This is for financial adviser use only and shouldn’t be relied upon by any other person.

MODERATELY ADVENTUROUS LIFESTYLE STRATEGY ANNUAL REVIEW

Introduction This document provides a rolling annual review of the Moderately Adventurous Lifestyle Strategy and is designed to assist you in preparing your client reports. The information is provided on a sample basis only and you should ensure that your own final version satisfies your compliance requirements. For more information about our Lifestyle Strategies please visit adviser.royallondon.com/investment.

Investment objective This strategy aims to deliver above inflation growth in the value of the fund at retirement, whilst taking a level of risk consistent with a moderately adventurous risk attitude.

Benchmark allocations The strategy is invested in the Governed Portfolios shown. You will be automatically invested into the strategy at the point that matches your time to retirement.

As you approach retirement your money is automatically switched to ensure a gradual move between the portfolios and fund splits shown below. The switching occurs on a monthly basis on, or as close as possible to, the date on which your birthday falls.

At 15yrs+ At 10yrs At 5yrs Retirement Governed Portfolio 7 Governed Portfolio 5 Governed Portfolio 6 100.0% RLP Deposit 80.00% Equity 55.00% Equity 32.50% Equity 15.00% Property 15.00% Property 12.50% Property 5.00% Commodities 5.00% Commodities 5.00% Commodities 2.50% Global High Yield Bond 2.50% Global High Yield Bond 5.00% Gilts (10yr) 11.66% Gilts (5yr) 5.00% Index linked Bonds (10yr) 11.67% Index linked Bonds (5yr) 5.00% Corporate bonds (10yr) 11.67% Corporate bonds (5yr) 7.50% Absolute Return Strategies (including12.50% Absolute Return Strategies (including cash) cash)

Ongoing governance Your Lifestyle Strategy comes with ongoing governance. This simply means that our investment experts check it regularly. It allows us to maintain the best mix of assets in line with the risk category - and to make sure it is performing in line with its overall objectives - aiming to give you the best returns. The value of your investment can go down as well as up and you may not get back the value of the original investment.

If our experts decide that the mix of assets needs to be adjusted, it happens automatically on your behalf, you don't need to do anything. What's more, this service comes at no extra cost.

Latest tactical allocations at 08/03/2018

At 15yrs+ At 10yrs At 5yrs Governed Portfolio 7 Governed Portfolio 5 Governed Portfolio 6 82.60% RLP Global Managed 63.13% RLP Global Managed 39.00% RLP Global Managed 10.80% RLP Property 15.00% RLP Property 12.50% RLP Property 6.60% RLP Commodity 7 .00% RLP Commodity 7 .00% RLP Commodity 2.05% RLP Global High Yield 2.15% RLP Global High Yield 1.45% RLP Short Duration Global High Yield 1.55% RLP Short Duration Global High Yield 0.50% RLP Medium (10yr) Gilt 4.16% RLP Short (5yr) Gilt 1.7 5% RLP Medium (10yr) Index Linked 11.67 % RLP Short (5yr) Index Linked 6.00% RLP Medium (10yr) Corporate Bond 12.67 % RLP Short (5yr) Corporate Bond 1.00% RLP Absolute Return Government Bond 4.20% RLP Absolute Return Government Bond 2.12% RLP Cash Plus 5.10% RLP Cash Plus This is for financial adviser use only and shouldn’t be relied upon by any other person.

Performance at 31/12/17 Past performance is not a guide to the future. Prices can fall as well as rise meaning you may not get back the value of your original investment. Investment returns may fluctuate and are not guaranteed.

Percentage Change

31/12/2016 31/12/2015 31/12/2014 31/12/2013 31/12/2012 Compound Annual

Portfolio Name 31/12/2017 31/12/2016 31/12/2015 31/12/2014 31/12/2013 Growth Rate (%) %Chg %Chg %Chg %Chg %Chg 3 Years 5 Years

Governed Portfolio 7 10.39 15.90 4.28 6.99 20.66 10.08 11.48 Composite benchmark 10.57 17.66 2.94 6.61 18.28 10.22 11.04 Difference -0.18 -1.76 1.34 0.38 2.38 -0.14 0.44 Governed Portfolio 5 8.20 13.97 3.17 8.40 14.33 8.35 9.53 Composite benchmark 7.89 15.16 1.92 8.42 12.01 8.18 8.98 Difference 0.31 -1.19 1.25 -0.02 2.32 0.17 0.55 Governed Portfolio 6 5.28 10.30 2.18 6.29 8.44 5.86 6.46 Composite benchmark 4.84 10.41 0.94 6.86 6.60 5.32 5.88 Difference 0.44 -0.11 1.24 -0.57 1.84 0.54 0.58 RLP Deposit -0.71 -0.51 -0.47 -0.49 -0.53 -0.56 -0.54 Benchmark -0.72 -0.61 -0.51 -0.53 -0.52 -0.62 -0.58 Difference 0.01 0.10 0.04 0.04 -0.01 0.06 0.04

Tracker lifestyle strategies Performance of portfolios with the RLP BlackRock Aquila Global Blend fund replacing the RLP Global Managed fund for equity content.

Percentage Change

31/12/2016 31/12/2015 31/12/2014 31/12/2013 31/12/2012 Compound Annual

Portfolio Name 31/12/2017 31/12/2016 31/12/2015 31/12/2014 31/12/2013 Growth Rate (%) %Chg %Chg %Chg %Chg %Chg 3 Years 5 Years

Governed Portfolio 7 9.80 18.44 3.02 7.38 19.49 10.23 11.44 Governed Portfolio 5 7.78 15.77 2.30 8.66 13.55 8.47 9.50 Governed Portfolio 6 5.03 11.30 1.70 6.45 8.00 5.93 6.44 RLP Deposit -0.71 -0.51 -0.47 -0.49 -0.53 -0.56 -0.54

Active lifestyle strategies Performance of portfolios with the RLP Global Blend Core Plus (Rathbone Global Alpha) fund replacing the RLP Global Managed fund for equity content.

Percentage Change

31/12/2016 31/12/2015 31/12/2014 31/12/2013 31/12/2012 Compound Annual

Portfolio Name 31/12/2017 31/12/2016 31/12/2015 31/12/2014 31/12/2013 Growth Rate (%) %Chg %Chg %Chg %Chg %Chg 3 Years 5 Years

Governed Portfolio 7 11.59 11.35 6.58 6.29 20.30 9.81 11.10 Governed Portfolio 5 9.09 10.59 4.79 7.89 14.07 8.12 9.24 Governed Portfolio 6 5.81 8.38 3.08 6.01 8.29 5.73 6.29 RLP Deposit -0.71 -0.51 -0.47 -0.49 -0.53 -0.56 -0.54

Source: Lipper, bid to bid, as at 31.12.2017, Royal London, as at 31.12.2017. All performance figures, including the figures shown for the growth in the benchmark, have been calculated net of the annual management charge applicable to each fund. Please note that the Governed Portfolios and their benchmarks are rebalanced on a monthly basis. This is for financial adviser use only and shouldn’t be relied upon by any other person.

Performance at 28/02/18 Past performance is not a guide to the future. Prices can fall as well as rise meaning you may not get back the value of your original investment. Investment returns may fluctuate and are not guaranteed.

Percentage Change

28/02/2017 29/02/2016 28/02/2015 28/02/2014 28/02/2013 Compound Annual

Portfolio Name 28/02/2018 28/02/2017 29/02/2016 28/02/2015 28/02/2014 Growth Rate (%) %Chg %Chg %Chg %Chg %Chg 3 Years 5 Years

Governed Portfolio 7 5.25 21.36 -2.41 10.85 12.40 7.61 9.20 Composite benchmark 4.77 23.19 -3.21 10.66 10.02 7.69 8.74 Difference 0.48 -1.83 0.80 0.19 2.38 -0.08 0.46 Governed Portfolio 5 4.06 17.69 -1.53 10.70 9.48 6.43 7.88 Composite benchmark 3.35 18.56 -2.03 10.78 7.18 6.27 7.34 Difference 0.71 -0.87 0.50 -0.08 2.30 0.16 0.54 Governed Portfolio 6 2.35 12.30 -0.40 7.23 5.90 4.60 5.38 Composite benchmark 1.69 12.01 -0.85 7.58 4.14 4.13 4.82 Difference 0.66 0.29 0.45 -0.35 1.76 0.47 0.56 RLP Deposit -0.67 -0.56 -0.47 -0.49 -0.53 -0.56 -0.54 Benchmark -0.68 -0.65 -0.52 -0.52 -0.52 -0.62 -0.58 Difference 0.01 0.09 0.05 0.03 -0.01 0.06 0.04

Tracker lifestyle strategies Performance of portfolios with the RLP BlackRock Aquila Global Blend fund replacing the RLP Global Managed fund for equity content.

Percentage Change

28/02/2017 29/02/2016 28/02/2015 28/02/2014 28/02/2013 Compound Annual

Portfolio Name 28/02/2018 28/02/2017 29/02/2016 28/02/2015 28/02/2014 Growth Rate (%) %Chg %Chg %Chg %Chg %Chg 3 Years 5 Years

Governed Portfolio 7 4.54 23.04 -2.41 10.95 11.04 7.86 9.10 Governed Portfolio 5 3.55 18.86 -1.51 10.77 8.54 6.62 7.82 Governed Portfolio 6 2.05 12.94 -0.39 7.27 5.36 4.71 5.35 RLP Deposit -0.67 -0.56 -0.47 -0.49 -0.53 -0.56 -0.54

Active lifestyle strategies Performance of portfolios with the RLP Global Blend Core Plus (Rathbone Global Alpha) fund replacing the RLP Global Managed fund for equity content.

Percentage Change

28/02/2017 29/02/2016 28/02/2015 28/02/2014 28/02/2013 Compound Annual

Portfolio Name 28/02/2018 28/02/2017 29/02/2016 28/02/2015 28/02/2014 Growth Rate (%) %Chg %Chg %Chg %Chg %Chg 3 Years 5 Years

Governed Portfolio 7 6.67 19.86 -1.43 7.97 15.15 8.01 9.39 Governed Portfolio 5 5.12 16.62 -0.96 8.71 11.24 6.68 7.98 Governed Portfolio 6 3.00 11.72 -0.12 6.14 6.82 4.74 5.43 RLP Deposit -0.67 -0.56 -0.47 -0.49 -0.53 -0.56 -0.54

Source: Lipper, bid to bid, as at 28.02.2018, Royal London, as at 28.02.2018. All performance figures, including the figures shown for the growth in the benchmark, have been calculated net of the annual management charge applicable to each fund. Please note that the Governed Portfolios and their benchmarks are rebalanced on a monthly basis. This is for financial adviser use only and shouldn’t be relied upon by any other person. Annual Review Log

Date Details 08/03/2018 Governed Portfolio 7 Our Investment Clock is in the later cycle ‘Overheat’ stage, with strong global growth and more risk of inflation. We have added to equities again, capitalising on stock market weakness and given that supportive world growth conditions remain in place. The change was funded out of property. With economies continuing to expand and inflation remaining benign, we are overweight global equities, global high yield bonds and commodities. Governed Portfolio 5 Our Investment Clock is in the later cycle ‘Overheat’ stage, with strong global growth and more risk of inflation. We have added to equities again, capitalising on stock market weakness and given that supportive world growth conditions remain in place. We also have increased the allocation to 10-year index linked bonds. The changes were funded out of high yield debt and cash. With economies continuing to expand and inflation remaining benign, we are overweight global equities, global high yield bonds and commodities. Governed Portfolio 6 Our Investment Clock is in the later cycle ‘Overheat’ stage, with strong global growth and more risk of inflation. We have added to equities again, capitalising on stock market weakness and given that supportive world growth conditions remain in place. We also have increased the allocation to conventional 5-year gilts. The changes were funded out of high yield debt and cash. With economies continuing to expand and inflation remaining benign, we are overweight global equities, global high yield bonds and commodities. IAC Meeting – Each Governed Lifestyle Strategy continues to be appropriate for its risk profile and investment 01/03/2018 objective. 08/02/2018 Governed Portfolio 7 As our Investment Clock moves further into ‘Overheat’ territory, we have added to equities at the margin and also added to commodities again, funded out of property. While the supply-demand balance is favourable for commodities, potential for weaker demand in China, the world’s biggest consumer of raw materials, is a concern. The sell-off in equities that began at the end of January seems exaggerated, and we are buying at lower levels, in expectation of a recovery in coming months as the world economy keeps expanding. We will look to maintain an overweight allocation to stocks. Governed Portfolio 5 As our Investment Clock moves further into ‘Overheat’ territory, we have added to equities at the margin and also added to commodities again, funded out of bonds. While the supply-demand balance is favourable for commodities, potential for weaker demand in China, the world’s biggest consumer of raw materials, is a concern. The sell-off in equities that began at the end of January seems exaggerated, and we are buying at lower levels, in expectation of a recovery in coming months as the world economy keeps expanding. We will look to maintain an overweight allocation to stocks. Governed Portfolio 6 As our Investment Clock moves further into ‘Overheat’ territory, we have added to equities at the margin and also added to commodities again, funded out of bonds. While the supply-demand balance is favourable for commodities, potential for weaker demand in China, the world’s biggest consumer of raw materials, is a concern. The sell-off in equities that began at the end of January seems exaggerated, and we are buying at lower levels, in expectation of a recovery in coming months as the world economy keeps expanding. We will look to maintain an overweight allocation to stocks. 18/01/2018 Governed Portfolio 7 A combination of our ‘Investment Clock’ moving further into ‘Overheat’ and positive price momentum mean that we have added to commodities at the margin, funded out of property. Nevertheless, we remain cautious on commodities as the Chinese economy is likely to slow, and recent US dollar weakness could reverse, in line with interest rate differentials. We will look to maintain our overweight position in stocks; with investor sentiment so positive, we do not rule out a short-term set-back and we would use such an opportunity to increase our equity allocation. Governed Portfolio 5 A combination of our ‘Investment Clock’ moving further into ‘Overheat’ and positive price momentum mean that we have added to commodities at the margin, funded out of bonds. Nevertheless, we remain cautious on commodities as the Chinese economy is likely to slow, and recent US dollar weakness could reverse, in line with interest rate differentials. We slightly increased the position in high yield bonds. We will look to maintain our overweight position in stocks; with investor sentiment so positive, we do not rule out a short-term set-back and we would use such an opportunity to increase our equity allocation. Governed Portfolio 6 A combination of our ‘Investment Clock’ moving further into ‘Overheat’ and positive price momentum mean that we have added to commodities at the margin, funded out of bonds. Nevertheless, we remain cautious on commodities as the Chinese economy is likely to slow, and recent US dollar weakness could reverse, in line with interest rate differentials. We slightly increased the position in high yield bonds. We will look to maintain our overweight position in stocks; with investor sentiment so positive, we do not rule out a short-term set-back and we would use such an opportunity to increase our equity allocation. This is for financial adviser use only and shouldn’t be relied upon by any other person.

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March 2018 5LT0460/20