Fund Factsheet Stakeholder Pension Portfolio 2

Market commentaryGovernment bonds experienced a bumpy quarter. Although risk aversion mounted in May on Sino-US trade concerns, bond yields were more heavily influenced by indications that US interest rates could rise more quickly than had been expected. Government bond prices in the US, Germany and the UK fell in response. Later, political uncertainty in Italy and Spain drove bond prices higher. June’s US interest-rate hike was accompanied by signals that two further increases would be necessary in 2018. Yields briefly rose, before renewed trade-war concerns drove them down again. Overall, the 10-year UK gilt yield fell from 1.35% to 1.28%. Yields on long-dated government bonds moved up, however, with the 30-year gilt yield rising from 1.71% to 1.74%. Meanwhile, UK inflation held steady at 2.4% in April and May, down slightly from 2.5% in March. The US equity market made gains, despite mounting concerns about a trade war with China. Investors focused on the strength of the economy (unemployment hit a 49-year-low) and strong corporate earnings. After much toing and froing, President Trump met North Korea’s Kim Jong-un, although the market reaction was muted. Asian markets were down over the quarter, as US/China relations deteriorated. Meanwhile, the Fed’s decision to raise rates propelled the US dollar higher, which put pressure on many Asian currencies and stocks. Japanese equities delivered modestly positive returns, as the yen’s weakening in the face of higher long-term US interest rates lifted a number of exporters. European equity markets also rose. Economic growth remained positive, and corporate earnings were good. However, political risk returned after Italy’s president rejected the government-in-waiting’s choice of finance minister. After protracted negotiations, a coalition government was eventually installed. Spain’s Prime Minister Rajoy was ousted after a no-confidence vote.(As at 30/06/2018. Source: Aberdeen Asset Management Limited)

Portfolio features• Possible to achieve a better trade off between risk and return by spreading or diversifying investments.• Your portfolio is diversified to get the best return for your own risk profile.• This factsheet shows the split of your investments and the performance.• The performance of all funds in your portfolio is constantly monitored and formally reviewed on a regular basis by a dedicated investment

committee.

(Pre 30/07/07) As at 30 June 2018

Fund performance

30 Jun 2013 30 Jun 2014

30 Jun 2014 30 Jun 2015

30 Jun 2015 30 Jun 2016

30 Jun 2016 30 Jun 2017

30 Jun 2017 30 Jun 2018

Portfolio Return 10.2% 4.2% 2.0% 21.2% 8.4%

Halifax International Growth (Pension) 6.5% 8.2% 9.8% 23.6% 9.2%

Halifax UK FTSE All Share (Pension) 11.8% 2.4% -1.3% 20.1% 8.0%

Cumulative investment performance - over 5 years

Fund

Portfolio weights

Halifax UK FTSE All Share (Pension) 70.0%

Halifax International Growth (Pension) 30.0%

Jul 13 Oct 14 Jan 16 Apr 17 Jul 18

0%

25%

50%

75%

Powered by data from FE

Important notes: Past performance is not a guide to future performance. The investment’s value and any income from it will fall as well as rise and may be affected by market and currency movements. You may get back less than originally invested. Cash on deposit is more secure, generally more accessible and provides greater certainty of growth.

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.

Contact details: For further information please contact: your local Halifax branch or visit our website: www.halifax.co.uk/investments

OEICS provided by HBOS Investment Fund Managers Limited (Registered in England No. 941082). Registered Office: Trinity Road, Halifax, West Yorkshire HX1 2RG. Authorised and regulated by the Financial Conduct Authority. Financial Services Register number 119223.