Understanding Performance Lock Features 

Performance Lock feature — a tool designed to help investors secure gains.

What Is a Performance Lock?

A Performance Lock allows investors to capture gains each year while protecting against market downturns. 

How Performance Locks Work

Performance Locks can generally be triggered in two ways:

• Automatic Trigger: The lock activates when the underlying index reaches a predefined target return.
• Manual Trigger: The investor chooses to activate the lock based on market conditions or personal investment strategy.

For example, if an investment strategy has already generated strong gains, an investor may decide to secure those returns rather than risk losing them during a market downturn.

After the lock is in place, future investment fluctuations no longer affect that portion of the investment. The Investor has the option of reinvesting that money and re-establishing downside protection.

Why Investors Use Performance Locks

1. Protecting Gains

The primary purpose of a Performance Lock is profit protection. Markets can shift quickly, and gains achieved earlier in a term may disappear if volatility increases. Locking performance helps preserve accumulated returns.

2. Managing Market Volatility

Performance Locks can also serve as a risk-management tool. If investors believe the market may decline, activating the lock can stop further exposure to negative market movements.

3. Reducing Emotional Decision-Making

Having a built-in mechanism to secure gains may help investors avoid reacting emotionally to short-term market swings. This creates a more disciplined investment approach.

Who Might Benefit Most?

Performance Lock features may appeal to investors who:

• Want growth while also limiting downside risk
• Prefer a more conservative investment approach
• Are concerned about market volatility near retirement
• Value flexibility and active risk management within their investment strategy

Final Thoughts

Performance Lock features add another layer of customization and control for investors navigating uncertain markets. By allowing gains to be secured before, these features can help protect earnings and reduce exposure to sudden market declines.