Distribution Number 20. Legal & General Ethical Trust Interim Manager s Report for the period ended 12 June 2015 (Unaudited)

Transcription

1 Distribution Number 20 Legal & General Ethical Trust Interim Manager s Report for the period ended 12 June 2015 (Unaudited)

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3 Contents Page Number Manager s Investment Report 2 Authorised Status 5 Directors Statement 5 Portfolio Statement 6 Statement of Total Return 13 Statement of Change in Net Assets attributable to Unitholders 13 Balance Sheet 14 Notes to the Financial Statements 15 Trust Facts 16 Risk and Reward Profile 17 Performance Record 18 General Information 21 1

4 Manager s Investment Report Investment Objective and Policy The investment objective of this Trust is to secure capital growth from a portfolio of securities for companies whose business conforms to a range of ethical and environmental guidelines. Securities representing all such companies in the FTSE 350 Index will be held with weightings generally proportionate to their market capitalisation. From time to time non-index constituents and non ethical stocks may be held as a result of a corporate action and these holdings will be sold or transferred as soon as reasonably practical. Companies will be considered eligible unless they are involved in the following activities: Animal testing Military nature of involvement Gambling Nuclear power Health & safety convictions Ozone depleting chemicals Countries with poor human Pornography rights records Tobacco Intensive farming Tropical hardwood retailing Investment Trusts Water pollution Independent monitoring of companies is carried out by Ethical Investment Research Services ( EIRIS ) based on the criteria above. Manager s Investment Report During the period under review, the bid price of the Trust R-Class distribution units increased by 14.43%. Although there is no published Index for those companies assessed as eligible by EIRIS, for comparison over the same period, the FTSE 350 Index (excluding Investment Trusts) increased by 9.14% on a capital only basis; similarly, the broader based FTSE All-Share Index (excluding Investment Trusts) increased by 9.27% (Source: Bloomberg). Past performance is not a guide to future performance. The value of investments and any income from them may go down as well as up. Market/Economic Review Divergent economic trends exerted a strong influence on the performance of equity markets over the last year. The UK economy saw a marked turnaround, with fourth quarter 2014 growth revised up, led by a revival in the dominant Services sector. Both the US and UK central banks signalled a shift towards a gradual tightening of monetary policy provided the recovery maintained its path. However, pressure to raise interest rates in the US eased in recent months as the oil price fell dramatically, declining to a six-year low in January In contrast, the UK equity market struggled to make headway as the Mining and Oil & Gas sectors, which comprise a substantial proportion of the FTSE 350 Index, were weighed down by the weakness of commodity markets. The uncertainty over the future government was mirrored by volatility in UK equities as prices fell sharply at the end of March 2015, although briefly recovered as the Conservatives won the general election. 2

5 Manager s Investment Report continued Markets fell sharply in June 2015 following fears of an imminent Grexit (Greece exiting the Eurozone), albeit ending higher than the beginning of the review period. Trust Review The Trust s selection process excludes the Tobacco and Military industries, while the Oil & Gas, Banks and Health Care sectors are markedly underweight. Such exclusions are compensated for by an increased presence in Telecommunications, Life Insurance and Retailers. There are three principal reasons for changes to the distribution of investments in the Trust: first, changes in the list of companies which meet the ethical criteria; secondly, changes in the FTSE 350 Index at its quarterly reviews; and finally, changes due to corporate activity and takeovers. FTSE rebalances the Index of the top 350 companies every quarter and companies added to the Index are only added to the Trust once confirmation of their acceptability for inclusion is received from EIRIS. There were two Index reviews during the review period. At the quarterly review in December 2014, there were six additions, of which five were promotions from the FTSE SmallCap Index: Greggs, Spirit Pub, Game Digital (deemed unacceptable), Allied Minds and CLS Holdings, and one addition from a recent initial public offering (IPO): Jimmy Choo. There were also six deletions: Spirent Communications, Fenner, EnQuest, Hochschild Mining, Ferrexpo and Foxtons Group (which subsequently returned to the Index in May), which were all demoted to the FTSE SmallCap Index. At the quarterly review in March 2015, there were three additions in total, one due to a promotion from the FTSE SmallCap Index: Imagination Technologies Group, and two were recent IPOs: AA and Virgin Money Holdings. There were also three deletions: Oxford Instruments, Game Digital (already unacceptable) and Afren, which were all demoted to the FTSE SmallCap Index. There was some considerable merger and acquisition (M&A) activity impacting the composition of the Index. Outside the reviews, Indivior was added to the Index following its spin-off from consumer goods company Reckitt Benckiser Group (constituent of the FTSE 100 Index), Catlin Group was deleted from the Index following its acquisition by XL Group (US, non-constituent), BRIT was deleted from the Index following its acquisition by Fairfax Financial Holdings and Domino Printing Sciences was deleted from the Index following its acquisition by Brother Industries (Japan, non-constituent). During the period further activity in the ethical screening resulted in Old Mutual becoming unacceptable, whilst Redefine International became acceptable. The three largest stocks in the Trust at the end of the review period were Vodafone Group, Lloyds Banking Group and Prudential. 3

6 Manager s Investment Report continued Outlook UK economic momentum looks set to continue through 2015 and, with inflation at 0.1%, the Bank of England seems likely to wait until next year before raising interest rates. For now there is sufficient slack to allow the Bank of England to keep rates on hold through next year, but if productivity stagnates and unemployment falls more rapidly, pressure to begin normalising interest rates will eventually increase. Stronger economic growth has begun to have a positive impact on the public finances, but this needs to develop into a multi-year expansion to reduce the debt to sustainable levels. A steady improvement in global growth is expected throughout 2015, underpinned by the drop in the oil price. Despite the recent rebound in the oil price, prices are still significantly lower than at the same point in 2014, which is particularly welcomed by countries that tend to import their energy. However, this fall in price may have a negative impact on the UK economy in the short-term, as oil-producing firms reduce their capital expenditures in response. In addition, exporting firms face greater challenges given the reduction in the investment outlook, the post-election Sterling appreciation and the weaker growth in oil-producing countries. In the long-term, however, the positive impact on consumption will surpass the short-term hurdles given the increase to disposable income and consumer spending. The Trust is well positioned to capture the UK market performance. Legal & General Investment Management Limited (Investment Adviser) 3 July

7 Authorised Status Authorised Status This Trust is an Authorised Unit Trust Scheme as defined in section 243 of the Financial Services and Markets Act 2000 and is a UCITS Retail Scheme within the meaning of the FCA Collective Investment Schemes sourcebook. Directors Statement We hereby certify that this Manager s Report has been prepared in accordance with the requirements of the FCA Collective Investment Schemes sourcebook. A. J. C. Craven S. D. Thomas (Director) (Director) Legal & General (Unit Trust Managers) Limited 31 July

8 Portfolio Statement Portfolio Statement as at 12 June 2015 All investments are in ordinary shares unless otherwise stated. The percentages in brackets show the equivalent sector holdings at 12 December Holding/ Market % of Nominal Value Net Value Investment Assets Oil & Gas Producers 4.74% (4.32%) 1,096,126 BG Group 12,024, ,836 Cairn Energy 353, ,934 Nostrum Oil & Gas 104, ,194 Ophir Energy 287, ,885 Premier Oil 262, ,152 Soco International 121, ,717 Tullow Oil 1,110, ,265, Oil Equipment, Services & Distribution 0.08% (0.08%) 43,128 Hunting 253, Chemicals 1.05% (1.17%) 71,642 Alent 263, ,042 Johnson Matthey 2,072, ,295 Synthomer 287, ,325 Victrex 503, ,127, Forestry & Paper 0.55% (0.46%) 118,343 Mondi 1,672, Industrial Metals & Mining 0.08% (0.10%) 151,670 Evraz 233, Mining 1.41% (1.54%) 46,230 African Barrick Gold 136, ,029 Antofagasta 839, ,671 Centamin Egypt 240, ,771 Fresnillo 422, ,814 Kaz Minerals 197, ,324 Lonmin 239, ,894 Petra Diamonds 245, ,216 Polymental International 378, ,663 Randgold Resources 1,367, ,907 Vedanta Resources 187, ,254, Construction & Materials 1.73% (1.41%) 266,363 CRH 4,935, ,749 Keller Group 262, ,198, General Industrials 0.96% (0.87%) 225,484 Rexam 1,279, ,393 RPC Group 533, ,574 Smith (DS) 1,094, ,907,

9 Portfolio Statement continued Holding/ Market % of Nominal Value Net Value Investment Assets Electronic & Electrical Equipment 0.76% (0.91%) 120,359 Halma 918, ,471 Hellermanntyton Group 237, ,591 Renishaw 300, ,565 Spectris 851, ,308, Industrial Engineering 1.50% (1.85%) 59,573 Bodycote 446, ,299 IMI 1,062, ,972 Melrose Industries 869, ,747 Spirax-Sarco Engineering 861, ,582 Weir Group 1,268, ,508, Industrial Transportation 0.52% (0.36%) 7,708 Clarkson 200, ,466 James Fisher & Sons 181, ,318 Royal Mail 1,186, ,569, Support Services 7.17% (6.88%) 107,512 Bunzl 2,007, ,744 Capita Group 2,614, ,689 De La Rue 178, ,029 Diploma 307, ,921 Electrocomponents 321, ,752 Experian 3,955, ,743 Grafton Group 547, ,933 Hays 734, ,226 Homeserve 366, ,184 Howden Joinery Group 1,045, ,309 Interserve 297, ,167 Intertek Group 1,308, ,973 Michael Page International 518, ,411 Mitie Group 360, ,243 Northgate 252, ,209 PayPoint 207, ,989 Premier Farnell 234, ,975 Rentokil Initial 899, ,521 RPS Group 174, ,957 Travis Perkins 1,735, ,184 Wolseley 3,546, ,615, Beverages 0.53% (0.61%) 26,663 A.G. Barr 162, ,323 Britvic 566, ,716 Coca-Cola HBC 889, ,618, Food Producers 0.58% (0.63%) 15,482 Cranswick 246, ,100 Dairy Crest Group 229, ,111 Greencore Group 415,

10 Portfolio Statement continued 8 Holding/ Market % of Nominal Value Net Value Investment Assets Food Producers (cont.) 151,779 Tate & Lyle 835, ,726, Household Goods & Home Construction 2.43% (2.01%) 318,391 Barratt Developments 1,940, ,990 Bellway 946, ,883 Berkeley Group 1,289, ,871 Bovis Homes Group 485, ,971 Crest Nicholson Holdings 429, ,651 Redrow Group 298, ,043,725 Taylor Wimpey 1,959, ,348, Personal Goods 1.04% (1.07%) 142,642 Burberry Group 2,390, ,500 Jimmy Choo 53, ,323 PZ Cussons 342, ,947 SuperGroup 126, ,881 Ted Baker 253, ,166, Health Care Equipment & Services 1.51% (1.53%) 23,499 AL Noor Hospitals Group 226, ,208 NMC Health 134, ,232 Smith & Nephew 3,178, ,081 Spire Healthcare Group 272, ,900 Synergy Healthcare 354, ,714 United Drug 430, ,597, Pharmaceuticals & Biotechnology 4.24% (4.11%) 120,374 BTG 818, ,577 Dechra Pharmaceuticals 257, ,890 Genus 293, ,933 Hikma Pharmaceuticals 836, ,079 Indivior 507, ,328 Shire 10,081, ,794, Food & Drug Retailers 3.08% (2.73%) 33,112 Greggs 389, ,682 Morrison (Wm) Supermarkets 1,257, ,587 Ocado Group 494, ,922 Sainsbury (J) 1,191, ,125 SSP Group 410, ,603,262 Tesco 5,570, ,312, General Retailers 4.48% (3.98%) 199,121 AA 791, ,858 AO World 86, ,641 Brown (N) Group 195, ,227 Card Factory 258, ,887 Debenhams 397,

11 Portfolio Statement continued Holding/ Market % of Nominal Value Net Value Investment Assets General Retailers (cont.) 16,738 Dignity 352, ,505 Dixons Carphone 1,496, ,673 Dunelm Group 277, ,026 Halfords Group 332, ,460 Home Retail Group 430, ,784 JD Sports Fashion 125, ,004 Just Eat 567, ,413 Kingfisher 2,887, ,401 Next 3,491, ,249 Pets at Home Group 228, ,156 Poundland Group 163, ,269 Saga 350, ,336 Sports Direct International 519, ,926 WH Smith 545, ,499, Media 4.81% (4.73%) 337,147 BSkyB 3,499, ,737 Entertainment One 228, ,157 Euromoney Institutional Investor 142, ,190 Informa 1,152, ,206,892 ITV 3,233, ,015 Moneysupermarket.com Group 413, ,716 Reed Elsevier 3,888, ,346 Rightmove 983, ,206 United Business Media 776, ,344 Zoopla Property Group 152, ,471, Travel & Leisure 5.78% (5.87%) 58,594 Carnival 1,845, ,024 Cineworld Group 290, ,806 Dominos Pizza UK & Ireland 340, ,011 easyjet 1,264, ,290 Enterprise Inns 208, ,693 FirstGroup 510, ,768 Go-Ahead Group 396, ,281 Greene King 562, ,825 Intercontinental Hotels Group 2,049, ,734 International Consolidated Airlines Group 3,056, ,119 Marston s 291, ,448 Merlin Entertainments 1,017, ,625 Millennium & Copthorne Hotels 275, ,679 Mitchells & Butlers 340, ,019 National Express 452, ,347 Restaurant Group 436, ,111 Spirit Pub 251, ,578 Thomas Cook Group 666, ,595 Wetherspoon (JD) 228, ,822 Whitbread 2,946, ,432, Fixed Line Telecommunications 4.56% (4.50%) 2,693,717 BT Group 12,172, ,790 Cable & Wireless Communications 592, ,940 COLT Telecom 173,

12 Portfolio Statement continued Holding/ Market % of Nominal Value Net Value Investment Assets Fixed Line Telecommunications (cont.) 171,311 TalkTalk Telecom Group 662, ,130 Telecom Plus 151, ,752, Mobile Telecommunications 7.13% (7.49%) 145,076 Inmarsat 1,418, ,557,994 Vodafone Group 20,102, ,521, Electricity 1.87% (2.21%) 134,783 Drax Group 506, ,112 Infinis Energy 49, ,788 Scottish & Southern Energy 5,075, ,630, Gas & Water Multiutilities 3.43% (4.11%) 1,212,544 National Grid 10,364, Banks 6.19% (6.23%) 12,153 Bank of Georgia Holdings 227, ,716,470 Lloyds Banking Group 15,477, ,537 Royal Bank of Scotland 2,513, ,783 TSB Banking Group 277, ,331 Virgin Money Holdings 188, ,684, Nonlife Insurance 1.89% (2.11%) 63,747 Admiral Group 935, ,314 Amlin 803, ,332 Beazley 527, ,063 Direct Line Insurance Group 1,676, ,031 Esure Group 198, ,829 Hiscox 757, ,365 Jardine Lloyd Thompson Group 398, ,971 Lancashire Holdings 391, ,689, Life Insurance 9.96% (11.64%) 1,279,460 Aviva 6,570, ,553 Just Retirement Group 128, ,907,691 Legal & General Group 5,042, ,236 Phoenix Group 598, ,261 Prudential 13,246, ,189 St. James's Place Capital 1,473, ,386 Standard Life 3,005, ,064, Real Estate Investment & Services 1.14% (0.99%) 234,261 Capital & Counties Properties 970, ,241 CLS Holdings 43, ,470 Countrywide 293, ,293 Daejan Holdings 73, ,000 Foxtons Group 206, ,762 Grainger Trust 285,

13 Portfolio Statement continued Holding/ Market % of Nominal Value Net Value Investment Assets Real Estate Investment & Services (cont.) 38,057 Kennedy Wilson Europe Real Estate 445, ,465 Savills 407, ,842 St. Modwen Properties 274, ,743 Unite Group 449, ,449, Real Estate Investment Trusts 4.85% (4.58%) 48,039 Big Yellow Group 316, ,232 British Land 2,761, ,989 Capital Shopping Centres 971, ,313 Derwent London 1,140, ,940 Great Portland Estates 889, ,817 Hammerson 1,654, ,816 Hansteen Holdings 259, ,311 Land Securities 3,275, ,479 London & Stamford Property 318, ,031 Redefine International 167, ,830 Rotork 674, ,381 SEGRO 1,034, ,779 Shaftesbury 797, ,360 Workspace Group 369, ,628, Financial Services 5.84% (5.36%) 311,107 3i Group 1,704, ,618 Aberdeen Asset Management 1,338, ,701 Allied Minds 194, ,216 Ashmore Group 410, ,375 Brewin Dolphin 259, ,140 Close Brothers Group 756, ,596 Hargreaves Lansdown 878, ,168 Henderson Group 937, ,782 ICAP 957, ,565 Intermediate Capital Group 712, ,362 International Personal Finance 364, ,177 Investec 947, ,062 IP Group 348, ,933 Jupiter Fund Management 636, ,508 London Stock Exchange 2,407, ,286 Man Group 839, ,420 Paragon Group 434, ,223 Provident Financial 1,371, ,082 Rathbone Brothers 332, ,614 Schroders 1,191, ,174 SVG Capital 296, ,019 Tullett Prebon 285, ,607, Software & Computer Services 1.37% (1.23%) 20,103 Aveva Group 388, ,427 Computacenter 148, ,374 Fidessa Group 278, ,074 Micro Focus International 702, ,179 Sage Group 1,914,

14 Portfolio Statement continued Holding/ Market % of Nominal Value Net Value Investment Assets Software & Computer Services (cont.) 66,904 Telecity 711, ,143, Technology Hardware & Equipment 2.15% (2.06%) 454,658 ARM Holdings 5,123, ,395 CSR 475, ,067 Imagination Technologies Group 165, ,923 Laird Group 335, ,085 Pace 386, ,488, Portfolio of investments 299,908, Net other assets 1,765, Total net assets 301,673, % Total purchases for the period: 17,901,075. Total sales for the period: 9,703,

15 Financial Statements Statement of Total Return for the period ended 12 June /06/15 12/06/14 Income Net capital gains 36,334,610 11,946,765 Revenue 4,682,188 4,036,372 Expenses (1,380,209) (1,253,130) Finance costs: Interest (22) (420) Net revenue before taxation 3,301,957 2,782,822 Taxation Net revenue after taxation for the period 3,301,957 2,782,822 Total return before distributions 39,636,567 14,729,587 Finance costs: Distributions (3,306,730) (2,784,979) Change in net assets attributable to Unitholders from investment activities 36,329,837 11,944,790 Statement of Change in Net Assets attributable to Unitholders for the period ended 12 June /06/15 12/06/14 Opening net assets attributable to Unitholders 256,091, ,386,902 Amounts received on creation of units 16,323,515 30,882,152 Amounts paid on cancellation of units (8,307,478) (7,056,944) 8,016,037 23,825,208 Change in net assets attributable to Unitholders from investment activities 36,329,837 11,944,790 Retained distribution on accumulation units 1,236,228 1,080,124 Unclaimed distributions 243 Closing net assets attributable to Unitholders 301,673, ,237,024 The difference between the opening net assets and the comparative closing net assets is the movement in the second half of the year. 13

16 Financial Statements continued Balance Sheet as at 12 June /06/15 12/12/14 ASSETS Investment assets 299,908, ,396,033 Debtors 2,208,897 1,229,710 Cash and bank balances 2,037,789 1,274,610 Total other assets 4,246,686 2,504,320 Total assets 304,154, ,900,353 LIABILITIES Investment liabilities Creditors (375,370) (506,636) Bank overdrafts (37) Distribution payable on distribution units (2,105,752) (1,302,265) Total other liabilities (2,481,159) (1,808,901) Total liabilities (2,481,159) (1,808,901) Net assets attributable to Unitholders 301,673, ,091,452 14

17 Notes to the Financial Statements 1. Accounting Policies The accounting policies applied are consistent with the most recent annual Financial Statements. (a) Basis of accounting The financial statements have been prepared on a going concern basis under the historical cost convention, as modified by the revaluation of investments and in accordance with UK Generally Accepted Accounting Practice and the Statement of Recommended Practice for Authorised Funds issued by The Investment Association in October

18 Trust Facts Distribution Information R-Class The distribution payable on 12 August 2015 is p net per unit for distribution units and p net per unit for accumulation units. I-Class The distribution payable on 12 August 2015 is p net per unit for distribution units and p net per unit for accumulation units. F-Class The distribution payable on 12 August 2015 is p net per unit for distribution units and p net per unit for accumulation units. Ongoing Charges Figures 12 Jun Dec 14 R-Class 1.15% 1.15% I-Class 0.31% 0.31% F-Class 0.45% 0.45% The Ongoing Charges Figure (OCF) is the ratio of the Trust s total discloseable costs (excluding overdraft interest) to the average net assets of the Trust. The OCF is intended to provide a reliable figure which gives the most accurate measure of what it costs to invest in a Trust and is calculated based on the last period s figures. 16

19 Risk and Reward Profile Lower risk Higher risk Potentially lower rewards Potentially higher rewards This risk and reward profile is based on historical data which may not be a reliable indication of the Trust s risk and reward category in the future. The category is based on the rate at which the value of the Trust has moved up and down in the past. This Trust is in category six because it invests in company shares which generally provide higher rewards and higher risks than other investments such as bonds, cash or commercial property. The Trust s category is not guaranteed to remain the same and may change over time. Even a trust in the lowest category is not a risk free investment. 17

20 Performance Record Net Asset Values Net Asset Net Asset Number Of Value Of Value Per Units Accounting Date Trust Unit In Issue 12 Dec 12 R-Class Distribution Units 99,471, p 216,560,188 Accumulation Units 67,338, p 109,956,547 I-Class Distribution Units 15,722, p 34,252,789 Accumulation Units 1,640, p 2,541, Dec 13 R-Class Distribution Units 119,408, p 215,707,956 Accumulation Units 79,140, p 105,013,161 I-Class Distribution Units 19,333, p 34,947,868 Accumulation Units 9,477, p 11,829,513 F-Class* Distribution Units 12, p 22,420 Accumulation Units 14, p 18, Dec 14 R-Class Distribution Units 124,382, p 221,015,300 Accumulation Units 76,725, p 98,393,240 I-Class Distribution Units 36,739, p 65,331,262 Accumulation Units 18,192, p 21,763,373 F-Class* Distribution Units 1, p 1,869 Accumulation Units 50, p 63, Jun 15 R-Class Distribution Units 143,006, p 222,681,745 Accumulation Units 84,501, p 94,013,212 I-Class Distribution Units 46,290, p 72,126,378 Accumulation Units 27,664, p 28,591,047 F-Class* Distribution Units 28, p 44,213 Accumulation Units 182, p 198,710 * There are no prior year comparatives for the F-Class which launched on 19 December Past performance is not a guide to future performance. The price of units and any income from them may go down as well as up. 18

21 Performance Record continued Unit Price Range and Net Revenue R-Class Units Highest Lowest Net Year Offer Bid Revenue Distribution Units p 35.79p p p 37.03p p p 39.61p p p 46.80p p p 51.70p p 2015 (1) 67.07p 57.02p p Accumulation Units p 44.70p p p 47.59p p p 51.48p p p 62.38p p p 71.13p p 2015 (1) 92.94p 79.00p p I-Class Units Highest Lowest Net Year Offer Bid Revenue Distribution Units p 35.78p p p 37.11p p p 39.74p p p 46.79p p p 51.81p p 2015 (1) 67.29p 57.01p p Accumulation Units p 46.13p p p 49.67p p p 54.03p p p 65.80p p p 76.15p p 2015 (1) p 84.73p p (1) The above tables show the highest offer and lowest bid prices to 12 June 2015 and the net revenue per unit to 12 August Past performance is not a guide to future performance. The price of units and any income from them may go down as well as up. 19

22 Performance Record continued Unit Price Range and Net Revenue continued F-Class Units* Highest Lowest Net Year Offer Bid Revenue Distribution Units 2012 (1) 46.79p 46.00p p 47.09p p p 52.14p p 2015 (2) 67.69p 57.38p p Accumulation Units 2012 (1) 62.37p 61.32p p 62.77p p p 72.47p p 2015 (2) 95.11p 80.62p p * There are no prior year comparatives for the F-Class which launched on 19 December (1) The above table shows the highest offer and lowest bid prices from 19 December 2012 to 31 December (2) The above table shows the highest offer and lowest bid prices to 12 June 2015 and the net revenue per unit to 12 August Past performance is not a guide to future performance. The price of units and any income from them may go down as well as up. 20

23 General Information Constitution Launch date: 5 July 1999 Period end dates for distributions: 12 June, 12 December Distribution dates: 12 August, 12 February Minimum initial lump sum investment: R-Class 500 I-Class 1,000,000 F-Class* 500 Minimum monthly contributions: R-Class 50 I-Class N/A F-Class* 50 Valuation point: 12 noon Management charges: R-Class Annual 1.00% (to 31 May 2015) I-Class Annual 0.30% F-Class* Annual 0.30% Fund management fees : R-Class Annual 1.15% I-Class Annual 0.31% F-Class* Annual 0.45% Initial charge: R-Class Nil I-Class Nil F-Class* Nil * F-Class units are only available for investment through authorised intermediaries, platforms or to investors having received advice. With effect from 1 June 2015 see Significant Changes on page 22. Pricing and Dealing The prices are published on the internet at immediately after they become available. Dealing in units takes place on a forward pricing basis, from 8:30am to 6:00pm, Monday to Friday. Buying and Selling Units Units may be bought on any business day from the Manager or through a financial adviser by completing an application form or on the internet at Units may normally be sold back to the Manager on any business day at the bid price calculated at the following valuation point. ISA Status This Trust may be held within this tax advantaged savings arrangement. The favourable tax treatment of ISAs may not be maintained. For full written information, please contact your usual financial adviser or ring Call charges will vary. We may record and monitor calls. 21

24 General Information continued Prospectus and Manager s Reports The Manager will send to all persons on the Unitholder Register annual and interim short form reports. Copies of the Prospectus and the most recent annual or interim reports are available free of charge by telephoning or by writing to the Manager. Do you have difficulty in reading information in print because of a disability? If so, we can help. We are able to produce information for our clients in large print and braille. If you would like to discuss your particular requirements, please contact us on Call charges will vary. We may record and monitor calls. Significant Changes Change in Registrar With effect from 6 April 2015 the Registrar of the Fund has changed from Legal & General (Portfolio Management Services) Limited to Legal & General (Unit Trust Managers) Limited. This change has no impact upon your investment. All Legal & General contact details relating to your investment also remain unchanged. Changes to our charges From 1 June 2015, the charges, fees and expenses which were previously taken separately from our funds, was replaced with a single fixed Fund Management Fee (FMF). The FMF is a single fee payable from the fund to Legal & General to cover the costs of running the Fund. This change will make it clearer for investors to understand exactly what they will be charged for their investment over the year. The overall cost of your investment has not changed as the FMF has been set at a level that ensures the Ongoing Charges Figure (OCF) of the fund does not change. Fund of Funds note: For most Funds, the FMF and OCF will be the same. The exception is for those Funds that invest in other Funds run by external providers. 22

25 General Information continued Authorised Fund Manager Legal & General (Unit Trust Managers) Limited Registered in England and Wales No Registered office: One Coleman Street, London EC2R 5AA Telephone: Authorised and regulated by the Financial Conduct Authority Directors of the Manager R. M. Bartley (appointed 15 May 2015) A. J. C. Craven J. Islam (appointed 26 June 2015) S. R. Pistell (resigned 29 June 2015) H. Solomon (appointed 13 March 2015) S. D. Thomas S. Thompson (appointed 10 February 2015) M. J. Zinkula Secretary D. Gilbert Registrar Legal & General (Unit Trust Managers) Limited P.O. Box 6080, Wolverhampton WV1 9RB Authorised and regulated by the Financial Conduct Authority Dealing: Enquiries: Registration: Call charges will vary. We may record and monitor calls. Trustee National Westminster Bank Plc Trustee and Depositary Services 135 Bishopsgate, London EC2M 3UR Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority Independent Auditors PricewaterhouseCoopers LLP 7 More London Riverside London SE1 2RT Investment Adviser Legal & General Investment Management Limited One Coleman Street, London EC2R 5AA Authorised and regulated by the Financial Conduct Authority 23

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28 Authorised and regulated by the Financial Conduct Authority Legal & General (Unit Trust Managers) Limited Registered in England and Wales No Registered office: One Coleman Street, London EC2R 5AA 26