Lowes Magazine Issue 116

Another First...

Whilst you should only rely upon the product literature for full details the investment is summarised as follows and overleaf: Linked to the performance of the FTSE CSDI Index (which itself is very closely correlated to the FTSE 100 – see page 8 for details) Closes 11 th December (25 th November for ISA Transfers) but may be oversubscribed sooner Investment start: 18 th December 2020 0.75% income payable each quarterly observation date the index is above 70% of initial level First possible maturity after 3 years and quarterly thereafter Maturity triggered by the index being up by 5% or more 12% gain payable if maturity triggered at third anniversary 1% more (not compounded) for each further quarter year. i.e. maturity at 4.5 years pays 18% 10-year maximum term Capital at risk barrier: 70% of the 18 th December 2020 Index level Capital at risk barrier observation date: 18 th December 2030 (only if not matured sooner) Minimum Investment £10,000 Counterparty: Morgan Stanley International Investment method: ISA / ISA transfer, Individual, Joint, SIPP, Trust, Corporate, Partnership Individual / Joint income taxed as Savings Income and gains taxable under Capital Gains Tax only if annual gains from all sources exceed £12.300* Cancelation rights: 14 days Can be surrendered from month one but penalties and loss will result Can be gifted, bequeathed, and transferred under probate

Maximum10yearoneweekPlan LinkedtotheperformanceoftheFTSE™Custom 100Synthetic3.5%Dividend Index (“FTSECSDI”) Paymentof incomeandgrowthcoupon conditionalontheperformanceoftheunderlying index Potential Incomeof0.75% perquarter (3%p.a.) PotentialReturnof1% foreachquarterthePlan hasrun (4%p.a.) ifakickoutoccurs FirstKickOutobservationattheendofyear3 Investing inthePlanputsyourCapitalatRisk Underlying investments issuedbyMorgan Stanley&Co. Internationalplc ThePlan issubjecttoCounterpartyRisk

Mariana 10:10 Income and GrowthPlan December 2020

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IN RECENT MONTHS LOWES SECURED EXCLUSIVE terms for structured autocall contracts with both Barclays and HSBC as counterparties both of which proved extremely popular. Thank you to all clients who took advantage of those offers – we are as confident as we can be that those investments will deliver the attractive, defined returns. Those structures were FTSE 100 linked, capital-at-risk autocall or kick-out contracts; the world first of this type of investment was launched in June 2003 and it was something we recommended to our clients back then. That first investment ultimately matured positively as have over 1,000 such investments, since then, with just 12 others failing to give a positive outcome. Whilst we obviously really like autocalls and will continue to utilise them in portfolios, we recognise that having to wait until a triggered maturity at some anniversary in the future isn’t ideal for everyone. The 10:10 Income & Growth Plan overcomes this by combining an autocall strategy with an income strategy, thereby providing a regular, quarterly income (provided the stock market doesn’t collapse by a further 30% or more) and the potential for an attractive gain at maturity after three years or more, if the market stages a moderate recovery. As ever, whilst a perfect outcome is not guaranteed, we believe this investment will meet expectations and is perfectly suited to the current investment climate, as part of a diversified portfolio. Up to 3% per annum income for a minimum of three years, plus up to 4% per annum growth. Capital at risk.

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*Based on current tax rules and reliefs which are subject to change.

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