Booster Series 9 (ASX200)

The Australian Share Market As Measured By The S&P/ASX200 Price Return Index

Sequoia Booster Units – Series 9 (“Units”) offer Investors a 3 year exposure to the performance of the Australian share market as measured by the S&P/ASX 200 Price Return Index as well as a compulsory limited recourse Loan under which Investors borrow 100% of the Investment Amount.

Investors enjoy the cash flow benefit of being able to pay interest annually in advance and receive fixed Coupons during the Investment Term that are not dependent on performance. The fixed Coupons are set-off against the Prepaid Interest payments, reducing the net amount payable by Investors.

Series 9

Reference Asset

Interest Rate

Fixed Coupon (payable at the end of year 1 & 2, set off against Interest)

Series 9

S&P/ASX 200 Price Return Index

6.30% p.a

4.50% of the Issue price
per Unit.

Features Include:

  • Variable exposure to the Australian share market as measured by the S&P/ASX 200 Price Return Index via the Strategy Value which is used to determine the level of exposure to the Reference Asset (which depends on the performance and volatility of the S&P/ASX 200 Price Return Index).
  • A Fixed Final Value on the Scheduled Maturity Date of the Issue Price of $1.00 per Unit.
  • Receive shares in a leading Australian company after Maturity.
  • An investment term of approximately 3 years.
  • Annual Walk Away Option allowing the Investor the annual choice to continue or discontinue the Loan and their investment in the Units at the end of each year.
  • Self managed superannuation funds (“SMSFs”) are eligible to apply for Units.
  • A variable Participation Rate, with the potential for a maximum of 150% exposure to the Reference Asset, depending on the volatility of the Reference Asset[1].
  • Two fixed Coupons of 4.5% of the Issue Price per Unit payable at the end of year 1 and year 2 of the Investment Term.
  • The potential to receive a Final Coupon at Maturity.  The amount of the Final Coupon is equal to the amount (if any) by which the Strategy Value (which depends on the performance and volatility of the Reference Asset (subject to averaging)) exceeds the sum of the Initial Strategy Value and Gross First Coupon and Gross Second Coupon (i.e. the two fixed Coupons plus the Performance Fees payable thereon), less any Performance Fee payable in respect of the Final Coupon.
  • A compulsory Limited Recourse Loan for 100% of the Investment Amount.  Interest is prepaid each year, annually in advance at a rate of 6.30% p.a.

Key Risks

  • Your return is affected by the performance and volatility of the S&P/ASX Price Return Index. There is no guarantee that the S&P/ASX Price Return Index will perform well.
  • There is no guarantee that the Units will generate returns in excess of the total Prepaid Interest and Application Fee paid.    Additionally, in the event of an Investor requested Issuer Buy-Back, Early Maturity Event or if you elect to use the Annual Walk Away Option or repay your Loan before the Maturity Date, you will not receive a refund of Prepaid Interest or the Application Fee.
  • The Fixed Final Value does not apply if an Early Maturity Event occurs or if you request an Issuer Buy-Back or if you elect to use the Annual Walk Away Option.
  • The Participation Rate as at the date of the PDS would have been approximately 141.85%.  The Participation Rate may fall to 0% which means that Investors would have no exposure to the Reference Asset.
  • If an Investor elects to use the Annual Walk Away Option, the Loan and the Units will terminate, the Fixed Final Value per Unit will not apply and the Investor will not receive the fixed Coupon payable in respect of the previous year or any future Coupons or the Final Value.
  • Payment of Coupons and the Final Value depends on the Issuer meeting its obligations and the Hedge Counterparty’s ability to meet their obligations under the Hedge.  Investors are subject to counterparty credit risk with respect to the Issuer and the Hedge Counterparty.
  • There will be no Final Coupon if there has not been an increase in the Strategy Value (subject to averaging) greater than the Gross First Coupon and Gross Second Coupon over the Investment Term.
  • Gains (and losses) may be magnified by the use of a 100% Loan.  However, note that the Loan is a limited recourse.

Downloads

Initial Strategy Value

Date

19 December 2013

20 January 2014

19 February 2014

Initial Strategy Value

Strategy Value

100.00

102.06

104.05

102.04

Coupons

Date

19 December 2014

18 December 2015

19 December 2016

Net Coupon

$0.045 per Unit* (offset against Interest due for Year 2)

$0.045 per Unit* (offset against Interest due for Year 3)

$0.00

# Net of Performance Fees

Booster Series 9 (ASX200) Performance

DateIndicative Strategy Value Indicative Unit Value* Gross Performance
28-Feb-2014103.91$1.01841.840%
31-Mar-2014103.5$1.01441.440%
30-Apr-2014105.64$1.03543.540%
30-May-2014105.66$1.03563.560%
30-Jun-2014102.75$1.00710.710%
31-Jul-2014109.35$1.0727.170%
31-Aug-2014109.00$1.06836.83%
30-Sep-201495.40$1.0000-6.50%
31-Oct-2014104.50$1.02422.42%
28-Nov-201499.10$1.0000-2.87%
Coupon Paid - 5% Gross
31-Dec-2014100.80$1.0000-1.21%
30-Jan-2015104.00$1.00001.93%
27-Feb-2015109.90$1.02717.71%
31-Mar-2015108.90$1.01736.73%
30-Apr-2015106.70$1.0004.58%
29-May-2015106.20$1.00004.09%
30-Jun-2015100.00$1.0000-1.99%
31-Jul-2015103.90$1.00001.83%
31-Aug-201594.30$1.000-7.58%
30-Sep-201593.00$1.000-8.85%
31-Oct-201595.40$1.000-6.50%
30-Nov-201594.60$1.000-7.28%
Coupon Paid: 5% Gross
29-Jan-201691.80$1.000-10.03%
29-Feb-201689.90$1.000-11.89%
31-Mar-201692.40$1.000-9.44%
30-Apr-201694.90$1.000-6.99%
31-May-201696.80$1.000-5.13%
30-Jun-201693.60$1.000-8.26%
29-Jul-201699.30$1.000-2.68%
30-Aug-201699.60$1.000-2.38%
30-Sep-201697.00$1.000-4.93%
31-Oct-201693.80$1.0000-8.07%
30-Nov-201695.60$1.0000-6.30%
19-Dec-2016MaturedMaturedMatured

* Unit Value: Investors please not this is a theoretical investment maturity value. This investment is designed to be held to maturity. Any investors seeking to redeem prior to maturity may recieve an amount significantly different to the Indicative Unit Value stated.

[1] The Participation Rate may fall to 0% which means that Investors would have no exposure to the Reference Asset.