Legal&General PacificIndexTrust InterimManager’sReport … · 2011. 11. 24. · Manager’s Investment Report 2 Authorised Status 5 Directors’ Statement 5 Portfolio Statement

Legal & General Pacific Index Trust

Interim Manager’s Reportfor the period ended25 September 2010(Unaudited)

Distribution Number 11

1

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 Assetsattributable to Unitholders 17

Balance Sheet 18

Notes to the Financial Statements 19

Trust Facts 20

Performance Record 21

General Information 23

Contents

2

Investment Objective and PolicyThe investment objective of this Trust is to track the capitalperformance of the stock markets of the Pacific region, asrepresented by the FTSE World Asia Pacific (excluding Japan)Index, by investment in a representative sample of stocksselected from all economic sectors.

Securities in the FTSE World Asia Pacific (excluding Japan) Indexwill be held with weightings generally proportionate to theircompany’s market capitalisation.

From time to time non-index constituents may be held as aresult of a corporate action and these holdings will be sold ortransferred as soon as reasonably practical.

Manager’s Investment ReportDuring the period under review, the capital only bid price of theTrust’s R-Class distribution units fell by 0.96%.

It should be noted that the Trust’s units are priced daily usingthe prevailing prices and exchange rates at midday, while thepublished Index, the FTSE World Asia Pacific (excluding Japan)Index, is based on close of business prices and exchange rates.However, by way of comparison during the period under reviewthe Index (Sterling adjusted) fell by 1.73% (Source: Bloomberg).

Past performance is not a guide to future performance.

The value of investments and income from them may go downas well as up.

Exchange rate changes may cause the value of any overseasinvestments to rise or fall.

The FTSE World Asia Pacific (excluding Japan) Index is calculated byFTSE International Limited (“FTSE”). FTSE does not sponsor, endorseor promote this product.

All copyright in the index values and constituent list belongs toFTSE. Legal & General has obtained full licence from FTSE to usesuch copyright in the creation of this product.

“FTSE™”, “FT-SE®” and “Footsie®” are trade marks of theLondon Stock Exchange Plc and The Financial Times Limited andare used by FTSE International Limited (“FTSE”) under licence.

Market/Economic ReviewIn economic terms, over the first few months of the reviewperiod, there were a number of destabilising events for investorsto absorb, including the Dubai and Greek debt crises and weakeconomic indicators out of the US. Healthy export demand,however, driven by restocking, helped underpin the ongoingeconomic recovery in Asia. This growth has proved so strongthat a number of the region's policy makers have moved swiftlyfrom wholesale stimulation efforts into a tightening phase withbarely a pause in between. Australia’s Reserve Bank has beenthe most aggressive, lifting interest rates six times in eightmonths, taking rates from a low of 3% to 4.5% by May 2010.This was pushed through as a resurgent Resources sector and

Manager’s Investment Report

infrastructure investment rapidly absorbed the slack in thelabour market. In China, administrative measures have beenused to rein back demand in the property market as residentialprices soared. These were coupled with increases in the banks’reserve requirement ratios. Ultimately, Malaysia,Taiwan,Thailandand Singapore have all followed suit and started lifting rates orimplementing other cooling measures whilst westerngovernments have remained nervous about their ability tomaintain even weak growth.

Key events during the review period also included the move byChina to de-peg their currency, the Renminbi, from theUS Dollar. Following growing trade tensions and ahead of apotentially disruptive accusation of currency manipulation bythe US, China shifted policy to allow a wider move of thecurrency and a likely gradual appreciation. The long awaitedEconomic Cooperation Framework Agreement was alsoeventually signed by both China and Taiwan. This agreementshould lead to greater cross-border investment as well asintensified trade flow in the future, as trade tariffs are reduced.However, the products included were only a fraction of‘cross straits’ trade so this will remain a long term project.

Looking at the performance of regional stock markets, despitethe positive growth, China remained relatively weak, asconcerns mounted that tightening would be pushed throughtoo fast. Australia lagged, as political issues came to the fore. InJune 2010, the Prime Minister, Kevin Rudd, was unceremoniouslyousted having lost popularity after proposing a draconian tax onresources companies. His deputy, Julia Gillard, took his placeand quickly moderated the measures in an attempt to bolsterthe party’s chances in the pending general election.

Particularly strong markets over the review period includedthose in South East Asia, where there were positive returns fromPhilippines, Indonesia,Thailand and Malaysia. Strong economicgrowth combined with positive earnings revisions and lowownership helped drive these markets higher.

Trust ReviewThere were no additions or deletions to the Trust in theJune 2010 quarterly Index review. The largest Index changeswere share capital increases in Belle International and TencentHoldings. The quarterly Index review in September 2010resulted in a number of share capital changes, with the largestincreases in Genting International and Yue Yuen IndustrialHoldings and the largest decreases in Fortescue Metals Groupand CSL.

Outside the quarterly reviews, companies continued tostrengthen balance sheets by raising more capital. Noteworthyin Australia,Transurban Group raised AUD$ 710 million whichfunded the acquisition of the Lane Cove Tunnel for

Manager’s Investment Report continued

3

4

Manager’s Investment Report continued

AUD $630.5 million and to increase capital for developmentopportunities. CFS Retail Property Trust raised AUD $540 millionto acquire four retail outlet centres in Australia and Lihir Goldwas acquired by Newcrest Mining for a cash and stock offer.

In Hong Kong, China High Speed Transmission Equipment raisedfunds via a placement to develop technologies and productionfacilities. In Singapore, Parkway Holdings was acquired byKhazanah Nasional for SGD $3.5 billion and was deleted fromthe Index.

In Korea, Samsung Life Insurance was added to the Indexfollowing an initial public offering to raise approximatelyKRW 4.9 trillion and Samsung Digital Imaging was acquired bySamsung Electronics.

OutlookWhilst the Asian economies continue to grow, risks remain thatrenewed weakness in the US or Europe could provide anothershock to the region. As austerity measures are implemented bywestern governments, local consumer demand may again comeunder pressure which could roll through to export demandfrom Asia. A recurrence of sovereign (Government) debtconcerns in peripheral Euro region countries may also lead torising risk aversion, which could lead to a withdrawal of capitalfrom equities overall. However, with western interest ratesbeing maintained at historic lows and a return of quantitativeeasing possible, these low rates will continue to be fed intothose countries with rigid exchange rates, potentially promotingasset inflation there. We also doubt that Asian policy makerswill be overly aggressive in tightening policy given the potentialfor renewed weak outcomes in western markets. In contrast, theimproved conditions and previously bolstered balance sheets ofAsian companies are also leading to a renewed flow of mergersand acquisitions proposals being made. China remains keen tosecure natural resource assets and there remain a number ofsituations where industry consolidation remains likely.

Legal & General Investment Management Limited(Investment Adviser)21 October 2010

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) Limited11 November 2010

5

Authorised Status

6

Portfolio Statement as at 25 September 2010

All investments are in ordinary shares unless otherwise stated.The percentages in brackets show the equivalent country holdingsat 25 March 2010.

Holding/ Market % ofNominal Value NetValue Investment £ Assets

AFRICA — 0.15% (0.15%)

South Africa — 0.15% (0.15%)4,544,809 Golden Agri-Resources 1,255,809 0.15

ASIA — 59.25% (56.62%)

China — 0.26% (0.16%)998,000 Fosun International 507,696 0.06241,150 Golden Eagle Retail 412,548 0.05

4,202,518 Renhe Commercial Holdings 496,539 0.063,230,428 SinoPac Financial Holdings 767,296 0.09

2,184,079 0.26

Hong Kong — 13.82% (13.57%)694,000 Agile Property Holdings 531,848 0.0699,600 ASM Pacific Technology 556,120 0.07

1,004,975 Bank of East Asia 2,688,155 0.332,093,500 BOC Hong Kong Holdings 4,019,483 0.49218,000 Cafe de Coral Holdings 387,254 0.05780,000 Cathay Pacific Airways 1,343,988 0.16

1,654,210 Chaoda Modern Agriculture 895,810 0.11865,300 Cheung Kong Holdings 8,029,911 0.98234,000 Cheung Kong Infrastructure 609,594 0.07

1,572,000 China Travel InternationalInvestment 243,779 0.03

895,100 CLP Holdings 4,560,837 0.56144,400 Dah Sing Banking Group 171,797 0.0262,400 Dah Sing Financial Group 296,189 0.04

626,035 Esprit Holdings 2,170,235 0.261,514,015 First Pacific 882,003 0.11128,000 Fubon Bank 40,645 —

1,266,000 Fushan International Energy 469,519 0.06488,000 Galaxy Entertainment Group 273,077 0.03

3,925,182 GCL Poly Energy Holdings 760,069 0.091,279,600 Global Bio-Chem Technology

Group 131,240 0.025,800,720 GOME Electrical Appliances 1,118,488 0.14161,563 Great Eagle 308,873 0.0464,700 Guoco Group 437,965 0.05

492,000 Hang Lung Group 2,022,480 0.251,011,530 Hang Lung Properties 3,004,476 0.37383,800 Hang Seng Bank 3,586,824 0.44526,557 Henderson Land Development 2,300,628 0.28450,500 Hengan International 2,842,514 0.35

2,671,852 Hong Kong & China Gas 4,253,002 0.52402,464 Hong Kong and Shanghai

Hotels 452,407 0.05792,000 Hong Kong Electric Holdings 3,096,489 0.38531,400 Hong Kong Exchanges

& Clearing 6,448,685 0.79608,700 Hopewell Highway 295,669 0.04373,500 Hopewell Holdings 764,615 0.09

1,580,750 Hutchison Whampoa 8,644,597 1.05

Portfolio Statement


Hong Kong — (cont.)386,979 Hysan Development 900,164 0.11294,564 Industrial And Commercial

Bank of China 690,029 0.08938,550 Johnson Electrical Holdings 280,311 0.03345,494 Kerry Properties 1,203,371 0.15317,500 Kingboard Chemical 1,004,268 0.12257,000 Kowloon Development 180,926 0.02928,000 Lee & Man Paper 430,207 0.05

3,562,000 Lenovo Group 1,385,331 0.171,420,200 Li & Fung 5,074,802 0.62323,000 Melco International

Development 107,864 0.01856,670 MTR 2,017,330 0.25

1,432,599 New World Development 1,709,112 0.21309,786 NWS Holdings 389,914 0.05

2,584,590 PCCW 602,270 0.0711,225,000 Semiconductor Manufacturing

International Corporation 478,929 0.06680,222 Shangri-La Asia 1,005,743 0.12701,500 Shimao Property Holdings 767,830 0.09708,000 Shun Tak Holdings 279,421 0.03

1,199,940 Sino Land 1,516,218 0.18953,000 Sun Hung Kai Properties 9,899,381 1.21445,500 Swire Pacific (A) 3,922,192 0.48604,500 Techtronic Industries 391,340 0.05167,500 Television Broadcasts 544,241 0.07302,000 Texwinca Holdings 215,580 0.03

1,085,585 The Link Real Estate InvestmentTrust 2,035,314 0.25

1,064,000 Tingyi Holding 1,767,861 0.22741,000 TPV Technology 300,349 0.04689,057 Wharf Holdings 2,874,932 0.35403,000 Wheelock & Company 884,525 0.11104,500 Wing Hang Bank 780,260 0.09402,000 Yue Yuen Industrial Holdings 951,597 0.12

113,230,877 13.82

Malaysia — 0.00% (0.00%)51,000 Rekapacific* — —

Singapore — 8.69% (8.02%)409,500 Allgreen Properties 228,272 0.03933,081 Ascendas Real Estate

Investment Trust 973,014 0.12982,620 CapitaCommercial Trust

(Reinvestment Units) 689,411 0.081,538,750 CapitaLand 2,994,768 0.371,280,908 CapitaMall Trust 1,261,862 0.15344,000 City Developments 1,990,329 0.24976,712 ComfortDelGro 722,815 0.09524,000 Cosco Corp (Singapore) 468,365 0.06847,440 DBS Group Holdings 5,725,776 0.70700,700 Fraser and Neave 2,080,945 0.25

3,011,118 Genting International 2,908,465 0.3553,000 Guocoland 58,834 0.0173,185 Haw Par 205,036 0.02

838,000 Hong Kong Land Holdings 3,206,456 0.39

7

Portfolio Statement continued

8


Singapore — (cont.)97,800 Hotel Properties 129,244 0.0269,852 Jardine Cycle & Carriage 1,274,893 0.16

126,000 Jardine Matheson 3,638,734 0.44111,709 Jardine Strategic Holdings 1,890,383 0.23586,500 Keppel 2,542,229 0.31403,111 Keppel Land 778,737 0.09152,162 MobileOne 160,137 0.02519,750 Neptune Orient Lines 507,026 0.06

2,199,452 Noble Group 1,976,497 0.24800,711 Olam International 1,212,066 0.15

1,232,203 Oversea-Chinese BankingCorporation 5,204,886 0.64

357,000 Peoples Food 112,370 0.01458,385 SembCorp Industries 956,005 0.12408,800 SembCorp Marine 768,118 0.0932,416 Shangri-La Asia 47,929 0.0164,000 SIA Engineering 132,555 0.02

294,021 Singapore Airlines 2,288,935 0.28542,000 Singapore Exchange 2,312,876 0.2878,000 Singapore Land 259,757 0.03

858,000 Singapore Post 498,899 0.06769,015 Singapore Press Holdings 1,529,943 0.19747,000 Singapore Technologies

Engineering 1,191,787 0.153,872,189 Singapore Telecommunications 5,824,262 0.71435,000 SMRT 430,622 0.05441,546 StarHub 526,220 0.06257,000 STATS ChipPAC 175,373 0.02569,855 United Overseas Bank 5,071,605 0.62281,859 UOL Group 589,198 0.07136,000 Venture 596,038 0.07117,000 Wheelock Properties 105,140 0.01

1,266,000 Wilmar International 3,747,611 0.46373,786 Wing Tai Holdings 308,952 0.04848,000 Yangzijiang Shipbuilding

Holdings 721,289 0.09285,000 Yanlord Land Group 239,675 0.03

71,264,339 8.69

South Korea — 21.13% (20.56%)2,211 Amorepacific 1,431,779 0.17

88,849 Busan Bank 668,397 0.0842,750 Cheil Communications 310,999 0.0424,770 Cheil Industries 1,365,134 0.1712,836 CJ 616,165 0.072,513 CJ Cheil Jedang 324,777 0.04

1,468,571 Country Garden Holdings 313,292 0.0472,270 Daegu Bank 555,625 0.0717,300 Daelim Industrial 808,521 0.1049,696 Daewoo Engineering

& Construction 297,167 0.0410,571 Daewoo Heavy Industries* — —37,418 Daewoo International 774,355 0.0971,620 Daewoo Securities 965,078 0.1242,840 Daewoo Shipbuilding

& Marine Engineering 632,752 0.0825,230 Daishin Securities 205,097 0.02


9


South Korea — (cont.)4,850 Daishin Securities

(Preference shares) 25,954 —8,106 Daum Communication 334,609 0.04

11,342 DC Chemical 2,115,912 0.2635,200 Dongbu Insurance 720,694 0.0923,540 Dongkuk Steel Mill 328,877 0.0412,950 Doosan 984,914 0.1220,720 Doosan Heavy Industries 950,085 0.1246,215 Doosan Infracore 589,635 0.073,130 Glovis 276,865 0.03

19,876 GS Engineering& Construction 1,032,975 0.13

23,095 GS Holdings 710,234 0.0921,230 Halla Climate Control 225,817 0.0379,864 Hana Financial Group 1,456,895 0.1816,605 Hanjin Heavy Industries

& Construction 320,757 0.0435,054 Hanjin Shipping 611,450 0.0714,378 Hanjin Shipping Holdings 127,181 0.0256,760 Hankook Tire Manufacturing 979,120 0.1234,600 Hanwha Corporation 828,543 0.1032,557 Hanwha Chemical 462,928 0.063,827 Hite Brewery 273,135 0.038,100 Honam Petrochemical 877,197 0.11

199,770 Hynix Semiconductor 2,317,564 0.2825,485 Hynix Semiconductor (GDR) 297,733 0.0417,296 Hyosung 1,110,506 0.1411,342 Hyundai Department Store 825,112 0.1037,490 Hyundai Development 677,702 0.0840,371 Hyundai Engineering

& Construction 1,581,934 0.197,110 Hyundai H&S 42,907 —

28,048 Hyundai Heavy Industries 4,946,536 0.6010,930 Hyundai Hysco 131,319 0.0234,600 Hyundai Merchant Marine 819,962 0.107,200 Hyundai Mipo Dockyard 730,129 0.09

36,361 Hyundai Mobis 5,130,091 0.6382,036 Hyundai Motor 7,279,133 0.8985,486 Hyundai Securities 756,170 0.0921,110 Hyundai Steel 1,355,388 0.1781,540 Industrial Bank of Korea 667,339 0.0882,790 Kangwon Land 1,079,092 0.13

189,199 KB Financial Group 5,328,305 0.651,832 KB Financial Group (ADR) 51,250 0.012,922 KCC 566,050 0.07

144,260 Kia Motors 2,921,814 0.36128,050 Korea Electric Power 2,117,143 0.26128,280 Korea Exchange Bank 968,565 0.12

5,101 Korea Express 166,990 0.0211,520 Korea Gas 292,052 0.0429,684 Korea Investment Holdings 572,585 0.076,822 Korea Zinc 1,067,774 0.13

16,809 Korean Air 681,819 0.0854,111 KT 1,285,323 0.1616,138 KT (ADR) 197,166 0.0228,706 KT&G 1,056,814 0.139,400 KT&G (GDR) 173,284 0.02

42,239 LG 1,934,479 0.24


10


South Korea — (cont.)24,675 LG Chemical 4,446,868 0.5453,315 LG Electronics 2,864,860 0.353,656 LG Hausys 199,275 0.025,820 LG Household & Health Care 1,300,658 0.16

131,417 LG Philips LCD 2,726,879 0.33133,213 LG TeleCom 545,487 0.07

400 Lotte Chilsung Beverage 168,203 0.02600 Lotte Confectionery 437,813 0.05

7,560 Lotte Midopa 61,872 0.014,326 Lotte Shopping 1,081,218 0.13

16 Lotte Shopping (GDR) 198 —16,016 LS Cable 1,019,496 0.126,993 Mirae Asset Securities 225,845 0.038,280 NCsoft Corporation 1,067,814 0.13

23,170 NHN 2,573,063 0.312,310 Nong Shim 281,354 0.033,968 Pacific Corporation 403,476 0.05

43,376 POSCO 12,096,211 1.4815,720 S1 544,945 0.0776,053 Samsung 2,397,517 0.2918,550 Samsung Card 590,910 0.0727,100 Samsung Electro Mechanics 1,754,917 0.2172,760 Samsung Electronics 30,515,934 3.7319,880 Samsung Engineering 1,637,974 0.2011,030 Samsung Fine Chemicals 387,834 0.0523,656 Samsung Fire & Marine 2,659,627 0.32

114,220 Samsung Heavy Industries 1,831,827 0.2230,050 Samsung Life Insurance 1,772,057 0.2217,460 Samsung SDI 1,539,620 0.1931,564 Samsung Securities 1,123,761 0.1426,032 Samsung Techwin 1,585,328 0.19

234,396 Shinhan Financial Group 5,703,353 0.706,892 Shinsegae 2,305,596 0.282,410 Sindo Ricoh 71,192 0.01

23,019 SK 1,401,839 0.1734,275 SK Energy 2,786,242 0.3436,340 SK Networks 210,292 0.0319,143 SK Telecom 1,740,778 0.212,200 SK Telecom (ADR) 23,475 —5,240 SKC 100,787 0.01

42,580 S-Oil 1,605,133 0.2025,689 STX 375,182 0.0548,500 STX Pan Ocean 309,514 0.0422,920 STX Shipbuilding 229,898 0.031,623 Woongjin 9,705 —

37,860 Woongjin Coway 941,037 0.11204,350 Woori Finance 1,548,555 0.1958,590 Woori Investment & Securities 634,505 0.085,218 Yuhan 519,076 0.06

172,991,945 21.13

Taiwan — 15.35% (14.31%)1,300,100 Acer 2,036,778 0.25190,227 Advantech 314,935 0.04

2,136,102 ASE Group 1,062,239 0.131,161,546 Asia Cement 732,582 0.09

82,616 Asia Optical 81,749 0.01


11



Taiwan — (cont.)314,587 ASUSTeK Computer 1,443,550 0.18

4,366,540 Au Optronics 2,683,343 0.33884,957 Capital Securities 251,341 0.03250,175 Catcher Technology 361,589 0.04

3,717,418 Cathay Financial 3,659,616 0.45582,219 Cathay Real Estate

Development 183,013 0.021,904,521 Chang Hwa Commercial Bank 802,707 0.10493,821 Cheng Shin Rubber Industry 682,796 0.08157,490 Cheng Uei Precision Industry 178,281 0.02272,357 Chicony Electronics 371,077 0.05

3,297,649 Chimei Innolux 2,629,763 0.32893,477 China Airlines 394,639 0.05

5,566,128 China Development FinancialHoldings 1,020,530 0.12

325,885 China Motor 155,468 0.024,881,390 China Steel 3,172,412 0.394,821,115 Chinatrust Financial 1,944,265 0.242,024,822 Chunghwa Picture Tubes 176,003 0.022,322,561 Chunghwa Telecom 3,248,915 0.401,086,000 CMC Magnetics 181,332 0.02131,136 Compal Communications 71,706 0.01

2,112,123 Compal Electronics 1,601,090 0.20414,145 Coretronics Corp 399,752 0.05873,908 Delta Electronic 2,287,708 0.28397,777 D-Link 250,876 0.03

1,475,992 E.Sun Financial Holdings 489,320 0.06388,000 Epistar 778,052 0.09448,138 Eternal Chemical 296,680 0.04463,361 Eva Airways 258,051 0.03763,351 Evergreen Marine 332,535 0.04799,930 FAR Eastern International Bank 229,618 0.03

1,704,692 Far Eastern Textile 1,380,110 0.17772,007 Far EasTone

Telecommunications 671,050 0.08127,931 Faraday Technology 157,492 0.02313,016 Feng Hsin Iron & Steel 332,826 0.04

2,189,687 First Financial Holding 905,192 0.112,095,685 Formosa Chemical & Fibre 3,215,385 0.39935,083 Formosa Petrochemical

Corporation 1,489,504 0.182,920,665 Formosa Plastic 4,498,854 0.55726,726 Formosa Taffeta 374,607 0.05539,723 Foxconn Technology 1,085,573 0.13

3,118,444 Fubon Financial 2,445,878 0.30171,616 Giant Manufacturing 407,625 0.05

2,211,922 HannStar Display 279,904 0.03393,584 High Tech Computer 5,752,291 0.70

4,633,669 Hon Hai Precision Industry 10,959,129 1.342,438,361 Hua Nan Financial 993,203 0.121,194,302 Inotera Memories 391,106 0.051,530,267 Inventec 498,033 0.06119,781 Inventec Appliances 60,412 0.01

1,216,496 KGI Securities 343,044 0.0445,318 Largan Precision 566,141 0.07

118,911 Lite-On IT 76,439 0.011,065,128 Lite-On Technology 862,322 0.101,746,363 Macronix International 683,094 0.08

12



Taiwan — (cont.)528,699 Mediatek 4,766,598 0.58

4,049,657 Mega Financial 1,723,199 0.21335,983 Micro-Star International 110,027 0.01508,163 Mitac International 137,649 0.02

3,814,134 Nan Ya Plastic 5,219,751 0.64136,952 Nan Ya Printed Circuit Board 303,143 0.04

1,048,855 Nanya Technology 417,683 0.05229,414 Novatek Microelectronics 391,870 0.05302,119 Oriental Union Chemical 164,284 0.02146,867 Pacific Electric Wire & Cable* — —809,037 Pegatron 695,060 0.08

1,163,878 Polaris Securities 359,968 0.041,340,431 Pou Chen 723,471 0.091,992,980 Powerchip Semiconductor 333,579 0.04389,456 President Chain Store 1,066,750 0.13441,945 President Securities 156,340 0.02579,592 Qisda 236,668 0.03

1,372,461 Quanta Computer 1,312,279 0.16307,348 Realtek Semiconductor 449,815 0.05

1,631,204 Ritek 289,513 0.043,025,557 Shin Kong Financial 681,939 0.081,485,517 Siliconware Precision Industries 912,886 0.11706,834 Synnex Technology

International 1,011,616 0.122,279,971 Taishin Financial Holdings 654,460 0.081,462,616 Taiwan Business Bank 279,696 0.031,618,028 Taiwan Cement 1,053,191 0.132,081,809 Taiwan Cooperative Bank 934,241 0.11341,000 Taiwan Fertilizer 684,493 0.08741,232 Taiwan Glass Industrial 474,984 0.06910,401 Taiwan Mobile 1,170,456 0.14151,231 Taiwan Secom 160,802 0.02

12,584,212 Taiwan SemiconductorManufacturing 15,263,089 1.86

2,346,200 Tatung 265,120 0.03824,000 Teco Electric & Machinery 278,169 0.03529,540 Ton Yi Industrial 168,060 0.0286,932 Transcend Informat 136,718 0.02

231,160 U-Ming Marine Transport 285,976 0.03726,371 Unimicron Technology 784,088 0.10

2,116,283 Uni-President Enterprises 1,704,776 0.216,320,284 United Micro Electronics 1,743,951 0.21191,898 Vanguard International

Semiconductor 52,368 0.011,588,434 Walsin Lihwa 550,679 0.07556,614 Wan Hai Lines 246,975 0.03854,896 Waterland Financial Holdings 163,655 0.02

1,604,815 Winbond Electronics 271,529 0.03957,188 Wistron 1,048,725 0.13213,119 Ya Hsin Industrial* — —870,080 Yageo 226,889 0.03405,669 Yang Ming Marine Transport 166,469 0.02

3,936,414 Yuanta Financial Holding 1,527,802 0.19750,105 Yuen Foong Yu Paper

Manufacturing 209,250 0.03578,939 Yulon Motor 651,858 0.08

125,816,082 15.35

13



EUROPE — 0.08% (0.00%)

Ireland — 0.08% (0.00%)196,333 James Hardie Industries 669,924 0.08

NORTH AMERICA— 3.45% (2.55%)

Bermuda — 0.66% (0.55%)633,000 C C Land Holdings 178,147 0.02673,795 China Yurun Food Group 1,617,093 0.20214,879 Chinese Estates 225,323 0.03809,000 CITIC Resources Holdings 126,120 0.02310,000 Hopson Development

Holdings 229,175 0.03605,000 Huabao 577,816 0.07

1,916,000 Hutchison Harbour Ring 130,483 0.022,221,099 Mongolia Energy 564,951 0.07699,000 Nine Dragons Paper

Holdings 738,711 0.09170,800 Orient Overseas 900,414 0.1188,000 Public Financial Holdings 36,319 —

5,324,552 0.66

Cayman Islands— 2.79% (2.00%)

738,000 Alibaba.com 908,299 0.11564,000 Anta Sports Products 780,222 0.09

3,100,000 Belle International 3,789,914 0.461,405,607 China Dongxiang 536,288 0.07607,150 China High Speed

Transmission Equipment 867,812 0.11313,500 China Huiyuan Juice Group 144,305 0.02633,000 China Mengniu Dairy

Company 1,256,899 0.15801,682 China Zhongwang

Holdings 303,896 0.041,047,000 Foxconn International

Holdings 478,501 0.061,772,023 Geely Automobile Holdings 476,897 0.06283,500 Greentown China Holdings 197,721 0.02540,000 Hidili Industry International

Development 303,062 0.04745,540 Hutchinson

TelecommunicationsHong Kong Holdings 134,578 0.02

598,500 KWG Property Holding 301,518 0.04385,500 Li Ning 790,762 0.10408,500 Lifestyle International 652,924 0.08953,600 New World China Land 226,906 0.03644,000 Parkson Retail Group 733,427 0.09

1,171,200 Sands China 1,230,049 0.151,307,995 Shui On Land 417,481 0.051,041,103 Soho China 452,742 0.06450,600 Tencent Holdings 5,937,698 0.72

3,330,500 Want Want China 1,841,835 0.22

22,763,736 2.79

14



PACIFIC — 36.13% (39.40%)

Australia — 35.30% (38.28%)229,952 Adelaide Brighton 466,315 0.06223,601 AGL Energy 2,165,360 0.26

1,211,055 Alumina 1,330,878 0.16609,423 Amcor 2,442,072 0.30

1,036,195 AMP 3,195,957 0.3973,533 Ansell 573,695 0.07

119,529 APN News & Media 143,330 0.0260,657 Aquila Resources 322,612 0.04

296,873 Aristocrat Leisure 650,689 0.081,465,530 Asciano Group 1,437,021 0.18164,073 Australand Property Group 268,966 0.03

1,273,421 Australia & New ZealandBanking Group 18,246,509 2.23

84,282 Australian Stock Exchange 1,668,200 0.20393,124 AWB 352,061 0.04746,724 AXA Asia Pacific Holdings 2,366,608 0.29100,463 Bank of Queensland 667,907 0.08172,222 Bendigo Bank 958,857 0.12

1,667,528 BHP Billiton 39,495,249 4.8294,806 Billabong International 457,613 0.06

907,818 Bluescope Steel 1,262,205 0.15353,077 Boral 1,009,685 0.12683,277 Brambles 2,584,524 0.3279,325 Caltex Australia 565,905 0.07

208,214 Challenger Financial Services 530,952 0.06273,957 Coca-Cola Amatil 2,017,618 0.2528,055 Cochlear 1,200,697 0.15

762,810 Commonwealth Bankof Australia 23,995,275 2.93

952,593 Commonwealth PropertyOffice Fund 543,665 0.07

273,393 Computershare 1,608,448 0.20218,744 Consolidated Media Holdings 439,602 0.05182,370 Crown 928,990 0.11283,505 CSL 5,817,993 0.71749,098 CSR 820,940 0.10

2,538,956 Dexus Property Group 1,279,467 0.16117,800 Downer EDI 337,585 0.04176,090 DuluxGroup 279,043 0.0349,636 Energy Resources of Australia 409,555 0.05

584,173 Envestra 180,887 0.02338,444 Fairfax Media 306,174 0.0433,914 Flight Centre 459,176 0.06

617,623 Fortescue Metals Group 1,889,948 0.23969,205 Fosters Group 3,671,944 0.45267,571 Futuris 103,972 0.01951,434 Gandel Retail Trust 1,126,443 0.14933,852 General Property Trust 1,655,605 0.20649,105 Goodman Fielder 553,716 0.07366,428 Gunns 133,486 0.02151,816 GWA International 291,273 0.04420,134 Harvey Norman Holdings 964,218 0.12210,327 Iluka Resources 748,322 0.09827,533 Incitec Pivot 1,723,357 0.21

1,056,711 Insurance Australia 2,328,942 0.28100,925 IOOF Holdings 407,489 0.05

15



Australia — (cont.)75,709 Leighton Holdings 1,507,708 0.18

274,120 Lend Lease 1,226,603 0.15171,960 Macquarie 3,790,962 0.46371,928 Macquarie Airports 702,288 0.09287,984 Macquarie Atlas Roads Group 262,274 0.03

3,144,326 Macquarie Goodman 1,221,809 0.151,042,319 Macquarie Infrastructure

Group 936,609 0.11231,066 Macquarie Office Trust 353,535 0.04361,609 Metcash 946,264 0.11

1,747,966 Mirvac Group 1,422,111 0.171,054,666 National Australia Bank 16,360,690 2.00114,851 New Hope 350,053 0.04391,567 Newcrest Mining 9,488,195 1.1699,106 Nufarm 242,494 0.03

625,120 OneSteel 1,127,238 0.14176,594 Orica 2,723,362 0.33431,450 Origin Energy 4,191,276 0.51

1,624,564 OZ Minerals 1,390,758 0.17346,289 Paladin Resources 775,820 0.0925,932 Perpetual Trustees Australia 473,598 0.06

550,240 Qantas Airways 891,988 0.11524,528 QBE Insurance Group 5,471,263 0.67224,895 Rio Tinto 10,322,796 1.26411,308 Santos 3,196,487 0.39668,541 Sigma Pharmaceuticals 188,746 0.0297,774 Sims Group 1,047,765 0.13

186,350 Sonic Healthcare 1,242,303 0.15686,453 SP Ausnet 366,766 0.04122,887 Spotless Group 170,113 0.02

1,164,159 Stockland Trust Group 2,749,525 0.33626,427 Suncorp Metway 3,388,784 0.41312,484 TABCORP Holdings 1,303,408 0.16623,239 Tattersall's 885,455 0.11

2,186,858 Telstra 3,545,093 0.43290,002 Ten Network Holdings 234,179 0.03352,100 Toll Holdings 1,389,553 0.17254,620 Tower Australia Group 350,925 0.04719,987 Transurban Group 2,185,699 0.27498,088 Wesfarmers 10,203,447 1.2570,934 Wesfarmers

(Partially Protected Shares) 1,453,530 0.1836,514 West Australian Newspapers 162,724 0.02

1,142,243 Westfield Group 8,537,138 1.041,465,958 Westpac Banking (AUD) 20,898,513 2.55

12,169 Westpac Banking (NZD) 173,720 0.02288,310 Woodside Petroleum 7,786,105 0.95611,222 Woolworths 10,724,884 1.31116,244 WorleyParsons 1,552,705 0.19

289,304,261 35.30

New Zealand — 0.55% (0.57%)111,281 Air New Zealand 66,250 0.01506,604 Auckland International Airport 483,036 0.06152,724 Contact Energy 404,891 0.05249,229 Fisher & Paykel Healthcare 350,076 0.04292,636 Fletcher Building 1,148,754 0.14

*

16



New Zealand — (cont.)430,357 Kiwi Income Property Trust 198,162 0.02284,468 Sky City 382,374 0.0594,443 Sky Network Television 225,782 0.03

945,783 Telecom Corporationof New Zealand 888,586 0.11

131,432 Vector 134,487 0.0280,892 Warehouse Group 141,089 0.02

4,423,487 0.55

Papua New Guinea— 0.28% (0.55%)

625,984 Oil Search 2,318,403 0.28

FUTURES — 0.03% (0.03%)7 Hang Seng Index Future

Expiry September 2010 49,409 0.01150 MSCI Taiwan Index Future

Expiry September 2010 158,488 0.02

207,897 0.03

Portfolio of investments 811,755,391 99.09

Net other assets 7,455,506 0.91

Net assets £819,210,897 100.00%

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

Total purchases for the period £46,643,242.

Total sales for the period £21,627,211.

Statement of Total Returnfor the period ended 25 September 2010

25/09/10 25/09/09

£ £ £ £

Income

Net capital (losses)/gains (8,031,754) 188,719,304

Revenue 15,018,835 10,559,507

Expenses (2,859,740) (1,809,670)

Finance costs: Interest (853) (1,074)

Net revenue before taxation 12,158,242 8,748,763

Taxation (1,122,732) (798,833)

Net revenue aftertaxation for the period 11,035,510 7,949,930

Total returnbefore distributions 3,003,756 196,669,234

Finance costs: Distributions (10,611,045) (7,621,835)

Change in net assetsattributable to Unitholdersfrom investment activities £(7,607,289) £189,047,399

Statement of Change in Net Assets attributable toUnitholders for the period ended 25 September 2010

25/09/10 25/09/09

£ £ £ £

Opening net assetsattributable to Unitholders 804,677,164 436,729,303

Amounts receivedon creation of units 37,184,775 78,659,382

In-specie creations — 807,321

Amounts paid oncancellation of units (19,510,942) (19,543,799)

17,673,833 59,922,904

Change in net assetsattributable to Unitholdersfrom investment activities (7,607,289) 189,047,399

Retained distribution onaccumulation units 4,467,189 3,372,079

Closing net assetsattributable to Unitholders £819,210,897 £689,071,685

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

17

Financial Statements

Balance Sheet as at 25 September 2010

25/09/10 25/03/10

£ £ £ £

ASSETS

Investment assets 811,755,391 794,636,126

Debtors 3,946,317 7,492,069

Cash and bank balances 12,816,951 9,136,398

Amounts held at brokerhouses 114,060 441,781

Total other assets 16,877,328 17,070,248

Total assets 828,632,719 811,706,374

LIABILITIES

Investment liabilities — —

Creditors (1,488,419) (3,154,613)

Bank overdrafts (1,685,975) (232,904)

Distribution payableon distribution units (6,247,428) (3,641,693)

Total other liabilities (9,421,822) (7,029,210)

Total liabilities (9,421,822) (7,029,210)

Net assets attributableto Unitholders £819,210,897 £804,677,164

18

Financial Statements continued

19

Notes to the Financial Statementsas at 25 September 20101. Accounting policies

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’).

Previously the financial statements were prepared inaccordance with the Statement of Recommended Practicefor Authorised Funds issued by the IMA in November 2008.

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

Distribution Information

R-ClassThe distribution payable on 25 November 2010 is 0.9249p netper unit for distribution units and 1.1004p net per unit foraccumulation units.

I-ClassThe distribution payable on 25 November 2010 is 1.1438p netper unit for distribution units and 1.4004p net per unit foraccumulation units.

Total Expense Ratios

25 Sep 10 25 Mar 10R-Class 0.87% R-Class 0.85%I-Class 0.40% I-Class 0.39%

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

20

Trust Facts

21

Performance Record

Net Asset ValuesNet Asset Net Asset Number Of

Accounting Value Of Value Per UnitsDate Trust Unit In Issue

25 Mar 08R-ClassDistribution Units £163,622,915 61.56p 265,807,324Accumulation Units £86,802,497 70.23p 123,603,654I-ClassDistribution Units £24,670,977 61.51p 40,108,422Accumulation Units £157,828,062 70.87p 222,700,775



25 Sept 10R-ClassDistribution Units £464,595,711 75.03p 619,214,821Accumulation Units £135,110,024 90.41p 149,442,576I-ClassDistribution Units £33,983,129 74.73p 45,473,228Accumulation Units £185,522,033 92.05p 201,548,618


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


Unit Price Range and Net Revenue

R-Class UnitsHighest Lowest Net

Year Offer Bid Revenue

Distribution Units

2005 50.91p 37.80p 0.8600p

2006 55.77p 46.57p 0.9493p

2007 75.15p 54.36p 1.0642p

2008 70.53p 36.35p 1.1951p

2009 70.73p 39.28p 1.1606p

2010(2) 77.95p 65.20p 1.4738p

Accumulation Units

2005 55.69p 40.88p 0.9268p

2006 61.86p 51.31p 1.1151p

2007 85.17p 60.60p 1.1968p

2008 80.45p 42.12p 1.3759p

2009 83.59p 45.50p 1.3486p

2010(2) 92.77p 77.04p 1.7499p

I-Class UnitsHighest Lowest Net

Year Offer Bid Revenue

Distribution Units

2005(1) 50.93p 43.00p —

2006 55.82p 46.63p 1.1379p

2007 74.46p 53.76p 1.3499p

2008 70.52p 36.26p 1.5012p

2009 69.94p 38.96p 1.3869p

2010(2) 77.75p 64.88p 1.8422p

Accumulation Units

2005(1) 55.69p 47.02p —

2006 62.13p 51.45p 1.3523p

2007 85.03p 60.14p 1.5344p

2008 81.22p 42.61p 1.7253p

2009 84.08p 45.77p 1.6460p

2010(2) 94.33p 78.07p 2.2388p

(1) From 26 September 2005.(2) The above tables show highest offer and lowest bid prices to25 September 2010 and the net revenue per unit to25 November 2010.


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


22

Performance Record continued

23

General Information

ConstitutionLaunch date: 28 February 1997Period end dates for distributions: 25 March, 25 SeptemberDistribution dates: 25 May, 25 NovemberMinimum initial lumpsum investment: R-Class £500

I-Class £100,000Minimum monthly contribution: £50Valuation point: 12 noonManagement charges: R-Class 0.65%

I-Class 0.30%Initial charges: Nil

Pricing and DealingThe prices are published on the internet atwww.legalandgeneral.com/investments/daily-prices.htmlimmediately 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, completing anapplication form or on the internet at www.legalandgeneral.com.Units may normally be sold back to the Manager on anybusiness day at the bid price calculated at the followingvaluation 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 telephoning0370 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.

24

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

Directors of the ManagerM. B. BoardmanS. Ellis (appointed 5 October 2009)M. J. GregoryS. R. PistellS. D.Thomas

SecretaryA. Fairhurst

RegistrarLegal & General (Portfolio Management Services) LimitedCustomer ServicesP. O. Box 1004Cardiff CF24 0YSAuthorised 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 ServicesGogarburnP.O. Box 1000Edinburgh EH12 1HQAuthorised and regulated by the Financial Services Authority

Independent AuditorsPricewaterhouseCoopers LLPHay’s Galleria1 Hay’s LaneLondon SE1 2RD

Investment AdviserLegal & General Investment Management LimitedOne Coleman Street,London EC2R 5AAAuthorised and regulated by the Financial Services Authority

General Information continued

Authorised and regulated by theFinancial Services Authority

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

Legal&General PacificIndexTrust InterimManager’sReport … · 2011. 11. 24. · Manager’s Investment Report 2 Authorised Status 5 Directors’ Statement 5 Portfolio Statement

Documents