Five Year Performance Review 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

6

8.00%

600

5

6.00%

500

4

4.00%

400

3

2.00%

300

2

No. of Plans

0.00%

200

Average Term (years)

1

-2.00%

100

-4.00% Average Annualised Return (%)

0

0

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

4

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