Executive Summary

››US tax reform and fiscal spending, a strengthening outlook for rising interest rates, as well
as the imposition of trade tariffs by the US, thereby kicking off the rumblings of a global
trade war, combined to provide markedly increased levels of global equity market volatility
and drawdowns during the first quarter. Correspondingly, global fixed income markets also
experienced notable sell-offs over the period.

››Despite market declines, strong performance from a number of the key building blocks
added meaningful relative value to investor returns for the Growth-Focused Strategic
Portfolios, most notably in the Global Equities building block. Underweights to Facebook
and other US IT giants were supportive, as were increased allocations to momentumoriented
managers, most notably INTECH Investment Management. Strategic allocations to
smaller companies equities and emerging markets equities also added to relative returns.

››The Growth-focused Strategic Portfolios (the Core, Balanced, Growth and Aggressive
Funds, collectively “the Funds”, Sterling Wealth A share class, in GBP, net of all fees)
returns ranged between -2.66% and -4.67% in Q1 2018, comparing favourably to the
-6.87% return from the FTSE All-Share Index as well as the -4.80% return delivered by
MSCI World (net) Index over the same time period.

››Performance from the Growth-Focused Strategic Portfolios continued to be highly
competitive over the medium term (5 years to 31 March 2018), maintaining these Fund’s
positions near the top of their respective peer groups.