On 26^th May,  Friends Provident announced further details regarding the next phase of the process of demerging its stake in the investment house, F&C.  As well as mainstream investments, the F&C investment business, manages the flagship Stewardship range of ethical funds and also the new F&C Ethical Bond fund.  It is important to note that after the demerger F&C will continue to manage the Friends Provident range of funds, including Stewardship life and pension funds.

We bring this to your attention as many of our clients may be shareholders due to having held Friends Provident plans in the past. Shareholders will receive one F&C share for every 10 Friends Provident shares they own.

Shareholders who own fewer than 2,500 Friends Provident shares will have their new F&C shares sold under the cash-out procedure and will be sent a cheque instead of F&C shares unless they return the Form of Election to keep the F&C shares.

Shareholders are being asked to vote for the demerger at a general meeting, which will be held on June 12. They can vote in person at the general meeting or in advance by post or online.

Details of the F&C demerger are set out in the circular that is available on the Friends Provident website where key questions and answers can also be found. http://www.friendsprovident.com/reports

N.B. Please note that ethicalfutures llp are not authorised to advise clients on the merits of sale or retention of these shares.