Pension Portfolio Three Pension PDF Factsheet

FACTSHEET

30 November 2020

Pension Fund

Scottish Widows Pension Portfolio Three Pension (Series 2)

Fund Aim

The Fund aims to deliver long-term growth by investing in other funds. The Fund invests primarily in equities including a small proportion in listed property securities, with a proportion in fixed interest securities, by investing predominately in passive* index tracking funds. A small proportion may be actively managed. The equity investments cover a mix of geographic regions and can include the UK, other developed markets and emerging markets. The fixed interest securities can be in sterling or other currencies, including emerging markets, and may be issued by governments or companies. The property securities can be in the UK and overseas. The Fund may also invest a small proportion in cash. Non-sterling investment may be hedged back to sterling. Hedging aims to reduce the effect of fluctuations in the exchange rates between the currency of the asset and the currency of the Fund.This Fund will be reviewed periodically by Scottish Widows. In future the Fund could be invested in different funds and additional asset types, though the Fund will continue to invest primarily in equities. *Passive management is where the fund manager aims to match a benchmark index and will buy, sell or hold investments depending on the components of that index. Active management is where the fund manager seeks to add value by making decisions on which investments to buy, sell or hold depending on, for example company, market or economic factors.

`Fund Changes'

Asset Allocation (as at 30/09/2020)

UK Equities US Equities Other Europe ex UK Equities Global Emerging Market Equities Global Fixed Interest US Corporate Fixed Interest UK Fixed Interest Japanese Equities Asia Pacific ex Japan Equities

18.1% 17.9% 15.8% 11.8%

8.3% 7.6% 6.6% 5.9% 5.0% 3.0%

The composition of asset mix and asset allocation may change at any time and exclude cash unless otherwise stated

This document is provided for the purpose of information only. This factsheet is intended for individuals who are familiar with investment terminology. Please contact your financial adviser if you need an explanation of the terms used. This material should not be relied upon as sufficient information to support an investment decision. The portfolio data on this factsheet is updated on a quarterly basis.

Information Statement

We have made a number of asset allocation adjustments to adapt to the changing market outlook. We are reducing the `home bias' investment in UK equities and weighting regional equities more in line with a marketcapitalisation approach. We have also introduced a broader range of investments by including Real Estate Investment Trusts to gain exposure to property, Emerging Market Government Debt, and a small allocation to Cash. We are also adding currency hedging on a portion of our overseas developed market equities to help optimise returns in flat or volatile markets. To take account of environmental, social and governance (ESG) considerations we are allocating some of the fund's equities exposure to the BlackRock ACS Climate Transition World Equity Fund. This fund focuses on companies that better manage the risks and opportunities of climate change by decreasing carbon emissions, increasing clean technology and improving water and waste management. Find out more at the 'Fund Changes' link.

Basic Fund Information

Series 2 Unit Launch Date

06/02/2006

Fund Size

?8,117.2m

Sector

ABI Specialist

ISIN

GB00B09CD306

MEX ID

SWYLE2

SEDOL

B09CD30

Manager Name

Philip Chandler

Manager Since

07/02/2020

Top Ten Holdings

(as at 30/09/2020) SSGA AUT UK EQUITY TRACKER SSGA ACS NTH AM INDEX EQUITY SCOTTISH WIDOWS CORPORATE BOND TRACKER FUND ABERDEEN GLOBAL CREDIT FUND SSGA AUT EUR X UK EQUITY TKR SSGA MPF EM INDEX JAPAN EQUITY TRACKER SSGA AUT AP X JAPAN EQUITY TKR SSGA MPF AP X JAPAN EQUITY ISHARES GLOBAL PROP SEC TOTAL

18.1% 17.5% 13.8%

12.1% 11.8% 8.3% 4.9% 3.0% 2.9% 2.2% 94.6%

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Past Performance

75%

50%

25%

0%

Dec 15

Mar 17

Jun 18

Sep 19

Dec 20

30/11/2015 - 30/11/2020 Powered by data from FE fundinfo

Scottish Widows Pension Portfolio Three Pension Series 2

Past performance is not a guide to future performance. Investment value and income from it may fall as well as rise, as a result of market and currency movements. You may not get back the amount originally invested.

Discrete Performance

30/09/2019 - 30/09/2018 - 30/09/2017 - 30/09/2016 - 30/09/2015 30/09/2020 30/09/2019 30/09/2018 30/09/2017 30/09/2016

Scottish Widows Pension Portfolio Three Pension (Series 2)

-1.4%

5.7%

5.4%

8.1%

25.3%

Information is shown as unavailable if prior to the launch of fund.

Cumulative Performance

30/10/2020 - 30/08/2020 - 30/11/2019 - 30/11/2017 - 30/11/2015 30/11/2020 30/11/2020 30/11/2020 30/11/2020 30/11/2020

Scottish Widows Pension Portfolio Three Pension (Series 2)

7.7%

5.4%

3.8%

13.0%

47.6%

Source: FE fundinfo as at 30/11/2020

Performance figures are in ? Sterling on a single pricing basis, with income (where applicable) reinvested net of UK tax and net of total annual fund charges. These figures do not include any initial charge or other product charge(s) that may be applicable.

Fund Rating Information

Overall Morningstar

-

Rating

Morningstar Analyst

-

Rating

FE fundinfo Crown Rating

The FE fundinfo Crown Rating relates to this fund. However, the Morningstar ratings are based on the underlying fund. These are supplied by the respective independent ratings agencies and are the latest available at the time this factsheet was issued. Past performance is not a reliable indicator of future results.

Other Information

The views, opinions and forecasts expressed in this document are those of the fund manager. Investment markets and conditions can change rapidly and as such the views expressed should not be taken as statement of fact, nor should reliance be placed on these views when making investment decisions.

Scottish Widows 15 Dalkeith Road Edinburgh EH16 5BU

Not all products have access to this fund, please refer to the relevant product literature. Full terms and conditions are available on request from us using the contact details provided. Charges, terms and the selection of funds we make available may change. Information on the general and specific risks associated with investing in this fund is available in the relevant fund guide, or KIID where applicable. We may change the investment approach rating for the fund. All information is sourced from Scottish Widows or the relevant fund management group unless otherwise stated.

Quarterly Fund Manager Review

Global equities gained in Q3 but regional performances diverged with Asia and the US outperforming Europe and the UK. US shares advanced in Q3, supported by signs of economic recovery and loose monetary policy. The Federal Reserve will now use average inflation targeting in setting interest rates, allowing for temporary overshoots in inflation. Eurozone shares were virtually flat, lagging behind global markets as Covid-19 infections rose sharply in several countries and local restrictions to curb the virus were reintroduced. UK equities fell during the period ? extending their year-to-date underperformance of other regions ? with the market's significant exposure to poorly performing stocks in the oil and financial sectors proving unhelpful. Japanese shares gained over the quarter, despite the yen strengthening. Shinzo Abe resigned as prime minister and was replaced by Yoshihide Suga. Emerging market equities advanced in Q3 2020, despite a further acceleration in new cases of Covid-19 in certain countries, and an escalation in USChina tensions. Government bond yields were mixed. The US 10-year yield finished at 0.68%, three basis points (bps) higher, with the UK 10-year yield six points higher at 0.23%. The UK yield fell in September as Brexit uncertainty resumed and there was further discussion of negative interest rates from the Bank of England. Corporate bonds enjoyed a decidedly positive quarter, as riskier assets were broadly buoyant and monetary policy helped anchor yields at low levels. Investment grade debt returned 1.8%, while high yield debt returned 4%. Sectors worst affected by Covid, such as retail and leisure, recovered.

Philip Chandler 30/09/2020 The views, opinions and forecasts expressed in this document are those of the fund management house. Investment markets and conditions can change rapidly and as such the views expressed should not be taken as statements of fact, nor should reliance be placed on these views when making investment decisions.

Scottish Widows Limited. Registered in England and Wales No. 3196171. Registered Office in the United Kingdom at 25 Gresham Street, London EC2V 7HN. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services Register number 181655.

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