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2025-12-31 0001398078 bf2:ClassKMember bf2:BloombergUSAggregateBondIndexMember 2016-01-01 2025-12-31 0001398078 bf2:ClassKMember bf2:SeventeenFivePercentageMSCIWorldHighDividendYieldIndexMember 2016-01-01 2025-12-31 0001398078 bf2:ClassKMember bf2:SeventyPercentageBloombergUSAggregateBondIndexMember 2016-01-01 2025-12-31 0001398078 bf2:InvestorACAndInstitutionalMember bf2:BloombergUSAggregateBondIndexMember 2016-01-01 2025-12-31 0001398078 bf2:InvestorACAndInstitutionalMember bf2:SeventeenFivePercentageMSCIWorldHighDividendYieldIndexMember 2016-01-01 2025-12-31 0001398078 bf2:InvestorACAndInstitutionalMember bf2:SeventyPercentageBloombergUSAggregateBondIndexMember 2016-01-01 2025-12-31 iso4217:USD pure 0001398078 false 485BPOS 2025-12-31 0.0488 0.0961 0.0933 0.0503 -0.0082 0.0936 0.0551 0.0536 -0.0951 0.1003 -0.0910 0.1035 0.0519 0.0991 0.0970 0.0545 -0.0061 0.0978 0.0572 0.0566 N-1A BLACKROCK FUNDS II 2026-04-30 Fund OverviewKey Facts About BlackRock Managed Income Fund Investment Objective <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The investment objective of the BlackRock Managed Income Fund (the “Fund”) is to seek to maximize current income </span><span style="color:#000000;font-family:arial;font-size:9.30pt">with consideration for risk-managed total return.</span></div> Fees and Expenses of the Fund <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. </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 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">60</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-98</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) 0.0400 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) 0.0035 0.0035 0.0035 0.0025 0.0100 0 0.0026 0.0026 0.0029 0.0006 0.0006 0.0006 0.0092 0.0167 0.0070 -0.0022 -0.0022 -0.0025 0.0070 0.0145 0.0045 A contingent deferred sales charge (“CDSC”) of 0.50% 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. June 30, 2027 The Total Annual Fund Operating Expenses do not correlate to the ratios of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which does not include Acquired Fund Fees and Expenses. Example: <div style="line-height:10.695pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other </span><span style="color:#000000;font-family:arial;font-size:9.30pt">mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then </span><span style="color:#000000;font-family:arial;font-size:9.30pt">redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% </span><span style="color:#000000;font-family:arial;font-size:9.30pt">return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher </span><span style="color:#000000;font-family:arial;font-size:9.30pt">or lower, based on these assumptions your costs would be:</span><span style="color:#000000;font-family:arial;font-size:1pt;line-height:0.93pt"> </span></div> 469 660 868 1467 248 505 887 1758 46 199 365 847 You would pay the following expenses if you did not redeem your shares:  148 505 887 1758 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">106</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> 1.06 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 fixed-income securities and up to 30% of its assets in equity </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities. The Fund may also gain exposure to such fixed-income securities and equity securities by investing in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">BlackRock fixed-income and/or equity mutual funds (“underlying funds”) and affiliated and unaffiliated exchange-traded </span><span style="color:#000000;font-family:arial;font-size:9.30pt">funds (“ETFs”).</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 fixed-income securities such as corporate </span><span style="color:#000000;font-family:arial;font-size:9.30pt">bonds and notes, commercial and residential mortgage-backed securities (including collateralized mortgage </span><span style="color:#000000;font-family:arial;font-size:9.30pt">obligations), asset-backed securities (such as collateralized debt obligations, including collateralized loan obligations), </span><span style="color:#000000;font-family:arial;font-size:9.30pt">municipal securities, preferred securities, pass-through securities, U.S. Treasuries and agency securities, and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities issued or guaranteed by foreign governments, their agencies or instrumentalities, and floating rate </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities (such as bank loans). The Fund may also invest in non-investment grade bonds (high yield, junk bonds or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">distressed securities), non-investment grade bank loans, non-dollar denominated bonds and bonds of emerging market </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuers. The Fund’s investment in non-dollar denominated bonds may be on a currency hedged or unhedged basis. The </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund may invest in fixed-income securities of both U.S. and non-U.S. issuers, including emerging market issuers, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">without limit.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The average portfolio duration of the Fund will vary based on the management team’s forecast of interest rates and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">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">With respect to the Fund’s equity investments, the Fund may invest in common stock and preferred stock. The Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">generally intends to invest in dividend paying stocks. From time to time, the Fund may invest in shares of companies </span><span style="color:#000000;font-family:arial;font-size:9.30pt">through initial public offerings (“IPOs”). The Fund may invest in securities of both U.S. or non-U.S. issuers, including </span><span style="color:#000000;font-family:arial;font-size:9.30pt">emerging market issuers, without limit, which can be U.S. dollar based or non-U.S. dollar based and may be currency </span><span style="color:#000000;font-family:arial;font-size:9.30pt">hedged or unhedged. The Fund may invest in securities of companies of any market capitalization. In addition, the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund may invest in 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. The Fund may also 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">The Fund may, when consistent with its investment objective, buy or sell options or futures on a security or an index of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities, or enter into swaps and foreign currency transactions (collectively, commonly known as derivatives). The </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund’s use of derivatives will be primarily as part of a strategy designed to reduce exposure to other risks, such as </span><span style="color:#000000;font-family:arial;font-size:9.30pt">currency risk. The Fund may also use derivatives as a substitute for taking a position in the underlying asset. The Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may seek to obtain market exposure to the securities in which it primarily invests by entering into a series of purchase </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and sale contracts or by using other investment techniques (such as reverse repurchase agreements or dollar rolls). </span></div><div style="line-height:10.695pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The underlying funds and ETFs in which the Fund invests may, to varying degrees, also invest in derivatives. The Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may also engage in option writing to generate additional income in the portfolio.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">As part of the Fund’s risk management process, the Fund may allocate, without limitation, assets into cash or short-term</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> fixed-income securities, and away from riskier assets such as equity and high yield fixed-income securities.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund may engage in active and frequent trading of portfolio securities to achieve its primary investment strategies.</span></div> You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><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">Equity Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Stock markets are volatile. The price of equity securities fluctuates based on changes in a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">company’s financial condition and overall market and economic conditions.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">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 ETFs, are subject to market and selection risk. In addition, if the Fund acquires shares of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment companies, including ones affiliated with the Fund, shareholders bear both their proportionate share of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">expenses in the Fund (including management and advisory fees) and, indirectly, the expenses of the investment </span><span style="color:#000000;font-family:arial;font-size:9.30pt">companies (to the extent not offset by BlackRock through waivers). To the extent the Fund is held by an affiliated </span><span style="color:#000000;font-family:arial;font-size:9.30pt">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> <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 conflicts of interest in selecting underlying funds and ETFs because </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the fees paid to BlackRock by some underlying funds and ETFs are higher than the fees paid by other underlying </span><span style="color:#000000;font-family:arial;font-size:9.30pt">funds and ETFs. However, BlackRock is a fiduciary to the Fund and is legally obligated to act in the Fund’s best </span><span style="color:#000000;font-family:arial;font-size:9.30pt">interests when selecting underlying funds and ETFs. If an underlying fund or ETF holds interests in an affiliated fund, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">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">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">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 </span><span style="color:#000000;font-family:arial;font-size:9.30pt">transactions directly with an ETF. There are a limited number of institutions that may act as Authorized Participants </span><span style="color:#000000;font-family:arial;font-size:9.30pt">for an ETF, including on an agency basis on behalf of other market participants. No Authorized Participant is </span><span style="color:#000000;font-family:arial;font-size:9.30pt">obligated to engage in creation or redemption transactions. To the extent that Authorized Participants exit the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">business or do not place creation or redemption orders for an ETF and no other Authorized Participant places </span><span style="color:#000000;font-family:arial;font-size:9.30pt">orders, ETF shares are more likely to trade at a premium or discount to NAV and possibly face trading halts or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">delisting.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Collateralized Debt Obligations Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— In addition to the typical risks associated with fixed-income securities and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">asset-backed securities, collateralized debt obligations (</span><span style="color:#000000;font-family:arial;font-size:9.30pt">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt">CDOs</span><span style="color:#000000;font-family:arial;font-size:9.30pt">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt">), including collateralized loan obligations (</span><span style="color:#000000;font-family:arial;font-size:9.30pt">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt">CLOs</span><span style="color:#000000;font-family:arial;font-size:9.30pt">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt">), </span><span style="color:#000000;font-family:arial;font-size:9.30pt">carry additional risks including, but not limited to: (i) the possibility that distributions from collateral securities will </span><span style="color:#000000;font-family:arial;font-size:9.30pt">not be adequate to make interest or other payments; (ii) the risk that the collateral may default or decline in value </span><span style="color:#000000;font-family:arial;font-size:9.30pt">or be downgraded, if rated by a nationally recognized statistical rating organization; (iii) the Fund may invest in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">tranches of CDOs that are subordinate to other tranches; (iv) the structure and complexity of the transaction and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the legal documents could lead to disputes among investors regarding the characterization of proceeds; (v) the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment return achieved by the Fund could be significantly different than those predicted by financial models; </span><span style="color:#000000;font-family:arial;font-size:9.30pt">(vi) the lack of a readily available secondary market for CDOs; (vii) the risk of forced “fire sale” liquidation due to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">technical defaults such as coverage test failures; and (viii) the CDO’s manager may perform poorly.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Concentration Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — To the extent that the Fund’s portfolio reflects concentration in the securities of issuers in a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">particular region, market, industry, group of industries, country, group of countries, sector or asset class, the Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may be adversely affected by the performance of those securities, may be subject to increased price volatility and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that region, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">market, industry, group of industries, country, group of countries, sector or asset class.</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 </span><span style="color:#000000;font-family:arial;font-size:9.30pt">(“SOFR”), or the prime rates of U.S. banks. As a result, the value of corporate loan investments is generally less </span><span style="color:#000000;font-family:arial;font-size:9.30pt">exposed to the adverse effects of shifts in market interest rates than investments that pay a fixed rate of interest. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">The market for corporate loans may be subject to irregular trading activity and wide bid/ask spreads. In addition, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">transactions in corporate loans may settle on a delayed basis. As a result, the proceeds from the sale of corporate </span><span style="color:#000000;font-family:arial;font-size:9.30pt">loans may not be readily available to make additional investments or to meet the Fund’s redemption obligations. To </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the extent the extended settlement process gives rise to short-term liquidity needs, the Fund may hold additional </span><span style="color:#000000;font-family:arial;font-size:9.30pt">cash, sell investments or temporarily borrow from banks and other lenders. The corporate loans in which the Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">invests are usually rated below investment grade.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Counterparty Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The counterparty to an over-the-counter derivatives contract or a borrower of the Fund’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities may be unable or unwilling to make timely principal, interest or settlement payments, or otherwise to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">honor its obligations. Any such failure to honor its obligations may cause significant losses to the Fund.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Covered Call Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund intends to invest in structured notes that provide exposure to covered call options. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Covered call risk is the risk that the issuer of the call option will forgo any profit from increases in the market value </span><span style="color:#000000;font-family:arial;font-size:9.30pt">of the underlying security covering the call option above the sum of the premium and the strike price of the call but </span><span style="color:#000000;font-family:arial;font-size:9.30pt">retain the risk of loss if the underlying security declines in value. The Fund will have no control over the exercise of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the option by the option holder and may lose the benefit from any capital appreciation on the underlying security. A </span><span style="color:#000000;font-family:arial;font-size:9.30pt">number of factors may influence the option holder’s decision to exercise the option, including the value of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">underlying security, price volatility, dividend yield and interest rates. To the extent that these factors increase the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">value of the call option, the option holder is more likely to exercise the 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">Defensive Investing 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"> For defensive purposes, the Fund may, as part of its proprietary volatility control </span><span style="color:#000000;font-family:arial;font-size:9.30pt">process, allocate assets into cash or short-term fixed-income securities without limitation. In doing so, the Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may succeed in avoiding losses but may otherwise fail to achieve its investment objective. Further, the value of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">short-term fixed-income securities may be affected by changing interest rates and by changes in credit ratings of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investments. If the Fund holds cash uninvested it will be subject to the credit risk of the depositary institution </span><span style="color:#000000;font-family:arial;font-size:9.30pt">holding the cash.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Depositary Receipts Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Depositary receipts are generally subject to the same risks as the foreign securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">that they evidence or into which they may be converted. In addition to investment risks associated with the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">underlying issuer, depositary receipts expose the Fund to additional risks associated with the non-uniform terms </span><span style="color:#000000;font-family:arial;font-size:9.30pt">that apply to depositary receipt programs, credit exposure to the depository bank and to the sponsors and other </span><span style="color:#000000;font-family:arial;font-size:9.30pt">parties with whom the depository bank establishes the programs, currency risk and the risk of an illiquid market for </span><span style="color:#000000;font-family:arial;font-size:9.30pt">depositary receipts. The issuers of unsponsored depositary receipts are not obligated to disclose information that </span><span style="color:#000000;font-family:arial;font-size:9.30pt">is, in the United States, considered material. Therefore, there may be less information available regarding these </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuers and there may not be a correlation between such information and the market value of the depositary </span><span style="color:#000000;font-family:arial;font-size:9.30pt">receipts. While depositary receipts provide an alternative to directly purchasing underlying foreign securities in their </span><span style="color:#000000;font-family:arial;font-size:9.30pt">respective markets and currencies, they continue to be subject to many of the risks associated with investing </span><span style="color:#000000;font-family:arial;font-size:9.30pt">directly in foreign securities, including political, economic, and currency risk.</span></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="line-height:10.695pt;margin-left:12pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Hedging Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Hedges are sometimes subject to imperfect matching between the derivative and the underlying </span><span style="color:#000000;font-family:arial;font-size:9.30pt">security, and there can be no assurance that the Fund’s hedging transactions will be effective. The use of hedging </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may result in certain adverse tax consequences.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Tax Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Certain aspects of the tax treatment of derivative instruments, including swap agreements and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">commodity-linked derivative instruments, are currently unclear and may be affected by changes in legislation, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">regulations or other legally binding authority. Such treatment may be less favorable than that given to a direct </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment in an underlying asset and may adversely affect the timing, character and amount of income the Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">realizes from its investments.</span></div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">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">Dividend-Paying Stock 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 Fund’s emphasis on dividend-paying stocks involves the risk that such stocks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may fall out of favor with investors and underperform the broader market. Also, there is no guarantee that issuers </span><span style="color:#000000;font-family:arial;font-size:9.30pt">of the stocks held by the Fund will declare dividends in the future or that, if declared, they will be paid, or that they </span><span style="color:#000000;font-family:arial;font-size:9.30pt">will either remain at current levels or increase over time.</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">Dividend 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"> Because certain of the corporate loans held by the Fund will have floating or variable interest </span><span style="color:#000000;font-family:arial;font-size:9.30pt">rates, the amounts of the Fund’s monthly distributions to its shareholders are expected to vary with fluctuations in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">market interest rates. Generally, when market interest rates fall, the amount of the distributions to shareholders will </span><span style="color:#000000;font-family:arial;font-size:9.30pt">likewise decrease.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Dollar Rolls Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Dollar rolls involve the risk that the market value of the securities that the Fund is committed to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">buy may decline below the price of the securities the Fund has sold. These transactions may involve leverage.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Emerging Markets Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Emerging markets are riskier than more developed markets because they tend to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">develop unevenly and may never fully develop. Investments in emerging markets may be considered speculative. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Emerging markets are more likely to experience hyperinflation and currency devaluations, which adversely affect </span><span style="color:#000000;font-family:arial;font-size:9.30pt">returns to U.S. investors. In addition, many emerging financial markets have far lower trading volumes and less </span><span style="color:#000000;font-family:arial;font-size:9.30pt">liquidity than developed markets.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Event Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Event risk is the risk that corporate issuers may undergo restructurings, such as mergers, leveraged </span><span style="color:#000000;font-family:arial;font-size:9.30pt">buyouts, takeovers, or similar events financed by increased debt. As a result of the added debt, the credit quality </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and market value of a company’s bonds and/or other debt securities may decline significantly.</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;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;margin-left:12pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:493.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund’s claims to recover foreign withholding taxes may not be successful, and if the likelihood of recovery of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">foreign withholding taxes materially decreases, due to, for example, a change in tax regulation or approach in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">foreign country, accruals in the Fund’s net asset value for such refunds may be written down partially or in full, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">which will adversely affect the Fund’s net asset value.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Geographic 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"> From time to time the Fund may invest a substantial amount of its assets in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuers located in a single country or a limited number of countries. If the Fund concentrates its investments in this </span><span style="color:#000000;font-family:arial;font-size:9.30pt">manner, it assumes the risk that economic, political and social conditions in those countries will have a significant </span><span style="color:#000000;font-family:arial;font-size:9.30pt">impact on its investment performance. The Fund’s investment performance may also be more volatile if it </span><span style="color:#000000;font-family:arial;font-size:9.30pt">concentrates its investments in certain countries, especially emerging market countries.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">High Portfolio Turnover Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund may engage in active and frequent trading of its portfolio securities. High </span><span style="color:#000000;font-family:arial;font-size:9.30pt">portfolio turnover (more than 100%) may result in increased transaction costs to the Fund, including brokerage </span><span style="color:#000000;font-family:arial;font-size:9.30pt">commissions, dealer mark-ups and other transaction costs on the sale of the securities and on reinvestment in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">other securities. The sale of Fund portfolio securities may result in the realization and/or distribution to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">shareholders of higher capital gains or losses as compared to a fund with less active trading policies. These effects </span><span style="color:#000000;font-family:arial;font-size:9.30pt">of higher than normal portfolio turnover may adversely affect Fund performance.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">High Yield Bonds Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Although junk bonds generally pay higher rates of interest than investment grade bonds, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">junk bonds are high risk investments that are considered speculative and may cause income and principal losses </span><span style="color:#000000;font-family:arial;font-size:9.30pt">for the Fund.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Illiquid Investments Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund may not acquire any illiquid investment if, immediately after the acquisition, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the Fund would have invested more than 15% of its net assets in illiquid investments. An illiquid investment is any </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven </span><span style="color:#000000;font-family:arial;font-size:9.30pt">calendar days or less without the sale or disposition significantly changing the market value of the investment. </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 dispose of illiquid investments during periods when </span><span style="color:#000000;font-family:arial;font-size:9.30pt">shareholders are redeeming or selling their shares, or the Fund’s net assets otherwise shrink the Fund will need to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">dispose of liquid securities to meet redemption requests and illiquid securities will become a larger portion of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund’s holdings. An investment may be illiquid due to, among other things, the reduced number and capacity of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">traditional market participants to make a market in fixed-income securities or the lack of an active trading market. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">To the extent that the Fund’s principal investment strategies involve derivatives or securities with substantial market </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and/or credit risk, the Fund will tend to have greater exposure to the risks associated with illiquid investments. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Illiquid investments may be harder to value, especially in changing markets, and if the Fund is forced to sell these </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investments to meet redemption requests or for other cash needs, the Fund may suffer a loss. This may be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">magnified in a rising interest rate environment or other circumstances where investor redemptions or sales of Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">shares may be higher than normal. In addition, when there is illiquidity in the market for certain securities, the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund, due to limitations on illiquid investments, may be subject to purchase and sale restrictions.</span></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 Producing Stock Availability 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"> Depending upon market conditions, income producing common stock </span><span style="color:#000000;font-family:arial;font-size:9.30pt">that meets the Fund’s investment criteria may not be widely available and/or may be highly concentrated in only a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">few market sectors. This may limit the ability of the Fund to produce current income while remaining fully diversified.</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;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Indexed and inverse securities provide a potential return based on a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">particular index of value or interest rates. The Fund’s return on these securities will be subject to risk with respect </span><span style="color:#000000;font-family:arial;font-size:9.30pt">to the value of the particular index. These securities are subject to leverage risk and correlation risk. Certain </span><span style="color:#000000;font-family:arial;font-size:9.30pt">indexed and inverse securities have greater sensitivity to changes in interest rates or index levels than other </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities, and the Fund’s investment in such instruments may decline significantly in value if interest rates or index </span><span style="color:#000000;font-family:arial;font-size:9.30pt">levels move in a way Fund management does not anticipate.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Index-Related Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The index provider may rely on various sources of information to assess the criteria of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">components of the underlying index, including information that may be based on assumptions and estimates. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Neither the Fund nor BlackRock can offer assurances that the index provider’s methodology or sources of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">information will provide an accurate assessment of included components. Errors in index data, index computations </span><span style="color:#000000;font-family:arial;font-size:9.30pt">or the construction of the underlying index in accordance with its methodology may occur, and the index provider </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may not identify or correct them promptly or at all, which may have an adverse impact on the Fund and its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">shareholders. Unusual market conditions or other unforeseen circumstances (such as natural disasters, political </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">unrest or war) may impact the index provider or a third-party data provider and could cause the index provider to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">postpone a scheduled rebalance. This could cause the underlying index to vary from its normal or expected </span><span style="color:#000000;font-family:arial;font-size:9.30pt">composition.</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">Large-Capitalization Companies Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Large-capitalization companies may be less able than smaller-capitalization </span><span style="color:#000000;font-family:arial;font-size:9.30pt">companies to adapt to changing market conditions and competitive challenges. Large-capitalization companies may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">be more mature and subject to more limited growth potential compared with smaller-capitalization companies. The </span><span style="color:#000000;font-family:arial;font-size:9.30pt">performance of large-capitalization companies could trail the overall performance of the broader securities markets.</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">Leverage Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Some transactions may give rise to a form of economic leverage. These transactions may include, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">among others, derivatives, and may expose the Fund to greater risk and increase its costs. The use of leverage may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">to meet the applicable requirements of the Investment Company Act of 1940, as amended (the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt">Investment </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Company Act</span><span style="color:#000000;font-family:arial;font-size:9.30pt">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt">), and the rules thereunder. Increases and decreases in the value of the Fund’s portfolio will be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">magnified when the Fund uses leverage.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Market Risk and Selection Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Market risk is the risk that one or more markets in which the Fund invests will </span><span style="color:#000000;font-family:arial;font-size:9.30pt">go down in value, including the possibility that the markets will go down sharply and unpredictably. 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> <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 a master limited partnership (</span><span style="color:#000000;font-family:arial;font-size:9.30pt">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt">MLP</span><span style="color:#000000;font-family:arial;font-size:9.30pt">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt">) are listed and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">traded on U.S. securities exchanges and their value fluctuates predominantly based on prevailing market conditions </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and the success of the MLP. Unlike owners of common stock of a corporation, owners of common units have limited </span><span style="color:#000000;font-family:arial;font-size:9.30pt">voting rights and have no ability to annually elect directors. In the event of liquidation, common units have </span><span style="color:#000000;font-family:arial;font-size:9.30pt">preference over subordinated units, but not over debt or preferred units, to the remaining assets of the MLP.</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:505.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Mezzanine 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"> Mezzanine securities carry the risk that the issuer will not be able to meet its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">obligations and that the equity securities purchased with the mezzanine investments may lose value.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Mid Cap Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The securities of mid cap companies generally trade in lower volumes and are generally </span><span style="color:#000000;font-family:arial;font-size:9.30pt">subject to greater and less predictable price changes than the securities of larger capitalization companies.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Mortgage- and Asset-Backed Securities Risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Mortgage- and asset-backed securities represent interests in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">“pools” of mortgages or other assets, including consumer loans or receivables held in trust. Mortgage- and asset-</span><span style="color:#000000;font-family:arial;font-size:9.30pt">backed securities are subject to credit, interest rate, prepayment and extension risks. These securities also are </span><span style="color:#000000;font-family:arial;font-size:9.30pt">subject to risk of default on the underlying mortgage or asset, particularly during periods of economic downturn. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">certain mortgage-backed securities.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Municipal Securities Risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Municipal securities risks include the ability of the issuer to repay the obligation, the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">relative lack of information about certain issuers of municipal securities, and the possibility of future legislative </span><span style="color:#000000;font-family:arial;font-size:9.30pt">changes which could affect the market for and value of municipal securities. Budgetary constraints of local, state, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and federal governments upon which the issuers may be relying for funding may also impact municipal securities. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">These risks include:</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">General Obligation Bonds Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Timely payments depend on the issuer’s credit quality, ability to raise tax </span><span style="color:#000000;font-family:arial;font-size:9.30pt">revenues and ability to maintain an adequate tax base.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Revenue Bonds Risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— These payments depend on the money earned by the particular facility or class of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">facilities, or the amount of revenues derived from another source.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Private Activity Bonds Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Municipalities and other public authorities issue private activity bonds to finance </span><span style="color:#000000;font-family:arial;font-size:9.30pt">development of industrial facilities for use by a private enterprise. The private enterprise pays the principal and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">interest on the bond, and the issuer does not pledge its full faith, credit and taxing power for repayment.</span></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">Moral Obligation Bonds Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Moral obligation bonds are generally issued by special purpose public authorities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">of a state or municipality. If the issuer is unable to meet its obligations, repayment of these bonds becomes a moral </span><span style="color:#000000;font-family:arial;font-size:9.30pt">commitment, but not a legal obligation, of the state or municipality.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Municipal Notes Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Municipal notes are shorter term municipal debt obligations. If there is a shortfall in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">anticipated proceeds, the notes may not be fully repaid and the Fund may lose money.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Municipal Lease Obligations Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — In a municipal lease obligation, the issuer agrees to make payments when </span><span style="color:#000000;font-family:arial;font-size:9.30pt">due on the lease obligation. Although the issuer does not pledge its unlimited taxing power for payment of the lease </span><span style="color:#000000;font-family:arial;font-size:9.30pt">obligation, the lease obligation is secured by the leased property.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Tax-Exempt Status Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The Fund and its investment manager will rely on the opinion of issuers’ bond counsel </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and, in the case of derivative securities, sponsors’ counsel, on the tax-exempt status of interest on municipal bonds </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and payments under derivative securities. Neither the Fund nor its investment manager will independently review the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">bases for those tax opinions, which may ultimately be determined to be incorrect and subject the Fund and its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">shareholders to substantial tax liabilities.</span></div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">“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:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Operational and Technology Risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund is directly and indirectly susceptible to operational and technology </span><span style="color:#000000;font-family:arial;font-size:9.30pt">risks, including those related to human errors, processing errors, communication errors, systems failures, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">cybersecurity incidents, and the use of artificial intelligence and machine learning (“AI”), which may result in losses </span><span style="color:#000000;font-family:arial;font-size:9.30pt">for the Fund and its shareholders or may impair the Fund’s operations. While the Fund’s service providers are </span><span style="color:#000000;font-family:arial;font-size:9.30pt">required to have appropriate operational, information security and cybersecurity risk management policies and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">procedures, their methods of risk management may differ from those of the Fund. Operational and technology risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">for the issuers in which the Fund invests could also result in material adverse consequences for such issuers and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may cause the Fund’s investments in such issuers to lose value.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">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:505.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Preferred Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Preferred securities may pay fixed or adjustable rates of return. Preferred securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">are subject to issuer-specific and market risks applicable generally to equity securities. In addition, a company’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">preferred securities generally pay dividends only after the company makes required payments to holders of its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">bonds and other debt. For this reason, the value of preferred securities will usually react more strongly than bonds </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and other debt to actual or perceived changes in the company’s financial condition or prospects. Preferred </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities of smaller companies may be more vulnerable to adverse developments than preferred securities of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">larger companies.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Real Estate-Related Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The main risk of real estate-related securities is that the value of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">underlying real estate may go down. Many factors may affect real estate values. These factors include both the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">general and local economies, vacancy rates, changes in rent schedules, tenant bankruptcies, the ability to re-lease </span><span style="color:#000000;font-family:arial;font-size:9.30pt">space under expiring leases on attractive terms, the amount of new construction in a particular area, the laws and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">regulations (including zoning, environmental and tax laws) affecting real estate and the costs of owning, maintaining </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and improving real estate. The availability of mortgage financing and changes in interest rates may also affect real </span><span style="color:#000000;font-family:arial;font-size:9.30pt">estate values. If the Fund’s real estate-related investments are concentrated in one geographic area or in one </span><span style="color:#000000;font-family:arial;font-size:9.30pt">property type, the Fund will be particularly subject to the risks associated with that area or property type. Many </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuers of real estate-related securities are highly leveraged, which increases the risk to holders of such securities. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">The value of the securities the Fund buys will not necessarily track the value of the underlying investments of the </span></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">issuers of such securities. In addition, certain issuers of real estate-related securities may have developed or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">commenced development on properties and may develop additional properties in the future. Real estate </span><span style="color:#000000;font-family:arial;font-size:9.30pt">development involves significant risks in addition to those involved in the ownership and operation of established </span><span style="color:#000000;font-family:arial;font-size:9.30pt">properties. Real estate securities may have limited diversification and are, therefore, subject to risks inherent in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">operating and financing a limited number of projects. Real estate securities are also subject to heavy cash flow </span><span style="color:#000000;font-family:arial;font-size:9.30pt">dependency and defaults by borrowers or tenants.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> <div> <div style="clear:both;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">Reference Rate Replacement Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund may be exposed to financial instruments that recently transitioned </span><span style="color:#000000;font-family:arial;font-size:9.30pt">from, or continue to be tied to, the London Interbank Offered Rate (“LIBOR”) to determine payment obligations, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">financing terms, hedging strategies or investment value.</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">The United Kingdom’s Financial Conduct Authority (“FCA”), which regulates LIBOR, has ceased publishing all LIBOR </span><span style="color:#000000;font-family:arial;font-size:9.30pt">settings. In April 2023, however, the FCA announced that some USD LIBOR settings would continue to be published </span><span style="color:#000000;font-family:arial;font-size:9.30pt">under a synthetic methodology until September 30, 2024 for certain legacy contracts. After September 30, 2024, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the remaining synthetic LIBOR settings ceased to be published, and all LIBOR settings have permanently ceased. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">The Secured Overnight Financing Rate (“SOFR”) is a broad measure of the cost of borrowing cash overnight </span><span style="color:#000000;font-family:arial;font-size:9.30pt">collateralized by U.S. Treasury securities in the repurchase agreement (“repo”) market and has been used </span><span style="color:#000000;font-family:arial;font-size:9.30pt">increasingly on a voluntary basis in new instruments and transactions. Under U.S. regulations that implement a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">statutory fallback mechanism to replace LIBOR, benchmark rates based on SOFR have replaced LIBOR in certain </span><span style="color:#000000;font-family:arial;font-size:9.30pt">financial contracts.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">Neither the effect of the LIBOR transition process nor its ultimate success can yet be known. While some existing </span><span style="color:#000000;font-family:arial;font-size:9.30pt">LIBOR-based instruments may contemplate a scenario where LIBOR is no longer available by providing for an </span><span style="color:#000000;font-family:arial;font-size:9.30pt">alternative rate-setting methodology, there may be significant uncertainty regarding the effectiveness of any such </span><span style="color:#000000;font-family:arial;font-size:9.30pt">alternative methodologies to replicate LIBOR. Not all existing LIBOR-based instruments may have alternative rate-setting</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> provisions and there remains uncertainty regarding the willingness and ability of issuers to add alternative </span><span style="color:#000000;font-family:arial;font-size:9.30pt">rate-setting provisions in certain existing instruments. Parties to contracts, securities or other instruments using </span><span style="color:#000000;font-family:arial;font-size:9.30pt">LIBOR may disagree on transition rates or the application of transition regulation, potentially resulting in uncertainty </span><span style="color:#000000;font-family:arial;font-size:9.30pt">of performance and the possibility of litigation. The Fund may have instruments linked to other interbank offered </span><span style="color:#000000;font-family:arial;font-size:9.30pt">rates that may also cease to be published in the future.</span></div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">REIT Investment Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Investments in REITs involve unique risks. REITs may have limited financial resources, may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">trade less frequently and in limited volume, may engage in dilutive offerings of securities and may be more volatile </span><span style="color:#000000;font-family:arial;font-size:9.30pt">than other securities. REIT issuers may also fail to maintain their exemptions from investment company registration </span><span style="color:#000000;font-family:arial;font-size:9.30pt">or fail to qualify for the “dividends paid deduction” under the Internal Revenue Code of 1986, as amended, which </span><span style="color:#000000;font-family:arial;font-size:9.30pt">allows REITs to reduce their corporate taxable income for dividends paid to their 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, including any required lock up or holding periods, of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">restricted securities may have an adverse effect on their marketability and their liquidity, and may prevent the Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">from disposing of them promptly at advantageous prices, if at all. Restricted securities may not be listed on an </span><span style="color:#000000;font-family:arial;font-size:9.30pt">exchange and may have no active trading market. In order to sell certain restricted securities, the Fund may have to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">bear the expense of registering the securities for resale and the risk of substantial delays in effecting the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">registration. Other transaction costs may be higher for restricted securities than unrestricted securities. Restricted </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities may be difficult to value because market quotations may not be readily available, there may be limited </span><span style="color:#000000;font-family:arial;font-size:9.30pt">other information regarding the investment’s market or fair value, and the securities’ values may have significant </span><span style="color:#000000;font-family:arial;font-size:9.30pt">volatility. Also, the Fund may get only limited information about the issuer of a given restricted security, and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">therefore may be less able to determine the security’s market or fair value or assess the investment risks as fully </span><span style="color:#000000;font-family:arial;font-size:9.30pt">as for other issuers for which more information is available. Certain restricted securities may involve a high degree </span><span style="color:#000000;font-family:arial;font-size:9.30pt">of business and financial risk and may result in substantial losses to the Fund. Certain restricted securities may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">represent limited investment opportunities and each shareholder’s proportionate investment exposure to such </span><span style="color:#000000;font-family:arial;font-size:9.30pt">limited investment opportunities may be reduced proportionately as the Fund’s net assets grow from new or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">additional investments made in the Fund by other 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">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></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">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;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Risk of Investing in the United States </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Certain changes in the U.S. economy, such as when the U.S. economy </span><span style="color:#000000;font-family:arial;font-size:9.30pt">weakens or when its financial markets decline, may have an adverse effect on the securities to which the Fund has </span><span style="color:#000000;font-family:arial;font-size:9.30pt">exposure.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Risks of Loan Assignments and Participations </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— As the purchaser of an assignment, the Fund typically succeeds </span><span style="color:#000000;font-family:arial;font-size:9.30pt">to all the rights and obligations of the assigning institution and becomes a lender under the credit agreement with </span><span style="color:#000000;font-family:arial;font-size:9.30pt">respect to the debt obligation; however, the Fund may not be able unilaterally to enforce all rights and remedies </span><span style="color:#000000;font-family:arial;font-size:9.30pt">under the loan and with regard to any associated collateral. Because assignments may be arranged through private </span><span style="color:#000000;font-family:arial;font-size:9.30pt">negotiations between potential assignees and potential assignors, the rights and obligations acquired by the Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">as the purchaser of an assignment may differ from, and be more limited than, those held by the assigning lender. In </span><span style="color:#000000;font-family:arial;font-size:9.30pt">addition, if the loan is foreclosed, the Fund could become part owner of any collateral and could bear the costs and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">liabilities of owning and disposing of the collateral. The Fund may be required to pass along to a purchaser that </span><span style="color:#000000;font-family:arial;font-size:9.30pt">buys a loan from the Fund by way of assignment a portion of any fees to which the Fund is entitled under the loan. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">borrower with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and the Fund may not directly benefit from any collateral supporting the loan in which it has purchased the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">participation. As a result, the Fund will be subject to the credit risk of both the borrower and the lender that is </span><span style="color:#000000;font-family:arial;font-size:9.30pt">selling the participation. In the event of the insolvency of the lender selling a participation, the Fund may be treated </span><span style="color:#000000;font-family:arial;font-size:9.30pt">as a general creditor of the lender and may not benefit from any set-off between the lender and the borrower.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Second Lien Loans Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Second lien loans generally are subject to similar risks as those associated with </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investments in senior loans. Because second lien loans are subordinated or unsecured and thus lower in priority of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">payment to senior loans, they are subject to the additional risk that the cash flow of the borrower and property </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securing the loan or debt, if any, may be insufficient to meet scheduled payments after giving effect to the senior </span><span style="color:#000000;font-family:arial;font-size:9.30pt">secured obligations of the borrower.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Senior Loans Risk —</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> There is less readily available, reliable information about most senior loans than is the case </span><span style="color:#000000;font-family:arial;font-size:9.30pt">for many other types of securities. An economic downturn generally leads to a higher non-payment rate, and a senior </span><span style="color:#000000;font-family:arial;font-size:9.30pt">loan may lose significant value before a default occurs. Moreover, any specific collateral used to secure a senior </span><span style="color:#000000;font-family:arial;font-size:9.30pt">loan may decline in value or become illiquid, which would adversely affect the senior loan’s value. No active trading </span><span style="color:#000000;font-family:arial;font-size:9.30pt">market may exist for certain senior loans, which may impair the ability of the Fund to realize full value in the event </span><span style="color:#000000;font-family:arial;font-size:9.30pt">of the need to sell a senior loan and which may make it difficult to value senior loans. Although senior loans in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">which the Fund will invest generally will be secured by specific collateral, there can be no assurance that liquidation </span><span style="color:#000000;font-family:arial;font-size:9.30pt">of such collateral would satisfy the borrower’s obligation in the event of non-payment of scheduled interest or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">principal or that such collateral could be readily liquidated. To the extent that a senior loan is collateralized by stock </span><span style="color:#000000;font-family:arial;font-size:9.30pt">in the borrower or its subsidiaries, such stock may lose all of its value in the event of the bankruptcy of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">borrower. Uncollateralized senior loans involve a greater risk of loss.</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">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"> — 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;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Small Cap 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"> Small cap companies may have limited product lines or markets. They may be less </span><span style="color:#000000;font-family:arial;font-size:9.30pt">financially secure than larger, more established companies. They may depend on a more limited management group </span><span style="color:#000000;font-family:arial;font-size:9.30pt">than larger capitalized companies.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Sovereign Debt Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Sovereign debt instruments are subject to the risk that a governmental entity may delay or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">refuse to pay interest or repay principal on its sovereign debt, due, for example, to cash flow problems, insufficient </span><span style="color:#000000;font-family:arial;font-size:9.30pt">foreign currency reserves, political considerations, the relative size of the governmental entity’s debt position in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">relation to the economy or the failure to put in place economic reforms required by the International Monetary Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">or other multilateral agencies.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Structured Notes Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Structured notes and other related instruments purchased by the Fund are generally </span><span style="color:#000000;font-family:arial;font-size:9.30pt">privately negotiated debt obligations where the principal and/or interest is determined by reference to the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">performance of a specific asset, benchmark asset, market or interest rate (“reference measure”). The purchase of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">structured notes exposes the Fund to the credit risk of the issuer of the structured product. Structured notes may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">be leveraged, increasing the volatility of each structured note’s value relative to the change in the reference </span><span style="color:#000000;font-family:arial;font-size:9.30pt">measure. Structured notes may also be less liquid and more difficult to price accurately than less complex </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities and instruments or more traditional debt securities.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Structured Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Because structured securities of the type in which the Fund may invest typically </span><span style="color:#000000;font-family:arial;font-size:9.30pt">involve no credit enhancement, their credit risk generally will be equivalent to that of the underlying instruments, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">index or reference obligation and will also be subject to counterparty risk. The Fund may have the right to receive </span><span style="color:#000000;font-family:arial;font-size:9.30pt">payments only from the structured security, and generally does not have direct rights against the issuer or the entity </span><span style="color:#000000;font-family:arial;font-size:9.30pt">that sold the assets to be securitized. In addition to the general risks associated with debt securities discussed </span><span style="color:#000000;font-family:arial;font-size:9.30pt">herein, structured securities carry additional risks, including, but not limited to: the possibility that distributions </span><span style="color:#000000;font-family:arial;font-size:9.30pt">from collateral securities will not be adequate to make interest or other payments; the quality of the collateral may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">decline in value or default; and the possibility that the structured securities are subordinate to other classes. The </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund is permitted to invest in a class of structured securities that is either subordinated or unsubordinated to the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">right of payment of another class. Subordinated structured securities typically have higher yields and present </span><span style="color:#000000;font-family:arial;font-size:9.30pt">greater risks than unsubordinated structured securities. Structured securities are typically sold in private placement </span><span style="color:#000000;font-family:arial;font-size:9.30pt">transactions, and there currently is no active trading market for structured securities. Structured securities are </span><span style="color:#000000;font-family:arial;font-size:9.30pt">based upon the movement of one or more factors, including currency exchange rates, interest rates, reference </span><span style="color:#000000;font-family:arial;font-size:9.30pt">bonds and stock indices, and changes in interest rates and impact of these factors may cause significant price </span><span style="color:#000000;font-family:arial;font-size:9.30pt">fluctuations. Additionally, changes in the reference instrument or security may cause the interest rate on the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">structured security to be reduced to zero. Certain issuers of such structured securities may be deemed to be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">“investment companies” as defined in the Investment Company Act. As a result, the Fund’s investment in such </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities may be limited by certain investment restrictions contained in the Investment Company Act.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">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> <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">Treasury Obligations Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Direct obligations of the U.S. Treasury have historically involved little risk of loss of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">principal if held to maturity. However, due to fluctuations in interest rates, the market value of such securities may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">vary during the period shareholders own shares of the Fund. In addition, notwithstanding that U.S. Treasury </span><span style="color:#000000;font-family:arial;font-size:9.30pt">obligations are backed by the full faith and credit of the United States, circumstances could arise that could prevent </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the timely payment of interest or principal, such as reaching the legislative “debt ceiling.” Such non-payment could </span><span style="color:#000000;font-family:arial;font-size:9.30pt">result in losses to the Fund and substantial negative consequences for the U.S. economy and the global financial </span><span style="color:#000000;font-family:arial;font-size:9.30pt">system.</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">U.S. Government Mortgage-Related Securities Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — There are a number of important differences among the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">agencies and instrumentalities of the U.S. Government that issue mortgage-related securities and among the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities that they issue. Mortgage-related securities guaranteed by the Government National Mortgage </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Association (“GNMA” or “Ginnie Mae”) are guaranteed as to the timely payment of principal and interest by GNMA </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and such guarantee is backed by the full faith and credit of the United States. GNMA securities also are supported </span><span style="color:#000000;font-family:arial;font-size:9.30pt">by the right of GNMA to borrow funds from the U.S. Treasury to make payments under its guarantee. Mortgage-</span><span style="color:#000000;font-family:arial;font-size:9.30pt">related securities issued by Fannie Mae or Freddie Mac are solely the obligations of Fannie Mae or Freddie Mac, as </span></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">the case may be, and are not backed by or entitled to the full faith and credit of the United States but are </span><span style="color:#000000;font-family:arial;font-size:9.30pt">supported by the right of the issuer to borrow from the Treasury.</span></div> <div> <div style="clear:both;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">Valuation 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"> The price the Fund could receive upon the sale of any particular portfolio investment may differ </span><span style="color:#000000;font-family:arial;font-size:9.30pt">from the Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that </span><span style="color:#000000;font-family:arial;font-size:9.30pt">are valued using a fair valuation methodology or a price provided by an independent pricing service. As a result, the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">price received upon the sale of an investment may be less than the value ascribed by the Fund, and the Fund could </span><span style="color:#000000;font-family:arial;font-size:9.30pt">realize a greater than expected loss or lesser than expected gain upon the sale of the investment. Pricing services </span><span style="color:#000000;font-family:arial;font-size:9.30pt">that value fixed-income securities generally utilize a range of market-based and security-specific inputs and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">assumptions, as well as considerations about general market conditions, to establish a price. Pricing services </span><span style="color:#000000;font-family:arial;font-size:9.30pt">generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but may be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">held or transactions may be conducted in such securities in smaller, odd lot sizes. Odd lots of securities in certain </span><span style="color:#000000;font-family:arial;font-size:9.30pt">asset classes may trade at lower prices than institutional round lots, and the value ultimately realized when the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities are sold could differ from the prices used by the Fund. The Fund’s ability to value its investments may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">also be impacted by technological issues and/or errors by pricing services or other third-party service providers.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Variable and Floating Rate Instrument Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Variable and floating rate securities provide for periodic adjustment </span><span style="color:#000000;font-family:arial;font-size:9.30pt">in the interest rate paid on the securities. Securities with floating or variable interest rates can be less sensitive to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">interest rate changes than securities with fixed interest rates, but may decline in value if their coupon rates do not </span><span style="color:#000000;font-family:arial;font-size:9.30pt">reset as high, or as quickly, as comparable market interest rates, and generally carry lower yields than fixed </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities of the same maturity. These securities will not generally increase in value if interest rates decline. A </span><span style="color:#000000;font-family:arial;font-size:9.30pt">decline in interest rates may result in a reduction in income received from variable and floating rate securities held </span><span style="color:#000000;font-family:arial;font-size:9.30pt">by the Fund and may adversely affect the value of the Fund’s shares. These securities may be subject to greater </span><span style="color:#000000;font-family:arial;font-size:9.30pt">illiquidity risk than other fixed income securities, meaning the absence of an active market for these securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">could make it difficult for the Fund to dispose of them at any given time. Floating rate securities generally are </span><span style="color:#000000;font-family:arial;font-size:9.30pt">subject to legal or contractual restrictions on resale, may trade infrequently, and their value may be impaired when </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the Fund needs to liquidate such loans. Benchmark interest rates may not accurately track market interest rates. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Although floating rate securities are less sensitive to interest rate risk than fixed-rate securities, they are subject to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">credit risk and default risk, which could impair their value.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> 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. The table compares the Fund’s performance to that of the Bloomberg U.S. Aggregate </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Bond Index. The table below also compares the Fund’s performance to that of a customized benchmark comprised of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the returns of the MSCI World High Dividend Yield Index (17.5%) (Net), the Bloomberg U.S. Corporate High Yield 2% </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Issuer Capped Index (22.5%) and the Bloomberg U.S. Aggregate Bond Index (60%) and a customized benchmark </span><span style="color:#000000;font-family:arial;font-size:9.30pt">comprised of the returns of the Bloomberg U.S. Aggregate Bond Index (70%) and the S&amp;P 500® Index (30%). The </span><span style="color:#000000;font-family:arial;font-size:9.30pt">customized reference benchmarks are applicable to the Fund because BlackRock believes they have certain </span><span style="color:#000000;font-family:arial;font-size:9.30pt">characteristics that are helpful in evaluating the Fund. The Fund’s returns prior to October 1, 2016 as reflected in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">bar chart and the table are the returns of the Fund when it followed a different investment objective and different </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment strategies under the name “BlackRock Investment Grade Bond Portfolio.” The returns for Investor C Shares </span><span style="color:#000000;font-family:arial;font-size:9.30pt">prior to October 3, 2016, the commencement of operations of Investor C Shares, are based upon the performance of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the Fund’s Class K Shares, as adjusted to reflect the fees and expenses applicable to Investor C Shares. To the extent </span><span style="color:#000000;font-family:arial;font-size:9.30pt">that dividends and distributions have been paid by the Fund, the performance information for the Fund in the chart and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">table assumes reinvestment of the dividends and distributions. As with all such investments, past performance </span><span style="color:#000000;font-family:arial;font-size:9.30pt">(before and after taxes) is not an indication of future results. Sales charges are not reflected in the bar chart. If they </span><span style="color:#000000;font-family:arial;font-size:9.30pt">were, returns would be less than those shown. However, the table includes all applicable fees and sales charges. If </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the Fund’s investment manager and its affiliates had not waived or reimbursed certain Fund expenses during these </span><span style="color:#000000;font-family:arial;font-size:9.30pt">periods, the Fund’s returns would have been lower. Updated information on the Fund’s performance, including its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">current net asset value, can be obtained by visiting www.blackrock.com or can be obtained by phone at </span><span style="color:#000000;font-family:arial;font-size:9.30pt">(800) 882-0052</span><span style="color:#000000;font-family:arial;font-size:9.30pt">.</span></div> The information shows you how the Fund’s performance has varied year by year and provides some indication of the risks of investing in the Fund. The table compares the Fund’s performance to that of the Bloomberg U.S. Aggregate Bond Index. The table below also compares the Fund’s performance to that of a customized benchmark comprised of the returns of the MSCI World High Dividend Yield Index (17.5%) (Net), the Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index (22.5%) and the Bloomberg U.S. Aggregate Bond Index (60%) and a customized benchmark comprised of the returns of the Bloomberg U.S. Aggregate Bond Index (70%) and the S&P 500® Index (30%). The customized reference benchmarks are applicable to the Fund because BlackRock believes they have certain characteristics that are helpful in evaluating 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 Managed Income Fund As of 12/31 <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">During the ten-year period shown in the bar chart, the highest return for a quarter was 7.39% (quarter ended </span><span style="color:#000000;font-family:arial;font-size:9.30pt">December 31, 2023) and the lowest return for a quarter was -7.68% (quarter ended March 31, 2020).</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:1pt;line-height:0.93pt"> </span></div> highest return 0.0739 2023-12-31 lowest return -0.0768 2020-03-31 For the periods ended 12/31/25Average Annual Total Returns 0.0522 0.0297 0.0428 0.0304 0.0103 0.0254 0.0310 0.0145 0.0258 0.0780 0.0304 0.0403 0.0987 0.0407 0.0498 0.0730 -0.0036 0.0201 0.0954 0.0240 0.0425 0.1052 0.0404 0.0592 <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 Shares 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 Shares and Institutional Shares will vary. Fund OverviewKey Facts About BlackRock Managed Income Fund Investment Objective <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The investment objective of the BlackRock Managed Income Fund (the “Fund”) is to seek to maximize current income </span><span style="color:#000000;font-family:arial;font-size:9.30pt">with consideration for risk-managed total return.</span></div> Fees and Expenses of the Fund <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">This table describes the fees and expenses that you may pay if you buy, hold and sell Class K Shares of the Fund. </span><span style="color:#000000;font-family:arial;font-size:9.30pt;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 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) 0.0035 0 0.0020 0.0006 0.0061 -0.0021 0.0040 June 30, 2027 The Total Annual Fund Operating Expenses do not correlate to the ratios of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which does not include Acquired Fund Fees and Expenses. Example: <div style="line-height:10.695pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other </span><span style="color:#000000;font-family:arial;font-size:9.30pt">mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then </span><span style="color:#000000;font-family:arial;font-size:9.30pt">redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% </span><span style="color:#000000;font-family:arial;font-size:9.30pt">return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher </span><span style="color:#000000;font-family:arial;font-size:9.30pt">or lower, based on these assumptions your costs would be:</span><span style="color:#000000;font-family:arial;font-size:1pt;line-height:0.93pt"> </span></div> 41 174 319 742 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">106</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> 1.06 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 fixed-income securities and up to 30% of its assets in equity </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities. The Fund may also gain exposure to such fixed-income securities and equity securities by investing in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">BlackRock fixed-income and/or equity mutual funds (“underlying funds”) and affiliated and unaffiliated exchange-traded </span><span style="color:#000000;font-family:arial;font-size:9.30pt">funds (“ETFs”).</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 fixed-income securities such as corporate </span><span style="color:#000000;font-family:arial;font-size:9.30pt">bonds and notes, commercial and residential mortgage-backed securities (including collateralized mortgage </span><span style="color:#000000;font-family:arial;font-size:9.30pt">obligations), asset-backed securities (such as collateralized debt obligations, including collateralized loan obligations), </span><span style="color:#000000;font-family:arial;font-size:9.30pt">municipal securities, preferred securities, pass-through securities, U.S. Treasuries and agency securities, and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities issued or guaranteed by foreign governments, their agencies or instrumentalities, and floating rate </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities (such as bank loans). The Fund may also invest in non-investment grade bonds (high yield, junk bonds or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">distressed securities), non-investment grade bank loans, non-dollar denominated bonds and bonds of emerging market </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuers. The Fund’s investment in non-dollar denominated bonds may be on a currency hedged or unhedged basis. The </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund may invest in fixed-income securities of both U.S. and non-U.S. issuers, including emerging market issuers, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">without limit.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The average portfolio duration of the Fund will vary based on the management team’s forecast of interest rates and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">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">With respect to the Fund’s equity investments, the Fund may invest in common stock and preferred stock. The Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">generally intends to invest in dividend paying stocks. From time to time, the Fund may invest in shares of companies </span><span style="color:#000000;font-family:arial;font-size:9.30pt">through initial public offerings (“IPOs”). The Fund may invest in securities of both U.S. or non-U.S. issuers, including </span><span style="color:#000000;font-family:arial;font-size:9.30pt">emerging market issuers, without limit, which can be U.S. dollar based or non-U.S. dollar based and may be currency </span><span style="color:#000000;font-family:arial;font-size:9.30pt">hedged or unhedged. The Fund may invest in securities of companies of any market capitalization. In addition, the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund may invest in 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. The Fund may also 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">The Fund may, when consistent with its investment objective, buy or sell options or futures on a security or an index of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities, or enter into swaps and foreign currency transactions (collectively, commonly known as derivatives). The </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund’s use of derivatives will be primarily as part of a strategy designed to reduce exposure to other risks, such as </span><span style="color:#000000;font-family:arial;font-size:9.30pt">currency risk. The Fund may also use derivatives as a substitute for taking a position in the underlying asset. The Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may seek to obtain market exposure to the securities in which it primarily invests by entering into a series of purchase </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and sale contracts or by using other investment techniques (such as reverse repurchase agreements or dollar rolls). </span><span style="color:#000000;font-family:arial;font-size:9.30pt">The underlying funds and ETFs in which the Fund invests may, to varying degrees, also invest in derivatives. The Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may also engage in option writing to generate additional income in the portfolio.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">As part of the Fund’s risk management process, the Fund may allocate, without limitation, assets into cash or short-term</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> fixed-income securities, and away from riskier assets such as equity and high yield fixed-income securities.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund may engage in active and frequent trading of portfolio securities to achieve its primary investment strategies.</span></div> You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><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></div><div style="line-height:10.695pt;margin-left:12pt;text-align:left;"><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">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">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 ETFs, are subject to market and selection risk. In addition, if the Fund acquires shares of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment companies, including ones affiliated with the Fund, shareholders bear both their proportionate share of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">expenses in the Fund (including management and advisory fees) and, indirectly, the expenses of the investment </span><span style="color:#000000;font-family:arial;font-size:9.30pt">companies (to the extent not offset by BlackRock through waivers). To the extent the Fund is held by an affiliated </span><span style="color:#000000;font-family:arial;font-size:9.30pt">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> <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 conflicts of interest in selecting underlying funds and ETFs because </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the fees paid to BlackRock by some underlying funds and ETFs are higher than the fees paid by other underlying </span><span style="color:#000000;font-family:arial;font-size:9.30pt">funds and ETFs. However, BlackRock is a fiduciary to the Fund and is legally obligated to act in the Fund’s best </span><span style="color:#000000;font-family:arial;font-size:9.30pt">interests when selecting underlying funds and ETFs. If an underlying fund or ETF holds interests in an affiliated fund, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">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">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">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 </span><span style="color:#000000;font-family:arial;font-size:9.30pt">transactions directly with an ETF. There are a limited number of institutions that may act as Authorized Participants </span><span style="color:#000000;font-family:arial;font-size:9.30pt">for an ETF, including on an agency basis on behalf of other market participants. No Authorized Participant is </span><span style="color:#000000;font-family:arial;font-size:9.30pt">obligated to engage in creation or redemption transactions. To the extent that Authorized Participants exit 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">business or do not place creation or redemption orders for an ETF and no other Authorized Participant places </span><span style="color:#000000;font-family:arial;font-size:9.30pt">orders, ETF shares are more likely to trade at a premium or discount to NAV and possibly face trading halts or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">delisting.</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">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, collateralized debt obligations (</span><span style="color:#000000;font-family:arial;font-size:9.30pt">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt">CDOs</span><span style="color:#000000;font-family:arial;font-size:9.30pt">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt">), including collateralized loan obligations (</span><span style="color:#000000;font-family:arial;font-size:9.30pt">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt">CLOs</span><span style="color:#000000;font-family:arial;font-size:9.30pt">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt">), </span><span style="color:#000000;font-family:arial;font-size:9.30pt">carry additional risks including, but not limited to: (i) the possibility that distributions from collateral securities will </span><span style="color:#000000;font-family:arial;font-size:9.30pt">not be adequate to make interest or other payments; (ii) the risk that the collateral may default or decline in value </span><span style="color:#000000;font-family:arial;font-size:9.30pt">or be downgraded, if rated by a nationally recognized statistical rating organization; (iii) the Fund may invest in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">tranches of CDOs that are subordinate to other tranches; (iv) the structure and complexity of the transaction and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the legal documents could lead to disputes among investors regarding the characterization of proceeds; (v) the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment return achieved by the Fund could be significantly different than those predicted by financial models; </span><span style="color:#000000;font-family:arial;font-size:9.30pt">(vi) the lack of a readily available secondary market for CDOs; (vii) the risk of forced “fire sale” liquidation due to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">technical defaults such as coverage test failures; and (viii) the CDO’s manager may perform poorly.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Concentration Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — To the extent that the Fund’s portfolio reflects concentration in the securities of issuers in a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">particular region, market, industry, group of industries, country, group of countries, sector or asset class, the Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may be adversely affected by the performance of those securities, may be subject to increased price volatility and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that region, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">market, industry, group of industries, country, group of countries, sector or asset class.</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 </span><span style="color:#000000;font-family:arial;font-size:9.30pt">(“SOFR”), or the prime rates of U.S. banks. As a result, the value of corporate loan investments is generally less </span><span style="color:#000000;font-family:arial;font-size:9.30pt">exposed to the adverse effects of shifts in market interest rates than investments that pay a fixed rate of interest. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">The market for corporate loans may be subject to irregular trading activity and wide bid/ask spreads. In addition, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">transactions in corporate loans may settle on a delayed basis. As a result, the proceeds from the sale of corporate </span><span style="color:#000000;font-family:arial;font-size:9.30pt">loans may not be readily available to make additional investments or to meet the Fund’s redemption obligations. To </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the extent the extended settlement process gives rise to short-term liquidity needs, the Fund may hold additional </span><span style="color:#000000;font-family:arial;font-size:9.30pt">cash, sell investments or temporarily borrow from banks and other lenders. The corporate loans in which the Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">invests are usually rated below investment grade.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Counterparty Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The counterparty to an over-the-counter derivatives contract or a borrower of the Fund’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities may be unable or unwilling to make timely principal, interest or settlement payments, or otherwise to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">honor its obligations. Any such failure to honor its obligations may cause significant losses to the Fund.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Covered Call Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund intends to invest in structured notes that provide exposure to covered call options. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Covered call risk is the risk that the issuer of the call option will forgo any profit from increases in the market value </span><span style="color:#000000;font-family:arial;font-size:9.30pt">of the underlying security covering the call option above the sum of the premium and the strike price of the call but </span><span style="color:#000000;font-family:arial;font-size:9.30pt">retain the risk of loss if the underlying security declines in value. The Fund will have no control over the exercise of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the option by the option holder and may lose the benefit from any capital appreciation on the underlying security. A </span><span style="color:#000000;font-family:arial;font-size:9.30pt">number of factors may influence the option holder’s decision to exercise the option, including the value of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">underlying security, price volatility, dividend yield and interest rates. To the extent that these factors increase the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">value of the call option, the option holder is more likely to exercise the 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">Defensive Investing 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"> For defensive purposes, the Fund may, as part of its proprietary volatility control </span><span style="color:#000000;font-family:arial;font-size:9.30pt">process, allocate assets into cash or short-term fixed-income securities without limitation. In doing so, the Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may succeed in avoiding losses but may otherwise fail to achieve its investment objective. Further, the value of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">short-term fixed-income securities may be affected by changing interest rates and by changes in credit ratings of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investments. If the Fund holds cash uninvested it will be subject to the credit risk of the depositary institution </span><span style="color:#000000;font-family:arial;font-size:9.30pt">holding the cash.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Depositary Receipts Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Depositary receipts are generally subject to the same risks as the foreign securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">that they evidence or into which they may be converted. In addition to investment risks associated with the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">underlying issuer, depositary receipts expose the Fund to additional risks associated with the non-uniform terms </span><span style="color:#000000;font-family:arial;font-size:9.30pt">that apply to depositary receipt programs, credit exposure to the depository bank and to the sponsors and other </span></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">parties with whom the depository bank establishes the programs, currency risk and the risk of an illiquid market for </span><span style="color:#000000;font-family:arial;font-size:9.30pt">depositary receipts. The issuers of unsponsored depositary receipts are not obligated to disclose information that </span><span style="color:#000000;font-family:arial;font-size:9.30pt">is, in the United States, considered material. Therefore, there may be less information available regarding these </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuers and there may not be a correlation between such information and the market value of the depositary </span><span style="color:#000000;font-family:arial;font-size:9.30pt">receipts. While depositary receipts provide an alternative to directly purchasing underlying foreign securities in their </span><span style="color:#000000;font-family:arial;font-size:9.30pt">respective markets and currencies, they continue to be subject to many of the risks associated with investing </span><span style="color:#000000;font-family:arial;font-size:9.30pt">directly in foreign securities, including political, economic, and currency risk.</span></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></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">Dividend-Paying Stock 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 Fund’s emphasis on dividend-paying stocks involves the risk that such stocks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may fall out of favor with investors and underperform the broader market. Also, there is no guarantee that issuers </span><span style="color:#000000;font-family:arial;font-size:9.30pt">of the stocks held by the Fund will declare dividends in the future or that, if declared, they will be paid, or that they </span><span style="color:#000000;font-family:arial;font-size:9.30pt">will either remain at current levels or increase over time.</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:505.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Dividend 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"> Because certain of the corporate loans held by the Fund will have floating or variable interest </span><span style="color:#000000;font-family:arial;font-size:9.30pt">rates, the amounts of the Fund’s monthly distributions to its shareholders are expected to vary with fluctuations in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">market interest rates. Generally, when market interest rates fall, the amount of the distributions to shareholders will </span><span style="color:#000000;font-family:arial;font-size:9.30pt">likewise decrease.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Dollar Rolls Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Dollar rolls involve the risk that the market value of the securities that the Fund is committed to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">buy may decline below the price of the securities the Fund has sold. These transactions may involve leverage.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Emerging Markets Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Emerging markets are riskier than more developed markets because they tend to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">develop unevenly and may never fully develop. Investments in emerging markets may be considered speculative. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Emerging markets are more likely to experience hyperinflation and currency devaluations, which adversely affect </span><span style="color:#000000;font-family:arial;font-size:9.30pt">returns to U.S. investors. In addition, many emerging financial markets have far lower trading volumes and less </span><span style="color:#000000;font-family:arial;font-size:9.30pt">liquidity than developed markets.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Event Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Event risk is the risk that corporate issuers may undergo restructurings, such as mergers, leveraged </span><span style="color:#000000;font-family:arial;font-size:9.30pt">buyouts, takeovers, or similar events financed by increased debt. As a result of the added debt, the credit quality </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and market value of a company’s bonds and/or other debt securities may decline significantly.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Foreign Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Foreign investments often involve special risks not present in U.S. investments that can </span><span style="color:#000000;font-family:arial;font-size:9.30pt">increase the chances that the Fund will lose money. These risks include:</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;margin-left:12pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:493.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund generally holds its foreign securities and cash in foreign banks and securities depositories, which may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">be recently organized or new to the foreign custody business and may be subject to only limited or no regulatory </span><span style="color:#000000;font-family:arial;font-size:9.30pt">oversight.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;margin-left:12pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:493.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">Changes in foreign currency exchange rates can affect the value of the Fund’s portfolio.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;margin-left:12pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:493.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The economies of certain foreign markets may not compare favorably with the economy of the United States with </span><span style="color:#000000;font-family:arial;font-size:9.30pt">respect to such issues as growth of gross national product, reinvestment of capital, resources and balance of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">payments position.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;margin-left:12pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:493.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The governments of certain countries, or the U.S. Government with respect to certain countries, may prohibit or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">impose substantial restrictions through capital controls and/or sanctions on foreign investments in the capital </span><span style="color:#000000;font-family:arial;font-size:9.30pt">markets or certain industries in those countries, which may prohibit or restrict the ability to own or transfer </span><span style="color:#000000;font-family:arial;font-size:9.30pt">currency, securities, derivatives or other assets.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;margin-left:12pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:493.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">Many foreign governments do not supervise and regulate stock exchanges, brokers and the sale of securities to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the same extent as does the United States and may not have laws to protect investors that are comparable to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">U.S. securities laws.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;margin-left:12pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:493.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">Settlement and clearance procedures in certain foreign markets may result in delays in payment for or delivery of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities not typically associated with settlement and clearance of U.S. investments.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;margin-left:12pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:493.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund’s claims to recover foreign withholding taxes may not be successful, and if the likelihood of recovery of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">foreign withholding taxes materially decreases, due to, for example, a change in tax regulation or approach in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">foreign country, accruals in the Fund’s net asset value for such refunds may be written down partially or in full, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">which will adversely affect the Fund’s net asset value.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Geographic 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"> From time to time the Fund may invest a substantial amount of its assets in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuers located in a single country or a limited number of countries. If the Fund concentrates its investments in this </span><span style="color:#000000;font-family:arial;font-size:9.30pt">manner, it assumes the risk that economic, political and social conditions in those countries will have a significant </span><span style="color:#000000;font-family:arial;font-size:9.30pt">impact on its investment performance. The Fund’s investment performance may also be more volatile if it </span><span style="color:#000000;font-family:arial;font-size:9.30pt">concentrates its investments in certain countries, especially emerging market countries.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">High Portfolio Turnover Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund may engage in active and frequent trading of its portfolio securities. High </span><span style="color:#000000;font-family:arial;font-size:9.30pt">portfolio turnover (more than 100%) may result in increased transaction costs to the Fund, including brokerage </span><span style="color:#000000;font-family:arial;font-size:9.30pt">commissions, dealer mark-ups and other transaction costs on the sale of the securities and on reinvestment in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">other securities. The sale of Fund portfolio securities may result in the realization and/or distribution to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">shareholders of higher capital gains or losses as compared to a fund with less active trading policies. These effects </span><span style="color:#000000;font-family:arial;font-size:9.30pt">of higher than normal portfolio turnover may adversely affect Fund performance.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">High Yield Bonds Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Although junk bonds generally pay higher rates of interest than investment grade bonds, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">junk bonds are high risk investments that are considered speculative and may cause income and principal losses </span><span style="color:#000000;font-family:arial;font-size:9.30pt">for the Fund.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Illiquid Investments Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund may not acquire any illiquid investment if, immediately after the acquisition, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the Fund would have invested more than 15% of its net assets in illiquid investments. An illiquid investment is any </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven </span><span style="color:#000000;font-family:arial;font-size:9.30pt">calendar days or less without the sale or disposition significantly changing the market value of the investment. </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">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 dispose of illiquid investments during periods when </span><span style="color:#000000;font-family:arial;font-size:9.30pt">shareholders are redeeming or selling their shares or the Fund’s net assets otherwise shrink, the Fund will need to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">dispose of liquid securities to meet redemption requests and illiquid securities will become a larger portion of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund’s holdings. An investment may be illiquid due to, among other things, the reduced number and capacity of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">traditional market participants to make a market in fixed-income securities or the lack of an active trading market. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">To the extent that the Fund’s principal investment strategies involve derivatives or securities with substantial market </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and/or credit risk, the Fund will tend to have greater exposure to the risks associated with illiquid investments. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Illiquid investments may be harder to value, especially in changing markets, and if the Fund is forced to sell these </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investments to meet redemption requests or for other cash needs, the Fund may suffer a loss. This may be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">magnified in a rising interest rate environment or other circumstances where investor redemptions or sales of Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">shares may be higher than normal. In addition, when there is illiquidity in the market for certain securities, the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund, due to limitations on illiquid investments, may be subject to purchase and sale restrictions.</span></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 Producing Stock Availability 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"> Depending upon market conditions, income producing common stock </span><span style="color:#000000;font-family:arial;font-size:9.30pt">that meets the Fund’s investment criteria may not be widely available and/or may be highly concentrated in only a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">few market sectors. This may limit the ability of the Fund to produce current income while remaining fully diversified.</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;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Indexed and inverse securities provide a potential return based on a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">particular index of value or interest rates. The Fund’s return on these securities will be subject to risk with respect </span><span style="color:#000000;font-family:arial;font-size:9.30pt">to the value of the particular index. These securities are subject to leverage risk and correlation risk. Certain </span><span style="color:#000000;font-family:arial;font-size:9.30pt">indexed and inverse securities have greater sensitivity to changes in interest rates or index levels than other </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities, and the Fund’s investment in such instruments may decline significantly in value if interest rates or index </span><span style="color:#000000;font-family:arial;font-size:9.30pt">levels move in a way Fund management does not anticipate.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Index-Related Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The index provider may rely on various sources of information to assess the criteria of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">components of the underlying index, including information that may be based on assumptions and estimates. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Neither the Fund nor BlackRock can offer assurances that the index provider’s methodology or sources of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">information will provide an accurate assessment of included components. Errors in index data, index computations </span><span style="color:#000000;font-family:arial;font-size:9.30pt">or the construction of the underlying index in accordance with its methodology may occur, and the index provider </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may not identify or correct them promptly or at all, which may have an adverse impact on the Fund and its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">shareholders. Unusual market conditions or other unforeseen circumstances (such as natural disasters, political </span><span style="color:#000000;font-family:arial;font-size:9.30pt">unrest or war) may impact the index provider or a third-party data provider and could cause the index provider to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">postpone a scheduled rebalance. This could cause the underlying index to vary from its normal or expected </span><span style="color:#000000;font-family:arial;font-size:9.30pt">composition.</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">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">Large-Capitalization Companies Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Large-capitalization companies may be less able than smaller-capitalization </span><span style="color:#000000;font-family:arial;font-size:9.30pt">companies to adapt to changing market conditions and competitive challenges. Large-capitalization companies may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">be more mature and subject to more limited growth potential compared with smaller-capitalization companies. The </span><span style="color:#000000;font-family:arial;font-size:9.30pt">performance of large-capitalization companies could trail the overall performance of the broader securities markets.</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">Leverage Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Some transactions may give rise to a form of economic leverage. These transactions may include, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">among others, derivatives, and may expose the Fund to greater risk and increase its costs. The use of leverage may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">to meet the applicable requirements of the Investment Company Act of 1940, as amended (the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt">Investment </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Company Act</span><span style="color:#000000;font-family:arial;font-size:9.30pt">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt">), and the rules thereunder. Increases and decreases in the value of the Fund’s portfolio will be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">magnified when the Fund uses leverage.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Market Risk and Selection Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Market risk is the risk that one or more markets in which the Fund invests will </span><span style="color:#000000;font-family:arial;font-size:9.30pt">go down in value, including the possibility that the markets will go down sharply and unpredictably. 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></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">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;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 a master limited partnership (</span><span style="color:#000000;font-family:arial;font-size:9.30pt">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt">MLP</span><span style="color:#000000;font-family:arial;font-size:9.30pt">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt">) are listed and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">traded on U.S. securities exchanges and their value fluctuates predominantly based on prevailing market conditions </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and the success of the MLP. Unlike owners of common stock of a corporation, owners of common units have limited </span><span style="color:#000000;font-family:arial;font-size:9.30pt">voting rights and have no ability to annually elect directors. In the event of liquidation, common units have </span><span style="color:#000000;font-family:arial;font-size:9.30pt">preference over subordinated units, but not over debt or preferred units, to the remaining assets of the MLP.</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:505.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Mezzanine 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"> Mezzanine securities carry the risk that the issuer will not be able to meet its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">obligations and that the equity securities purchased with the mezzanine investments may lose value.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Mid Cap Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The securities of mid cap companies generally trade in lower volumes and are generally </span><span style="color:#000000;font-family:arial;font-size:9.30pt">subject to greater and less predictable price changes than the securities of larger capitalization companies.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Mortgage- and Asset-Backed Securities Risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Mortgage- and asset-backed securities represent interests in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">“pools” of mortgages or other assets, including consumer loans or receivables held in trust. Mortgage- and asset-</span><span style="color:#000000;font-family:arial;font-size:9.30pt">backed securities are subject to credit, interest rate, prepayment and extension risks. These securities also are </span><span style="color:#000000;font-family:arial;font-size:9.30pt">subject to risk of default on the underlying mortgage or asset, particularly during periods of economic downturn. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">certain mortgage-backed securities.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Municipal Securities Risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Municipal securities risks include the ability of the issuer to repay the obligation, the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">relative lack of information about certain issuers of municipal securities, and the possibility of future legislative </span><span style="color:#000000;font-family:arial;font-size:9.30pt">changes which could affect the market for and value of municipal securities. Budgetary constraints of local, state, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and federal governments upon which the issuers may be relying for funding may also impact municipal securities. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">These risks include:</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">General Obligation Bonds Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Timely payments depend on the issuer’s credit quality, ability to raise tax </span><span style="color:#000000;font-family:arial;font-size:9.30pt">revenues and ability to maintain an adequate tax base.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Revenue Bonds Risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— These payments depend on the money earned by the particular facility or class of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">facilities, or the amount of revenues derived from another source.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Private Activity Bonds Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Municipalities and other public authorities issue private activity bonds to finance </span><span style="color:#000000;font-family:arial;font-size:9.30pt">development of industrial facilities for use by a private enterprise. The private enterprise pays the principal and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">interest on the bond, and the issuer does not pledge its full faith, credit and taxing power for repayment.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Moral Obligation Bonds Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Moral obligation bonds are generally issued by special purpose public authorities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">of a state or municipality. If the issuer is unable to meet its obligations, repayment of these bonds becomes a moral </span><span style="color:#000000;font-family:arial;font-size:9.30pt">commitment, but not a legal obligation, of the state or municipality.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Municipal Notes Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Municipal notes are shorter term municipal debt obligations. If there is a shortfall in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">anticipated proceeds, the notes may not be fully repaid and the Fund may lose money.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Municipal Lease Obligations Risks</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — In a municipal lease obligation, the issuer agrees to make payments when </span><span style="color:#000000;font-family:arial;font-size:9.30pt">due on the lease obligation. Although the issuer does not pledge its unlimited taxing power for payment of the lease </span><span style="color:#000000;font-family:arial;font-size:9.30pt">obligation, the lease obligation is secured by the leased property.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Tax-Exempt Status Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The Fund and its investment manager will rely on the opinion of issuers’ bond counsel </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and, in the case of derivative securities, sponsors’ counsel, on the tax-exempt status of interest on municipal bonds </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and payments under derivative securities. Neither the Fund nor its investment manager will independently review the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">bases for those tax opinions, which may ultimately be determined to be incorrect and subject the Fund and its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">shareholders to substantial tax liabilities.</span></div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">“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="line-height:10.695pt;margin-left:12pt;text-align:left;"><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:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Operational and Technology Risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund is directly and indirectly susceptible to operational and technology </span><span style="color:#000000;font-family:arial;font-size:9.30pt">risks, including those related to human errors, processing errors, communication errors, systems failures, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">cybersecurity incidents, and the use of artificial intelligence and machine learning (“AI”), which may result in losses </span><span style="color:#000000;font-family:arial;font-size:9.30pt">for the Fund and its shareholders or may impair the Fund’s operations. While the Fund’s service providers are </span><span style="color:#000000;font-family:arial;font-size:9.30pt">required to have appropriate operational, information security and cybersecurity risk management policies and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">procedures, their methods of risk management may differ from those of the Fund. Operational and technology risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">for the issuers in which the Fund invests could also result in material adverse consequences for such issuers and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may cause the Fund’s investments in such issuers to lose value.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">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:505.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Preferred Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Preferred securities may pay fixed or adjustable rates of return. Preferred securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">are subject to issuer-specific and market risks applicable generally to equity securities. In addition, a company’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">preferred securities generally pay dividends only after the company makes required payments to holders of its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">bonds and other debt. For this reason, the value of preferred securities will usually react more strongly than bonds </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and other debt to actual or perceived changes in the company’s financial condition or prospects. Preferred </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities of smaller companies may be more vulnerable to adverse developments than preferred securities of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">larger companies.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Real Estate-Related Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The main risk of real estate-related securities is that the value of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">underlying real estate may go down. Many factors may affect real estate values. These factors include both the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">general and local economies, vacancy rates, changes in rent schedules, tenant bankruptcies, the ability to re-lease </span><span style="color:#000000;font-family:arial;font-size:9.30pt">space under expiring leases on attractive terms, the amount of new construction in a particular area, the laws and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">regulations (including zoning, environmental and tax laws) affecting real estate and the costs of owning, maintaining </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and improving real estate. The availability of mortgage financing and changes in interest rates may also affect real </span><span style="color:#000000;font-family:arial;font-size:9.30pt">estate values. If the Fund’s real estate-related investments are concentrated in one geographic area or in one </span><span style="color:#000000;font-family:arial;font-size:9.30pt">property type, the Fund will be particularly subject to the risks associated with that area or property type. Many </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuers of real estate-related securities are highly leveraged, which increases the risk to holders of such securities. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">The value of the securities the Fund buys will not necessarily track the value of the underlying investments of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuers of such securities. In addition, certain issuers of real estate-related securities may have developed or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">commenced development on properties and may develop additional properties in the future. Real estate </span><span style="color:#000000;font-family:arial;font-size:9.30pt">development involves significant risks in addition to those involved in the ownership and operation of established </span><span style="color:#000000;font-family:arial;font-size:9.30pt">properties. Real estate securities may have limited diversification and are, therefore, subject to risks inherent in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">operating and financing a limited number of projects. Real estate securities are also subject to heavy cash flow </span><span style="color:#000000;font-family:arial;font-size:9.30pt">dependency and defaults by borrowers or tenants.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Reference Rate Replacement Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund may be exposed to financial instruments that recently transitioned </span><span style="color:#000000;font-family:arial;font-size:9.30pt">from, or continue to be tied to, the London Interbank Offered Rate (“LIBOR”) to determine payment obligations, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">financing terms, hedging strategies or investment value.</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">The United Kingdom’s Financial Conduct Authority (“FCA”), which regulates LIBOR, has ceased publishing all LIBOR </span><span style="color:#000000;font-family:arial;font-size:9.30pt">settings. In April 2023, however, the FCA announced that some USD LIBOR settings would continue to be published </span><span style="color:#000000;font-family:arial;font-size:9.30pt">under a synthetic methodology until September 30, 2024 for certain legacy contracts. After September 30, 2024, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the remaining synthetic LIBOR settings ceased to be published, and all LIBOR settings have permanently ceased. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">The Secured Overnight Financing Rate (“SOFR”) is a broad measure of the cost of borrowing cash overnight </span><span style="color:#000000;font-family:arial;font-size:9.30pt">collateralized by U.S. Treasury securities in the repurchase agreement (“repo”) market and has been used </span><span style="color:#000000;font-family:arial;font-size:9.30pt">increasingly on a voluntary basis in new instruments and transactions. Under U.S. regulations that implement a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">statutory fallback mechanism to replace LIBOR, benchmark rates based on SOFR have replaced LIBOR in certain </span><span style="color:#000000;font-family:arial;font-size:9.30pt">financial contracts.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">Neither the effect of the LIBOR transition process nor its ultimate success can yet be known. While some existing </span><span style="color:#000000;font-family:arial;font-size:9.30pt">LIBOR-based instruments may contemplate a scenario where LIBOR is no longer available by providing for an </span><span style="color:#000000;font-family:arial;font-size:9.30pt">alternative rate-setting methodology, there may be significant uncertainty regarding the effectiveness of any such </span><span style="color:#000000;font-family:arial;font-size:9.30pt">alternative methodologies to replicate LIBOR. Not all existing LIBOR-based instruments may have alternative rate-setting</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> provisions and there remains uncertainty regarding the willingness and ability of issuers to add alternative </span><span style="color:#000000;font-family:arial;font-size:9.30pt">rate-setting provisions in certain existing instruments. Parties to contracts, securities or other instruments using </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">LIBOR may disagree on transition rates or the application of transition regulation, potentially resulting in uncertainty </span><span style="color:#000000;font-family:arial;font-size:9.30pt">of performance and the possibility of litigation. The Fund may have instruments linked to other interbank offered </span><span style="color:#000000;font-family:arial;font-size:9.30pt">rates that may also cease to be published in the future.</span></div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">REIT Investment Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Investments in REITs involve unique risks. REITs may have limited financial resources, may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">trade less frequently and in limited volume, may engage in dilutive offerings of securities and may be more volatile </span><span style="color:#000000;font-family:arial;font-size:9.30pt">than other securities. REIT issuers may also fail to maintain their exemptions from investment company registration </span><span style="color:#000000;font-family:arial;font-size:9.30pt">or fail to qualify for the “dividends paid deduction” under the Internal Revenue Code of 1986, as amended, which </span><span style="color:#000000;font-family:arial;font-size:9.30pt">allows REITs to reduce their corporate taxable income for dividends paid to their 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, including any required lock up or holding periods, of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">restricted securities may have an adverse effect on their marketability and their liquidity, and may prevent the Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">from disposing of them promptly at advantageous prices, if at all. Restricted securities may not be listed on an </span><span style="color:#000000;font-family:arial;font-size:9.30pt">exchange and may have no active trading market. In order to sell certain restricted securities, the Fund may have to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">bear the expense of registering the securities for resale and the risk of substantial delays in effecting the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">registration. Other transaction costs may be higher for restricted securities than unrestricted securities. Restricted </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities may be difficult to value because market quotations may not be readily available, there may be limited </span><span style="color:#000000;font-family:arial;font-size:9.30pt">other information regarding the investment’s market or fair value, and the securities’ values may have significant </span><span style="color:#000000;font-family:arial;font-size:9.30pt">volatility. Also, the Fund may get only limited information about the issuer of a given restricted security, and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">therefore may be less able to determine the security’s market or fair value or assess the investment risks as fully </span><span style="color:#000000;font-family:arial;font-size:9.30pt">as for other issuers for which more information is available. Certain restricted securities may involve a high degree </span><span style="color:#000000;font-family:arial;font-size:9.30pt">of business and financial risk and may result in substantial losses to the Fund. Certain restricted securities may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">represent limited investment opportunities and each shareholder’s proportionate investment exposure to such </span><span style="color:#000000;font-family:arial;font-size:9.30pt">limited investment opportunities may be reduced proportionately as the Fund’s net assets grow from new or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">additional investments made in the Fund by other 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">Reverse Repurchase Agreements Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Reverse repurchase agreements involve the sale of securities held by the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund with an agreement to repurchase the securities at an agreed-upon price, date and interest payment. Reverse </span><span style="color:#000000;font-family:arial;font-size:9.30pt">repurchase agreements involve the risk that the other party may fail to return the securities in a timely manner or at </span><span style="color:#000000;font-family:arial;font-size:9.30pt">all. The Fund could lose money if it is unable to recover the securities and the value of the collateral held by the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund, including the value of the investments made with cash collateral, is less than the value of the securities. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">These events could also trigger adverse tax consequences for the Fund. In addition, reverse repurchase agreements </span><span style="color:#000000;font-family:arial;font-size:9.30pt">involve the risk that the interest income earned in the investment of the proceeds will be less than the interest </span><span style="color:#000000;font-family:arial;font-size:9.30pt">expense.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Risk of Investing in the United States </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Certain changes in the U.S. economy, such as when the U.S. economy </span><span style="color:#000000;font-family:arial;font-size:9.30pt">weakens or when its financial markets decline, may have an adverse effect on the securities to which the Fund has </span><span style="color:#000000;font-family:arial;font-size:9.30pt">exposure.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Risks of Loan Assignments and Participations </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— As the purchaser of an assignment, the Fund typically succeeds </span><span style="color:#000000;font-family:arial;font-size:9.30pt">to all the rights and obligations of the assigning institution and becomes a lender under the credit agreement with </span><span style="color:#000000;font-family:arial;font-size:9.30pt">respect to the debt obligation; however, the Fund may not be able unilaterally to enforce all rights and remedies </span><span style="color:#000000;font-family:arial;font-size:9.30pt">under the loan and with regard to any associated collateral. Because assignments may be arranged through private </span><span style="color:#000000;font-family:arial;font-size:9.30pt">negotiations between potential assignees and potential assignors, the rights and obligations acquired by the Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">as the purchaser of an assignment may differ from, and be more limited than, those held by the assigning lender. In </span><span style="color:#000000;font-family:arial;font-size:9.30pt">addition, if the loan is foreclosed, the Fund could become part owner of any collateral and could bear the costs and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">liabilities of owning and disposing of the collateral. The Fund may be required to pass along to a purchaser that </span><span style="color:#000000;font-family:arial;font-size:9.30pt">buys a loan from the Fund by way of assignment a portion of any fees to which the Fund is entitled under the loan. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">borrower with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and the Fund may not directly benefit from any collateral supporting the loan in which it has purchased the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">participation. As a result, the Fund will be subject to the credit risk of both the borrower and the lender that is </span><span style="color:#000000;font-family:arial;font-size:9.30pt">selling the participation. In the event of the insolvency of the lender selling a participation, the Fund may be treated </span><span style="color:#000000;font-family:arial;font-size:9.30pt">as a general creditor of the lender and may not benefit from any set-off between the lender and the borrower.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Second Lien Loans Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Second lien loans generally are subject to similar risks as those associated with </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investments in senior loans. Because second lien loans are subordinated or unsecured and thus lower in priority of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">payment to senior loans, they are subject to the additional risk that the cash flow of the borrower and property </span></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">securing the loan or debt, if any, may be insufficient to meet scheduled payments after giving effect to the senior </span><span style="color:#000000;font-family:arial;font-size:9.30pt">secured obligations of the borrower.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> <div> <div style="clear:both;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">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"> — 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">Small Cap 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"> Small cap companies may have limited product lines or markets. They may be less </span><span style="color:#000000;font-family:arial;font-size:9.30pt">financially secure than larger, more established companies. They may depend on a more limited management group </span><span style="color:#000000;font-family:arial;font-size:9.30pt">than larger capitalized companies.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Sovereign Debt Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Sovereign debt instruments are subject to the risk that a governmental entity may delay or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">refuse to pay interest or repay principal on its sovereign debt, due, for example, to cash flow problems, insufficient </span><span style="color:#000000;font-family:arial;font-size:9.30pt">foreign currency reserves, political considerations, the relative size of the governmental entity’s debt position in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">relation to the economy or the failure to put in place economic reforms required by the International Monetary Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">or other multilateral agencies.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Structured Notes Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Structured notes and other related instruments purchased by the Fund are generally </span><span style="color:#000000;font-family:arial;font-size:9.30pt">privately negotiated debt obligations where the principal and/or interest is determined by reference to the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">performance of a specific asset, benchmark asset, market or interest rate (“reference measure”). The purchase of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">structured notes exposes the Fund to the credit risk of the issuer of the structured product. Structured notes may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">be leveraged, increasing the volatility of each structured note’s value relative to the change in the reference </span><span style="color:#000000;font-family:arial;font-size:9.30pt">measure. Structured notes may also be less liquid and more difficult to price accurately than less complex </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities and instruments or more traditional debt securities.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Structured Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Because structured securities of the type in which the Fund may invest typically </span><span style="color:#000000;font-family:arial;font-size:9.30pt">involve no credit enhancement, their credit risk generally will be equivalent to that of the underlying instruments, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">index or reference obligation and will also be subject to counterparty risk. The Fund may have the right to receive </span><span style="color:#000000;font-family:arial;font-size:9.30pt">payments only from the structured security, and generally does not have direct rights against the issuer or the entity </span><span style="color:#000000;font-family:arial;font-size:9.30pt">that sold the assets to be securitized. In addition to the general risks associated with debt securities discussed </span><span style="color:#000000;font-family:arial;font-size:9.30pt">herein, structured securities carry additional risks, including, but not limited to: the possibility that distributions </span><span style="color:#000000;font-family:arial;font-size:9.30pt">from collateral securities will not be adequate to make interest or other payments; the quality of the collateral may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">decline in value or default; and the possibility that the structured securities are subordinate to other classes. The </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund is permitted to invest in a class of structured securities that is either subordinated or unsubordinated to the </span></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">right of payment of another class. Subordinated structured securities typically have higher yields and present </span><span style="color:#000000;font-family:arial;font-size:9.30pt">greater risks than unsubordinated structured securities. Structured securities are typically sold in private placement </span><span style="color:#000000;font-family:arial;font-size:9.30pt">transactions, and there currently is no active trading market for structured securities. Structured securities are </span><span style="color:#000000;font-family:arial;font-size:9.30pt">based upon the movement of one or more factors, including currency exchange rates, interest rates, reference </span><span style="color:#000000;font-family:arial;font-size:9.30pt">bonds and stock indices, and changes in interest rates and impact of these factors may cause significant price </span><span style="color:#000000;font-family:arial;font-size:9.30pt">fluctuations. Additionally, changes in the reference instrument or security may cause the interest rate on the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">structured security to be reduced to zero. Certain issuers of such structured securities may be deemed to be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">“investment companies” as defined in the Investment Company Act. As a result, the Fund’s investment in such </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities may be limited by certain investment restrictions contained in the Investment Company Act.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> <div> <div style="clear:both;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> <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">Treasury Obligations Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Direct obligations of the U.S. Treasury have historically involved little risk of loss of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">principal if held to maturity. However, due to fluctuations in interest rates, the market value of such securities may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">vary during the period shareholders own shares of the Fund. In addition, notwithstanding that U.S. Treasury </span><span style="color:#000000;font-family:arial;font-size:9.30pt">obligations are backed by the full faith and credit of the United States, circumstances could arise that could prevent </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the timely payment of interest or principal, such as reaching the legislative “debt ceiling.” Such non-payment could </span><span style="color:#000000;font-family:arial;font-size:9.30pt">result in losses to the Fund and substantial negative consequences for the U.S. economy and the global financial </span><span style="color:#000000;font-family:arial;font-size:9.30pt">system.</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">U.S. Government Mortgage-Related Securities Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — There are a number of important differences among the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">agencies and instrumentalities of the U.S. Government that issue mortgage-related securities and among the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities that they issue. Mortgage-related securities guaranteed by the Government National Mortgage </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Association (</span><span style="color:#000000;font-family:arial;font-size:9.30pt">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt">GNMA</span><span style="color:#000000;font-family:arial;font-size:9.30pt">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt">Ginnie Mae</span><span style="color:#000000;font-family:arial;font-size:9.30pt">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt">) are guaranteed as to the timely payment of principal and interest by GNMA </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and such guarantee is backed by the full faith and credit of the United States. GNMA securities also are supported </span><span style="color:#000000;font-family:arial;font-size:9.30pt">by the right of GNMA to borrow funds from the U.S. Treasury to make payments under its guarantee. Mortgage-</span><span style="color:#000000;font-family:arial;font-size:9.30pt">related securities issued by Fannie Mae or Freddie Mac are solely the obligations of Fannie Mae or Freddie Mac, as </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the case may be, and are not backed by or entitled to the full faith and credit of the United States but are </span><span style="color:#000000;font-family:arial;font-size:9.30pt">supported by the right of the issuer to borrow from the Treasury.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Valuation 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"> The price the Fund could receive upon the sale of any particular portfolio investment may differ </span><span style="color:#000000;font-family:arial;font-size:9.30pt">from the Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that </span><span style="color:#000000;font-family:arial;font-size:9.30pt">are valued using a fair valuation methodology or a price provided by an independent pricing service. As a result, the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">price received upon the sale of an investment may be less than the value ascribed by the Fund, and the Fund could </span><span style="color:#000000;font-family:arial;font-size:9.30pt">realize a greater than expected loss or lesser than expected gain upon the sale of the investment. Pricing services </span><span style="color:#000000;font-family:arial;font-size:9.30pt">that value fixed-income securities generally utilize a range of market-based and security-specific inputs and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">assumptions, as well as considerations about general market conditions, to establish a price. Pricing services </span><span style="color:#000000;font-family:arial;font-size:9.30pt">generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but may be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">held or transactions may be conducted in such securities in smaller, odd lot sizes. Odd lots of securities in certain </span><span style="color:#000000;font-family:arial;font-size:9.30pt">asset classes may trade at lower prices than institutional round lots, and the value ultimately realized when the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities are sold could differ from the prices used by the Fund. The Fund’s ability to value its investments may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">also be impacted by technological issues and/or errors by pricing services or other third-party service providers.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Variable and Floating Rate Instrument Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Variable and floating rate securities provide for periodic adjustment </span><span style="color:#000000;font-family:arial;font-size:9.30pt">in the interest rate paid on the securities. Securities with floating or variable interest rates can be less sensitive to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">interest rate changes than securities with fixed interest rates, but may decline in value if their coupon rates do not </span><span style="color:#000000;font-family:arial;font-size:9.30pt">reset as high, or as quickly, as comparable market interest rates, and generally carry lower yields than fixed </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities of the same maturity. These securities will not generally increase in value if interest rates decline. A </span><span style="color:#000000;font-family:arial;font-size:9.30pt">decline in interest rates may result in a reduction in income received from variable and floating rate securities held </span><span style="color:#000000;font-family:arial;font-size:9.30pt">by the Fund and may adversely affect the value of the Fund’s shares. These securities may be subject to greater </span><span style="color:#000000;font-family:arial;font-size:9.30pt">illiquidity risk than other fixed income securities, meaning the absence of an active market for these securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">could make it difficult for the Fund to dispose of them at any given time. Floating rate securities generally are </span><span style="color:#000000;font-family:arial;font-size:9.30pt">subject to legal or contractual restrictions on resale, may trade infrequently, and their value may be impaired when </span></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">the Fund needs to liquidate such loans. Benchmark interest rates may not accurately track market interest rates. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Although floating rate securities are less sensitive to interest rate risk than fixed-rate securities, they are subject to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">credit risk and default risk, which could impair their value.</span></div> 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. The table compares the Fund’s performance to that of the Bloomberg U.S. Aggregate </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Bond Index. The table below also compares the Fund’s performance to that of a customized benchmark comprised of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the returns of the MSCI World High Dividend Yield Index (17.5%) (Net), the Bloomberg U.S. Corporate High Yield 2% </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Issuer Capped Index (22.5%) and the Bloomberg U.S. Aggregate Bond Index (60%) and a customized benchmark </span><span style="color:#000000;font-family:arial;font-size:9.30pt">comprised of the returns of the Bloomberg U.S. Aggregate Bond Index (70%) and the S&amp;P 500</span><span style="color:#000000;font-family:arial;font-size:5pt;position:relative;top:-3.25pt">®</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Index (30%). The </span><span style="color:#000000;font-family:arial;font-size:9.30pt">customized reference benchmarks are applicable to the Fund because BlackRock believes they have certain </span><span style="color:#000000;font-family:arial;font-size:9.30pt">characteristics that are helpful in evaluating the Fund. The Fund’s returns prior to October 1, 2016 as reflected in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">bar chart and the table are the returns of the Fund when it followed a different investment objective and different </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment strategies under the name “BlackRock Investment Grade Bond Portfolio.” 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. The table includes all applicable fees. If the Fund’s investment manager </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and its affiliates had not waived or reimbursed certain Fund expenses during these periods, the Fund’s returns would </span><span style="color:#000000;font-family:arial;font-size:9.30pt">have been lower. Updated information on the Fund’s performance, including its current net asset value, can be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">obtained by visiting www.blackrock.com or can be obtained by phone at </span><span style="color:#000000;font-family:arial;font-size:9.30pt">(800) 882-0052</span><span style="color:#000000;font-family:arial;font-size:9.30pt">.</span></div> The information shows you how the Fund’s performance has varied year by year and provides some indication of the risks of investing in the Fund. The table compares the Fund’s performance to that of the Bloomberg U.S. Aggregate Bond Index. The table below also compares the Fund’s performance to that of a customized benchmark comprised of the returns of the MSCI World High Dividend Yield Index (17.5%) (Net), the Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index (22.5%) and the Bloomberg U.S. Aggregate Bond Index (60%) and a customized benchmark comprised of the returns of the Bloomberg U.S. Aggregate Bond Index (70%) and the S&P 500® Index (30%). The customized reference benchmarks are applicable to the Fund because BlackRock believes they have certain characteristics that are helpful in evaluating 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 Managed Income Fund As of 12/31 <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">During the ten-year period shown in the bar chart, the highest return for a quarter was 7.45% (quarter ended </span><span style="color:#000000;font-family:arial;font-size:9.30pt">December 31, 2023) and the lowest return for a quarter was -7.68% (quarter ended March 31, 2020).</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:1pt;line-height:0.93pt"> </span></div> highest return 0.0745 2023-12-31 lowest return -0.0768 2020-03-31 For the periods ended 12/31/25Average Annual Total Returns 0.0991 0.0415 0.0504 0.0751 0.0206 0.0316 0.0588 0.0230 0.0312 0.0730 -0.0036 0.0201 0.0954 0.0240 0.0425 0.1052 0.0404 0.0592 <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 76, 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 managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2027. 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, 2027. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non-interested trustees of BlackRock Funds II (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 76, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Other Expenses (excluding Dividend Expense, Interest Expense and certain other Fund expenses) to 0.09% of the average daily net assets for Investor A, Investor C and Institutional Shares through June 30, 2027. 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. The Total Annual Fund Operating Expenses do not correlate to the ratios of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which does not include Acquired Fund Fees and Expenses. A contingent deferred sales charge (“CDSC”) of 0.50% 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. Returns for net indices generally assume the reinvestment of dividends after the deduction of the maximum withholding tax in each country applicable to non-residents of the country as determined by the index provider. Such indices use withholding tax rates that are often at a higher rate than the rates to which the Fund is subject in each country, including for countries where the Fund is not subject to withholding taxes. When this is the case, index performance will be lower than if the index used the Fund’s applicable withholding tax rates, if any. There is no CDSC on Investor C Shares after one year. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 64, 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 managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2027. 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, 2027. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non-interested trustees of BlackRock Funds II (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 64, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Other Expenses (excluding Dividend Expense, Interest Expense and certain other Fund expenses) to 0.04% of the average daily net assets for Class K Shares through June 30, 2027. 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. The Total Annual Fund Operating Expenses do not correlate to the ratios of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which does not include Acquired Fund Fees and Expenses. Returns for net indices generally assume the reinvestment of dividends after the deduction of the maximum withholding tax in each country applicable to non-residents of the country as determined by the index provider. Such indices use withholding tax rates that are often at a higher rate than the rates to which the Fund is subject in each country, including for countries where the Fund is not subject to withholding taxes. When this is the case, index performance will be lower than if the index used the Fund’s applicable withholding tax rates, if any.