Distribution Number 9

Legal & General (Barclays) Market Track 350 Trust Interim Manager’s Report for the period ended 22 October 2010 (Unaudited)

Contents

Page Number

Manager’s Investment Report 2

Authorised Status 5

Directors’ Statement 5

Portfolio Statement 6

Statement of Total Return 17

Statement of Change in Net Assets attributable to Unitholders 17

Balance Sheet 18

Notes to the Financial Statements 19

Trust Facts 20

Performance Record 21

General Information 22

1 Manager’s Investment Report

Investment Objective and Policy The investment objective of this Trust is to provide capital appreciation in the long term from index tracking based on the FTSE 350 Index. Securities in the Index will be held with weightings generally proportionate to their official Index weighting. Manager’s Investment Report During the period under review, the bid price of the Trust’s distribution units increased by 1.45%. This compares to an increase of 1.73% in the FTSE 350 Index, on a price return basis (Source: Bloomberg). Past performance is not a guide to future performance. The value of investments and income from them may go down as well as up. The FTSE 350 Index is calculated by FTSE International Limited (“FTSE”). FTSE does not sponsor, endorse or promote this product. All copyright in the index values and constituent list belongs to FTSE. Legal & General has obtained full licence from FTSE to use such copyright in the creation of this product. “FTSE™”, “FT-SE®” and “Footsie®” are trade marks of the Plc and The Financial Times Limited and are used by FTSE International Limited (“FTSE”) under licence. Market/Economic Review UK equities faced many headwinds in the second quarter of 2010. Caught up in negative sentiments affecting the eurozone, the stock market also faced volatility as investors looked for evidence that the new coalition government was tackling the country’s own sovereign (Government) debt. While the fairly austere emergency budget from the new government proved to be good news for UK bond investors, its effect on equities was less pronounced. At the end of the period, economists remained divided regarding the wisdom of these aggressive spending cuts. By contrast, UK equities performed much better during the second half of the perio d, benefiting from exposure to both the US, where economic data improved, and to the eurozone, where the sovereign debt crisis seemed to have stabilised. The UK economy also outperformed many economists’ expectations. Bond market investors continued to be reassured by the government’s efforts to cut the deficit, though some economists continued to question the scale and speed of the programme. The resulting lower bond yields effectively lowered the cost of capital for British industry.

2 Manager’s Investment Report continued

Trust Review The FTSE Regional Committee met on 9 June 2010 to approve the quarterly changes to the UK series of the FTSE Actuaries Share Indices. All constituent changes were applied after the close of business on Friday, 1 8 June 2010 and became effective on Monday, 21 June 2010. There was a total of eight new additions to the FTSE 350 Index. The largest two additions and African Barrick Gold went straight into the FTSE 100 Index. Some of the other larger additions included Centamin , Fidelity China Special Situations and CPP Group. In May 2010 National Grid issued nil paid rights to existing share holders at a rate of two for every five existing shares. In June 2010 the Trust paid the call to take up the new shares at a cost of £3.35 per share. Over the quarter, BP, one of the largest stocks in the Trust’s benchmark, suffered a noticeable decrease in share price value. This was a result of market reaction to the Deepwater Horizon oil spill disaster. At the beginning of the quarter, BP was worth 7% of the Trust’s benchmark compared with 4.7% at quarter end. In the second half of the review period, the FTSE Regional Committee met on 8 September 2010 to approve the quarterly changes to the UK series of the FTSE Actuaries Share Indices. All constituent changes were applied after the close of business on Friday, 17 September 2010 and became effective on Monday, 20 September 2010. There were a total of five new additions to the FTSE 350 Index: Phoenix Group Holdings, Jupiter Fund Management, Ocado Grou p, Kenmare Resources and Avis Group went straight into the FTSE 250 Index. There was an increase in corporate takeovers during the quarter, the largest being Tomkins, which was acquired by Pinafore Acquisitions for £3.25 in cash for each share held. Chloride Group, a constituent of the FTSE 250 Index, was acquired by Emerson Electric via a cash merger. Under the terms of the merger the Trust received £3.75 in cash for each share held. Also during the quarter Arriva was acquired for cash by DB UK Holding for £7.75 for each share held. was also acquired for cash by Korea National Oil Corporation for £18.00 for every share held.

3 Manager’s Investment Report continued

Outlook The UK appears to be pulling out of recession more slowly than other major economies, but recent data points to the upturn continuing at a slightly more rapid pace. We believe the trough in the earnings cycle has passed and a sustained recovery throughout the remainder of 2010 looks likely, particularly as Financial sector write-offs diminish. The weakness of Sterling has been a tailwind and is likely to remain supportive, barring a sharp extension of the recent bounce. That said, the headwinds for the UK economy are well understood. Balance sheet repairs will likely limit consumption growth and current austerity plans seek to cut spending. One positive sign is that survey data points to an easing of credit conditions for large and medium-sized corporations. Improved capital spending will be needed for the economic recovery to remain on track.

BlackRock Advisors (UK) Limited (Investment Adviser) 26 November 2 010

4 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 FSA Collective Investment Schemes sourcebook. Directors’ Statement We hereby certify that this Manager’s Report has been prepared in accordance with the requirements of the FSA Collective Investment Schemes sourcebook .

M. B. Boardman S. D. Thomas (Director) (Director) Legal & General (Unit Trust Managers) Limited 9 December 2010

5 Portfolio Statemen t

Portfolio Statement as at 22 October 2010 All investments are in ordinary shares unless otherwise stated. The percentages in brackets show the equivalent sector holdings at 22 April 2 010.

Holding/ Market % of Nominal Value Net Value Investment £ Assets UNITED KINGDOM — 96.97% (97.92%) Oil & Gas Producers — 15.79% (18.10%) 40,137 51,656 0.07 143,842 BG Group 1,739,050 2.37 803,497 BP 3,448,609 4.71 59,249 247,779 0.34 26,016 Enquest 33,899 0.05 16,968 Essar Energy 90,439 0.12 9,380 Heritage Oil 32,248 0.04 6,032 JKX Oil & Gas 18,096 0.02 2,528 Melrose Resources 8,375 0.01 4,815 78,533 0.11 151,262 (A) 3,029,778 4.14 115,839 Royal Dutch Shell (B) 2,262,336 3.09 6,144 13,892 0.02 14,424 SOCO International 47,080 0.06 37,649 461,200 0.64

11,562,970 15.79

Oil Equipment, Services & Distribution — 0.41% (0.37%) 5,310 Hunting 32,577 0.04 11,045 162,361 0.22 4,571 Wellstream Holdings 33,734 0.05 17,495 Wood Group (John) 75,089 0.10

303,761 0.41

Chemicals — 0.47% (0.35%) 5,838 Croda International 87,278 0.12 19,448 Elementis 22,871 0.03 9,133 Johnson Matthey 177,180 0.24 3,421 Victrex 44,884 0.06 4,752 Yule Catto 12,769 0.02

344,982 0.47

Forestry & Paper — 0.11% (0.10%) 15,214 Mondi (UK) 83,373 0.11

Mining — 12.03% (11.48%) 5,340 African Barrick Gold 29,557 0.04 56,597 Anglo American 1,643,577 2.24 16,956 Antofagasta 213,306 0.29 94,056 BHP Billiton 2,060,767 2.81 16,639 Eurasian Natural Resources 151,249 0.21 7,323 Ferrexpo 24,759 0.03 9,334 Fresnillo 115,835 0.16 7,612 Hochschild Mining 35,929 0.05 9,161 Kazakhmys 122,025 0.17 8,476 Lonmin 152,314 0.21 7,811 Petropavlovsk 77,446 0.11 6 Portfolio Statement continued

Holding/ Market % of Nominal Value Net Value Investment £ Assets Mining — (cont.) 3,824 Randgold Resources 227,719 0.31 65,129 2,649,773 3.62 5,594 120,327 0.16 93,292 1,185,275 1.62

8,809,858 12.03

Construction & Materials — 0.16% (0.17%) 28,320 Balfour Beatty 77,229 0.11 2,535 Keller 15,806 0.02 1,790 Kier Group 22,250 0.03

115,285 0.16

Aerospace & Defence — 1.91% (2.00%) 144,816 BAE Systems 520,903 0.72 1,553 Chemring Group 48,283 0.07 47,983 Cobham 118,086 0.16 28,829 Meggitt 90,523 0.12 29,455 QinetiQ 31,841 0.04 79,376 Rolls-Royce 509,197 0.70 17,983 Senior 25,194 0.03 2,914 Ultra Electronics Holdings 53,326 0.07

1,397,353 1.91

General Industrials — 0.57% (0.68%) 11,491 Cookson Group 65,671 0.09 37,844 Rexam 122,312 0.17 17,609 Smith (David S) Holdings 29,319 0.04 16,632 Smiths Group 200,582 0.27

417,884 0.57

Electronic & Electrical Equipment — 0.26% (0.25%) 4,588 Domino Printing Sciences 24,064 0.03 16,015 Halma 53,170 0.07 12,339 Laird Group 18,447 0.03 10,467 Morgan Crucible 26,283 0.04 1,293 Renishaw 16,007 0.02 4,698 Spectris 51,866 0.07

189,837 0.26

Industrial Engineering — 0.67% (0.51%) 6,439 Bodycote 18,828 0.03 7,979 Fenner 21,041 0.03 14,074 IMI 114,562 0.16 20,421 Melrose 60,712 0.08 3,765 Rotork 67,996 0.09 3,276 Spirax-Sarco Engineering 60,737 0.08 9,061 146,245 0.20

490,121 0.67

Industrial Transportation — 0.11% (0.11%) 18,570 BBA Aviation 36,750 0.05

7 Portfolio Statement continued

Holding/ Market % of Nominal Value Net Value Investment £ Assets Industrial Transportation — (cont.) 1,963 Forth Ports 26,049 0.04 11,892 Stobart Group 17,124 0.02

79,923 0.11

Support Services — 2.93% (2.87%) 11,736 197,400 0.27 14,256 AMEC 148,262 0.20 22,229 Ashtead Group 28,653 0.04 4,324 Atkins (WS) 33,922 0.05 14,871 Babcock International Group 87,218 0.12 5,727 BSS Group 24,861 0.03 13,730 Bunzl 103,524 0.14 26,362 Capita Group 206,151 0.28 16,714 Carillion 58,282 0.08 5,535 Connaught† — — 7,554 Davis Service Group 31,810 0.04 4,284 De La Rue 28,189 0.04 18,297 Electrocomponents 44,334 0.06 8,459 Filtrona 20,894 0.03 60,527 G4S 162,939 0.22 57,198 Hays 64,119 0.09 13,562 Homeserve 64,664 0.09 6,670 Intertek Group 124,996 0.17 13,840 Michael Page International 66,557 0.09 14,898 Mitie Group 30,615 0.04 15,930 Premier Farnell 44,365 0.06 77,003 Rentokil Initial 78,389 0.11 10,501 RPS Group 21,989 0.03 20,674 Serco Group 127,869 0.17 13,732 Shanks Group 15,668 0.02 23,379 SIG 26,138 0.04 4,491 SThree 13,698 0.02 9,105 Travis Perkins 75,799 0.10 12,146 Wolseley 200,773 0.28 10,943 Xchanging 13,919 0.02

2,145,997 2.93

Automobiles & Parts — 0.16% (0.14%) 64,913 GKN 116,908 0.16

Beverages — 3.25% (3.20%) 1,482 Barr (AG) 18,051 0.02 10,399 Britvic 51,080 0.07 107,448 Diageo 1,271,110 1.74 50,176 SABMiller 1,037,891 1.42

2,378,132 3.25

Food Producers — 1.96% (2.05%) 17,094 Associated British Foods 180,855 0.25 67,961 Booker Group 36,495 0.05 2,257 Cranswick 20,053 0.03 5,254 Dairy Crest Group 19,545 0.03 7,091 Devro 16,919 0.02 4,261 Greggs 19,733 0.03 101,015 Premier Foods 19,092 0.03

8 Portfolio Statement continued

Holding/ Market % of Nominal Value Net Value Investment £ Assets Food Producers — (cont.) 1,780 Robert Wiseman Dairies 5,705 0.01 20,303 Tate & Lyle 103,647 0.14 54,783 Unilever 1,007,459 1.37

1,429,503 1.96

Household Goods & Home Construction — 1.81% (1.96%) 39,892 Barratt Developments 32,831 0.04 5,107 Bellway 28,446 0.04 5,782 Berkeley Group 48,222 0.06 6,192 Bovis Homes Group 21,876 0.03 6,846 McBride 11,775 0.02 12,456 Persimmon 44,543 0.06 30,940 Reckitt Benckiser Group 1,090,944 1.49 11,213 Redrow Group 12,985 0.02 139,334 Taylor Wimpey 33,161 0.05

1,324,783 1.81

Leisure Goods — 0.03% (0.04%) 11,777 Pace Micro Technology 23,436 0.03

Personal Goods — 0.44% (0.32%) 18,246 Burberry Group 182,278 0.25 9,684 PZ Cussons 36,886 0.05 8,790 SSL International 101,788 0.14

320,952 0.44

Tobacco — 4.02% (3.78%) 85,237 British American Tobacco 2,076,373 2.84 43,339 Imperial Tobacco 864,613 1.18

2,940,986 4.02

Health Care Equipment & Services — 0.31% (0.38%) 37,543 Smith & Nephew 211,930 0.29 2,373 Synergy Healthcare 17,418 0.02

229,348 0.31

Pharmaceuticals & Biotechnology — 7.25% (7.08%) 61,572 AstraZeneca 2,019,869 2.76 9,615 BTG 21,980 0.03 2,375 Genus 19,879 0.03 223,602 GlaxoSmithKline 2,846,453 3.89 5,963 Hikma Pharmaceuticals 45,110 0.06 23,794 Shire 352,389 0.48

5,305,680 7.25

Food & Drug Retailers — 2.91% (2.94%) 113,021 Morrison (Wm) Supermarkets 336,803 0.46 17,746 Ocado Group 24,330 0.03 79,270 Sainsbury (J) 305,190 0.42 1,372 SuperGroup 14,269 0.02 339,601 Tesco 1,450,775 1.98

2,131,367 2.91

9 Portfolio Statement continued

Holding/ Market % of Nominal Value Net Value Investment £ Assets General Retailers — 1.63% (1.68%) 9,458 Brown (N) Group 27,844 0.04 2,005 Carpetright 14,737 0.02 55,453 Debenhams 42,699 0.06 2,320 Dignity 15,128 0.02 157,521 DSG International 41,428 0.06 3,924 Dunelm Group 19,279 0.03 30,055 Galiform Furniture 22,511 0.03 8,518 Halfords Group 34,362 0.05 36,178 Home Retail Group 78,217 0.10 20,204 Inchcape 71,098 0.10 1,047 JD Sports Fashion 8,465 0.01 22,906 Kesa Electricals 37,039 0.05 99,187 Kingfisher 247,769 0.33 67,566 Marks & Spencer Group 288,304 0.39 3,825 Mothercare 19,756 0.03 7,784 Next 180,433 0.25 12,796 Sports Direct International 18,183 0.02 6,214 WHSmith 30,007 0.04

1,197,259 1.63

Media — 1.93% (2.00%) 47,427 Aegis Group 60,754 0.08 55,911 BSkyB 391,377 0.54 11,151 Daily Mail & General Trust (A) 58,654 0.08 1,802 Euromoney Institutional Investor 11,028 0.02 11,192 ITE Group 20,694 0.03 162,129 ITV 110,086 0.15 13,504 Moneysupermarket.com 11,586 0.02 34,521 Pearson 338,306 0.46 51,811 Reed Elsevier 287,551 0.39 4,956 Rightmove 38,607 0.05 9,970 United Business Media 65,603 0.09 107,977 Yell Group 16,089 0.02

1,410,335 1.93

Travel & Leisure — 2.63% (2.81%) 4,174 Avis Europe 8,907 0.01 48,373 British Airways 136,557 0.19 8,997 Carnival 234,372 0.32 80,642 Compass Group 424,580 0.58 5,119 Domino's Pizza UK & Ireland 23,399 0.03 13,738 easyJet 62,371 0.08 23,710 Enterprise Inns 28,215 0.04 20,338 FirstGroup 80,335 0.11 1,968 Go-Ahead Group 24,659 0.03 9,589 Greene King 40,705 0.06 12,236 InterContinental Hotels 147,689 0.20 39,599 Ladbrokes 53,181 0.07 23,645 Marston's 24,142 0.03 6,134 Millennium & Copthorne Hotels 34,657 0.05 17,718 Mitchells & Butlers 55,528 0.07 21,783 National Express 53,956 0.07 12,308 PartyGaming 33,269 0.05 24,626 Punch Taverns 18,470 0.03 16,905 Rank Group 21,266 0.03 7,503 Restaurant Group 21,429 0.03 21,660 Sportingbet 14,317 0.02

10 Portfolio Statement continued

Holding/ Market % of Nominal Value Net Value Investment £ Assets Travel & Leisure — (cont.) 31,797 Stagecoach 66,138 0.09 36,478 Thomas Cook 65,369 0.09 23,584 Tui Travel 49,291 0.07 5,801 Wetherspoon (JD) 23,436 0.03 7,600 Whitbread 131,328 0.18 30,488 William Hill 51,708 0.07

1,929,274 2.63

Fixed Line Telecommunications — 0.91% (0.88%) 329,028 BT Group 508,019 0.69 113,921 Cable & Wireless Communications 60,492 0.08 112,819 Cable & Wireless Worldwide 78,522 0.11 15,155 TalkTalk Telecom Group 19,989 0.03

667,022 0.91

Mobile Telecommunications — 5.25% (4.89%) 19,120 Inmarsat 118,926 0.16 2,245,819 Vodafone Group 3,730,305 5.09

3,849,231 5.25

Electricity — 1.05% (1.01%) 15,054 56,994 0.08 64,567 International Power 265,177 0.36 39,450 Scottish & Southern Energy 444,207 0.61

766,378 1.05

Gas, Water & Multiutilities — 2.80% (2.46%) 220,038 718,424 0.98 147,524 National Grid 867,441 1.18 16,264 Northumbrian Water Group 56,387 0.08 15,417 Pennon Group 96,125 0.13 9,949 Severn Trent 136,898 0.19 28,897 174,538 0.24

2,049,813 2.80

Banks — 13.28% (13.81%) 512,859 Barclays 1,447,801 1.98 751,252 HSBC Holdings 5,019,115 6.85 1,712,229 Lloyds Banking Group 1,215,683 1.65 740,676 Royal Bank of Scotland 342,192 0.47 88,614 Standard Chartered 1,639,359 2.24 11,077 Standard Chartered (Nil paid rights Expiry 5/11/2010) 63,359 0.09

9,727,509 13.28

Nonlife Insurance — 0.63% (0.65%) 8,505 Admiral Group 137,016 0.19 21,016 Amlin 83,013 0.11 3,698 CPP Group 9,212 0.01 6,731 Jardine Lloyd Thompson Group 39,275 0.05 146,471 RSA Insurance Group 196,271 0.27

464,787 0.63

11 Portfolio Statement continued

Holding/ Market % of Nominal Value Net Value Investment £ Assets Life Insurance — 2.70% (2.45%) 119,655 Aviva 478,859 0.65 249,814 Legal & General Group 259,307 0.35 232,750 Old Mutual 311,652 0.43 107,607 Prudential 695,679 0.94 7,714 St. James's Place Capital 21,368 0.03 97,014 Standard Life 222,162 0.30

1,989,027 2.70

Real Estate Investment & Services — 0.17% (0.15%) 27,212 Capital & Counties Properties 40,002 0.06 85 Daejan Holdings 2,241 — 14,673 Grainger Trust 15,847 0.02 4,982 Helical Bar 16,919 0.02 5,842 Savills 18,461 0.03 7,373 St. Modwen Properties 13,183 0.02 7,267 Unite Group 15,559 0.02

122,212 0.17

Real Estate Investment Trusts — 1.23% (1.27%) 6,029 Big Yellow Group 19,721 0.03 37,085 British Land 187,836 0.26 27,212 Capital Shopping Centres 104,875 0.14 4,417 Derwent London 67,448 0.09 12,902 Great Portland Estates 43,828 0.06 30,012 Hammerson 124,370 0.17 32,785 Land Securities Group 222,282 0.30 30,524 SEGRO 90,351 0.12 9,076 Shaftesbury 40,388 0.06

901,099 1.23

Financial Services — 1.80% (1.77%) 40,416 3i Group 120,076 0.16 48,753 Aberdeen Asset Management 84,440 0.12 11,512 Ashmore Group 43,665 0.06 6,370 BlueBay Asset Management 31,054 0.04 6,473 Close Brothers Group 50,489 0.07 5,936 Hargreaves Lansdown 26,813 0.04 28,111 ICAP 131,419 0.18 14,977 IG Group 82,598 0.11 17,581 Intermediate Capital Group 57,050 0.08 11,583 International Personal Finance 35,710 0.05 22,976 Investec 114,420 0.16 9,789 Jupiter Fund Management 27,566 0.04 8,521 London Stock Exchange 59,136 0.08 73,609 Man Group 189,985 0.26 13,552 Paragon Group 20,735 0.03 5,393 Provident Financial 43,252 0.06 1,890 Rathbone Brothers 16,698 0.02 7,298 Schroders 110,711 0.15 2,636 Schroders (Non-voting) 31,316 0.04 9,385 Tullett Prebon 37,549 0.05

1,314,682 1.80

12 Portfolio Statement continued

Holding/ Market % of Nominal Value Net Value Investment £ Assets Equity Investment Instruments — 1.80% (1.73%) 25,780 3I Infrastructure 29,157 0.04 4,047 Aberforth Smaller Companies Trust 23,796 0.03 29,017 Alliance Trust 101,821 0.14 4,853 Bankers Investment Trust 18,708 0.03 12,332 British Assets Trust 16,081 0.02 6,739 British Empire Securities & General Trust 32,192 0.04 1,886 Caledonia Investments 33,477 0.05 8,513 City of London Investment Trust 23,998 0.03 9,529 Edinburgh Dragon Trust 23,737 0.03 8,518 Edinburgh Investment Trust 37,675 0.05 1,483 Electra Investment Trust 22,186 0.03 25,902 F&C Investment Trust 76,618 0.11 19,967 Fidelity China Special Situations 24,759 0.03 1,914 Fidelity European Values 20,997 0.03 2,792 Fidelity Special Values 15,649 0.02 3,483 Herald Investment Trust 15,586 0.02 21,167 HSBC Infrastructure 24,808 0.03 11,325 Impax Enviromental Markets Trust 13,307 0.02 2,103 JPMorgan American Investment Trust 15,667 0.02 7,507 JPMorgan Asian Investment Trust 17,671 0.02 5,039 JPMorgan Emerging Markets Investment Trust 30,410 0.04 1,800 JPMorgan European Fledgeling Investment Trust 14,364 0.02 5,284 JPMorgan Indian Investment Trust 25,384 0.03 4,334 JPMorgan Mercantile Investment Trust 42,560 0.06 4,688 Law Debenture 15,128 0.02 3,839 Merchants Trust 14,761 0.02 7,786 Merrill Lynch World Mining Trust 52,711 0.07 11,332 Monks Investment Trust 37,962 0.05 2,406 Murray Income Trust 14,592 0.02 4,093 Murray International Trust 38,085 0.05 9,496 Perpetual Income & Growth Investment Trust 22,695 0.03 6,254 Polar Capital Technology Trust 20,469 0.03 6,524 RIT Capital Partners 75,744 0.10 7,182 Schroder Asia Pacific Fund 15,010 0.02 5,365 Scottish Investment Trust 25,162 0.04 10,851 Scottish Mortgage & Trust 71,508 0.10 20,903 Securities Trust of Scotland† — — 11,761 SVG Capital 22,534 0.03 2,386 Temple Bar Investment Trust 19,458 0.03 14,037 Templeton Emerging Markets Investment Trust 92,644 0.13 11,476 TR Property Investment Trust 18,878 0.03 7,203 TR Property Investment Trust (Sigma Shares) 5,712 0.01 15,586 UK Commercial Property Trust 12,165 0.02 8,805 Witan Investment Trust 42,528 0.06

1,318,354 1.80

13 Portfolio Statement continued

Holding/ Market % of Nominal Value Net Value Investment £ Assets Software & Computer Services — 1.15% (1.15%) 10,367 Autonomy 152,188 0.21 3,039 Aveva Group 42,820 0.06 4,057 Computacenter 14,605 0.02 75,472 Dimension Data Holdings 90,340 0.12 1,364 Fidessa Group 21,838 0.03 34,828 Invensys 111,554 0.15 69,740 LogicaCMG 91,359 0.12 8,750 Micro Focus International 35,998 0.05 23,756 Misys 67,396 0.09 55,618 Sage Group 151,503 0.21 3,513 SDL 20,744 0.03 8,598 Telecity 41,752 0.06

842,097 1.15

Technology Hardware & Equipment — 0.45% (0.33%) 56,039 ARM Holdings 214,293 0.29 7,589 CSR 25,537 0.03 10,806 Imagination Technologies 47,179 0.07 29,961 Spirent Communications 41,466 0.06

328,475 0.45

GUERNSEY — 1.63% (1.34%) General Industrials — 0.08% (0.08%) 7,370 Charter International 59,107 0.08

Support Services — 0.47% (0.43%) 43,458 Experian Group 314,636 0.43 32,303 Regus 26,521 0.04

341,157 0.47

Media — 0.54% (0.55%) 53,424 WPP Group 393,201 0.54

Financial Services — 0.28% (0.07%) 36,130 Henderson Group 48,089 0.06 62,577 Resolution 159,822 0.22

207,911 0.28

Equity Investment Instruments — 0.26% (0.21%) 18,827 Babcock & Brown 20,860 0.03 1,433 BH Global — GBP Shares 16,637 0.02 1,149 BH Global — USD Shares 8,379 0.01 2,362 BH Macro (GBP) 41,524 0.06 20,247 Close AllBlue Fund 34,926 0.05 19,868 Dexion Absolute 27,378 0.04 11,857 F&C Commercial Property Trust 10,731 0.01 6,161 Genesis Emerging Markets Fund 32,653 0.04

193,088 0.26

14 Portfolio Statement continued

Holding/ Market % of Nominal Value Net Value Investment £ Assets JERSEY — 0.19% (0.17%) Media — 0.15% (0.14%) 25,907 Informa 109,353 0.15

Nonlife Insurance — 0.04% (0.03%) 22,432 Beazley 25,931 0.04

BERMUDA — 0.30% (0.24%) Mining — 0.10% (0.12%) 19,694 Aquarius Platinum 71,824 0.10

Nonlife Insurance — 0.20% (0.12%) 15,747 Catlin Group 53,634 0.07 16,236 Hiscox 56,371 0.08 6,494 Lancashire Holdings 37,373 0.05

147,378 0.20

CAYMAN ISLANDS — 0.04% (0.04%) Financial Services — 0.02% (0.02%) 10,404 Gartmore Group 12,204 0.02

Equity Investment Instruments — 0.02% (0.02%) 744 BH Macro 11,208 0.02

BRITISH VIRGIN ISLANDS — 0.06% (0.02%) Life Insurance — 0.06% (0.00%) 7,052 Phoenix Group Holdings 47,178 0.06

Mining — 0.00% (0.02%) BELGIUM — 0.01% (0.03%) Industrial Engineering — 0.01% (0.03%) 22,690 Hansen Transmissions International 9,348 0.01

FINLAND — 0.05% (0.05%) Industrial Metals & Mining — 0.05% (0.05%) 7,120 Talvivaara Mining 37,487 0.05

IRELAND — 0.03% (0.00%) Mining — 0.03% (0.00%) 102,789 Kenmare Resources 19,633 0.03

LUXEMBOURG — 0.03% (0.03%) Fixed Line Telecommunications — 0.03% (0.03%) 16,769 Colt Telecom 20,324 0.03

NETHERLANDS — 0.05% (0.04%) Nonlife Insurance — 0.05% (0.04%) 3,327 Brit Insurance Holdings 33,802 0.05

15 Portfolio Statement continued

Holding/ Market % of Nominal Value Net Value Investment £ Assets UNITED ARAB EMIRATES — 0.03% (0.02%) Oil Equipment, Services & Distribution — 0.03% (0.02%) 6,416 Lamprell 22,488 0.03

AUSTRALIA — 0.10% (0.00%) Mining — 0.10% (0.00%) 44,502 Centamin Egypt 73,962 0.10

FUTURES — 0.01% (0.00%) 4 FTSE 100 Index Future Expiry December 2010 5,585 0.01

Portfolio of investments 72,862,162 99.50

Net other assets 366,712 0.50

Net assets £73,228,874 100.00%

†These are delisted securities and have been valued at the Manager's best assessment of their fair values. Total purchases for the period £826,524. Total sales for the period £3,460,037.

16 Financial Statements

Statement of Total Return for the period ended 22 October 2010

22/10 /10 22/10 /09 ££ ££ Income Net capital gains 944,250 16,722,628 Revenue 1,157,035 1,259,748 Expenses (403,530) (323,742) Finance costs: Interest (5) —

Net revenue before taxation 753,500 936,006 Taxation (9,966) (13,729)

Net revenue after taxation for the period 743,534 922,277

Total return before distributions 1,687,784 17,644,905 Finance costs: Distributions (743,534) (922,277)

Change in net assets attributable to Unitholders from investment activities £944,250 £16,722,628

Statement of Change in Net Assets attributable to Unitholders for the period ended 22 October 2010

22/10 /10 22/10 /09 ££ ££ Opening net assets attributable to Unitholders 74,627,399 54,773,245 Amounts received on creation of units 1,044,315 1,303,705 Amounts paid on cancellation of units (3,447,100) (2,252,551)

(2,402,785) (948,846) Change in net assets attributable to Unitholders from investment activities 944,250 16,722,628 Retained distribution on accumulation units 59,827 68,570 Unclaimed distributions 183 (5,358)

Closing net assets attributable to Unitholders £73,228,874 £70,610,239

The difference between the opening net assets and the comparative closing net assets is the movement in the second half of the year.

17 Financial Statements continued

Balance Sheet as at 22 October 2010

22/10/10 22/04/10 ££ ££ ASSETS Investment assets 72,862,162 74,551,300 Debtors 254,962 389,731 Cash and bank balances 923,101 530,913 Amounts held at broker houses 56,852 —

Total other assets 1,234,915 920,644

Total assets 74,097,077 75,471,944

LIABILITIES Investment liabilities — — Creditors (202,498) (138,127) Distribution payable on distribution units (665,705) (706,418)

Total other liabilities (868,203) (844,545)

Total liabilities (868,203) (844,545)

Net assets attributable to Unitholders £73,228,874 £74,627,399

18 Notes to the Financial Statements as at 22 October 2010

1. Accounting policies (a) Changes in accounting policies The financial statements have been prepared under the historical cost convention, as modified by the revaluation of investments, and in accordance with the Statement of Recommended Practice for Authorised Funds issued by the IMA in October 2010 (‘the IMA SORP 2010’). Previously the financial statements were prepared in accordance with the Statement of Recommended Practice for Authorised Funds issued by the IMA in November 2008. There has been no impact on the financial statements disclosure for the period.

19 Trust Facts

Distribution Information The distribution payable on 21 December 2010 is 1.3082p net per unit for distribution units and 1.5098p net per unit for accumulation units.

Total Expense Ratio

22 Oct 10 1.15% 22 Apr 10 1.09% The Total Expense Ratio is the ratio of the Trust’s operating costs (excluding overdraft interest) to the average net assets of the Trust.

20 Performance Record

Net Asset Values

Net Asset Net Asset Number Of Accounting Value Of Value Per Units Date Trust Unit In Issue 22 Apr 08 Distribution Units £80,247,193 137.36p 58,420,705 Accumulation Units £5,606,844 148.90p 3,765,589 22 Apr 09 Distribution Units £50,781,789 90.86p 55,891,070 Accumulation Units £3,991,456 102.48p 3,894,877 22 Apr 10 Distribution Units £68,520,351 130.02p 52,701,831 Accumulation Units £6,107,048 150.04p 4,070,171 22 Oct 10 Distribution Units £67,190,412 132.05p 50,884,318 Accumulation Units £6,038,462 152.39p 3,962,581

Unit Price Range and Net Revenue

Highest Lowest Net Year Offer Bid Revenue

Distribution Units 2005 127.00p 106.40p 2.6296p 2006 143.30p 124.20p 3.0636p 2007 154.60p 135.00p 3.2609p 2008 148.40p 83.39p 3.9347p 2009 123.70p 80.38p 3.1788p 2010 (1) 134.70p 111.80p 2.6486p Accumulation Units 2005 130.00p 106.90p 2.6455p 2006 149.90p 128.60p 3.1535p 2007 163.40p 142.70p 3.4302p 2008 158.70p 92.40p 4.2371p 2009 141.30p 89.06p 3.5527p 2010 (1) 155.40p 129.00p 3.0410p

(1) The above table shows highest offer and lowest bid prices to 22 October 2010 and the net revenue per unit to 21 December 2 010. Past performance is not a guide to future performance. The price of units and income from them may go down as well as up.

21 General Information

Constitution Launch date: 3 October 1998 Period end dates for distributions: 22 April, 22 October Distribution dates: 21 June, 21 December Minimum initial lump sum investment: £500 Minimum monthly contribution: £50 Valuation point: 12 noon Management charges: Annual 1% Initial charges: Nil Pricing and Dealing The prices are published on the internet at www.legalandgeneral.com/investments/daily-prices.html 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 telephoning or by completing an applicatio n for m. 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 0370 050 0955. Stamp Duty Reserve Tax Stamp Duty Reserve tax suffered on the surrender of units where applicable, has been charged against the capital assets of the Trust. 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 report s ar e availabl e fre e of charg e by telephoning 0370 050 0955 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 0370 050 0955. Call charges will vary. We may record and monitor calls.

22 General Information continued

Significant Changes Calculation of Unit Prices From 7 June 2010, the way we price units in this Trust has changed. Each day, two unit prices are calculated: • The Creation Price — based on the price of buying all the Trust’s assets plus any costs involved, and; • The Cancellation Price — based on the price of selling all the Trust’s assets less any costs involved. The difference between these two prices is known as ‘the spread’. Prior to 7 June 2010 we based our daily dealing price on either the creation or cancellation price, depending on the volume of overall transactions in the Trust for that valuation point. Generally, we would use the creation price if we were selling more units to clients than we were buying back and the cancellation price if we were buying back more units from clients than we were selling. This price would then become the ‘published bid price’ — we would then add any applicable initial charge to arrive at the ‘published offer price’. From 7 June 2010, we have based the price of selling units to clients on the creation price and refer to this as the ‘offer price’ (creation price plus any initial charge). The price at which we buy back clients’ units is based on the cancellation price and is referred to as the ‘bid price’. This means that there is a difference between the selling (offer) and buying (bid) prices for units, being the spread plus any initial charge. Both the bid and offer prices are published on our website www.legalandgeneral.com/utprices.

23 General Information continued

Manager Legal & General (Unit Trust Managers) Limited Registered in England No. 01009418 Registered office: One Coleman Street, London EC2R 5AA Telephone: 0370 050 3350 Authorised and regulated by the Financial Services Authority Directors of the Manager M. B. Boardman S. Ellis M. J. Gregory S. R. Pistell S. D. Thomas Secretary A. Fairhurst Registrar Legal & General (Portfolio Management Services) Limited Customer Services P.O. Box 1004 Cardiff CF24 0YS Authorised and regulated by the Financial Services Authority Dealing: 0370 050 0956 Enquiries: 0370 050 0955 Registration: 0370 050 0955 Call charges will vary. We may record and monitor calls. Trustee The Royal Bank of Scotland Plc Trustee and Depositary Services Gogarburn P.O. Box 1000 Edinburgh EH12 1HQ Authorised and regulated by the Financial Services Authority Independent Auditors PricewaterhouseCoopers LLP Hay’s Galleria 1 Hay’s Lane London SE1 2RD Investment Adviser BlackRock Advisors (UK) Limited 33 King William Street London EC4R 9AS Authorised and regulated by the Financial Services Authority

24

Authorised and regulated by the Financial Services Authority Legal & General (Unit Trust Managers) Limited Registered in England No. 01009418 Registered office: One Coleman Street, London EC2R 5AA www.legalandgeneral.com