Executive Summary

››The spectre of trade wars loomed heavily on the horizon for most of Q2, ultimately causing
the quarter to finish on a weaker note. Investor sentiment was further rattled by arguments
over immigration policy, uncertainty over the impact of rising interest rates as well as a
lack of clarity on Brexit.

››For the Growth-Focused Strategic Portfolios, strategic allocations to emerging markets
equities detracted, while small companies allocations in the US and Europe allocations
were additive to returns. The global-developed equities building block, following a difficult
month, gave back the positive relative return it had built up earlier in the year due to a bias
towards valuation-focus managers.

››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 2.50% and 6.47% in Q2 2018, lagging the 9.20% return from the
FTSE All-Share Index as well as the 8.10% return delivered by MSCI World (net) Index over
the same time period. Over the 1-year period to 30 June 2018, the SEI Aggressive Fund is
still in line or ahead of these two market indices, net of fees.

››Performance from the Growth-Focused Strategic Portfolios continued to be highly
competitive over the medium term (5 years to 30 June 2018), maintaining these Funds’
positions near the top of their respective peer groups.