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BlackRock Global Funds - Continental European Flexible Fund closes to subscriptions

BlackRock will be closing the fund to subscriptions on 7 November 2013

Impacts on
these closed products

Background

In conjunction with their risk management and portfolio management teams, BlackRock continuously review the investment capacity across their strategies to ensure that their funds are kept within a size that best enables them to be optimally managed and for the interests of shareholders to be protected. The Fund has received strong levels of subscriptions for a number of years and during this time they have taken preliminary steps (including reducing marketing activities) to control the size of the Fund to ensure that it does not exceed its capacity. As subscriptions have remained strong and the Fund continues to grow in size, BlackRock have decided to take further actions.


As at 27 August, the Net Asset Value of the Fund was €1.95 billion.


Changes to the Fund

From 7 November 2013 (the “Effective Date”), shares in the Fund will not be available for subscription to either new or existing shareholders.


Why have BlackRock decided to close the Fund to subscriptions?

BlackRock have taken this decision to control the size of the Fund, in accordance with the terms of the prospectus, to help ensure that the proceeds of subscriptions can be suitably invested and that existing investments can be efficiently managed. This in turn helps them in their aim of achieving the investment objectives of the Fund and in protecting the best interests of shareholders. Where steps are not taken to manage the size of a capacity constrained fund, a consequence may be a shortfall of available assets in which the proceeds of further subscriptions can be invested in line with the investment objective.


What this means to RL360° policyholders

We have taken the decision to remove the Fund as an investment option from our Preference and Prosper products with immediate effect meaning we will no longer allow reallocation of future premiums or future switch-in transactions into the Fund.


Existing investors can remain invested in the Fund until 31 January 2014 at which stage they will be required to switch out any holding they have in the Fund into an alternative fund available to their policy. They will also need to redirect any regular premium payments.


If we do not receive switch instructions by 31 January 2014 we will automatically switch their current holding, and redirect any regular premium from the BlackRock Global Funds - Continental European Flexible into an alternative fund. The alternative fund will be the Threadneedle European Select 'R' (GBP) which has a similar investment objective.


Policyholders affected by the subscription closure have been written to. A copy of the letter has been sent to their servicing adviser for information.


Sample letters and the BlackRock notification can be viewed opposite.


Please note that portfolio bond investors (PIMS, Select and Choice) can retain their existing holding in the fund and will not have to provide alternative instructions.