Scottish Widows Solutions Funds An Introduction to the Solutions Funds Following the success of both the Scottish Widows Multi Manager Portfolio funds and SWIP Equity Funds, Scottish Widows decided to launch a new range of innovative solutions for your clients investment needs. There are three key asset classes used within the funds, the fixed interest and property portions will consist of funds managed by SWIP whilst the equity portions will be investing mainly in multi-manager funds operated by SWIP and managed by Russell Investments. The investment management of the funds has then been delegated to a number of different fund managers. SWIP, while retaining overall responsibility for the performance and objectives of the funds, have delegated the fund manager research and selection, plus day to day management of the funds to Russell Investments. SWIP and Russell meet quarterly to review the performance of the funds and the fund managers comprising the funds. Multi-manager investing aims to reduce a portfolio's exposure to any single individual investment expert (fund manager or investment management firm). Investing in many managers rather than one can help spread the risk. Occurrences such as staff departures, company mergers and acquisitions and other disruptions to the investment management activities of the manager cannot always be sidestepped - the multi-manager approach will help to dilute any effect, as there are many fund managers within the fund. Materials and Factsheets A range of materials have been developed by Scottish Widows with the support of Russell Investments to support these innovative funds. Current versions of these documents are available from your Scottish Widows Contact or from the Scottish Widows Financial Adviser Extranet. Asset Allocation The seven solutions funds differ according to their weights in different asset classes, the Cautious Solutions are heavily bond weighted whilst the Adventurous Solution holds only equity with the remainder somewhere in between. The lists of funds below show the building blocks of the Solutions Funds, detailed asset allocations can be found in the solutions fact sheets via the link above. The Underlying Funds Equity SWIP Multi-Manager UK Equity Income SWIP Multi-Manager UK Equity Growth SWIP Multi-Manager UK Equity Focus SWIP Multi-Manager International Equity Russell US Equity Russell US Quant Russell Continental European Equity Russell Japan Equity Russell Pacific Basin Equity Bonds Scottish Widows UK Index-Linked Tracker Scottish Widows Gilt Scottish Widows Corporate Bond Scottish Widows International Bond SWIP Defensive Gilt SWIP Corporate Bond Plus SWIP European Corporate Bond SWIP High Yield Property Scottish Widows Property Trust This material is for use by UK independent financial advisers only. It is not intended for onward transmission to private customers and should not be relied upon by any other person.

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