Lowes MPS - Quarterly Reports

Defensive Growth

Quarterly Report to 31 December 2022

Strategy The portfolio is constructed so that at least sixty percent will be allocated to Targeted Absolute Return funds which seek to generate positive returns in all market conditions with significantly less volatility than equities. This means that these strategies can include a greater use of derivative based strategies by the underlying fund managers. The remainder of the portfolio will include an allocation to funds from other Investment Association (IA) sectors where it is believed that they contribute to the overall portfolio objective. Objective To protect capital values against the effects of inflation over the medium to long term, whilst minimising the effects of market downturns.

Market Commentary The fourth quarter proved more positive for equities and bonds, particularly compared to the previous three month period. Investors still continued to worry about the impact of a recession on corporate earnings, especially heading into 2023. However, there were other positives around which caused something of a relief rally in asset prices, including the relaxing of Covid restrictions in China and inflation coming off its peak levels, in particular in the US. Within equity markets it was those considered more economically sensitive which posted the strongest performance. European equities, which had previously languished on the back of concerns over the economy, especially due to high energy costs, were the strongest performers, both in local currency and pound sterling terms. In the UK meanwhile we saw the FTSE 250 outperform its large company counterpart, the FTSE 100. The former contains companies which generate a greater proportion of its earnings from the UK economy. After a weak October the Chinese stock market rallied

strongly to year end as the authorities began to relax Covid restrictions, particularly regarding mobility. Investors embraced this, believing that we could see something of a sharp rally in the equity market, similar to that which was seen in western markets as economies reopened properly. This was further encouraged by the low valuations which the market was trading at relative to its own history. Movement in currency would have a material impact on the return which UK based investors would receive from overseas equity markets. For example, in local currency terms the S&P 500 posted a total return of 7.42%. In sterling terms however the return was reduced to -0.32%, with the US dollar weaking from very strong levels. It was here, however, that the main impact was seen. UK fixed income markets also enjoyed a strong quarter, in particular corporate credit. Not only did the latter benefit from a fall in yields across government bonds but also from a narrowing in the credit spread, the additional premium which companies must offer over government bonds to attract investors. Although inflation remained high in actual terms, there were geographies where we were starting to see it fall. This encouraged investors from a ‘rate of change’ perspective that the worst was perhaps now behind the asset class.

Although further interest rate hikes are still forecast from year end levels in the UK, Europe and US, the market began to price in the possibility of interest rate cuts in the US for the second half of 2023. This was on the basis of inflation falling from its peak and also the threat of recession. This was somewhat at odds with the US Federal Reserve however, who believe that there is little likelihood that cuts will be seen in 2023. Whilst interest rates in the US therefore are likely to peak in the first half of 2023, it remains to be seen therefore whether we will see a full ‘Fed pivot’.

Performance During the quarter the portfolio return outperformed the IA Targeted Absolute Return sector average, posting a return of 2.97% compared to 2.06% on a total return basis. All funds within the portfolio posted a positive return during the period. The strongest performer of the underlying funds was M&G Episode Allocation fund. It benefitted from a meaningful allocation to equities, this being a fund in the IA Mixed Investment 20-60% Shares sector. The fund had a similar exposure across UK, European, US, Japanese and Asia Pacific equity markets. The BNY Mellon Real Return fund was also a strong performer helped by a meaningful allocation to equities. The fund was also saw a positive contribution from its fixed income allocation, with duration helping as bond yields fell. Weaker performers were those funds which had a stronger third quarter, highlighting the need for diversification in this market environment. Whilst the diversification to alternative strategies helped in the third quarter, they held the performance of the Janus Henderson Multi Asset Absolute Return fund back over the most recent three months. The market neutral positioning of the Tellworth UK Select fund was also a headwind in a positive environment for equities, but we are happy to see the fund manager sticking to their investment philosophy and process. Both funds were positive returning however in absolute terms.

Source: FE Analytics, Bid-Bid, Total Return

Portfolio Activity and Positioning There were no changes made to the portfolio during the quarter, remaining comfortable with the current fund selection and allocations. As there were no changes made to the portfolio in the third quarter also, the portfolio will be rebalanced in the first quarter of 2023, returning the underlying funds to their original allocations.

Disclaimer The portfolio is managed on a discretionary basis therefore the investment manager may make changes to the investments held without notice. Investors are agreeing to the investment model as recommended by an Adviser and may not be investing into the specific assets included in this report. Past performance is not a guide to future performance. The value of investments and any income from them can fall as well as rise and are not guaranteed, so you may get back less than you invested. If you invest in currencies other than your own, fluctuations in currency value will mean that the value of your investment will move independently of the underlying asset. Consideration should be given to whether it is felt that the outcome of any risk assessment is accurate and advice should be sought for factors such as investment objectives, the investment term, attitude to risk, capacity for investment loss and the level of inflation. This illustrative document is intended for investors where advice has been given by Advisers. Models are prepared in accordance with the stated objective and not client circumstances. Information from given sources is taken to be reliable and accurate, which Lowes Investment Management Ltd cannot warrant for accuracy or completeness. Lowes Investment Management is authorised and regulated by the Financial Conduct Authority (192938).

Mixed Investment 0-35% Shares

Quarterly Report to 31 December 2022

Strategy The portfolio invests in a diversified range of funds across multiple asset classes, such as equities, fixed interest and direct commercial property. Investing in line with the parameters of the Investment Association Mixed Investment 0% - 35% Shares sector, this portfolio will never have more than 35% of its assets invested in equity funds and will also tend to have a bias towards the UK to reduce the effects of currency fluctuations. The lower equity content will hopefully reduce the volatility exhibited by this portfolio in all but the most extreme market conditions, but still produce sufficient returns to protect capital against the effects of inflation in the medium to long term. Objective To provide a total return over the medium to long term, mainly through income generation, which is sufficient to provide some capital growth, after inflation, but with a focus on keeping a low level of volatility.

Market Commentary The fourth quarter proved more positive for equities and bonds, particularly compared to the previous three month period. Investors still continued to worry about the impact of a recession on corporate earnings, especially heading into 2023. However, there were other positives around which caused something of a relief rally in asset prices, including the relaxing of Covid restrictions in China and inflation coming off its peak levels, in particular in the US. Within equity markets it was those considered more economically sensitive which posted the strongest performance. European equities, which had previously languished on the back of concerns over the economy, especially due to high energy costs, were the strongest performers, both in local currency and pound sterling terms. In the UK meanwhile we saw the FTSE 250 outperform its large company counterpart, the FTSE 100. The former contains companies which generate a greater proportion of its earnings from the UK economy. After a weak October the Chinese stock market rallied

strongly to year end as the authorities began to relax Covid restrictions, particularly regarding mobility. Investors embraced this, believing that we could see something of a sharp rally in the equity market, similar to that which was seen in western markets as economies reopened properly. This was further encouraged by the low valuations which the market was trading at relative to its own history. Movement in currency would have a material impact on the return which UK based investors would receive from overseas equity markets. For example, in local currency terms the S&P 500 posted a total return of 7.42%. In sterling terms however the return was reduced to -0.32%, with the US dollar weaking from very strong levels. It was here, however, that the main impact was seen. UK fixed income markets also enjoyed a strong quarter, in particular corporate credit. Not only did the latter benefit from a fall in yields across government bonds but also from a narrowing in the credit spread, the additional premium which companies must offer over government bonds to attract investors. Although inflation remained high in actual terms, there were geographies where we were starting to see it fall. This encouraged investors from a ‘rate of change’ perspective that the worst was perhaps now behind the asset class.

Performance The portfolio strongly outperformed the sector average during the period, returning 4.70% and 2.29% respectively. Pleasingly, all funds within the portfolio, with the exception of the two property funds, delivered a positive return during the period. Strongest performers during the period were UK equity income funds which are allocated to, in particular the Man GLG Income fund. Not only was this the strongest performing fund in the portfolio, but it was also the third strongest performing fund in the IA UK Equity Income sector. Performance was helped by its focus on valuation and allocation to sectors such energy and financials. The managers also took advantage of the flexibility in their remit to be able to add corporate bonds to the fund, locking in attractive yields for the fund. Within the fixed income allocation there were strong performances from funds including Artemis Strategic Bond, Invesco Monthly Income Plus and TwentyFour Dynamic Bond, each ranking first quartile within the IA Sterling Strategic Bond sector. The weakest performer during the quarter was the L&G UK Property Feeder fund, with weakness seen across physical property markets in general. Higher bond yields made this asset class less attractive to some investors, coupled with concerns that a protracted economic slowdown/recession would be negative for capital values. Whilst we monitor closely, we continue to see property as an alternative, diversifying income stream for the portfolio. Although further interest rate hikes are still forecast from year end levels in the UK, Europe and US, the market began to price in the possibility of interest rate cuts in the US for the second half of 2023. This was on the basis of inflation falling from its peak and also the threat of recession. This was somewhat at odds with the US Federal Reserve however, who believe that there is little likelihood that cuts will be seen in 2023. Whilst interest rates in the US therefore are likely to peak in the first half of 2023, it remains to be seen therefore whether we will see a full ‘Fed pivot’. Portfolio Activity and Positioning During the quarter there were two changes made to the portfolio. The exposure to the Jupiter Investment Grade Bond fund was removed in favour of the Premier Miton Strategic Monthly Income fund. The latter, being a strategic bond fund rather than sterling investment grade bond fund, has a much greater level of flexibility within its mandate. This ranges across allocation to fixed income asset classes to duration/interest rate sensitivity management. Given this, coupled with high yields being available at the short end of the yield curve, prompted the switch. A position in the VT Gravis UK Infrastructure Income fund was also added. This fund had seen something of a sell-off in its underlying holdings, meaning that it was offering a greater level of yield than it had for some time. The quality of the underlying assets meanwhile remains intact. This purchase was funded by the partial reduction in the exposure to the Royal London Sustainable Managed Growth fund. Disclaimer The portfolio is managed on a discretionary basis therefore the investment manager may make changes to the investments held without notice. Investors are agreeing to the investment model as recommended by an Adviser and may not be investing into the specific assets included in this report. Past performance is not a guide to future performance. The value of investments and any income from them can fall as well as rise and are not guaranteed, so you may get back less than you invested. If you invest in currencies other than your own, fluctuations in currency value will mean that the value of your investment will move independently of the underlying asset. Consideration should be given to whether it is felt that the outcome of any risk assessment is accurate and advice should be sought for factors such as investment objectives, the investment term, attitude to risk, capacity for investment loss and the level of inflation. This illustrative document is intended for investors where advice has been given by Advisers. Models are prepared in accord ance with the stated objective and not client circumstances. Information from given sources is taken to be reliable and accu rate, which Lowes Investment Management Ltd cannot warrant for accuracy or completeness. Lowes Investment Management is authorised and regulated by the Financial Conduct Authority (192938). Source: FE Analytics, Bid-Bid, Total Return

Mixed Investment 20-60% Shares

Quarterly Report to 31 December 2022

Strategy The portfolio invests in a diversified range of funds across multiple asset classes, such as equities, fixed interest and direct commercial property. Investing in line with the parameters of the Investment Association Mixed Investment 20% - 60% Shares sector, this portfolio will always have at least 20% of its assets invested in equity funds but never more than 60%. The slightly higher equity content should provide for some capital growth even when taking a modest level of income, whilst the balanced nature of the different asset classes should provide a lower level of volatility compared to portfolios with a higher equity content. Objective To provide a total return from a combination of income and some capital growth over the medium to long term, sufficient to allow a low level of income to be taken whilst protecting capital against the effects of inflation.

Market Commentary The fourth quarter proved more positive for equities and bonds, particularly compared to the previous three month period. Investors still continued to worry about the impact of a recession on corporate earnings, especially heading into 2023. However, there were other positives around which caused something of a relief rally in asset prices, including the relaxing of Covid restrictions in China and inflation coming off its peak levels, in particular in the US. Within equity markets it was those considered more economically sensitive which posted the strongest performance. European equities, which had previously languished on the back of concerns over the economy, especially due to high energy costs, were the strongest performers, both in local currency and pound sterling terms. In the UK meanwhile we saw the FTSE 250 outperform its large company counterpart, the FTSE 100. The former contains companies which generate a greater proportion of its earnings from the UK economy.

After a weak October the Chinese stock market rallied

strongly to year end as the authorities began to relax Covid restrictions, particularly regarding mobility. Investors embraced this, believing that we could see something of a sharp rally in the equity market, similar to that which was seen in western markets as economies reopened properly. This was further encouraged by the low valuations which the market was trading at relative to its own history. Movement in currency would have a material impact on the return which UK based investors would receive from overseas equity markets. For example, in local currency terms the S&P 500 posted a total return of 7.42%. In sterling terms however the return was reduced to -0.32%, with the US dollar weaking from very strong levels. It was here, however, that the main impact was seen. UK fixed income markets also enjoyed a strong quarter, in particular corporate credit. Not only did the latter benefit from a fall in yields across government bonds but also from a narrowing in the credit spread, the additional premium which companies must offer over government bonds to attract investors. Although inflation remained high in actual terms, there were geographies where we were starting to see it fall. This encouraged investors from a ‘rate of change’ perspective that the worst was perhaps now behind the asset class.

Performance The portfolio outperformed the sector average during the period, posting a return of 4.73% compared to 3.05% for the sector average. Strongest performers during the period were UK equity income funds which are allocated to, in particular the Man GLG Income fund. Not only was this the strongest performing fund in the portfolio, but it was also the third strongest performing fund in the IA UK Equity Income sector. Performance was helped by its focus on valuation and allocation to sectors such energy and financials. The managers also took advantage of the flexibility in their remit to be able to add corporate bonds to the fund, locking in attractive yields for the fund. Another strong performer was the Royal London UK Equity Income fund. Within the fixed income allocation there were strong performances from funds including TwentyFour Dynamic Bond and GAM Star Credit Opportunities, each ranking first quartile within the IA Sterling Strategic Bond sector. The same was also true of the Invesco Corporate Bond fund which is in the Sterling Corporate Bond sector. The weakest performer during the quarter was the L&G UK Property Feeder fund, with weakness seen across physical property markets in general. Higher bond yields made this asset class less attractive to some investors, coupled with concerns that a protracted economic slowdown/recession would be negative for capital values. Whilst we monitor closely, we continue to see property as an alternative, diversifying income stream for the portfolio. Source: FE Analytics, Bid-Bid, Total Return Portfolio Activity and Positioning There were no changes made to the portfolio during the quarter. As there were no changes made to the portfolio in the third quarter also, the portfolio will be rebalanced in the first quarter of 2023, returning the underlying funds to their original allocations. We continue to review the equity/fixed income balance in light of the higher yields now available from the latter. We also continue to review the greater potential use of alternative income producing asset classes, such as renewable energy and infrastructure. Although further interest rate hikes are still forecast from year end levels in the UK, Europe and US, the market began to price in the possibility of interest rate cuts in the US for the second half of 2023. This was on the basis of inflation falling from its peak and also the threat of recession. This was somewhat at odds with the US Federal Reserve however, who believe that there is little likelihood that cuts will be seen in 2023. Whilst interest rates in the US therefore are likely to peak in the first half of 2023, it remains to be seen therefore whether we will see a full ‘Fed pivot’. Disclaimer The portfolio is managed on a discretionary basis therefore the investment manager may make changes to the investments held without notice. Investors are agreeing to the investment model as recommended by an Adviser and may not be investing into the specific assets included in this report. Past performance is not a guide to future performance. The value of investments and any income from them can fall as well as rise and are not guaranteed, so you may get back less than you invested. If you invest in currencies other than your own, fluctuations in currency value will mean that the value of your investment will move independently of the underlying asset. Consideration should be given to whether it is felt that the outcome of any risk assessment is accurate and advice should be sought for factors such as investment objectives, the investment term, attitude to risk, capacity for investment loss and the level of inflation. This illustrative document is intended for investors where advice has been given by Advisers. Models are prepared in accord ance with the stated objective and not client circumstances. Information from given sources is taken to be reliable and accu rate, which Lowes Investment Management Ltd cannot warrant for accuracy or completeness. Lowes Investment Management is authorised and regulated by the Financial Conduct Authority (192938).

Mixed Investment 40-85% Shares

Quarterly Report to 31 December 2022

Objective To provide a combination of both income and capital growth over the medium to long term.

Strategy The portfolio invests in a diversified range of funds across multiple asset classes, such as equities, fixed interest and direct commercial property. Investing in line with the parameters of the Investment Association Mixed Investment 40% - 85% Shares sector, this portfolio will always have at least 40% of its assets invested in equity funds but never more than 85%. Usually having the majority of its assets invested in equities, this portfolio should provide capital growth as well as allowing a certain level of income to be taken. Whilst exhibiting more volatility than the portfolios with a lower equity exposure, this portfolio would still hopefully provide some protection compared to a pure equity portfolio in a falling market.

Market Commentary The fourth quarter proved more positive for equities and bonds, particularly compared to the previous three month period. Investors still continued to worry about the impact of a recession on corporate earnings, especially heading into 2023. However, there were other positives around which caused something of a relief rally in asset prices, including the relaxing of Covid restrictions in China and inflation coming off its peak levels, in particular in the US. Within equity markets it was those considered more economically sensitive which posted the strongest performance. European equities, which had previously languished on the back of concerns over the economy, especially due to high energy costs, were the strongest performers, both in local currency and pound sterling terms. In the UK meanwhile we saw the FTSE 250 outperform its large company counterpart, the FTSE 100. The former contains companies which generate a greater proportion of its earnings from the UK economy. After a weak October the Chinese stock market rallied

strongly to year end as the authorities began to relax Covid restrictions, particularly regarding mobility. Investors embraced this, believing that we could see something of a sharp rally in the equity market, similar to that which was seen in western markets as economies reopened properly. This was further encouraged by the low valuations which the market was trading at relative to its own history. Movement in currency would have a material impact on the return which UK based investors would receive from overseas equity markets. For example, in local currency terms the S&P 500 posted a total return of 7.42%. In sterling terms however the return was reduced to -0.32%, with the US dollar weaking from very strong levels. It was here, however, that the main impact was seen. UK fixed income markets also enjoyed a strong quarter, in particular corporate credit. Not only did the latter benefit from a fall in yields across government bonds but also from a narrowing in the credit spread, the additional premium which companies must offer over government bonds to attract investors. Although inflation remained high in actual terms, there were geographies where we were starting to see it fall. This encouraged investors from a ‘rate of change’ perspective that the worst was perhaps now behind the asset class.

Performance The portfolio outperformed the IA Mixed Investment 40-85% Shares sector average during the quarter, posting returns of 4.54% and 2.86% respectively. The top three strongest performing funds in the portfolio over the period were equity income funds. Equity income funds, in particular those which deliver dividend growth as well as an attractive yield, can prove popular with investors as a partial hedge against higher inflation. The ability of funds to pay a growing dividend also shows that the company potentially has more resilient earnings and cash flow generation in periods of economic weakness. Man GLG Income was a particularly strong performer, followed by Artemis Income and abrdn Europe ex UK Income. Another strong performer was our own Lowes UK Defined Strategy Fund, benefitting from strength in the UK equity market. The weakest performer during the quarter was the L&G UK Property Feeder fund, with weakness seen across physical property markets in general. Higher bond yields made this asset class less attractive to some investors, coupled with concerns that a protracted economic slowdown/recession could be negative for capital values. Whilst we monitor closely, we continue to see property as an alternative, diversifying income stream for the portfolio. Source: FE Analytics, Bid-Bid, Total Return Portfolio Activity and Positioning No changes were made to the portfolio during the period. Following the weakness in fixed income and infrastructure and therefore the higher yields now available, we continue to assess that the portfolio has the correct level of exposure to these asset classes. The level of equity exposure remains comfortably within the sector guidelines and could be increased further. For now, however, we prefer to monitor closely the potential impact which an economic recession could have on company earnings. Given that no changes have been made to the portfolio over the last two quarters the portfolio will be rebalanced in the first quarter of 2023, returning the underlying funds to their original allocations. Although further interest rate hikes are still forecast from year end levels in the UK, Europe and US, the market began to price in the possibility of interest rate cuts in the US for the second half of 2023. This was on the basis of inflation falling from its peak and also the threat of recession. This was somewhat at odds with the US Federal Reserve however, who believe that there is little likelihood that cuts will be seen in 2023. Whilst interest rates in the US therefore are likely to peak in the first half of 2023, it remains to be seen therefore whether we will see a full ‘Fed pivot’. Disclaimer The portfolio is managed on a discretionary basis therefore the investment manager may make changes to the investments held without notice. Investors are agreeing to the investment model as recommended by an Adviser and may not be investing into the specific assets included in this report. Past performance is not a guide to future performance. The value of investments and any income from them can fall as well as rise and are not guaranteed, so you may get back less than you invested. If you invest in currencies other than your own, fluctuations in currency value will mean that the value of your investment will move independently of the underlying asset. Consideration should be given to whether it is felt that the outcome of any risk assessment is accurate and advice should be sought for factors such as investment objectives, the investment term, attitude to risk, capacity for investment loss and the level of inflation. This illustrative document is intended for investors where advice has been given by Advisers. Models are prepared in accordance with the stated objective and not client circumstances. Information from given sources is taken to be reliable and accurate, which Lowes Investment Management Ltd cannot warrant for accuracy or completeness. Lowes Investment Management is authorised and regulated by the Financial Conduct Authority (192938).

Global Select

Quarterly Report to 31 December 2022

Objective To provide capital growth over the medium to long term through a diversified portfolio of funds investing in global equities.

Strategy Investing only in equities, the portfolio is designed to maintain a global exposure and focusses on funds whose remit is to invest in areas of the world’s equity markets which, although possibly more volatile, we believe offer the prospect of higher long term capital growth. In line with the desire to maintain a balance of investments around the globe, UK equities will usually represent at most 20% of the portfolio.

Market Commentary The fourth quarter proved more positive for equities and bonds, particularly compared to the previous three month period. Investors still continued to worry about the impact of a recession on corporate earnings, especially heading into 2023. However, there were other positives around which caused something of a relief rally in asset prices, including the relaxing of Covid restrictions in China and inflation coming off its peak levels, in particular in the US. Within equity markets it was those considered more economically sensitive which posted the strongest performance. European equities, which had previously languished on the back of concerns over the economy, especially due to high energy costs, were the strongest performers, both in local currency and pound sterling terms. In the UK meanwhile we saw the FTSE 250 outperform its large company counterpart, the FTSE 100. The former contains companies which generate a greater proportion of its earnings from the UK economy. After a weak October the Chinese stock market rallied

strongly to year end as the authorities began to relax Covid restrictions, particularly regarding mobility. Investors embraced this, believing that we could see something of a sharp rally in the equity market, similar to that which was seen in western markets as economies reopened properly. This was further encouraged by the low valuations which the market was trading at relative to its own history. Movement in currency would have a material impact on the return which UK based investors would receive from overseas equity markets. For example, in local currency terms the S&P 500 posted a total return of 7.42%. In sterling terms however the return was reduced to -0.32%, with the US dollar weaking from very strong levels. It was here, however, that the main impact was seen. UK fixed income markets also enjoyed a strong quarter, in particular corporate credit. Not only did the latter benefit from a fall in yields across government bonds but also from a narrowing in the credit spread, the additional premium which companies must offer over government bonds to attract investors. Although inflation remained high in actual terms, there were geographies where we were starting to see it fall. This encouraged investors from a ‘rate of change’ perspective that the worst was perhaps now behind the asset class.

Performance During the period the portfolio outperformed the IA Global sector average, returning 3.89% and 2.19% respectively. Strong performers during the period were European equity funds, to be expected given that this was the strongest performing of the major regions. Other strong performers were those funds with a ‘value’ style bias, such as Schroder Recovery investing in UK equities and Man GLG Japan Core Alpha. Funds with this style bias tend to perform stronger than growth stocks in periods of higher bond yields and rising interest rates. Another strong performer was the Jupiter Gold & Silver fund. Both of these metals can perform well in inflationary environments. Miners are also benefitting from strong cash flow generation given demand at a time when new resources coming online via new mines is limited. Weaker performers during the period were US equity funds, with a weaker US dollar against sterling not helping here due to the currency translation impact. In general, those funds with more of a growth bias underperformed those with more of a value style bias for the reasons mentioned above. Source: FE Analytics, Bid-Bid, Total Return Portfolio Activity and Positioning During the quarter there were adjustments made to the UK and European equity exposure within the portfolio. In the UK we sold down the holding in the SVM UK Growth fund in favour of CRUX UK Special Situations. Both funds have a similar ‘growth at a reasonable price’ investment philosophy. The CRUX fund however, despite this similarity and comparable market cap exposure, has proven more resilient in negative and volatile markets, whilst showing a similar degree of upside capture in positive markets. In terms of European equity exposure, the position in Jupiter European was sold, with proceeds recycled into Lightman European and R&M European funds. The Lightman fund has a strong valuation bias, a style which should hopefully continue to perform well in an environment of higher interest rates and bond yields. Value, as an investment style, despite the recent improved performance, still remains at a significant discount relative to growth stocks. The R&M fund meanwhile adopts a business cycle approach to investing. This tends to give the fund a style agnostic approach, although the willingness to be contrary does mean that it can typically tilt towards value, although not as aggressively as other funds, for example those investing in special situations/recovery/deep value stocks. Although further interest rate hikes are still forecast from year end levels in the UK, Europe and US, the market began to price in the possibility of interest rate cuts in the US for the second half of 2023. This was on the basis of inflation falling from its peak and also the threat of recession. This was somewhat at odds with the US Federal Reserve however, who believe that there is little likelihood that cuts will be seen in 2023. Whilst interest rates in the US therefore are likely to peak in the first half of 2023, it remains to be seen therefore whether we will see a full ‘Fed pivot’. Disclaimer The portfolio is managed on a discretionary basis therefore the investment manager may make changes to the investments held without notice. Investors are agreeing to the investment model as recommended by an Adviser and may not be investing into the specific assets included in this report. Past performance is not a guide to future performance. The value of investments and any income from them can fall as well as rise and are not guaranteed, so you may get back less than you invested. If you invest in currencies other than your own, fluctuations in currency value will mean that the value of your investment will move independently of the underlying asset. Consideration should be given to whether it is felt that the outcome of any risk assessment is accurate and advice should be sought for factors such as investment objectives, the investment term, attitude to risk, capacity for investment loss and the level of inflation. This illustrative document is intended for investors where advice has been given by Advisers. Models are prepared in accord ance with the stated objective and not client circumstances. Information from given sources is taken to be reliable and accu rate, which Lowes Investment Management Ltd cannot warrant for accuracy or completeness. Lowes Investment Management is authorised and regulated by the Financial Conduct Authority (192938).

Cautious Managed

Quarterly Report to 31 December 2022

Strategy The portfolio has been constructed so that asset allocation is in line with the investment restrictions of the IA Mixed Investment 20%-60% Shares sector. The portfolio invests in equity, fixed interest, property and multi-asset funds, with a focus on lower cost options, where appropriate, but not at the expense of flexibility or an increase in internal risk. Objective To provide capital growth over the medium to long term, mainly through income producing funds, making it suitable for those looking to make regular withdrawals, and with a focus on lower cost investments.

Market Commentary The fourth quarter proved more positive for equities and bonds, particularly compared to the previous three month period. Investors still continued to worry about the impact of a recession on corporate earnings, especially heading into 2023. However, there were other positives around which caused something of a relief rally in asset prices, including the relaxing of Covid restrictions in China and inflation coming off its peak levels, in particular in the US. Within equity markets it was those considered more economically sensitive which posted the strongest performance. European equities, which had previously languished on the back of concerns over the economy, especially due to high energy costs, were the strongest performers, both in local currency and pound sterling terms. In the UK meanwhile, we saw the FTSE 250 outperform its large company counterpart, the FTSE 100. The former contains companies which generate a greater proportion of its earnings from the UK economy. After a weak October the Chinese stock market rallied strongly to year end as the authorities began to relax Covid restrictions,

particularly regarding mobility. Investors embraced this, believing that we could see something of a sharp rally in the equity market, similar to that which was seen in western markets as economies reopened properly. This was further encouraged by the low valuations which the market was trading at relative to its own history. Movement in currency would have a material impact on the return which UK based investors would receive from overseas equity markets. For example, in local currency terms the S&P 500 posted a total return of 7.42%. In sterling terms however the return was reduced to -0.32%, with the US dollar weaking from very strong levels. It was here, however, that the main impact was seen. UK fixed income markets also enjoyed a strong quarter, in particular corporate credit. Not only did the latter benefit from a fall in yields across government bonds but also from a narrowing in the credit spread, the additional premium which companies must offer over government bonds to attract investors. Although inflation remained high in actual terms, there were geographies where we were starting to see it fall. This encouraged investors from a ‘rate of change’ perspective that the worst was perhaps now behind the asset class.

Although further interest rate hikes are still forecast from year end levels in the UK, Europe and US, the market began to price in the possibility of interest rate cuts in the US for the second half of 2023. This was on the basis of inflation falling from its peak and also the threat of recession. This was somewhat at odds with the US Federal Reserve however, who believe that there is little likelihood that cuts will be seen in 2023. Whilst interest rates in the US therefore are likely to peak in the first half of 2023, it remains to be seen therefore whether we will see a full ‘Fed pivot’.

Performance The portfolio outperformed the sector average during the quarter, posting a return of 4.18% which compared to 3.05% for the IA Mixed Investment 20-60% Shares sector average. In absolute terms the strongest performing underlying fund was the Vanguard FTSE UK Equity Income Index. UK equity income enjoyed a strong return for the period, with the index sector composition helping. Investors can also look to equity income, in particular dividend growth, as a partial hedge against inflation. Companies which are able to pay dividend and growing dividends can also add an element of defence to a portfolio given the ability of companies to pay such in periods of economic weakness. Weaker performers included property funds allocated to, in particular the L&G UK Property Feeder fund. Higher bond yields made this asset class less attractive to some investors, coupled with concerns that a protracted economic slowdown/recession would be negative for capital values. Whilst we monitor closely, we continue to see property as an alternative, diversifying income stream for the portfolio. Portfolio Activity and Positioning There were no changes made to the portfolio during the quarter. As there were no changes made to the portfolio in the third quarter also, the portfolio will be rebalanced in the first quarter of 2023, returning the underlying funds to their original allocations. We continue to review the equity/fixed income balance in light of the higher yields now available from the latter. This analysis also includes duration/interest rate sensitivity within those fixed income funds held. The greater potential use of alternative income producing asset classes, such as renewable energy and infrastructure is also being considered, although the ability to access this asset class in a cost effective, passive manner, requires further investigation. Disclaimer The portfolio is managed on a discretionary basis therefore the investment manager may make changes to the investments held without notice. Investors are agreeing to the investment model as recommended by an Adviser and may not be investing into the specific assets included in this report. Past performance is not a guide to future performance. The value of investments and any income from them can fall as well as rise and are not guaranteed, so you may get back less than you invested. If you invest in currencies other than your own, fluctuations in currency value will mean that the value of your investment will move independently of the underlying asset. Consideration should be given to whether it is felt that the outcome of any risk assessment is accurate and advice should be sought for factors such as investment objectives, the investment term, attitude to risk, capacity for investment loss and the level of inflation. This illustrative document is intended for investors where advice has been given by Advisers. Models are prepared in accordance with the stated objective and not client circumstances. Information from given sources is taken to be reliable and accurate, which Lowes Investment Management Ltd cannot warrant for accuracy or completeness. Lowes Investment Management is authorised and regulated by the Financial Conduct Authority (192938). Source: FE Analytics, Bid-Bid, Total Return

Ethical RL2

Quarterly Report to 31 December 2022

Objective To provide capital growth by investing in a diversified portfolio of funds classified as investing with an ethical outlook.

Strategy The portfolio utilises funds investing both in equities and/or fixed interest assets. The funds used all meet strict ethical and socially responsible criteria and mainly do this by excluding investment in certain sectors and industries. In order to meet the desired Risk Level, the portfolio is constructed to meet the IA’s guidelines for a Mixed Investment 20% - 60% Shares fund.

Market Commentary The fourth quarter proved more positive for equities and bonds, particularly compared to the previous three month period. Investors still continued to worry about the impact of a recession on corporate earnings, especially heading into 2023. However, there were other positives around which caused something of a relief rally in asset prices, including the relaxing of Covid restrictions in China and inflation coming off its peak levels, in particular in the US. Within equity markets it was those considered more economically sensitive which posted the strongest performance. European equities, which had previously languished on the back of concerns over the economy, especially due to high energy costs, were the strongest performers, both in local currency and pound sterling terms. In the UK meanwhile we saw the FTSE 250 outperform its large company counterpart, the FTSE 100. The former contains companies which generate a greater proportion of its earnings from the UK economy. After a weak October the Chinese stock market rallied

strongly to year end as the authorities began to relax Covid restrictions, particularly regarding mobility. Investors embraced this, believing that we could see something of a sharp rally in the equity market, similar to that which was seen in western markets as economies reopened properly. This was further encouraged by the low valuations which the market was trading at relative to its own history. Movement in currency would have a material impact on the return which UK based investors would receive from overseas equity markets. For example, in local currency terms the S&P 500 posted a total return of 7.42%. In sterling terms however the return was reduced to -0.32%, with the US dollar weaking from very strong levels. It was here, however, that the main impact was seen. UK fixed income markets also enjoyed a strong quarter, in particular corporate credit. Not only did the latter benefit from a fall in yields across government bonds but also from a narrowing in the credit spread, the additional premium which companies must offer over government bonds to attract investors. Although inflation remained high in actual terms, there were geographies where we were starting to see it fall. This encouraged investors from a ‘rate of change’ perspective that the worst was perhaps now behind the asset class.

Although further interest rate hikes are still forecast from year end levels in the UK, Europe and US, the market began to price in the possibility of interest rate cuts in the US for the second half of 2023. This was on the basis of inflation falling from its peak and also the threat of recession. This was somewhat at odds with the US Federal Reserve however, who believe that there is little likelihood that cuts will be seen in 2023. Whilst interest rates in the US therefore are likely to peak in the first half of 2023, it remains to be seen therefore whether we will see a full ‘Fed pivot’.

Performance The portfolio strongly outperformed the sector average during the quarter, returning 5.82% compared to 3.05% for the IA Mixed Investment 20-60% Shares sector average. All funds within the portfolio produced a positive return for the period. In absolute terms, the strongest performing fund in the portfolio for the period was the CT Responsible UK Income fund. UK equity income funds enjoyed a strong performance in general. Investors can look to equity income, in particular dividend growth, as a partial hedge against inflation. Companies which are able to pay a dividend can also be defensive given the financial strength of the companies allowing them to pay dividends. Fixed income fund holdings within the fund were also strong performers within their sectors, in particular the Rathbone Ethical Bond fund in the Sterling Strategic Bond sector and Royal London Ethical Bond fund in the Sterling Strategic Bond sector, with both funds ranking 1st quartile. Both benefitted from the general fall in bond yields seen over the period. Source: FE Analytics, Bid-Bid, Total Return Portfolio Activity and Positioning There were no changes made to the portfolio during the quarter. As there were no changes made to the portfolio in the third quarter also, the portfolio will be rebalanced in the first quarter of 2023, returning the underlying funds to their original allocations. We continue to review the equity/fixed income balance in light of the higher yields now available from the latter. We also continue to review to see if a broader range of asset classes can be invested in within the portfolio whilst still meeting the ethical and socially responsible criteria. An allocation to a relatively new launched fund is being considered. Disclaimer The portfolio is managed on a discretionary basis therefore the investment manager may make changes to the investments held without notice. Investors are agreeing to the investment model as recommended by an Adviser and may not be investing into the specific assets included in this report. Past performance is not a guide to future performance. The value of investments and any income from them can fall as well as rise and are not guaranteed, so you may get back less than you invested. If you invest in currencies other than your own, fluctuations in currency value will mean that the value of your investment will move independently of the underlying asset. Consideration should be given to whether it is felt that the outcome of any risk assessment is accurate and advice should be sought for factors such as investment objectives, the investment term, attitude to risk, capacity for investment loss and the level of inflation. This illustrative document is intended for investors where advice has been given by Advisers. Models are prepared in accordance with the stated objective and not client circumstances. Information from given sources is taken to be reliable and accurate, which Lowes Investment Management Ltd cannot warrant for accuracy or completeness. Lowes Investment Management is authorised and regulated by the Financial Conduct Authority (192938).