For Financial Adviser use only. Not to be used with retail clients. Investec Structured Products Guide to Backtesting Backtesting can be a useful tool for advisers in order to evaluate the performance of a structured product in various market scenarios. Backtesting should be used as one of a suite of tools when choosing a suitable product for a client. The information provided in this factsheet is intended to demonstrate how our Kick-Out Plans would have performed historically, had they been available for investment. Particular emphasis has been placed on the scenarios in which clients would have either lost capital or received no return on their investment. In order to simulate past performance, our Kick-Out Plans have been tested as if they had started on every trading day between January and April 214. For reference, backtesting a 6 year Plan between and 214 constitutes over 6, individual tests. It is important to bear in mind that the information contained within this factsheet is in no way an indication of future returns. This is an analysis of the following Plans: FTSE 1 Kick-Out Deposit Plan FTSE 1 Enhanced Kick-Out Plan Dual Index Enhanced Kick-Out Plan FTSE 1 Defensive Kick-Out Plan
FTSE 1 Kick-Out Deposit Plan This product has a maximum term of 6 years, with the potential for maturity after years 3-6 if the FTSE 1 Index is greater than its starting level. This product does not put capital at risk. experienced a positive return or a return of capital with no additional return. Early Maturity in Year 3 443 72.1% Early Maturity in Year 4 277 4.5% Early Maturity in Year 5 279 4.5% Final Maturity positive return 231 3.8% Final Maturity 925 15.1% Total number of tests 6142 The chart below shows the start date of any instances where investment in the FTSE 1 Kick-Out Deposit Plan would have only resulted in a return of capital with no additional return: 8 7 6 FTSE 1 Index Starting Level 5 4 3 Mar Feb 21 677 instances of Mar 26 Dec 27 248 instances of 199 22 24 26 28 21 212 214 Final for backtesting FTSE 1 Index Source of FTSE 1 Index Data: Bloomberg. 1
FTSE 1 Enhanced Kick-Out Plan This product has a maximum term of 6 years, with the potential for maturity after years 2-6 if the FTSE 1 Index is greater than its starting level. Capital is at risk if the FTSE 1 Index halves during the product term. experienced either a positive return, a return of capital with no additional return or a capital loss. Early Maturity in Year 2 4725 76.9% Early Maturity in Year 3 123 2% Early Maturity in Year 4 213 3.5% Early Maturity in Year 5 135 2.2% Final Maturity positive return 231 3.8% Final Maturity capital loss 56.9% Final Maturity 659 1.7% Total number of tests 6142 The chart below shows the start date of any instances where investment in the FTSE 1 Enhanced Kick-Out Plan would have resulted in either a capital loss or a return of capital with no additional return: 8 7 Apr 1999 Sep 56 instances of capital loss 6 FTSE 1 Index Starting Level 5 4 3 Feb 1999 Feb 21 418 instances of Mar 26 Dec 27 241 instances of return of capital only 199 22 24 26 28 21 212 214 Final for backtesting FTSE 1 Index Source of FTSE 1 Index Data: Bloomberg. 2
Dual Index Enhanced Kick-Out Plan This product has a maximum term of 6 years, with the potential for maturity after years 1-6 if both the FTSE 1 Index and S&P 5 Index are higher than their respective starting levels. Capital is at risk if either the FTSE 1 Index or the S&P 5 Index halves during the product term. experienced either a positive return, a return of capital with no additional return or a capital loss. Early Maturity in Year 1 438 72.8% Early Maturity in Year 2 534 8.9% Early Maturity in Year 3 97 1.6% Early Maturity in Year 4 225 3.7% Early Maturity in Year 5 123 2% Final Maturity positive return 22 3.7% Final Maturity capital loss 149 2.5% Final Maturity 288 4.8% Total number of tests 616 The chart below shows the start date of any instances where investment in the Dual Index Enhanced Kick-Out Plan would have resulted in either a capital loss or a return of capital with no additional return: 8 7 Apr 1999 Sep 51 instances of capital loss Jan 27 Dec 27 98 instances of capital loss 18 6 16 14 FTSE 1 Index Starting Level 5 4 3 Feb 1999 Feb 21 288 instances of 12 8 6 4 2 S&P 5 Index Starting Level 199 22 24 26 28 21 212 214 Final for backtesting FTSE 1 Index S&P 5 Index Source of FTSE 1 Index Data: Bloomberg. 3
FTSE 1 Defensive Kick-Out Plan This product has a maximum term of 6 years, with the potential for maturity after years 3-6 if the FTSE 1 Index is greater than 9% of its starting level. Capital is at risk if the product runs to the final maturity date and the FTSE 1 Index is below 5% of its starting level. experienced either a positive return, a return of capital with no additional return or a capital loss. Early Maturity in Year 3 4898 79.7% Early Maturity in Year 4 434 7.1% Early Maturity in Year 5 21 3.4% Final Maturity positive return 273 4.4% Final Maturity capital loss % Final Maturity 327 5.3% Total number of tests 6142 The chart below shows the start date of any instances where investment in the FTSE 1 Defensive Kick-Out Plan would have resulted in either a capital loss or a return of capital with no additional return: 8 7 6 FTSE 1 Index Starting Level 5 4 3 Jul Sep 327 instances of 199 22 24 26 28 21 212 214 Final for backtesting FTSE 1 Index Source of FTSE 1 Index Data: Bloomberg. 4
WINNER 213 Best Overall SP Provider 213 Best Income Plan 213 Best Service to IFAs 29, 1, 11, 12 & 13 Best Marketing Material 21, 11, 12 & 13 For more information visit www.investecstructuredproducts.com For technical help call 27 597 465 The Plans referred to herein are not sponsored, endorsed, or promoted by the index providers, and the index providers bear no liability with respect to any such Plans or any index on which such Plans are based. The prospectus and relevant Plan brochure contains a more detailed description of the limited relationship the index providers have with the license and any related products. Investec Structured Products is a trading name of Investec Bank plc. Investec Bank plc (Reg. no. 48964) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority and a member of the London Stock Exchange. Registered at 2 Gresham Street, London EC2V 7QP. 314881/TAL414