Index-tracking unit trusts - The basics

• Index-tracking unit trusts (sometimes called tracker unit trusts) aim to produce a return in line with a market or sector, for example, Europe or technology.
• The fund's investments accurately reflect those of the selected Index.
• Tracker unit trusts require less management than other investment unit trusts, allowing us to offer you low charges, meaning more of your money remains invested.
• You might be reassured to know that Legal & General is one of the biggest providers of index-tracking investments in the UK, managing £214 billion as at 31 December 2007.
• There are nine index-tracking unit trusts to invest in and you can apply for a unit trust online today.
• Once you have invested with us you can manage your investments online, anytime.
• Unit trusts are designed as medium to long term investments, for example at least five years.
• Both capital and income values may fall as well as rise and are not guaranteed. You may not get back the money you invested.
• If you choose an index-tracking trust which invests overseas, changes in exchange rates between currencies may cause the value of your investment and the level of income to rise or fall.
• Refer to Risk factors for the other risks associated with this product.

Your options

You may want to consider investing directly into a unit trust if you have already used up your ISA allowance for this tax year. Although unit trusts do not offer the same tax advantages as ISAs, there are no investment limits although you can only invest up to £50,000 online.

Legal & General offers a wide range of low cost index-tracking unit trusts to choose from.

• You can choose to invest in geographic regions. For example: the UK, Europe, US, Pacific or Japan.
• You can choose to follow the performance of a single market, such as technology or health and pharmaceuticals.
• Or you can simply invest across some of the largest companies in the world (the Global 100 Index Trust).
• The index-tracking unit trust product table clearly lists the management charges for these unit trusts.
• See how each of our index-tracking unit trusts has performed for the last five years using the fund performance table.

The charges

• None of our index-tracking unit trusts has an initial fee or an exit fee.
• Charges are kept low, meaning that more of your money remains invested. The unit trust table below clearly lists the management charges for each product, so you can compare them.

These trusts offer more than one class of units. The details below relate to the unit class 'R', which is the class available online.

* these expenses include auditors, trustees, custodian and regulator fees.

Risk factors

All investments carry an element of risk. Please bear in mind that:

• Unit trusts are designed as medium to long term investments of, ideally, at least five years.
• Both capital and income values may fall as well as rise and are not guaranteed. You may not get back the money you invested.
• If the market in which you invest falls, the value of your investment will probably fall as well.
• If you choose an index-tracking trust which invests overseas, changes in exchange rates between currencies may cause the value of your investment and the level of income to rise and fall.
• Each Legal & General index-tracking trust has its own objectives and risk factors. These are detailed in the Key Information document (including Simplified Prospectus), which can be downloaded from the right-hand side menu. Before you decide to invest, you must read this document.