Five Year Performance Review 2023

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Five-Year Performance Review 2023

A comprehensive review of structured product performance covering all intermediary distributed products that matured in 2018-2022

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YOUR STRUCTURED PRODUCT PROVIDER SINCE 2002

WWW.IDAD.CO.UK FOR PROFESSIONAL CLIENTS AND ELIGIBLE COUNTERPARTIES AS DEFINED BY THE FCA ONLY. IDAD LIMITED IS AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY FCA FRN 740499. IDAD IS A LIMITED LIABILITY COMPANY REGISTERED IN ENGLAND AND WALES NUMBER 4521366. IDAD LTD DOES NOT OFFER INVESTMENT ADVICE NOR MAKE ANY RECOMMENDATION REGARDING ANY INVESTMENTS.

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Welcome to our 2023 review, which provides a thorough overview of the retail structured products sector covering the maturities that occurred in 2022 and the preceding four years. We are happy to reflect on yet another positive year for the retail sector, with the overwhelming majority of investors with maturing structures being rewarded; over 98% of plans maturing in 2022 did so achieving a positive outcome for investors. Experienced advisers will know that attempting to time the market or predict the extent of short-term direction is a futile exercise. Understanding that the majority of market movements are just noise, we believe that the cap in returns on most structured products are more than an acceptable level for most and since the terms are defined at the outset, they are highly unlikely to disappoint. The reward for time in the market outweighs the headaches of attempting to time the market, especially if you get it wrong. Having weathered the impact of the pandemic collapse and the socioeconomic impacts that followed, equity markets put in a strong shift in 2021, returning to pre-pandemic highs. Many expected 2022 to be somewhat calmer, what we actually witnessed was an onslaught of volatility. Over the course of 2022 the FTSE 100 only fell 0.71% with an average closing level of 7,357, however this does not paint a proper picture of the true instability faced. Following the Russian invasion of Ukraine, the FTSE 100 tumbled below the 7,000 mark, yet a month later it was just shy of 7,700. This yo-yo movement endured throughout 2022, causing headaches for investors searching for some sort of direction. The dominant shape of retail structured products in the UK market are FTSE 100 linked autocall / kick-out contracts. Typically, these are designed to mature on the first relevant anniversary that the FTSE 100 Index is above a specified reference level – generally the level recorded at outset or an annual reducing percentage of it.

The chart below shows the FTSE 100 over the period 2018 to 2022, the distribution of FTSE 100 Index linked capital-at-risk autocall maturities and corresponding annualised gains. The average annualised return of these being 7.06% over an average term of just over two and a half years. Despite the significant volatility over the years, it was not extreme enough to lead to any prolonged gap in maturities, other than during the pandemic, when any resulting missed maturities were simply deferred to a subsequent year with a higher potential gain.

FTSE 100 linked Capital at Risk Autocall Maturities 2018-2022

8,000 7,750 7,500 7,250 7,000 6,750 6,500 6,250 6,000 5,750 5,500 5,250 5,000 4,750

16%

14.5%

14%

12%

10%

FTSE 100

4.76%

FTSE 100 2020

2018 2021

2019 2022

Average Annualised Return (%)

01/01/2018

01/01/2019

01/01/2020

01/01/2021

01/01/2022

01/01/2023

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2022 witnessed an uplift in both performance and issuance on the previous year. 634 plans matured throughout 2022, a 20% increase on the prior year and the largest haul in maturities in the last five years. Better yet, 624 matured with positive gains for investors whilst the remaining 10 were deposit-based plans which did not expose capital to risk of loss and returned the original investment – no plan realised a capital loss for investors in 2022. In comparison to the last five years, the headline numbers for 2022 are far better than the average since 2018. 2022 outperformed the five year average in terms of the number of products producing positive returns, with few returning capital only and not one realising a loss. The average annualised return distribution also provided better results with a tighter spread compared to the previous four years individually and the five year average as a whole - see below.

Like any investment, structured products do not guarantee a positive return and beyond deposits even the most vanilla structured investments could give rise to losses in very adverse circumstances. We remain outspoken about the fact that sensibly constructed, longer maximum duration, single index linked products are proven to give favourable returns and will not disappoint other than in very extreme circumstances. All of us here at Lowes and StructuredProductReview.com hope that you find the analysis this review provides informative. If you would like to discuss any aspect of this review or structured products generally, please do not hesitate to get in touch.

All Maturities - Average Annualised Returns (%)

All Maturities 2018-22

10.00%

700

8.00%

600

6.00%

500

4.00%

400

2.00%

300

No. of Plans

0.00%

200

Average Term (years)

-2.00%

100

-4.00% Average Annualised Return (%)

2022

2021

2020

2019

2018

Average

2022

2021

2020

2019

2018

Average

All Products

Lower Quartile

Upper Quartile

No. of Positive Returns

No. Realising a Loss

No. Returning Capital Only

Average Term

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Redefining structured products and structured deposits for professional advisers and their clients

Tempo Structured Products (‘Tempo’) was established over the course of 2016-2018, by a highly experienced team, with substantial investment of time, resources and capital by the Alpha Real Capital family of companies. Our aim is to ‘redefine structured products and structured deposits’ for professional advisers and their clients. Our approach to this is straightforward, focusing on ‘doing the right things - and doing simple well’ . This includes: a client-centric, best practice approach to governance and compliance; putting savers and investors first; a bar-raising level and calibre of collateral materials, input and support for professional advisers; and a commitment to ‘deliberately defensive’ products.

Our aim is to present a high calibre structured product provider, a carefully considered approach to structured products and structured deposits and a level of support and service which professional advisers and their clients can be genuinely confident in. Our entire emphasis is on working closely with professional advisers to strengthen their knowledge and understanding of the value that can be gained from client-centric, best practice use of structured products and structured deposits. It’s time to rethink what you think you know about structured products and structured deposits.

To find out more about Tempo, our structured product and structured deposit plans, the support that we provide for professional advisers, or to discuss any aspect of structured products and /or structured deposits: Adviser support line: +44 (0)20 7391 4551 Email us: info@tempo-sp.com Visit our website: www.tempo-sp.com

03-5386-0623

For Professional Advisers. Capital is at risk. Tempo Structured Products is an appointed representative of TIME Investments, which is authorised and regulated by the Financial Conduct Authority (FCA No 534723). Tempo Structured Products and TIME Investments are part of the Alpha Real Capital family of companies (‘Alpha’) , which benefit from materially common ultimate beneficial ownership.

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Headline Data

Structured Products Maturities Number of product maturities

2018

2019

2020

2021

2022

Average

385 362

334 315

235 163

529 483

634 624

423 389

Number of products producing positive returns Number of products returning capital only

56 16

Number of products which lost capital Average duration / term (years)

3.77

3.81

4.78

3.39

3.24

3.63

Average Annualised Returns All products

6.35% 5.73% 3.52% 6.20% 6.45% 5.93% 9.27% 8.95% 8.59% 9.34% 8.97% 9.07% 2.91% 1.81% -3.09% 2.56% 3.99% 2.31%

Upper quartile Lower quartile

Key Takeaways g 634 plans matured in 2022, a 20% increase from 2021 and largest maturity haul in the last five years. g No maturing plan in 2022 realised a capital loss for investors, the first time since 2018. g 624 of the 634 2022 maturities generated positive returns for investors, with the remaining 10 being deposit-based plans which did not expose capital to risk of loss and returned the original investment. g The 634 maturities gave an average annualised return of 6.45% with upper and lower quartiles of 8.97% and 3.99% respectively. Resultantly giving a tighter spread when compared with the five year average annualised return of 5.93% with upper and lower quartiles of 9.07% and 2.31% respectively. g 2022 represented a more successful year in comparison to the five-year average: g 98.42% of maturing plans in 2022 generated positive returns, outperforming the five year average of 91.96%. g Only 1.58% of maturities returned capital only compared to a five-year average of 6.86%.

g The reoccurring theme from the last five years, is that all capital at risk autocalls linked to the FTSE 100 & CSDI only*, maturing with positive returns for investors. Average annualised return for FTSE only autocalls in 2022 was 7.06% over an average duration of 2.54 years, with upper and lower quartiles of 9.28% and 5.42% respectively. g The 554-maturing capital at risk plans collectively produced an annualised return of 6.89% over an average duration of 3.04 years, beating the five-year average by 0.21%. g The FTSE 100 continued to be the most prevalent underlying measurement utilised in isolation, making up over three-quarters of maturities in 2022 and outstripping the five year average by almost 200 maturities. g 417 of capital at risk maturities linked to the FTSE 100 produced annualised return of 6.66% over an average duration of three years, underperforming the year before by 0.35% and below the five-year average by 0.17%. the upper quartile returned 8.96% per year whereas the lower quartile returned 4.78% per year. g No maturing FTSE 100 only linked capital at risk autocall plan has failed to mature with a gain for investors in the UK retail space since 2013.

Notes Lowes’ database is maintained with details of all structured products launched in the UK that are promoted through Independent Financial Advisers and other wealth managers. It does not include private placement trades or, products distributed solely through closed or, restricted channels. 5 year averages are calculated from all products over a 5 year period. Please note that 5 year averages for ‘Number of’ have been rounded to the nearest whole number and therefore the constituent parts may not equal the sum of maturities. Where 5 year average figures are quoted for duration and annualised returns, they are calculated using weighted average values. Past performance is not a guide to future performance. Investments of this nature carry risks to capital.

*The FTSE CSDI measures the performance of the same 100 shares in the same weightings as the FTSE 100 and the two are over 99% correlated - we have therefore grouped the two underlyings for the purpose of this review and refer to them collectively as FTSE.

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Arcus Partners – A new name with familiar faces

Arcus Partners designs and distributes defined return products to the retail market through our team of highly experienced professionals. We offer a fully digital service through our online portal, Arcus for Advisers , bringing value-driven capital at risk and capital protected structured products to the UK IFA market. The team’s adviser relationships span over many years, with an understanding of the investment challenges facing IFAs and their clients. Our objective is to listen to advisers and, utilising our extensive knowledge and expertise, provide solutions that are carefully tailored for their clients. The Arcus online portal provides a foundation where advisers can find a comprehensive range of structured product information and solutions. Through our fully digital process, IFAs can onboard and select products to be offered to their clients in a user-friendly, efficient environment. Investec’s decision to exit the UK structured product market led to the birth of Arcus for Advisers. Our platform is based on the same technology as the “Investec for Advisers” online platform, designed

by members of the Arcus team for Investec’s structured product business. Arcus Partners (AR) Ltd acts as an appointed representative of Dura Capital Ltd. INVESTEC MATURITIES

IFAs can now access their full back book of live Investec products, including all previous paper applications, via, Investec for Advisers. We have a special arrangement with Investec Structured Products which allows IFAs to rollover their clients’ maturing plans, into our Arcus range. All paper-free and with minimal fuss. To utilise this rollover process, your firm must be registered on the Arcus for Advisers portal.

Sales, product and general enquiries: Telephone: 0204 582 2798 Email: salessupport@arcus.partners Web: arcusforadvisers.com Portal: portal.arcusforadvisers.com Investec Transfers: investecforadvisers.com

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Reverse Convertible Note/ Fixed Income plans are specific type of structured investment that generate unconditional income over a fixed term. Capital is still placed at risk, albeit with a degree of downside protection through the incorporation of a capital protection barrier. To compensate for the risk of loss, fixed income plans pay interest that is greater than conventional debt from the same issuer, maturity and seniority – potentially making them attractive for income seeking investors. The main risks stemming from Fixed Income Plans are first of all counterparty risk, in the event that the issuer becomes insolvent or defaults, a catastrophic loss could result. Then there is market risk, observed at the end of the term when falls in the underlying over the term could lead to losses in the event the market drops below the protection level. Twenty pure fixed income plans were issued in 2022 (by strike date), paying either monthly, quarterly or annual income over terms ranging 2-6 years, with the majority utilising 5 year terms. The Bank of England Base Rate commenced 2022 at 0.25% and consistently rose to 3.5% in December 2022, whilst at the time of writing we are at 4.25% and unsure of how much further we have to go. The chart opposite shows the improvement in annual income terms seen as the Base Rate rose throughout the year. This may well be a continued theme for 2023, if a sustained base rate persists with no rate cuts in sight, fixed income structured plans could become an important component of portfolios. Reverse Convertibles 2022 – Capital at Risk Fixed Income plans

Capital at Risk Fixed Income Plan Annual Return vs UK Base Rate

10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%

Bank Rate

Plan Referenced Annual Return

01/01/2022

02/01/2022

03/01/2022

04/01/2022

05/01/2022

06/01/2022

07/01/2022

08/01/2022

09/01/2022

10/01/2022

12/01/2022

01/01/2023

BoE Base Rate

Capital at Risk Fixed Income Annual Return

Deposit Plan Annual Return

We can see that capital at risk fixed income terms have clearly improved over the last year, with one stock linked plan paying just shy of 9% per year in exchange for increased risk of capital loss at the end of term. Given the magnitude and speed of rate hikes, deposit-based plans towards the latter end of the year emerged in competition with the capital at risk fixed income plans. Whilst the vast majority of deposit-based plans issued are autocall products, two fixed income deposit plans were released in November, one paying 5.5% per year! One important factor to note is the rise in deposit-based plans, the effect of rising interest rates has had a clear impact on annual returns offered by structured deposits. Given the significantly lower level of risk than a capital at risk plan, thanks

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Have you discovered it yet?

The 10:10 Plan It may have been staring you in the face... Developed in co-operation with Lowes, drawing on decades of experience to be amongst the best propositions available on the market.

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CAPITAL AT RISK.

Mariana UFP LLP is registered in the UK (No: OC363748). Mariana UFP LLP is authorised and regulated by the FCA (No: 551170). Lowes Structured Investment Centre is a trading style of Lowes Financial Management Limited. Authorised and Regulated by the Financial Conduct Authority (No: 114650)

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Analysis and Annualised Performance 2018 - 2022

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Analysis and Annualised Performance 2018 - 2022 (All Products) By Product Type Capital at Risk

Deposits and Capital Protected

Structured Product Maturities

2022 2021

2020 2019 2018 Average

2022 2021

2020 2019 2018 Average

All products Number of product maturities

554 554

80 70 10

459 444

173 133

243 236

270 268

340 327

70 39 31

62 30 32

91 79 12

115 94

84 62

Number of products producing positive returns Number of products returning capital only

0 0

9 6

24 16

3 4

2 0

8 5

Number of products which lost capital Average duration / term (years)

3.04

4.63

3.19

4.53

3.32

2.96

3.26

4.69

5.49

5.13

5.67

5.16

Average annualised return All products

6.89% 9.15% 4.98%

3.41% 4.99% 1.20%

6.82% 4.22% 6.74% 7.55% 6.68% 9.57% 9.22% 9.38% 9.66% 9.38% 4.23% -4.01% 3.81% 5.62% 3.80%

2.13% 1.55% 3.05% 3.53% 2.87% 4.87% 4.01% 5.07% 5.63% 5.02% 0.00% 0.00% 0.55% 0.52% 0.49%

Upper quartile Lower quartile

Capital at Risk Plans 2018-22

Deposits and Capital Protected Plans 2018-22 140 120 100

600 500 400 300 200 100 0

6 5 4 3 2 1 0

80 60 40 20 0

Positive Returns Capital Only Lost Capital Average Term

Positive Return Capital Only Average Term

2022

2021

2020

2019

2018

Average

2022 2021

2020

2019

2018

Average

10% 8% 6% 4% 2% 0%

Lower Quartile All Products Upper Quartile

-2% -4% -6% Average Annualised Returns %

0% Average Annualised Returns % 2022 2021

2022

2021

2020

2019

2018

Average

2020

2019

2018

Average

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Analysis and Annualised Performance 2018 - 2022 (FTSE Only)*

By Product Type

Capital at Risk

Deposits and Capital Protected

Structured Product Maturities

2022 2021

2020 2019 2018 Average

2022 2021

2020 2019 2018 Average

FTSE Only Number of product maturities

417 417

69 65

273 272

86 77

160 160

192 192

226 224

55 35 20

32 17 15

60 60

68 68

57 49

Number of products producing positive returns Number of products returning capital only

0 0

4 0

9 0

0 0

0 0 3

2 0

0 0

8 0

Number of products which lost capital Average duration / term (years)

3.01

4.61

2.88

4.24

3.36

3.12

4.48

5.35

4.87

5.58

4.96

Average annualised return All products

6.66% 8.96% 4.78%

3.75% 4.92% 2.39%

7.01% 5.68% 6.81% 7.45% 6.83% 9.57% 8.48% 8.99% 9.52% 9.17% 5.02% 2.43% 5.03% 5.70% 4.85%

2.58% 1.82% 3.81% 4.57% 3.51% 5.10% 4.17% 5.19% 5.77% 5.13% 0.00% 0.00% 2.30% 3.42% 1.89%

Upper quartile Lower quartile

All FTSE Only Capital at Risk Plans 2018-22

All FTSE Only Deposits and Capital Protected Plans 2018-22

450 400 350 300 250 150 100 50 0

4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

80 70 60 50 40 30 20 10 0

6 5 4 3 2 1 0

No. of Positive Returns No. Returning Capital Only No. Realising Loss Average Term

No. of Positive Returns No. Returning Capital Only Average Term

No. of Plans

Average Term (Years)

2022

2021

2020

2019

2018

Average

2022

2021

2020

2019

2018

Average

10%

Lower Quartile All Products Upper Quartile

0% Average Annualised Returns %

Average Annualised Returns %

2022

2021

2020

2019

2018

Average

2022

2021

2020

2019

2018

Average

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Analysis and Annualised Performance 2018 - 2022 (Non-FTSE Only) By Product Type Capital at Risk

Deposits and Capital Protected

Structured Product Maturities

2022 2021

2020 2019 2018 Average

2022 2021

2020 2019 2018 Average

Non-FTSE Only Number of product maturities

137 137

186 172

87 56 15 16

83 76

78 76

114 103

31 19 12

47 26 21

27 13 13

5 6 0

Number of products producing positive returns Number of products returning capital only

13 17

0 0

8 6

3 4

2 0

6 5

Number of products which lost capital Average duration / term (years)

3.14

4.73

3.65

4.82

3.24

2.85

3.54

5.47

5.64

5.65

5.8

5.60

Average annualised return All products

7.60% 9.35% 6.17%

1.30% 4.25% 0.00%

6.54% 2.78% 6.59% 7.82% 6.40% 9.48% 9.85% 10.04% 9.96% 9.65% 3.14% -8.29% 1.69% 5.52% 2.24%

0.50% 1.27% 1.58% 2.03% 1.66% 1.88% 3.70% 4.22% 4.94% 4.46% 0.00% 0.00% 0.00% 0.00% 0.00%

Upper quartile Lower quartile

All Non-FTSE Only Capital at Risk Plans 2018-22

All Non-FTSE Only Deposits and Capital Protected Plans 2018-22

200 180 160 140 120 100

6 5 4 3 2 1 0

50 45 40 35 30 25 20 15 10

7 6 5 4 3 2 1 0

No. of Positive Returns No. Returning Capital Only No. Realising Loss Average Term

80 60 40 20 0

No. of Positive Returns No. Returning Capital Only Average Term

No. of Plans

Average Term (Years)

5 0

2022

2021

2020

2019

2018

Average

2022

2021

2020

2019

2018

Average

10% 8% 6% 4% 2% 0%

-2% -4% -6% -8% -10% Average Annualised Returns %

Lower Quartile All Products Upper Quartile

Average Annualised Returns %

2022

2021

2020

2019

2018

Average

2022

2021

2020

2019

2018

Average

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Analysis and Annualised Performance by Product Shape - Autocall/Kick-Out Products

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Analysis and Annualised Performance by Product Shape - Autocall/Kick-Out Products (All Products) By Product Type Capital at Risk Deposits and Capital Protected Structured Product Maturities 2022 2021 2020 2019 2018 Average 2022 2021 2020 2019 2018 Average

All products Number of product maturities

433 433

22 22

395 386

87 67 13

158 152

187 185

252 245

5 4

19 15

14 10

Number of products producing positive returns Number of products returning capital only

8 4 0

0 0

3 3

2 0

5 2

9 0

4 0

Number of products which lost capital Average duration / term (years)

2.73

3.87

2.9

3.18

2.35

2.18

2.69

3.60

5.71

3.63

3.67

4.02

Average annualised return All products

7.22% 9.40% 5.56%

4.17% 5.59% 3.04%

7.07% 4.47% 7.16% 7.88% 7.07% 9.69% 9.84% 9.90% 9.72% 9.63% 4.88% -5.17% 4.00% 6.18% 4.50%

3.99% 0.29% 2.94% 2.77% 3.00% 5.67% 0.97% 4.12% 4.38% 4.29% 0.00% 0.00% 0.54% 0.00% 1.13%

Upper quartile Lower quartile

Capital at Risk Autocall Plans 2018-22

Deposits and Capital Protected Autocall Plans 2018-22

500 450 400 350 300 250 150 100 50 0 10% 8% 6% 4% 2% 0%

3.5 3 2.5 2 1.5 1 0.5 0

6 5 4 3 2 1 0

No. of Positive Returns No. Returning Capital Only No. Realising Loss Average Term

No. of Positive Returns No. Returning Capital Only Average Term

No. of Plans

Average Term (Years)

2022

2021

2020

2019

2018

Average

2022

2021

2020

2019

2018

Average

Lower Quartile All Products Upper Quartile

-2% -4% -6% Average Annualised Returns %

0% Average Annualised Returns %

2022

2021

2020

2019

2018

Average

2022

2021

2020

2019

2018

Average

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Analysis and Annualised Performance by Product Shape - Autocall/Kick-Out Products (FTSE Only)* By Product Type Capital at Risk Deposits and Capital Protected Structured Product Maturities 2022 2021 2020 2019 2018 Average 2022 2021 2020 2019 2018 Average

FTSE Only Number of product maturities

307 307

20 20

227 227

40 40

97 97

128 128

160 160

4 4 0 0

1 1

15 15

8 8 0 0

10 10

Number of products producing positive returns Number of products returning capital only

0 0

Number of products which lost capital Average duration / term (years)

2.54

3.91

2.47

2.33

2.15

2.40

3.00

3.38

Average annualised return All products

7.06% 9.28% 5.42%

4.05% 5.27% 2.93%

7.23% 7.31% 7.41% 7.71% 7.27% 9.70% 9.59% 9.48% 9.40% 9.46% 5.45% 5.71% 5.71% 6.32% 5.62%

4.99% 2.91% 3.72% 4.16% 4.02% 5.67% 2.91% 4.13% 4.42% 4.70% 4.31% 2.91% 2.97% 3.85% 3.15%

Upper quartile Lower quartile

FTSE Only Capital at Risk Autocall Plans 2018-22

FTSE Only Deposits and Capital Protected Autocall Plans 2018-22

350 300 250 150 100 50 0

2.6 2.55 2.5 2.45 2.4 2.35 2.3 2.25 2.2 2.15 2.1

6 5 4 3 2 1 0

No. of Plans

No. of Positive Returns Average Term

Average Term (Years)

2022

2021

2020

2019

2018

Average

2022

2021

2020

2019

2018

Average

10%

Lower Quartile All Products Upper Quartile

0% Average Annualised Returns %

2022

2021

2020

2019

2018

Average

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Analysis and Annualised Performance by Product Shape - Autocall/Kick-Out Products(Non-FTSE Only) By Product Type Capital at Risk Deposits and Capital Protected Structured Product Maturities 2022 2021 2020 2019 2018 Average 2022 2021 2020 2019 2018 Average

Non-FTSE Only Number of product maturities

126 126

2 2 0 0

168 159

47 27 13

61 55

59 57

92 85

9 0 9 0

4 0 4 0

Number of products producing positive returns Number of products returning capital only

0 0

3 3

2 0

5 2

4 0

Number of products which lost capital Average duration / term (years)

3.2

3.50

3.49

3.91

2.66

2.24

3.18

6.01

6.00

5.00

5.56

Average annualised return All products

7.59% 9.62% 6.14%

5.45% -

- - -

6.85% 2.06% 6.76% 8.26% 6.73% 9.56% 10.04% 10.64% 10.29% 9.86% 4.16% -10.31% 1.13% 6.15% 3.08%

0.45% 2.25% 0.00%

0.61%

- -

Upper quartile Lower quartile

Non-FTSE Only Capital at Risk Autocall Plans 2018-22

Non-FTSE Deposits and Capital Protected Autocall Plans 2018-22

180 160 140 120 100

4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

10 9 8 7 6 5 4 3 2 1 0

7 6 5 4 3 2 1 0

80 60 40 20 0

No. of Positive Returns No. Returning Capital Only Average Term

No. of Positive Returns No. Realising Loss Average Term

No. of Plans

Average Term (Years)

2022

2021

2020

2019

2018

Average

2022

2021

2020

2019

2018

Average

10% 8% 6% 4% 2% 0% -2% -4% -6% -8%

Lower Quartile All Products Upper Quartile

-10% -12% Average Annualised Returns %

0% Average Annualised Returns %

2022

2021

2020

2019

2018

Average

2022

2021

2020

2019

2018

Average

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Analysis and Annualised Performance by Product Shape - Growth Products

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Analysis and Annualised Performance by Product Shape - Growth Products (All Products) By Product Type Capital at Risk Deposits and Capital Protected Structured Product Maturities 2022 2021 2020 2019 2018 Average 2022 2021 2020 2019 2018 Average

All products Number of product maturities

34 34

46 36 10

40 28

24 24

30 30

30 27

53 25 28

44 21 23

51 51

92 76 16

57 42 15

Number of products producing positive returns Number of products returning capital only

0 0

2 0

0 0

Number of products which lost capital Average duration / term (years)

5.92

4.63

6.01

5.92

5.63

5.71

5.84

4.61

5.35

5.34

5.89

5.27

Average annualised return All products

6.54% 8.63% 4.40%

2.93% 4.76% 0.13%

7.56% 3.98% 6.60% 8.05% 6.31% 9.76% 9.82% 8.51% 10.95% 9.56% 3.70% -2.41% 4.79% 5.50% 2.76%

1.75% 1.38% 3.15% 3.68% 2.75% 4.72% 3.85% 5.09% 5.81% 5.01% 0.00% 0.00% 1.27% 0.73% 0.48%

Upper quartile Lower quartile

Capital at Risk Growth Products 2018-22

Deposits and Capital Protected Growth Products 2018-22

45 40 35 30 25 20 15 10

6.05 6 5.95 5.9 5.85 5.8 5.75 5.7 5.65 5.6

100 90 80 70 60 50 40 30 20 10 0

6 5 4 3 2 1 0

No. of Positive Returns No. Returning Capital Only No. Realising Loss Average Term

No. of Plans

Average Term (Years)

5 0

2022

2021

2020

2019

2018

Average

2022

2021

2020

2019

2018

Average

10% 8% 6% 4% 2% 0%

Lower Quartile All Products Upper Quartile

-2% -4% Average Annualised Returns %

0% Average Annualised Returns %

2022

2021

2020

2019

2018

Average

2022

2021

2020

2019

2018

Average

StructuredProductReview.com

StructuredProductReview. com

Analysis and Annualised Performance by Product Shape - Growth Products (FTSE Only) By Product Type Capital at Risk Deposits and Capital Protected Structured Product Maturities 2022 2021 2020 2019 2018 Average 2022 2021 2020 2019 2018 Average

FTSE Only Number of product maturities

34 34

37 33

18 17

23 14

20 20

29 29

25 23

41 21 20

33 33

52 52

37 29

Number of products producing positive returns Number of products returning capital only

0 0

4 0

9 0

0 0

2 0

0 0

8 0

Number of products which lost capital Average duration / term (years)

5.92

4.54

6.01

5.9

5.55

5.7

5.82

4.40

5.22

5.31

5.91

5.11

Average annualised return All products

6.54% 8.63% 4.40%

3.55% 4.86% 1.77%

7.23% 3.27% 6.59% 8.05% 6.39% 9.38% 7.39% 8.67% 11.19% 9.11% 3.70% 0.00% 4.68% 5.33% 3.74%

2.08% 0.99% 3.59% 4.71% 3.24% 5.07% 3.53% 5.33% 5.93% 5.12% 0.00% 0.00% 1.83% 3.49% 1.65%

Upper quartile Lower quartile

FTSE Only Capital at Risk Growth Products 2018-22

FTSE Only Deposits and Capital Protected Growth Products 2018-22

40 35 30 25 20 15 10

6.1 6 5.9 5.8 5.7 5.6 5.5

60 50 40 30 20 10 0

7 6 5 4 3 2 1 0

No. of Positive Returns No. Returning Capital Only Average Term

No. of Plans

5 0

Average Term (Years)

2022

2021

2020

2019

2018

Average

2022

2021

2020

2019

2018

Average

12% 10%

8% 6% 4% 2% 0% Average Annualised Returns %

Lower Quartile All Products Upper Quartile

0% Average Annualised Returns %

2022

2021

2020

2019

2018

Average

2022

2021

2020

2019

2018

Average

StructuredProductReview.com

StructuredProductReview. com

Analysis and Annualised Performance by Product Shape - Growth Products (Non-FTSE Only) By Product Type Capital at Risk Deposits and Capital Protected Structured Product Maturities 2022 2021 2020 2019 2018 Average 2022 2021 2020 2019 2018 Average

Non-FTSE Only Number of product maturities

9 3 6 0

3 3 0 0

17 14

4 4 0 0

1 1

5 6

21 13

18 18

40 24

- - - - - - -

Number of products producing positive returns Number of products returning capital only

4 8 0

0 0

8 0

0 0

8 0

Number of products which lost capital Average duration / term (years)

5.00

6.01

5.95

6.00

5.97

5.34

5.48

5.39

5.87

5.56

Average annualised return All products

0.37% 1.64% 0.00%

9.55% 4.94% 6.68% 7.94% 5.89%

0.63% 1.81% 2.35% 2.35% 2.04% 2.18% 3.94% 4.39% 5.14% 4.49% 0.00% 0.00% 0.70% 0.00% 0.14%

Upper quartile Lower quartile

10.49% 11.10% 7.55% - 8.91% -5.17% 5.34% -

10.01% -1.59%

Non-FTSE Only Capital at Risk Growth Products 2018-22

Non-FTSE Only Deposits and Capital Protected Growth Products 2018-22 45 40 35 30 25 20 15 10

18 16 14 12 10

6.02 6.01 6 5.99 5.98 5.97 5.96 5.95 5.94

6 5.8 5.6 5.4 5.2 5 4.8

8 6 4 2 0

No. of Positive Returns No. Returning Capital Only No. Realising Loss Average Term

No. of Positive Returns No. Returning Capital Only Average Term

No. of Plans

Average Term (Years)

5 0

2022

2021

2020

2019

2018

Average

2022

2021

2020

2019

2018

Average

12% 10%

8% 6% 4% 2% 0%

Lower Quartile All Products Upper Quartile

-2% -4% -6% Average Annualised Returns %

0% Average Annualised Returns %

2022

2021

2020

2019

2018

Average

2022

2021

2020

2019

2018

Average

StructuredProductReview.com

StructuredProductReview. com

Analysis and Annualised Performance by Product Shape - Income Products

StructuredProductReview.com

StructuredProductReview. com

Analysis and Annualised Performance by Product Shape - Income Products (All Products) By Product Type Capital at Risk Deposits and Capital Protected Structured Product Maturities 2022 2021 2020 2019 2018 Average 2022 2021 2020 2019 2018 Average

All products Number of product maturities

87 87

12 12

43 38

46 38

53 53

58 55

12 10

8 8 0 0

21 13

13 11

Number of products producing positive returns Number of products returning capital only

0 0

0 5

0 8

0 0

0 3

2 0

8 0

2 0

Number of products which lost capital Average duration / term (years)

0 6

3.49

6.00

4.46

5.87

4.92

4.14

4.43

5.51

6.01

6.00

5.91

Average annualised return All products

5.43% 7.26% 4.05%

3.87% 4.40% 3.51%

4.14% 3.96% 5.69% 6.11% 5.18% 6.10% 6.81% 7.37% 7.24% 7.04% 0.87% -1.34% 3.68% 5.13% 2.84%

3.05% 4.06% 2.90% 3.08% 3.29% 4.38% 4.47% 5.70% 4.91% 4.92% 0.65% 3.56% 0.00% 0.44% 1.30%

Upper quartile Lower quartile

Capital at Risk Income Plans 2018-22

Deposits and Capital Protected Income Plans 2018-22

100 90 80 70 60 50 40 30 20 10 0

7 6 5 4 3 2 1 0

6.1 6 5.9 5.8 5.7 5.6 5.5 5.4

No. of Positive Returns No. Returning Capital Only Average Term

No. of Positive Returns No. Realising Loss Average Term

No. of Plans

Average Term (Years)

2022

2021

2020

2019

2018

Average

2022

2021

2020

2019

2018

Average

10% 8% 6% 4% 2% 0% -2% Average Annualised Returns %

Lower Quartile All Products Upper Quartile

0% Average Annualised Returns %

2022

2021

2020

2019

2018

Average

2022

2021

2020

2019

2018

Average

StructuredProductReview.com

StructuredProductReview. com

Analysis and Annualised Performance by Product Shape - Income Products (FTSE Only) By Product Type Capital at Risk Deposits and Capital Protected Structured Product Maturities 2022 2021 2020 2019 2018 Average 2022 2021 2020 2019 2018 Average

FTSE Only Number of product maturities

76 76

12 12

28 28

23 23

43 43

35 35

41 41

10 10

8 8 0 0

12 12

8 8 0 0 6

10 10

Number of products producing positive returns Number of products returning capital only

0 0

Number of products which lost capital Average duration / term (years)

3.64

6.00

4.21

5.9

5.05

3.87

4.31

5.40

6.01

6.00

5.88

Average annualised return All products

5.08% 6.39% 3.97%

3.87% 4.40% 3.51%

5.07% 5.25% 5.56% 5.98% 5.35% 5.93% 5.84% 6.73% 6.96% 6.43% 4.39% 4.79% 4.49% 5.00% 4.40%

3.65% 4.06% 4.51% 4.07% 4.04% 4.38% 4.47% 5.72% 5.13% 4.84% 2.84% 3.56% 3.70% 2.96% 3.34%

Upper quartile Lower quartile

FTSE Only Capital at Risk Income Plans 2018-22

FTSE Only Deposits and Capital Protected Income Plans 2018-22

80 70 60 50 40 30 20 10 0

7 6 5 4 3 2 1 0

14 12 10

6.1 6 5.9 5.8 5.7 5.6 5.5 5.4 5.3

8 6 4 2 0

No. of Positive Returns No. Returning Capital Only No. Realising Loss Average Term

No. of Positive Returns No. Returning Capital Only Average Term

No. of Plans

Average Term (Years)

2022

2021

2020

2019

2018

Average

2022

2021

2020

2019

2018

Average

10%

Lower Quartile All Products Upper Quartile

2% Average Annualised Returns %

0% Average Annualised Returns %

2022

2021

2020

2019

2018

Average

2022

2021

2020

2019

2018

Average

StructuredProductReview.com

StructuredProductReview. com

Analysis and Annualised Performance by Product Shape - Income Products (Non-FTSE Only) By Product Type Capital at Risk Deposits and Capital Protected Structured Product Maturities 2022 2021 2020 2019 2018 Average 2022 2021 2020 2019 2018 Average

Non-FTSE Only Number of product maturities

11 11

15 10

23 15

18 17

18 18

17 14

2 0 2 0

3 2

- - - -

Number of products producing positive returns Number of products returning capital only

- - - -

0 0

0 5

0 8

0 0

0 3

8 0

4 0

Number of products which lost capital Average duration / term (years)

2.50

4.92

5.85

4.61

4.64

4.73

6.01

6.00

Average annualised return All products

7.82% 8.93% 6.84%

0.00%

2.40% 2.67% 5.98% 6.37% 4.77% 6.19% 7.09% 8.02% 7.63% 7.48% -2.88% -5.67% 2.63% 5.45% 0.55%

0.00% -

0.75% 0.44% 0.58%

- -

Upper quartile Lower quartile

- -

3.37% - 0.00% -

2.17% 0.00%

Non-FTSE Only Capital at Risk Income Plans 2018-22

Non-FTSE Only Deposits and Capital Protected Income Plans 2018-22

7 6 5 4 3 2 1 0

No. of Positive Returns No. Returning Capital Only Average Term

No. of Positive Returns No. Realising Loss Average Term

No. of Plans

Average Term (Years)

2022

2021

2020

2019

2018

Average

2022

2021

2020

2019

2018

Average

10% 8% 6% 4% 2% 0%

Lower Quartile All Products Upper Quartile

-2% -4% -6% Average Annualised Returns %

0% Average Annualised Returns %

2022

2021

2020

2019

2018

Average

2022

2021

2020

2019

2018

Average

StructuredProductReview.com

StructuredProductReview. com

About Structured Product Review & Structured Products

StructuredProductReview.com is a dedicated research service conceived, created, developed and maintained to help Professional Advisers engage with the structured products sector and to aid in the identification of providers and products that may be suitable for their clients. The service was conceived and is maintained by Lowes Financial Management (Lowes). For over two decades Lowes has played a significant role in helping to shape the UK retail structured product sector by championing good product development and governance with a focus on investor outcomes. In addition to provider/product information and tools specifically designed to assist in researching and advising on structured products, StructuredProductReview.com aims to provide the deepest and most comprehensive one-stop source of information and education available for the IFA market. It provides access to thousands of historic articles and research pieces and an archive of every intermediary distributed retail structured product issued to the market this century. Lowes expertise in the structured product sector is widely acknowledged. The company has played a significant role in helping to educate the wider adviser community about the sector, whilst helping to shape it for better investor outcomes. This it has done by championing good product design and governance and warning against some of the less desirable, historic sector additions.

Contact Telephone: 0191 287 8716 Email: enquiry@StructuredProductReview.com Web: StructuredProductReview.com

StructuredProductReview.com Fernwood House Clayton Road Jesmond Newcastle Upon Tyne NE2 1TL

StructuredProductReview.com is a trading style of Lowes Financial Management and is authorised and regulated by the Financial Conduct Authority.

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