Simplified Prospectus

BlackRock Non-UCITS Retail Funds Simplified Prospectus BlackRock Fund Managers Limited BlackRock Managed Volatility Fund BlackRock Managed Volatility Fund I BlackRock Managed Volatility Fund II BlackRock Managed Volatility Fund III BlackRock Managed Volatility Fund IV BlackRock Volatility Strategy Fund I BlackRock Volatility Strategy Fund II BlackRock Volatility Strategy Fund III BlackRock Volatility Strategy Fund IV BlackRock UK Managed Volatility Fund I BlackRock UK Managed Volatility Fund II BlackRock UK Managed Volatility Fund III Helping you decide This is an important document which you should read carefully and keep safe for future reference. It provides summary information on the BlackRock Non-UCITS Retail Funds to help you decide whether to invest. Please also refer to the Full Prospectus for further details. 12 JUNE 215

Contact information Telephone: 8 44 55 22 Our lines are open from 8.3 a.m. to 6. p.m. Monday to Friday. In writing: BlackRock, P.O. Box 936, Chelmsford CM99 2XD. Visit: blackrock.co.uk Email: uk.investor@blackrock.com Alternatively, speak to your Financial Adviser. [2] SIMPLIFIED PROSPECTUS

Contents About the Funds 4 Risk factors 11 Key facts: your questions answered 13 Performance data 19 Other important information 22 Legal and regulatory information 23 Throughout this document the icon will direct you to where you can find further information on a particular topic relating to your investment in the BlackRock Non-UCITS Retail Funds. The literature referred to can either be downloaded from blackrock.co.uk or you can telephone us on 8 44 55 22. Our lines are open from 8.3 a.m. to 6. p.m., Monday to Friday. SIMPLIFIED PROSPECTUS [3]

About the Funds You should read the contents of this Simplified Prospectus document carefully before the conclusion of any transaction. More detailed information is contained in the Full Prospectus, the latest Interim and Annual Report and Accounts and Short Report which are available free of charge. Capitalised terms which are not defined in this Simplified Prospectus will bear the same meaning as in the Full Prospectus. See Contact information for details of how to contact us. What are the Funds and what is their aim? BlackRock Non-UCITS Retail Funds (the Trust ) is an umbrella scheme comprising separate sub-funds with segregated liability as detailed below (each a Fund, together, the Funds ). Each Fund shall have a segregated portfolio of assets and, accordingly, the assets of a Fund belong exclusively to that Fund and shall not be used or made available to discharge (directly or indirectly) the liabilities of, or claims against, any other person or body, including the Trust and any other Fund and shall not be available for any other purpose. BlackRock Non-UCITS Retail Funds is authorised by the Financial Conduct Authority (the FCA ) in the United Kingdom as a unit trust scheme under section 243 of the Financial Services & Markets Act 2. It is managed by BlackRock Fund Managers Limited (the Manager ) and is classified as a non-ucits ( Undertaking for Collective Investment in Transferable Securities ) retail scheme under the FCA s Collective Investment Scheme Sourcebook ( COLL ) and is currently registered for sale in the United Kingdom only. The Funds seek to provide you with the opportunity to make investments that aim to grow over the long term which you can add to at any time and withdraw your money when you need it. Investing in this way can deliver better returns than by simply keeping your money in a bank or building society account. However, you need to be prepared that with this opportunity there is a risk that you may not get back the money you originally invested. The table below shows the investment objective and policy for each of the Funds. You should be aware that there are general risks that apply when making investments and specific risks which apply to the Funds. Please refer to the table below and the risk factors on pages 1 and 11. Fund name Investment objective and policy Date established Accounting date (AD) Payment date (PD) Distribution type Specific risk factors (pages 1-11) BlackRock Managed Volatility Fund The aim of this Fund is to manage the volatility of its portfolio at or around 5% and to seek a total return. The volatility management strategy will have a direct impact on the Fund s returns which may be limited by this strategy. The measure of volatility is the annualised, equal-weighted volatility of the daily portfolio returns over the previous 6 Business Days. The Fund aims to gain investment exposure primarily to equity securities and fixed income securities globally, money-market instruments, deposits, cash and near cash. In order to achieve its objective, the Fund invests primarily in units of collective investment schemes and derivatives which provide exposure to the above asset classes. At any time, a substantial amount, or even all of the Fund s assets may be held as cash to assist in achieving the Fund s objective. The Fund may also invest directly in transferable securities (equity securities and fixed income securities), money-market instruments and deposits. Derivatives and forward transactions will be used for the purposes of efficient portfolio management. In seeking to achieve the volatility objective, the allocations of investment exposure between fixed income securities, money-market instruments, deposits, cash, near cash and equity securities will vary relative to each other over time. The allocations of investment exposure between asset classes is subject to a fixed allocation to fixed income securities which will be determined by the Investment Manager at its sole discretion. The fixed allocation to fixed income securities may at times suppress the Fund s volatility therefore limiting the Fund s ability to achieve its objective of managing volatility at or around 5%. Derivatives may also be used to reduce exposure to certain asset classes to assist in maintaining the volatility objective of the Fund. There can be no guarantee that the Fund will achieve its objective of managing volatility at or around 5%. 6.11.212 AD: the last day of February each year PD: 31.1, 3.4 Accumulation 1,2,3,4,5,6,7,8,9,1,11 [4] SIMPLIFIED PROSPECTUS

Fund name Investment objective and policy Date established Accounting date (AD) Payment date (PD) Distribution type Specific risk factors (pages 1-11) BlackRock Managed Volatility Fund I The aim of this Fund is to manage the volatility of its portfolio at or around 6% and to seek a total return. The volatility management strategy will have a direct impact on the Fund s returns which may be limited by this strategy. The measure of volatility is the annualised, equal-weighted volatility of the daily portfolio returns over the previous 6 Business Days. The Fund aims to gain investment exposure primarily to equity securities and fixed income securities globally, money-market instruments, deposits, cash and near cash. In order to achieve its objective, the Fund invests primarily in units of collective investment schemes and derivatives which provide exposure to the above asset classes. At any time, a substantial amount, or even all of the Fund s assets may be held as cash to assist in achieving the Fund s objective. The Fund may also invest directly in transferable securities (equity securities and fixed income securities), money-market instruments and deposits. Derivatives and forward transactions will be used for the purposes of efficient portfolio management. In seeking to achieve the volatility objective, the allocations of investment exposure between fixed income securities, money-market instruments, deposits, cash, near cash and equity securities will vary relative to each other over time. The allocations of investment exposure between asset classes is subject to a fixed allocation to fixed income securities which will be determined by the Investment Manager at its sole discretion. The fixed allocation to fixed income securities may at times suppress the Fund s volatility therefore limiting the Fund s ability to achieve its objective of managing volatility at or around 6%. Derivatives may also be used to reduce exposure to certain asset classes to assist in maintaining the volatility objective of the Fund. There can be no guarantee that the Fund will achieve its objective of managing volatility at or around 6%. 1.2.212 AD: the last day of February each year PD: 31.1, 3.4 Accumulation 1,2,3,4,5,6,7,8,9,1,11 BlackRock Managed Volatility Fund II The aim of this Fund is to manage the volatility of its portfolio at or around 8% and to seek a total return. The volatility management strategy will have a direct impact on the Fund s returns which may be limited by this strategy. The measure of volatility is the annualised, equal-weighted volatility of the daily portfolio returns over the previous 6 Business Days. The Fund aims to gain investment exposure primarily to equity securities and fixed income securities globally, money-market instruments, deposits, cash and near cash. In order to achieve its objective, the Fund invests primarily in units of collective investment schemes and derivatives which provide exposure to the above asset classes. At any time, a substantial amount, or even all of the Fund s assets may be held as cash to assist in achieving the Fund s objective. The Fund may also invest directly in transferable securities (equity securities and fixed income securities), money-market instruments and deposits. Derivatives and forward transactions will be used for the purposes of efficient portfolio management. In seeking to achieve the volatility objective, the allocations of investment exposure between fixed income securities, money-market instruments, deposits, cash, near cash and equity securities will vary relative to each other over time. The allocations of investment exposure between asset classes is subject to a fixed allocation to fixed income securities which will be determined by the Investment Manager at its sole discretion. The fixed allocation to fixed income securities may at times suppress the Fund s volatility therefore limiting the Fund s ability to achieve its objective of managing volatility at or around 8%. Derivatives may also be used to reduce exposure to certain asset classes to assist in maintaining the volatility objective of the Fund. There can be no guarantee that the Fund will achieve its objective of managing volatility at or around 8%. 1.2.212 AD: the last day of February each year PD: 31.1, 3.4 Accumulation 1,2,3,4,5,6,7,8,9,1,11 SIMPLIFIED PROSPECTUS [5]

About the Funds continued Fund name Investment objective and policy Date established Accounting date (AD) Payment date (PD) Distribution type Specific risk factors (pages 1-11) BlackRock Managed Volatility Fund III The aim of this Fund is to manage the volatility of its portfolio at or around 1% and to seek a total return. The volatility management strategy will have a direct impact on the Fund s returns which may be limited by this strategy. The measure of volatility is the annualised, equal-weighted volatility of the daily portfolio returns over the previous 6 Business Days. The Fund aims to gain investment exposure primarily to equity securities and fixed income securities globally, money-market instruments, deposits, cash and near cash. In order to achieve its objective, the Fund invests primarily in units of collective investment schemes and derivatives which provide exposure to the above asset classes. At any time, a substantial amount, or even all of the Fund s assets may be held as cash to assist in achieving the Fund s objective. The Fund may also invest directly in transferable securities (equity securities and fixed income securities), money-market instruments and deposits. Derivatives and forward transactions will be used for the purposes of efficient portfolio management. In seeking to achieve the volatility objective, the allocations of investment exposure between fixed income securities, money-market instruments, deposits, cash, near cash and equity securities will vary relative to each other over time. The allocations of investment exposure between asset classes is subject to a fixed allocation to fixed income securities which will be determined by the Investment Manager at its sole discretion. The fixed allocation to fixed income securities may at times suppress the Fund s volatility therefore limiting the Fund s ability to achieve its objective of managing volatility at or around 1%. Derivatives may also be used to reduce exposure to certain asset classes to assist in maintaining the volatility objective of the Fund. There can be no guarantee that the Fund will achieve its objective of managing volatility at or around 1%. 1.2.212 AD: the last day of February each year PD: 31.1, 3.4 Accumulation 1,2,3,4,5,6,7,8,9,1,11 BlackRock Managed Volatility Fund IV The aim of the Fund is to manage the volatility of its portfolio at or around 15% and to seek a total return. The volatility management strategy will have a direct impact on the Fund s returns which may be limited by this strategy. The measure of volatility is the annualised, equal-weighted volatility of the daily portfolio returns over the previous 6 Business Days. The Fund aims to gain investment exposure to equity securities globally, money-market instruments, deposits, cash and near cash. In order to achieve its objective, the Fund may invest in equity futures, foreign exchange forward contracts and money-market instruments. The Fund may also invest in units of other collective investment schemes and deposits. At any time, a substantial amount, or even all of the Fund s assets may be held as cash to assist in achieving the Fund s objective. Derivatives and foreign exchange forward transactions will be used for the purposes of both investment and efficient portfolio management. The Fund will also seek to manage, on an intra-day basis, extreme daily equity market movements. If triggered by extreme equity market movements, this intra-day process will override the daily volatility management process. In seeking to achieve the volatility objective, the allocations of investment exposure between equity futures, foreign exchange forward contracts, money-market instruments, units in other collective investment schemes, deposits, cash and near cash will vary relative to each other over time. There can be no guarantee that the Fund will achieve its objective of managing volatility at or around 15%. 6.3.215 AD: the last day of February each year PD: 31.1, 3.4 Accumulation 1,2,3,4,5,6,7 [6] SIMPLIFIED PROSPECTUS

Fund name Investment objective and policy Date established Accounting date (AD) Payment date (PD) Distribution type Specific risk factors (pages 1-11) BlackRock Volatility Strategy Fund I The aim of the Fund is to manage the volatility of its portfolio at or around 9% and to seek a total return. The volatility management strategy will have a direct impact on the Fund s returns which may be limited by this strategy. The measure of volatility is the annualised, equal-weighted volatility of the monthly portfolio returns over a rolling three year period, with the aim of maintaining the volatility of the Fund within a 7% lower tolerance and 1% upper tolerance band. The Fund aims to gain investment exposure primarily to equity securities and fixed income securities globally, money-market instruments, deposits, cash and near cash. In order to achieve its objective, the Fund invests primarily in units of collective investment schemes and derivatives which provide exposure to the above asset classes. At any time, a substantial amount, or even all of the Fund s assets may be held as cash to assist in achieving the Fund s objective. The Fund may also invest directly in transferable securities (equity securities and fixed income securities), money-market instruments, deposits, cash and near cash. Derivatives and forward transactions may be used for the purposes of efficient portfolio management. There is no guarantee that the Fund will achieve its objective of managing volatility at or around 9%, or that it will be managed at all times within the intended 7% lower tolerance and 1% upper tolerance band. 6.3.213 AD: the last day of February each year PD: 31.1, 3.4 Accumulation 1,2,3,4,5,6,7,8,9,1,11 BlackRock Volatility Strategy Fund II The aim of the Fund is to manage the volatility of its portfolio at or around 11% and to seek a total return. The volatility management strategy will have a direct impact on the Fund s returns which may be limited by this strategy. The measure of volatility is the annualised, equal-weighted volatility of the monthly portfolio returns over a rolling three year period, with the aim of maintaining the volatility of the Fund within a 9% lower tolerance and 12% upper tolerance band. The Fund aims to gain investment exposure primarily to equity securities and fixed income securities globally, money-market instruments, deposits, cash and near cash. In order to achieve its objective, the Fund invests primarily in units of collective investment schemes and derivatives which provide exposure to the above asset classes. At any time, a substantial amount, or even all of the Fund s assets may be held as cash to assist in achieving the Fund s objective. The Fund may also invest directly in transferable securities (equity securities and fixed income securities), money-market instruments, deposits, cash and near cash. Derivatives and forward transactions may be used for the purposes of efficient portfolio management. There is no guarantee that the Fund will achieve its objective of managing volatility at or around 11%, or that it will be managed at all times within the intended 9% lower tolerance and 12% upper tolerance band. 6.3.213 AD: the last day of February each year PD: 31.1, 3.4 Accumulation 1,2,3,4,5,6,7,8,9,1,11 SIMPLIFIED PROSPECTUS [7]

Fund name Investment objective and policy Date established Accounting date (AD) Payment date (PD) Distribution type Specific risk factors (pages 1-11) BlackRock Volatility Strategy Fund III The aim of the Fund is to manage the volatility of its portfolio at or around 13% and to seek a total return. The volatility management strategy will have a direct impact on the Fund s returns which may be limited by this strategy. The measure of volatility is the annualised, equal-weighted volatility of the monthly portfolio returns over a rolling three year period, with the aim of maintaining the volatility of the Fund within an 11% lower tolerance and 14% upper tolerance band. The Fund aims to gain investment exposure primarily to equity securities and fixed income securities globally, money-market instruments, deposits, cash and near cash. In order to achieve its objective, the Fund invests primarily in units of collective investment schemes and derivatives which provide exposure to the above asset classes. At any time, a substantial amount, or even all of the Fund s assets may be held as cash to assist in achieving the Fund s objective. The Fund may also invest directly in transferable securities (equity securities and fixed income securities), money-market instruments, deposits, cash and near cash. Derivatives and forward transactions may be used for the purposes of efficient portfolio management. There is no guarantee that the Fund will achieve its objective of managing volatility at or around 13%, or that it will be managed at all times within the intended 11% lower tolerance and 14% upper tolerance band. 6.3.213 AD: the last day of February each year PD: 31.1, 3.4 Accumulation 1,2,3,4,5,6,7,8,9,1,11 BlackRock Volatility Strategy Fund IV The aim of the Fund is to manage the volatility of its portfolio at or around 15% and to seek a total return. The volatility management strategy will have a direct impact on the Fund s returns which may be limited by this strategy. The measure of volatility is the annualised, equal-weighted volatility of the monthly portfolio returns over a rolling three year period, with the aim of maintaining the volatility of the Fund within a 13% lower tolerance and 16% upper tolerance band. The Fund aims to gain investment exposure primarily to equity securities and fixed income securities globally, money-market instruments, deposits, cash and near cash. In order to achieve its objective, the Fund invests primarily in units of collective investment schemes and derivatives which provide exposure to the above asset classes. At any time, a substantial amount, or even all of the Fund s assets may be held as cash to assist in achieving the Fund s objective. The Fund may also invest directly in transferable securities (equity securities and fixed income securities), money-market instruments, deposits, cash and near cash. Derivatives and forward transactions may be used for the purposes of efficient portfolio management. There is no guarantee that the Fund will achieve its objective of managing volatility at or around 15%, or that it will be managed at all times within the intended 13% lower tolerance and 16% upper tolerance band. 1.2.14 AD: the last day of February each year PD: 31.1, 3.4 Accumulation 1,2,3,4,5,6,7,8,9,1,11 [8] SIMPLIFIED PROSPECTUS

Fund name Investment objective and policy Date established Accounting date (AD) Payment date (PD) Distribution type Specific risk factors (pages 1-11) BlackRock UK Managed Volatility Fund I The aim of the Fund is to manage the volatility of its portfolio at or around 5% and to seek a total return. The volatility management strategy will have a direct impact on the Fund s returns which may be limited by this strategy. The Fund s aim is to maintain the volatility of the Fund within a 4% lower and 6% upper tolerance band where the measure of volatility is the annualised, equal-weighted volatility of the daily portfolio returns over the previous 12 Business Days. The Fund aims to gain investment exposure primarily to UK companies quoted on the UK equity markets and to UK fixed income securities (including UK gilts and corporate bonds). In order to achieve its objective, the Fund invests primarily in units of collective investment schemes and derivatives which provide exposure to the above asset classes. At any time, a substantial amount, or even all of the Fund s assets may be held as cash to assist in achieving the Fund s objective. The Fund may also invest directly in transferable securities (equity securities and fixed income securities), money-market instruments and deposits, cash and near cash. Derivatives and forward transactions will be used for the purposes of efficient portfolio management. There is no guarantee that the Fund will achieve its objective of managing volatility at or around 5%, or that it will be managed at all times within the intended 4% lower and 6% upper tolerance band. 14.1.213 AD: the last day of February each year PD: 31.1, 3.4 Accumulation 1,2,3,4,5,6,7,8,9,1,11 BlackRock UK Managed Volatility Fund II The aim of the Fund is to manage the volatility of its portfolio at or around 7% and to seek a total return. The volatility management strategy will have a direct impact on the Fund s returns which may be limited by this strategy. The Fund s aim is to maintain the volatility of the Fund within a 6% lower and 8% upper tolerance band where the measure of volatility is the annualised, equal-weighted volatility of the daily portfolio returns over the previous 12 Business Days. The Fund aims to gain investment exposure primarily to UK companies quoted on the UK equity markets and to UK fixed income securities (including UK gilts and corporate bonds). In order to achieve its objective, the Fund invests primarily in units of collective investment schemes and derivatives which provide exposure to the above asset classes. At any time, a substantial amount, or even all of the Fund s assets may be held as cash to assist in achieving the Fund s objective. The Fund may also invest directly in transferable securities (equity securities and fixed income securities), money-market instruments and deposits, cash and near cash. Derivatives and forward transactions will be used for the purposes of efficient portfolio management. There is no guarantee that the Fund will achieve its objective of managing volatility at or around 7%, or that it will be managed at all times within the intended 6% lower and 8% upper tolerance band. 14.1.213 AD: the last day of February each year PD: 31.1, 3.4 Accumulation 1,2,3,4,5,6,7,8,9,1,11 SIMPLIFIED PROSPECTUS [9]

Fund name Investment objective and policy Date established Accounting date (AD) Payment date (PD) Distribution type Specific risk factors (pages 1-11) BlackRock UK Managed Volatility Fund III The aim of the Fund is to manage the volatility of its portfolio at or around 9% and to seek a total return. The volatility management strategy will have a direct impact on the Fund s returns which may be limited by this strategy. The Fund s aim is to maintain the volatility of the Fund within an 8% lower and 1% upper tolerance band where the measure of volatility is the annualised, equal-weighted volatility of the daily portfolio returns over the previous 12 Business Days. The Fund aims to gain investment exposure primarily to UK companies quoted on the UK equity markets and to UK fixed income securities (including UK gilts and corporate bonds). In order to achieve its objective, the Fund invests primarily in units of collective investment schemes and derivatives which provide exposure to the above asset classes. At any time, a substantial amount, or even all of the Fund s assets may be held as cash to assist in achieving the Fund s objective. The Fund may also invest directly in transferable securities (equity securities and fixed income securities), money-market instruments and deposits, cash and near cash. Derivatives and forward transactions will be used for the purposes of efficient portfolio management. There is no guarantee that the Fund will achieve its objective of managing volatility at or around 9%, or that it will be managed at all times within the intended 8% lower and 1% upper tolerance band. 14.1.213 AD: the last day of February each year PD: 31.1, 3.4 Accumulation Accumulation 1,2,3,4,5,6,7,8,9,1,11 See Key facts: your questions answered on page 12. You may also refer to the individual fund factsheets which you can download from our website. Go to blackrock.co.uk. Who can invest? Investment in the Funds may not be suitable for all investors. Any investment should be considered against your specific investment needs and appetite for risk. BlackRock has not considered the suitability or appropriateness of this investment for your personal circumstances. If you are in any doubt about the suitability of the Funds to your needs you should seek appropriate professional advice. [1] SIMPLIFIED PROSPECTUS

Risk factors Please note that details of all the risks mentioned in this Simplified Prospectus may be found in the Full Prospectus of the Funds. Some of the risk factors below relate to the underlying collective investment schemes ( underlying fund ) in which the Fund(s) invest as part of their investment objective. For that reason these risk factors apply to the Funds themselves. General risk factors Your initial investment 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. Fund liability risk The Trust is structured as an umbrella fund with segregated liability between its Funds. The assets of one Fund will not be available to meet the liabilities of another. However, the Trust (through the Manager) may operate or have assets held on its behalf or be subject to claims in the UK, or in other jurisdictions, whose courts may not necessarily recognise such segregation of liability. Therefore, it is not possible to be certain that the assets of a Fund will always be completely isolated from the liabilities of another Fund of the Trust in every circumstance. Financial markets, counterparties and service providers A Fund will be exposed to the credit risk of the parties with which it transacts and may also bear the risk of settlement default. Credit risk is the risk that the counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the relevant Fund. This would include the counterparties to any derivative that it enters into. Trading in derivatives which have not been collateralised gives rise to direct counterparty exposure. The relevant Fund mitigates much of its credit risk to its derivative counterparties by receiving collateral with a value at least equal to the exposure to each counterparty but, to the extent that any derivative is not fully collateralised, a default by the counterparty may result in a reduction in the value of the Fund. A formal review of each new counterparty is completed and all approved counterparties are monitored and reviewed on an ongoing basis. The Fund maintains an active oversight of counterparty exposure and the collateral management process. The Manager is free to use one or more separate counterparties for derivative investments. Some or all of these counterparties may be associates of the BlackRock Group or the PNC Group. Investment in UCITS and/or other collective investment schemes Each Fund may invest up to 1 per cent of its scheme property in the units of UCITS and/or other collective investment schemes that are managed by the Manager or by an associate (as defined by the FCA) in which case no subscription or redemption fees or annual management charge (unless a full retrocession of the annual management charge is paid to the Fund) will be charged to the Fund. Where the UCITS and/or other collective investment scheme is managed by a third party manager, the Fund may be required to pay any applicable fees. Risks to capital growth Most of the Funds deduct their charges from the income produced from their investments, however some may deduct some or all of their charges from capital. Whilst this might allow more income to be distributed, it may also have the effect of reducing the potential for long-term capital growth. Use of derivatives As part of their investment strategy, the Fund(s) may utilise investment techniques involving the use of complex financial instruments known as derivatives for the purposes of efficient portfolio management in order to reduce risk and/or costs and/or generate additional income or capital for each of the Funds. The Manager may also use derivatives to hedge and manage risk. Derivatives allow an investment manager to invest artificially in financial securities, such as shares or bonds, or other investments, without owning the physical assets. The use of derivatives can involve a greater element of risk. A positive or negative movement in the value of stock markets can have a larger effect on the value of derivatives as these are more sensitive to changes. The Manager employs a risk management process to oversee and manage derivative exposure within the Funds. Global financial market crisis and governmental intervention Since 27, global financial markets have undergone pervasive and fundamental disruption and suffered significant instability leading to extensive governmental intervention. Regulators in many jurisdictions have implemented or proposed a number of emergency regulatory measures and may continue to do so. Government and regulatory interventions have sometimes been unclear in scope and application, resulting in confusion and uncertainty which in itself has been detrimental to the efficient functioning of financial markets. It is impossible to predict with certainty what additional interim or permanent governmental restrictions may be imposed on the markets and/or the effect of such restrictions on the Investment Manager s ability to implement the Funds investment objectives. Whether current undertakings by governing bodies of various jurisdictions or any future undertakings will help stabilise the financial markets is unknown. The Investment Manager cannot predict how long the financial markets will continue to be affected by these events and cannot predict the effects of these or similar events in the future on the Funds, the European or global economy and the global securities markets. Exchange rate risk The Funds may invest directly or indirectly in currencies other than sterling. As a result, changes in the rates of exchange between currencies may cause the value of units in the relevant Funds to go up or down. Accordingly, unitholders may not receive back the amount invested. SIMPLIFIED PROSPECTUS [11]

The following additional factor may also be relevant in relation to an investment in the Funds: the tax regime applicable to the income or capital gains received by you depends on the tax law of the place where the capital is invested and the tax law applicable to your personal situation. The regulatory or tax regime applicable to the Funds may be subject to change in the future which may affect the risk profile and other characteristics of your investment. Specific risk factors The risk factors below should be considered in respect of the Funds: 1. Volatility Volatility means the variation in the daily returns realised by the Fund over a specified period of time. If a Fund reports high volatility, this indicates that the returns have been quite variable. If a Fund reports low volatility, this indicates that the returns have been relatively stable. 2. Volatility measurement The measure of volatility is the annualised, equal-weighted volatility of the daily portfolio returns over the previous 6 Business Days for BlackRock Managed Volatility Fund, BlackRock Managed Volatility Fund I, BlackRock Managed Volatility Fund II, BlackRock Managed Volatility Fund III and BlackRock Managed Volatility Fund IV; for BlackRock Volatility Strategy Fund I, BlackRock Volatility Strategy Fund II and BlackRock Volatility Strategy Fund III, the monthly portfolio returns over a rolling three-year period; and for BlackRock UK Managed Volatility Fund I, BlackRock UK Managed Volatility Fund II and BlackRock UK Managed Volatility Fund III, the daily portfolio returns over a rolling 12 Business Day period. The method that the Investment Manager uses to measure volatility within the Funds may differ to methods used by other managers. For this reason, direct comparison to other volatility managed funds may be difficult. 3. Volatility management One of the objectives of the Funds is to manage volatility within tolerances set by the Investment Manager. However, there is no guarantee that the Funds will perform as expected and remain within their volatility tolerances. The volatility management process may reduce the effect of falls in market prices but may equally moderate the effect of rises in market prices. When markets are volatile, managing volatility within tolerances will require the Fund s asset allocation to be changed more frequently than normal. The cost of the transactions required to effect these changes will be met by the Fund and may affect returns. In addition to the objective of managing volatility, BlackRock Managed Volatility Fund IV will seek to manage, on an intra-day basis, extreme daily equity market movements. If triggered by extreme equity market movements, this intra-day process will override the daily volatility management process. While the intra-day process may mitigate the effect of extreme falls in equity market prices, it would also have the effect of leaving this Fund significantly less exposed to potential rebounds in equity markets in the immediate aftermath of any intra-day de-risking event. For the Funds that hold a constant allocation to fixed income, this constant allocation may limit the Manager s and the Investment Manager s ability to manage volatility within tolerances, particularly when markets are relatively stable and this may affect returns. There are other risks that you should bear in mind which relate to the underlying fund(s) in which certain of the Funds invest as follows: 4. Specific market and/or sectors The underlying funds may invest in a limited number of market sectors. Compared to investments which spread investment risk through investing in a variety of sectors, share price movements may have a greater effect on the overall value of the underlying funds which, in turn, could impact the value of the Funds. 5. Exchange rate risk The underlying funds may invest 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. 6. Investment in emerging markets The underlying fund(s) may invest in economies and markets which may be less developed. Compared to more established economies, the value of investments may be subject to greater volatility due to increased uncertainty as to how these markets operate. 7. Liquidity risk The underlying fund(s) investments may be subject to liquidity constraints, which means that shares may trade less frequently and in small volumes, for instance smaller companies. As a result, changes in the value of investments may be more unpredictable. In certain cases, it may not be possible to sell the security at the last market price quoted or at a value considered to be fairest. 8. Interest rate risk The underlying fund(s) may invest in fixed interest securities such as corporate or government bonds which pay a fixed or variable rate of interest (also known as the coupon ) and behave similarly to a loan. These securities are therefore exposed to changes in interest rates which will affect the value of any securities held. 9. Credit risk The underlying fund(s) may invest in fixed interest securities issued by companies which, compared to bonds issued or guaranteed by governments, are exposed to greater risk of default in the repayment of the capital provided to the company or interest payments due to the underlying fund(s). 1. High yield bonds The underlying fund(s) may invest in high yielding bonds. Companies who issue higher yield bonds typically have an increased risk of defaulting on repayments. In the event of default, the value of your investment may reduce. Economic conditions and interest rate levels may also impact significantly the values of high yield bonds. 11. Distressed securities The underlying fund(s) may invest in securities whereby the issuing company has a high risk of defaulting on their interest payments, capital repayment or both. In the event of default, the value of the investment may reduce. [12] SIMPLIFIED PROSPECTUS

Key facts: your questions answered This section should answer the questions you may have about investing in the Funds. Remember, the icon will direct you to where you can find further information on a particular subject. You can also contact us directly for further information on 8 44 55 22. Visit blackrock.co.uk for other information concerning the Funds. What are my investment options? In respect of all of the Funds you can select Class C Accumulation Units, subject to availability. In respect of the BlackRock Volatility Strategy Fund I, BlackRock Volatility Strategy Fund II and BlackRock Volatility Strategy Fund III only, you can also select Class E Accumulation Units, subject to availability. The minimum investment limits are set out below. We may introduce additional classes of units in respect of the Funds detailed in this document at any time at our discretion. These will be detailed on our website. Class C Accumulation Units and Class E Accumulation Units are only available to investors investing higher lump sum amounts. What are the investment minima for investments in the Funds? The current investment minima are as follows: Units Minimum Lump sum investment Minimum holding Minimum further investment Minimum withdrawal amount Class C Accumulation Units in the BlackRock Managed Volatility Fund, BlackRock Managed Volatility Fund I, BlackRock Managed Volatility Fund II BlackRock Managed Volatility Fund III, and BlackRock Managed Volatility Fund IV Class C Accumulation Units in the BlackRock Volatility Strategy Fund I, BlackRock Volatility Strategy Fund II BlackRock Volatility Strategy Fund III, and BlackRock Volatility Strategy Fund IV Class E Accumulation Units in the BlackRock Volatility Strategy Fund I, BlackRock Volatility Strategy Fund II BlackRock Volatility Strategy Fund III and BlackRock Volatility Strategy Fund IV Class C Accumulation Units in the BlackRock UK Managed Volatility Fund I, BlackRock UK Managed Volatility Fund II, and BlackRock UK Managed Volatility Fund III 5,, 5,, 1 25 5,, 5,, 1 25 2,, 2,, 1 25 5,, 5,, 1 25 The Manager may waive the minimum levels detailed above at its discretion. Income Income is either paid as a dividend or as an interest distribution if sufficient qualifying investments are held according to the criteria set out by HM Revenue & Customs. As at the date of this Simplified Prospectus, only Class C Accumulation Units are available in respect of the BlackRock Managed Volatility Fund, BlackRock Managed Volatility Fund I, BlackRock Managed Volatility Fund II, BlackRock Managed Volatility Fund III, BlackRock Managed Volatility Fund IV, BlackRock UK Managed Volatility Fund I, BlackRock UK Managed Volatility Fund II and BlackRock UK Managed Volatility Fund III. In respect of BlackRock Volatility Strategy Fund I, BlackRock Volatility Strategy Fund II, BlackRock Volatility Strategy Fund III and BlackRock Volatility Strategy Fund IV Class C Accumulation Units and Class E Accumulation Units are available. This means any income which is attributable to the units is accumulated within the Fund and reflected in the increased price of the units although the number of units you hold will remain the same. If Income units become available in the future, any income due will be paid to you on the corresponding payment dates shown in the table on pages 4 to 1. This will be paid either by cheque or directly into your bank account if you have provided bank details. The amount of the last annual dividend paid will be stated as a percentage (%) of the bid ( selling ) price of the Fund. This is known as the Dividend Yield and will be published on our website. Visit blackrock.co.uk. SIMPLIFIED PROSPECTUS [13]

How do I invest? When placing an order for the purchase of units, the Manager will request that an Application Form be completed and returned to the Manager. All the instructions on how to invest are set out in the relevant Application Form. Alternatively, you can invest a lump sum by telephoning our Investor Services Team or by fax, either directly or through your Financial Adviser, between 8.3 a.m. and 5.3 p.m. on any Business Day. It is currently not possible to purchase units over the telephone using a debit card or to set up direct debit mandates by telephone, however, this may be made available to investors in the future. To confirm whether this is available at the time of purchase please contact the Investor Services Team on Freephone 8 44 55 22. When units are purchased over the telephone, calls may be recorded by the Manager. Application forms: These are available to download at blackrock.co.uk or upon request and contain instructions for investing. Lump Sum Investments: Remember to enclose your cheque payable to BlackRock Fund Managers Limited. If you do not pay at the time you provide your instruction, you must provide payment within three Business Days of the date of the transaction. Refer to the Full Prospectus. Also visit blackrock.co.uk or call 8 44 55 22 for more information. Please note that if you fail to provide your payment within the period set out above, we reserve the right to cancel your investment and you may be liable for any loss suffered by us as a consequence. What happens next? Lump sum investments In respect of any of the Funds, if we receive your application before 11. a.m. on a Business Day, we will invest the money on the same day. In respect of BlackRock Managed Volatility Fund IV, if we receive your application before 12. p.m. on a Business Day, we will invest the money on the same day. If we receive your application after 11. a.m. or on a non-business Day, we will invest the money on the next Business Day. A non-business Day may include a day where the relevant local stock exchange is closed and the Funds invest substantially in the relevant market. The price at which you purchase units is normally calculated at 12 noon on each Business Day and is based on the buying price ( offer ) of the underlying investments and all other assets and liabilities held by the Fund, including cash and all expenses. We will send you a contract note/confirmation on the next Business Day after we have invested your money. How do I make further investments? Lump sum investments You can invest additional lump sum amounts by writing to us or by telephone or fax, as described above. Can I change my mind? If you have received advice on your investment from an authorised Financial Adviser you will normally be able to cancel your investment. You will need to write to us within 14 days of receiving the contract note. Your instruction to cancel the investment must be submitted to the Registered Office of the Manager (see page 2). On receipt of your instruction to cancel, we will then return your money to you, although you should be aware that if the value of your investment has fallen since the date you invested, you will not get back the full amount. If you have not yet paid for your investment you will still be liable for any shortfall and the amount due to you from the cancellation will be held until the purchase payment has cleared. This may be for a period of up to 21 days from your original purchase. No interest is paid on these amounts. How will I be kept informed about my investment? A copy of the Short Report for the relevant Fund will be sent to you every six months. This will provide you with summary information on the activities of the relevant Fund over the period that the report covers. The full interim and annual Report and Accounts provide more detailed information, including the full financial statements. These are available to view or download from our website or in hard-copy on request from our Investor Services Team. In addition, every six months you will receive a valuation and statement of your account. Statements are produced as at 5 April and 5 October and will be sent to you within 25 days of these dates. Call 8 44 55 22 or visit blackrock.co.uk. Where can I find information concerning the value of my investment? Dealing prices will normally be available from 3. p.m. on each Business Day and can be obtained by calling our Investor Services Team. Prices are also available on our website. The performance of the Funds is included at the end of this document. However, performance information is not currently available for certain of the Funds as they do not have a full year performance record. [14] SIMPLIFIED PROSPECTUS

Key facts: your questions answered continued For more recent Fund performance information following launch, visit our website or call our Investor Services Team. You must always keep the minimum holding (as set out in the table on page 12) in each Fund. Call 8 44 55 22 or visit blackrock.co.uk. What happens if I move abroad? If you move abroad you can continue to hold your investment although your tax status may be affected by the laws of the country you move to. Contact us for further information or speak to a tax adviser. What happens if I die? Your investments will either be transferred to the personal representatives of your estate or as directed by them once grant of probate or confirmation (if in Scotland) has been obtained. We can produce probate valuations on request. If you hold units jointly with one or more other investors, your holding will automatically become the property of the surviving unitholders. What happens if I want to take my money out? You can withdraw amounts of 25 or more in respect of Class C Units and Class E Units by providing an instruction in writing, or by telephone or fax between the hours of 8.3 a.m. and 5.3 p.m. on any Business Day. Telephone or fax instructions must be confirmed subsequently in writing using the Renunciation Form supplied with the contract note, or by letter. In exceptional circumstances and at our sole discretion, we may accept confirmation by fax or in electronic form. In respect of any of the Funds, we will need to receive the instruction by 11. a.m. in order to sell your investment on that Business Day. In respect of BlackRock Managed Volatility Fund IV, we will need to receive the instruction by 12. p.m. in order to sell your investment on that Business Day. Otherwise we will sell your investment on the following Business Day. A contract note will normally be sent to you on the next Business Day, after we have redeemed your investment. The price at which you sell units is normally calculated at 12 noon on each Business Day and is based on the selling price ( bid ) of the underlying investments and all other assets and liabilities held by a Fund, including cash and all expenses. We will send you a cheque for the proceeds within three Business Days of receiving your written instruction or confirmation in writing. You should also note that in order to protect continuing unitholders it may be necessary to defer orders to sell units in the Funds. This will only apply where requests to sell units exceed 1% of the value of the relevant Fund and enables the Manager to deal with the requests by matching sales and purchases and/or raising money in the stock markets at prices which are not disadvantageous to investors. All sale orders will be treated in the same way and prioritised by date received. Excessive trading policy Excessive trading is where the unit dealing transactions of individuals, or groups of individuals, seem to follow a timing pattern or are characterised by excessively frequent or large trades. The Funds do not knowingly allow investments that are associated with excessive trading practices, as such practices may adversely affect the interests of all unitholders. The Manager has general powers giving it the discretion to act to reduce the impact of excessive trading on the Funds, as set out in further detail in the Full Prospectus. In addition to these general powers, where, in the reasonable opinion of the Manager, excessive trading is suspected, a redemption charge of 2% may be levied on the redemption proceeds of the relevant unitholder. This charge will be made for the benefit of the Fund, and affected unitholders will be notified in their contract notes if such a fee has been charged. Can I switch my investments to another fund or convert my investment into another unit class? Yes, subject to the minimum investment limits on page 12, you can switch your investment into another BlackRock fund or another unit class in a different Fund or convert your units into another unit class in the same Fund (if available) by telephoning or writing to us. A switch involves selling units in one Fund and using the proceeds to buy units in another. A switch will only be effected on a Business Day when both Funds have valuation points. Visit blackrock.co.uk for information on the other BlackRock funds available. You should note that a switch of units between Funds is considered a disposal for UK capital gains tax purposes. However, conversions between different unit classes in the same Fund should not give rise to a disposal for UK Capital Gains Tax purposes. Please note that charges will apply. See Charges section in this document. SIMPLIFIED PROSPECTUS [15]