Quarterly Range Report

Quarterly Range Report MyFolio Multi-Manager Income Range - Q1 2018 Pension Insured Funds S4 Retail MyFolio Multi-Manager Income MyFolio is a flexible solution consisting of 25 multi-asset, fund-of-funds, split into five ranges (three growth and two income) incorporating active and passive investment funds. For each range, we offer five individual funds that target a different level of risk. There are five MyFolio Multi-Manager Income Funds, ranging from lower through to higher risk (I to V). Each fund invests mainly in carefully selected funds from some of the leading investment managers in the market that have a bias towards generating income. Standard Life Investments carries out in-depth research to identify fund it believes to be among the best in the industry. Performance (as at 31/03/2018) 50% 25% 0% Apr 13 Jul 14 Oct 15 Jan 17 Apr 18 Stan Life MyFolio Multi Manager Income I Pn S4 Stan Life MyFolio Multi Manager Income III Pn S4 Stan Life MyFolio Multi Manager Income V Pn S4 Stan Life MyFolio Multi Manager Income II Pn S4 Stan Life MyFolio Multi Manager Income IV Pn S4 Cumulative performance (as at 31/03/2018) 1 month -0.90% -1.56% -2.02% -2.86% -3.53% 3 months -1.79% -2.50% -2.83% -3.78% -4.81% 6 months -0.33% -0.68% -0.14% -1.04% -1.44% 1 year 0.33% 0.08% 0.71% 0.00% -0.33% 3 years 6.07% 6.95% 10.42% 10.30% 13.41% 5 years 12.30% 17.69% 23.36% 24.37% 30.30% Since launch 20.74% 31.87% 40.58% 40.99% 49.16% Year on year (as at 31/03/2018) 0-12m 0.33% 0.08% 0.71% 0.00% -0.33% 12-24m 7.04% 9.07% 12.00% 13.65% 17.42% 24-36m -1.23% -2.02% -2.11% -2.94% -3.09% 36-48m 6.07% 8.88% 9.43% 10.25% 11.98% 48-60m -0.19% 1.07% 2.10% 2.27% 2.60% Gross income reinvested, net of fund charges, GBP, sourced from FE 2018 The chart shows the performance of the fund over the period shown. Past performance is not a guide to future returns. The value of this investment and the income from it may go down as well as up and cannot be guaranteed. An investor may receive back less than their original investment. This document is intended for use by individuals who are familiar with investment terminology. Please contact your financial adviser if you need an explanation of the terms used or refer to our website - www.standardlife.com 1

Market review After carrying 2017 s strong momentum into January, global equity markets tumbled in the first week of February. This was caused by concerns that strong US economic growth would boost inflation and necessitate the need for higher interest rates. However, sentiment gradually recovered as the month progressed, with investors instead focusing on impressive corporate profits and supportive economic data. Thereafter, though, the threat of a trade war between the US and China caused risk-averse investors to once again sell equities ensuring most global indices were down for the quarter. Bond markets experienced a difficult first quarter of 2018. The period began poorly for government bonds, given ongoing evidence of stronger economic activity, although this lent support to credit markets. However, fears around higher-than-expected inflation and interest rates prompted a wave of volatility across markets. While government bonds found some support in this risk off environment, credit continued to struggle. Following strong performance in 2017, UK commercial real estate delivered further modest capital growth in early 2018. However, there was a marked difference in performance between sectors. On a positive note, industrials continued to benefit from structural support for demand from e-commerce expansion and tight supply in urban areas. In contrast, the retail sector had a difficult start to the year, reflected in weak performance and limited investor interest in large-scale assets. The collapse of Toys R Us and Maplin, New Look s company voluntary agreement (CVA) and Carpetright s potential CVA all hit the headlines. Range commentary We review the Strategic Asset Allocation (SAA) for each of the MyFolio funds every quarter, with the aim of ensuring that we continue to meet investors long-term interests. At the most recent review, we made no changes to the SAA model. Meanwhile, we continue to seek growth opportunities and are mindful of the need for income in a world of low yields. By historical standards, global growth remains low but we still see opportunities as economic activity broadens out to a wider range of countries. Therefore, companies can continue to sustain profits. Some political risks have reduced but others could still surprise investors, positively or negatively. Furthermore, we do not see the need for monetary policy to tighten aggressively as underlying inflation remains restrained. In light of this, we continue to tactically favour equity risk assets plus selected high-yielding fixed income assets. We therefore made the following Tactical Asset Allocation (TAA) changes (where applicable within each risk level) during the first quarter of 2018. Within equities, we increased our holding in US equities, as the US should benefit from the positive effects of fiscal stimulus and tax cuts. We also added to Japanese equities, which remain attractively valued versus other developed markets. We retain underweight positions (versus the SAA) in certain fixed income markets, including short-dated sterling corporate bonds and short-dated index linked bonds. We retain an overweight in European equities and emerging market equities, which is offset by an underweight position in UK equities. In terms of the underlying funds, we replaced the Invesco Perpetual Global Targeted Returns Fund with the Invesco Perpetual Global Targeted Income Fund (please note transactions may not apply at all risk levels). Market outlook Despite recent equity market volatility, prospects for the world economy look good for the rest of 2018 and into 2019. Data from business surveys have eased back in recent weeks, but are still solid on a historical basis. Lower unemployment in many countries is supporting consumer spending, while healthier banking systems and more upbeat business confidence are encouraging companies to invest. US tax cuts and spending increases should materially boost US economic growth too. Although central banks are raising interest rates (in the US and UK) or withdrawing some monetary support (in Europe and China) they are doing so gradually. A potential problems, however, is whether low-level trade conflicts between the US and China become more serious. We expect more bond market volatility than we saw in 2017 and the short-term outlook will be determined by the path and speed of interest rate changes. From a fundamental perspective, credit remains on an improving trend, supported by a strong global economy and ongoing improvements in the European banking sector. Furthermore, US tax reform should lead to lower issuance and some corporate deleveraging. Although some progress has been made in Brexit negotiations, uncertainty around the ultimate economic impact affects sentiment towards UK commercial real estate. We envisage a period of low returns over the next five years, with the forecast annual total return slightly below the market income return. With income expected to be the main driver of returns, the degree of income risk potential tenant default or the ability to maintain income at lease events will be key to performance. Additional information Fund Management Charge 1.050% 1.050% 1.050% 1.050% 1.050% Total Annual Fund Charge* 1.63% 1.77% 1.83% 1.94% 1.96% Citicode 0N91 0N95 0N99 0N9D 0N9H Fund size in m as at 31/03/2018 1.58m 7.76m 23.24m 5.08m 2.25m *The Total Annual Fund Charge is the total of the Fund Management Charge (FMC) and additional expenses. 2

Annualised risk and return (as at 31/03/2018) 6% Performance 4% 2% 0% 0% 1% 2% 3% 4% 5% 6% 7% 8% Volatility Gross income reinvested, net of fund charges, GBP, Sourced from FE 2018 The chart shows the annualised volatility (risk) and annualised performance based on fund returns over the past three years to the date shown. Key Name Performance Volatility Stan Life MyFolio Multi Manager Income I Pn S4 1.98% 3.00% Stan Life MyFolio Multi Manager Income II Pn S4 2.26% 4.20% Stan Life MyFolio Multi Manager Income III Pn S4 3.36% 5.45% Stan Life MyFolio Multi Manager Income IV Pn S4 3.32% 6.35% Stan Life MyFolio Multi Manager Income V Pn S4 4.28% 7.84% The table shows the annualised volatility (risk) and annualised performance based on fund returns over the past three years to the date shown. Past performance is not a guide to future returns. The value of this investment and the income from it may go down as well as up and cannot be guaranteed. An investor may receive back less than their original investment. Current asset allocation (as at 31/03/2018) Defensive assets Money Market including Cash 4.30% 1.00% 1.00% 1.00% 1.00% Global Index Linked Bonds 6.30% 6.20% 2.70% - - Short Dated Global IL Bonds 4.80% 4.70% 1.20% - - Sterling Corporate Bonds 14.00% 6.40% 2.20% - - Short Dtd Sterling Corp Bonds 15.50% 5.90% 1.70% 0.50% - Global Corporate Bonds 10.00% 11.80% 5.40% 1.60% - Short Dated Global Corp Bonds 3.30% 4.00% 1.80% 0.80% - Absolute Return Bonds 7.00% 5.00% 2.30% 1.00% - Total 65.20% 45.00% 18.30% 4.90% 1.00% Growth assets UK Equities 3.70% 8.40% 11.70% 17.80% 22.65% US Equities 6.10% 10.40% 13.30% 18.90% 24.50% European Equities 3.00% 4.90% 6.20% 8.60% 11.20% Japanese Equities 2.90% 4.40% 5.30% 7.00% 8.65% Asia Pacific Equities 1.60% 2.70% 3.50% 4.80% 5.80% Emerging Market Equities 2.10% 3.20% 4.00% 5.30% 6.30% Global High Yield Bonds 2.90% 4.50% 6.70% 4.10% - Emerging Market Debt 1.70% 2.50% 3.50% 2.30% 0.50% UK Real Estate 3.60% 3.00% 9.20% 6.20% - Global REITs 1.20% 1.00% 3.00% 2.10% - Absolute Return 6.00% 10.00% 15.30% 18.00% 19.40% Total 34.80% 55.00% 81.70% 95.10% 99.00% 3

Holdings (as at 31/03/2018) Defensive assets Asset class Fidelity Global Inflation-Linked Bond Short Dated Global Index Linked Bonds 1.86% - - - - Fidelity UK Corporate Bond Sterling Corporate Bonds 6.89% 3.28% 1.12% - - L&G Short Dated Corporate Bond Index Short Dated Sterling Corporate Bonds 2.50% - - - - Payden Absolute Return Bond Absolute Return Bonds 0.67% 0.76% 0.45% 0.31% - PIMCO Funds GIS plc Global Investment Grade Global Corporate Bonds 5.01% 5.84% 2.83% 0.70% - Credit Robeco Global Credits Global Corporate Bonds 4.97% 5.83% 2.81% 0.70% - Robeco Global Credits Short Maturity Short Dated Global Corporate Bonds 3.70% 3.74% 1.56% 0.83% - Royal London Global Index Linked Global Index Linked Bonds 6.68% 6.01% 2.82% - - Royal London Short Duration Credit Short Dated Sterling Corporate Bonds 7.87% 2.97% 1.66% 0.63% - Royal London Short Duration Global Index Short Dated Global Index Linked Bonds 2.73% 4.94% 1.21% - - T Rowe Price Dynamic Global Bond Absolute Return Bonds 5.94% 3.89% 1.97% 0.46% - TwentyFour Absolute Return Credit Short Dated Sterling Corporate Bonds 4.77% 2.96% - - - TwentyFour Corporate Bond Sterling Corporate Bonds 6.87% 3.27% 1.12% - - Cash and Other Money Market including Cash 4.38% 0.99% 0.99% 1.57% 1.20% Total 64.84% 44.48% 18.54% 5.20% 1.20% Growth assets Asset class AQR Systematic Total Return Multi Asset Absolute Returns 1.40% 2.38% 2.96% 4.51% 4.75% Artemis Income UK Equities 1.18% 2.16% 1.55% 4.92% 7.57% Barings European High Yield Bond Global High Yield Bonds 0.69% 0.97% 1.27% 0.82% - BNY Mellon US Equity Income US Equities 1.75% 2.51% 3.21% 4.48% 5.91% Brookfield Global REITS Global REITs 1.27% 2.46% 2.74% 1.61% - Charlemagne Magna Emerging Markets Dividend Emerging Market Equities 1.91% 3.20% 3.60% 5.47% 6.32% Chelverton UK Equity Income UK Equities 0.36% 1.02% 1.14% 2.50% 2.32% Invesco Perpetual European Equity Income European Equities 3.47% 5.20% 6.59% 8.62% 11.16% Invesco Perpetual Global Targeted Income Multi Asset Absolute Returns 1.42% 2.48% 2.72% 4.55% 5.05% Janus Henderson UK Property Feeder UK Real Estate 3.35% 2.77% - - - Janus Henderson UK Property PAIF UK Real Estate - - 6.47% 3.99% - JPM US Equity Income US Equities 4.09% 4.54% 5.86% 8.28% 10.82% LF Morant Wright Nippon Yield Japanese Equities 2.61% 4.31% 5.17% 6.65% 8.09% M&G Property Portfolio UK Real Estate - - 2.76% 2.06% - Majedie UK Income UK Equities - 1.99% 3.57% 4.54% 5.86% Neuberger Berman EM Debt Local Currency Emerging Market Local Currency Bonds 2.30% 1.63% 3.91% 2.77% 0.41% Nomura US High Yield Bond Global High Yield Bonds 2.74% 3.83% 5.02% 3.26% - Schroder Asian Income Asia Pacific Equities 1.97% 3.22% 3.97% 5.08% 6.23% SLI Global Absolute Return Strategies Multi Asset Absolute Returns 1.41% 2.46% 5.91% 4.50% 4.94% Threadneedle Investment UK Equity Income UK Equities 1.83% 2.83% 5.27% 6.14% 7.21% Threadneedle US Equity Income US Equities - 3.08% 3.86% 5.51% 7.18% TM Fulcrum Diversified Core Absolute Return Multi Asset Absolute Returns 1.41% 2.48% 3.91% 4.54% 4.98% Total 35.16% 55.52% 81.46% 94.80% 98.80% 4

Important information The value of a fund can go down as well as up, and is not guaranteed. You may receive back less than the amount originally invested. Past performance is not a guide to the future. Any data contained herein which is attributed to a third party ( Third Party Data ) is the property of (a) third party supplier(s) (the Owner ) and is licensed for use by Standard Life Aberdeen*. Third Party Data may not be copied or distributed. Third Party Data is provided as is and is not warranted to be accurate, complete or timely. To the extent permitted by applicable law, none of the Owner, Standard Life Aberdeen* or any other third party (including any third party involved in providing and/or compiling Third Party Data) shall have any liability for Third Party Data or for any use made of Third Party Data. Past performance is no guarantee of future results. Neither the Owner nor any other third party sponsors, endorses or promotes the fund(s) or product(s) to which Third Party Data relates. *Standard Life Aberdeen means the relevant member of the Standard Life Aberdeen group, being Standard Life Aberdeen plc (SC286832) together with its subsidiaries, subsidiary undertakings and associated companies (whether direct or indirect) from time to time. This document is provided by Standard Life Investments Limited, registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Authorised and regulated in the UK by the Financial Conduct Authority. 2018 Standard Life Aberdeen. Images reproduced under licence. 5