0001051003 2026-01-01 2026-06-30 0001051003 bdsfi:CommonSharesMember 2026-01-01 2026-06-30 0001051003 bdsfi:CounterpartyCreditRiskMember 2026-01-01 2026-06-30 0001051003 bdsfi:GeographicAssetClassRiskMember 2026-01-01 2026-06-30 0001051003 bdsfi:IlliquidityRiskMember 2026-01-01 2026-06-30 0001051003 bdsfi:MarketRisksMember 2026-01-01 2026-06-30 0001051003 bdsfi:ValuationRiskMember 2026-01-01 2026-06-30 0001051003 bdsfi:CommonSharesMember 2025-12-31 0001051003 bdsfi:CommonSharesMember 2026-06-30 iso4217:USD shares pure shares 0001051003 false N-CSRS BlackRock Debt Strategies Fund, Inc. <div style="line-height:13.00pt;margin-top:0.00pt;text-align:left;"><span style="color:#000000;font-family:arial narrow;font-size:11pt;font-weight:bold">Investment Objective</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;font-weight:bold;margin-left:0%">BlackRock Debt Strategies Fund, Inc.</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;font-weight:bold">’</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;font-weight:bold">s</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;font-weight:bold"> (</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;font-weight:bold">DSU</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;font-weight:bold">) (the “</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;font-weight:bold">Fund</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;font-weight:bold">”)</span><span style="color:#000000;font-family:arial narrow;font-size:9pt"> primary investment objective is to seek to provide current income by investing primarily in a diversified portfolio </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">of U.S. companies’ debt instruments, including senior and subordinated corporate loans, both secured and unsecured, which are rated in the lower rating categories of the </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">established rating services (BBB or lower by S&amp;P Global Ratings ("S&amp;P") or Baa or lower by Moody’s Investors Service, Inc. (“Moody’s”)) or unrated debt instruments, which </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">are in the judgment of the investment adviser of equivalent quality. The Fund may invest directly in debt instruments or synthetically through the use of derivatives. The Fund’s </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">secondary investment objective is to seek to provide capital appreciation.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt">No assurance can be given that the Fund’s investment objective will be achieved.</span></div> <div style="margin-top:11.5pt;"><span style="color:#000000;font-family:arial narrow;font-size:11pt;font-weight:bold">Market Price and Net Asset Value Per Share Summary</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:0.1pt"> </span></div> <table cellpadding="0" cellspacing="0" style="border-bottom:0.5pt solid #000000;empty-cells:show;margin-left:12pt;width:535pt"> <tr style="height:16.5pt"> <td style="border-bottom:0.5pt solid #000000;vertical-align:Bottom;width:326.84pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:6pt;text-align:right;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:9pt"> </span></div> </div> </td> <td style="border-bottom:0.5pt solid #000000;vertical-align:Bottom;width:41.53pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="margin-left:4pt;margin-right:8pt;text-align:right;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-style:italic">06/30/26</span></div> </div> </td> <td style="border-bottom:0.5pt solid #000000;vertical-align:Bottom;width:45.53pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="margin-left:8pt;margin-right:8pt;text-align:right;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-style:italic">12/31/25</span></div> </div> </td> <td style="border-bottom:0.5pt solid #000000;vertical-align:Bottom;width:42.97pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="margin-left:8pt;margin-right:8pt;text-align:right;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-style:italic">Change</span></div> </div> </td> <td style="border-bottom:0.5pt solid #000000;vertical-align:Bottom;width:41.89pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="margin-left:8pt;margin-right:8pt;text-align:right;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-style:italic">High</span></div> </div> </td> <td style="border-bottom:0.5pt solid #000000;vertical-align:Bottom;width:36.24pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="margin-left:8pt;margin-right:6pt;text-align:right;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-style:italic">Low</span></div> </div> </td> </tr> <tr style="height:11.5pt"> <td style="background-color:azure;vertical-align:Bottom;width:326.84pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;margin-left:0.0pt">Closing Market Price</span></div> </div> </td> <td style="background-color:azure;vertical-align:Bottom;white-space:nowrap;width:41.53pt;"> <div style="line-height:10pt;margin-left:6pt;margin-right:10pt;text-align:right;width:25.53pt;"> <div style="display:flex;margin-left:auto;width:25.53pt;"> <div style="display:flex;white-space:nowrap;width:25.53pt;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:25.53pt">$ </span><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:25.53pt">9.70</span></div> </div> </div> </td> <td style="background-color:azure;vertical-align:Bottom;white-space:nowrap;width:45.53pt;"> <div style="line-height:10pt;margin-left:10pt;margin-right:10pt;text-align:right;width:25.53pt;"> <div style="display:flex;margin-left:auto;width:25.53pt;"> <div style="display:flex;white-space:nowrap;width:25.53pt;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:25.53pt">$ </span><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:25.53pt">10.18</span></div> </div> </div> </td> <td style="background-color:azure;vertical-align:Bottom;white-space:nowrap;width:42.97pt;"> <div style="line-height:10pt;margin-left:10pt;margin-right:10pt;text-align:right;width:22.97pt;"> <div style="display:flex;margin-left:auto;width:22.97pt;"> <div style="display:flex;white-space:nowrap;width:22.97pt;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:22.97pt">(4.72</span></div> <div style="display:flex;width:22.97pt;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:auto">)</span><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:auto">% </span></div> </div> </div> </td> <td style="background-color:azure;vertical-align:Bottom;white-space:nowrap;width:41.89pt;"> <div style="line-height:10pt;margin-left:10pt;margin-right:10pt;text-align:right;width:21.89pt;"> <div style="display:flex;margin-left:auto;width:21.89pt;"> <div style="display:flex;white-space:nowrap;width:21.89pt;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:21.89pt">$ </span><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:21.89pt">10.38</span></div> </div> </div> </td> <td style="background-color:azure;vertical-align:Bottom;white-space:nowrap;width:36.24pt;"> <div style="line-height:10pt;margin-left:10pt;margin-right:4pt;text-align:right;width:18.24pt;"> <div style="display:flex;margin-left:auto;width:18.24pt;"> <div style="display:flex;white-space:nowrap;width:18.24pt;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:18.24pt">$ </span><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:18.24pt">9.35</span></div> </div> </div> </td> </tr> <tr style="height:10.5pt"> <td style="vertical-align:Bottom;width:326.84pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;margin-left:0.0pt">Net Asset Value</span></div> </div> </td> <td style="vertical-align:Bottom;white-space:nowrap;width:41.53pt;"> <div style="line-height:10pt;margin-left:6pt;margin-right:10pt;text-align:right;width:25.53pt;"> <div style="display:flex;margin-left:auto;width:25.53pt;"> <div style="display:flex;white-space:nowrap;width:25.53pt;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:25.53pt">9.61</span></div> </div> </div> </td> <td style="vertical-align:Bottom;white-space:nowrap;width:45.53pt;"> <div style="line-height:10pt;margin-left:10pt;margin-right:10pt;text-align:right;width:25.53pt;"> <div style="display:flex;margin-left:auto;width:25.53pt;"> <div style="display:flex;white-space:nowrap;width:25.53pt;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:25.53pt">10.14</span></div> </div> </div> </td> <td style="vertical-align:Bottom;white-space:nowrap;width:42.97pt;"> <div style="line-height:10pt;margin-left:10pt;margin-right:10pt;text-align:right;width:22.97pt;"> <div style="display:flex;margin-left:auto;width:22.97pt;"> <div style="display:flex;white-space:nowrap;width:22.97pt;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:22.97pt">(5.23</span></div> <div style="display:flex;width:22.97pt;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:auto">)</span></div> </div> </div> </td> <td style="vertical-align:Bottom;white-space:nowrap;width:41.89pt;"> <div style="line-height:10pt;margin-left:10pt;margin-right:10pt;text-align:right;width:21.89pt;"> <div style="display:flex;margin-left:auto;width:21.89pt;"> <div style="display:flex;white-space:nowrap;width:21.89pt;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:21.89pt">10.18</span></div> </div> </div> </td> <td style="vertical-align:Bottom;white-space:nowrap;width:36.24pt;"> <div style="line-height:10pt;margin-left:10pt;margin-right:4pt;text-align:right;width:18.24pt;"> <div style="display:flex;margin-left:auto;width:18.24pt;"> <div style="display:flex;white-space:nowrap;width:18.24pt;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:18.24pt">9.60</span></div> </div> </div> </td> </tr> </table> 9.70 10.18 -0.0472 10.38 9.35 9.61 10.14 -0.0523 10.18 9.60 64782943 400000000 <div> <div style="clear:both;margin-top:12.00pt;position:relative;width:100%;"> <div style="float:left;line-height:13.50pt;text-align:left;width:13.11pt;"><span style="color:#000000;font-family:arial narrow;font-size:11.5pt;font-style:italic;font-weight:bold">10.</span></div> <div style="float:left;line-height:13.50pt;margin-left:2.89pt;text-align:left;width:538.00pt;"><span style="color:#000000;font-family:arial narrow;font-size:11.5pt;font-style:italic;font-weight:bold">PRINCIPAL RISKS</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:16.5pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">In the normal course of business, each</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">invests in securities or other instruments and may enter into certain transactions, and such activities subject each</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund to various </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">(iii) regulation, taxation, tariffs or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">investments.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;font-weight:bold;margin-left:0%">Illiquidity Risk:</span><span style="color:#000000;font-family:arial narrow;font-size:9pt"> Each Fund may invest without limitation in illiquid or less liquid investments or investments in which no secondary market is readily available or which are </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">otherwise illiquid, including private placement securities. A Fund may not be able to readily dispose of such investments at prices that approximate those at which a Fund could </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">sell such investments if they were more widely traded and, as a result of such illiquidity, a Fund may have to sell other investments or engage in borrowing transactions if </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">necessary to raise funds to meet its obligations. Limited liquidity can also affect the market price of investments, thereby adversely affecting a Fund’s NAV and ability to make </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">dividend distributions. Privately issued debt securities are often of below investment grade quality, frequently are unrated and present many of the same risks as investing in </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">below investment grade public debt securities.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;font-weight:bold;margin-left:0%">Market Risk:</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt">  </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Each</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">periods of declining interest rates, which would force each</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund to reinvest in lower yielding securities. Each</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">may also be exposed to reinvestment risk, which is the risk </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">that income from each</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund’s portfolio will decline if each</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">below each</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund portfolio’s current earnings rate.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions, credit rating downgrades, or the bankruptcy </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">of the issuer could have a significant effect on an issuer’s ability to make payments of principal and/or interest or otherwise affect the value of such securities. Municipal </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">securities can be significantly affected by political or economic changes, including changes made in the law after issuance of the securities, as well as uncertainties in the </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">municipal market related to, taxation, legislative changes or the rights of municipal security holders, including in connection with an issuer insolvency. Municipal securities </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the discontinuance of the tax benefits supporting the project </span></div><div style="line-height:11.00pt;margin-top:0.00pt;text-align:justify;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">or assets or the inability to collect revenues for the project or from the assets. Municipal securities may be less liquid than taxable bonds, and there may be less publicly </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">available information on the financial condition of municipal security issuers than for issuers of other securities.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;font-weight:bold;margin-left:0%">Valuation Risk: </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">A</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund may invest in illiquid investments. An illiquid investment is any investment that a</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund reasonably expects cannot be sold or disposed of in current market conditions </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund may  experience difficulty in selling illiquid </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause each</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund’s NAV to experience significant </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund may lose value, regardless of the </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">individual results of the securities and other instruments in which a</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund invests. A</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund’s ability to value its investments may also be impacted by technological issues and/or </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">errors by pricing services or other third-party service providers.</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt">  </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">The price a Fund could receive upon the sale of any particular portfolio investment may differ from a Fund</span><span style="color:#000000;font-family:arial narrow;font-size:9pt">’</span><span style="color:#000000;font-family:arial narrow;font-size:9pt">s </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">observable inputs may significantly impact the resulting fair value and therefore a Fund</span><span style="color:#000000;font-family:arial narrow;font-size:9pt">’</span><span style="color:#000000;font-family:arial narrow;font-size:9pt">s results of operations. As a result, the price received upon the sale of an investment </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">may be less than the value ascribed by a Fund, and a Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;font-weight:bold;margin-left:0%">Counterparty Credit Risk:</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">receivables due from counterparties. The extent of the Funds</span><span style="color:#000000;font-family:arial narrow;font-size:9pt">’</span><span style="color:#000000;font-family:arial narrow;font-size:9pt"> exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">instrument. Losses can also occur if the counterparty does not perform under the contract.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">With exchange-traded futures and centrally cleared swaps, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;font-weight:bold;margin-left:0%">Geographic/Asset Class Risk:</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">investment will have a material impact on the NAV of a fund. The investment concentrations within each</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund’s portfolio are disclosed in its Schedule of Investments.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">Certain</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Funds invest a significant portion of their assets in high yield securities. High yield securities that are rated below investment-grade (commonly referred to as “junk </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">bonds”) or are unrated may be deemed speculative, involve greater levels of risk than higher-rated securities of similar maturity and are more likely to default. High yield </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">securities may be issued by less creditworthy issuers, and issuers of high yield securities may be unable to meet their interest or principal payment obligations. High yield </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">securities are subject to extreme price fluctuations, may be less liquid than higher rated fixed-income securities, even under normal economic conditions, and frequently have </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">redemption features.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">The Funds invest a significant portion of their assets in fixed-income securities and/or use derivatives tied to the fixed-income markets. Changes in market interest rates or </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will decrease </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">as interest rates rise and increase as interest rates fall. The Funds may be subject to a greater risk of rising interest rates during a period of historically low interest </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">rates. Changing interest rates may have unpredictable effects on markets, may result in heightened market volatility, and could negatively impact the Funds</span><span style="color:#000000;font-family:arial narrow;font-size:9pt">’</span><span style="color:#000000;font-family:arial narrow;font-size:9pt"> performance.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">The</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Funds invest a significant portion of their assets in securities of issuers located in the United States.</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">A decrease in imports or exports, changes in trade regulations, </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">continue, they may have an adverse impact on the U.S. economy and the issuers in which the Funds invest.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">Certain</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Funds</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">invest</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">a significant portion of  their</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">assets in securities backed by commercial or residential mortgage loans or in issuers that hold mortgage and other asset-backed</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%"> securities. When a fund concentrates its investments in this manner, it assumes a greater risk of prepayment or payment extension by securities issuers. Changes in </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">economic conditions, including delinquencies and/or defaults on assets underlying these securities, can affect the value, income and/or liquidity of such positions. Investment </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">percentages in these securities are presented in the Schedules of Investments.</span></div> <div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;font-weight:bold;margin-left:0%">Illiquidity Risk:</span><span style="color:#000000;font-family:arial narrow;font-size:9pt"> Each Fund may invest without limitation in illiquid or less liquid investments or investments in which no secondary market is readily available or which are </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">otherwise illiquid, including private placement securities. A Fund may not be able to readily dispose of such investments at prices that approximate those at which a Fund could </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">sell such investments if they were more widely traded and, as a result of such illiquidity, a Fund may have to sell other investments or engage in borrowing transactions if </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">necessary to raise funds to meet its obligations. Limited liquidity can also affect the market price of investments, thereby adversely affecting a Fund’s NAV and ability to make </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">dividend distributions. Privately issued debt securities are often of below investment grade quality, frequently are unrated and present many of the same risks as investing in </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">below investment grade public debt securities.</span></div> <div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;font-weight:bold;margin-left:0%">Market Risk:</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt">  </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Each</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">periods of declining interest rates, which would force each</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund to reinvest in lower yielding securities. Each</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">may also be exposed to reinvestment risk, which is the risk </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">that income from each</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund’s portfolio will decline if each</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">below each</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund portfolio’s current earnings rate.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions, credit rating downgrades, or the bankruptcy </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">of the issuer could have a significant effect on an issuer’s ability to make payments of principal and/or interest or otherwise affect the value of such securities. Municipal </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">securities can be significantly affected by political or economic changes, including changes made in the law after issuance of the securities, as well as uncertainties in the </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">municipal market related to, taxation, legislative changes or the rights of municipal security holders, including in connection with an issuer insolvency. Municipal securities </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the discontinuance of the tax benefits supporting the project </span></div><div style="line-height:11.00pt;margin-top:0.00pt;text-align:justify;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">or assets or the inability to collect revenues for the project or from the assets. Municipal securities may be less liquid than taxable bonds, and there may be less publicly </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">available information on the financial condition of municipal security issuers than for issuers of other securities.</span></div> <div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;font-weight:bold;margin-left:0%">Valuation Risk: </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">A</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund may invest in illiquid investments. An illiquid investment is any investment that a</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund reasonably expects cannot be sold or disposed of in current market conditions </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund may  experience difficulty in selling illiquid </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause each</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund’s NAV to experience significant </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund may lose value, regardless of the </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">individual results of the securities and other instruments in which a</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund invests. A</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund’s ability to value its investments may also be impacted by technological issues and/or </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">errors by pricing services or other third-party service providers.</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt">  </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">The price a Fund could receive upon the sale of any particular portfolio investment may differ from a Fund</span><span style="color:#000000;font-family:arial narrow;font-size:9pt">’</span><span style="color:#000000;font-family:arial narrow;font-size:9pt">s </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">observable inputs may significantly impact the resulting fair value and therefore a Fund</span><span style="color:#000000;font-family:arial narrow;font-size:9pt">’</span><span style="color:#000000;font-family:arial narrow;font-size:9pt">s results of operations. As a result, the price received upon the sale of an investment </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">may be less than the value ascribed by a Fund, and a Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment.</span></div> <div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;font-weight:bold;margin-left:0%">Counterparty Credit Risk:</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">receivables due from counterparties. The extent of the Funds</span><span style="color:#000000;font-family:arial narrow;font-size:9pt">’</span><span style="color:#000000;font-family:arial narrow;font-size:9pt"> exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">instrument. Losses can also occur if the counterparty does not perform under the contract.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">With exchange-traded futures and centrally cleared swaps, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.</span></div> <div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;font-weight:bold;margin-left:0%">Geographic/Asset Class Risk:</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">investment will have a material impact on the NAV of a fund. The investment concentrations within each</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Fund’s portfolio are disclosed in its Schedule of Investments.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">Certain</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Funds invest a significant portion of their assets in high yield securities. High yield securities that are rated below investment-grade (commonly referred to as “junk </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">bonds”) or are unrated may be deemed speculative, involve greater levels of risk than higher-rated securities of similar maturity and are more likely to default. High yield </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">securities may be issued by less creditworthy issuers, and issuers of high yield securities may be unable to meet their interest or principal payment obligations. High yield </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">securities are subject to extreme price fluctuations, may be less liquid than higher rated fixed-income securities, even under normal economic conditions, and frequently have </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">redemption features.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">The Funds invest a significant portion of their assets in fixed-income securities and/or use derivatives tied to the fixed-income markets. Changes in market interest rates or </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will decrease </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">as interest rates rise and increase as interest rates fall. The Funds may be subject to a greater risk of rising interest rates during a period of historically low interest </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">rates. Changing interest rates may have unpredictable effects on markets, may result in heightened market volatility, and could negatively impact the Funds</span><span style="color:#000000;font-family:arial narrow;font-size:9pt">’</span><span style="color:#000000;font-family:arial narrow;font-size:9pt"> performance.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">The</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Funds invest a significant portion of their assets in securities of issuers located in the United States.</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">A decrease in imports or exports, changes in trade regulations, </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">continue, they may have an adverse impact on the U.S. economy and the issuers in which the Funds invest.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">Certain</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Funds</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">invest</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">a significant portion of  their</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:11.00pt"> </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">assets in securities backed by commercial or residential mortgage loans or in issuers that hold mortgage and other asset-backed</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%"> securities. When a fund concentrates its investments in this manner, it assumes a greater risk of prepayment or payment extension by securities issuers. Changes in </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">economic conditions, including delinquencies and/or defaults on assets underlying these securities, can affect the value, income and/or liquidity of such positions. Investment </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">percentages in these securities are presented in the Schedules of Investments.</span></div> <div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:13.50pt;text-align:left;width:12.48pt;"><span style="color:#000000;font-family:arial narrow;font-size:11.5pt;font-style:italic;font-weight:bold">11.</span></div> <div style="float:left;line-height:13.50pt;margin-left:3.52pt;text-align:left;width:538.00pt;"><span style="color:#000000;font-family:arial narrow;font-size:11.5pt;font-style:italic;font-weight:bold">CAPITAL SHARE TRANSACTIONS </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:16.5pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">DSU is authorized to issue 400 million shares, all of which were initially classified as Common Shares. FRA and BKT are authorized to issue 200 million shares, all of which </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">were initially classified as Common Shares. BLW and BIT are authorized to issue an unlimited number of shares, all of which were initially classified as Common Shares. The </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">par value for DSU’s, FRA’s, BKT</span><span style="color:#000000;font-family:arial narrow;font-size:9pt">’</span><span style="color:#000000;font-family:arial narrow;font-size:9pt">s, BLW’s and BIT</span><span style="color:#000000;font-family:arial narrow;font-size:9pt">’</span><span style="color:#000000;font-family:arial narrow;font-size:9pt">s  shares is $0.10, $0.10, $0.010, $0.001 and $0.001, respectively. The Board for DSU, FRA, BLW and BIT are each </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">authorized, however, to reclassify any unissued Common Shares to Preferred Shares without the approval of Common Shareholders.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;font-weight:bold">Common Shares</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">As of the close of business on September 29, 2025, BKT issued transferrable rights to its Common Shareholders of record, entitling the holders of those rights to subscribe for </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">shares of BKT’s common stock (the “Offer”). Shareholders received one right for each outstanding Common Share owned on the record date. The rights entitled their holders </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">to purchase one new Common Share for every three rights held (1-for-3). The Offer expired on October 20, 2025. BKT received from the Offer gross proceeds of </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">$87,126,281 for the issuance of 8,097,238 Common Shares. The rights offering resulted in $(0.19) or (1.63)% NAV dilution since the Common Shares were issued below </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">BKT’s NAV. BKT received the entire proceeds from the shares issued under the Offer since the Manager agreed to pay for all expenses (including sales commissions) related </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">to the Offer.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">As of the close of business on  August 19, 2025, BIT issued transferrable rights to its Common Shareholders of record, entitling the holders of those rights to subscribe for </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">shares of BIT’s common stock (the “Offer”). Shareholders received one right for each outstanding Common Share owned on the record date. The rights entitled their holders </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">to purchase one new Common Share for every three rights held (1-for-3). The Offer expired on September 9, 2025. BIT received from the Offer gross proceeds of </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">$185,596,458 for the issuance of 14,265,677 Common Shares. The rights offering resulted in $(0.17) or (1.22)% NAV dilution since the Common Shares were issued below </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">BIT’s NAV. BIT received the entire proceeds from the shares issued under the Offer since the Manager agreed to pay for all expenses (including sales commissions) related </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">to the Offer.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt">For the periods shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:</span><span style="color:#000000;font-family:arial narrow;font-size:9pt;line-height:0.1pt"> </span></div> <table cellpadding="0" cellspacing="0" style="border-bottom:0.5pt solid #000000;border-top:0.5pt solid #000000;empty-cells:show;margin-left:12pt;width:535pt"> <tr style="height:11.5pt"> <td style="vertical-align:Bottom;width:427.9pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0.0pt"> </span></div> </div> </td> <td style="vertical-align:Bottom;width:66.21pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:4pt;margin-right:5pt;text-align:right;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-style:italic">Six Months Ended</span></div> </div> </td> <td style="vertical-align:Bottom;width:40.89pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-left:5pt;text-align:right;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-style:italic">Year Ended</span></div> </div> </td> </tr> <tr style="height:11.63pt"> <td style="background-color:azure;border-bottom:0.5pt solid #000000;vertical-align:Bottom;width:427.9pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="margin-right:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-style:italic;margin-left:0.0pt">Fund Name</span></div> </div> </td> <td style="background-color:azure;border-bottom:0.5pt solid #000000;vertical-align:Bottom;width:66.21pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="margin-left:4pt;margin-right:5pt;text-align:right;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-style:italic">06/30/26</span></div> </div> </td> <td style="background-color:azure;border-bottom:0.5pt solid #000000;vertical-align:Bottom;width:40.89pt;"> <div style="line-height:11.0pt;text-align:left;"> <div style="margin-left:5pt;text-align:right;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-style:italic">12/31/25</span></div> </div> </td> </tr> <tr style="height:11.63pt"> <td style="vertical-align:Bottom;width:427.9pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;margin-left:0.0pt">DSU</span></div> </div> </td> <td style="vertical-align:Bottom;white-space:nowrap;width:66.21pt;"> <div style="line-height:10pt;margin-left:6pt;margin-right:7pt;text-align:right;width:53.21pt;"> <div style="display:flex;margin-left:auto;width:53.21pt;"> <div style="display:flex;white-space:nowrap;width:53.21pt;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:53.21pt">91,820</span></div> </div> </div> </td> <td style="vertical-align:Bottom;white-space:nowrap;width:40.89pt;"> <div style="line-height:10pt;margin-left:7pt;text-align:right;width:33.89pt;"> <div style="display:flex;margin-left:auto;width:33.89pt;"> <div style="display:flex;white-space:nowrap;width:33.89pt;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:33.89pt">184,457</span></div> </div> </div> </td> </tr> <tr style="height:10pt"> <td style="background-color:azure;vertical-align:Bottom;width:427.9pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;margin-left:0.0pt">FRA</span></div> </div> </td> <td style="background-color:azure;vertical-align:Bottom;white-space:nowrap;width:66.21pt;"> <div style="line-height:10pt;margin-left:6pt;margin-right:7pt;text-align:right;width:53.21pt;"> <div style="display:flex;margin-left:auto;width:53.21pt;"> <div style="display:flex;white-space:nowrap;width:53.21pt;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:53.21pt">—</span></div> </div> </div> </td> <td style="background-color:azure;vertical-align:Bottom;white-space:nowrap;width:40.89pt;"> <div style="line-height:10pt;margin-left:7pt;text-align:right;width:33.89pt;"> <div style="display:flex;margin-left:auto;width:33.89pt;"> <div style="display:flex;white-space:nowrap;width:33.89pt;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:33.89pt">130,112</span></div> </div> </div> </td> </tr> <tr style="height:10pt"> <td style="vertical-align:Bottom;width:427.9pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;margin-left:0.0pt">BLW</span></div> </div> </td> <td style="vertical-align:Bottom;white-space:nowrap;width:66.21pt;"> <div style="line-height:10pt;margin-left:6pt;margin-right:7pt;text-align:right;width:53.21pt;"> <div style="display:flex;margin-left:auto;width:53.21pt;"> <div style="display:flex;white-space:nowrap;width:53.21pt;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:53.21pt">14,664</span></div> </div> </div> </td> <td style="vertical-align:Bottom;white-space:nowrap;width:40.89pt;"> <div style="line-height:10pt;margin-left:7pt;text-align:right;width:33.89pt;"> <div style="display:flex;margin-left:auto;width:33.89pt;"> <div style="display:flex;white-space:nowrap;width:33.89pt;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:33.89pt">148,923</span></div> </div> </div> </td> </tr> <tr style="height:10.5pt"> <td style="background-color:azure;vertical-align:Bottom;width:427.9pt;"> <div style="line-height:10pt;text-align:left;"> <div style="margin-right:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;margin-left:0.0pt">BIT</span></div> </div> </td> <td style="background-color:azure;vertical-align:Bottom;white-space:nowrap;width:66.21pt;"> <div style="line-height:10pt;margin-left:6pt;margin-right:7pt;text-align:right;width:53.21pt;"> <div style="display:flex;margin-left:auto;width:53.21pt;"> <div style="display:flex;white-space:nowrap;width:53.21pt;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:53.21pt">—</span></div> </div> </div> </td> <td style="background-color:azure;vertical-align:Bottom;white-space:nowrap;width:40.89pt;"> <div style="line-height:10pt;margin-left:7pt;text-align:right;width:33.89pt;"> <div style="display:flex;margin-left:auto;width:33.89pt;"> <div style="display:flex;white-space:nowrap;width:33.89pt;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;width:33.89pt">103,861</span></div> </div> </div> </td> </tr> </table><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt">For the six months ended June 30, 2026, shares issued and outstanding remained constant for FRA, BKT and BIT.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt">For the year ended December 31, 2025, Common Shares of BKT issued and outstanding increased by 2,984,071 as a result of reorganization of EGF with and into BKT.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">For the year ended December 31, 2025, Common Shares of BKT issued and outstanding decreased by 29 as a result of a redemption of fractional shares from the </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">reorganization of EGF with and into BKT.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">For the year ended December 31, 2025, Common Shares of DSU, BLW and BIT issued and outstanding increased by 10,245,828, 2,297,599 and 2,851,856, respectively </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">under the Shelf Offering.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">BKT had previously adopted a discount management program (the “Program”), which consists of one measurement period beginning on July 9, 2026 and ending on </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">September 30, 2026. Under the Program, the Trust intends to offer to repurchase a portion of its common shares via tender offer if the Trust’s common shares trade at an </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">average daily discount to NAV of more than 7.50% during the 12-week measurement period. If the discount trigger is met and a tender offer is conducted, there is no guarantee </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">that shareholders will be able to sell all of the shares that they desire to sell in such tender offer and there can be no assurance as to the effect that the Program will have on </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">the market for the Trust’s shares or the discount at which the Trust’s shares may trade relative to its NAV.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">DSU, FRA, BKT, BLW and BIT have each filed a prospectus with the SEC allowing them to issue an additional 30,000,000, 18,000,000, 25,000,000, 12,000,000 and </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">19,000,000 Common Shares, respectively, through a Shelf Offering. Under the Shelf Offering each Fund subject to market conditions, may raise additional equity capital from </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">time to time in varying amounts and utilizing various offering methods at a net price at or above each Fund’s NAV per Common Share (calculated within 48 hours of pricing). </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">As of period end, 28,221,677, 18,000,000, 25,000,000, 8,880,956 and 19,000,000 Common Shares, respectively, remain available for issuance under the Shelf Offering. </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">During the period ended June 30, 2026, DSU, FRA, BKT, BLW and BIT issued 2,451,565, 0, 0, 0 and 0 shares respectively under current Shelf Offering and the Trust’s prior </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">Shelf Offering. See Additional Information - Shelf Offering Program for additional information.</span></div><div style="margin-top:8pt;"><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">Initial costs incurred by the Funds in connection with their Shelf Offerings are recorded as “Deferred offering costs” in the Statements of Assets and Liabilities. As shares are </span><span style="color:#000000;font-family:arial narrow;font-size:9pt;margin-left:0%">sold, a portion of the costs attributable to the shares sold will be charged against paid-in-capital. Any remaining deferred charges at the end of the Shelf Offering period will be </span><span style="color:#000000;font-family:arial narrow;font-size:9pt">charged to expense.</span></div> DSU is authorized to issue 400 million shares, all of which were initially classified as Common Shares.