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.

››For the Stability-Focused Strategic Portfolios, dedicated short duration allocations as
well as short duration positioning, both providing relatively lower interest rate sensitivity,
cushioned the impact of rising yields in many fixed income markets. The global managed
volatility equity asset class did not provide the expected protection in February, however
meaningful risk reduction was achieved in March. Despite this, SEI’s view is that the asset
class has not been tested in an environment in which it may provide more meaningful
capital preservation benefits. Strengthening of sterling over the period also provided a
headwind to unhedged, non-UK positions, relevant because the SEI strategic portfolios
structurally are global in nature.

››The Stability-Focused Strategic Portfolios (the Defensive, Conservative, and Moderate
Funds, collectively “the Funds”, Sterling Wealth A share class, in GBP, net of all fees) returns
ranged between -0.67% and -2.31% in Q1 2018, compared to the -0.21% return of BofA Merrill
Lynch Sterling Broad Market index over the same time period, which can be seen as a
representation of the UK fixed income market. UK equities meanwhile declined by -6.87%
over the same period, as measured by the FTSE All-Share Index. Crucially, each of the funds
continued to achieve their longer-term returns with a higher level of risk-adjusted return than
the above-mentioned benchmark, consistent with their unique asset allocation design.

››Consistent with their Goals-based investment design, SEI manages the Stability-Focused
Strategic Portfolios to specific maximum drawdown targets which tend to result in an asset
allocation structure that seeks to deliver a smoother investment journey for investors. Evidence
of the success of this approach can be found in the 5-years to 31 March 2018 volatility data of
the Stability Focused Strategic Portfolios, with respective values of 1.71%, 2.86%, 4.10% for the
Defensive, Conservative, and Moderate Funds, comparing favourably against the