Global Lithium
Series 1

Global Lithium – Series 1 (“Series 1”) is a structured investment whereby:

• investors obtain 100% leveraged exposure to any positive performance of the Global X Lithium & Battery Tech ETF (“the Reference Asset or Fund”) over a 2 year period; and
• the potential to receive a Performance Coupon at Maturity dependent on the Fund Performance during the Investment Term applied to the full leveraged Investment Amount, subject to:
  • monthly averaging over the first 3 months of the Investment Term;
  • a 40% Performance Cap at Maturity; and
  • an adjustment for changes in the AUD/USD exchange rate during the Investment Term.

Your investment is funded via a Limited Recourse Loan (“the Loan”) and you are required to pay upfront all Prepaid Interest under the Loan and the Application Fee before the investment commences on the Commencement Date. The Prepaid Interest plus the Application Fee is referred to as the Total Investment Cost for Series 1

Global X Lithium & Battery Tech ETF

Series 1 tracks the performance of the Global X Lithium & Battery Tech ETF. The objective of this Fund is to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Lithium Index (“Underlying Index”).  The Solactive Global Lithium Index tracks the performance of the largest and most liquid publicly listed companies active in exploration and/or mining of lithium or the production of lithium batteries. Lithium is a chemical element which has several industrial applications including serving as the primary component to manufacture certain kinds of batteries. While there are no financial instruments tracking the direct price of lithium included within the Fund, the Fund gains exposure to the asset class through companies active in the exploration, mining and refinement of lithium, and the production of lithium batteries.

Breakdown as at 30 June 2022

Summary of the key features

Downloads

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

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 Series 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 1 is significant. This is because the Investment Term is fixed and the 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 at Maturity is determined by reference to the Fund Performance subject to a 40% Performance Cap 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 Fund Performance and the AUD/USD exchange rate performance during the Investment Term;
• The Performance Cap means the upside potential of the Units is limited to no more than 40% (ignoring the effect of any change in the AUD/USD exchange rate). The Units should not be expected to perform the same as a direct investment in the Fund in all circumstances;
• The calculation of the Fund Performance at Maturity is by reference to the Initial Level which is based on monthly averaging of the Fund’s Closing Level over the first 3 months of the Investment Term. Averaging may decrease any potential Performance Coupon payable at Maturity in the event that the Fund’s Closing Level increases during the first 3 months of the Investment Term. Alternatively, if the Fund’s Closing Level decreases during this period, it may have the effect of increasing any potential Performance Coupon payable at Maturity, relative to the Performance Coupon that would have been paid if there was no averaging (and assuming the Performance Cap has not been triggered and the Final Level is greater than the Initial Level at Maturity);
• 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 PDS for more information.

Units in Global Lithium Series 1 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 Global Lithium Series 1 can only be made by completing an Application Form attached to the Term Sheet PDS, after reading the Term Sheet PDS dated 3 August 2022, the Master PDS dated 17 August 2017 and Target Market Determination (for retail investors) and submitting it to Sequoia. A copy of the Termsheet PDS, Master PDS 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 PDS’s as well as the Target Market Determination before deciding whether to invest in Units in Global Lithium Series 1. Capitalised terms on the webpage have the meaning given to them in Section 10 “Definitions” of the Master PDS.