Structured Products Annual Performance Review 2022

Headline numbers

All Products

Structured Products Maturities 2021

Lowes ‘Preferred’ Plans

529 483

Number of Product Maturities

82 76

Number of Products Generating Positive Returns Number of Products that Returned Capital Only

40

6 0

6

Number of Products that Lost capital Average Duration / Term (years)

3.39

4.04

Average Annualised Returns All Capital-at-Risk Products

6.82% 9.57% 4.23% 2.13% 4.87% 0.00% 6.20% 9.34% 2.56%

7.57% 11.30% 4.22% 3.89% 5.53% 0.94% 6.99% 10.77% 3.26%

Upper Quartile Lower Quartile

All Deposit Products

Upper Quartile Lower Quartile

All Products

Upper Quartile Lower Quartile

KeyTakeaways

of all maturing products in 2021, returning an average annualised return of 7.03% across an average 2.91 years. • Consistent with recent years, the FTSE 100 Index in isolation was the most prevalent underlying measurement utilised, accounting for 62% of all maturities. • 59.48% of capital-at-risk maturities were linked solely to the FTSE 100 Index and these produced an average annualised return of 7.01% over an average duration of 2.88 years. The upper quartile returned 9.57% per year, whereas the lower quartile returned 5.02% per year. • 70 deposit plans matured in 2021, 55 of which were linked solely to the FTSE 100 Index. The 70 collectively produced an average annualised return of 2.13% over an average duration of 4.69 years.

• 529 plans matured in 2021, representing a 125% increase from 2020. • 91.30% of all products maturing in 2021 generated all positive returns for investors, with 7.56% returning capital only and 1.13% returning a loss. • 6 maturing plans that realised a capital loss were share linked plans. • No Lowes ‘Preferred’ plans matured realising a capital loss; 6 returned original capital in full with no further gain. • The 459 maturing capital-at-risk plans collectively produced an annualised return of 6.82% over an average duration of 3.19 years. The upper quartile returned 9.57% per year, whereas the lower quartile returned 4.23% per year. • Autocall / kick-out products made up 75.61%

This review and comparative analysis considers only those structured products that were available for distribution via UK intermediaries. With the exception of the table overleaf it therefore ignores the investments which were exclusively available to

Lowes clients that matured in the year. There were five such investments, all of which were FTSE 100 linked and all of which matured on their second anniversary, delivering an average annualised return of 7.75%.

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