage-related securities and among the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities that they issue. Mortgage-related securities guaranteed by the Government National Mortgage </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Association (</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">GNMA</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Ginnie Mae</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">) are guaranteed as to the timely payment of principal and interest by GNMA </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and such guarantee is backed by the full faith and credit of the United States. GNMA securities also are supported </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">by the right of GNMA to borrow funds from the U.S. Treasury to make payments under its guarantee. Mortgage-</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">related securities issued by Fannie Mae or Freddie Mac are solely the obligations of Fannie Mae or Freddie Mac, as </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the case may be, and are not backed by or entitled to the full faith and credit of the United States but are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">supported by the right of the issuer to borrow from the Treasury.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">U.S. Government Obligations Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Certain securities in which the Fund may invest, including securities issued by </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">certain U.S. Government agencies and U.S. Government sponsored enterprises, are not guaranteed by the U.S. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Government or supported by the full faith and credit of the United States. In addition, circumstances could arise </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that could prevent the timely payment of interest or principal on U.S. Government obligations, such as reaching the</span> <br/><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">legislative “debt ceiling.” Such non-payment could result in losses to the Fund and substantial negative </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">consequences for the U.S. economy and the global financial system.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Variable and Floating Rate Instrument Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Variable and floating rate securities provide for periodic adjustment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in the interest rate paid on the securities. Securities with floating or variable interest rates can be less sensitive to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interest rate changes than securities with fixed interest rates, but may decline in value if their coupon rates do not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reset as high, or as quickly, as comparable market interest rates, and generally carry lower yields than fixed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities of the same maturity. These securities will not generally increase in value if interest rates decline. A </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">decline in interest rates may result in a reduction in income received from variable and floating rate securities held </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">by the Fund and may adversely affect the value of the Fund’s shares. These securities may be subject to greater </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">illiquidity risk than other fixed income securities, meaning the absence of an active market for these securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">could make it difficult for the Fund to dispose of them at any given time. Floating rate securities generally are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">subject to legal or contractual restrictions on resale, may trade infrequently, and their value may be impaired when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund needs to liquidate such loans. Benchmark interest rates may not accurately track market interest rates. </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Although floating rate securities are less sensitive to interest rate risk than fixed-rate securities, they are subject to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">credit risk and default risk, which could impair their value.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Warrants Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— If the price of the underlying stock does not rise above the exercise price before the warrant </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">expires, the warrant generally expires without any value and the Fund will lose any amount it paid for the warrant. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Thus, investments in warrants may involve substantially more risk than investments in common stock. Warrants </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may trade in the same markets as their underlying stock; however, the price of the warrant does not necessarily </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">move with the price of the underlying stock.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Zero Coupon Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> While interest payments are not made on such securities, holders of such </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities are deemed to have received income (“phantom income”) annually, notwithstanding that cash may not be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">received currently. The effect of owning instruments that do not make current interest payments is that a fixed yield </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">is earned not only on the original investment but also, in effect, on all discount accretion during the life of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">obligations. This implicit reinvestment of earnings at a fixed rate eliminates the risk of being unable to invest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">distributions at a rate as high as the implicit yield on the zero coupon bond, but at the same time eliminates the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">holder’s ability to reinvest at higher rates in the future. For this reason, some of these securities may be subject to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">substantially greater price fluctuations during periods of changing market interest rates than are comparable </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities that pay interest currently. Longer term zero coupon bonds are more exposed to interest rate risk than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shorter term zero coupon bonds. These investments benefit the issuer by mitigating its need for cash to meet debt </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">service, but also require a higher rate of return to attract investors who are willing to defer receipt of cash.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> Performance Information <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Effective May 15, 2012 through January 28, 2016, the Fund changed its investment strategy to invest a significant </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">portion of its assets in other investment companies and directly in securities. Performance shown below for this time </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">period is based on the investment strategy utilized by the Fund during the time period.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The information shows you how the Fund’s performance has varied year by year and provides some indication of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risks of investing in the Fund. The table compares the Fund’s performance to that of the MSCI All Country World Index </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(Net). The table also compares the Fund’s performance to the Bloomberg 1-3 Year Treasury Bond Index, the ICE BofA </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">3-Month U.S. Treasury Bill Index and a customized weighted index comprised of 25% MSCI All Country World Index </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(Net)/75% Bloomberg 1-3 Year Treasury Bond Index, each of which is relevant to the Fund because it has </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">characteristics similar to the Fund’s investment strategy. To the extent that dividends and distributions have been paid </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">by the Fund, the performance information for the Fund in the chart and table assumes reinvestment of the dividends </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and distributions. As with all such investments, past performance (before and after taxes) is not an indication of future </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">results. Sales charges are not reflected in the bar chart. If they were, returns would be less than those shown. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">However, the table includes all applicable fees and sales charges. If BlackRock and its affiliates had not waived or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reimbursed certain Fund expenses during these periods, the Fund’s returns would have been lower. Updated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">information on the Fund’s performance, including its current net asset value, can be obtained by visiting </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">www.blackrock.com</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> or can be obtained by phone at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(800) 882-0052</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">.</span></div> The information shows you how the Fund’s performance has varied year by year and provides some indication of the risks of investing in the Fund. The table compares the Fund’s performance to that of the MSCI All Country World Index (Net). The table also compares the Fund’s performance to the Bloomberg 1-3 Year Treasury Bond Index, the ICE BofA 3-Month U.S. Treasury Bill Index and a customized weighted index comprised of 25% MSCI All Country World Index (Net)/75% Bloomberg 1-3 Year Treasury Bond Index, each of which is relevant to the Fund because it has characteristics similar to the Fund’s investment strategy. As with all such investments, past performance (before and after taxes) is not an indication of future results. Sales charges are not reflected in the bar chart. If they were, returns would be less than those shown. However, the table includes all applicable fees and sales charges. www.blackrock.com (800) 882-0052 Investor A Shares ANNUAL TOTAL RETURNS BlackRock Tactical Opportunities Fund As of 12/31 <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">During the ten-year period shown in the bar chart, the highest return for a quarter was 7.01% (quarter ended </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">March 31, 2024) and the lowest return for a quarter was -2.41% (quarter ended December 31, 2018). The year-to-date return</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> as of June 30, 2026 was 9.21%.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> highest return 0.0701 2024-03-31 lowest return -0.0241 2018-12-31 year-to-date return 2026-06-30 0.0921 For the periods ended 12/31/25Average Annual Total Returns 0.0058 0.0408 0.0401 0.0058 0.0291 0.0282 0.0035 0.0261 0.0261 0.0443 0.0446 0.0397 0.0646 0.0550 0.0487 0.2234 0.1119 0.1172 0.0517 0.0175 0.0183 0.0418 0.0317 0.0218 0.0932 0.0421 0.0443 <div style="margin-top: 12pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Investor A Shares only, and the after-tax returns for Investor C and Institutional Shares will vary.</span></div> After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Investor A Shares only, and the after-tax returns for Investor C and Institutional Shares will vary. Fund OverviewKey Facts About BlackRock Tactical Opportunities Fund Investment Objective <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The investment objective of BlackRock Tactical Opportunities Fund (the “Fund”), a series of BlackRock Funds</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">SM </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Trust</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">), is to seek total return.</span></div> Fees and Expenses of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This table describes the fees and expenses that you may pay if you buy, hold and sell Class K Shares of the Fund. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Amounts in the table are rounded to the nearest basis point, which in some cases may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">0.00.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">You may pay other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">fees, such as brokerage commissions and other fees to your financial professional or your selected securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">dealer, broker, investment adviser, service provider or industry professional (including BlackRock Advisors, LLC </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">(</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">BlackRock</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">) and its affiliates) (each, a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">Financial Intermediary</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">), which are not reflected in the table and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">example below.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0050 0 0.0009 0.0001 0.0060 -0.0001 0.0059 June 30, 2028 The Total Annual Fund Operating Expenses does not correlate to the ratio of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which does not include Acquired Fund Fees and Expenses. Example: <div style="line-height: 10.695pt; margin-top: 0.0pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or lower, based on these assumptions your costs would be:</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> 60 191 334 749 Portfolio Turnover: <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">83</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">% of the average value of its portfolio.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> 0.83 Principal Investment Strategies of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund uses a macro asset allocation strategy, investing varying percentages of its portfolio in global stocks, bonds, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">money market instruments, foreign currencies and cash. The Fund has wide flexibility in the relative weightings given </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to each category. The Fund takes both long and short positions within and across each category, which the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">expects to result in a lower correlation to the equity or fixed-income markets than if the Fund invested in either such </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market in its entirety.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">In selecting investments, the Fund management team will identify global macro opportunities and position the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">using a combination of individual securities and derivatives.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund uses a combination of a systematic (i.e., rule-based) investment process and a discretionary investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">process to allocate assets. The systematic process compares data across similar assets to rank expected return </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">opportunities and to appropriately scale the Fund’s exposure. The discretionary process derives investment themes </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">based on research and analysis of macro-economic data and seeks exposures to these themes.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">With respect to its equity investments, the Fund may invest in individual equity securities to an unlimited extent. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund may invest in common stock, preferred stock, non-convertible preferred stock and depositary receipts. The Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may invest in securities of both U.S. and non-U.S. issuers without limit, which can be U.S. dollar-based or non-U.S. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">dollar-based and may be currency hedged or unhedged. The Fund may invest in securities of companies of any market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">capitalization. The Fund may also invest in securities convertible into common stock.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">With respect to its fixed-income investments, the Fund may invest in individual fixed-income securities to an unlimited </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">extent. The Fund may invest in a portfolio of fixed-income securities such as corporate bonds and notes, commercial </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and residential mortgage-backed securities (bonds that are backed by a mortgage loan or pools of loans secured </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">either by commercial property or residential mortgages, as applicable), collateralized mortgage obligations (bonds that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are backed by cash flows from pools of mortgages and may have multiple classes with different payment rights and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">protections), collateralized debt obligations (“CDOs”), asset-backed securities, convertible securities, debt obligations </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of governments and their sub-divisions (including those of non-U.S. governments), other floating or variable rate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">obligations, municipal obligations and zero coupon debt securities. The Fund may also invest a significant portion of its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">assets in non-investment grade bonds (“junk” bonds or distressed securities), non-investment grade bank loans, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">foreign bonds (both U.S. dollar- and non-U.S. dollar-denominated) and bonds of emerging market issuers. The Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may invest in non-U.S. dollar-denominated bonds on a currency hedged or unhedged basis.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">With respect to its cash investments, the Fund may hold high quality money market securities, including short term </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">U.S. Government securities, U.S. Government agency securities, securities issued by U.S. Government-sponsored </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">enterprises and U.S. Government instrumentalities, bank obligations, commercial paper, including asset-backed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commercial paper, corporate notes and repurchase agreements. The Fund may invest a significant portion of its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">assets in money market funds, including those advised by BlackRock or its affiliates.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may invest in derivatives, including, but not limited to, interest rate, total return and credit default swaps, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">options, futures, options on futures and swaps and foreign currency transactions (including swaps), for hedging </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">purposes, as well as to increase the return on its portfolio investments. The Fund may seek to obtain market exposure </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to the securities in which it primarily invests by entering into a series of purchase and sale contracts or by using other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment techniques (such as reverse repurchase agreements or dollar rolls). The Fund may also use forward foreign </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">currency exchange contracts (obligations to buy or sell a currency at a set rate in the future) to hedge against </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">movement in the value of non-U.S. currencies.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may also invest in indexed and inverse floating rate securities.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may invest in U.S. and non-U.S. real estate investment trusts (“REITs”), structured products (including, but </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">not limited to, structured notes, credit linked notes and participation notes, or other instruments evidencing interests </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in special purpose vehicles, trusts, or other entities that hold or represent interests in fixed-income securities) and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">floating rate securities (such as bank loans).</span></div> <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may seek to provide exposure to the investment returns of real assets, that trade in the commodity markets </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">through investment in commodity-linked derivative instruments and investment vehicles, such as exchange-traded </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">funds, that invest in commodities and are designed to provide investment exposure to physical commodities. The Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">expects to gain exposure to commodity markets by investing up to 25% of its total assets, inclusive of leverage, in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">BlackRock Cayman Tactical Opportunities Fund, Ltd. (the “Subsidiary”), a wholly owned subsidiary of the Fund formed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in the Cayman Islands, which invests primarily in commodity-related instruments. The Subsidiary may also hold cash </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and invest in other instruments, including fixed income securities, either as investments or to serve as margin or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">collateral for the Subsidiary’s derivative positions. The Subsidiary (unlike the Fund) may invest without limitation in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commodity-related instruments. However, the Subsidiary is otherwise subject to the same fundamental, non-fundamental</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> and certain other investment restrictions as the Fund.</span></div> You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Derivatives Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund’s use of derivatives may increase its costs, reduce the Fund’s returns and/or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">increase volatility. Derivatives involve significant risks, including:</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Leverage Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund’s use of derivatives can magnify the Fund’s gains and losses. Relatively small market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">movements may result in large changes in the value of a derivatives position and can result in losses that greatly </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exceed the amount originally invested.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Market Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Some derivatives are more sensitive to interest rate changes and market price fluctuations than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other securities. The Fund could also suffer losses related to its derivatives positions as a result of unanticipated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market movements, which losses are potentially unlimited. Finally, BlackRock may not be able to predict correctly </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the direction of securities prices, interest rates and other economic factors, which could cause the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">derivatives positions to lose value.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Counterparty Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Derivatives are also subject to counterparty risk, which is the risk that the other party in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">transaction will be unable or unwilling to fulfill its contractual obligation, and the related risks of having concentrated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposure to such a counterparty.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Illiquidity Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The possible lack of a liquid secondary market for derivatives and the resulting inability of the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to sell or otherwise close a derivatives position could expose the Fund to losses and could make derivatives more </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">difficult for the Fund to value accurately.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Operational Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The use of derivatives includes the risk of potential operational issues, including documentation </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issues, settlement issues, systems failures, inadequate controls and human error.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Legal Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">enforceability of a contract.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Volatility and Correlation Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Volatility is defined as the characteristic of a security, an index or a market to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fluctuate significantly in price within a short time period. A risk of the Fund’s use of derivatives is that the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fluctuations in their values may not correlate with the overall securities markets.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Valuation Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Valuation for derivatives may not be readily available in the market. Valuation may be more difficult </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in times of market turmoil since many investors and market makers may be reluctant to purchase complex </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">instruments or quote prices for them.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Hedging Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Hedges are sometimes subject to imperfect matching between the derivative and the underlying </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security, and there can be no assurance that the Fund’s hedging transactions will be effective. The use of hedging </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may result in certain adverse tax consequences.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Tax Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Certain aspects of the tax treatment of derivative instruments, including swap agreements and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commodity-linked derivative instruments, are currently unclear and may be affected by changes in legislation, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">regulations or other legally binding authority. Such treatment may be less favorable than that given to a direct </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment in an underlying asset and may adversely affect the timing, character and amount of income the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">realizes from its investments.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Equity Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Stock markets are volatile. The price of equity securities fluctuates based on changes in a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">company’s financial condition and overall market and economic conditions.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Debt Securities Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Debt securities, such as bonds, involve risks, such as credit risk, interest rate risk, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">extension risk, and prepayment risk, each of which is described in further detail below:</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Credit Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Credit risk refers to the possibility that the issuer of a debt security (i.e., the borrower) will not be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">able to make payments of interest and principal when due. Changes in an issuer’s credit rating or the market’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">perception of an issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">degree of credit risk depends on both the financial condition of the issuer and the terms of the obligation.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Interest Rate Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The market value of bonds and other fixed-income securities changes in response to interest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">rate changes and other factors. Interest rate risk is the risk that prices of bonds and other fixed-income securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">will increase as interest rates fall and decrease as interest rates rise.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may be subject to a greater risk of rising interest rates during a period of low interest rates. For example, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">if interest rates increase by 1%, assuming a current portfolio duration of ten years, and all other factors being </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">equal, the value of the Fund’s investments would be expected to decrease by 10%. (Duration is a measure of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">price sensitivity of a debt security or portfolio of debt securities to relative changes in interest rates.) The magnitude </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of these fluctuations in the market price of bonds and other fixed-income securities is generally greater for those </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities with longer maturities. Fluctuations in the market price of the Fund’s investments will not affect interest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">income derived from instruments already owned by the Fund, but will be reflected in the Fund’s net asset value. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund may lose money if short-term or long-term interest rates rise sharply in a manner not anticipated by Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">management.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">To the extent the Fund invests in debt securities that may be prepaid at the option of the obligor (such as mortgage-backed</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> securities), the sensitivity of such securities to changes in interest rates may increase (to the detriment of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund) when interest rates rise. Moreover, because rates on certain floating rate debt securities typically reset </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">only periodically, changes in prevailing interest rates (and particularly sudden and significant changes) can be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">expected to cause some fluctuations in the net asset value of the Fund to the extent that it invests in floating rate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">debt securities.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">These basic principles of bond prices also apply to U.S. Government securities. A security backed by the “full faith </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and credit” of the U.S. Government is guaranteed only as to its stated interest rate and face value at maturity, not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">its current market price. Just like other fixed-income securities, government-guaranteed securities will fluctuate in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">value when interest rates change.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">A general rise in interest rates has the potential to cause investors to move out of fixed-income securities on a large </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">scale, which may increase redemptions from funds that hold large amounts of fixed-income securities. Heavy </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">redemptions could cause the Fund to sell assets at inopportune times or at a loss or depressed value and could </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">hurt the Fund’s performance.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Extension Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — When interest rates rise, certain obligations will be paid off by the obligor more slowly than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">anticipated, causing the value of these obligations to fall.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Prepayment Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — When interest rates fall, certain obligations will be paid off by the obligor more quickly than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">originally anticipated, and the Fund may have to invest the proceeds in securities with lower yields.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Allocation Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund’s ability to achieve its investment objective depends upon BlackRock’s skill in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">determining the Fund’s strategic asset class allocation and in selecting the best mix of underlying funds and direct </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments. There is a risk that BlackRock’s evaluations and assumptions regarding asset classes or underlying </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">funds may be incorrect in view of actual market conditions.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Collateralized Debt Obligations Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— In addition to the typical risks associated with fixed-income securities and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">asset-backed securities, CDOs, including collateralized loan obligations, carry additional risks including, but not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other payments; (ii) the risk that the collateral may default or decline in value or be downgraded, if rated by a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">nationally recognized statistical rating organization; (iii) the Fund may invest in tranches of CDOs that are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">subordinate to other tranches; (iv) the structure and complexity of the transaction and the legal documents could </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">lead to disputes among investors regarding the characterization of proceeds; (v) the investment return achieved by </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund could be significantly different than those predicted by financial models; (vi) the lack of a readily available </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">secondary market for CDOs; (vii) the risk of forced “fire sale” liquidation due to technical defaults such as coverage </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">test failures; and (viii) the CDO’s manager may perform poorly.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Commodities Related Investments Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">— </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Exposure to the commodities markets may subject the Fund to greater </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">volatility than investments in traditional securities. The value of commodity-linked derivative investments may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">affected by changes in overall market movements, commodity index volatility, changes in inflation, interest rates, or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">factors affecting a particular industry or commodity, such as drought, floods, weather, embargoes, tariffs and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">international economic, political and regulatory developments.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Convertible Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The market value of a convertible security performs like that of a regular debt </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition, convertible </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities are subject to the risk that the issuer will not be able to pay interest, principal or dividends when due, and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">their market value may change based on changes in the issuer’s credit rating or the market’s perception of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuer’s creditworthiness. Since it derives a portion of its value from the common stock into which it may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">converted, a convertible security is also subject to the same types of market and issuer risks that apply to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">underlying common stock, including the potential for increased volatility in the price of the convertible security.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Corporate Loans Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Commercial banks and other financial institutions or institutional investors make corporate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">loans to companies that need capital to grow or restructure. Borrowers generally pay interest on corporate loans at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">rates that change in response to changes in market interest rates such as the Secured Overnight Financing Rate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">SOFR</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">) or the prime rates of U.S. banks. As a result, the value of corporate loan investments is generally less </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposed to the adverse effects of shifts in market interest rates than investments that pay a fixed rate of interest. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The market for corporate loans may be subject to irregular trading activity and wide bid/ask spreads. In addition, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">transactions in corporate loans may settle on a delayed basis. As a result, the proceeds from the sale of corporate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">loans may not be readily available to make additional investments or to meet the Fund’s redemption obligations. To </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the extent the extended settlement process gives rise to short-term liquidity needs, the Fund may hold additional </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cash, sell investments or temporarily borrow from banks and other lenders. The corporate loans in which the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">invests are usually rated below investment grade.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Counterparty Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The counterparty to an over-the-counter derivatives contract or a borrower of the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities may be unable or unwilling to make timely principal, interest or settlement payments, or otherwise to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">honor its obligations. Any such failure to honor its obligations may cause significant losses to the Fund.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Depositary Receipts Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Depositary receipts are generally subject to the same risks as the foreign securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that they evidence or into which they may be converted. In addition to investment risks associated with the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">underlying issuer, depositary receipts expose the Fund to additional risks associated with the non-uniform terms </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that apply to depositary receipt programs, credit exposure to the depository bank and to the sponsors and other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">parties with whom the depository bank establishes the programs, currency risk and the risk of an illiquid market for </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">depositary receipts. The issuers of unsponsored depositary receipts are not obligated to disclose information that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">is, in the United States, considered material. Therefore, there may be less information available regarding these </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuers and there may not be a correlation between such information and the market value of the depositary </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">receipts. While depositary receipts provide an alternative to directly purchasing underlying foreign securities in their </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">respective markets and currencies, they continue to be subject to many of the risks associated with investing </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">directly in foreign securities, including political, economic, and currency risk.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Distressed Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Distressed securities are speculative and involve substantial risks in addition to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risks of investing in junk bonds. The Fund will generally not receive interest payments on the distressed securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and may incur costs to protect its investment. In addition, distressed securities involve the substantial risk that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">principal will not be repaid. These securities may present a substantial risk of default or may be in default at the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">time of investment. The Fund may incur additional expenses to the extent it is required to seek recovery upon a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">default in the payment of principal of or interest on its portfolio holdings. In any reorganization or liquidation </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">proceeding relating to a portfolio company, the Fund may lose its entire investment or may be required to accept </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cash or securities with a value less than its original investment. Distressed securities and any securities received in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">an exchange for such securities may be subject to restrictions on resale.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Dollar Rolls Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Dollar rolls involve the risk that the market value of the securities that the Fund is committed to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">buy may decline below the price of the securities the Fund has sold. These transactions may involve leverage.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Emerging Markets Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Emerging markets are riskier than more developed markets because they tend to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">develop unevenly and may never fully develop. Investments in emerging markets may be considered speculative. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Emerging markets are more likely to experience hyperinflation and currency devaluations, which adversely affect </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">returns to U.S. investors. In addition, many emerging financial markets have far lower trading volumes and less </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">liquidity than developed markets.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Foreign Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Foreign investments often involve special risks not present in U.S. investments that can </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">increase the chances that the Fund will lose money. These risks include:</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; margin-left: 12pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 493.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund generally holds its foreign securities and cash in foreign banks and securities depositories, which may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">be recently organized or new to the foreign custody business and may be subject to only limited or no regulatory </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">oversight.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; margin-left: 12pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 493.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Changes in foreign currency exchange rates can affect the value of the Fund’s portfolio.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; margin-left: 12pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 493.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The economies of certain foreign markets may not compare favorably with the economy of the United States with </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">respect to such issues as growth of gross national product, reinvestment of capital, resources and balance of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">payments position.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; margin-left: 12pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 493.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The governments of certain countries, or the U.S. Government with respect to certain countries, may prohibit or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">impose substantial restrictions through capital controls and/or sanctions on foreign investments in the capital </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">markets or certain industries in those countries, which may prohibit or restrict the ability to own or transfer </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">currency, securities, derivatives or other assets.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; margin-left: 12pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 493.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Many foreign governments do not supervise and regulate stock exchanges, brokers and the sale of securities to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the same extent as does the United States and may not have laws to protect investors that are comparable to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">U.S. securities laws.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; margin-left: 12pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 493.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Settlement and clearance procedures in certain foreign markets may result in delays in payment for or delivery of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities not typically associated with settlement and clearance of U.S. investments.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; margin-left: 12pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 493.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund’s claims to recover foreign withholding taxes may not be successful, and if the likelihood of recovery of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">foreign withholding taxes materially decreases, due to, for example, a change in tax regulation or approach in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">foreign country, accruals in the Fund’s net asset value for such refunds may be written down partially or in full, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">which will adversely affect the Fund’s net asset value.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">High Portfolio Turnover Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund may engage in active and frequent trading of its portfolio securities. High </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">portfolio turnover (more than 100%) may result in increased transaction costs to the Fund, including brokerage </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commissions, dealer mark-ups and other transaction costs on the sale of the securities and on reinvestment in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other securities. The sale of Fund portfolio securities may result in the realization and/or distribution to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders of higher capital gains or losses as compared to a fund with less active trading policies. These effects </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of higher than normal portfolio turnover may adversely affect Fund performance.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">High Yield Bonds Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Although junk bonds generally pay higher rates of interest than investment grade bonds, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">junk bonds are high risk investments that are considered speculative and may cause income and principal losses </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for the Fund.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Illiquid Investments Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund may not acquire any illiquid investment if, immediately after the acquisition, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund would have invested more than 15% of its net assets in illiquid investments. An illiquid investment is any </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">calendar days or less without the sale or disposition significantly changing the market value of the investment. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Subsidiary will also limit its investment in illiquid investments to 15% of its net assets. In applying the illiquid </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments restriction to the Fund, the Fund’s investment in the Subsidiary is considered to be liquid. Liquid </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments may become illiquid after purchase by the Fund, particularly during periods of market turmoil. There can </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">be no assurance that a security or instrument that is deemed to be liquid when purchased will continue to be liquid </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for as long as it is held by the Fund, and any security or instrument held by the Fund may be deemed an illiquid </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment pursuant to the Fund’s liquidity risk management program. The Fund’s illiquid investments may reduce </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the returns of the Fund because it may be difficult to sell the illiquid investments at an advantageous time or price. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">In addition, if the Fund is limited in its ability to dispose of illiquid investments during periods when shareholders </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are redeeming or selling their shares or the Fund’s net assets otherwise shrink,, the Fund will need to dispose of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">liquid securities to meet redemption requests and illiquid securities will become a larger portion of the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">holdings. An investment may be illiquid due to, among other things, the reduced number and capacity of traditional </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market participants to make a market in fixed-income securities or the lack of an active trading market. To the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">extent that the Fund’s principal investment strategies involve derivatives or securities with substantial market and/</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or credit risk, the Fund will tend to have greater exposure to the risks associated with illiquid investments. Illiquid </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments may be harder to value, especially in changing markets, and if the Fund is forced to sell these </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments to meet redemption requests or for other cash needs, the Fund may suffer a loss. This may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">magnified in a rising interest rate environment or other circumstances where investor redemptions or sales of Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares may be higher than normal. In addition, when there is illiquidity in the market for certain securities, the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund, due to limitations on illiquid investments, may be subject to purchase and sale restrictions.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Indexed and Inverse Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Indexed and inverse securities provide a potential return based on a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">particular index of value or interest rates. The Fund’s return on these securities will be subject to risk with respect </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to the value of the particular index. These securities are subject to leverage risk and correlation risk. Certain </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">indexed and inverse securities have greater sensitivity to changes in interest rates or index levels than other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities, and the Fund’s investment in such instruments may decline significantly in value if interest rates or index </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">levels move in a way Fund management does not anticipate.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Inflation-Indexed Bonds Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The principal value of an investment in the Fund is not protected or otherwise </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">guaranteed by virtue of any investments by the Fund in inflation-indexed bonds. The value of inflation-indexed </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities generally fluctuates with changes in real interest rates, decreasing when real interest rates rise and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">increasing when real interest rates fall. Real interest rates represent nominal (or stated) interest rates minus the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">inflation rates. If the Fund purchases TIPS in the secondary market and the bonds’ principal values previously were </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">adjusted upward, but then there is a period of declining inflation rates, the Fund may receive at maturity less than it </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">invested.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">In addition, interest payments on inflation-indexed securities generally vary up or down along with the rate of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">inflation, and inflation-indexed bonds typically have lower nominal yields than conventional fixed-rate bonds. If the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">index measuring inflation falls, the principal value of inflation-indexed bonds will be adjusted downward, and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reduced.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income, even </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">though investors do not receive their principal until maturity. Periodic adjustments for inflation to the principal </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">amount of an inflation-indexed bond may give rise to original issue discount, which will be includable in the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">gross income. Due to original issue discount, the Fund may be required to make annual distributions to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders that exceed the cash received, which may cause the Fund to liquidate certain investments when it is </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">not advantageous to do so. Also, if the principal value of an inflation-indexed bond is adjusted downward due to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">deflation, amounts previously distributed in the taxable year may be characterized in some circumstances as a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">return of capital.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Investment Style Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Under certain market conditions, growth investments have performed better during the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">later stages of economic expansion and value investments have performed better during periods of economic </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">recovery. Therefore, these investment styles may over time go in and out of favor. At times when the investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">style used by the Fund is out of favor, the Fund may underperform other equity funds that use different investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">styles.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Leverage Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Some transactions may give rise to a form of economic leverage. These transactions may include, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">among others, derivatives, and may expose the Fund to greater risk and increase its costs. The use of leverage may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to meet the applicable requirements of the Investment Company Act of 1940, as amended (the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Company Act</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">) and the rules thereunder. Increases and decreases in the value of the Fund’s portfolio will be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">magnified when the Fund uses leverage.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Market Risk and Selection Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Market risk is the risk that one or more markets in which the Fund invests will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">go down in value, including the possibility that the markets will go down sharply and unpredictably. Securities or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other investments held by the Fund may underperform the markets, the relevant indices or benchmarks, or the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities selected by other funds with similar investment objectives and investment strategies, or may otherwise </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fail to perform as intended. The value of a security or other asset may decline due to changes in general market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">conditions, economic trends or events that are not specifically related to the issuer of the security or other asset, or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">factors that affect a particular issuer or issuers, exchange, country, group of countries, region, market, industry, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">group of industries, sector or asset class. The success of the Fund’s activities could be affected by interest rates, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">availability of credit, inflation rates, economic uncertainty, changes in laws, tariffs and trade barriers, supply chain </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">disruptions, economic sanctions, currency exchange controls, and local, regional or global events such as war, acts </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of terrorism, natural and environmental disasters, the spread of infectious illness or other public health issues like </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">pandemics or epidemics, recessions, or other events.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Recent policy initiatives undertaken by the U.S. government have the potential to impact international relations, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">trade agreements and the overall regulatory environment in ways that could create uncertainty and instability in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">domestic and global markets, and could adversely affect the investment performance of the Fund. In particular, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">actions taken by the U.S. government in respect of international trade relations could lead to trade wars, increased </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">costs for imported goods, disruptions in supply chains, reduced foreign investment, and instability in regions where </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund invests.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Mid Cap Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The securities of mid cap companies generally trade in lower volumes and are generally </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">subject to greater and less predictable price changes than the securities of larger capitalization companies.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Money Market Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— If market conditions improve while the Fund has invested some or all of its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">assets in high quality money market securities, this strategy could result in reducing the potential gain from the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market upswing, thus reducing the Fund’s opportunity to achieve its investment objective.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Mortgage- and Asset-Backed Securities Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Mortgage- and asset-backed securities represent interests in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“pools” of mortgages or other assets, including consumer loans or receivables held in trust. Mortgage- and asset-</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">backed securities are subject to credit, interest rate, prepayment and extension risks. These securities also are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">subject to risk of default on the underlying mortgage or asset, particularly during periods of economic downturn. </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">certain mortgage-backed securities.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Municipal Securities Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Municipal securities risks include the ability of the issuer to repay the obligation, the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">relative lack of information about certain issuers of municipal securities, and the possibility of future legislative </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">changes which could affect the market for and value of municipal securities. Budgetary constraints of local, state, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and federal governments upon which the issuers may be relying for funding may also impact municipal securities. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">These risks include:</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">General Obligation Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Timely payments depend on the issuer’s credit quality, ability to raise tax </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">revenues and ability to maintain an adequate tax base.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Revenue Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> These payments depend on the money earned by the particular facility or class of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">facilities, or the amount of revenues derived from another source.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Private Activity Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Municipalities and other public authorities issue private activity bonds to finance </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">development of industrial facilities for use by a private enterprise. The private enterprise pays the principal and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interest on the bond, and the issuer does not pledge its full faith, credit and taxing power for repayment.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Moral Obligation Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Moral obligation bonds are generally issued by special purpose public authorities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of a state or municipality. If the issuer is unable to meet its obligations, repayment of these bonds becomes a moral </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commitment, but not a legal obligation, of the state or municipality.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Municipal Notes Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Municipal notes are shorter term municipal debt obligations. If there is a shortfall in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">anticipated proceeds, the notes may not be fully repaid and the Fund may lose money.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Municipal Lease Obligations Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> In a municipal lease obligation, the issuer agrees to make payments when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">due on the lease obligation. Although the issuer does not pledge its unlimited taxing power for payment of the lease </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">obligation, the lease obligation is secured by the leased property.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Tax-Exempt Status Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The Fund and its investment manager will rely on the opinion of issuers’ bond counsel </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and, in the case of derivative securities, sponsors’ counsel, on the tax-exempt status of interest on municipal bonds </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and payments under derivative securities. Neither the Fund nor its investment manager will independently review the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">bases for those tax opinions, which may ultimately be determined to be incorrect and subject the Fund and its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders to substantial tax liabilities.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Operational and Technology Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund is directly and indirectly susceptible to operational and technology </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risks, including those related to human errors, processing errors, communication errors, systems failures, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cybersecurity incidents, and the use of artificial intelligence and machine learning (“AI”), which may result in losses </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for the Fund and its shareholders or may impair the Fund’s operations. While the Fund’s service providers are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">required to have appropriate operational, information security and cybersecurity risk management policies and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">procedures, their methods of risk management may differ from those of the Fund. Operational and technology risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for the issuers in which the Fund invests could also result in material adverse consequences for such issuers and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may cause the Fund’s investments in such issuers to lose value.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Preferred Securities Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Preferred securities may pay fixed or adjustable rates of return. Preferred securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are subject to issuer-specific and market risks applicable generally to equity securities. In addition, a company’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">preferred securities generally pay dividends only after the company makes required payments to holders of its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">bonds and other debt. For this reason, the value of preferred securities will usually react more strongly than bonds </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and other debt to actual or perceived changes in the company’s financial condition or prospects. Preferred </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities of smaller companies may be more vulnerable to adverse developments than preferred securities of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">larger companies.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Real Estate-Related Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The main risk of real estate-related securities is that the value of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">underlying real estate may go down. Many factors may affect real estate values. These factors include both the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">general and local economies, vacancy rates, changes in rent schedules, tenant bankruptcies, the ability to re-lease </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">space under expiring leases on attractive terms, the amount of new construction in a particular area, the laws and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">regulations (including zoning, environmental and tax laws) affecting real estate and the costs of owning, maintaining </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and improving real estate. The availability of mortgage financing and changes in interest rates may also affect real </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">estate values. If the Fund’s real estate-related investments are concentrated in one geographic area or in one </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">property type, the Fund will be particularly subject to the risks associated with that area or property type. Many </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuers of real estate-related securities are highly leveraged, which increases the risk to holders of such securities. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The value of the securities the Fund buys will not necessarily track the value of the underlying investments of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuers of such securities. In addition, certain issuers of real estate-related securities may have developed or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commenced development on properties and may develop additional properties in the future. Real estate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">development involves significant risks in addition to those involved in the ownership and operation of established </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">properties. Real estate securities may have limited diversification and are, therefore, subject to risks inherent in </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">operating and financing a limited number of projects. Real estate securities are also subject to heavy cash flow </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">dependency and defaults by borrowers or tenants.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">REIT Investment Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Investments in REITs involve unique risks. REITs may have limited financial resources, may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">trade less frequently and in limited volume, may engage in dilutive offerings of securities and may be more volatile </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">than other securities. REIT issuers may also fail to maintain their exemptions from investment company registration </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or fail to qualify for the “dividends paid deduction” under the Internal Revenue Code of 1986, as amended (the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“Internal Revenue Code”), which allows REITs to reduce their corporate taxable income for dividends paid to their </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Repurchase Agreements and Purchase and Sale Contracts Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — If the other party to a repurchase agreement or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">purchase and sale contract defaults on its obligation under the agreement, the Fund may suffer delays and incur </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">costs or lose money in exercising its rights under the agreement. If the seller fails to repurchase the security in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">either situation and the market value of the security declines, the Fund may lose money.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Reverse Repurchase Agreements Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Reverse repurchase agreements involve the sale of securities held by the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund with an agreement to repurchase the securities at an agreed-upon price, date and interest payment. Reverse </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">repurchase agreements involve the risk that the other party may fail to return the securities in a timely manner or at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">all. The Fund could lose money if it is unable to recover the securities and the value of the collateral held by the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund, including the value of the investments made with cash collateral, is less than the value of the securities. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">These events could also trigger adverse tax consequences for the Fund. In addition, reverse repurchase agreements </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">involve the risk that the interest income earned in the investment of the proceeds will be less than the interest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">expense.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Risk of Investing in the United States </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Certain changes in the U.S. economy, such as when the U.S. economy </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">weakens or when its financial markets decline, may have an adverse effect on the securities to which the Fund has </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposure.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Risks of Loan Assignments and Participations </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— As the purchaser of an assignment, the Fund typically succeeds </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to all the rights and obligations of the assigning institution and becomes a lender under the credit agreement with </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">respect to the debt obligation; however, the Fund may not be able unilaterally to enforce all rights and remedies </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">under the loan and with regard to any associated collateral. Because assignments may be arranged through private </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">negotiations between potential assignees and potential assignors, the rights and obligations acquired by the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">as the purchaser of an assignment may differ from, and be more limited than, those held by the assigning lender. In </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">addition, if the loan is foreclosed, the Fund could become part owner of any collateral and could bear the costs and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">liabilities of owning and disposing of the collateral. The Fund may be required to pass along to a purchaser that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">buys a loan from the Fund by way of assignment a portion of any fees to which the Fund is entitled under the loan. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">borrower with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and the Fund may not directly benefit from any collateral supporting the loan in which it has purchased the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">participation. As a result, the Fund will be subject to the credit risk of both the borrower and the lender that is </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">selling the participation. In the event of the insolvency of the lender selling a participation, the Fund may be treated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">as a general creditor of the lender and may not benefit from any set-off between the lender and the borrower.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Second Lien Loans Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Second lien loans generally are subject to similar risks as those associated with </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments in senior loans. Because second lien loans are subordinated or unsecured and thus lower in priority of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">payment to senior loans, they are subject to the additional risk that the cash flow of the borrower and property </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securing the loan or debt, if any, may be insufficient to meet scheduled payments after giving effect to the senior </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">secured obligations of the borrower.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Senior Loans Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — There is less readily available, reliable information about most senior loans than is the case </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for many other types of securities. An economic downturn generally leads to a higher non-payment rate, and a senior </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">loan may lose significant value before a default occurs. Moreover, any specific collateral used to secure a senior </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">loan may decline in value or become illiquid, which would adversely affect the senior loan’s value. No active trading </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market may exist for certain senior loans, which may impair the ability of the Fund to realize full value in the event </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of the need to sell a senior loan and which may make it difficult to value senior loans. Although senior loans in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">which the Fund will invest generally will be secured by specific collateral, there can be no assurance that liquidation </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of such collateral would satisfy the borrower’s obligation in the event of non-payment of scheduled interest or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">principal or that such collateral could be readily liquidated. To the extent that a senior loan is collateralized by stock </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in the borrower or its subsidiaries, such stock may lose all of its value in the event of the bankruptcy of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">borrower. Uncollateralized senior loans involve a greater risk of loss. The senior loans in which the Fund invests are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">usually rated below investment grade.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Short Sales and Short Position Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Because making short sales or taking short positions in securities that it </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">does not own would expose the Fund to the risks associated with those securities, such short sales or positions </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">involve speculative exposure risk. In such situations, the Fund will incur a loss as a result of a short sale or position </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">if the price of the reference instrument increases after the Fund entered into the short sale or position. The Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may engage in short sales and gain short exposure through certain derivative instruments, such as futures, options </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or swaps. The Fund may lose more money than the actual cost of a short sale or position and the potential losses </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are theoretically unlimited on a short sale or position.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Small Cap and Emerging Growth Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Small cap or emerging growth companies may have limited </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">product lines or markets. They may be less financially secure than larger, more established companies. They may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">depend on a more limited management group than larger capitalized companies.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Sovereign Debt Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Sovereign debt instruments are subject to the risk that a governmental entity may delay or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">refuse to pay interest or repay principal on its sovereign debt, due, for example, to cash flow problems, insufficient </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">foreign currency reserves, political considerations, the relative size of the governmental entity’s debt position in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">relation to the economy or the failure to put in place economic reforms required by the International Monetary Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or other multilateral agencies.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Structured Notes Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Structured notes and other related instruments purchased by the Fund are generally </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">privately negotiated debt obligations where the principal and/or interest is determined by reference to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">performance of a specific asset, benchmark asset, market or interest rate (“reference measure”). The purchase of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">structured notes exposes the Fund to the credit risk of the issuer of the structured product. Structured notes may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">be leveraged, increasing the volatility of each structured note’s value relative to the change in the reference </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">measure. Structured notes may also be less liquid and more difficult to price accurately than less complex </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities and instruments or more traditional debt securities.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Structured Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Because structured securities of the type in which the Fund may invest typically </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">involve no credit enhancement, their credit risk generally will be equivalent to that of the underlying instruments, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">index or reference obligation and will also be subject to counterparty risk. The Fund may have the right to receive </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">payments only from the structured security, and generally does not have direct rights against the issuer or the entity </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that sold the assets to be securitized. In addition to the general risks associated with debt securities discussed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">herein, structured securities carry additional risks, including, but not limited to: the possibility that distributions </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">from collateral securities will not be adequate to make interest or other payments; the quality of the collateral may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">decline in value or default; and the possibility that the structured securities are subordinate to other classes. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund is permitted to invest in a class of structured securities that is either subordinated or unsubordinated to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">right of payment of another class. Subordinated structured securities typically have higher yields and present </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">greater risks than unsubordinated structured securities. Structured securities are typically sold in private placement </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">transactions, and there currently is no active trading market for structured securities. Structured securities are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">based upon the movement of one or more factors, including currency exchange rates, interest rates, reference </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">bonds and stock indices, and changes in interest rates and impact of these factors may cause significant price </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fluctuations. Additionally, changes in the reference instrument or security may cause the interest rate on the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">structured security to be reduced to zero. Certain issuers of such structured securities may be deemed to be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“investment companies” as defined in the Investment Company Act. As a result, the Fund’s investment in such </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities may be limited by certain investment restrictions contained in the Investment Company Act.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Subsidiary Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — By investing in the Subsidiary, the Fund is indirectly exposed to the risks associated with the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Subsidiary’s investments. The commodity-related instruments held by the Subsidiary are generally similar to those </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that are permitted to be held by the Fund and are subject to the same risks that apply to similar investments if held </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">directly by the Fund (see “Commodities Related Investments Risk” above). There can be no assurance that the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment objective of the Subsidiary will be achieved. The Subsidiary is not registered under the Investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Company Act, and, unless otherwise noted in this prospectus, is not subject to all the investor protections of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Investment Company Act. However, the Fund wholly owns and controls the Subsidiary, and the Fund and the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Subsidiary are both managed by BlackRock, making it unlikely that the Subsidiary will take action contrary to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interests of the Fund and its shareholders. The Board has oversight responsibility for the investment activities of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund, including its investment in the Subsidiary, and the Fund’s role as sole shareholder of the Subsidiary. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Subsidiary is subject to the same investment restrictions and limitations, and follows the same compliance policies </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and procedures, as the Fund, except that the Subsidiary may invest without limitation in commodity-related </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">instruments. Changes in the laws of the United States and/or the Cayman Islands could result in the inability of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund and/or the Subsidiary to operate as described in this prospectus and the SAI and could adversely affect the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Supranational Entities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund may invest in obligations issued or guaranteed by the World Bank. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">government members, or “stockholders,” usually make initial capital contributions to the World Bank and in many </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cases are committed to make additional capital contributions if the World Bank is unable to repay its borrowings. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">There is no guarantee that one or more stockholders of the World Bank will continue to make any necessary </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">additional capital contributions. If such contributions are not made, the entity may be unable to pay interest or repay </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">principal on its debt securities, and the Fund may lose money on such investments.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Tender Option Bonds and Related Securities Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The Fund’s participation in tender option bond transactions </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may reduce the Fund’s returns and/or increase volatility. Investments in tender option bond transactions expose the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund to counterparty risk and leverage risk. An investment in a tender option bond transaction typically will involve </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">greater risk than an investment in a municipal fixed rate security, including the risk of loss of principal. Distributions </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">on residual inverse floating rate interests (“TOB Residuals”) will bear an inverse relationship to short-term municipal </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security interest rates. Distributions on TOB Residuals paid to the Fund will be reduced or, in the extreme, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">eliminated as short-term municipal interest rates rise and will increase when short-term municipal interest rates </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fall. TOB Residuals generally will underperform the market for fixed rate municipal securities in a rising interest rate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">environment. The Fund may invest in special purpose entities (“TOB Trusts”) on either a non-recourse or recourse </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">basis. If the Fund invests in a TOB Trust on a recourse basis, it could suffer losses in excess of the value of its TOB </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Residuals.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">U.S. Government Mortgage-Related Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— There are a number of important differences among the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">agencies and instrumentalities of the U.S. Government that issue mortgage-related securities and among the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities that they issue. Mortgage-related securities guaranteed by the Government National Mortgage </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Association (</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">GNMA</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Ginnie Mae</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">) are guaranteed as to the timely payment of principal and interest by GNMA </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and such guarantee is backed by the full faith and credit of the United States. GNMA securities also are supported </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">by the right of GNMA to borrow funds from the U.S. Treasury to make payments under its guarantee. Mortgage-</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">related securities issued by Fannie Mae or Freddie Mac are solely the obligations of Fannie Mae or Freddie Mac, as </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the case may be, and are not backed by or entitled to the full faith and credit of the United States but are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">supported by the right of the issuer to borrow from the Treasury.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">U.S. Government Obligations Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Certain securities in which the Fund may invest, including securities issued by </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">certain U.S. Government agencies and U.S. Government sponsored enterprises, are not guaranteed by the U.S. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Government or supported by the full faith and credit of the United States. In addition, circumstances could arise </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that could prevent the timely payment of interest or principal on U.S. Government obligations, such as reaching the</span> <br/><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">legislative “debt ceiling.” Such non-payment could result in losses to the Fund and substantial negative </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">consequences for the U.S. economy and the global financial system.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Variable and Floating Rate Instrument Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Variable and floating rate securities provide for periodic adjustment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in the interest rate paid on the securities. Securities with floating or variable interest rates can be less sensitive to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interest rate changes than securities with fixed interest rates, but may decline in value if their coupon rates do not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reset as high, or as quickly, as comparable market interest rates, and generally carry lower yields than fixed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities of the same maturity. These securities will not generally increase in value if interest rates decline. A </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">decline in interest rates may result in a reduction in income received from variable and floating rate securities held </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">by the Fund and may adversely affect the value of the Fund’s shares. These securities may be subject to greater </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">illiquidity risk than other fixed income securities, meaning the absence of an active market for these securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">could make it difficult for the Fund to dispose of them at any given time. Floating rate securities generally are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">subject to legal or contractual restrictions on resale, may trade infrequently, and their value may be impaired when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund needs to liquidate such loans. Benchmark interest rates may not accurately track market interest rates. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Although floating rate securities are less sensitive to interest rate risk than fixed-rate securities, they are subject to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">credit risk and default risk, which could impair their value.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Warrants Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— If the price of the underlying stock does not rise above the exercise price before the warrant </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">expires, the warrant generally expires without any value and the Fund will lose any amount it paid for the warrant. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Thus, investments in warrants may involve substantially more risk than investments in common stock. Warrants </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may trade in the same markets as their underlying stock; however, the price of the warrant does not necessarily </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">move with the price of the underlying stock.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Zero Coupon Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> While interest payments are not made on such securities, holders of such </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities are deemed to have received income (“phantom income”) annually, notwithstanding that cash may not be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">received currently. The effect of owning instruments that do not make current interest payments is that a fixed yield </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">is earned not only on the original investment but also, in effect, on all discount accretion during the life of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">obligations. This implicit reinvestment of earnings at a fixed rate eliminates the risk of being unable to invest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">distributions at a rate as high as the implicit yield on the zero coupon bond, but at the same time eliminates the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">holder’s ability to reinvest at higher rates in the future. For this reason, some of these securities may be subject to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">substantially greater price fluctuations during periods of changing market interest rates than are comparable </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities that pay interest currently. Longer term zero coupon bonds are more exposed to interest rate risk than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shorter term zero coupon bonds. These investments benefit the issuer by mitigating its need for cash to meet debt </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">service, but also require a higher rate of return to attract investors who are willing to defer receipt of cash.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> Performance Information <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Effective May 15, 2012 through January 28, 2016, the Fund changed its investment strategy to invest a significant </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">portion of its assets in other investment companies and directly in securities. Performance shown below for this time </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">period is based on the investment strategy utilized by the Fund during the time period.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The information shows you how the Fund’s performance has varied year by year and provides some indication of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risks of investing in the Fund. Class K Shares commenced operations on August 1, 2016. As a result, the returns in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the table shown below for Class K Shares prior to August 1, 2016 are those of the Fund’s Investor A Shares, which </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are not offered in this prospectus, excluding any Investor A Shares front-end sales charges, which are not applicable </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to Class K Shares. The performance of Class K Shares would be substantially similar to Investor A Shares because </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Class K Shares and Investor A Shares are invested in the same portfolio of securities and performance would differ </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">only to the extent that Class K Shares and Investor A Shares have different expenses. The actual returns of Class K </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Shares would have been higher than those of Investor A Shares because Class K Shares have lower expenses than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Investor A Shares. The table compares the Fund’s performance to that of the MSCI All Country World Index (Net). The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">table also compares the Fund’s performance to the Bloomberg 1-3 Year Treasury Bond Index, the ICE BofA 3-Month </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">U.S. Treasury Bill Index and a customized weighted index comprised of 25% MSCI All Country World Index (Net)/75% </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Bloomberg 1-3 Year Treasury Bond Index, each of which is relevant to the Fund because it has characteristics similar </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to the Fund’s investment strategy. To the extent that dividends and distributions have been paid by the Fund, the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">performance information for the Fund in the chart and table assumes reinvestment of the dividends and distributions. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">As with all such investments, past performance (before and after taxes) is not an indication of future results. The table </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">includes all applicable fees. If BlackRock and its affiliates had not waived or reimbursed certain Fund expenses during </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">these periods, the Fund’s returns would have been lower. Updated information on the Fund’s performance, including </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">its current net asset value, can be obtained by visiting www.blackrock.com or can be obtained by phone at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(800) 882-0052</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">.</span></div> The information shows you how the Fund’s performance has varied year by year and provides some indication of the risks of investing in the Fund. The table compares the Fund’s performance to that of the MSCI All Country World Index (Net). The table also compares the Fund’s performance to the Bloomberg 1-3 Year Treasury Bond Index, the ICE BofA 3-Month U.S. Treasury Bill Index and a customized weighted index comprised of 25% MSCI All Country World Index (Net)/75% Bloomberg 1-3 Year Treasury Bond Index, each of which is relevant to the Fund because it has characteristics similar to the Fund’s investment strategy. As with all such investments, past performance (before and after taxes) is not an indication of future results. www.blackrock.com (800) 882-0052 Class K Shares ANNUAL TOTAL RETURNS BlackRock Tactical Opportunities Fund As of 12/31 <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">During the ten-year period shown in the bar chart, the highest return for a quarter was 7.07% (quarter ended </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">March 31, 2024) and the lowest return for a quarter was -2.34% (quarter ended December 31, 2018). The year-to-date return</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> as of June 30, 2026 was 9.40%.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> highest return 0.0707 2024-03-31 lowest return -0.0234 2018-12-31 year-to-date return 2026-06-30 0.0940 For the periods ended 12/31/25Average Annual Total Returns 0.0666 0.0565 0.0497 0.0666 0.0442 0.0369 0.0394 0.0382 0.0335 0.2234 0.1119 0.1172 0.0517 0.0175 0.0183 0.0418 0.0317 0.0218 0.0932 0.0421 0.0443 <div style="margin-top: 12pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. Fund OverviewKey Facts About BlackRock Tactical Opportunities Fund Investment Objective <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The investment objective of BlackRock Tactical Opportunities Fund (the “Fund”), a series of BlackRock Funds</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">SM</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> (the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Trust</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">), is to seek total return.</span></div> Fees and Expenses of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This table describes the fees and expenses that you may pay if you buy, hold and sell Service Shares of the Fund. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Amounts in the table are rounded to the nearest basis point, which in some cases may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">0.00.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">You may pay other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">fees, such as brokerage commissions and other fees to your financial professional or your selected securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">dealer, broker, investment adviser, service provider or industry professional (including BlackRock Advisors, LLC </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">(</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">BlackRock</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">) and its affiliates) (each, a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">Financial Intermediary</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">), which are not reflected in the table and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">example below.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0050 0.0025 0.0022 0.0001 0.0098 -0.0001 0.0097 June 30, 2028 The Total Annual Fund Operating Expenses does not correlate to the ratio of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which does not include Acquired Fund Fees and Expenses. Example: <div style="line-height: 10.695pt; margin-top: 0.0pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or lower, based on these assumptions your costs would be:</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> 99 311 541 1200 Portfolio Turnover: <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">83</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">% of the average value of its portfolio.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> 0.83 Principal Investment Strategies of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund uses a macro asset allocation strategy, investing varying percentages of its portfolio in global stocks, bonds, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">money market instruments, foreign currencies and cash. The Fund has wide flexibility in the relative weightings given </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to each category. The Fund takes both long and short positions within and across each category, which the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">expects to result in a lower correlation to the equity or fixed-income markets than if the Fund invested in either such </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market in its entirety.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">In selecting investments, the Fund management team will identify global macro opportunities and position the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">using a combination of individual securities and derivatives.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund uses a combination of a systematic (i.e., rule-based) investment process and a discretionary investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">process to allocate assets. The systematic process compares data across similar assets to rank expected return </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">opportunities and to appropriately scale the Fund’s exposure. The discretionary process derives investment themes </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">based on research and analysis of macro-economic data and seeks exposures to these themes.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">With respect to its equity investments, the Fund may invest in individual equity securities to an unlimited extent. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund may invest in common stock, preferred stock, non-convertible preferred stock and depositary receipts. The Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may invest in securities of both U.S. and non-U.S. issuers without limit, which can be U.S. dollar-based or non-U.S. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">dollar-based and may be currency hedged or unhedged. The Fund may invest in securities of companies of any market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">capitalization. The Fund may also invest in securities convertible into common stock.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">With respect to its fixed-income investments, the Fund may invest in individual fixed-income securities to an unlimited </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">extent. The Fund may invest in a portfolio of fixed-income securities such as corporate bonds and notes, commercial </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and residential mortgage-backed securities (bonds that are backed by a mortgage loan or pools of loans secured </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">either by commercial property or residential mortgages, as applicable), collateralized mortgage obligations (bonds that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are backed by cash flows from pools of mortgages and may have multiple classes with different payment rights and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">protections), collateralized debt obligations (“CDOs”), asset-backed securities, convertible securities, debt obligations </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of governments and their sub-divisions (including those of non-U.S. governments), other floating or variable rate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">obligations, municipal obligations and zero coupon debt securities. The Fund may also invest a significant portion of its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">assets in non-investment grade bonds (“junk” bonds or distressed securities), non-investment grade bank loans, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">foreign bonds (both U.S. dollar- and non-U.S. dollar-denominated) and bonds of emerging market issuers. The Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may invest in non-U.S. dollar-denominated bonds on a currency hedged or unhedged basis.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">With respect to its cash investments, the Fund may hold high quality money market securities, including short term </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">U.S. Government securities, U.S. Government agency securities, securities issued by U.S. Government-sponsored </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">enterprises and U.S. Government instrumentalities, bank obligations, commercial paper, including asset-backed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commercial paper, corporate notes and repurchase agreements. The Fund may invest a significant portion of its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">assets in money market funds, including those advised by BlackRock or its affiliates.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may invest in derivatives, including, but not limited to, interest rate, total return and credit default swaps, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">options, futures, options on futures and swaps and foreign currency transactions (including swaps), for hedging </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">purposes, as well as to increase the return on its portfolio investments. The Fund may seek to obtain market exposure </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to the securities in which it primarily invests by entering into a series of purchase and sale contracts or by using other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment techniques (such as reverse repurchase agreements or dollar rolls). The Fund may also use forward foreign </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">currency exchange contracts (obligations to buy or sell a currency at a set rate in the future) to hedge against </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">movement in the value of non-U.S. currencies.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may also invest in indexed and inverse floating rate securities.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may invest in U.S. and non-U.S. real estate investment trusts (“REITs”), structured products (including, but </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">not limited to, structured notes, credit linked notes and participation notes, or other instruments evidencing interests </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in special purpose vehicles, trusts, or other entities that hold or represent interests in fixed-income securities) and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">floating rate securities (such as bank loans).</span></div> <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may seek to provide exposure to the investment returns of real assets, that trade in the commodity markets </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">through investment in commodity-linked derivative instruments and investment vehicles, such as exchange-traded </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">funds, that invest in commodities and are designed to provide investment exposure to physical commodities. The Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">expects to gain exposure to commodity markets by investing up to 25% of its total assets, inclusive of leverage, in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">BlackRock Cayman Tactical Opportunities Fund, Ltd. (the “Subsidiary”), a wholly owned subsidiary of the Fund formed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in the Cayman Islands, which invests primarily in commodity-related instruments. The Subsidiary may also hold cash </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and invest in other instruments, including fixed income securities, either as investments or to serve as margin or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">collateral for the Subsidiary’s derivative positions. The Subsidiary (unlike the Fund) may invest without limitation in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commodity-related instruments. However, the Subsidiary is otherwise subject to the same fundamental, non-fundamental</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> and certain other investment restrictions as the Fund.</span></div> You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Derivatives Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund’s use of derivatives may increase its costs, reduce the Fund’s returns and/or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">increase volatility. Derivatives involve significant risks, including:</span></div> </div> <div style="clear: both; position: relative;"> </div> </div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Leverage Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund’s use of derivatives can magnify the Fund’s gains and losses. Relatively small market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">movements may result in large changes in the value of a derivatives position and can result in losses that greatly </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exceed the amount originally invested.</span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Market Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Some derivatives are more sensitive to interest rate changes and market price fluctuations than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other securities. The Fund could also suffer losses related to its derivatives positions as a result of unanticipated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market movements, which losses are potentially unlimited. Finally, BlackRock may not be able to predict correctly </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the direction of securities prices, interest rates and other economic factors, which could cause the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">derivatives positions to lose value.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Counterparty Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Derivatives are also subject to counterparty risk, which is the risk that the other party in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">transaction will be unable or unwilling to fulfill its contractual obligation, and the related risks of having concentrated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposure to such a counterparty.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Illiquidity Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The possible lack of a liquid secondary market for derivatives and the resulting inability of the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to sell or otherwise close a derivatives position could expose the Fund to losses and could make derivatives more </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">difficult for the Fund to value accurately.</span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Operational Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The use of derivatives includes the risk of potential operational issues, including documentation </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issues, settlement issues, systems failures, inadequate controls and human error.</span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Legal Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">enforceability of a contract.</span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Volatility and Correlation Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Volatility is defined as the characteristic of a security, an index or a market to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fluctuate significantly in price within a short time period. A risk of the Fund’s use of derivatives is that the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fluctuations in their values may not correlate with the overall securities markets.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Valuation Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Valuation for derivatives may not be readily available in the market. Valuation may be more difficult </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in times of market turmoil since many investors and market makers may be reluctant to purchase complex </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">instruments or quote prices for them.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Hedging Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Hedges are sometimes subject to imperfect matching between the derivative and the underlying </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security, and there can be no assurance that the Fund’s hedging transactions will be effective. The use of hedging </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may result in certain adverse tax consequences.</span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Tax Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Certain aspects of the tax treatment of derivative instruments, including swap agreements and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commodity-linked derivative instruments, are currently unclear and may be affected by changes in legislation, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">regulations or other legally binding authority. Such treatment may be less favorable than that given to a direct </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment in an underlying asset and may adversely affect the timing, character and amount of income the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">realizes from its investments.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Equity Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Stock markets are volatile. The price of equity securities fluctuates based on changes in a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">company’s financial condition and overall market and economic conditions.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Debt Securities Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Debt securities, such as bonds, involve risks, such as credit risk, interest rate risk, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">extension risk, and prepayment risk, each of which is described in further detail below:</span></div> </div> <div style="clear: both; position: relative;"> </div> </div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Credit Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Credit risk refers to the possibility that the issuer of a debt security (i.e., the borrower) will not be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">able to make payments of interest and principal when due. Changes in an issuer’s credit rating or the market’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">perception of an issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">degree of credit risk depends on both the financial condition of the issuer and the terms of the obligation.</span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Interest Rate Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The market value of bonds and other fixed-income securities changes in response to interest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">rate changes and other factors. Interest rate risk is the risk that prices of bonds and other fixed-income securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">will increase as interest rates fall and decrease as interest rates rise.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may be subject to a greater risk of rising interest rates during a period of low interest rates. For example, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">if interest rates increase by 1%, assuming a current portfolio duration of ten years, and all other factors being </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">equal, the value of the Fund’s investments would be expected to decrease by 10%. (Duration is a measure of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">price sensitivity of a debt security or portfolio of debt securities to relative changes in interest rates.) The magnitude </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of these fluctuations in the market price of bonds and other fixed-income securities is generally greater for those </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities with longer maturities. Fluctuations in the market price of the Fund’s investments will not affect interest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">income derived from instruments already owned by the Fund, but will be reflected in the Fund’s net asset value. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund may lose money if short-term or long-term interest rates rise sharply in a manner not anticipated by Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">management.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">To the extent the Fund invests in debt securities that may be prepaid at the option of the obligor (such as mortgage-backed</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> securities), the sensitivity of such securities to changes in interest rates may increase (to the detriment of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund) when interest rates rise. Moreover, because rates on certain floating rate debt securities typically reset </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">only periodically, changes in prevailing interest rates (and particularly sudden and significant changes) can be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">expected to cause some fluctuations in the net asset value of the Fund to the extent that it invests in floating rate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">debt securities.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">These basic principles of bond prices also apply to U.S. Government securities. A security backed by the “full faith </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and credit” of the U.S. Government is guaranteed only as to its stated interest rate and face value at maturity, not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">its current market price. Just like other fixed-income securities, government-guaranteed securities will fluctuate in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">value when interest rates change.</span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">A general rise in interest rates has the potential to cause investors to move out of fixed-income securities on a large </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">scale, which may increase redemptions from funds that hold large amounts of fixed-income securities. Heavy </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">redemptions could cause the Fund to sell assets at inopportune times or at a loss or depressed value and could </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">hurt the Fund’s performance.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Extension Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — When interest rates rise, certain obligations will be paid off by the obligor more slowly than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">anticipated, causing the value of these obligations to fall.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Prepayment Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — When interest rates fall, certain obligations will be paid off by the obligor more quickly than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">originally anticipated, and the Fund may have to invest the proceeds in securities with lower yields.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Allocation Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund’s ability to achieve its investment objective depends upon BlackRock’s skill in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">determining the Fund’s strategic asset class allocation and in selecting the best mix of underlying funds and direct </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments. There is a risk that BlackRock’s evaluations and assumptions regarding asset classes or underlying </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">funds may be incorrect in view of actual market conditions.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Collateralized Debt Obligations Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— In addition to the typical risks associated with fixed-income securities and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">asset-backed securities, CDOs, including collateralized loan obligations, carry additional risks including, but not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other payments; (ii) the risk that the collateral may default or decline in value or be downgraded, if rated by a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">nationally recognized statistical rating organization; (iii) the Fund may invest in tranches of CDOs that are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">subordinate to other tranches; (iv) the structure and complexity of the transaction and the legal documents could </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">lead to disputes among investors regarding the characterization of proceeds; (v) the investment return achieved by </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund could be significantly different than those predicted by financial models; (vi) the lack of a readily available </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">secondary market for CDOs; (vii) the risk of forced “fire sale” liquidation due to technical defaults such as coverage </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">test failures; and (viii) the CDO’s manager may perform poorly.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Commodities Related Investments Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">— </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Exposure to the commodities markets may subject the Fund to greater </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">volatility than investments in traditional securities. The value of commodity-linked derivative investments may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">affected by changes in overall market movements, commodity index volatility, changes in inflation, interest rates, or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">factors affecting a particular industry or commodity, such as drought, floods, weather, embargoes, tariffs and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">international economic, political and regulatory developments.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Convertible Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The market value of a convertible security performs like that of a regular debt </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition, convertible </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities are subject to the risk that the issuer will not be able to pay interest, principal or dividends when due, and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">their market value may change based on changes in the issuer’s credit rating or the market’s perception of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuer’s creditworthiness. Since it derives a portion of its value from the common stock into which it may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">converted, a convertible security is also subject to the same types of market and issuer risks that apply to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">underlying common stock, including the potential for increased volatility in the price of the convertible security.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Corporate Loans Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Commercial banks and other financial institutions or institutional investors make corporate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">loans to companies that need capital to grow or restructure. Borrowers generally pay interest on corporate loans at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">rates that change in response to changes in market interest rates such as the Secured Overnight Financing Rate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">SOFR</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">) or the prime rates of U.S. banks. As a result, the value of corporate loan investments is generally less </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposed to the adverse effects of shifts in market interest rates than investments that pay a fixed rate of interest. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The market for corporate loans may be subject to irregular trading activity and wide bid/ask spreads. In addition, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">transactions in corporate loans may settle on a delayed basis. As a result, the proceeds from the sale of corporate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">loans may not be readily available to make additional investments or to meet the Fund’s redemption obligations. To </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the extent the extended settlement process gives rise to short-term liquidity needs, the Fund may hold additional </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cash, sell investments or temporarily borrow from banks and other lenders. The corporate loans in which the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">invests are usually rated below investment grade.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Counterparty Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The counterparty to an over-the-counter derivatives contract or a borrower of the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities may be unable or unwilling to make timely principal, interest or settlement payments, or otherwise to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">honor its obligations. Any such failure to honor its obligations may cause significant losses to the Fund.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Depositary Receipts Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Depositary receipts are generally subject to the same risks as the foreign securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that they evidence or into which they may be converted. In addition to investment risks associated with the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">underlying issuer, depositary receipts expose the Fund to additional risks associated with the non-uniform terms </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that apply to depositary receipt programs, credit exposure to the depository bank and to the sponsors and other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">parties with whom the depository bank establishes the programs, currency risk and the risk of an illiquid market for </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">depositary receipts. The issuers of unsponsored depositary receipts are not obligated to disclose information that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">is, in the United States, considered material. Therefore, there may be less information available regarding these </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuers and there may not be a correlation between such information and the market value of the depositary </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">receipts. While depositary receipts provide an alternative to directly purchasing underlying foreign securities in their </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">respective markets and currencies, they continue to be subject to many of the risks associated with investing </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">directly in foreign securities, including political, economic, and currency risk.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Distressed Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Distressed securities are speculative and involve substantial risks in addition to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risks of investing in junk bonds. The Fund will generally not receive interest payments on the distressed securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and may incur costs to protect its investment. In addition, distressed securities involve the substantial risk that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">principal will not be repaid. These securities may present a substantial risk of default or may be in default at the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">time of investment. The Fund may incur additional expenses to the extent it is required to seek recovery upon a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">default in the payment of principal of or interest on its portfolio holdings. In any reorganization or liquidation </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">proceeding relating to a portfolio company, the Fund may lose its entire investment or may be required to accept </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cash or securities with a value less than its original investment. Distressed securities and any securities received in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">an exchange for such securities may be subject to restrictions on resale.</span> <br/><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Dollar Rolls Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Dollar rolls involve the risk that the market value of the securities that the Fund is committed to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">buy may decline below the price of the securities the Fund has sold. These transactions may involve leverage.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Emerging Markets Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Emerging markets are riskier than more developed markets because they tend to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">develop unevenly and may never fully develop. Investments in emerging markets may be considered speculative. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Emerging markets are more likely to experience hyperinflation and currency devaluations, which adversely affect </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">returns to U.S. investors. In addition, many emerging financial markets have far lower trading volumes and less </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">liquidity than developed markets.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Foreign Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Foreign investments often involve special risks not present in U.S. investments that can </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">increase the chances that the Fund will lose money. These risks include:</span></div> </div> <div style="clear: both; position: relative;"> </div> </div><div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; margin-left: 12pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 493.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund generally holds its foreign securities and cash in foreign banks and securities depositories, which may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">be recently organized or new to the foreign custody business and may be subject to only limited or no regulatory </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">oversight.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div><div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; margin-left: 12pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 493.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Changes in foreign currency exchange rates can affect the value of the Fund’s portfolio.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div><div> <div style="clear: both; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; margin-left: 12pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 493.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The economies of certain foreign markets may not compare favorably with the economy of the United States with </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">respect to such issues as growth of gross national product, reinvestment of capital, resources and balance of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">payments position.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div><div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; margin-left: 12pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 493.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The governments of certain countries, or the U.S. Government with respect to certain countries, may prohibit or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">impose substantial restrictions through capital controls and/or sanctions on foreign investments in the capital </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">markets or certain industries in those countries, which may prohibit or restrict the ability to own or transfer </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">currency, securities, derivatives or other assets.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div><div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; margin-left: 12pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 493.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Many foreign governments do not supervise and regulate stock exchanges, brokers and the sale of securities to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the same extent as does the United States and may not have laws to protect investors that are comparable to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">U.S. securities laws.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div><div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; margin-left: 12pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 493.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Settlement and clearance procedures in certain foreign markets may result in delays in payment for or delivery of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities not typically associated with settlement and clearance of U.S. investments.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div><div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; margin-left: 12pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 493.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund’s claims to recover foreign withholding taxes may not be successful, and if the likelihood of recovery of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">foreign withholding taxes materially decreases, due to, for example, a change in tax regulation or approach in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">foreign country, accruals in the Fund’s net asset value for such refunds may be written down partially or in full, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">which will adversely affect the Fund’s net asset value.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">High Portfolio Turnover Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund may engage in active and frequent trading of its portfolio securities. High </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">portfolio turnover (more than 100%) may result in increased transaction costs to the Fund, including brokerage </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commissions, dealer mark-ups and other transaction costs on the sale of the securities and on reinvestment in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other securities. The sale of Fund portfolio securities may result in the realization and/or distribution to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders of higher capital gains or losses as compared to a fund with less active trading policies. These effects </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of higher than normal portfolio turnover may adversely affect Fund performance.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">High Yield Bonds Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Although junk bonds generally pay higher rates of interest than investment grade bonds, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">junk bonds are high risk investments that are considered speculative and may cause income and principal losses </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for the Fund.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Illiquid Investments Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund may not acquire any illiquid investment if, immediately after the acquisition, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund would have invested more than 15% of its net assets in illiquid investments. An illiquid investment is any </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">calendar days or less without the sale or disposition significantly changing the market value of the investment. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Subsidiary will also limit its investment in illiquid investments to 15% of its net assets. In applying the illiquid </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments restriction to the Fund, the Fund’s investment in the Subsidiary is considered to be liquid. Liquid </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments may become illiquid after purchase by the Fund, particularly during periods of market turmoil. There can </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">be no assurance that a security or instrument that is deemed to be liquid when purchased will continue to be liquid </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for as long as it is held by the Fund, and any security or instrument held by the Fund may be deemed an illiquid </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment pursuant to the Fund’s liquidity risk management program. The Fund’s illiquid investments may reduce </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the returns of the Fund because it may be difficult to sell the illiquid investments at an advantageous time or price. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">In addition, if the Fund is limited in its ability to dispose of illiquid investments during periods when shareholders </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are redeeming or selling their shares or the Fund’s net assets otherwise shrink,, the Fund will need to dispose of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">liquid securities to meet redemption requests and illiquid securities will become a larger portion of the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">holdings. An investment may be illiquid due to, among other things, the reduced number and capacity of traditional </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market participants to make a market in fixed-income securities or the lack of an active trading market. To the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">extent that the Fund’s principal investment strategies involve derivatives or securities with substantial market and/</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or credit risk, the Fund will tend to have greater exposure to the risks associated with illiquid investments. Illiquid </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments may be harder to value, especially in changing markets, and if the Fund is forced to sell these </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments to meet redemption requests or for other cash needs, the Fund may suffer a loss. This may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">magnified in a rising interest rate environment or other circumstances where investor redemptions or sales of Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares may be higher than normal. In addition, when there is illiquidity in the market for certain securities, the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund, due to limitations on illiquid investments, may be subject to purchase and sale restrictions.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Indexed and Inverse Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Indexed and inverse securities provide a potential return based on a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">particular index of value or interest rates. The Fund’s return on these securities will be subject to risk with respect </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to the value of the particular index. These securities are subject to leverage risk and correlation risk. Certain </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">indexed and inverse securities have greater sensitivity to changes in interest rates or index levels than other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities, and the Fund’s investment in such instruments may decline significantly in value if interest rates or index </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">levels move in a way Fund management does not anticipate.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Inflation-Indexed Bonds Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The principal value of an investment in the Fund is not protected or otherwise </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">guaranteed by virtue of any investments by the Fund in inflation-indexed bonds. The value of inflation-indexed </span></div> </div> <div style="clear: both; position: relative;"> </div> </div><div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities generally fluctuates with changes in real interest rates, decreasing when real interest rates rise and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">increasing when real interest rates fall. Real interest rates represent nominal (or stated) interest rates minus the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">inflation rates. If the Fund purchases TIPS in the secondary market and the bonds’ principal values previously were </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">adjusted upward, but then there is a period of declining inflation rates, the Fund may receive at maturity less than it </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">invested.</span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">In addition, interest payments on inflation-indexed securities generally vary up or down along with the rate of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">inflation, and inflation-indexed bonds typically have lower nominal yields than conventional fixed-rate bonds. If the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">index measuring inflation falls, the principal value of inflation-indexed bonds will be adjusted downward, and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reduced.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income, even </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">though investors do not receive their principal until maturity. Periodic adjustments for inflation to the principal </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">amount of an inflation-indexed bond may give rise to original issue discount, which will be includable in the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">gross income. Due to original issue discount, the Fund may be required to make annual distributions to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders that exceed the cash received, which may cause the Fund to liquidate certain investments when it is </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">not advantageous to do so. Also, if the principal value of an inflation-indexed bond is adjusted downward due to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">deflation, amounts previously distributed in the taxable year may be characterized in some circumstances as a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">return of capital.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Investment Style Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Under certain market conditions, growth investments have performed better during the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">later stages of economic expansion and value investments have performed better during periods of economic </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">recovery. Therefore, these investment styles may over time go in and out of favor. At times when the investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">style used by the Fund is out of favor, the Fund may underperform other equity funds that use different investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">styles.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Leverage Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Some transactions may give rise to a form of economic leverage. These transactions may include, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">among others, derivatives, and may expose the Fund to greater risk and increase its costs. The use of leverage may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to meet the applicable requirements of the Investment Company Act of 1940, as amended (the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Company Act</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">) and the rules thereunder. Increases and decreases in the value of the Fund’s portfolio will be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">magnified when the Fund uses leverage.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Market Risk and Selection Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Market risk is the risk that one or more markets in which the Fund invests will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">go down in value, including the possibility that the markets will go down sharply and unpredictably. Securities or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other investments held by the Fund may underperform the markets, the relevant indices or benchmarks, or the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities selected by other funds with similar investment objectives and investment strategies, or may otherwise </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fail to perform as intended. The value of a security or other asset may decline due to changes in general market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">conditions, economic trends or events that are not specifically related to the issuer of the security or other asset, or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">factors that affect a particular issuer or issuers, exchange, country, group of countries, region, market, industry, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">group of industries, sector or asset class. The success of the Fund’s activities could be affected by interest rates, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">availability of credit, inflation rates, economic uncertainty, changes in laws, tariffs and trade barriers, supply chain </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">disruptions, economic sanctions, currency exchange controls, and local, regional or global events such as war, acts </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of terrorism, natural and environmental disasters, the spread of infectious illness or other public health issues like </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">pandemics or epidemics, recessions, or other events.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Recent policy initiatives undertaken by the U.S. government have the potential to impact international relations, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">trade agreements and the overall regulatory environment in ways that could create uncertainty and instability in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">domestic and global markets, and could adversely affect the investment performance of the Fund. In particular, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">actions taken by the U.S. government in respect of international trade relations could lead to trade wars, increased </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">costs for imported goods, disruptions in supply chains, reduced foreign investment, and instability in regions where </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund invests.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Mid Cap Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The securities of mid cap companies generally trade in lower volumes and are generally </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">subject to greater and less predictable price changes than the securities of larger capitalization companies.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Money Market Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— If market conditions improve while the Fund has invested some or all of its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">assets in high quality money market securities, this strategy could result in reducing the potential gain from the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market upswing, thus reducing the Fund’s opportunity to achieve its investment objective.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Mortgage- and Asset-Backed Securities Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Mortgage- and asset-backed securities represent interests in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“pools” of mortgages or other assets, including consumer loans or receivables held in trust. Mortgage- and asset-</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">backed securities are subject to credit, interest rate, prepayment and extension risks. These securities also are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">subject to risk of default on the underlying mortgage or asset, particularly during periods of economic downturn. </span></div> </div> <div style="clear: both; position: relative;"> </div> </div><div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">certain mortgage-backed securities.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Municipal Securities Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Municipal securities risks include the ability of the issuer to repay the obligation, the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">relative lack of information about certain issuers of municipal securities, and the possibility of future legislative </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">changes which could affect the market for and value of municipal securities. Budgetary constraints of local, state, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and federal governments upon which the issuers may be relying for funding may also impact municipal securities. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">These risks include:</span></div> </div> <div style="clear: both; position: relative;"> </div> </div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">General Obligation Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Timely payments depend on the issuer’s credit quality, ability to raise tax </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">revenues and ability to maintain an adequate tax base.</span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Revenue Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> These payments depend on the money earned by the particular facility or class of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">facilities, or the amount of revenues derived from another source.</span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Private Activity Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Municipalities and other public authorities issue private activity bonds to finance </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">development of industrial facilities for use by a private enterprise. The private enterprise pays the principal and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interest on the bond, and the issuer does not pledge its full faith, credit and taxing power for repayment.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Moral Obligation Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Moral obligation bonds are generally issued by special purpose public authorities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of a state or municipality. If the issuer is unable to meet its obligations, repayment of these bonds becomes a moral </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commitment, but not a legal obligation, of the state or municipality.</span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Municipal Notes Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Municipal notes are shorter term municipal debt obligations. If there is a shortfall in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">anticipated proceeds, the notes may not be fully repaid and the Fund may lose money.</span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Municipal Lease Obligations Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> In a municipal lease obligation, the issuer agrees to make payments when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">due on the lease obligation. Although the issuer does not pledge its unlimited taxing power for payment of the lease </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">obligation, the lease obligation is secured by the leased property.</span></div><div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Tax-Exempt Status Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The Fund and its investment manager will rely on the opinion of issuers’ bond counsel </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and, in the case of derivative securities, sponsors’ counsel, on the tax-exempt status of interest on municipal bonds </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and payments under derivative securities. Neither the Fund nor its investment manager will independently review the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">bases for those tax opinions, which may ultimately be determined to be incorrect and subject the Fund and its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders to substantial tax liabilities.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Operational and Technology Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund is directly and indirectly susceptible to operational and technology </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risks, including those related to human errors, processing errors, communication errors, systems failures, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cybersecurity incidents, and the use of artificial intelligence and machine learning (“AI”), which may result in losses </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for the Fund and its shareholders or may impair the Fund’s operations. While the Fund’s service providers are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">required to have appropriate operational, information security and cybersecurity risk management policies and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">procedures, their methods of risk management may differ from those of the Fund. Operational and technology risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for the issuers in which the Fund invests could also result in material adverse consequences for such issuers and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may cause the Fund’s investments in such issuers to lose value.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Preferred Securities Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Preferred securities may pay fixed or adjustable rates of return. Preferred securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are subject to issuer-specific and market risks applicable generally to equity securities. In addition, a company’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">preferred securities generally pay dividends only after the company makes required payments to holders of its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">bonds and other debt. For this reason, the value of preferred securities will usually react more strongly than bonds </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and other debt to actual or perceived changes in the company’s financial condition or prospects. Preferred </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities of smaller companies may be more vulnerable to adverse developments than preferred securities of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">larger companies.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Real Estate-Related Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The main risk of real estate-related securities is that the value of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">underlying real estate may go down. Many factors may affect real estate values. These factors include both the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">general and local economies, vacancy rates, changes in rent schedules, tenant bankruptcies, the ability to re-lease </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">space under expiring leases on attractive terms, the amount of new construction in a particular area, the laws and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">regulations (including zoning, environmental and tax laws) affecting real estate and the costs of owning, maintaining </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and improving real estate. The availability of mortgage financing and changes in interest rates may also affect real </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">estate values. If the Fund’s real estate-related investments are concentrated in one geographic area or in one </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">property type, the Fund will be particularly subject to the risks associated with that area or property type. Many </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuers of real estate-related securities are highly leveraged, which increases the risk to holders of such securities. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The value of the securities the Fund buys will not necessarily track the value of the underlying investments of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuers of such securities. In addition, certain issuers of real estate-related securities may have developed or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commenced development on properties and may develop additional properties in the future. Real estate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">development involves significant risks in addition to those involved in the ownership and operation of established </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">properties. Real estate securities may have limited diversification and are, therefore, subject to risks inherent in </span></div> </div> <div style="clear: both; position: relative;"> </div> </div><div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">operating and financing a limited number of projects. Real estate securities are also subject to heavy cash flow </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">dependency and defaults by borrowers or tenants.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">REIT Investment Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Investments in REITs involve unique risks. REITs may have limited financial resources, may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">trade less frequently and in limited volume, may engage in dilutive offerings of securities and may be more volatile </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">than other securities. REIT issuers may also fail to maintain their exemptions from investment company registration </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or fail to qualify for the “dividends paid deduction” under the Internal Revenue Code of 1986, as amended (the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“Internal Revenue Code”), which allows REITs to reduce their corporate taxable income for dividends paid to their </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Repurchase Agreements and Purchase and Sale Contracts Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — If the other party to a repurchase agreement or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">purchase and sale contract defaults on its obligation under the agreement, the Fund may suffer delays and incur </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">costs or lose money in exercising its rights under the agreement. If the seller fails to repurchase the security in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">either situation and the market value of the security declines, the Fund may lose money.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Reverse Repurchase Agreements Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Reverse repurchase agreements involve the sale of securities held by the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund with an agreement to repurchase the securities at an agreed-upon price, date and interest payment. Reverse </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">repurchase agreements involve the risk that the other party may fail to return the securities in a timely manner or at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">all. The Fund could lose money if it is unable to recover the securities and the value of the collateral held by the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund, including the value of the investments made with cash collateral, is less than the value of the securities. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">These events could also trigger adverse tax consequences for the Fund. In addition, reverse repurchase agreements </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">involve the risk that the interest income earned in the investment of the proceeds will be less than the interest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">expense.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Risk of Investing in the United States </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Certain changes in the U.S. economy, such as when the U.S. economy </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">weakens or when its financial markets decline, may have an adverse effect on the securities to which the Fund has </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposure.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Risks of Loan Assignments and Participations </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— As the purchaser of an assignment, the Fund typically succeeds </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to all the rights and obligations of the assigning institution and becomes a lender under the credit agreement with </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">respect to the debt obligation; however, the Fund may not be able unilaterally to enforce all rights and remedies </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">under the loan and with regard to any associated collateral. Because assignments may be arranged through private </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">negotiations between potential assignees and potential assignors, the rights and obligations acquired by the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">as the purchaser of an assignment may differ from, and be more limited than, those held by the assigning lender. In </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">addition, if the loan is foreclosed, the Fund could become part owner of any collateral and could bear the costs and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">liabilities of owning and disposing of the collateral. The Fund may be required to pass along to a purchaser that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">buys a loan from the Fund by way of assignment a portion of any fees to which the Fund is entitled under the loan. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">borrower with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and the Fund may not directly benefit from any collateral supporting the loan in which it has purchased the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">participation. As a result, the Fund will be subject to the credit risk of both the borrower and the lender that is </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">selling the participation. In the event of the insolvency of the lender selling a participation, the Fund may be treated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">as a general creditor of the lender and may not benefit from any set-off between the lender and the borrower.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Second Lien Loans Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Second lien loans generally are subject to similar risks as those associated with </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments in senior loans. Because second lien loans are subordinated or unsecured and thus lower in priority of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">payment to senior loans, they are subject to the additional risk that the cash flow of the borrower and property </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securing the loan or debt, if any, may be insufficient to meet scheduled payments after giving effect to the senior </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">secured obligations of the borrower.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Senior Loans Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — There is less readily available, reliable information about most senior loans than is the case </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for many other types of securities. An economic downturn generally leads to a higher non-payment rate, and a senior </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">loan may lose significant value before a default occurs. Moreover, any specific collateral used to secure a senior </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">loan may decline in value or become illiquid, which would adversely affect the senior loan’s value. No active trading </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market may exist for certain senior loans, which may impair the ability of the Fund to realize full value in the event </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of the need to sell a senior loan and which may make it difficult to value senior loans. Although senior loans in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">which the Fund will invest generally will be secured by specific collateral, there can be no assurance that liquidation </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of such collateral would satisfy the borrower’s obligation in the event of non-payment of scheduled interest or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">principal or that such collateral could be readily liquidated. To the extent that a senior loan is collateralized by stock </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in the borrower or its subsidiaries, such stock may lose all of its value in the event of the bankruptcy of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">borrower. Uncollateralized senior loans involve a greater risk of loss. The senior loans in which the Fund invests are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">usually rated below investment grade.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Short Sales and Short Position Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Because making short sales or taking short positions in securities that it </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">does not own would expose the Fund to the risks associated with those securities, such short sales or positions </span></div> </div> <div style="clear: both; position: relative;"> </div> </div><div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">involve speculative exposure risk. In such situations, the Fund will incur a loss as a result of a short sale or position </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">if the price of the reference instrument increases after the Fund entered into the short sale or position. The Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may engage in short sales and gain short exposure through certain derivative instruments, such as futures, options </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or swaps. The Fund may lose more money than the actual cost of a short sale or position and the potential losses </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are theoretically unlimited on a short sale or position.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Small Cap and Emerging Growth Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Small cap or emerging growth companies may have limited </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">product lines or markets. They may be less financially secure than larger, more established companies. They may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">depend on a more limited management group than larger capitalized companies.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Sovereign Debt Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Sovereign debt instruments are subject to the risk that a governmental entity may delay or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">refuse to pay interest or repay principal on its sovereign debt, due, for example, to cash flow problems, insufficient </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">foreign currency reserves, political considerations, the relative size of the governmental entity’s debt position in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">relation to the economy or the failure to put in place economic reforms required by the International Monetary Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or other multilateral agencies.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Structured Notes Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Structured notes and other related instruments purchased by the Fund are generally </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">privately negotiated debt obligations where the principal and/or interest is determined by reference to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">performance of a specific asset, benchmark asset, market or interest rate (“reference measure”). The purchase of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">structured notes exposes the Fund to the credit risk of the issuer of the structured product. Structured notes may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">be leveraged, increasing the volatility of each structured note’s value relative to the change in the reference </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">measure. Structured notes may also be less liquid and more difficult to price accurately than less complex </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities and instruments or more traditional debt securities.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Structured Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Because structured securities of the type in which the Fund may invest typically </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">involve no credit enhancement, their credit risk generally will be equivalent to that of the underlying instruments, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">index or reference obligation and will also be subject to counterparty risk. The Fund may have the right to receive </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">payments only from the structured security, and generally does not have direct rights against the issuer or the entity </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that sold the assets to be securitized. In addition to the general risks associated with debt securities discussed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">herein, structured securities carry additional risks, including, but not limited to: the possibility that distributions </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">from collateral securities will not be adequate to make interest or other payments; the quality of the collateral may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">decline in value or default; and the possibility that the structured securities are subordinate to other classes. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund is permitted to invest in a class of structured securities that is either subordinated or unsubordinated to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">right of payment of another class. Subordinated structured securities typically have higher yields and present </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">greater risks than unsubordinated structured securities. Structured securities are typically sold in private placement </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">transactions, and there currently is no active trading market for structured securities. Structured securities are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">based upon the movement of one or more factors, including currency exchange rates, interest rates, reference </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">bonds and stock indices, and changes in interest rates and impact of these factors may cause significant price </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fluctuations. Additionally, changes in the reference instrument or security may cause the interest rate on the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">structured security to be reduced to zero. Certain issuers of such structured securities may be deemed to be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“investment companies” as defined in the Investment Company Act. As a result, the Fund’s investment in such </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities may be limited by certain investment restrictions contained in the Investment Company Act.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Subsidiary Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — By investing in the Subsidiary, the Fund is indirectly exposed to the risks associated with the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Subsidiary’s investments. The commodity-related instruments held by the Subsidiary are generally similar to those </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that are permitted to be held by the Fund and are subject to the same risks that apply to similar investments if held </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">directly by the Fund (see “Commodities Related Investments Risk” above). There can be no assurance that the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment objective of the Subsidiary will be achieved. The Subsidiary is not registered under the Investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Company Act, and, unless otherwise noted in this prospectus, is not subject to all the investor protections of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Investment Company Act. However, the Fund wholly owns and controls the Subsidiary, and the Fund and the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Subsidiary are both managed by BlackRock, making it unlikely that the Subsidiary will take action contrary to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interests of the Fund and its shareholders. The Board has oversight responsibility for the investment activities of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund, including its investment in the Subsidiary, and the Fund’s role as sole shareholder of the Subsidiary. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Subsidiary is subject to the same investment restrictions and limitations, and follows the same compliance policies </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and procedures, as the Fund except that the Subsidiary may invest without limitation in commodity-related </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">instruments. Changes in the laws of the United States and/or the Cayman Islands could result in the inability of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund and/or the Subsidiary to operate as described in this prospectus and the SAI and could adversely affect the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Supranational Entities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund may invest in obligations issued or guaranteed by the World Bank. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">government members, or “stockholders,” usually make initial capital contributions to the World Bank and in many </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cases are committed to make additional capital contributions if the World Bank is unable to repay its borrowings. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">There is no guarantee that one or more stockholders of the World Bank will continue to make any necessary </span></div> </div> <div style="clear: both; position: relative;"> </div> </div><div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">additional capital contributions. If such contributions are not made, the entity may be unable to pay interest or repay </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">principal on its debt securities, and the Fund may lose money on such investments.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Tender Option Bonds and Related Securities Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The Fund’s participation in tender option bond transactions </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may reduce the Fund’s returns and/or increase volatility. Investments in tender option bond transactions expose the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund to counterparty risk and leverage risk. An investment in a tender option bond transaction typically will involve </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">greater risk than an investment in a municipal fixed rate security, including the risk of loss of principal. Distributions </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">on residual inverse floating rate interests (“TOB Residuals”) will bear an inverse relationship to short-term municipal </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security interest rates. Distributions on TOB Residuals paid to the Fund will be reduced or, in the extreme, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">eliminated as short-term municipal interest rates rise and will increase when short-term municipal interest rates </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fall. TOB Residuals generally will underperform the market for fixed rate municipal securities in a rising interest rate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">environment. The Fund may invest in special purpose entities (“TOB Trusts”) on either a non-recourse or recourse </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">basis. If the Fund invests in a TOB Trust on a recourse basis, it could suffer losses in excess of the value of its TOB </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Residuals.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">U.S. Government Mortgage-Related Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— There are a number of important differences among the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">agencies and instrumentalities of the U.S. Government that issue mortgage-related securities and among the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities that they issue. Mortgage-related securities guaranteed by the Government National Mortgage </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Association (</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">GNMA</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Ginnie Mae</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">) are guaranteed as to the timely payment of principal and interest by GNMA </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and such guarantee is backed by the full faith and credit of the United States. GNMA securities also are supported </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">by the right of GNMA to borrow funds from the U.S. Treasury to make payments under its guarantee. Mortgage-</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">related securities issued by Fannie Mae or Freddie Mac are solely the obligations of Fannie Mae or Freddie Mac, as </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the case may be, and are not backed by or entitled to the full faith and credit of the United States but are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">supported by the right of the issuer to borrow from the Treasury.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">U.S. Government Obligations Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Certain securities in which the Fund may invest, including securities issued by </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">certain U.S. Government agencies and U.S. Government sponsored enterprises, are not guaranteed by the U.S. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Government or supported by the full faith and credit of the United States. In addition, circumstances could arise </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that could prevent the timely payment of interest or principal on U.S. Government obligations, such as reaching the</span> <br/><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">legislative “debt ceiling.” Such non-payment could result in losses to the Fund and substantial negative </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">consequences for the U.S. economy and the global financial system.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Variable and Floating Rate Instrument Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Variable and floating rate securities provide for periodic adjustment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in the interest rate paid on the securities. Securities with floating or variable interest rates can be less sensitive to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interest rate changes than securities with fixed interest rates, but may decline in value if their coupon rates do not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reset as high, or as quickly, as comparable market interest rates, and generally carry lower yields than fixed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities of the same maturity. These securities will not generally increase in value if interest rates decline. A </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">decline in interest rates may result in a reduction in income received from variable and floating rate securities held </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">by the Fund and may adversely affect the value of the Fund’s shares. These securities may be subject to greater </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">illiquidity risk than other fixed income securities, meaning the absence of an active market for these securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">could make it difficult for the Fund to dispose of them at any given time. Floating rate securities generally are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">subject to legal or contractual restrictions on resale, may trade infrequently, and their value may be impaired when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund needs to liquidate such loans. Benchmark interest rates may not accurately track market interest rates. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Although floating rate securities are less sensitive to interest rate risk than fixed-rate securities, they are subject to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">credit risk and default risk, which could impair their value.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Warrants Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— If the price of the underlying stock does not rise above the exercise price before the warrant </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">expires, the warrant generally expires without any value and the Fund will lose any amount it paid for the warrant. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Thus, investments in warrants may involve substantially more risk than investments in common stock. Warrants </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may trade in the same markets as their underlying stock; however, the price of the warrant does not necessarily </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">move with the price of the underlying stock.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Zero Coupon Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> While interest payments are not made on such securities, holders of such </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities are deemed to have received income (“phantom income”) annually, notwithstanding that cash may not be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">received currently. The effect of owning instruments that do not make current interest payments is that a fixed yield </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">is earned not only on the original investment but also, in effect, on all discount accretion during the life of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">obligations. This implicit reinvestment of earnings at a fixed rate eliminates the risk of being unable to invest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">distributions at a rate as high as the implicit yield on the zero coupon bond, but at the same time eliminates the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">holder’s ability to reinvest at higher rates in the future. For this reason, some of these securities may be subject to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">substantially greater price fluctuations during periods of changing market interest rates than are comparable </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities that pay interest currently. Longer term zero coupon bonds are more exposed to interest rate risk than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shorter term zero coupon bonds. These investments benefit the issuer by mitigating its need for cash to meet debt </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">service, but also require a higher rate of return to attract investors who are willing to defer receipt of cash.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> Performance Information <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Effective May 15, 2012 through January 28, 2016, the Fund changed its investment strategy to invest a significant </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">portion of its assets in other investment companies and directly in securities. Performance shown below for this time </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">period is based on the investment strategy utilized by the Fund during the time period.</span></div><div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The information shows you how the Fund’s performance has varied year by year and provides some indication of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risks of investing in the Fund. The table compares the Fund’s performance to that of the MSCI All Country World Index </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(Net). The table also compares the Fund’s performance to the Bloomberg 1-3 Year Treasury Bond Index, the ICE BofA </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">3-Month U.S. Treasury Bill Index and a customized weighted index comprised of 25% MSCI All Country World Index </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(Net)/75% Bloomberg 1-3 Year Treasury Bond Index, each of which is relevant to the Fund because it has </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">characteristics similar to the Fund’s investment strategy. To the extent that dividends and distributions have been paid </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">by the Fund, the performance information for the Fund in the chart and table assumes reinvestment of the dividends </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and distributions. As with all such investments, past performance (before and after taxes) is not an indication of future </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">results. The table includes all applicable fees. If BlackRock and its affiliates had not waived or reimbursed certain </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund expenses during these periods, the Fund’s returns would have been lower. Updated information on the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">performance, including its current net asset value, can be obtained by visiting www.blackrock.com or can be obtained </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">by phone at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(800) 882-0052</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">.</span></div> The information shows you how the Fund’s performance has varied year by year and provides some indication of the risks of investing in the Fund. The table compares the Fund’s performance to that of the MSCI All Country World Index (Net). The table also compares the Fund’s performance to the Bloomberg 1-3 Year Treasury Bond Index, the ICE BofA 3-Month U.S. Treasury Bill Index and a customized weighted index comprised of 25% MSCI All Country World Index (Net)/75% Bloomberg 1-3 Year Treasury Bond Index, each of which is relevant to the Fund because it has characteristics similar to the Fund’s investment strategy. As with all such investments, past performance (before and after taxes) is not an indication of future results. www.blackrock.com (800) 882-0052 Service Shares ANNUAL TOTAL RETURNS BlackRock Tactical Opportunities Fund As of 12/31 <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">During the ten-year period shown in the bar chart, the highest return for a quarter was 7.00% (quarter ended </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">March 31, 2024) and the lowest return for a quarter was -2.45% (quarter ended December 31, 2018). The year-to-date return</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> as of June 30, 2026 was 9.25%.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> highest return 0.0700 2024-03-31 lowest return -0.0245 2018-12-31 year-to-date return 2026-06-30 0.0925 For the periods ended 12/31/25Average Annual Total Returns 0.0621 0.0521 0.0460 0.0621 0.0401 0.0340 0.0368 0.0349 0.0309 0.2234 0.1119 0.1172 0.0517 0.0175 0.0183 0.0418 0.0317 0.0218 0.0932 0.0421 0.0443 <div style="margin-top: 12pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 60, BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange-traded funds (“ETFs”) managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2028. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. On December 1, 2023, the Fund began to compare its performance to the standard pricing time of the ICE BofA 3-Month U.S. Treasury Bill Index (the “Index”). Index data prior to March 1, 2021 is for the Index’s standard pricing time of 3pm. Index data from March 1, 2021 through November 30, 2023 is for a custom 4pm pricing variant of the Index. Index returns beginning on December 1, 2023 reflect the Index’s new standard pricing time of 4pm. The change of the Index’s standard pricing time from 3pm to 4pm resulted in the discontinuation of the custom 4pm pricing variant used from March 1, 2021 through November 30, 2023. Returns for net indices generally assume the reinvestment of dividends after the deduction of the maximum withholding tax in each country applicable to non-residents of the country as determined by the index provider. Such indices use withholding tax rates that are often at a higher rate than the rates to which the Fund is subject in each country, including for countries where the Fund is not subject to withholding taxes. When this is the case, index performance will be lower than if the index used the Fund’s applicable withholding tax rates, if any. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 48, BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange-traded funds (“ETFs”) managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2028. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. The Total Annual Fund Operating Expenses does not correlate to the ratio of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which does not include Acquired Fund Fees and Expenses. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 48, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) to 1.17% of average daily net assets through June 30, 2028. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. Returns for net indices generally assume the reinvestment of dividends after the deduction of the maximum withholding tax in each country applicable to non-residents of the country as determined by the index provider. Such indices use withholding tax rates that are often at a higher rate than the rates to which the Fund is subject in each country, including for countries where the Fund is not subject to withholding taxes. When this is the case, index performance will be lower than if the index used the Fund’s applicable withholding tax rates, if any. On December 1, 2023, the Fund began to compare its performance to the standard pricing time of the ICE BofA 3-Month U.S. Treasury Bill Index (the “Index”). Index data prior to March 1, 2021 is for the Index’s standard pricing time of 3pm. Index data from March 1, 2021 through November 30, 2023 is for a custom 4pm pricing variant of the Index. Index returns beginning on December 1, 2023 reflect the Index’s new standard pricing time of 4pm. The change of the Index’s standard pricing time from 3pm to 4pm resulted in the discontinuation of the custom 4pm pricing variant used from March 1, 2021 through November 30, 2023. The Total Annual Fund Operating Expenses do not correlate to the ratios of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which do not include Acquired Fund Fees and Expenses. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 60, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) to 1.37% (for Investor A Shares), 2.14% (for Investor C Shares) and 0.89% (for Institutional Shares) of average daily net assets through June 30, 2028. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. A contingent deferred sales charge (“CDSC”) of 0.75% is assessed on certain redemptions of Investor A Shares made within 18 months after purchase where no initial sales charge was paid at the time of purchase as part of an investment of $1,000,000 or more. Returns for net indices generally assume the reinvestment of dividends after the deduction of the maximum withholding tax in each country applicable to non-residents of the country as determined by the index provider. Such indices use withholding tax rates that are often at a higher rate than the rates to which the Fund is subject in each country, including for countries where the Fund is not subject to withholding taxes. When this is the case, index performance will be lower than if the index used the Fund’s applicable withholding tax rates, if any. On December 1, 2023, the Fund began to compare its performance to the standard pricing time of the ICE BofA 3-Month U.S. Treasury Bill Index (the “Index”). Index data prior to March 1, 2021 is for the Index’s standard pricing time of 3pm. Index data from March 1, 2021 through November 30, 2023 is for a custom 4pm pricing variant of the Index. Index returns beginning on December 1, 2023 reflect the Index’s new standard pricing time of 4pm. The change of the Index’s standard pricing time from 3pm to 4pm resulted in the discontinuation of the custom 4pm pricing variant used from March 1, 2021 through November 30, 2023. There is no CDSC on Investor C Shares after one year. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 50, BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange-traded funds (“ETFs”) managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2028. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. The Total Annual Fund Operating Expenses does not correlate to the ratio of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which does not include Acquired Fund Fees and Expenses. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 50, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) to 0.84% of average daily net assets through June 30, 2028. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund.