Market Advantage

BlackRock Market Advantage DDQ

January 2010

BlackRock Market Advantage DDQ

1

Product Information

List all product assets under management Product/Vehicle Strategy Assets($mm) Assets($mm) [1] [2] Current: $720 $ 62 Year-end 2008: $314 -Year-end 2007: $265 -*Year-end redemptions are not included in these figures. [1] Fund inception: 3/31/09 [2] Current assets as of 12/31/09 Note: For the vehicle assets, we have only included the amount in the Market Advantage created for US investors. This does not include an additional inflow of $25M on 12/31 that had not yet settled. BlackRock manages a range of accounts using this strategy in the UK and the Netherlands, for a total of $720m, to which should be included $800m of committed and non-funded assets. Assets gained and lost and the number of accounts gained and lost each year for the last five years. 2007 2008 2009 Total 9 8 4 21 $71,073,965 $79,083,786 $47,913,093 $198,070,844 0 1 3 4 -$ (14,198,212) $(7,336,882) $(21,535,094)

Accounts Gained Assets Gained Accounts Lost Assets Lost

Discuss the firm’s current asset-raising activities and goals for growth of assets for this product We expect the strategy to grow to several billion dollars at a 5-year horizon. By the end of the first quarter of 2010, assets in the strategy should reach approximately $2 billion based on expected indications of interest, including a new DC vehicle in the UK for approximately $800m that funded just before the end of 2009. Because the strategy invests in liquid indexes, we expect to be able to accept large volumes of inflows, although we will remain vigilant in proactively monitoring trading liquidity and transaction costs. Strategies Used (Long/Short Equity, Event-Driven, Market Neutral Equity, Global Macro, etc.) as % of Total Strategy Strategy Risk premia asset allocation % of Total 100%

Vehicle Structure (Commingled Fund, Mutual Fund, Ltd. Partnership, LLC, etc.) Other: Market Advantage Ltd. Is a Cayman Islands exempted...