Series 1 – ASX200

Sequoia Hindsight – Series 1 Geared Units

“With Hindsight, You Are Able To “Look Back” And Lock-In The Highest Value Of The Investment During The Investment Period….Even If The Investment Value Subsequently Falls.”

Sequoia Hindsight Units are an innovative and powerful investment solution giving you the power of hindsight. In these turbulent times, Hindsight Units have the benefit of locking-in the highest closing level of the investment (as measured by the Strategy Value) during the Investment Term (the “High Water Mark”). Returns to Investors are calculated by referencing the High Water Mark.

 

“With The Benefit Of Hindsight, You Are Able To Lock-In The Highest Value Of The Investment During The Investment Term”

Key Features

  • An investment that “locks in” the highest performance of the Reference Asset during the Investment Term by having potential returns linked to the maximum closing level of the Strategy Value (above the Initial Strategy Value) on any Scheduled Business Day during the Investment Term (“High Water Mark”).
  • 5 ½ year Investment Term (Geared Units Reset and optional termination at 3 years).
  • Potential Coupons paid at the end of each of each year of the Investment Term and a Final Coupon at Maturity, depending on the performance and volatility of the Reference Asset, the Initial Strategy Value, the High Water Mark, total Hindsight Fees and the sum of previous Coupons paid (and Performance Fees thereon). A Performance Fee is deducted from each Coupon before it is paid to Investors.
  • Limited Recourse Lending for 100% of the Investment Amount when investing in the Geared Units (Series 1). Interest is paid upfront for the first three years of the investment (the “Initial Term”). In order to continue the investment in Series 1 for the remaining 2 ½ years of the Investment Term (the “Reset Term”), you will need to pay the Prepaid Interest (which will be reset) for the Reset Term or you may elect to terminate your investment in the Units on the Reset Date.
  • The Issuer may decide in its absolute discretion to terminate the Geared Series on the Reset Date, in which case there will be no Reset Term and the Geared Series will terminate after 3 years.
  • Potential for returns which are determined by reference to the volatility of and exposure to S&P/ASX200 over the Investment Term, including the potential for enhanced returns from an increased exposure to the Reference Asset during times of low volatility of the Reference Asset.
  • An investment term of approximately 5 ½ years (for Series 1 Geared, you can terminate after 3 years).
  • Capital Protection of the Investment Amount (note that Capital Protection does not apply to Prepaid Interest (Geared Units).
  • Deferment of Hindsight Fees until Reset (Geared Series only) and Maturity – instead of paying this Hindsight Fee upfront, it is deducted from the gains (if any) on Reset (Geared Series only) and at Maturity. If there are insufficient gains to cover the Hindsight Fees at the Reset Date (Geared Series only) or Maturity (both Series), you will NOT be required to pay the shortfall.
  • You will receive shares in a leading Australian company after Maturity (or the proceeds of sale of these shares).
  • Self managed superannuation funds (“SMSFs”) are eligible to apply.
  • A variable Participation Rate, with the potential for a maximum of 150% exposure to the Reference Asset, depending on the volatility. The Participation Rate may fall to a negligible level, which means that you have no exposure to the Reference Asset

Key Risks

  • Your return is affected by the performance of the Reference Asset. There is no guarantee that the Reference Asset will perform well.
  • There is no guarantee that the Units will generate a return during the Investment Term. For the Geared Series Only, there is no guarantee that the Units will generate returns in excess of the Prepaid Interest amount. Additionally, in the event of an Investor requested Issuer Buy-Back, Early Maturity Event or if you elect to repay your Loan before the Maturity Date, you will not receive a refund on Prepaid Interest.
  • 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.
  • Capital Protection only applies to the Issue Price. You may lose your Prepaid Interest and Adviser Fee (if any) if the Units do not generate a return.
  • The Hindsight Fee is deducted from any gains on the investment prior to any returns being paid to you (including Coupons during the investment). However, if the investment does not return sufficient gains to allow for the Hindsight Fee deduction, then you will NOT be liable for the excess.
  • There will be no Coupons payable during the Investment Term or at Maturity if the positive performance of the Strategy Value, calculated by reference to the High Water Mark and the Initial Strategy Value does not exceed the total Hindsight Fees for the term.
  • The Participation Rate at the commecement was approximately 135%.The Participation Rate may fall to a negligible level, which means that you will have no exposure to the Reference Asset.
  • Gains (and losses) may be magnified by the use of a 100% Loan (Series 1 Geared Units only). However, note that the Loan is a Limited Recourse Loan, so you will never be required to pay more than the Prepaid Interest.
  • The Units may mature early following an Early Maturity Event, including as a result of an Adjustment Event or Market Disruption Event or , if your request for an Issuer Buy-Back is accepted and, for the Geared Series only, if the Issuer determines not to proceed with the Reset. If the Units are subject to Early Maturity for any reason, you will not be entitled to a refund of any Prepaid Interest (Series 1 Geared Units only), or Adviser Fee (if any) paid in relation to the Units.

[1] The investment is not a direct investment in the S&P/ASX200. For a full description of the Formulas used to determine the Strategy Value, please refer to Section 4 of the PDS.

Initial Strategy Value

Date

24 October 2013

Strategy Value

100

Performance Coupons and Final Value

Date

16 October 2014

16 October 2015

17 October 2016 (Maturity Date)

Value

$0.00^

$0.00^

($1.00 Final Value)

^Net of Performance Fees

Hindsight - Series 1 (ASX200) Performance

DateIndicative Strategy ValueHighest Indicative Strategy Value observed since CommencementIndicative Performance*Indicative Unit Price*
30-Nov-201398.20101.701.70%$1.000
31-Dec-201398.53101.701.70%$1.000
31-Jan-201494.26101.701.70%$1.000
28-Feb-201498.66101.701.70%$1.000
31-Mar-201498.27101.701.70%$1.000
30-Apr-2014100.27101.701.70%$1.0027
30-May-2014100.29101.701.70%$1.0029
30-Jun-201497.51101.701.70%$1.000
31-Jul-2014103.77103.773.77%$1.0377
31-Aug-2014103.40104.304.30%$1.0430
30-Sep-201492.80104.304.30%$1.0430
31-Oct-201499.20104.304.30%$1.0430
28-Nov-201494.00104.304.30%$1.0430
31-Dec-201495.70104.304.30%$1.0430
30-Jan-201598.70104.304.30%$1.0430
27-Feb-2015104.20104.304.30%$1.0430
31-Mar-2015103.30105.105.10%$1.0510
30-Apr-2015101.20105.105.10%$1.0510
29-May-2015100.80105.105.10%$1.0510
30-Jun-201594.80105.105.10%$1.0510
31-Jul-201598.50105.105.10%$1.0510
31-Aug-201591.20105.105.10%$1.0510
31-Oct-201590.50105.105.10%$1.000
30-Nov-201589.70105.105.10%$1.000
31-Dec-201591.70105.105.10%$1.000
29-Jan-201687.00105.105.10%$1.000
29-Feb-201685.20105.105.10%$1.000
31-May-201691.70105.105.10%$1.000
30-Jun-201688.70105.15.10%$1.000
29-Jul-201694.10105.15.10%$1.000
30-Aug-201691.60105.15.10%$1.000
30-Sep-201691.90105.15.10%$1.000
17-Oct-2016MaturedMaturedMaturedMatured

*Indicative Performance/Price: Investors please note this is a theoretical investment maturity performance. 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 Performance stated.

Units in Sequoia Hindsight Units – Series 1 & 2 are issued by JBG Structured Investments Pty Ltd (ACN 145 459 936) (the “Issuer”) and arranged by Valuestream Investment Management Ltd (ACN 094 107 034, AFSL 246621). Investments in the Sequoia Hindsight Units – Series 1 & 2 can only be made by completing an Application Form attached to the Product Disclosure Statement dated 30 August 2013 (“PDS”) and submitting it to JBG Structured Investments Pty Ltd (ABN 67 145 459 936). 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 PDS before deciding whether to invest in Units in Sequoia Hindsight Units – Series 1 & 2.

Capitalised terms in this website have the meaning given to them in Section 16 “Definitions” of the PDS.

This website has been prepared by the Issuer for general promotional purposes only and is not an offer to sell or solicitation to buy any financial products. This website does not constitute personal advice and has been prepared without taking into account your objectives, financial situation or needs. You should consider obtaining professional advice as to whether this financial product suits your objectives, financial situation or needs before investing.

You should seek independent advice in relation to the tax implications of your investment. You should note that the ATO is currently considering the tax treatment of products such as the Hindsight Units, including the availability of deductions for any interest incurred on the Loan, and may take the view that interest deductions are limited or not available (Series 1 Geared Units only). As a result, you should ensure that you are comfortable making an investment in the Units on the basis that no deduction (or capital loss) will be available in respect of interest incurred on the Loan