Launch Series 1
Sequoia Launch is the latest innovation from Sequoia Specialist Investments.
Launch Series 1 provides investors with exposure to the Australian share market as measured by the S&P/ASX 200 Price Return Index.
The investment is a significant leap forward in leveraged investments, as it provides uncapped performance potential to your choice of Reference Asset, the benefit of a 100% Limited Recourse Loan with Prepaid Interest for the 3 year Investment Term of $0.162 (5.40% p.a. per Unit).and additionally, provided that the Reference Asset at maturity is higher than it was at the beginning of the investment, investors will receive at least their Interest (16.2%) back via a Final Coupon.
Sequoia Launch Units Work Like This:
If the Reference Asset Ending Level is above the Reference Asset Starting Level, the Final Coupon per Unit will be $1.00 multiplied by the greater of:
- 16.2%; and
- the performance of the Reference Asset during the Investment Term.
The payment of the Final Value and the Final Coupon at Maturity is summarised in the diagram below:
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Starting Level
Date
29 April 2014
Reference Asset Starting Level (S&P/ASX200)
5,486.58
Launch Series 1 (ASX200) Performance
| Date | Reference Asset Level | Indicative Strategy Value | Indicative Unit Value* | Performance |
|---|---|---|---|---|
| 30-May-2014 | 5492.50 | n/a | $1.0011 | 0.11% |
| 30-Jun-2014 | 5395.70 | n/a | $1.00 | (1.66%) |
| 31 -Jul-2014 | 5632.90 | n/a | $1.0267 | 2.67% |
| 31-Aug-2014 | 5625.90 | n/a | $1.0254 | 2.54% |
| 30-Sep-2014 | 5292.80 | n/a | $1.0000 | -3.53% |
| 31-Oct-2014 | 5526.60 | n/a | $1.0073 | 0.73% |
| 28-Nov-2014 | 5313.00 | n/a | $1.0000 | -3.13% |
| 31-Dec-2014 | 5411.00 | n/a | $1.0000 | -1.38% |
| 30-Jan-2015 | 5588.30 | n/a | $1.0185 | 1.85% |
| 27-Feb-2015 | 5928.80 | n/a | $1.0806 | 8.06% |
| 31-Mar-2015 | 5891.50 | n/a | $1.0738 | 7.38% |
| 30-Apr-2015 | 5790.00 | n/a | $1.0553 | 5.53% |
| 29-May-2015 | 5777.20 | n/a | $1.053 | 5.30% |
| 30-Jun-2015 | 5459.0 | n/a | $1.0000 | -0.50% |
| 31-Jul-2015 | 5699.20 | n/a | $1.0388 | 3.88% |
| 31-Aug-2015 | 5207.00 | n/a | $1.000 | -5.10% |
| 30-Sep-2015 | 5021.60 | n/a | $1.000 | -8.47% |
| 31-Oct-2015 | 5266.90 | n/a | $1.000 | -4.00% |
| 30-Nov-2015 | 5166.50 | n/a | $1.000 | -5.83% |
| 31-Dec-2015 | 5344.60 | n/a | $1.000 | -2.59% |
| 29-Jan-2016 | 5005.50 | n/a | $1.000 | -8.77% |
| 29-Feb-2016 | 4880.90 | n/a | $1.000 | -11.04% |
| 31-Mar-2016 | 5010.30 | n/a | $1.000 | -8.68% |
| 30-Apr-2016 | 5252.20 | n/a | $1.000 | -4.27% |
| 31-May-2016 | 5378.60 | n/a | $1.000 | -1.97% |
| 30-Jun-2016 | 5233.40 | n/a | $1.000 | -4.61% |
| 29-Jul-2016 | 5562.30 | n/a | $1.0138 | 1.38% |
| 30-Aug-2016 | 5478.30 | n/a | $1.0000 | -0.15% |
| 30-Sep-2016 | 5435.90 | n/a | $1.000 | -0.92% |
| 31-Oct-2016 | 5317.70 | n/a | $1.0000 | -3.08% |
| 30-Nov-2016 | 5440.50 | n/a | $1.0000 | -0.84% |
| 30-Dec-2016 | 5565.80 | n/a | $1.0144 | 1.44% |
| 31-Jan-2017 | 5620.90 | n/a | $1.0245 | 2.45% |
| 28-Feb-2017 | 5712.20 | n/a | $1.0411 | 4.11% |
| 31-Mar-2017 | 5864.90 | n/a | $1.0690 | 6.90% |
| 28-Apr-2017 | 5924.10 | n/a | $1.0797 | 7.97% |
*This represents an indicative level for unwinding your investment on the reporting date and is an indication of the market value of the investment.
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 returns in excess of the Prepaid Interest, Application Fee, Currency Hedging Fee (Series 2 only) and Adviser Fee (if any) during the Investment Term. 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, Application Fee, Currency Hedging Fee (Series 2 only) and Adviser Fee (if any).
- There will be no Final Coupon payable at Maturity if the Reference Asset Ending Level is the same or less than the Reference Asset Starting Level (i.e. the performance of the Reference Asset is flat or negative).
- Payment of the Final Coupon 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.
- 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 will never be required to pay more than the Prepaid Interest, Application Fee, Currency Hedging Fee (Series 2 only) and Adviser Fee (if any). 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. If the Units are subject to Early Maturity for any reason, you will not be entitled to a refund of any Prepaid Interest, Application Fee, Currency Hedging Fee (Series 2 only) or Adviser Fee (if any) paid in relation to the Units.