Cautious

31 August 2021 Life Fund Cautious Growth Life

Asset Allocation (as at 30/06/2021) This document is provided for the purpose of UK Fixed Interest 31.3% information only. This factsheet is intended for individuals who are familiar with investment Global Fixed Interest 25.8% terminology. Please contact your financial UK Equities 9.4% adviser if you need an explanation of the terms used. This material should not be relied upon Global Equities 7.8% as sufficient information to support an Property Shares 6.9% investment decision. The portfolio data on this Money Market 6.3% factsheet is updated on a quarterly basis. Futures 3.5% North American Equities 3.3% Fund Aim Global Emerging Market Equities 3.0% The Fund aims to provide exposure primarily to bonds (this may include UK Government Other 2.8% bonds, index- linked securities, other UK fixed interest securities, overseas bonds and high Asset Allocation Relative to Strategic Asset Allocation yield bonds) and property (which can be both in the UK and overseas). The Fund may also (as at 30/06/2021) provide exposure to equities (which may include UK, overseas and emerging markets), commodities and other alternative assets such as derivatives. In addition the Fund has the power to invest in other asset classes permitted by FCA rules. Basic Fund Information Fund Launch Date 28/06/2010 Fund Size £379.1m ISIN - MEX ID - SEDOL - Manager Mark Henzell, Matthew Names Davies Manager Since 28/06/2010, 01/07/2013 The composition of asset mix and asset allocation may change at any time and exclude cash unless otherwise stated Top Ten Holdings (as at 30/06/2021) SW CORP BOND W ACC 27.3% SW HIGH INC X ACC 12.3% SW HBOS INVESTMENT FUND 6.9% MANAGERS LTD UK PROPERTY FD INSTL IC SCHRODER STERLING LIQUIDITY 6.9% FUND X INCOME SW UT UK ALL SHARE TRACKER X 6.0% GBP CORPORATE BOND-I-INC 6.0% PAYDEN ABSOLUTE RETURN BD 4.3% GBP ACC SCOTTISH WIDOWS UNIT TRUST 3.3% MAN US EQUITY TRACKER X PENS ACC BNY MELLON INVESTMENTS FUNDS 3.0% I ACC NPV INVESTMENTS 2.9% LIMITED GLOBAL ABSOLUTE RETURN STRATEGIES FUND INSTITUTIONAL ACCUMULATION TOTAL 78.9%

Scottish Widows 69 Morrison Street EH3 1HL Product Enquiries: 0800 141 418 General Enquiries: 0131 655 6000 Page 1 Performance figures are in £ British Pound on a single pricing basis, with income (where • Some of the companies and governments applicable) reinvested net of UK tax and net of total annual fund charges. These figures do not who issue the bonds that the funds invest in include any initial charge or other product charge(s) that may be applicable. might not be able to meet their payments, or their credit rating might fall. If they don’t meet Past Performance their payments, or their credit rating falls, the 20% value of your investment might reduce. In addition, a proportion of the Fund can be invested in high yield bonds (a type of fixed interest security with a low rating from a credit agency), these can offer a higher income than bonds with a high credit rating but carry a 10% higher risk of not being able to meet their payments.

• Fluctuations in interest rates are likely to affect the value of the bonds held by the funds. 0% If longterm interest rates rise, the value of your shares is likely to fall and vice versa.

Sep 16 Dec 17 Mar 19 Jun 20 Sep 21 • Property is a less liquid asset than other 31/08/2016 - 31/08/2021 Powered by data from FE fundinfo assets such as bonds or equities and values Scottish Widows Cautious Growth Life could be affected if properties need to be sold in a short timescale. Property valuation is Past performance is not a guide to future performance. Investment value and income from it may generally a matter of judgement by an fall as well as rise, as a result of market and currency movements. You may not get back the independent valuer rather than fact and values amount originally invested. can go up or down. Discrete Performance • Investing in equities generally has the 30/06/2020 - 30/06/2019 - 30/06/2018 - 30/06/2017 - 30/06/2016 - potential for higher capital growth over the 30/06/2021 30/06/2020 30/06/2019 30/06/2018 30/06/2017 longer term than investing in, say, fixed interest Scottish Widows 5.6% -0.1% 2.0% 1.6% 7.0% securities. However there might be Cautious Growth Life considerable fluctuations in equity prices and there is a greater risk that you might not get all Information is shown as unavailable if prior to the launch of fund. your money back.

Cumulative Performance • Exchange rate changes might cause the 31/07/2021 - 31/05/2021 - 31/08/2020 - 31/08/2018 - 31/08/2016 - value of any overseas investments to go up or 31/08/2021 31/08/2021 31/08/2021 31/08/2021 31/08/2021 down. Scottish Widows 0.8% 2.2% 6.5% 8.3% 13.7% Cautious Growth Life Source: FE fundinfo as at 31/08/2021

Performance figures are in £ Sterling on a single pricing basis, with income (where applicable) reinvested net of UK tax and net of total annual fund charges. These figures do not include any initial charge or other product charge(s) that may be applicable.

Quarterly Fund Manager Review Global equities advanced in the second quarter, supported by the accelerating roll-out of Covid-19 vaccines. Growth stocks outperformed more lowly valued parts of the market. Government bonds yields saw divergent performance. US 10-year yields fell (meaning prices rose) while yields rose in Europe. Corporate bonds outperformed government bonds. Commodities gained with energy again the strongest component. The second quarter was strong for US equities, and the S&P 500 reached a new all-time high in late June. Almost all sectors made gains over the quarter. Tech giants like Apple, Alphabet and Microsoft made strong gains over the quarter. By sector, energy, IT, communication services and real estate were amongst the strongest areas of the market. Utilities and consumer staples lagged. Eurozone shares also gained, supported by a strong corporate earnings season. Many European countries saw Covid-19 infections fall and were able to loosen restrictions on social and economic activity. UK equities also performed well in the second quarter, although beneath the strong headline figure the quarter was mixed. Japanese shares underperformed other developed markets in the second quarter, while emerging market equities registered a strong return. US Treasury yields declined over the quarter, with the 10-year falling from 1.74% to 1.47%, retracing some of the large move higher in the first quarter. The broad backdrop was a continued pronounced rebound in economic activity with annualised inflation rates rising well above target to levels not seen in over a decade. European government bonds underperformed the US, amid growing optimism about the region’s recovery and accelerating vaccination programme. The German 10-year yield rose from -0.29% to -0.20%, France’s from just below zero to 0.13%. The Italian 10-year yield rose from 0.67% to 0.82%. The UK 10-year yield fell from 0.85% to 0.72%, following a sharp rise in the previous period. The UK residential property market has recorded a robust performance in recent months, with strong demand in many parts of the country and prices of homes significantly higher than a year earlier. The Covid-19 pandemic has also accelerated the move to e-retailing, which has led to increased demand for warehouses.

Mark Henzell, Matthew Davies 30/06/2021 The views, opinions and forecasts expressed in this document are those of the fund management house. Investment markets and conditions can change rapidly and as such the views expressed should not be taken as statements of fact, nor should reliance be placed on these views when making investment decisions.

Scottish Widows Limited. Registered in England and Wales No. 3196171. Registered Office in the United Kingdom at 25 Gresham Street, London EC2V 7HN. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Register number 181655. Page 2