Black rock

Citywire Newcits Retreat Event2 & 3 December 2010 For use with institutional and professional investors only — proprietary and confidential Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

What is driving the boom in UCITS III Products? Traditional Asset Hedge Managers Funds Strategy • Driven to provide investors • New client base access to Hedge fund like Long / Short Equity for hedge funds = diversify ManagerManager Driven Driven returns Credit client base • Ability to charge Multi Strategy • AIFM Regulations – performance fees for unclear whilst UCITS is a Market Neutral Alpha established framework Currency Emerging Markets Macro • Client base you • New requirement know well has witnessed Managed Future following Madoff for DrivenDriven ClientClient benefits of hedge fund Volatility Trading additional transparency strategies and better liquidity Commodities • Increasingly viewing • More restrictive limits on FOF Absolute Return as a core % of Portfolio invested in element of a portfolio Event Driven Hedge Funds Convertibles 50% of HF Managers Plan to Launch a UCITS III Product* Source: HF Intelligence For use with institutional and professional investors only — proprietary and confidential 2 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

BlackRock UK Absolute Alpha Fund – The History Fund (%) Cash*(%) FTSE All-Share (%)May-Dec 2005 6.9 1.0 21.12006 13.5 1.4 16.72007 9.8 1.9 5.32008 1.5 1.5 -30.22009 7.9 0.2 30.12010 1.0 0.1 9.4Cumulative Return S.I.** 49.2 6.2 48.5Return since launch p.a.*** 7.5 1.1 7.4Volatility p.a. 4.6 0.2 16.0Source: Internal as at 31 October 2010. Net income reinvested in sterling terms, bid to bid prices, class A returns to 31 December 2006, Class P returns thereafter. From 1September 2007, Class A units are no longer available for further investment. * Cash returns as measured by UK Savings £2500+ (net). ** Cumulative Returns Since Inception of theA Share Class. *** Launch date (A class) 29 April 2005. Volatility measured using standard deviation, currently as at 31 July 2010 For use with institutional and professional investors only — proprietary and confidential 3 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

Risk & Return: Where does Absolute Return Fit? UK Absolute Alpha v IMA Sector Averages 6% BlackRock UK Absolute Alpha 5% 4% 3% Return (pa.) Money Market UK Corporate Bond 2% UK Savings 2500 net Cautious Managed Balanced Managed 1% 0% UK All Companies -1% UK Equity Income -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% RiskSource of Performance figures: Fund - BlackRock: IMA Sector and Indices - Morningstar. Data based on monthly returns expressed in GBP, Period 31 March 2006 – 31 July 2010. Fund datarelates to Class P performance. For use with institutional and professional investors only — proprietary and confidential 4 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

BlackRock Strategic Funds (BSF)European Diversified Equity AbsoluteReturn FundDecember 2010 For use with institutional and professional investors only — proprietary and confidential Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

The BSF European Diversified Equity Absolute Return Fund (EDEAR)Pan European all-cap equity market neutral strategy • Targeting absolute returns with minimal correlation to underlying equity marketsA proven strategy, now in a UCITS III daily-dealing structure • Strategy has delivered 11.2% p.a. since inception (2002) with volatility of 9.5%* • Gross exposure between 200% – 600%Focus on consistent and reliable outperformance through a unique blend of investment insights • Exposure to several opportunity sets through 3 bespoke market neutral stock-selection models – Large Cap & Small Cap models exploit investment opportunities over a 3-6 month horizon – Mid Horizon – captures investment opportunities over horizons of less than 1 month • Investors gain access to a highly diverse range of fundamental, behavioural and technical themes • Delivered consistent performance across the market cycle: +12.2% in 2008 followed by +21.0% in 2009 and +11.6% YTD* for 2010*Emphasis on portfolio construction and unrivalled risk management • BSF European Diversified Equity Absolute Return Fund (EDEAR) is managed as an equity market neutral strategy at all times – returns have minimal correlation with underlying equity markets • Portfolio risk is spread by taking small positions across a high number of stocks – BSF EDEAR typically exploits long and short positions in as many as 1,500-2,000 stocks • Ability to leverage the Fund’s exposure blends the principles of diversification and conviction investing* As at 31 October 2010. Returns are based on the same strategy employed in an offshore vehicle and cap weighted returns of individual market neutral strategies run by BlackRock in other pooled vehicles from March 2002 –July 2007. Performance is based on a similar share class, however the BSF EDEAR Fund will be subject to different dealing terms, fees and charges that may affect performance and exposures. For use with institutional and professional investors only — proprietary and confidential 6 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

Investment process UNIVERSE: 2,000 stocks Return forecasting Fundamental Mid-Horizon Relative Value Quality Sentiment Industry Stat Short Term Alpha Event Driven Arbitrage Trending Trawler Mid-Horizon Large Cap Portfolio Small Cap Portfolio Portfolio Portfolio construction Risk forecasting & cost forecasting For use with institutional and professional investors only — proprietary and confidential 7 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

EDEAR investment strategy Large Cap & Small Relative value Cap Stock Selection process scores and ranks Quality approximately 2,000 stocks daily against a range on investment criteria or ‘Signals’ Sentiment Outperform Industry Neutral Mid Horizon Statistical Trending Underperform Events Alpha Trawler For use with institutional and professional investors only — proprietary and confidential 8 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

Performance: “Winning by not losing”Strategy has delivered a net return since inception of 11.2% p.a. (realised volatility 9.5% p.a.)*Consistent performance across market cycle: 12.2% in 2008 followed by 21.0% in 2009* Strategy Returns EDEAR strategy* vs MSCI Europe cumulative performance Gross % Net %260 2010 YTD 15.2 11.6240 2010 Q4 4.6 3.6220 2010 Q3 1.2 0.7200 2010 Q2 -0.2 -0.2180 2010 Q1 9.0 7.1160 2009 25.7 21.0 2008 13.9 12.2140 2007* -1.6 -4.6120 2006* 14.8 13.2100 2005* 6.4 3.680 2004* 31.1 24.260 2003* 0.9 -1.3 Feb-02 Aug-02 Feb-03 Aug-03 Feb-04 Aug-04 Feb-05 Aug-05 Feb-06 Aug-06 Feb-07 Aug-07 Feb-08 Aug-08 Feb-09 Aug-09 Feb-10 Aug-10 2002* 27.9 21.0 cumulative return since inception* 234.9 0.0 MSCI Europe BlackRock Eos Ltd return since inception p.a.* 15.0 0.0 realised vol p.a. since inception* 10.2 0.0Source: Blackrock/ Datastream. MSCI Europe Total Return in USD** As at 31 October 2010 Returns are based on the same strategy employed in an offshore vehicle and cap weighted returns of individual market neutral strategies run by BlackRock in other pooledvehicles from March 2002 –July 2007. Performance is based on a similar share class, however the BSF EDEAR Fund will be subject to different dealing terms, fees and charges that may affectperformance and exposures. For use with institutional and professional investors only — proprietary and confidential 9 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

EDEAR Strategy versus European Equities and European Corporate BondsBSF EDEAR Strategy v Morningstar categories averages ($) 80 60 40 Return % 20 0 0 10 20 30 40 50 60 -20 -40 -60 Volatility % BSF EDEAR Strategy ($) Morningstar European Corporate Bond Sector Avg ($) Morningstar European Equity Large Cap Blend Sector Avg ($)Source: BlackRock, Morningstar, bid to bid prices with income reinvested. European Equities and European Corporate Bonds reflect the Morningstar Categories. Chart shows 12 month forwardreturn and standard deviation of returns over the same period for 36 months from June 2006 and June 2010. EDEAR returns taken from performance of the same strategy employed in an offshorevehicle and cap weighted returns of individual market neutral strategies run by BlackRock in other pooled vehicles from March 2002 – July 2007. Performance is based on a similar share class,however the BSF EDEAR Fund will be subject to different dealing terms, fees and charges that may affect performance and exposures. For use with institutional and professional investors only — proprietary and confidential 10 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

Scientific Active Equity – Absolute return capabilities SAE has been running equity market neutral strategies since 1996 London March 2002 Tokyo May 2001 San Francisco April 1996 Hong-Kong / Singapore / Korea July 2003 Sydney August 2001 Approx $11bn gross exposure in Equity Market Neutral Worldwide* $2.8bn gross exposure in European Equity Market Neutral** *As at 30 June 2010 **As at 31 Oct 2010 For use with institutional and professional investors only — proprietary and confidential 12 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

EDEAR team Simon Weinberger Head of Portfolio Management, Europe Research Portfolio management Strategy Trading Richard Mathieson Scott Cowling Linus Franngard Head of Strategy, Europe Head of Equity Trading, Europe Kari Sigurdsson Robert Fisher Ross Curds Alex Bossong Equity Market Stephen Lok Tom Morris David Wright Neutral Trading Daniel Mayston Shelly Nuruzzuman Martina Jobst Mark Butterworth Anthony PanterAs at 30 September 2010 For use with institutional and professional investors only — proprietary and confidential 13 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

Why invest in equity market neutral?In simple terms, absolute return investing aims to: • Deliver a positive return regardless of whether markets rise or fall • Do so with a lower risk (i.e. lower volatility) than a traditional equity investment • Absolute return investing therefore aims to provide more stable returns How can this be done? Short Stock NAV Long Stock €300 m €100 m €300 mThe fund can take long and short positions in equities through the use of derivatives • Derivatives are used to gain increased exposures to long and short positions • We maintain equivalent exposures on each side, long and short • Total GROSS exposure is 600% (300% long PLUS 300% short) • But NET exposure to underlying equity markets is 0% (300% long MINUS 300% Short).Source BlackRock: Illustration only For use with institutional and professional investors only — proprietary and confidential 14 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

Why invest in equity market neutral?Equity market neutral focuses on alpha, not betaBeta is the return that can be attributed to the market, not the managerReducing beta means that manager skill (‘alpha’) counts moreHowever returns should be less correlated with underlying equity markets and other managers Absolute return fund Traditional Manager skill relative return (Alpha) fund Index fund Market exposure (Beta)Source BlackRock: Illustration only For use with institutional and professional investors only — proprietary and confidential 15 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

Consistent and reliable performance across the market cycle Cumulative net returns of EDEAR Strategy* vs peer group Net returns EDEAR Strategy* vs HFRI indices 60% 70% 60% 50% 50% 40% 40% EDEAR Strategy 2009 Return 30% 30% 20% 20% 10% 10% 0% -10% 0% -20% -10% -30% Jan-08 Mar-08 May-08 Jul-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-08 Sep-09 Sep-10 -75% -55% -35% -15% 5% 25% 2008 Return EDEAR Strategy HFRI Equity Market Neutral Index EDEAR Strategy has delivered a net return since inception* of 11.2% p.a. (realised volatility 9.5% p.a.) Consistent performance across market cycle: 12.2% in 2008 followed by 21.0% in 2009 Strategy has delivered 11.6% year to date as at 31st October 2010 EDEAR Fund has delivered a net return since inception of 7.1% (inception date 6th August 2010)Source: BlackRock and Hedge Fund Research. As at 31 October 2010. *Returns are based on the same strategy employed in an offshore vehicle and cap weighted returns of individual marketneutral strategies run by BlackRock in other pooled vehicles from March 2002 –July 2007. Performance is based on a similar share class, however the BSF EDEAR Fund will be subject to differentdealing terms, fees and charges that may affect performance and exposures. For use with institutional and professional investors only — proprietary and confidential 16 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

BSF EDEAR Strategy: correlations BSF EDEAR Strategy & selected indices (1 July 2007 – 30 June 2010) MSCI Emerging FTSE/EPRA Nareit EUR Govt 10y Commodities Correlations MSCI Europe Index Markets Index (Real Estate) Yield (GSCI) BSF EDEAR Strategy 0.09 0.17 -0.12 -0.02 0.12 Providing diversification benefitsSource: BlackRock. Correlation between returns of a similar strategy employed in an offshore vehicle and cap weighted returns of individual market neutral strategies run by BlackRock in otherpooled vehicles from March 2002 – July 2007 and selected indices based on monthly data. The Fund is not managed against any of the indices shown and comparison is made to illustrate the lowcorrelation with other asset classes.Based on correlation of monthly returns over 36 months to 30 June 2010 For use with institutional and professional investors only — proprietary and confidential 17 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

EDEAR strategy: correlation with equity market EDEAR strategy returns vs. MSCI Europe 15% 10% MSCI Europe 5% 0% -5% Correlation +0.09* -10% -15% -15% -10% -5% 0% 5% 10% 15%*Source: BlackRock & DataStream, monthly net return for 3 years to end October 2010. EDEAR returns are based on the same strategy employed in an offshore vehicle and cap weighted returnsof individual market neutral strategies run by BlackRock in other pooled vehicles from March 2002 – July 2007. Performance is based on a similar share class, however the BSF EDEAR Fund willbe subject to different dealing terms, fees and charges that may affect performance and exposures. For use with institutional and professional investors only — proprietary and confidential 18 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

BSF EDEAR Strategy versus EUR Money Markets, Corporate Bonds and Equities BSF EDEAR Strategy versus Morningstar Categories Averages in USD 40% BSF EDEAR Strategy ($) 30% 20% 3 year cumulative return 10% 0% -10% Euro Corporate Bond ($) -20% -30% -40% Europe Large-Cap Equity Blend Sector ($) -50% 0% 5% 10% 15% 20% 25% 30% 35% 40% 3-year volatilitySource of Performance figures: Fund - BlackRock: Morningstar Sector Averages and Indices - Morningstar. Data based on monthly returns expressed in USD, Period 1 July 2007 – 30 June 2010.Performance is expressed net of fees. For use with institutional and professional investors only — proprietary and confidential 19 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

BSF EDEAR Strategy: Beta Beta vs. MSCI Europe Index 0.50 0.40 0.30 0.20 0.10 0.00 -0.10 -0.20 -0.30 -0.40 -0.50 Dec-07 Dec-08 Feb-08 Feb-09 Dec-09 Aug-07 Aug-08 Aug-09 Jun-08 Jun-09 Apr-08 Apr-09 Oct-07 Oct-08 Oct-09 Feb-10 Jun-10 Apr-10 Ex ante Beta Low market beta, focus on stock selectionSource: BlackRock. Portfolio Beta from 31 August 2007 to 31 July 2010. For use with institutional and professional investors only — proprietary and confidential 20 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

Investment philosophy Return forecasting Thought leading research Intuitive and tested strategies Broad, consistent coverage Return Risk forecasting Cost forecasting Control all aspects of active risk Forecast, measure and manage costs Well diversified portfolios Smart trading boosts performance Industry and style neutral Risk Cost For use with institutional and professional investors only — proprietary and confidential 21 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

Large cap & small cap strategiesIntuitive and tested strategies with a 3-6 month investment horizon Relative value • We identify stocks trading below fair value relative to industry peers based on: – A range of current and forecast fundamentals – Equity and enterprise measures of the company Quality • We assess the sustainability of company performance by identifying: – Companies which will continue to produce consistent earnings and cash flows – Corporate finance decisions which are likely to benefit shareholders – Companies with superior operational and capital efficiencies Sentiment • We interpret market data to select stocks where: – Analysts have an improving view of the company – Company management show conviction in the stock’s future prospects – Well-informed investors believe the company will outperform Industry • We take informed industry bets by combining bottom up and top down themes: – Bottom-up stock selection views are aggregated to form a view at the industry level – For each industry this is combined with information on macro sensitivities – The aggregate view is then applied back to all stocks in the industry For use with institutional and professional investors only — proprietary and confidential 22 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

Mid Horizon modelIntuitive and tested strategies with an investment horizon of less than 1 month Statistical • We identify patterns in stock returns and exploit instances when these break down – Patterns between pairs of stocks or between single stocks and baskets where a relationship exists – Single stock reversals – Order book imbalances predict next day trade flow Trending • We identify trends that we expect to persist: – Analysts have an improving view of the company – Exploit the lead-lag effect between linked companies Events • Exploiting patterns in stock returns around key company events: – Earnings – Dividends Alpha Trawler • We harness the views of sell side trading desks: – Sell side trading desks pick stocks based on their perception of short term market sentiment For use with institutional and professional investors only — proprietary and confidential 23 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

Balancing value and quality Value vs quality example European food retail sector 5 4 Value (price to book) SELL – Expensive stocks with lower than average profitability 3 2 BUY – Cheap stocks with higher than average profitability 1 0 0% 5% 10% 15% 20% 25% 30% 35% Quality (return on equity)We favour stocks that are attractively priced given the underlying fundamentals of the businessAvoid value traps – many stocks are cheap for a reasonMultiple signals are used to gauge the underlying financial strength of the company and to identify where this has beenmispriced by the marketSource BlackRock: Illustration only For use with institutional and professional investors only — proprietary and confidential 24 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

Capturing sentimentProprietary survey information indicates which stocks are in favour • Aim at building a long term source of competitive advantage for BlackRock • Exploit BlackRock’s scale and market relationships • Communicating on our terms with over 1,000 analysts and over 750 companies in EuropeAnalyst survey – multiple-choice questions to equity analysts every 3 months, eg: • How do you rate the competitive position of the company versus its industry peers? • How likely is it that the company will be taken over in the next 6 months? • Relative to your current earnings forecast, what direction of earnings surprise is most likely?Company survey – questions to management every 3 months, eg: • What is your publicly disclosed expectation for revenue growth in your industry over the next 12 months? • Relative to the public guidance you have given on your expectations for your next annual earnings per share, what further public indication are you giving on whether you see greater upside potential or downside risk?European consumer survey since July 2009 • Information on consumer behaviour can provide an insight into future company fundamentals • Every 3 months BlackRock surveys over 1,000 consumers in the UK, France and Germany on buying intentions • Information gathered across a broad set of consumer sectors (autos, airlines, beverages, food retail, general retail and luxury goods) For use with institutional and professional investors only — proprietary and confidential 25 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

Fundamental: Capturing sentimentMacro signals help to identify key market trends • A range of Sentiment signals capture the sensitivity of share prices and company fundamentals to movements in key macro indicators • Example: Over the first half of 2010 the Euro depreciated providing a boost to companies earning a high proportion of revenues outside of the Europe • Our Currency effects signal captured the impact of the currency market movements on the momentum of stock returns European stocks relative performance of overseas Long vs domestic exposure % revenue overseas Price earning (FYI) Ahold 59% 11.6 Christian Dior 61% 15.51.2 Perod Ricard 67% 16.11.1 BMW 44% 17.21.0 Philips 78% 15.20.90.8 Short0.7 % revenue overseas Price earning (FYI)0.6 Carrefour 31% 14.20.5 L’Oreal 56% 20.30.4 Jul-08 Jul-09 Jul-10 Jan-09 Jan-10 Jul-07 Jan-08 Oct-08 Oct-09 Apr-08 Apr-09 Apr-10 Jan-07 Oct-07 Apr-07 LVMH 64% 18.7 Volkswagen 29% 18.6 Siemens 43% 13.3 Exporter DomesticSource: Goldman Sachs / Bloomberg / Relative performance of basket of European stocks with highest exposure to BRIC economies vs basket with highest exposure to domestic Europeaneconomy. Reference to the names of each company mentioned in this communications is merely for explaining the investment strategy, and should not be construed as investment advice orinvestment recommendation of those companies.Source: Bloomberg as at 30 June 2010. Revenue is reported 2009 figure. For use with institutional and professional investors only — proprietary and confidential 26 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

Mid Horizon: Exploiting patterns in stock returns over shorter horizons Statistical approach Cumulative performance* Example: Pairs trading180 • Identify a pair of stock prices that tend to move together (i.e. their160 returns have a high correlation)140 • Identify when the returns of the pair move apart – i.e. when the ‘Pair ratio’ moves away from the long term average120 • Bet on prices returning to the long term trend100 – Take a long position in the underperforming stock 80 – Take a short position in the outperforming stock 60 Key features of pair trading Feb-10 Dec-08 Dec-09 Jun-10 Aug-08 Oct-08 Oct-09 Apr-10 Jun-08 Jun-09 Aug-09 Feb-09 Apr-09 • High breadth – every stock typically has a pair. Short term Redrow Berkley fluctuations in demand and supply continuously cause the returns of pairs to move apart and come back together High breadth / high frequency trading approach** • High frequency / turnover – To capture these effects the portfolio must trade very aggressively – typical turnover of the Mid Horizon Grey bars show periods when trades in Redrow vs Berkely were placed70 strategy is 30x net per annum – Accurate forecasts of transaction65 costs are vital60 • Liquidity providing – Pairs trading is an example of a contrarian55 strategy that bets against short term movements in market demand.50 The strategy works well in times when demand for liquidity is high45403530 Oct-09 Apr-10 Aug-09 Dec-09 Feb-10 Jun-10 Feb-09 Oct-08 Dec-08 Jun-08 Aug-08 Jun-09 Apr-09 Pair Ratio MeanSources: *Datastream. ** BlackRock For use with institutional and professional investors only — proprietary and confidential 27 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

Mid Horizon: Exploiting patterns in stock returns over shorter horizons Trending approach Cumulative returns • Example: BP vs Royal Dutch Shell1.6 – BP and Royal Dutch Shell are a ‘pair’ within the integrated oil1.4 and gas sector1.2 – Since April this year BP has significantly underperformed1.0 Royal Dutch Shell0.80.6 – A purely statistical approach would have taken a long position0.4 in BP and short position in Royal Dutch Shell0.2 – However short term movements in analysts earnings,0.0 recommendations and price targets provide evidence to support prices trending rather than reversing Feb-10 Mar-10 Dec-09 Jan-10 Apr-10 May-10 Jun-10 Feb-09 May-09 Mar-09 Jul-09 Dec-08 Oct-09 Nov-09 Jan-09 Apr-09 Aug-09 Sep-09 Jun-09 BP RDS BP Plc BUY Recommendations as % of total recommendations85%80%75%70%65%60%55% 18-Jun-10 28-Jun-10 08-Jun-10 28-Feb-10 09-May-10 19-May-10 29-May-10 28-Jul-10 08-Jul-10 18-Jul-10 19-Apr-10 10-Mar-10 20-Mar-10 30-Mar-10 09-Apr-10 29-Apr-10Source: Bloomberg For use with institutional and professional investors only — proprietary and confidential 28 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

Portfolio construction – integrating alpha risk and trade costs Contribution to position and trade A stock’s common factor risks help Positive alpha drives a long minimize unintended bets — size, position industry, etc. — here, the stock provides needed size exposure vs. benchmark Each stock’s specific risk reins in its target position Transaction costs will pare down target size of trade Alpha Specific risk Common risk T-cost impact Target position Current position TradeProprietary risk and transaction cost models ensure that expected risk, cost and return are balanced in an optimal fashionPortfolio optimization simultaneously trades off all stocks in the investible universe (1,500 – 2,000 stocks)Optimal portfolio has the highest possible forecast return (post transaction costs), given risk target of 10% For use with institutional and professional investors only — proprietary and confidential 29 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

EDEAR strategy: risk allocation Blend of Large Cap, Small Cap and Mid Horizon Capital Risk strategies offers un-correlated return stream EDEAR Risk Allocation Allocation Allocation Pan Europe Large Cap 35.3% 37.6% Balanced allocation targeted at all times Pan Europe Small Cap 30.1% 27.3% • Fundamental (LC & SC) 50-70% Pan Europe Mid Horizon 34.6% 35.0% • Mid Horizon 30-50% Total 100% 100% Tactically allocating between three sub-strategies offers opportunities in alpha generation and risk 12 month daily correlations ** Large Cap Small Cap Mid Horizon management • Current allocation reflects opportunity to exploit macro Large Cap 1 volatility in large cap space Small Cap 0.02 1 Mid Horizon -0.11 0.01 1 EDEAR strategy – EDEAR strategy risk allocation time *** risk allocation through 100% 90% 80% 70% 60% 50% 40%* Source BlackRock - EDEAR risk allocation at 31st October 2010:. 30%** Source BlackRock - 12m daily return correlations to 31st October 2010. EDEAR inception 6th August 20% 2010. Returns prior to this taken from same strategy run in offshore vehicle 10%*** Source: BlackRock – Risk allocations taken from same strategy run in offshore vehicle. Note Alpha 0% Trawler ran as separate sub strategy from May 2008 – Feb 2009 Jun-08 Jun-09 Jun-10 Aug-07 O ct-07 Dec-07 F eb-08 Apr-08 Aug-08 O ct-08 Dec-08 F eb-09 Apr-09 Aug-09 O ct-09 Dec-09 F eb-10 Apr-10 Aug-10 O ct-10 Large Cap Small Cap Mid Horizon Alpha Trawler For use with institutional and professional investors only — proprietary and confidential 30 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

Product details Product details Base currency EUR Hurdle 3 Month EUR LIBOR Liquidity Daily Cut off 12 pm CET Pricing 4 pm CET Administrator/Custodian State Street (Luxembourg) Main CFD trading counterparties Goldman Sachs, Morgan Stanley Initial fee Up to 5% Annual management fee 1.50% Performance fee 20% Hurdle Yes High water mark Yes Portfolio characteristics Forecast return (net) 12.5% Forecast volatility 10% Gross exposure vs NAV 200% - 600% Net exposure vs NAV 0% Forecast Beta 0 Number of long positions 750 - 1000 Number of short positions 750 - 1000 Largest individual stock position vs NAV </> +/- 5% Largest industry position vs NAV </> +/- 10% Largest country position vs NAV </> +/-10% For use with institutional and professional investors only — proprietary and confidential 31 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

EDEAR portfolio characteristics31st October 2010 EDEAR largest industry exposuresNAV (€m) 29.2Long Value(€m) 81.8 10%Short Value (€m) -81.7Long gearing 2.8 5%Short gearing -2.8Number of long positions 767Number of short positions 698 0%Forecast BARRA volatility(%) 5.6Fund’s forecast Beta -0.02 -5 %Max Long Position (% of NAV) 2.92%Max Short Position (% of NAV) -2.96% -1 0 % Food Produc ts A s s et Commerc ial A luminium & UK Real Es tate Management & Serv ic es & Div er s if ied Metals Inv . Banking Supplies EDEAR largest country exposures 10 % 5% 0% -5% - 10 % UK S w e de n S w itz e r la nd Fr a nc e Sp ain For use with institutional and professional investors only — proprietary and confidential 32 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

EDEAR strategy: historic performance EDEAR fund returns €** Strategy Returns $* Gross % Net % Gross % Net % 2010 YTD 9.3 7.1 15.2 11.6 2010 Q4 5.0 3.9 4.6 3.6 2010 Q3 4.1 3.1 1.2 0.7 2010 Q2 -0.2 -0.2 2010 Q1 9.0 7.1 2009 25.7 21.0 2008 13.9 12.2 2007 -1.6 -4.6 2006 14.8 13.2 2005 6.4 3.6 2004 31.1 24.2 2003 0.9 -1.3 2002 27.9 21.0 cumulative return since inception* 234.9 151.1 return since inception p.a.* 15.0 11.2 realised vol p.a. since inception* 10.2 9.5As at 31 October 2010. *Returns are based on the same strategy employed in an offshore vehicle and cap weighted returns of individual market neutral strategies run by BlackRock in other pooledvehicles from March 2002 – July 2007. Performance is based on a similar share class, however the BSF EDEAR Fund will be subject to different dealing terms, fees and charges that may affectperformance and exposures.** EDEAR Fund launched 6 August 2010. For use with institutional and professional investors only — proprietary and confidential 33 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

EDEAR strategy: underlying strategy performance EDEAR - underlying strategy returns %** Sub Strategy Returns %* Large Cap Small Cap Mid Horizon Large Cap Small Cap Mid Horizon Inception Date 06-Aug-10 06-Aug-10 06-Aug-10 01-Mar-02 01-Jun-04 01-Nov-05 2010 YTD 6.6 5.6 5.5 13.3 8.2 10.7 2010 Q4 1.7 4.9 3.6 1.7 5.6 2.7 2010 Q3 4.8 0.7 1.9 -0.1 -2.6 5.3 2010 Q2 - - - 8.0 -2.7 -4.5 2010 Q1 - - - 3.2 8.1 7.2 2009 - - - 2.1 10.1 37.7 2008 - - - 10.3 12.7 16.8 2007 - - - -7.9 24.4 -3.6 2006 - - - 12.2 10.7 18.0 2005 - - - 4.5 19.0 4.9 2004 - - - 26.7 -9.7 - 2003 - - - 1.0 - - 2002 - - - 22.2 - - cumulative return since inception - - - 115.7 99.1 112.9 return since inception p.a. - - - 9.3 11.3 16.3 realised vol p.a. since inception - - - 9.5 8.8 10.8As at 31 October 2010. *Returns are based on the same strategy employed in an offshore vehicle and cap weighted returns of individual market neutral strategies run by BlackRock in other pooledvehicles from March 2002 – July 2007. Performance is based on a similar share class, however the BSF EDEAR Fund will be subject to different dealing terms, fees and charges that may affectperformance and exposures.** EDEAR Fund launched 6 August 2010. For use with institutional and professional investors only — proprietary and confidential 34 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

EDEAR strategy: monthly returns (net) % Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2010 2.05 1.43 3.50 -1.83 1.69 -0.05 -1.80 1.51 1.05 3.60 11.55 2009 3.77 1.77 2.48 0.70 2.68 2.15 0.72 1.33 0.18 2.40 1.13 -0.02 20.99 2008 -0.22 5.94 2.09 2.30 2.02 3.98 0.46 -4.37 -9.78 1.09 10.96 -1.44 12.22 2007 1.75 -0.22 -0.03 3.12 4.28 0.10 1.75 -2.95 -3.00 -0.18 -7.72 -0.99 -4.56 2006 0.02 -0.01 2.93 0.18 1.03 2.95 0.79 0.05 1.07 2.75 -0.85 1.60 13.15 2005 -0.17 5.49 1.35 -3.67 -2.41 0.05 -1.64 -2.07 1.10 1.44 4.95 -0.49 3.56 2004 1.10 2.96 6.82 1.02 0.33 0.00 2.73 3.05 4.60 -1.46 -1.04 2.05 24.18 2003 -0.99 2.64 1.58 -4.75 0.77 -0.83 -0.27 -2.11 3.50 -2.46 -0.33 2.22 -1.33 2002 - - 2.92 3.23 -1.49 4.03 1.60 1.04 3.27 -1.99 3.30 3.51 20.96*As at 31 October 2010. Returns are based on the same strategy employed in an offshore vehicle and cap weighted returns of individual market neutral strategies run by BlackRock in other pooledvehicles from March 2002 – July 2007. Performance is based on a similar share class, however the BSF EDEAR Fund will be subject to different dealing terms, fees and charges that may affectperformance and exposures. For use with institutional and professional investors only — proprietary and confidential 35 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

DisclaimerThe fund invests a large portion of assets which are denominated in other currencies; hence changes in the relevant exchange rate will affect the value of the investment. The Fund may beexposed to finance sector companies, as a service provider or as counterparty for financial contracts. Liquidity in the financial markets has been severely restricted, causing a number of firms towithdrawn from the market, or in some extreme cases, becoming insolvent. This may have an adverse affect on the activities of the fund. The strategies utilised by the Fund involve the use ofderivatives to facilitate certain investment management techniques including the establishment of both long and synthetic short positions and creation of market leverage for the purposes ofincreasing the economic exposure of a Fund beyond the value of its net assets. The use of derivatives in this manner may have the effect of increasing the overall risk profile of the Funds. Investorsin this fund should understand that the Fund is not guaranteed to produce a positive return and as an absolute return product, performance may not move in line with general stock market trends asboth positive and negative share movements affect the overall value of the fund. The Manager employs a risk management process to oversee and manage derivative exposure within the Fund.Past performance is not a guide to future performance and should not be the sole factor of consideration when selecti-ng a product. All financial investments involve an element of risk. Therefore,the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed. Unless indicated the fund information displayed only provides summaryinformation. Investment should be made on the basis of the relevant booklet together with the Prospectus, the Simplified Prospectus and relevant application forms which are available on requestfrom the Manager. Please note that BlackRock will not make these documents available to investors in certain jurisdictions where the funds are not authorised for sale, except where local marketinglaws otherwise permit. BlackRock Strategic Funds (BSF) is an open-ended investment company established in Luxembourg which is available for sale in certain jurisdictions only. BSF is notavailable for sale in the US or to US persons. Product information concerning BSF should not be published in the US It is recognised under Section 264 of the Financial Services and Markets Act2000. BlackRock Investment Management (UK) Limited is the UK distributor of BSF. Most of the protections provided by the UK regulatory system, and the compensation under the FinancialServices Compensation Scheme, will not be available. A limited range of BSF sub-funds have a distributor status A sterling share class that seeks to comply with UK Distributor Statusrequirements. Subscriptions in BSF are valid only if made on the basis of the current Prospectus, the most recent financial reports and the Simplified Prospectus which are available on our website.Prospectuses, Simplified Prospectuses and application forms may not be available to investors in certain jurisdictions where the Fund in question has not been authorised.Issued by BlackRock Investment Management (UK) Limited (authorised and regulated by the Financial Services Authority). Registered office: 33 King William Street, London, EC4R 9AS.Registered in England No. 2020394. Tel: 020 7743 3000. For your protection, telephone calls are usually recorded. BlackRock is a trading name of BlackRock Investment Management (UK)Limited. Issued in Switzerland by the representative office, BlackRock Investment Management (UK) Limited (London), Zurich Branch, Claridenstrasse 25, Postfach 2118 CH-8022 Zürich fromwhere the Company’s Prospectus, Simplified Prospectus, Articles of Association, Annual Report and Interim Report are available free of charge. Paying Agent in Switzerland is JPMorgan ChaseBank, National Association, Columbus, Zurich Branch Switzerland, Dreikönigstrasse 21, CH-8002 Zurich. For further information, the prospectus, simplified prospectuses, annual report and semi-annual report can be obtained free of charge in hardcopy form from the Austrian paying agent: Raiffeisen Zentralbank Österreich AG, A-1030 Vienna, Am Stadtpark 9. BSF has been registered onthe official list of the Financial Supervision Commission (Komisja Nadzoru Finansowego) for distribution in Poland. Issued in Poland by the representative office BlackRock Investment Management(UK) Limited Oddział w Polsce, Rondo ONZ 1, 00-124 Warszawa. Paying agent in Poland is Bank Handlowy w Warszawie SA, ul. Senatorska 16, 00-950 Warsaw, Poland. In Singapore, thismaterial is issued by BlackRock Investment Management (Singapore) Limited (registration number: 198905382Z). This material may only be distributed to institutional investors (as defined insection 4A of the Securities and Futures Act, Chapter 289 of Singapore (the “SFA”) and accredited investors (as defined in section 4A of the SFA) and not to the retail public in Singapore. Thismaterial is for information purposes only and does not constitute an offer of shares in any of the BlackRock Strategic Funds. You should consider carefully whether the investment is suitable foryou. Any opinions contained herein, which reflect our judgment at this date, are subject to change. For use with institutional and professional investors only — proprietary and confidential 36 Scientific Active Equity © 2010 BlackRock, Inc. All rights reserved

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