TRUSTEE COMMUNICATION

Quarterly Reports

We produce a tailored quarterly report that covers

• the objective or benchmark of the each fund used
• the value of the scheme's holdings and quarterly cash flow
• changes in the value and distribution of assets
• performance returns, tracking graphs and fund activity
• dealing costs within each fund and the amount effectively paid by the client
• details of how we have voted on recent corporate actions
• background to what has been happening in the markets
  details about Level 2 disclosures

We would appoint a dedicated Client Account Manager to co-ordinate the reporting of our investment and administration activities. We also recognise that it is important to build strong relationships between our key investment specialists and the Trustees of our major clients.

Transaction Statements

A transaction statement is issued on each occasion money is invested together with a valuation statement which shows the value of the holdings in each fund. Additionally, valuation statements are automatically issued after the valuation on the first working day of each month, based on closing prices for the last working day of the previous month. Following feedback from clients, our transaction statements have recently been redesigned to enhance their clarity. Dividend income and any reclaimed tax are automatically reinvested and reflected in the unit prices. We have an automated email facility for clients who prefer electronic copies of the statements.

Presentations

Working with the client's advisers, we provide support to help the Trustees launch the scheme. For schemes being set up for new entrants this can be in the form of workshops for HR staff or others involved in the induction process.

Once the scheme is set up we like to meet with Trustees on a regular basis, to fit in with their specific requirements. We find that for index funds yearly meetings are normally considered to be appropriate.

At these review meetings we will concentrate in particular on:

• Performance against the benchmark and the indices
• Asset allocation movements
• Activity within each individual pooled index fund

Brochures

A monthly publication called "Fundamentals" is available to all Trustees and covers investment issues and market news. Downloadable copies of Fundamentals are available in the Media section of this site.

Internet

LGIM is committed to providing excellent client service and has had an on-line client website since 2001. The "Clientsite" enables trustees, their pension scheme managers, and administrators to access scheme information on-line. The scheme information is also accessible to consultants if prior permission is obtained from the trustees of the scheme.

Scheme Fund Level

The information on the site is divided into scheme information and fund information. The scheme section provides access to scheme valuations, transaction activity, invoices, scheme performance and asset distribution. We are able to show information about different schemes operated within one Trust Deed on the same site. The fund section includes price, performance, fund objectives and fund activity information from all the funds in which the scheme invests. Where a scheme uses a blended fund i.e. combines several of our funds together, both the blended and the underlying fund information is displayed

Administrators

In 2003 LGIM launched the Electronic Policy Data Publication service. This service enables clients to authorise their scheme's administrators to register for feeds of policy- related data, both current and historic. The data is delivered in a simple delimited file format which can be easily processed either using a spreadsheet based system or a direct feed into clients and administrator in-house systems. This development enables Trustees and administrators to receive prices as soon as they are released in a format that can be easily uploaded on to their systems. The main benefits of this service are that it eliminates re-keying data, reduces costs and minimises the potential for errors.