Sequoia Future Tech – Series 1
The Units in Sequoia Future Tech – Series 1 offer investors the ability to gain 100% leveraged exposure to the Nasdaq Yewno Global Innovative Technologies ER IndexSM (”the Reference Asset or Index”) over a 3 year period. The Units have the potential to pay annual Performance Coupons of up to 10.8% at end of Year 1 and Year 2 and an uncapped Final Performance Coupon at Maturity dependant on the Series Performance (as reduced by a 10% Performance Fee) and adjusted for movements in the AUD/USD exchange rate.
A summary of the key features are as follows:
- Reference Asset / Index
- Currency Exposure
- Minimum Investment Amount
- Minimum Total Upfront Cash Cost
- The Potential for 3 Performance Coupons
- Limited recourse Loan
- Annual Interest Rate on Loan
- Application Fee
- Risk Management Fee
- Margin Calls
- SMSF Eligibility
- Nasdaq Yewno Global Innovative Technologies ER IndexSM (Nasdaq: NYGITE Index)
- AUD Hedged
- AUD $50,000
- AUD $11,075
- Two potential Performance Coupons of up to 10.8%* each, at the end of Year 1 & Year 2 plus the potential for an uncapped Final Coupon subject to changes in the AUD/USD exchange rate*
- 5.95% p.a.
- 0.7% p.a.
* as reduced by a 10% Performance Fee
Nasdaq Yewno Global Innovative Technologies ER Index
The Technology Sectors covered by the Index include:
- Deep Learning
- Image Recognition
- Speech Recognition & Chatbots
- Autonomous Vehicles
- Electric Vehicles
- Hybrid Vehicles
- 3D Graphics
- Big Data
- Cloud Computing
- Cyber Security
- Quantum Information & Optics
- Virtual Reality & AR
- Human Augmentation
- Robotic Surgery
- Digital Currency
- Internet of Things
- Mobile Payments
- Wearable Technology
- 3D Printing
- Spacecraft & Satellites
01 April 2019
29 April 2019
29 May 2019
Reference Asset Starting Level (averaged)
1st Coupon 30 March 2020:
2nd Coupon: 29 March 2021:
3rd Coupon: 29 March 2022:
Performance Coupon (%)
Sequoia Future Tech – Series 1 Performance
|Date||Reference Asset Value||Indicative Unit Value*||Gross Performance|
|29-Mar-2021||Coupon Paid||12% Gross||10.08% Net|
* Unit Value: Investors please note 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 receive an amount significantly different to the Indicative Unit Value stated
The key risks include:
- Your return (including any Performance Coupons) is affected by the performance of the Reference Asset. There is no guarantee that the Reference Asset will perform well.
- There will be no Performance Coupon payable if the performance of the Reference Asset is negative at the relevant Coupon Determination Date.
- The potential Performance Coupons are determined by reference to the Reference Asset Performance on the relevant Coupon Determination Date and deducting any past Performance Coupons paid.
- Any Performance Coupons payable will be negatively impacted by any increase in the AUD/USD exchange rate between the Commencement Date and the relevant Coupon Determination Date.
- 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.
- 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 4 “Key Risks” of the Term Sheet PDS and Section 2 “Risks” of the Master PDS for more information.
Units in Sequoia Future Tech – 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 Sequoia Future Tech Units – Series 1 can only be made by completing an Application Form attached to the Term Sheet Product Disclosure Statement (“TSPDS”), after reading the Term Sheet PDS dated 19 December 2018 and the Master PDS dated 14 August 2017 and submitting it to Sequoia. A copy of the PDS can be obtained by contacting Sequoia Asset Management on 02 8114 2222 or contacting your financial adviser. You should consider the Term Sheet & Master PDS’ before deciding whether to invest in Units in Sequoia Future Tech – Series 1. Capitalised terms on the webpage have the meaning given to them in Section 10 “Definitions” of the Master PDS.