Structured Products Annual Performance Review 2020

Key Takeaways Continued

• The FTSE 100 Index in isolation was the most prevalent underlying measurement utilised, accounting for 65.87% of all maturities.

• The 243 capital-at-risk products collectively produced an average annualised return of 6.74% over an average term of 3.32 years. The upper quartile returned 9.38% per year, whereas the lower quartile returned 3.81% per year.

• 160 of these were linked solely to the FTSE 100 and these produced an average annualised return of 6.81% over an average term of 3.36 years. The upper quartile returned 8.99% per year, whereas the lower quartile returned 5.03% per year.

• The 49 Lowes ‘Preferred’ capital-at-risk products linked solely to the FTSE 100 produced an average annualised return of 7.65% over an average term of 3.11 years. The upper quartile returned 9.53% per year, whereas the lower quartile returned 6.00% per year.

• The 60 capital ‘protected’ and deposit-based products linked solely to the FTSE 100 collectively produced an average annualised return of 3.81% over an average term of 4.87 years. The upper quartile returned 5.19% per year, whereas the lower quartile returned 2.30% per year.

• The autocall / kick-out products made up 53.29% of all maturing products in 2019 and these ran for an average term of 2.50 years producing an average annualised return of 6.68%.

• The average annualised returns from the Lowes ‘Preferred’ structured deposits was 4.38% and even the bottom quartile returned 2.44% per year on average.

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.

The ‘Stars’ are the relevant top performing plans in each sub-sector.

When referring to quartiles, we mean the average of the best / worst 25% of all respective maturities.

The annualised return is calculated using the total return over the holding period from the Strike Date to the Final Index Date.

Past performance is not a guide to future performance. Investments of this nature carry risks to your capital.