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Legal & General (Barclays)Combined Income Trust

Interim Manager’s Reportfor the period ended16 July 2011(Unaudited)

Distribution Number 10

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Page Number

Manager’s Investment Report 2

Authorised Status 5

Directors’ Statement 5

Portfolio Statement 6

Statement of Total Return 27

Statement of Change in Net Assetsattributable to Unitholders 27

Balance Sheet 28

Notes to the Financial Statements 29

Trust Facts 30

Performance Record 31

General Information 32

Contents

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Investment Objective and PolicyThe objective of this Trust is to provide an attractive level ofincome with the prospect of capital growth over the medium tolong term, from a portfolio comprising mainly UK equities andfixed interest securities (including Government securities).

Manager’s Investment ReportDuring the period under review, the bid price of the Trust’sunits fell by 0.17%.

Past performance is not a guide to future performance.

The value of investments and any income from them may godown as well as up.

Market/Economic ReviewIt has been a volatile six months in markets. Both global equityand fixed income markets have borne the brunt of there-emergence of the European sovereign (government) debtcrisis, the political uncertainty brought by the Arab Spring, thehuman misfortune and supply chain disruption caused by theJapanese earthquake as well as the uncertainties surroundingthe US debt ceiling debate.

The first quarter of 2011 will be remembered more for politicalturmoil in the Middle East and North Africa (MENA) and theterrible human tragedy and aftermath of the tsunami andearthquake in northern Japan, than for economic or financialmarket developments. Global equities began 2011 continuingon from December’s strong performance. Developed marketscontinued to outperform emerging countries, which sufferedfrom the headwinds of geopolitical risk and fears of monetarytightening from rising inflation. The earnings season wassupportive and merger and acquisition activity was robust.Conflict across MENA worsened the tightening oil supply andled to an approximate 14% increase in the oil price. Inflation inboth Europe and the UK remained stubbornly high due toglobal increases in commodity prices. Despite concerns oversluggish growth, the European Central Bank (ECB) raised thebase rate by 0.25% to 1.25%. Core inflation around the USremained around trend as policy makers discussed the potentialend of the second wave of quantitative easing.

Many of these geopolitical themes continued to developthroughout the second quarter. The sovereign (government)debt crisis in the eurozone periphery once again took centrestage in financial news on rumours of Greek restructuring,while the turmoil and involvement of NATO forces in Libyashowed no sign of abating. In addition, local elections in Spainand Germany and the debate in Washington over the US debtceiling also raised investor concerns. Economic data releaseswere mixed, although did include some very disappointing data,while consumer price inflation remained staunchly above

Manager’s Investment Report

central bank targets in the eurozone and the UK. In July 2011,the ECB raised rates further, by 0.25% to 1.5% and towards theend of the period, the International Energy Agency (IEA)announced the release of 60 million barrels of oil from itsstrategic petroleum reserves, softening prices during the summerdriving season. Overall,most major equity markets declined inthe first three weeks of June, to finish slightly higher at the end ofthe second quarter, in local currency terms. Commodities as awhole were down over the period,while bonds rallied.

Trust ReviewPassive equity portionDuring the first quarter theTrust accepted the tender offer onBrit Insurance by Achilles Netherlands. For each share tenderedtheTrust received £10.70 in cash. Within the FTSE All Share IndextheTrust paid calls on a number of rights issues includingYule Catto and RPC Group in the FTSE 350 HighYield Index.

The annual changes to the UK series of the FTSE Actuaries ShareIndices and the FTSE Actuaries Higher Yield Index becameeffective on Monday, 20 June 2011. The largest additions wereTesco, Unilever, Reckitt Benckiser Group and Prudential. Thelargest deletions were Sainsbury (J) and IMI.

During May 2011, Glencore was added to theFTSE All Share Index as a fast entry following the initial publicoffering. Also during the second quarter the Trust acceptedtakeover offers for Northern Foods and Forth Ports.

Fixed Income portionNew issuance of UK corporate bonds proceeded at a paceroughly in line or slightly ahead of 2010 but still at historicallylow levels. There were significant periods of low activitysurrounding events in Europe. In July 2011, for example, totalissuance was £0.6 billion. Four of the last six months have seennegative net supply as redemptions of maturing debt haveoutpaced supply, continuing the theme seen in 2010. Thisoverall trend is being driven by financials.

Issuance highlights were as follows:

GGoovveerrnnmmeenntt GGuuaarraanntteeeeddThe European Investment Bank came to the market in Marchand April 2011 with 10 year and 5 year issues respectively,raising £950 million.

FFiinnaanncciiaallssFinancials issuance has been extremely low over the past six months with redemptions roughly double new issuance.Old Mutual was a significant issuer in June 2011, with a £500million 10 year issue. Old Mutual was upgraded in May 2011 byFitch from BB+ to BBB- becoming once again part of theinvestment grade universe. AIG was also upgraded by Moody’sand some bonds re-entered the Index in February.

Manager’s Investment Report continued

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Manager’s Investment Report continued

IInndduussttrriiaallssIndustrial issuance has been significantly higher in 2011 than2010 with the previous six month period supply alreadyexceeding all of 2010. BAA, the airport operator, the retailerNext, The Co-operative Group and Volkswagen were amongnames which came to the market.

UUttiilliittiieessWestern Power issued two bonds in May 2011 raising £1.4 billion from 12 and 21 year bonds. South Eastern PowerNetworks and Thames Water also came to the market.

DDoowwnnggrraaddeessIn terms of downgrades from the corporate indices there hasbeen little activity. Companies have generally beenstrengthening their balance sheets and credit worthiness hasimproved. In March 2011, Moody’s downgraded Punch Tavernsfrom Baa2 to Ba1 and negative watch. This caused two bonds tofall out of the Index.

OutlookAs markets remain drawn into geopolitical concerns, we expectheadline inflation in many developed economies to stabilise andtrend modestly lower in 2012. Austerity programmes andslowing industrial production will likely affect growth. As of yet,the oil price above USD 100 per barrel has not had a negativeeffect on global economic activity, but overall we expect higherenergy costs to have a moderate impact at current levels,reducing global economic growth by around 0.25%. Broadlyneutral returns are expected on both fixed income and equityassets, and we expect commodities to trend positively.

BlackRock Advisors (UK) Limited(Investment Adviser)9 August 2011

Authorised StatusThis Trust is an Authorised Unit Trust Scheme as defined insection 243 of the Financial Services and Markets Act 2000 andis a UCITS Retail Scheme within the meaning of the FSACollective Investment Schemes sourcebook.

Directors’ StatementWe hereby certify that this Manager’s Report has been preparedin accordance with the requirements of the FSA CollectiveInvestment Schemes sourcebook.

M. B. Boardman S. D. Thomas(Director) (Director)

Legal & General (Unit Trust Managers) Limited1 September 2011

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Authorised Status

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Portfolio Statement as at 16 July 2011All investments are in ordinary shares or common stocks and fixedinterest securities unless otherwise stated. The percentages inbrackets show the equivalent sector holdings at 16 January 2011.

Holding/ Market % ofNominal Value NetValue Investment £ Assets

EQUITIES — 75.25% (76.33%)

Oil & Gas Producers — 14.88% (15.70%)

73,657 Afren 112,695 0.03251,499 BG Group 3,493,321 1.09

3,552,022 BP 16,158,148 5.02109,141 Cairn Energy 420,739 0.1347,152 Enquest 57,195 0.0231,101 Essar Energy 117,468 0.04

182,371 Fortune Oil 22,249 0.016,911 Hardy Oil & Gas 14,928 —

16,920 Heritage Oil 40,439 0.0110,834 JKX Oil & Gas 27,963 0.0136,852 Premier Oil 150,135 0.05

669,418 Royal Dutch Shell (A) 14,830,956 4.61512,933 Royal Dutch Shell (B) 11,423,018 3.55

7,303 Salamander Energy 20,207 0.0127,328 SOCO International 97,233 0.0367,442 Tullow Oil 867,304 0.27

47,853,998 14.88

Oil Equipment, Services & Distribution — 0.19% (0.21%)

11,318 Hunting 89,582 0.0315,033 Lamprell 56,870 0.0219,777 Petrofac 290,722 0.0924,352 Wood Group (John) 164,254 0.05

601,428 0.19

Chemicals — 0.25% (0.22%)15,033 AZ Electronic Materials 41,251 0.017,755 Carclo 26,251 0.01

10,753 Croda International 216,458 0.0740,130 Elementis 71,512 0.0214,065 Johnson Matthey 282,566 0.096,774 Victrex 102,762 0.03

23,923 Yule Catto 55,190 0.02

795,990 0.25

Forestry & Paper — 0.06% (0.05%)

29,105 Mondi (UK) 183,070 0.06

Industrial Metals & Mining — 0.02% (0.01%)

71,702 International Ferro Metals (UK Listing) 12,906 —

11,856 Talvivaara Mining 47,981 0.02

60,887 0.02

Portfolio Statement


Mining — 5.19% (5.56%)9,788 African Barrick Gold 44,457 0.01

94,875 Anglo American 2,821,582 0.8810,179 Anglo Pacific Group 31,555 0.0130,525 Antofagasta 426,129 0.1331,280 Aquarius Platinum 97,375 0.03

158,464 BHP Billiton 3,707,265 1.1581,571 Centamin Egypt 109,142 0.0330,214 Eurasian Natural Resources 231,288 0.077,354 Ferrexpo 34,203 0.01

16,917 Fresnillo 276,762 0.0913,239 Gem Diamonds 31,919 0.0162,979 Glencore 309,731 0.109,924 Hochschild Mining 48,985 0.02

16,774 Kazakhmys 224,772 0.07122,308 Kenmare Resources 69,532 0.0215,496 Lonmin 207,646 0.0624,420 Namakwa Diamonds 9,035 — 20,608 New World Resource 178,156 0.0615,125 Petropavlovsk 123,117 0.046,922 Randgold Resources 380,364 0.12

114,119 Rio Tinto 4,992,706 1.5595,859 UK Coal 35,947 0.0110,349 Vedanta Resources 192,905 0.06

157,291 Xstrata 2,121,856 0.66

16,706,429 5.19

Construction & Materials — 0.21% (0.22%)

10,800 Aga Rangemaster Group 11,178 — 132,162 Balfour Beatty 406,662 0.1310,508 Galliford Try 53,223 0.029,880 Keller 45,033 0.018,509 Kier Group 115,893 0.03

19,689 Marshalls Group 21,264 0.018,935 Severfield-Rowen 19,764 0.01

673,017 0.21

Aerospace & Defence — 1.10% (1.20%)

651,166 BAE Systems 1,973,033 0.619,535 Chemring Group 55,112 0.02

91,035 Cobham 190,991 0.0632,349 Hampson Industries 7,990 — 57,217 Meggitt 217,539 0.0745,000 QinetiQ 55,665 0.02

144,642 Rolls-Royce 925,709 0.2916,292 Senior 30,271 0.012,269 Ultra Electronics Holdings 37,438 0.017,537 UMECO 28,656 0.01

3,522,404 1.10

General Industrials — 0.29% (0.29%)

12,743 Charter International 105,576 0.0319,385 Cookson Group 120,381 0.0466,281 Rexam 251,536 0.0810,465 RPC Group 37,088 0.01

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Portfolio Statement continued

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General Industrials — (cont.)40,771 Smith (David S) Holdings 100,541 0.0327,494 Smiths Group 320,580 0.10

935,702 0.29

Electronic & Electrical Equipment — 0.20% (0.27%)

1,867 Dialight 13,900 — 11,023 Domino Printing Sciences 73,413 0.0228,113 E2V Holdings 36,266 0.0127,240 Halma 113,128 0.0346,583 Laird Group 88,182 0.0320,783 Morgan Crucible 72,844 0.026,302 Oxford Instruments 60,625 0.021,189 Renishaw 20,962 0.019,178 Spectris 150,519 0.051,875 XP Power 30,169 0.01

660,008 0.20

Industrial Engineering — 0.36% (0.53%)

15,847 Bodycote 57,984 0.027,584 Fenner 31,125 0.01

74,817 Hansen Transmissions International 25,213 0.01

4,245 Hill & Smith Holdings 15,630 — 25,682 IMI 277,109 0.0939,081 Melrose 140,653 0.047,478 Rotork 120,919 0.046,039 Spirax-Sarco Engineering 118,002 0.04

16,608 Weir Group 356,408 0.11

1,143,043 0.36

Industrial Transportation — 0.09% (0.11%)

95,241 BBA Aviation 208,959 0.0639,641 Stobart Group 55,537 0.0218,683 Wincanton 22,177 0.01

286,673 0.09

Support Services — 1.77% (1.86%)

20,924 Aggreko 421,201 0.1321,599 Aggreko (Preference Shares) 11,879 — 25,385 AMEC 275,427 0.0939,658 Anite 27,642 0.0146,034 Ashtead Group 77,015 0.0220,910 Atkins (WS) 153,584 0.0520,826 Babcock International Group 145,157 0.0510,508 Bunzl 82,645 0.0346,685 Capita Group 325,628 0.1085,345 Carillion 319,446 0.103,631 Connaught* — —

36,721 Davis Service Group 201,415 0.0611,184 De La Rue 84,775 0.0386,926 Electrocomponents 202,885 0.0677,895 Experian Group 622,381 0.1918,899 Filtrona 69,189 0.02



Support Services — (cont.)106,148 G4S 290,633 0.09267,412 Hays 249,495 0.0817,882 Homeserve 87,908 0.036,494 Hyder Consulting 26,736 0.01

12,250 Interserve 39,384 0.0112,737 Intertek Group 241,239 0.0817,567 Lavendon Group 17,743 0.014,925 Menzies (John) 25,758 0.01

26,084 Michael Page International 138,245 0.0476,524 Mitie Group 181,821 0.063,493 PayPoint 18,408 0.01

77,624 Premier Farnell 147,253 0.0550,946 Regus 52,882 0.02

140,169 Rentokil Initial 129,516 0.0411,308 Robert Walters 35,790 0.0123,115 RPS Group 53,742 0.0231,863 Serco Group 175,565 0.0538,264 Shanks Group 48,174 0.0121,825 SIG 29,682 0.0120,509 St. Ives 18,704 — 11,604 SThree 46,694 0.0117,456 Travis Perkins 166,443 0.0522,103 Wolseley 421,283 0.134,800 WSP Group 13,186 —

10,547 Xchanging 10,410 —

5,686,963 1.77

Automobiles & Parts — 0.09% (0.08%)

117,504 GKN 276,252 0.0922,399 Torotrak 11,759 —

288,011 0.09

Beverages — 1.41% (1.40%)2,864 Barr (AG) 37,432 0.01

46,765 Britvic 174,059 0.05191,763 Diageo 2,397,037 0.7583,586 SABMiller 1,941,703 0.60

4,550,231 1.41

Food Producers — 1.94% (0.95%)31,078 Associated British Foods 339,993 0.11

124,338 Booker Group 93,502 0.039,545 Cranswick 69,249 0.02

28,014 Dairy Crest Group 107,518 0.0320,941 Greggs 111,406 0.04

169,164 Premier Foods 35,017 0.0190,237 Tate & Lyle 554,958 0.17

248,641 Unilever 4,930,551 1.53

6,242,194 1.94

Household Goods & Home Construction — 1.65% (0.75%)

77,273 Barratt Developments 81,059 0.0310,417 Bellway 70,211 0.0210,983 Berkeley Group 140,143 0.0412,050 Bovis Homes Group 51,068 0.02

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Household Goods & Home Construction — (cont.)

7,089 McBride 8,840 — 14,515 Persimmon 69,672 0.02

137,447 Reckitt Benckiser Group 4,772,160 1.4826,845 Redrow Group 34,550 0.01

220,658 Taylor Wimpey 79,437 0.03

5,307,140 1.65

Leisure Goods — 0.01% (0.02%)12,908 Hornby 17,426 — 25,787 Pace Micro Technology 29,191 0.01

46,617 0.01

Personal Goods — 0.16% (0.11%)33,628 Burberry Group 517,871 0.16

Tobacco — 4.54% (4.09%)373,419 British American Tobacco 10,446,397 3.25192,489 Imperial Tobacco 4,161,612 1.29

14,608,009 4.54

Health Care Equipment & Services — 0.16% (0.16%)

18,284 Optos 29,620 0.0167,898 Smith & Nephew 448,127 0.144,968 Synergy Healthcare 46,252 0.01

523,999 0.16

Pharmaceuticals & Biotechnology — 6.93% (6.90%)

257,678 AstraZeneca 7,958,385 2.4815,853 Axis-Shield 78,552 0.0220,751 BTG 62,128 0.022,225 Dechra Pharmaceuticals 10,573 — 5,120 Genus 51,968 0.02

974,287 GlaxoSmithKline 13,089,546 4.0712,702 Hikma Pharmaceuticals 95,773 0.0343,325 Shire 895,094 0.2831,404 Vectura 29,740 0.01

22,271,759 6.93

Food & Drug Retailers — 2.21% (1.39%)

206,526 Morrison (Wm) Supermarkets 606,360 0.1920,796 Ocado Group 39,471 0.01

145,763 Sainsbury (J) 465,859 0.141,918 SuperGroup 20,408 0.01

1,480,587 Tesco 5,971,207 1.86

7,103,305 2.21

General Retailers — 1.11% (1.12%)

44,767 Brown (N) Group 121,139 0.045,284 Carpetright 31,440 0.01

111,246 Debenhams 73,756 0.023,150 Dignity 24,822 0.01

268,778 DSG International 41,661 0.01


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General Retailers — (cont.)53,704 Galiform Furniture 60,363 0.0230,069 Game Group 9,622 — 33,279 Halfords Group 120,503 0.04

161,031 Home Retail Group 238,326 0.0738,256 Inchcape 155,549 0.0547,309 Kesa Electricals 67,652 0.02

182,235 Kingfisher 472,171 0.15278,664 Marks & Spencer Group 1,002,912 0.3117,136 Mothercare 70,189 0.0233,888 Next 817,040 0.2549,624 Pendragon 10,173 — 37,764 Photo-Me International 24,244 0.0125,247 Sports Direct International 64,304 0.023,048 Ted Baker 24,003 0.01

20,243 Topps Tiles 10,769 — 28,752 WHSmith 146,779 0.05

3,587,417 1.11

Media — 1.79% (1.87%)98,608 Aegis Group 153,040 0.05

100,819 BSkyB 711,782 0.2236,065 Centaur Holdings 18,032 0.019,278 Chime Communications 23,566 0.01

52,302 Daily Mail & General Trust (A) 221,394 0.073,762 Euromoney Institutional Investor 25,187 0.01

30,656 Huntsworth 22,072 0.0142,526 Informa 180,480 0.0619,341 ITE Group 43,401 0.01

310,355 ITV 207,938 0.067,280 Mecom Group 16,999 —

28,004 Moneysupermarket.com 31,757 0.01151,574 Pearson 1,756,743 0.55231,187 Reed Elsevier 1,268,061 0.39

8,930 Rightmove 109,125 0.0321,257 Smiths News 18,217 0.0123,834 Trinity Mirror 9,414 — 46,641 United Business Media 246,498 0.0824,723 UTV Media 30,335 0.0191,835 WPP 656,161 0.20

182,451 Yell Group 13,282 —

5,763,484 1.79

Travel & Leisure — 1.40% (1.52%)9,124 Avis Europe 28,376 0.014,231 Betfair Group 27,121 0.01

49,122 BWIN.Party Digital 69,115 0.0215,562 Carnival 345,010 0.11

144,889 Compass Group 854,845 0.2711,741 Domino's Pizza UK & Ireland 50,897 0.0225,971 easyJet 81,964 0.0344,674 Enterprise Inns 26,715 0.0190,387 FirstGroup 325,212 0.108,735 Go-Ahead Group 135,305 0.04

43,079 Greene King 211,992 0.0721,791 InterContinental Hotels 269,990 0.08

126,612 International Consolidated Airlines Group 291,208 0.09


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Travel & Leisure — (cont.)176,992 Ladbrokes 254,337 0.08118,060 Marston's 120,893 0.0413,152 Millennium & Copthorne Hotels 66,812 0.0232,751 Mitchells & Butlers 97,565 0.0343,373 National Express 108,346 0.037,398 Northgate 24,317 0.01

44,892 Punch Taverns 32,592 0.0112,061 Restaurant Group 36,762 0.0184,817 Sportingbet 44,953 0.0159,512 Stagecoach 153,065 0.05

170,095 Thomas Cook 120,938 0.04107,431 Tui Travel 207,986 0.06

4,275 Wembley* — — 13,349 Whitbread 207,443 0.06

136,803 William Hill 300,419 0.09

4,494,178 1.40

Fixed Line Telecommunications — 1.12% (1.04%)

1,471,197 BT Group 2,860,007 0.89422,815 Cable & Wireless

Communications 172,509 0.06500,651 Cable & Wireless Worldwide 229,298 0.0729,064 Colt Telecom 39,527 0.0142,863 KCOM Group 32,576 0.01

107,524 TalkTalk Telecom Group 152,362 0.0515,274 Telecom Plus 103,099 0.03

3,589,378 1.12

Mobile Telecommunications — 4.90% (5.68%)

87,810 Inmarsat 480,321 0.159,577,507 Vodafone Group 15,256,969 4.74

11,862 Volex Group 34,459 0.01

15,771,749 4.90

Electricity — 1.14% (1.19%)67,912 Drax Group 329,577 0.10

280,732 International Power 845,565 0.26176,927 Scottish & Southern Energy 2,487,594 0.78

3,662,736 1.14

Gas, Water & Multiutilities — 2.87% (2.85%)

939,827 Centrica 2,982,071 0.93665,575 National Grid 4,033,384 1.2569,150 Northumbrian Water Group 314,909 0.1069,599 Pennon Group 486,497 0.1545,096 Severn Trent 644,422 0.20

129,178 United Utilities 757,629 0.24

9,218,912 2.87

Banks — 8.35% (10.29%)897,786 Barclays 2,009,245 0.63

3,341,402 HSBC Holdings 20,108,557 6.253,064,644 Lloyds Banking Group 1,388,284 0.43


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Banks — (cont.)1,317,862 Royal Bank of Scotland 465,205 0.14177,748 Standard Chartered 2,877,740 0.90

26,849,031 8.35

Nonlife Insurance — 0.72% (0.80%)

16,085 Admiral Group 255,430 0.0898,492 Amlin 390,915 0.1298,555 Beazley 125,559 0.0458,748 Catlin Group 228,823 0.0711,488 Hardy Underwriting Bermuda 31,707 0.0163,208 Hiscox 257,193 0.085,495 Jardine Lloyd Thompson Group 35,608 0.01

11,593 Lancashire Holdings 78,601 0.0310,423 Novae Group 37,314 0.01

649,926 RSA Insurance Group 870,901 0.27

2,312,051 0.72

Life Insurance — 2.59% (2.12%)541,293 Aviva 2,201,980 0.69

1,124,285 Legal & General Group 1,309,792 0.41319,394 Old Mutual 418,087 0.1330,588 Phoenix Group 171,905 0.05

479,451 Prudential 3,286,637 1.0218,424 St. James's Place Capital 65,958 0.02

436,824 Standard Life 877,143 0.27

8,331,502 2.59

Real Estate Investment & Services — 0.20% (0.15%)

45,249 Capital & Counties Properties 86,923 0.0342,779 Capital & Regional 16,342 — 4,830 CLS Holdings 30,670 0.01

21,099 DTZ Holdings 8,440 — 17,213 Grainger Trust 21,516 0.01

114,579 Hansteen 100,257 0.034,741 Helical Bar 11,900 —

105,103 London & Stamford Property 135,583 0.0416,603 Minerva 19,924 0.0149,645 Quintain Estates & Development 29,787 0.0145,523 Raven Russia 25,493 0.0117,112 Safestore 22,246 0.0112,797 Savills 48,373 0.0119,651 St. Modwen Properties 36,551 0.0126,539 Unite Group 56,024 0.02

650,029 0.20

Real Estate Investment Trusts — 1.29% (1.25%)

12,390 Big Yellow Group 37,975 0.01170,065 British Land 1,024,642 0.32111,095 Capital Shopping Centres 413,607 0.13

8,439 Derwent London 151,058 0.0528,394 Great Portland Estates 126,666 0.04

136,995 Hammerson 642,644 0.20133,423 Land Securities Group 1,169,453 0.36

4,742 Primary Health Properties 15,127 —


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Real Estate Investment Trusts — (cont.)

142,049 SEGRO 433,676 0.1420,111 Shaftesbury 105,080 0.03

100,709 Workspace Group 27,191 0.0125,177 Workspace Group (rights issue) 1,007 —

4,148,126 1.29

Financial Services — 1.81% (2.05%)

72,816 3i Group 204,103 0.0686,707 Aberdeen Asset Management 195,438 0.0654,613 Ashmore Group 223,913 0.0754,365 Brewin Dolphin 86,060 0.0320,595 Charles Taylor Consulting 27,947 0.017,538 City of London Investment Group 32,187 0.01

30,172 Close Brothers Group 233,079 0.0718,749 Collins Stewart Tullett 13,687 — 33,792 Evolution Group 21,965 0.0180,020 F&C Asset Management 60,255 0.0224,001 Hargreaves Lansdown 145,086 0.04

158,681 Henderson Group 242,147 0.08117,996 ICAP 567,561 0.1869,620 IG Group 302,708 0.0976,760 Intermediate Capital Group 225,444 0.0722,011 International Personal Finance 82,057 0.0398,443 Investec 492,215 0.1535,547 IP Group 17,063 0.0149,188 Leo Capital 29,759 0.0116,191 London Stock Exchange 161,262 0.05

345,538 Man Group 834,474 0.2623,090 Paragon Group 45,626 0.0126,277 Provident Financial 261,325 0.089,681 Rathbone Brothers 112,009 0.03

275,826 Resolution 767,348 0.2413,796 Schroders 221,150 0.075,122 Schroders (Non-voting) 68,788 0.02

42,244 Tullett Prebon 153,261 0.05

5,827,917 1.81

Equity Investment Instruments — 1.54% (1.63%)

52,598 3I Infrastructure 64,590 0.028,433 Aberforth Smaller Companies

Trust 59,031 0.0254,587 Alliance Trust 207,376 0.0652,505 Babcock & Brown 61,326 0.0216,949 Baillie Gifford Japan Trust 33,940 0.0114,281 Bankers Investment Trust 59,623 0.022,316 Baring Emerging Europe 20,138 0.012,762 BH Macro (GBP) 48,473 0.02

71,660 British Assets Trust 96,024 0.0316,672 British Empire Securities &

General Trust 86,111 0.037,762 Brunner Investment Trust 32,387 0.014,578 Caledonia Investments 79,291 0.023,154 Candover Investments 18,135 0.015,211 City Natural Resources High

Yield Trust 16,011 —


15


Equity Investment Instruments — (cont.)

47,383 City of London Investment Trust 140,728 0.0440,145 Close AllBlue Fund 69,732 0.0233,966 Dexion Absolute 49,454 0.0223,075 Dexion Equity Alternative 25,729 0.0121,539 Dunedin Income Growth

Investment Trust 47,493 0.0142,138 Edinburgh Investment Trust 196,321 0.0616,133 Edinburgh UK Tracker Trust 41,865 0.015,926 Edinburgh US Tracker Trust 37,689 0.013,909 Electra Investment Trust 67,118 0.02

10,008 Electric & General Investment Trust 45,636 0.01

94,297 F&C Commercial Property Trust 96,372 0.036,564 F&C Eurotrust 38,104 0.01

51,913 F&C Investment Trust 164,149 0.057,317 F&C Smaller Companies 43,207 0.01

48,166 Fidelity China Special Situations 47,733 0.015,505 Fidelity European Values 66,280 0.023,369 Fidelity Special Values 18,664 0.01

11,272 Genesis Emerging Markets Fund 59,009 0.0231,761 Goldman Sachs Dynamic

Opportunities Fund 30,014 0.0123,768 Govett Strategic Investment Trust* — —12,537 Henderson Smaller Companies

Investment Trust 39,147 0.01128,252 Henderson Diversified Income

Trust 108,373 0.0310,124 Herald Investment Trust 53,404 0.0240,684 HSBC Infrastructure 46,746 0.0234,001 Impax Asian Environmental

Markets Trust 36,381 0.012,675 Impax Asian Environmental

Markets Trust (Subscription shares) 575 —

34,136 ING Global Real Estate 31,576 0.0194,334 Invista European Real Estate

Trust 30,659 0.015,923 JPMorgan American Investment

Trust 52,300 0.028,844 JPMorgan Claverhouse

Investment Trust 39,687 0.019,558 JPMorgan Emerging Markets

Investment Trust 56,105 0.022,000 JPMorgan European Fledgeling

Investment Trust 18,280 0.0121,238 JPMorgan Japanese Investment

Trust 38,016 0.017,723 JPMorgan Mercantile

Investment Trust 81,941 0.034,553 JPMorgan Overseas Investment

Trust 38,723 0.0112,348 Law Debenture 45,984 0.0112,127 Martin Currie Pacific Trust 33,016 0.0111,539 Merchants Trust 46,318 0.0115,437 Merrill Lynch World Mining Trust 117,553 0.0425,491 Monks Investment Trust 89,677 0.038,320 Montanaro UK Smaller

Companies Investment Trust 30,597 0.01


16


Equity Investment Instruments — (cont.)

28,339 Murray Income Trust 183,778 0.0622,345 Murray International Trust 212,277 0.0724,114 Perpetual Income & Growth

Investment Trust 64,216 0.0215,890 Polar Capital Technology Trust 57,077 0.024,106 Polar Capital Technology Trust

(Subcription shares) 719 — 13,462 RIT Capital Partners 177,025 0.0618,675 Scottish American Investment

Trust 44,493 0.0113,220 Scottish Investment Trust 67,091 0.0222,646 Scottish Mortgage & Trust 171,430 0.0520,387 Scottish Oriental Smaller

Companies Trust 124,870 0.04152,713 Securities Trust of Scotland* — — 13,940 Standard Life European Private

Equity Trust 22,548 0.0115,170 Standard Life UK Smaller

Companies Trust 36,067 0.0124,668 SVG Capital 65,346 0.0213,405 Temple Bar Investment Trust 122,321 0.0428,400 Templeton Emerging Markets

Investment Trust 187,582 0.068,782 TR European Growth Trust 35,655 0.01

56,787 UK Commercial Property Trust 45,458 0.0117,595 Witan Investment Trust 90,790 0.0315,981 Witan Pacific Investment Trust 34,040 0.01

4,945,594 1.54

Software & Computer Services — 0.46% (0.45%)

13,672 Alterian 12,469 — 19,256 Autonomy 329,085 0.104,471 Aveva Group 78,198 0.02

11,571 Computacenter 54,060 0.026,816 Dicom Group 33,644 0.01

22,502 Emblaze 13,389 — 2,785 Fidessa Group 55,700 0.02

128,075 Innovation Group 28,817 0.0147,015 Invensys 145,794 0.05

116,890 LogicaCMG 138,398 0.0438,118 Micro Focus International 118,090 0.0428,190 Misys 105,684 0.0314,748 RM 21,414 0.0187,751 Sage Group 243,158 0.083,966 SDL 27,286 0.01

12,161 Telecity 63,420 0.02

1,468,606 0.46

Technology Hardware & Equipment — 0.25% (0.24%)

99,905 ARM Holdings 568,959 0.1851,116 BATM Advanced

Communications 11,348 — 15,677 CSR 45,761 0.0116,005 Imagination Technologies 62,596 0.02


17


Technology Hardware & Equipment — (cont.)

20,457 Psion 15,343 0.0156,329 Spirent Communications 76,438 0.0210,563 Wolfson Microelectronics 17,344 0.01

797,789 0.25

FIXED INTEREST — 24.45% (21.59%)

Government Stocks — 3.84% (3.08%)

£400,000 Italy (Republic of) 6% 04/08/2028 389,428 0.12£84,275 Treasury 3.25% 07/12/2011 85,194 0.03

£660,000 Treasury 5.25% 07/06/2012 687,225 0.21£2,335,000 Treasury 4.5% 07/03/2013 2,479,377 0.77£1,795,000 Treasury 8% 27/09/2013 2,075,411 0.64£2,080,000 Treasury 2.25% 07/03/2014 2,148,213 0.67£2,300,000 Treasury 5% 07/09/2014 2,566,780 0.80£150,000 Treasury 2.75% 22/01/2015 156,810 0.05£225,000 Treasury 4.75% 07/09/2015 253,276 0.08£885,000 Treasury 2% 22/01/2016 892,871 0.28£556,204 Treasury 4% 07/09/2016 612,149 0.19

12,346,734 3.84

Corporate Bonds — 20.61% (18.51%)

£350,000 Abbey National 4.125% 14/09/2017 340,360 0.11

£350,000 Abbey National 5.125% 14/04/2021 362,872 0.11

£100,000 AIG Sunamerica 5.625% 01/02/2012 101,657 0.03

£200,000 America Movil 5.75% 28/06/2030 208,437 0.06

£450,000 American Express Credit 5.375% 01/10/2014 483,025 0.15

£200,000 American International Group 5.75% 15/03/2017 166,250 0.05

£150,000 American International Group 5% 26/04/2023 132,534 0.04

£350,000 Anglian Water 6.293% 30/07/2030 390,844 0.12

£200,000 Anheuser-Busch Inbev 6.5% 23/06/2017 230,901 0.07

£300,000 Annington Finance 5.3236% 10/01/2023 305,193 0.10

£100,000 ASIF III 5% 18/12/2018 99,102 0.03£200,000 Aspire Defence Finance

4.674% 31/03/2040 177,890 0.06£500,000 AT&T 5.875% 28/04/2017 557,907 0.17£100,000 AT&T 7% 30/04/2040 120,930 0.04£100,000 Aviva 5.9021% 27/07/2020 79,715 0.02£100,000 Aviva 6.625% 03/06/2041 97,667 0.03£50,000 Aviva 6.875% 20/05/2058 47,247 0.01

£290,000 Aviva 6.125% Open Maturity 238,600 0.07£150,000 AXA 6.772% 16/10/2019 126,188 0.04£200,000 AXA 6.6862% Open Maturity 164,697 0.05


18


Corporate Bonds — (cont.)£100,000 B.A.T. International Finance

7.25% 12/03/2024 118,071 0.04£100,000 B.A.T. International Finance

6% 24/11/2034 104,638 0.03£50,000 B.A.T. International Finance

5.75% 05/07/2040 50,613 0.02£50,000 BAA Funding 6.25% 10/09/2018 52,834 0.02

£150,000 BAA Funding 6.75% 03/12/2026 166,386 0.05£350,000 BAA Funding 6.45% 10/12/2033 367,948 0.11£100,000 BAA Funding 5.875% 05/13/2041 96,960 0.03£250,000 BAC Capital Trust

5.25% 10/08/2035 190,859 0.06£1,100,000 Bank Nederlandse Gemeenten

4.375% 14/12/2012 1,147,735 0.36£100,000 Bank of America Corporation

6.125% 15/09/2021 104,050 0.03£150,000 Bank of America Corporation

7% 31/07/2028 158,691 0.05£470,000 Barclays Bank 10% 21/05/2021 561,801 0.17£350,000 Barclays Bank 5.75% 17/08/2021 358,868 0.11£300,000 Barclays Bank 5.75% 14/09/2026 258,979 0.08£300,000 Barclays Bank

6.3688% Open Maturity 261,154 0.08£200,000 Barclays Bank

6.875% Open Maturity 192,010 0.06£325,000 Barclays Bank

14% Open Maturity 397,168 0.12£200,000 BG Energy Capital

5.125% 01/12/2025 204,120 0.06£100,000 Birmingham Airport

6.25% 22/02/2021 105,695 0.03£250,000 BMW Finance 5.25% 21/11/2013 269,220 0.08£300,000 BMW (UK) Capital

5% 02/10/2017 327,904 0.10£78,000 BNP Paribas 5.75% 24/01/2022 78,474 0.02

£150,000 BNP Paribas 5.954% Open Maturity 135,418 0.04

£489,010 British Broadcasting Corporation5.0636% 10/08/2033 483,638 0.15

£250,000 British Sky Broadcasting 6% 21/05/2027 260,138 0.08

£425,000 Broadgate Financing 4.821% 05/07/2036 388,884 0.12

£200,000 BT Group 7.5% 07/12/2016 243,635 0.08£350,000 BT Group 6.625% 23/06/2017 395,150 0.12£150,000 BT Group 5.75% 07/12/2028 147,346 0.05£150,000 BUPA Finance 7.5% 04/07/2016 169,103 0.05£100,000 Cadbury Schweppes

5.375% 11/12/2014 108,482 0.03£165,001 Canary Wharf Finance

6.455% 22/10/2033 189,492 0.06£100,000 Centrica 7% 19/09/2018 119,094 0.04£100,000 Centrica 6.375% 10/03/2022 113,256 0.04£100,000 Centrica 6.4% 04/09/2026 113,506 0.04£160,000 Centrica 7% 19/09/2033 194,003 0.06£250,000 Citigroup 4.5% 03/03/2031 179,302 0.06£100,000 Citigroup 6.8% 25/06/2038 105,424 0.03£275,000 Citigroup 7.375% 01/09/2039 309,460 0.10


19


Corporate Bonds — (cont.)£300,000 CNP Assurances

7.375% 30/09/2041 305,620 0.10£50,000 Comcast Corporation

5.5% 23/11/2029 50,087 0.02£130,000 Commerzbank

6.625% 30/08/2019 126,764 0.04£100,000 The Co-operative Group

6.25% 07/08/2026 100,720 0.03£400,000 Coventry Building Society

4.625% 19/04/2018 413,433 0.13£100,000 Credit Agricole

8.125% Open Maturity 97,043 0.03£50,000 Deutsche Telekom

6.5% 08/04/2022 56,436 0.02£300,000 Deutsche Telekom

8.875% 27/11/2028 412,257 0.13£200,000 DNB NORBank 7.25% 23/06/2020 223,281 0.07£200,000 DNB NORBank

6.0116% Open Maturity 196,129 0.06£50,000 Dong Energy 5.75% 09/04/2040 51,628 0.02

£200,000 E.ON International Finance 6% 30/10/2019 227,830 0.07

£100,000 E.ON International Finance 6.375% 07/06/2032 112,554 0.04

£150,000 E.ON International Finance 5.875% 30/10/2037 159,416 0.05

£300,000 East Japan Railway 5.25% 22/04/2033 305,006 0.10

£50,000 EDF Energy Networks 5.125% 11/11/2016 54,480 0.02



£50,000 EDP Finance 8.625% 04/01/2024 44,599 0.01£400,000 Electricite de France

6.25% 30/05/2028 449,104 0.14£500,000 Electricite de France

6.125% 02/06/2034 550,420 0.17£150,000 Enel Finance 5.625% 14/08/2024 142,009 0.04£150,000 Enel Finance 5.75% 14/09/2040 132,170 0.04£100,000 Enel Societa per Azioni

6.25% 20/06/2019 105,368 0.03£300,000 Enel Societa per Azioni

5.75% 22/06/2037 267,049 0.08£290,000 Equity Release Funding No 1

5.7% 26/02/2031 314,150 0.10£200,000 European Investment Bank



6% 07/12/2028 240,913 0.07£110,000 European Investment Bank


5% 15/04/2039 466,710 0.15


20


Corporate Bonds — (cont.)£200,000 European Investment Bank

4.500% 07/03/2044 206,039 0.06£100,000 Eversholt Funding

6.359% 02/12/2025 101,714 0.03£140,372 Exchequer Partnership

5.396% 13/07/2036 144,652 0.05£350,000 Experian Finance

4.75% 23/11/2018 364,773 0.11£50,000 France Telecom 5% 12/05/2016 53,938 0.02

£200,000 France Telecom 5.25% 05/12/2025 202,061 0.06

£100,000 France Telecom 8.125% 20/11/2028 131,268 0.04

£50,000 France Telecom 5.375% 22/11/2050 49,249 0.02

£300,000 Freshwater Finance 5.182% 20/04/2035 285,493 0.09

£50,000 Friends Provident 6.875% Open Maturity 40,950 0.01

£100,000 Gatwick Funding 6.125% 02/03/2026 102,801 0.03

£100,000 Gatwick Funding 6.5% 02/03/2041 102,325 0.03

£100,000 Gaz Capital 6.58% 31/10/2013 106,391 0.03£50,000 GDF Suez 6.125% 11/02/2021 57,336 0.02

£100,000 GDF Suez 5% 01/10/2060 94,726 0.03£700,000 GE Capital UK Funding

5.625% 12/12/2014 765,500 0.24£450,000 GE Capital UK Funding




4.875%18/09/2037 165,160 0.05£150,000 GE Capital UK Funding


8% 14/01/2039 388,803 0.12£200,000 GE Capital UK Funding

5.5% 15/09/2066 194,410 0.06£160,000 General Electric Capital

5.5% 15/09/2066 150,640 0.05£250,000 Generali Finance

6.214% Open Maturity 205,011 0.06£50,000 Genfinance 6.064% 21/12/2039 53,515 0.02

£100,000 GlaxoSmithKline Capital 6.375% 03/09/2039 116,728 0.04

£180,000 GlaxoSmithKline Capital 5.25% 10/04/2042 180,882 0.06

£150,000 Goldman Sachs 5.5% 12/10/2021 141,426 0.04

£150,000 Goldman Sachs 7.25% 10/04/2028 163,940 0.05

£50,000 Goldman Sachs 6.875% 18/01/2038 47,879 0.02


21


Corporate Bonds — (cont.)£225,591 Granite Master Issuer Floating

Rate 214,312 0.07£75,000 Great Rolling Stock

6.25% 27/07/2020 78,830 0.03£50,000 Great Rolling Stock

6.875% 27/07/2035 52,868 0.02£440,000 Hammerson 5.25% 15/12/2016 465,652 0.15£30,000 Hammerson 6% 23/02/2026 30,739 0.01

£200,000 Hartford Life Institutional Fund 5.375% 17/01/2012 202,442 0.06

£300,000 HBOS 6.375% 16/08/2019 285,690 0.09£178,808 Highbury Finance

7.017% 20/03/2023 199,011 0.06£400,000 HSBC 4.75% 29/09/2020 404,394 0.13£150,000 HSBC 6.5% 20/05/2024 167,847 0.05£100,000 HSBC 6.75% 11/09/2028 105,697 0.03£210,000 HSBC 5.375% 04/11/2030 196,007 0.06£320,000 HSBC 5.375% 22/08/2033 291,448 0.09£250,000 HSBC 7% 07/04/2038 270,770 0.08£100,000 HSBC 6% 29/03/2040 95,889 0.03£150,000 Hutchison Ports

6.75% 07/12/2015 170,218 0.05£300,000 Hutchison Whampoa

5.625% 24/11/2026 310,806 0.10£200,000 Hyde Housing Associate

5.125% 23/07/2040 196,840 0.06£250,000 Imperial Tobacco

6.875% 13/06/2012 260,958 0.08£250,000 Imperial Tobacco 9% 17/02/2022 325,298 0.10£300,000 ING Bank 5.375% 15/04/2021 305,144 0.10£375,000 ING Bank 6.875% 29/05/2023 392,492 0.12£300,000 Intercontinental Hotels

6% 09/12/2016 320,892 0.10£150,000 IPIC GMTN 6.875% 14/03/2026 153,750 0.05£400,000 JPMorgan Chase

6.125% 30/05/2017 399,352 0.12£650,000 KFW International Finance



5.75% 07/06/2032 450,580 0.14£100,000 Koninklijke 6% 29/05/2019 110,843 0.03£50,000 Koninklijke KPN

5.75% 17/09/2029 50,733 0.02£500,000 Land Securities Capital Markets




5.125% 07/02/2036 48,831 0.02£250,000 LCR Finance 4.5% 07/12/2028 258,635 0.08£150,000 Legal & General

6.385% 02/05/2049 132,137 0.04£200,000 Lend Lease Europe Financial

6.125% 12/10/2021 195,686 0.06


22


Corporate Bonds — (cont.)£130,000 Lloyds TSB Bank

6.9625% 29/05/2020 129,321 0.04£588,000 Lloyds TSB Bank 7.5% 15/04/2024 630,910 0.20£100,000 Llyods TSB Bank 6% 08/02/2029 106,918 0.03£200,000 Lloyds TSB Bank 6.5% 17/09/2040 183,526 0.06£100,000 London & Quadrant Housing

5.5% 27/01/2040 103,929 0.03£129,849 Longstone Finance

4.791% 19/04/2036 133,569 0.04£350,000 Lunar Funding 5.75% 18/10/2033 370,126 0.12£70,000 Marks & Spencer

5.875% 29/05/2012 72,176 0.02£200,000 Marks & Spencer

5.625% 24/03/2014 213,187 0.07£200,000 Marks & Spencer

6.125% 02/12/2019 212,916 0.07£200,000 Merrill Lynch 7.75% 30/04/2018 227,073 0.07£100,000 Merrill Lynch 8.125% 02/06/2028 106,411 0.03£400,000 Metlife 5.25% 29/06/2020 414,484 0.13£129,183 Mitchells & Butlers Finance

5.574% 15/12/2028 135,968 0.04£100,000 Motability Operations

5.625% 29/11/2030 102,845 0.03£250,000 National Australia Bank



7.125% 12/06/2023 281,842 0.09£200,000 National Express

6.25% 13/01/2017 213,814 0.07£150,000 National Express

6.625% 17/06/2020 158,771 0.05£200,000 National Grid 6.125% 15/04/2014 218,831 0.07£500,000 National Grid 6.375% 03/03/2020 578,839 0.18£170,000 National Grid 7.375% 13/01/2031 212,419 0.07£250,000 National Westminster Bank

6.5% 07/09/2021 236,225 0.07£445,000 Nationwide Building Society

5.625% 09/09/2019 457,097 0.14£170,000 Nationwide Building Society

5.769% Open Maturity 123,520 0.04£275,000 Next 5.375% 26/10/2021 276,095 0.09£200,000 Network Rail Infrastructure

Finance 4.375% 09/12/2030 201,505 0.06£100,000 North British Housing

5.09% 31/07/2024 101,660 0.03£200,000 Northern Electric Finance

5.125% 04/05/2035 190,877 0.06£100,000 Northern Gas Networks

5.875% 08/07/2019 110,269 0.03£225,000 Northern Gas Networks

4.875% 30/06/2027 210,523 0.07£350,000 Northumbrian Water Finance

6% 11/10/2017 397,653 0.12£300,000 Old Mutual 7.125% 19/10/2016 334,029 0.10£200,000 Old Mutual 8% 03/06/2021 204,467 0.06


23


Corporate Bonds — (cont.)£50,000 Permanent Master Issuer

4.805% 15/07/2017 52,510 0.02£120,000 Petroleos Mexicanos

8.25% 02/06/2022 139,694 0.04£450,000 Pfizer 6.5% 03/06/2038 532,459 0.17£50,000 Porterbrook Rail

7.125% 20/10/2026 54,711 0.02£325,000 Prudential 6.125% 19/12/2031 312,130 0.10£294,201 Punch Taverns Finance

7.369% 30/06/2022 271,748 0.08£100,000 QBE Capital Funding II

7.5% 24/05/2041 100,461 0.03£250,000 Rabobank 4% 10/09/2015 262,882 0.08£50,000 Rabobank 5.25% 05/23/2041 49,018 0.02

£100,000 Rabobank 5.375% 03/08/2060 100,101 0.03£200,000 Reseau Ferre de France

4.830% 25/03/2060 209,221 0.07£200,000 Roche Holdings 5.5% 04/03/2015 221,386 0.07£473,000 Rolls-Royce 6.75% 30/04/2019 558,579 0.17£752,000 Royal Bank of Scotland

6.375% 29/04/2014 806,015 0.25£300,000 Royal Bank of Scotland

6.625% 17/09/2018 321,302 0.10£500,000 Royal Bank of Scotland

7.5% 29/04/2024 536,205 0.17£330,000 RWE Finance 6.25% 03/06/2030 357,861 0.11£500,000 Santander Floating Rate

27/07/2019 503,924 0.16£96,218 Sceptre Funding

5.253% 09/02/2027 105,429 0.03£390,000 Scotland Gas Network

4.875% 21/12/2034 352,921 0.11£200,000 Scottish & Southern Energy



5% 01/10/2018 107,328 0.03£250,000 Scottish & Southern Energy


6.25% 27/08/2038 56,058 0.02£250,000 Scottish Power 6.75% 29/05/2023 278,435 0.09£200,000 SDP Finance 5.875% 17/07/2026 203,092 0.06£325,000 Segro 6.75% 23/11/2021^^ 360,817 0.11£200,000 Severn Trent Water

6% 22/01/2018 225,366 0.07£130,000 Siemens

Financieringsmaatschappij 6.125% 14/09/2066 135,413 0.04

£150,000 Silverstone Master 5.063% 21/01/2055 159,660 0.05

£100,000 Skandinaviska Enskilda Banken 6.625% 09/07/2014 110,691 0.03

£85,000 SL Macs 6.546% Open Maturity 74,026 0.02£50,000 SMFG Preferred Capital

10.231% 18/07/2049 58,857 0.02£50,000 SNCF 5.375% 18/03/2027 52,523 0.02



Corporate Bonds — (cont.)£100,000 Société Générale

3.875% 17/12/2015 101,941 0.03£200,000 Société Générale

5.4% 30/01/2018 196,313 0.06£50,000 Société Générale

8.875% 29/06/2018 48,583 0.02£125,000 Societe Generale

5% 20/12/2018 126,968 0.04£100,000 Society of Lloyds

6.875% 17/11/2025 105,676 0.03£400,000 South East Water

5.6577% 30/09/2019 431,039 0.13£100,000 Southern Electric Power

4.625% 20/02/2037 89,233 0.03£550,000 Southern Water 5% 31/03/2021 570,903 0.18£300,000 Standard Chartered Bank

7.75% 03/04/2018 346,989 0.11£450,000 StatoilHydro 6.875% 11/03/2031 552,322 0.17£200,000 Svenska Handelsbanken

6.4611% 29/06/2049 199,999 0.06£250,000 Svenska Handelsbanken

5.5% Open Maturity 247,500 0.08£50,000 Swiss Reinsurance

6.3024% Open Maturity 43,027 0.01£150,000 Tate & Lyle 6.75% 25/11/2019 169,750 0.05£100,000 TDC 5.625% 23/02/2023 105,282 0.03£250,000 Telecom Italia 7.375% 15/12/2017 263,041 0.08£200,000 Telecom Italia 6.375% 24/06/2019 196,365 0.06£140,000 Telefonica 5.375% 02/02/2026 127,366 0.04£200,000 Telereal Securitisation

5.9478% 10/12/2031 214,112 0.07£236,739 Telereal Securitisation

5.3887% 10/12/2033 249,382 0.08£100,000 Temasek Financial I

5.125% 26/07/2040 102,169 0.03£450,000 Tesco 6.125% 24/02/2022 499,681 0.16£165,000 Tesco 5% 24/03/2023 167,734 0.05£100,000 Tesco 5.5% 13/01/2033 102,473 0.03£50,000 Tesco 5.2% 05/03/2057 49,666 0.02

£174,615 Tesco Property Finance 5.744% 13/04/2040 177,095 0.06

£174,186 Tesco Property Finance 5.8006% 13/10/2040 177,050 0.06

£150,000 Thames Water Utilities Cayman Finance 5.375% 21/07/2025 157,098 0.05



£150,000 THFC Funding No 2 6.35% 08/07/2039 174,999 0.05

£100,000 Time Warner Cable 5.75% 02/06/2031 99,859 0.03

£50,000 Total Capital 4.25% 08/12/2017 53,651 0.02£250,000 Total Capital 3.875% 14/12/2018 257,490 0.08£175,000 Toyota Motor Credit

Corporation 4% 07/12/2017 181,109 0.06£350,000 Unicredito Italiano

5% 01/02/2016 297,500 0.09£125,000 Unilever 4.75% 16/06/2017 136,859 0.04£100,000 Unique Pub Finance

6.542% 30/03/2021 85,450 0.03

24


25



Corporate Bonds — (cont.)£108,000 Unique Pub Finance

5.659% 30/06/2027 81,962 0.03£150,000 Vattenfall 6.875% 15/04/2039 180,909 0.06£100,000 Vattenfall Treasury

6.125% 16/12/2019 115,026 0.04£350,000 Verizon Wireless Capital

8.875% 18/12/2018 458,384 0.14£300,000 Virgin Media Secure

5.5% 15/01/2021 296,706 0.09£50,000 Vodafone Group

4.625% 08/09/2014 53,215 0.02£175,000 Vodafone Group

5.9% 26/11/2032 185,764 0.06£150,000 Wachovia 4.875% 29/11/2035 121,854 0.04£650,000 Wal-Mart Stores

5.625% 27/03/2034 700,960 0.22£595,000 Wal-Mart Stores

5.25% 28/09/2035 607,955 0.19£100,000 Wells Fargo & Co

4.625% 02/11/2035 87,903 0.03£260,000 Wessex Water Services Finance

5.375% 10/03/2028 266,402 0.08£125,000 Western Power Distribution East

5.25% 17/01/2023 127,100 0.04£200,000 Western Power South Wales

5.75% 23/03/2040 200,007 0.06£100,000 Western Power South West

5.75% 23/03/2040 100,595 0.03£336,828 White City Property

5.1202% 17/04/2035 334,480 0.10£300,000 WPP 6% 04/04/2017 330,247 0.10£150,000 WPP 6.375% 06/11/2020 165,326 0.05£400,000 Xstrata Canada Financials

7.375% 27/05/2020 459,084 0.14£100,000 Yorkshire Water 6% 21/08/2019 113,012 0.04£100,000 Yorkshire Water

6.375% 19/08/2039 114,984 0.04£200,000 Zurich Finance

6.625% Open Maturity 193,916 0.06

66,266,232 20.61

FUTURES — 0.00% (0.00%)14 FTSE 100 Index Future

Expiry September 2011 17,730 —

Portfolio of investments 320,617,943 99.70

Net other assets 964,720 0.30

Net assets £321,582,663 100.00%

These are delisted securities and have been valued at the Manager's bestassessment of their fair value.

The value of fixed interest securities that are unrated represents 0.11% ofthe net assets of the Trust.

Total purchases for the period: £43,467,973.Total sales for the period: £46,395,011.

*

^^

26


The portfolio is analysed as follows:

16/07/11 16/01/11Market % of % ofValue Net Net

£ Assets Assets

Equities 241,987,247 75.25 76.33

Corporate Bonds 66,266,232 20.61 18.51

Government Stocks 12,346,734 3.84 3.08

Futures 17,730 — —

Portfolio of investments 320,617,943 99.70 97.92

Net other assets 964,720 0.30 2.08

Net assets £321,582,663 100.00% 100.00%

Statement of Total Returnfor the period ended 16 July 2011

16/07/11 16/07/10

£ £ £ £

Income

Net capital losses (1,203,825) (11,776,659)

Revenue 7,493,428 7,438,105

Expenses (1,925,583) (1,870,230)

Finance costs: Interest (292) —

Net revenue before taxation 5,567,553 5,567,875

Taxation (81,498) (147,224)

Net revenue after taxation for the period 5,486,055 5,420,651

Total return before distributions 4,282,230 (6,356,008)

Finance costs: Distributions (6,805,029) (6,700,364)

Change in net assets attributable to Unitholders from investment activities £(2,522,799) £(13,056,372)

Statement of Change in Net Assets attributable toUnitholders for the period ended 16 July 2011

16/07/11 16/07/10

£ £ £ £

Opening net assetsattributable to Unitholders 331,645,004 329,369,427

Amounts received on creation of units 664,241 671,616

Amounts paid on cancellation of units (8,272,749) (7,559,596)

(7,608,508) (6,887,980)

Stamp Duty Reserve Tax (5,122) (5,578)

Change in net assets attributable to Unitholders from investment activities (2,522,799) (13,056,372)

Unclaimed distributions 74,088 84,133

Closing net assets attributable to Unitholders £321,582,663 £309,503,630

The difference between the opening net assets and thecomparative closing net assets is the movement in the secondhalf of the year.

27

Financial Statements

Balance Sheet as at 16 July 2011

16/07/11 16/01/11

£ £ £ £

ASSETS

Investment assets 320,617,943 324,740,371

Debtors 2,810,294 2,240,040

Cash and bank balances 5,425,772 10,266,720

Amount held at broker houses 139,914 162,160

Total other assets 8,375,980 12,668,920

Total assets 328,993,923 337,409,291

LIABILITIES

IInvestment liabilities — —

Creditors (688,400) (799,100)

Distribution payable on distribution units (6,722,860) (4,965,187)

Total other liabilities (7,411,260) (5,764,287)

Total liabilities (7,411,260) (5,764,287)

Net assets attributable to Unitholders £321,582,663 £331,645,004

28

Financial Statements continued

29

1. Accounting policies

(a) Changes to accounting policiesThe financial statements have been prepared under thehistorical cost convention, as modified by the revaluation ofinvestments, and in accordance with the Statement ofRecommended Practice for Authorised Funds issued by theIMA in October 2010 (‘the IMA SORP 2010’).

The financial statements have been prepared on the basis ofthe accounting policies set out in the most recent annualfinancial statement (16 January 2011).

As at 16 July 2010, the financial statements were prepared inaccordance with the Statement of Recommended Practice forAuthorised Funds issued by the IMA in November 2008.

There has been no impact on the financial statementsdisclosure for the period.

Notes to the Financial Statements

30

Trust Facts

Distribution InformationThe distribution payable on 15 September 2011 is 15.6801p netper unit.

Total Expense Ratio

16 Jul 11 1.17% 16 Jan 11 1.17%

The Total Expense Ratio is the ratio of the Trust's operatingcosts (excluding overdraft interest) to the average net assets ofthe Trust.

31

Performance Record

Net Asset ValuesNet Asset Net Asset Number Of

Accounting Value Of Value Per UnitsDate Trust Unit In Issue

16 Jan 09 £280,611,537 596.59p 47,035,586

16 Jan 10 £329,369,427 723.46p 45,527,011

16 Jan 11 £331,645,004 755.78p 43,881,364

16 Jul 11 £321,582,663 750.05p 42,875,072

Unit Price Range and Net RevenueHighest Lowest Net

Year Offer Bid Revenue

Distribution Units

2006 925.60p 800.20p 27.7054p2007 959.90p 813.20p 29.6649p2008 915.10p 559.10p 34.6259p2009 764.70p 512.60p 30.5794p2010 813.70p 667.00p 27.4243p2011(1) 831.10p 733.00p 26.9951p

(1) The above table shows highest offer and lowest bid prices to16 July 2011 and the net revenue per unit to 15 September 2011.

Past performance is not a guide to future performance.

The price of units and any income from them may go down aswell as up.

32

General Information

ConstitutionLaunch date: 25 October 1964Period end dates for distributions: 16 January, 16 JulyDistribution dates: 15 March, 15 SeptemberMinimum initial lump suminvestment: £500Minimum monthly contributions: £50Valuation point: 12 noonManagement charge: Annual 1%Initial charge: 5.25%

Pricing and DealingThe prices are published on the internet atwww.legalandgeneral.com/investments/fund-information/daily-fund-prices immediately after they become available.

Dealing in units takes place on a forward pricing basis, from8:30am to 6:00pm, Monday to Friday.

Buying and Selling UnitsUnits may be bought on any business day from the Manager orthrough a financial adviser by telephoning or by completing anapplication form. Units may normally be sold back to theManager on any business day at the bid price calculated at thefollowing valuation point.

ISA StatusThis Trust may be held within this tax advantaged savingsarrangement. The favourable tax treatment of ISAs may not bemaintained. For full written information please contact yourusual financial adviser or ring 0370 050 0955.

Call charges will vary. We may record and monitor calls.

Stamp Duty Reserve TaxStamp Duty Reserve Tax suffered on the surrender of unitswhere applicable, has been charged against the capital assets ofthe Trust.

Prospectus and Manager’s ReportsThe Manager will send to all persons on the Unitholder Registerannual and interim short form reports.

Copies of the Prospectus and the most recent annual or interimreports are available free of charge by telephoning 0370 050 0955 or by writing to the Manager.

Do you have difficulty in reading information in print becauseof a disability? If so, we can help. We are able to produceinformation for our clients in large print and braille. If youwould like to discuss your particular requirements, pleasecontact us on 0370 050 0955.

Call charges will vary. We may record and monitor calls.

33

General Information continued

EU Savings DirectiveThe Trust has been reviewed against the requirements of theDirective 2003/48/EC on taxation of savings in the form ofinterest payments (ESD), following the HM Revenue & Customs’debt investment reporting guidance notes.

Under the Directive, information is collected about the paymentof distributions to residents in certain other countries and isreported to HM Revenue & Customs to be exchanged with taxauthorities in those countries.

The Trust falls within the 25% debt investment reportingthreshold. This means that details of all distributions andredemption proceeds paid to non UK investors will be reportedby Legal & General (Unit Trust Managers) Limited to HM Revenue & Customs to be exchanged with the relevant tax authorities.

34

ManagerLegal & General (Unit Trust Managers) LimitedRegistered in England No. 01009418 Registered office:One Coleman Street, London EC2R 5AATelephone: 0370 050 3350Authorised and regulated by the Financial Services Authority

Directors of the ManagerM. B. BoardmanS. C. EllisM. J. GregoryS. R. PistellS. D. Thomas

SecretaryA. Fairhurst

RegistrarLegal & General (Portfolio Management Services) LimitedP.O. Box 6080Wolverhampton WV1 9RBAuthorised and regulated by the Financial Services Authority

Dealing: 0370 050 0956Enquiries: 0370 050 0955Registration: 0370 050 0955Call charges will vary. We may record and monitor calls.

TrusteeThe Royal Bank of Scotland PlcTrustee and Depositary ServicesGogarburn P.O. Box 1000 Edinburgh EH12 1HQ Authorised and regulated by the Financial Services Authority

Independent AuditorsPricewaterhouseCoopers LLP7 More London RiversideLondon SE1 2RT

Investment AdviserBlackRock Advisors (UK) Limited33 King William Street London EC4R 9AS Authorised and regulated by the Financial Services Authority

General Information continued

Authorised and regulated by the Financial Services Authority

Legal & General (Unit Trust Managers) LimitedRegistered in England No. 01009418Registered office:One Coleman Street, London EC2R 5AAwww.legalandgeneral.com

legal&general (barclays) combinedincome trust ...€¦ · central bank targets in the eurozone...

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