CommoditiesSeries 8

Commodities Series 8 - Diversified Commodities Index

Sequoia Commodities Series 8 (“Series 8”) is a structured investment whereby investors obtain 100% leveraged exposure to any positive performance of a diversified commodities index (“the Reference Asset or Index”) over a 2 year period with the potential to receive an uncapped Performance Coupon at Maturity dependent on the Index Performance applied to the full leveraged Investment Amount, adjusted for changes in the AUD/USD exchange rate during the Investment Term .

Sequoia Commodities - Series 8 Performance

DateReference Asset LevelIndicative Unit Value*Performance
Initial Index Level254.55Initial FX0.7107
30-Apr-2022 TBA TBA TBA
31-May-2022257.84$1.0961.29%

* This represents an indicative level for unwinding your investment on the reporting date and is an indication of the market value of the investment.

Commodities Series 8 tracks the performance of the BNP Paribas Strategy C52 10% Index (“Index”). The objective of this Index is to provide a long only, diversified exposure to the commodity asset class, excluding Agriculture and Livestock, with a targeted volatility of 10%. For more information, please refer to the following link: https://indx.bnpparibas.com/Strategy/Index?pid=b21gpePis2T4hX8u9lQXbw%3D%3D&subid=7N4AK1B9S6xGFWgvnsTMvA%3D%3D

Summary of the key features

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Downloads

 

To find out more, and to download a copy of the Term Sheet IM and Master IM, please click on the links below

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Key risks include:

  • Risk of 100% loss in relation to the Total Investment Cost and Upfront Adviser Fee. The Total Investment Cost equals the Prepaid Interest in relation to the Loan and the Application Fee. Investors may also incur an Upfront Adviser Fee in addition. A 100% loss will occur if there is no Performance Coupon paid at Maturity. This will be the case if the Index Performance is zero or negative at Maturity;
  • Risk of partial loss (i.e. less than 100% loss) in relation to the Total Investment Cost and Upfront Adviser Fee. The Total Investment Cost equals the Prepaid Interest in relation to the Loan and the Application Fee. Investors may also incur an Upfront Adviser Fee in addition. Investors may incur a partial loss if the Performance Coupon received at Maturity is less than the Break-Even Point;
  • Timing risks. The timing risk associated with Series 8 is significant. This is because the Investment Term is fixed and the Index Performance adjusted for changes in the AUD/USD exchange rate (i.e. Series Performance) needs to exceed the Break-Even Point by the time the Maturity Date arrives in order for the investor to generate a profit from their investment (ignoring any Upfront Adviser Fee and any external costs). If this does not occur by the Maturity Date then Investors will generate a loss;
  • The potential Performance Coupon is determined by reference to the Index Performance as well as changes in the AUD/USD exchange rate. An increase in the AUD/USD exchange rate between the Commencement Date and the Maturity Date will reduce the potential Performance Coupon whilst a decrease in the AUD/USD rate between the relevant dates will lead to an increase in the potential Performance Coupon. As such, whether or not you break-even depends on both the Index Performance and the AUD/USD exchange rate performance during the Investment Term;
  • There is no guarantee that the Units will generate returns in excess of the Prepaid Interest and Fees, during the Investment Term;
  • Additionally, in the event of an Investor requested Issuer Buy-Back or Early Maturity Event, you will not receive a refund of your Prepaid Interest or Fees. The amount received will depend on the market value of the Units which will be determined by many factors before the Maturity Date including prevailing interest rates in Australia and internationally, foreign exchange rates, the remaining time to Maturity, and general market risks and movements including the volatility of the Index. Investors should be aware the Units are designed to be held to Maturity and are not designed to be held as a trading instrument;
  • Gains (and losses) may be magnified by the use of a 100% Loan. However, note that the Loan is a limited recourse Loan, so you can never lose more than your Prepaid Interest Amount and Fees paid at Commencement.
  • Investors are subject to counterparty credit risk with respect to the Issuer and the Hedge Counterparty; and
  • The Units may mature early following an Early Maturity Event, including an Adjustment Event, Market Disruption Event or if the Issuer accepts your request for an Issuer Buy-Back.

 

Please refer to Section 2 “Risks” of the Master IM for more information.

 

For more information, please contact Sequoia at:
invest@sequoia.com.au and 02 8114 2222.

 

Units in Sequoia Commodities – Series 8 are issued by Sequoia Specialist Investments Pty Ltd (ACN 145 459 936 ) (the “Issuer”) and arranged by Sequoia Asset Management Pty Ltd (ACN 135 907 550, AFSL 341506) (the “Arranger”). Investments in the Sequoia Commodities – Series 8 can only be made by completing an Application Form attached to the Term Sheet IM, after reading the Term Sheet IM dated 23 March 2022, the Master IM dated 11 April 2019 and Target Market Determination (for retail investors) and submitting it to Sequoia. A copy of the Termsheet IM, Master IM and Target Market Determination can be obtained by contacting Sequoia Asset Management on or contacting your financial adviser. You should consider the Term Sheet & Master IM’s as well as the Target Market Determination before deciding whether to invest in Units in Sequoia Commodities – Series 8. Capitalised terms on the webpage have the meaning given to them in Section 10 “Definitions” of the Master IM.

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