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bf2:MSCIWorldIndexMember 2024-11-27 2024-11-27 iso4217:USD pure 0001398078 false 485BPOS 2024-07-31 -0.0176 0.0815 0.1429 -0.0719 0.1956 0.0423 0.1048 -0.1748 0.1388 -0.0150 0.0846 0.1464 -0.0691 0.1992 0.0454 0.1082 -0.1723 0.1435 2024-11-21 N-1A BLACKROCK FUNDS II 2024-11-27 2024-11-27 Fund Overview Key Facts About BlackRock Dynamic High Income Portfolio Investment Objective <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The investment objective of BlackRock Dynamic High Income Portfolio (the “Fund”), a series of BlackRock Funds II (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 high current income with consideration for capital appreciation.</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. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">You may pay </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">other 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: 9.30pt;"> You may qualify for sales charge discounts if you and your family invest, or agree to invest in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">future, at least $25,000 in the fund complex advised by BlackRock or its affiliates. More information about these and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other discounts is available from your Financial Intermediary and in the “Details About the Share Classes” and the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“Intermediary-Defined Sales Charge Waiver Policies” sections on pages </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">65</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 </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">prospectus and in the “Purchase of Shares” section on page </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">II-93</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> of Part II of the Fund’s Statement of Additional </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">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) 0.0060 0.0060 0.0060 0.0025 0.0100 0 0.0021 0.0024 0.0025 0.0003 0.0003 0.0003 0.0109 0.0187 0.0088 -0.0016 -0.0019 -0.0020 0.0093 0.0168 0.0068 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 $250,000 or more. 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, which do not include Acquired Fund Fees and Expenses. June 30, 2026 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> 615 838 1080 1770 271 569 993 1971 69 261 468 1066 You would pay the following expenses if you did not redeem your shares:  171 569 993 1971 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;">109</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> 1.09 Principal Investment Strategies of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may invest up to 100% of its assets in equity securities and up to 100% of its assets in fixed-income </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities. The Fund may also gain exposure to such equity securities and fixed-income securities by investing in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">BlackRock equity and/or fixed-income mutual funds (“underlying funds”) and affiliated and unaffiliated ETFs. The Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may also invest up to 50% of its assets in structured notes that provide exposure to covered call options or other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">types of financial instruments.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">With respect to the Fund’s equity investments, the Fund may invest in common stock and preferred stock. From time </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to time, the Fund may invest in shares of companies through initial public offerings (“IPOs”). The Fund may invest in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">equity securities of both U.S. or non-U.S. issuers without limit, including in securities of issuers located in emerging </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">markets. The Fund’s investments in non-dollar denominated equity securities may be on a currency hedged or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">unhedged basis. The Fund may invest in securities of companies of any market capitalization. The Fund may also </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">purchase securities convertible into common and preferred stock.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">With respect to the Fund’s fixed-income investments, the Fund may invest in a portfolio of fixed-income securities, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">such as corporate bonds and notes, mortgage-backed securities (including commercial mortgage-backed securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and collateralized mortgage obligations), asset-backed securities (including collateralized debt obligations (“CDOs”) </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and collateralized loan obligations (“CLOs”)), convertible securities, preferred securities and government obligations. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Convertible debt securities have features of both fixed-income and equity securities and often are issued by </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">companies that have lower credit ratings but higher potential for long-term growth. The Fund may invest in fixed-income </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities of both U.S. or non-U.S. issuers without limit, including in securities of issuers located in emerging markets. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may also invest significantly in non-investment grade bonds (high yield, junk bonds or distressed securities), </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">including non-investment grade bonds of issuers located in emerging markets, non-investment grade bank loans and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">non-dollar denominated bonds. The Fund’s investments in non-dollar denominated bonds may be on a currency hedged </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or unhedged basis. Non-investment grade bonds or bank loans acquired by the Fund will generally be in the lower </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">categories of the major rating agencies at the time of purchase (BB or lower by S&amp;P Global Ratings, a division of S&amp;P </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Global Inc., or Ba or lower by Moody’s Investors Services, Inc.) or will be determined by the management team to be of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">similar quality. The average portfolio duration of the Fund will vary based on the management team’s forecast of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interest rates and there are no limits regarding portfolio duration or average maturity.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund intends to invest in certain income-producing instruments, including master limited partnerships (“MLPs”) </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(which are generally in energy-related industries), U.S. and non-U.S. real estate investment trusts (“REITs”), preferred </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">stock, structured products, structured notes that provide exposure to covered call options or other types of financial </span></div> <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">instruments, floating rate securities (such as bank loans), dividend stocks and fixed-income securities. The Fund may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">also invest in closed-end investment companies.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may invest significantly in derivatives, including, but not limited to, interest rate swaps, total return swaps, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">credit default swaps, variance swaps, options (including covered call options), futures, options on futures and swaps </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and foreign currency transactions (including swaps), for hedging purposes, as well as to increase the return on its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">portfolio investments. The Fund may seek to obtain market exposure to the securities in which it primarily invests by </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">entering into a series of purchase and sale contracts or by using other investment techniques (such as reverse </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">repurchase agreements or dollar rolls). The underlying funds and ETFs in which the Fund invests may, to varying </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">degrees, also invest in derivatives.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may 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 also incur leverage (within the limits of applicable law) for investment purposes. The Fund may engage in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">active and frequent trading of portfolio securities to achieve its primary investment strategies.</span></div> Principal Risks of Investing in the Fund 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: 4.91pt; 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 and/or ETFs 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;">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 are 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 historically low interest rates. For </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">example, if interest rates increase by 1%, assuming a current portfolio duration of ten years, and all other factors </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">being equal, the value of the Fund’s investments would be expected to decrease by 10%. (Duration is a measure of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the price sensitivity of a debt security or portfolio of debt securities to relative changes in interest rates.) The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">magnitude of these fluctuations in the market price of bonds and other fixed-income securities is generally greater </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for those securities with longer maturities. Fluctuations in the market price of the Fund’s investments will not affect </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interest income derived from instruments already owned by the Fund, but will be reflected in the Fund’s net asset </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">value. The Fund may lose money if short-term or long-term interest rates rise sharply in a manner not anticipated by </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund 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></div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><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;">Asset Class Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Securities and other assets or financial instruments in an underlying fund’s underlying index or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in the Fund’s portfolio may underperform in comparison to the general financial markets, a particular financial </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market or other asset classes.</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;">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></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><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;">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><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;">Affiliated Fund 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;">In managing the Fund, BlackRock will have authority to select and substitute underlying </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">funds and ETFs. BlackRock may be subject to potential conflicts of interest in selecting underlying funds and ETFs </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">because the fees paid to BlackRock by some underlying funds and ETFs are higher than the fees paid by other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">underlying funds and ETFs. However, BlackRock is a fiduciary to the Fund and is legally obligated to act in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund’s best interests when selecting underlying funds and ETFs. If an underlying fund or ETF holds interests in an </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">affiliated fund, the Fund may be prohibited from purchasing shares of that underlying fund or ETF.</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 CLOs, carry additional risks including, but not limited to: (i) the possibility </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the risk that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the collateral may default or decline in value or be downgraded, if rated by a nationally recognized statistical rating </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">organization; (iii) the Fund may invest in tranches of CDOs that are subordinate to other tranches; (iv) the structure </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and complexity of the transaction and the legal documents could lead to disputes among investors regarding the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">characterization of proceeds; (v) the investment return achieved by the Fund could be significantly different than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs; (vii) the risk of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">forced “fire sale” liquidation due to technical defaults such as coverage test failures; and (viii) the CDO’s manager </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">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;">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></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, or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the prime rates of U.S. banks. As a result, the value of corporate loan investments is generally less exposed to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">adverse effects of shifts in market interest rates than investments that pay a fixed rate of interest. The market for </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">corporate loans may be subject to irregular trading activity and wide bid/ask spreads. In addition, transactions in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">corporate loans may settle on a delayed basis. As a result, the proceeds from the sale of corporate loans may not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">be readily available to make additional investments or to meet the Fund’s redemption obligations. To the extent the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">extended settlement process gives rise to short-term liquidity needs, the Fund may hold additional cash, sell </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments or temporarily borrow from banks and other lenders.</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;">Covered Call Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund intends to invest in covered call options and structured notes that provide exposure </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to covered call options. Covered call risk is the risk that the issuer of the call option will forgo any profit from </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">increases in the market value of the underlying security covering the call option above the sum of the premium and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the strike price of the call but retain the risk of loss if the underlying security declines in value. The Fund will have </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">no control over the exercise of the option by the option holder and may lose the benefit from any capital </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">appreciation on the underlying security. A number of factors may influence the option holder’s decision to exercise </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the option, including the value of the underlying security, price volatility, dividend yield and interest rates. To the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">extent that these factors increase the value of the call option, the option holder is more likely to exercise the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">option, which may negatively affect 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;">Distressed 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;"> 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></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;">returns to U.S. investors. In addition, many emerging securities 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; 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; 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 European financial markets have recently experienced volatility and adverse trends due to concerns about </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">economic downturns in, or rising government debt levels of, several European countries as well as acts of war in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the region. These events may spread to other countries in Europe and may affect the value and liquidity of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">certain of the Fund’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; 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;">Geographic Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— A natural or manmade disaster could occur in a geographic region in which the Fund invests, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">which could adversely affect the economy or the business operations of companies located there, causing an </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">adverse impact on the Fund’s investments in the affected region.</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. In addition, investment in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">mortgage dollar rolls and participation in to-be-announced (</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">TBA</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">) transactions may significantly increase the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">portfolio turnover rate. A TBA transaction is a method of trading mortgage-backed securities where the buyer and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">seller agree upon general trade parameters such as agency, settlement date, par amount, and price at the time the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">contract is entered into but the mortgage-backed securities are delivered in the future, generally 30 days later.</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. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Liquid investments may become illiquid after purchase by the Fund, particularly during periods of market turmoil. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">There can be no assurance that a security or instrument that is deemed to be liquid when purchased will continue </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to be liquid for as long as it is held by the Fund, and any security or instrument held by the Fund may be deemed an </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">illiquid investment pursuant to the Fund’s liquidity risk management program. The Fund’s illiquid investments may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reduce the returns of the Fund because it may be difficult to sell the illiquid investments at an advantageous time </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or price. In addition, if the Fund is limited in its ability to sell illiquid investments during periods when shareholders </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are redeeming their shares, the Fund will need to sell liquid securities to meet redemption requests and illiquid </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 will become a larger portion of the Fund’s holdings. An investment may be illiquid due to, among other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">things, the reduced number and capacity of traditional market participants to make a market in fixed-income </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities or the lack of an active trading market. To the extent that the Fund’s principal investment strategies </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">involve derivatives or securities with substantial market and/or credit risk, the Fund will tend to have the greatest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposure to the risks associated with illiquid investments. Illiquid investments may be harder to value, especially in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">changing markets, and if the Fund is forced to sell these investments to meet redemption requests or for other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cash needs, the Fund may suffer a loss. This may be magnified in a rising interest rate environment or other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">circumstances where investor redemptions from fixed-income mutual funds may be higher than normal. In addition, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">when there is illiquidity in the market for certain securities, the Fund, due to limitations on illiquid investments, may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">be subject to purchase and sale restrictions.</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;">Income Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Income risk is the risk that the Fund’s yield will vary as short-term securities in its portfolio mature </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and the proceeds are reinvested in securities with different interest rates.</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;"> — 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;">Investment in Other Investment Companies Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — As with other investments, investments in other investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">companies, including the underlying funds and/or ETFs, are subject to market and selection risk. In addition, if the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund acquires shares of investment companies, including ones affiliated with the Fund, which may include </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">underlying funds and ETFs advised by BlackRock or other investment advisers, shareholders bear both their </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">proportionate share of expenses in the Fund (including management and advisory fees) and, indirectly, the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">expenses of the investment companies (to the extent not offset by BlackRock through waivers). To the extent the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund is held by an affiliated fund, the ability of the Fund itself to hold other investment companies may be limited.</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;">Investing in an ETF will give the Fund exposure to the securities comprising the index on which the ETF is based. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Shares of ETFs are traded on an exchange throughout a trading day, and bought and sold based on market values </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and not at the ETF’s net asset value. For this reason shares of an ETF could trade at either a premium or discount </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to its net asset value. However, the trading prices of index-based ETFs tend to closely track the actual net asset </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">value of the ETF. The Fund will pay brokerage commissions in connection with the purchase and sale of shares of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">ETFs, in addition to a spread (i.e., the difference between what professional investors are willing to pay for ETF </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares (the “bid” price) and the price at which they are willing to sell ETF shares (the “ask” price)).</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: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Issuer Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Fund performance depends on the performance of individual securities to which the Fund has </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposure. Changes in the financial condition or credit rating of an issuer of those securities may cause the value of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the securities to decline.</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 “Investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Company Act”), 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;">Loans Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — An economic downturn generally leads to a higher non-payment rate, and a loan may lose significant </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">value before a default occurs. Moreover, any specific collateral used to secure a loan may decline in value or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">become illiquid, which would adversely affect the loan’s value. No active trading market may exist for certain loans, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">which may impair the ability of the Fund to realize full value in the event of the need to sell a loan and which may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">make it difficult to value loans. Although loans in which the Fund will invest generally will be secured by specific </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">collateral, there can be no assurance that liquidation of such collateral would satisfy the borrower’s obligation in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">event of non-payment of scheduled interest or principal or that such collateral could be readily liquidated. To the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">extent that a loan is collateralized by stock in the borrower or its subsidiaries, such stock may lose all of its value in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the event of the bankruptcy of the borrower. Uncollateralized senior loans involve a greater risk of loss.</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. The value of a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security or other asset may decline due to changes in general market conditions, economic trends or events that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are not specifically related to the issuer of the security or other asset, or factors that affect a particular issuer or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuers, exchange, country, group of countries, region, market, industry, group of industries, sector or asset class. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issues like pandemics or epidemics, recessions, or other events could have a significant impact on the Fund and 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;">investments. Selection risk is the risk that the securities selected by Fund management will underperform the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">markets, the relevant indices or the securities selected by other funds with similar investment objectives and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment strategies. This means you may lose money.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">An outbreak of an infectious coronavirus (COVID-19) that was first detected in December 2019 developed into a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">global pandemic that has resulted in numerous disruptions in the market and has had significant economic impact </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">leaving general concern and uncertainty. Although vaccines have been developed and approved for use by various </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">governments, the duration of the pandemic and its effects cannot be predicted with certainty. The impact of this </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">coronavirus, and other epidemics and pandemics that may arise in the future, could affect the economies of many </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">nations, individual companies and the market in general ways that cannot necessarily be foreseen at the present </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">time.</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;">Master Limited Partnerships Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The common units of an MLP are listed and traded on U.S. securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exchanges and their value fluctuates predominantly based on prevailing market conditions and the success of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">MLP. Unlike owners of common stock of a corporation, owners of common units have limited voting rights and have </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">no ability to annually elect directors. In the event of liquidation, common units have preference over subordinated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">units, but not over debt or preferred units, to the remaining assets of the MLP.</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;">“New Issues” 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;"> “New issues” are IPOs of equity securities. Securities issued in IPOs have no trading history, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and information about the companies may be available for very limited periods. In addition, the prices of securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">sold in IPOs may be highly volatile or may decline shortly after the IPO.</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;">Non-Agency Securities Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — There are no direct or indirect government or agency guarantees of payments in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">mortgage pools created by non-government issuers. Non-agency securities are also not subject to the same </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">underwriting requirements for the underlying mortgages that are applicable to those mortgage-related securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that have a government or government-sponsored entity guarantee. Non-agency securities with payments not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">guaranteed by a government agency generally involve greater credit risk than securities guaranteed by government </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">agencies. In addition, a substantial portion of the non-agency securities in which the Fund invests may be rated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">below investment grade (commonly known as “junk bonds”).</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;">Non-agency mortgage-related securities are not traded on an exchange and there may be a limited market for the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities, especially when there is a perceived weakness in the mortgage and real estate market sectors. Without </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">an active trading market, the non-agency mortgage-related securities held in the Fund’s portfolio may be particularly </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">difficult to value because of the complexities involved in assessing the value of the underlying mortgage loans.</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: 505.0pt;"><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;">Privatization Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Some countries in which the Fund invests have privatized, or have begun the process of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">privatizing, certain entities and industries. Privatized entities may lose money or be re-nationalized.</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;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Internal Revenue Code</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">), 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;">Restricted Securities 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;"> Limitations on the resale of restricted securities may have an adverse effect on their </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">marketability, and may prevent the Fund from disposing of them promptly at advantageous prices. Restricted </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 may not be listed on an exchange and may have no active trading market. In order to sell such securities, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund may have to bear the expense of registering the securities for resale and the risk of substantial delays in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">effecting the registration. Other transaction costs may be higher for restricted securities than unrestricted </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities. Restricted securities may be difficult to value because market quotations may not be readily available, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and the securities may have significant volatility. Also, the Fund may get only limited information about the issuer of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">a given restricted security, and therefore may be less able to predict a loss. Certain restricted securities may involve </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">a high degree of business and financial risk and may result in substantial losses to the Fund.</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;">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;">Risks of Investing in Closed-End Funds </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;"> The shares of closed-end funds may trade at a price below (discount) or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">above (premium), or at, their net asset value. To the extent that the Fund invests a portion of its assets in closed-</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">end funds, those assets will be subject to the risks of the closed-end fund’s portfolio securities, and a shareholder </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in the Fund will bear not only his or her proportionate share of the expenses of the Fund, but also, indirectly, the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">expenses of the closed-end fund. The securities of closed-end funds in which the Fund may invest may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">leveraged. As a result, the Fund may be indirectly exposed to leverage through an investment in such securities. An </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment in securities of closed-end funds that use leverage may expose the Fund to higher volatility in the market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">value of such securities and the possibility that the Fund’s long-term returns on such securities (and, indirectly, the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">long-term returns of the shares) will be diminished.</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.</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: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">U.S. Government Issuer 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;"> Treasury obligations may differ in their interest rates, maturities, times of issuance </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and other characteristics. Obligations of U.S. Government agencies and authorities are supported by varying </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">degrees of credit but generally are not backed by the full faith and credit of the U.S. Government. No assurance can </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">be given that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">by law to do so.</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. These securities may be subject to greater illiquidity risk than other fixed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">income securities, meaning the absence of an active market for these securities could make it difficult for the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to dispose of them at any given time.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.91pt; 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;">Authorized Participant Concentration 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;"> Only an Authorized Participant may engage in creation or redemption transactions directly with an ETF. There are a limited number of institutions that may act as Authorized Participants for an ETF, including on an agency basis on behalf of other market participants.</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;"> </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> No Authorized Participant is obligated to engage in creation or redemption transactions. To the extent that Authorized Participants exit the business or do not place creation or redemption orders for an ETF and no other Authorized Participant places orders, ETF shares are more likely to trade at a premium or discount to NAV and possibly face trading halts or delisting. </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;">Management Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — If a passively managed ETF does not fully replicate the underlying index, it is subject to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risk that the manager’s investment management strategy may not produce the intended results.</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;">Passive Investment 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;"> The portfolios of certain ETFs are not actively managed and may be affected by a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">general decline in market segments relating to their respective indices. Such ETFs typically invest in securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">included in, or representative of, their respective indices regardless of their investment merits and do not attempt </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to take defensive positions in declining 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: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Representative Sampling 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;"> Representative sampling is a method of indexing that involves investing in a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">representative sample of securities that collectively have a similar investment profile to the index and resemble the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">index in terms of risk factors and other key characteristics. A passively managed ETF may or may not hold every </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security in the index. When an ETF deviates from a full replication indexing strategy to utilize a representative </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">sampling strategy, the ETF is subject to an increased risk of tracking error, in that the securities selected in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">aggregate for the ETF may not have an investment profile similar to those of its index.</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;">Shares of an ETF May Trade at Prices Other Than Net Asset Value </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;"> Shares of an ETF trade on exchanges at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">prices at, above or below their most recent net asset value. The per share net asset value of an ETF is calculated at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the end of each business day and fluctuates with changes in the market value of the ETF’s holdings since the most </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">recent calculation. The trading prices of an ETF’s shares fluctuate continuously throughout trading hours based on </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market supply and demand rather than net asset value. The trading prices of an ETF’s shares may deviate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">significantly from net asset value during periods of market volatility. Any of these factors may lead to an ETF’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares trading at a premium or discount to net asset value. However, because shares can be created and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">redeemed in creation units, which are aggregated blocks of shares that authorized participants who have entered </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">into agreements with the ETF’s distributor can purchase or redeem directly from the ETF, at net asset value (unlike </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares of many closed-end funds, which frequently trade at appreciable discounts from, and sometimes at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">premiums to, their net asset values), large discounts or premiums to the net asset value of an ETF are not likely to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">be sustained over the long-term. While the creation/redemption feature is designed to make it likely that an ETF’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares normally trade on exchanges at prices close to the ETF’s next calculated net asset value, exchange prices </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are not expected to correlate exactly with an ETF’s net asset value due to timing reasons as well as market supply </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and demand factors. In addition, disruptions to creations and redemptions or the existence of extreme market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">volatility may result in trading prices that differ significantly from net asset value. If a shareholder purchases at a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">time when the market price is at a premium to the net asset value or sells at a time when the market price is at a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">discount to the net asset value, the shareholder may sustain losses. The use of cash creations and redemptions </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may also cause the ETFs’ shares to trade in the market at greater bid-ask spreads or greater premiums or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">discounts to the ETFs’ NAV.</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;">Tracking Error 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;"> Imperfect correlation between a passively managed ETF’s portfolio securities and those in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">its index, rounding of prices, the timing of cash flows, the ETF’s size, changes to the index and regulatory </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">requirements may cause tracking error, which is the divergence of an ETF’s performance from that of its underlying </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">index. This risk may be heightened during times of increased market volatility or other unusual market conditions. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Tracking error also may result because an ETF incurs fees and expenses while its underlying index does not.</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;">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. Effective March 31, 2024, the benchmark against which the Fund measures its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">performance was changed from a blended benchmark comprised of 70% MSCI World Index/30% Bloomberg U.S. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Aggregate Bond Index to a blended benchmark comprised of 50% MSCI World High Dividend Index/50% Bloomberg </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">U.S. High Yield 2% Issuer Capped Index. Fund management believes that the new benchmark is more representative of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the types of investments held within the Fund. The table compares the Fund’s performance to that of the MSCI World </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Index, the Bloomberg U.S. Aggregate Bond Index, the current customized performance benchmark comprised of 50% </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">MSCI World High Dividend Index/50% Bloomberg U.S. High Yield 2% Issuer Capped Index and the former benchmark </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">comprised of 70% MSCI World Index/30% Bloomberg U.S. Aggregate Bond Index. To the extent that dividends and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">distributions have been paid by the Fund, the performance information for the Fund in the chart and table assumes </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reinvestment of the dividends and distributions. As with all such investments, past performance (before and after </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">taxes) is not an indication of future results. Sales charges are not reflected in the bar chart. If they were, returns </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">would be less than those shown. However, the table includes all applicable fees and sales charges. If the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment manager and its affiliates had not waived or reimbursed certain Fund expenses during these periods, the </span></div> <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund’s returns would have been lower. Updated information on the Fund’s performance, including its current net asset </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">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. Effective March 31, 2024, the benchmark against which the Fund measures its performance was changed from a blended benchmark comprised of 70% MSCI World Index/30% Bloomberg U.S. Aggregate Bond Index to a blended benchmark comprised of 50% MSCI World High Dividend Index/50% Bloomberg U.S. High Yield 2% Issuer Capped Index. Fund management believes that the new benchmark is more representative of the types of investments held within the Fund. 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 Dynamic High Income Portfolio As of 12/31 <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">During the periods shown in the bar chart, the highest return for a quarter was 12.93% (quarter ended June 30, 2020) </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and the lowest return for a quarter was -19.19% (quarter ended March 31, 2020). The year-to-date return as of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">September 30, 2024 was 11.39%.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> highest return 0.1293 2020-06-30 lowest return -0.1919 2020-03-31 year-to-date return 2024-09-30 0.1139 For the periods ended 12/31/23 Average Annual Total Returns 2014-11-03 2014-11-03 2014-11-03 2014-11-03 2014-11-03 0.0790 0.0416 0.0362 0.0525 0.0193 0.0123 0.0473 0.0232 0.0175 0.1206 0.0451 0.0355 0.1431 0.0558 0.0449 0.2379 0.1280 0.0896 0.0553 0.0110 0.0143 0.1812 0.0946 0.0688 0.1134 0.0689 0.0533 <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 Overview Key Facts About BlackRock Dynamic High Income Portfolio Investment Objective <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The investment objective of BlackRock Dynamic High Income Portfolio (the “Fund”), a series of BlackRock Funds II (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 high current income with consideration for capital appreciation.</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; font-weight: bold;">You </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">may pay other fees, such as brokerage commissions and other fees to your financial professional or your selected </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">securities dealer, broker, investment adviser, service provider or industry professional (including BlackRock </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">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 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 </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">table and 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) 0.0060 0 0.0016 0.0003 0.0079 -0.0016 0.0063 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, which does not include Acquired Fund Fees and Expenses. June 30, 2026 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> 64 236 423 963 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></div> <div style="line-height: 10.695pt; text-align: left;"><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;">109</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> 1.09 Principal Investment Strategies of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may invest up to 100% of its assets in equity securities and up to 100% of its assets in fixed-income </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities. The Fund may also gain exposure to such equity securities and fixed-income securities by investing in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">BlackRock equity and/or fixed-income mutual funds (“underlying funds”) and affiliated and unaffiliated ETFs. The Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may also invest up to 50% of its assets in structured notes that provide exposure to covered call options or other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">types of financial instruments.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">With respect to the Fund’s equity investments, the Fund may invest in common stock and preferred stock. From time </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to time, the Fund may invest in shares of companies through initial public offerings (“IPOs”). The Fund may invest in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">equity securities of both U.S. or non-U.S. issuers without limit, including in securities of issuers located in emerging </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">markets. The Fund’s investments in non-dollar denominated equity securities may be on a currency hedged or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">unhedged basis. The Fund may invest in securities of companies of any market capitalization. The Fund may also </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">purchase securities convertible into common and preferred stock.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">With respect to the Fund’s fixed-income investments, the Fund may invest in a portfolio of fixed-income securities, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">such as corporate bonds and notes, mortgage-backed securities (including commercial mortgage-backed securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and collateralized mortgage obligations), asset-backed securities (including collateralized debt obligations (“CDOs”) </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and collateralized loan obligations (“CLOs”)), convertible securities, preferred securities and government obligations. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Convertible debt securities have features of both fixed-income and equity securities and often are issued by </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">companies that have lower credit ratings but higher potential for long-term growth. The Fund may invest in fixed-income </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities of both U.S. or non-U.S. issuers without limit, including in securities of issuers located in emerging markets. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may also invest significantly in non-investment grade bonds (high yield, junk bonds or distressed securities), </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">including non-investment grade bonds of issuers located in emerging markets, non-investment grade bank loans and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">non-dollar denominated bonds. The Fund’s investments in non-dollar denominated bonds may be on a currency hedged </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or unhedged basis. Non-investment grade bonds or bank loans acquired by the Fund will generally be in the lower </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">categories of the major rating agencies at the time of purchase (BB or lower by S&amp;P Global Ratings, a division of S&amp;P </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Global Inc., or Ba or lower by Moody’s Investors Services, Inc.) or will be determined by the management team to be of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">similar quality. The average portfolio duration of the Fund will vary based on the management team’s forecast of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interest rates and there are no limits regarding portfolio duration or average maturity.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund intends to invest in certain income-producing instruments, including master limited partnerships (“MLPs”) </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(which are generally in energy-related industries), U.S. and non-U.S. real estate investment trusts (“REITs”), preferred </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">stock, structured products, structured notes that provide exposure to covered call options or other types of financial </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">instruments, floating rate securities (such as bank loans), dividend stocks and fixed-income securities. The Fund may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">also invest in closed-end investment companies.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may invest significantly in derivatives, including, but not limited to, interest rate swaps, total return swaps, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">credit default swaps, variance swaps, options (including covered call options), futures, options on futures and swaps </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and foreign currency transactions (including swaps), for hedging purposes, as well as to increase the return on its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">portfolio investments. The Fund may seek to obtain market exposure to the securities in which it primarily invests by </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">entering into a series of purchase and sale contracts or by using other investment techniques (such as reverse </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">repurchase agreements or dollar rolls). The underlying funds and ETFs in which the Fund invests may, to varying </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">degrees, also invest in derivatives.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may 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 also incur leverage (within the limits of applicable law) for investment purposes. The Fund may engage in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">active and frequent trading of portfolio securities to achieve its primary investment strategies.</span></div> Principal Risks of Investing in the Fund 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: 4.91pt; 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 and/or ETFs 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;">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 are 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 historically low interest rates. For </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">example, if interest rates increase by 1%, assuming a current portfolio duration of ten years, and all other factors </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">being equal, the value of the Fund’s investments would be expected to decrease by 10%. (Duration is a measure of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the price sensitivity of a debt security or portfolio of debt securities to relative changes in interest rates.) The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">magnitude of these fluctuations in the market price of bonds and other fixed-income securities is generally greater </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for those securities with longer maturities. Fluctuations in the market price of the Fund’s investments will not affect </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interest income derived from instruments already owned by the Fund, but will be reflected in the Fund’s net asset </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">value. The Fund may lose money if short-term or long-term interest rates rise sharply in a manner not anticipated by </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund 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;">Asset Class Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Securities and other assets or financial instruments in an underlying fund’s underlying index or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in the Fund’s portfolio may underperform in comparison to the general financial markets, a particular financial </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market or other asset classes.</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;">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="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><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></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><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;">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><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;">Affiliated Fund 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;">In managing the Fund, BlackRock will have authority to select and substitute underlying </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">funds and ETFs. BlackRock may be subject to potential conflicts of interest in selecting underlying funds and ETFs </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">because the fees paid to BlackRock by some underlying funds and ETFs are higher than the fees paid by other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">underlying funds and ETFs. However, BlackRock is a fiduciary to the Fund and is legally obligated to act in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund’s best interests when selecting underlying funds and ETFs. If an underlying fund or ETF holds interests in an </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">affiliated fund, the Fund may be prohibited from purchasing shares of that underlying fund or ETF.</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 CLOs, carry additional risks including, but not limited to: (i) the possibility </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the risk that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the collateral may default or decline in value or be downgraded, if rated by a nationally recognized statistical rating </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">organization; (iii) the Fund may invest in tranches of CDOs that are subordinate to other tranches; (iv) the structure </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and complexity of the transaction and the legal documents could lead to disputes among investors regarding the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">characterization of proceeds; (v) the investment return achieved by the Fund could be significantly different than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs; (vii) the risk of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">forced “fire sale” liquidation due to technical defaults such as coverage test failures; and (viii) the CDO’s manager </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">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;">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></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;">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, or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the prime rates of U.S. banks. As a result, the value of corporate loan investments is generally less exposed to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">adverse effects of shifts in market interest rates than investments that pay a fixed rate of interest. The market for </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">corporate loans may be subject to irregular trading activity and wide bid/ask spreads. In addition, transactions in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">corporate loans may settle on a delayed basis. As a result, the proceeds from the sale of corporate loans may not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">be readily available to make additional investments or to meet the Fund’s redemption obligations. To the extent the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">extended settlement process gives rise to short-term liquidity needs, the Fund may hold additional cash, sell </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments or temporarily borrow from banks and other lenders.</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;">Covered Call Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund intends to invest in covered call options and structured notes that provide exposure </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to covered call options. Covered call risk is the risk that the issuer of the call option will forgo any profit from </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">increases in the market value of the underlying security covering the call option above the sum of the premium and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the strike price of the call but retain the risk of loss if the underlying security declines in value. The Fund will have </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">no control over the exercise of the option by the option holder and may lose the benefit from any capital </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">appreciation on the underlying security. A number of factors may influence the option holder’s decision to exercise </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the option, including the value of the underlying security, price volatility, dividend yield and interest rates. To the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">extent that these factors increase the value of the call option, the option holder is more likely to exercise the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">option, which may negatively affect 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;">Distressed 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;"> 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 securities 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></div> </div> <div style="clear: both; position: relative;"></div> </div> <div style="line-height: 10.695pt; margin-left: 24pt; text-align: left;"><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; 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 European financial markets have recently experienced volatility and adverse trends due to concerns about </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">economic downturns in, or rising government debt levels of, several European countries as well as acts of war in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the region. These events may spread to other countries in Europe and may affect the value and liquidity of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">certain of the Fund’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; 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;">Geographic Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— A natural or manmade disaster could occur in a geographic region in which the Fund invests, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">which could adversely affect the economy or the business operations of companies located there, causing an </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">adverse impact on the Fund’s investments in the affected region.</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. In addition, investment in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">mortgage dollar rolls and participation in to-be-announced (</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">TBA</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">) transactions may significantly increase the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">portfolio turnover rate. A TBA transaction is a method of trading mortgage-backed securities where the buyer and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">seller agree upon general trade parameters such as agency, settlement date, par amount, and price at the time the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">contract is entered into but the mortgage-backed securities are delivered in the future, generally 30 days later.</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. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Liquid investments may become illiquid after purchase by the Fund, particularly during periods of market turmoil. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">There can be no assurance that a security or instrument that is deemed to be liquid when purchased will continue </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to be liquid for as long as it is held by the Fund, and any security or instrument held by the Fund may be deemed an </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">illiquid investment pursuant to the Fund’s liquidity risk management program. The Fund’s illiquid investments may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reduce the returns of the Fund because it may be difficult to sell the illiquid investments at an advantageous time </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or price. In addition, if the Fund is limited in its ability to sell illiquid investments during periods when shareholders </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are redeeming their shares, the Fund will need to sell liquid securities to meet redemption requests and illiquid </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities will become a larger portion of the Fund’s holdings. An investment may be illiquid due to, among other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">things, the reduced number and capacity of traditional market participants to make a market in fixed-income </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities or the lack of an active trading market. To the extent that the Fund’s principal investment strategies </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">involve derivatives or securities with substantial market and/or credit risk, the Fund will tend to have the greatest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposure to the risks associated with illiquid investments. Illiquid investments may be harder to value, especially in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">changing markets, and if the Fund is forced to sell these investments to meet redemption requests or for other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cash needs, the Fund may suffer a loss. This may be magnified in a rising interest rate environment or other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">circumstances where investor redemptions from fixed-income mutual funds may be higher than normal. In addition, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">when there is illiquidity in the market for certain securities, the Fund, due to limitations on illiquid investments, may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">be subject to purchase and sale restrictions.</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;">Income Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Income risk is the risk that the Fund’s yield will vary as short-term securities in its portfolio mature </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and the proceeds are reinvested in securities with different interest rates.</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;"> — 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;">Investment in Other Investment Companies Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — As with other investments, investments in other investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">companies, including the underlying funds and/or ETFs, are subject to market and selection risk. In addition, if the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund acquires shares of investment companies, including ones affiliated with the Fund, which may include </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">underlying funds and ETFs advised by BlackRock or other investment advisers, shareholders bear both their </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">proportionate share of expenses in the Fund (including management and advisory fees) and, indirectly, the </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;">expenses of the investment companies (to the extent not offset by BlackRock through waivers). To the extent the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund is held by an affiliated fund, the ability of the Fund itself to hold other investment companies may be limited.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Investing in an ETF will give the Fund exposure to the securities comprising the index on which the ETF is based. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Shares of ETFs are traded on an exchange throughout a trading day, and bought and sold based on market values </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and not at the ETF’s net asset value. For this reason shares of an ETF could trade at either a premium or discount </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to its net asset value. However, the trading prices of index-based ETFs tend to closely track the actual net asset </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">value of the ETF. The Fund will pay brokerage commissions in connection with the purchase and sale of shares of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">ETFs, in addition to a spread (i.e., the difference between what professional investors are willing to pay for ETF </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares (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;">bid</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> price) and the price at which they are willing to sell ETF shares (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;">ask</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> price)).</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: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Issuer Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Fund performance depends on the performance of individual securities to which the Fund has </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposure. Changes in the financial condition or credit rating of an issuer of those securities may cause the value of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the securities to decline.</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 “Investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Company Act”), 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;">Loans Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — An economic downturn generally leads to a higher non-payment rate, and a loan may lose significant </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">value before a default occurs. Moreover, any specific collateral used to secure a loan may decline in value or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">become illiquid, which would adversely affect the loan’s value. No active trading market may exist for certain loans, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">which may impair the ability of the Fund to realize full value in the event of the need to sell a loan and which may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">make it difficult to value loans. Although loans in which the Fund will invest generally will be secured by specific </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">collateral, there can be no assurance that liquidation of such collateral would satisfy the borrower’s obligation in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">event of non-payment of scheduled interest or principal or that such collateral could be readily liquidated. To the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">extent that a loan is collateralized by stock in the borrower or its subsidiaries, such stock may lose all of its value in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the event of the bankruptcy of the borrower. Uncollateralized senior loans involve a greater risk of loss.</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. The value of a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security or other asset may decline due to changes in general market conditions, economic trends or events that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are not specifically related to the issuer of the security or other asset, or factors that affect a particular issuer or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuers, exchange, country, group of countries, region, market, industry, group of industries, sector or asset class. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issues like pandemics or epidemics, recessions, or other events could have a significant impact on the Fund and its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments. Selection risk is the risk that the securities selected by Fund management will underperform the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">markets, the relevant indices or the securities selected by other funds with similar investment objectives and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment strategies. This means you may lose money.</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;">An outbreak of an infectious coronavirus (COVID-19) that was first detected in December 2019 developed into a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">global pandemic that has resulted in numerous disruptions in the market and has had significant economic impact </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">leaving general concern and uncertainty. Although vaccines have been developed and approved for use by various </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">governments, the duration of the pandemic and its effects cannot be predicted with certainty. The impact of this </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">coronavirus, and other epidemics and pandemics that may arise in the future, could affect the economies of many </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">nations, individual companies and the market in general ways that cannot necessarily be foreseen at the present </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">time.</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;">Master Limited Partnerships Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The common units of an MLP are listed and traded on U.S. securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exchanges and their value fluctuates predominantly based on prevailing market conditions and the success of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">MLP. Unlike owners of common stock of a corporation, owners of common units have limited voting rights and have </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">no ability to annually elect directors. In the event of liquidation, common units have preference over subordinated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">units, but not over debt or preferred units, to the remaining assets of the MLP.</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; 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;">“New Issues” 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;"> “New issues” are IPOs of equity securities. Securities issued in IPOs have no trading history, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and information about the companies may be available for very limited periods. In addition, the prices of securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">sold in IPOs may be highly volatile or may decline shortly after the IPO.</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;">Non-Agency Securities Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — There are no direct or indirect government or agency guarantees of payments in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">mortgage pools created by non-government issuers. Non-agency securities are also not subject to the same </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">underwriting requirements for the underlying mortgages that are applicable to those mortgage-related securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that have a government or government-sponsored entity guarantee. Non-agency securities with payments not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">guaranteed by a government agency generally involve greater credit risk than securities guaranteed by government </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">agencies. In addition, a substantial portion of the non-agency securities in which the Fund invests may be rated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">below investment grade (commonly known as “junk bonds”).</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;">Non-agency mortgage-related securities are not traded on an exchange and there may be a limited market for the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities, especially when there is a perceived weakness in the mortgage and real estate market sectors. Without </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">an active trading market, the non-agency mortgage-related securities held in the Fund’s portfolio may be particularly </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">difficult to value because of the complexities involved in assessing the value of the underlying mortgage loans.</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: 505.0pt;"><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;">Privatization Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Some countries in which the Fund invests have privatized, or have begun the process of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">privatizing, certain entities and industries. Privatized entities may lose money or be re-nationalized.</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;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Internal Revenue Code</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">), 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;">Restricted Securities 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;"> Limitations on the resale of restricted securities may have an adverse effect on their </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">marketability, and may prevent the Fund from disposing of them promptly at advantageous prices. Restricted </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities may not be listed on an exchange and may have no active trading market. In order to sell such securities, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund may have to bear the expense of registering the securities for resale and the risk of substantial delays in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">effecting the registration. Other transaction costs may be higher for restricted securities than unrestricted </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities. Restricted securities may be difficult to value because market quotations may not be readily available, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and the securities may have significant volatility. Also, the Fund may get only limited information about the issuer of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">a given restricted security, and therefore may be less able to predict a loss. Certain restricted securities may involve </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">a high degree of business and financial risk and may result in substantial losses to 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;">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;">Risks of Investing in Closed-End Funds </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;"> The shares of closed-end funds may trade at a price below (discount) or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">above (premium), or at, their net asset value. To the extent that the Fund invests a portion of its assets in closed-</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">end funds, those assets will be subject to the risks of the closed-end fund’s portfolio securities, and a shareholder </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in the Fund will bear not only his or her proportionate share of the expenses of the Fund, but also, indirectly, the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">expenses of the closed-end fund. The securities of closed-end funds in which the Fund may invest may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">leveraged. As a result, the Fund may be indirectly exposed to leverage through an investment in such securities. An </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;">investment in securities of closed-end funds that use leverage may expose the Fund to higher volatility in the market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">value of such securities and the possibility that the Fund’s long-term returns on such securities (and, indirectly, the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">long-term returns of the shares) will be diminished.</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;">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.</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: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">U.S. Government Issuer 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;"> Treasury obligations may differ in their interest rates, maturities, times of issuance </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and other characteristics. Obligations of U.S. Government agencies and authorities are supported by varying </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">degrees of credit but generally are not backed by the full faith and credit of the U.S. Government. No assurance can </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">be given that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">by law to do so.</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. These securities may be subject to greater illiquidity risk than other fixed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">income securities, meaning the absence of an active market for these securities could make it difficult for the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to dispose of them at any given time.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.91pt; 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;">Authorized Participant Concentration 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;"> Only an Authorized Participant may engage in creation or redemption transactions directly with an ETF. There are a limited number of institutions that may act as Authorized Participants for an ETF, including on an agency basis on behalf of other market participants. No Authorized Participant is obligated to engage in creation or redemption transactions. To the extent that Authorized Participants exit the business or do not place creation or redemption orders for an ETF and no other Authorized Participant places orders, ETF shares are more likely to trade at a premium or discount to NAV and possibly face trading halts or delisting. </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;">Management Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — If a passively managed ETF does not fully replicate the underlying index, it is subject to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risk that the manager’s investment management strategy may not produce the intended results.</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;">Passive Investment 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;"> The portfolios of certain ETFs are not actively managed and may be affected by a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">general decline in market segments relating to their respective indices. Such ETFs typically invest in securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">included in, or representative of, their respective indices regardless of their investment merits and do not attempt </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to take defensive positions in declining 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: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Representative Sampling Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Representative sampling is a method of indexing that involves investing in a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">representative sample of securities that collectively have a similar investment profile to the index and resemble the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">index in terms of risk factors and other key characteristics. A passively managed ETF may or may not hold every </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security in the index. When an ETF deviates from a full replication indexing strategy to utilize a representative </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">sampling strategy, the ETF is subject to an increased risk of tracking error, in that the securities selected in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">aggregate for the ETF may not have an investment profile similar to those of its index.</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;">Shares of an ETF May Trade at Prices Other Than Net Asset Value </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;"> Shares of an ETF trade on exchanges at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">prices at, above or below their most recent net asset value. The per share net asset value of an ETF is calculated at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the end of each business day and fluctuates with changes in the market value of the ETF’s holdings since the most </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">recent calculation. The trading prices of an ETF’s shares fluctuate continuously throughout trading hours based on </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market supply and demand rather than net asset value. The trading prices of an ETF’s shares may deviate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">significantly from net asset value during periods of market volatility. Any of these factors may lead to an ETF’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;">shares trading at a premium or discount to net asset value. However, because shares can be created and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">redeemed in creation units, which are aggregated blocks of shares that authorized participants who have entered </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">into agreements with the ETF’s distributor can purchase or redeem directly from the ETF, at net asset value (unlike </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares of many closed-end funds, which frequently trade at appreciable discounts from, and sometimes at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">premiums to, their net asset values), large discounts or premiums to the net asset value of an ETF are not likely to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">be sustained over the long-term. While the creation/redemption feature is designed to make it likely that an ETF’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares normally trade on exchanges at prices close to the ETF’s next calculated net asset value, exchange prices </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are not expected to correlate exactly with an ETF’s net asset value due to timing reasons as well as market supply </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and demand factors. In addition, disruptions to creations and redemptions or the existence of extreme market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">volatility may result in trading prices that differ significantly from net asset value. If a shareholder purchases at a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">time when the market price is at a premium to the net asset value or sells at a time when the market price is at a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">discount to the net asset value, the shareholder may sustain losses. The use of cash creations and redemptions </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may also cause the ETFs’ shares to trade in the market at greater bid-ask spreads or greater premiums or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">discounts to the ETFs’ NAV.</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;">Tracking Error Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Imperfect correlation between a passively managed ETF’s portfolio securities and those in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">its index, rounding of prices, the timing of cash flows, the ETF’s size, changes to the index and regulatory </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">requirements may cause tracking error, which is the divergence of an ETF’s performance from that of its underlying </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">index. This risk may be heightened during times of increased market volatility or other unusual market conditions. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Tracking error also may result because an ETF incurs fees and expenses while its underlying index does not.</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;">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. Effective March 31, 2024, the benchmark against which the Fund measures its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">performance was changed from a blended benchmark comprised of 70% MSCI World Index/30% Bloomberg U.S. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Aggregate Bond Index to a blended benchmark comprised of 50% MSCI World High Dividend Index/50% Bloomberg </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">U.S. High Yield 2% Issuer Capped Index. Fund management believes that the new benchmark is more representative of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the types of investments held within the Fund. The table compares the Fund’s performance to that of the MSCI World </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Index, the Bloomberg U.S. Aggregate Bond Index, the current customized performance benchmark comprised of 50% </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">MSCI World High Dividend Index/50% Bloomberg U.S. High Yield 2% Issuer Capped Index and the former benchmark </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">comprised of 70% MSCI World Index/30% Bloomberg U.S. Aggregate Bond Index. The performance information for </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">periods prior to March 28, 2016, the commencement of operations of Class K Shares, shows the performance of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund’s Institutional Shares. The performance of the Fund’s Class K Shares would be substantially similar to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Institutional Shares because Class K Shares and Institutional Shares invest in the same portfolio of securities and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">performance would only differ to the extent that Class K Shares and Institutional Shares have different expenses. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">actual returns of Class K Shares would have been higher than those of the Institutional Shares because Class K </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Shares have lower expenses than the Institutional Shares. To the extent that dividends and distributions have been </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">paid by the Fund, the performance information for the Fund in the chart and table assumes reinvestment of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">dividends and distributions. As with all such investments, past performance (before and after taxes) is not an </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">indication of future results. The table includes all applicable fees. If the Fund’s investment manager and its affiliates </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">had not waived or reimbursed certain Fund expenses during these periods, the Fund’s returns would have been lower. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Updated 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 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. Effective March 31, 2024, the benchmark against which the Fund measures its performance was changed from a blended benchmark comprised of 70% MSCI World Index/30% Bloomberg U.S. Aggregate Bond Index to a blended benchmark comprised of 50% MSCI World High Dividend Index/50% Bloomberg U.S. High Yield 2% Issuer Capped Index. Fund management believes that the new benchmark is more representative of the types of investments held within the Fund. 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 Dynamic High Income Portfolio As of 12/31 <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">During the periods shown in the bar chart, the highest return for a quarter was 13.02% (quarter ended June 30, 2020) </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and the lowest return for a quarter was -19.13% (quarter ended March 31, 2020). The year-to-date return as of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">September 30, 2024 was 11.50%.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> highest return 0.1302 2020-06-30 lowest return -0.1913 2020-03-31 year-to-date return 2024-09-30 0.1150 For the periods ended 12/31/23 Average Annual Total Returns 2014-11-03 2014-11-03 2014-11-03 0.1435 0.0563 0.0455 0.1142 0.0325 0.0202 0.0855 0.0341 0.0242 0.2379 0.1280 0.0896 0.0553 0.0110 0.0143 0.1812 0.0946 0.0688 0.1134 0.0689 0.0533 <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 81, 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, 2026. 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, 2026. 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. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 70, 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, 2026. 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, 2026. 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 do not correlate to the ratios of expenses to average net assets given in the Fund’s most recent annual financial statements, 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 81, 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 0.90% (for Investor A Shares), 1.65% (for Investor C Shares) and 0.65% (for Institutional Shares) of average daily net assets through June 30, 2026. 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 $250,000 or more. There is no CDSC on Investor C Shares after one year. 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, 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 70, 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 0.60% (for Class K Shares) of average daily net assets through June 30, 2026. 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.