Friends Provident International Funds Update

These are copies of recent updates available on the FPI web site. For the very latest information please check out the link in my entry on Fund News above. Please feel free to contact me if you would like further information on how this may affect you. FPI clients affected by any of the changes should have had a notification letter.

J98 Momentum AllWeather Liquidity to Close. As you will be aware we had to suspend dealing in the mirror fund FPIL Momentum AllWeather Liquidity Fund (J98) in January this year. This was as a result of dealing restrictions imposed on us by the managers of the underlying fund which was experiencing extreme liquidity pressures in the current economic climate. We have now received further advice from the Fund Managers that they have imposed a new permanent process for redeeming shares in the underlying fund. Regretfully this means that we can no longer effectively operate the mirror fund, and we have no alternative but to close it. June 2009.

P20 and P21 Thames River Mainstay Funds to Close. As you will be aware we had to suspend dealing in the above mirror funds in November last year. This was as a result of dealing restrictions imposed on us by the managers of the underlying funds which were experiencing extreme liquidity pressures in the current economic climate. We have now received further advice from the Fund Managers that they have changed the structure of the underlying funds and imposed a new process for redeeming shares in the underlying funds. Regretfully this means that we can no longer effectively operate the mirror funds, and we have no alternative but to close them. June 2009.

P27 Glanmore Property Fund Changes. We have been informed by Tilney Investment Management, managers of the Glanmore Property Fund, that the special resolution proposed at the Extraordinary General Meeting held on 23 June 2009 was passed, enabling the creation of a new share class of the fund and changes to existing investments. Tilney will be publishing further information to shareholders shortly, detailing the changes, and we will write to policyholders in the mirror fund as soon as we have that information. Please note that we are not in a position to allow an open share offering on a mirror fund, due to the pooled nature of our investment products together with the three year liquidity restrictions imposed on the new shares. July 2009.