Opportunities on the Horizon: Investing Through a Slowing Economy

Overview | WEALTH OUTLOOK 2023 | MID-YEAR EDITION | 22 FIGURE 2 : Comparing Dot-Com Bubble, Global Financial Crisis and COVID-19 Recession Recovery Times COVID-19 Recession Global Financial Crisis Dot-Com Bubble 40 50 60 70 80 90 $100 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Oct-11 Apr-12 Oct-12 Number of Days to Recover: S&P 500 1,169 days vs AVS (Net of Fee) 1,362 days vs AVS (Gross of Fee) 829 days 40 50 60 70 80 90 $100 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Number of Days to Recover: S&P 500 1,601 days vs AVS (Net of Fee) 1,418 days vs AVS (Gross of Fee) 986 days 40 50 60 70 80 90 $100 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Number of Days to Recover: S&P 500 123 days vs AVS (Net of Fee) 128 days vs AVS (Gross of Fee) 120 days Market trough occurred on Mar 23, 2020 and started recovery Market trough occurred on Mar 9, 2009 and started recovery Market trough occurred on Oct 9, 2002 and started recovery S&P 500 AVS L3 (Net of Fee) AVS L3 (Gross of Fee) Source: Citi Global Wealth Investments and Bloomberg, as of May 1, 2023. Dot-ComBubble event looks at the annualized volume frompeak date of S&P 500 on Sep 1, 2000, to trough date on Oct 9, 2002; GFC frompeak date on Oct 9, 2007, to trough date onMar 9, 2009; COVID-19 episode frompeak date on Feb 19, 2020, to trough date onMar 23, 2020. The performance of the AVS level 3 portfolio was calculated on an asset class level using indexes to proxy for each asset class. Gross of fees returns do not reflect the deduction of advisory fees. Net performance results reflect a deduction of 2.5%annual maximum fee that can be charged in connection with advisory services that covers advisory fees and transaction costs All performance information shown above is hypothetical not the actual performance of any client account. Hypothetical information reflects the application of a model methodology and selection of securities in hindsight. No hypothetical record can completely account for the impact of financial risk in actual trading. For example, there are numerous factors related to the equities, fixed income, or commodities markets in general which cannot be, and have not been accounted for in the preparation of hypothetical performance information, all of which can affect actual performance. The returns shown above are for indexes and do not represent the result of actual trading of investable assets/securities. The asset classes used to populate the allocationmodel may underperform their respective indexes and lead to lower performance than the model anticipates.