AAA-AA-A CORPORATE BOND - OVER 15 YEAR - …

1 Investment ManagementAAA-AA-A CORPORATE bond - over 15 year - INDEX FUNDG lossaryAAA, AA, A rated bondsAAA-rated bondissuers are primarily government guaranteed, AAare typically non-AAA sovereign borrowers andfinancial institutions, A include many utilitycompanies. The ratings are determined byindependent credit rating companiesAnnuityA pension which guarantees an incomefor life bought with the cash value of a pensionaccountCorporate bondsA negotiable debt instrumentissued by companies which pay a fixed rate ofinterestiBoxxIs a specialist index produced by a groupof leading investment banks specifically for thecorporate bond market IndexA measure of performance of a marketInvestment classesDifferent types ofinvestments, for example, equities, bonds or cashInvestment horizonThe period over which youare looking to maintain your investment (such asuntil your pension date) Long-termAt least 15 years and longer Pension dateThe date on which an individualstarts to receive a pensionReturnsIn this case, the capital growth and theincome derived from investing in a stockmarket RiskThe possibility that an investment will leadto a gain or a loss - the higher the risk, the higherthe anticipated rewards or potential losses, thelower the risk, the lower the anticipated rewardsor potential lossesVolatileSubject to fluctuations in value, causedby rising and falling stock markets, interest ratesand for overseas investments, exchange ratebetween currenciesWhy invest in Legal & GeneralInvestment Management?

2 With more than 230 billion assets under management on behalf of over 2,800 pensionschemes, Legal & General Investment Management is the largest manager of UKpension fund assets. The phenomenal growth in the popularity of our managers is asign of the confidence placed in our team s abilities and is testimony to the innovativenature of our products, our excellent returns and our award winning service to yourTrustees who have chosen our funds to be included as fund options within yourpension for your Pension DateThe AAA-AA-A CORPORATE bond - over 15 year - Index Fund aims to capture the returnof the iBoxx Non-Gilt (ex-BBB) 15 year + Index and invests primarily in long-datedsterling-denominated AAA, AA and A rated CORPORATE bonds - all paying a fixed rate ofinterest. Different investment classes have different levels of volatility and risk which meansthat the levels of return vary greatly. The suitability of one investment class overanother therefore changes throughout your working life.

3 This Fund is likely to be ofspecific interest to members who are nearing their pension offer greater security than equities because their price and therefore their valuetends to be less volatile. However, although bond prices are less volatile their capitalvalue is linked to interest rates and will fall when interest rates are rising and rise wheninterest rates fall. CORPORATE bonds also carry some additional investment risk due tothe possibility of the issuer of the bond defaulting on the loan or by factors, such ascorporate events and market , reduced risk means a lower return and bond returns have historically beenlower than equity returns over the to long-term investment horizonsIf you have a mid to long-term investment horizon you will usually be aiming tomaximise growth in your pension account and so will probably be investing mainly inequities. As you near your pension dateHowever, as you near your pension date, you may want to reduce the volatility of thevalue of your pension account.

4 You can do this by moving part or all of your pensionaccount out of equities and into will also be thinking about buying an annuity and you may want to ensure that thevalue of your pension account starts to move in line with the cost of buying an providers use bonds to back their annuities. Adopting the same investmentapproach, as annuity providers, that is investing in bonds, will therefore provide someprotection against changes in annuity prices as you get near to your pension Size 4,726 millionNumber of Holdings253In a Nutshell Aims to capture market returns Helps safeguard part or all of your pensionaccount in anticipation of buying anannuity Tracks the iBoxx Non-Gilt (ex-BBB) 15 year + Index (since 1 June 2003) Likely to be of specific interest to membersnearing their pension dateThe views expressed in this fact sheet are those of Legal & General Investment Managementwho may or may not have acted upon them. This document should not be taken as aninvitation to deal in Legal & General investments or any of the stated stock & General Investment Management Limited provides Investment and Managementservices to Legal & General Assurance (Pensions Management) Limited, the operating companyfor the Funds.

5 Both companies are authorised and regulated by the Financial Services Authority. Legal & General Investment Management, Bucklersbury House, 3 Queen Victoria Street, LondonEC4N 8 NHData to 31 March 2007 Investment ManagementAAA-AA-A CORPORATE bond - over 15 year - INDEX FUNDM arket Highlights over 12 Months to 31 March 2007 The pace of UK economic growth remained very healthy over the 12-month periodunder review, with a strong services sector and increasing demand for UK in Europe, growth was solid over the review period due to strong demandfrom Asia. In the US, concerns about the housing market led to some consumercaution, causing growth to slow and to some concerns about the outlook forcorporate profits. The UK economy expanded by through 2006, slightly above the rate consideredto be trend growth. As a result, inflation rose through the 12-month period,prompting the Bank of England to raise interest rates three times, in August,November and January 2007. At the end of March, interest rates were InEurope, the ECB raised rates five times, taking rates to Rates were also raisedtwice in Japan, ending the zero interest rate policy, taking them to By contrast,rates in the US have been left unchanged since June 2006 at light of the regional variation in economic performance, global bond performancewas mixed over the year to 31 March.

6 The slower pace of US growth contributed to fall in US Treasury yields to Similarly, the consumer-led slowdown in thepace of growth in Japan led bond yields to fall to By contrast, solid growth inthe UK and on the continent saw bond yields rise over the year , particularly so in theUK where yields rose over to , AA, and A rated CORPORATE bonds underperformed government bonds, as the gapbetween CORPORATE bond yields and government bond yields widened, leading to a capitalloss. over the 12-month period the index produced a negative total return of % GROSS%%Mar 2006 - Mar 2005 - Mar 2004 - Mar 2003 - Mar 2004 2002 - Mar 2003 annum to 31 March 2007 FUNDFUNDINDEXNET % GROSS%%3 InformationPast performance is not a guide to the future and the value of investments can go downas well as up. Investors may not recoup the value of their original investment. The viewsexpressed in this fact sheet are those of Legal & General Investment Management who mayor may not have acted upon them.

7 This document should not be taken as an invitation todeal in Legal & General investments or any of the stated stock performance is not a guide to the are calculated on the basis of closingmiddle-market prices. Fund Net returns areafter the deduction of our standardinvestment management fees (please refer toyour scheme s literature to determine the feerate you are paying). Fund Gross returns arebefore the deduction of This period is prior to the launch date ofthe fund including investment fees thereforeonly gross data is source of all information is LGIM unlessotherwise stated.