Launch Series 11

Launch Series 11

The Units in Sequoia Launch Series 11 offers investors the ability to gain exposure to the performance of S&P/ASX200 Price Return Index (the “Reference Asset” or “S&P/ASX200”) with a 15% Volatility Target Mechanism (“the Strategy”).

Series 11 Features:

  • 3 Year Term
  • 100% limited recourse lending;
  • No margin calls or credit checks
  • 6.35% p.a. interest paid annually in advance
  • 3% Fixed Coupon for Series 11 at end of year 1 & year 2, set off against Prepaid Interest due
  • Annual walk-away feature where investors have the ability to discontinue the loan before the next interest payment date
  • At Maturity, provided the Series Performance is greater 0% (the “Hurdle”) investors will receive a Final Coupon of the GREATER of the Series Performance (up to the Performance cap of 27.5%) or a Minimum Final Coupon of 13.05%

Downloads

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

Initial Strategy Value

Date

5 August 2015

4 September 2015

5 October 2015

Initial Strategy Value (Average)

Strategy Value

100.00

89.709

90.612

93.440

Final Strategy Value

Date

4th June 2018

3rd July 2018

3rd Aug 2018

Final Strategy Value (Average)

Strategy Value

103.40888

106.57793

106.99961

105.66214

Performance Coupons

Date

29 July 2016

29 July 2017

Coupon Amount

3.0%

3.0%

Launch Series 11 (ASX200) Performance

DateReference Asset Level Indicative Strategy ValueIndicative Unit Value* Performance
2-Oct-2015n/a90.571.0000-3.59%
30-Nov-2015n/a91.651.0000-2.45%
31-Dec-2015n/a93.751.0000-0.21%
29-Jan-2016n/a89.251.0000-5.00%
29-Feb-2016n/a87.571.0000-6.79%
30-Mar-2016n/a88.011.0000-5.46%
29-Apr-2016n/a92.461.0000-1.58%
31-May-2016n/a94.481.00570.57%
30-Jun-2016n/a91.621.0000-2.47%
29-Jul-2016n/a96.501.02722.72%
30-Aug-2016n/a95.041.01161.16%
30-Sep-2016n/a94.301.00380.38%
31-Oct-2016n/a92.251.0000-1.80%
30-Nov-2016n/a94.121.00180.19%
30-Dec-2016n/a97.741.04044.04%
31-Jan-2017n/a96.971.03223.22%
28-Feb-2017n/a98.551.04904.89%
31-Mar-2017n/a101.181.07707.70%
28-Apr-2017n/a102.21.08798.79%
31-May-2017n/a98.761.05125.12%
30-Jun-2017n/a98.711.05075.07%
31-July-2017n/a98.731.05095.09%
31-Aug-2017n/a98.631.04994.98%
31-Oct-2017n/a101.981.08558.55%
31-Dec-2017n/a104.681.114211.42%
31-Jan-2018n/a104.201.109110.91%
28-Feb-2018n/a103.79$1.104810.48%
31-Mar-2018 n/a99.450$1.05865.86%
30-Apr-2018n/a103.310$1.09979.97%
31-May-2018n/a103.810$1.105010.50%
30-Jun-2018n/a105.6401.124512.45%
3-Aug-2018n/aMaturedMaturedFinal coupon 13.08%

* 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 recieve an amount significantly different to the Indicative Unit Value stated

Key Risks:

  • Your return is affected by the performance of the relevant Reference Asset. There is no guarantee that the Reference Asset will perform well.
  • There will be no Final Coupon payable if the Series Performance is less than or equal to the Hurdle. The Hurdle is 0% for Series 11.
  • There is no guarantee that the Units will generate returns in excess of the Prepaid Interest and Fees, adjusted for the Fixed Coupons (for Series 11), during the Investment Term. Additionally, in the event of an Investor requested Issuer Buy-Back, Early Maturity Event, or if you elect Annual Walkaway Option to repay your Loan before the Maturity Date, 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 will never be required to pay more than the Prepaid Interest Amount at inception and Fees. You can elect to the Annual Walk-Away Option at the end of first and second years if you wish to discontinue the Loan. No Fixed Coupon will be paid in such a case (for Series 11).
  • 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.
  • The calculation of the Final Coupon is subject to averaging. Averaging may decrease the impact of an increase in the Reference Asset during the Investment Term.
  • The Units for Series 11 will have varying levels of exposure to the relevant Reference Assets depending on volatility due to the variable Participation Rate. It operates by varying the exposure that the Units will have to the relevant Reference Asset depending on the Realised Volatility of the Reference Asset and the Target Volatility. There is the risk that the Participation Rate could drop to significantly below 100% during the Investment Term in which case Investors will not gain the full benefits of an increase of the value of the Reference Asset.
  • For Series 11 & 12, Investors should note that there is a lag in measuring the Realised Volatility of the Reference Asset. The Participation Rate is based on the higher of the Realised Volatility of the Reference Asset over the previous 20 Scheduled Business Days and the previous 60 Scheduled Business Days. This means that where there has been a period of high Realised Volatility, the Investor’s exposure to the Reference Asset will be low, regardless of whether the Reference Asset is performing positively or negatively.

Please refer to Section 2 “Risks” of the Master PDS for more information.

Units in Sequoia Launch Units – Series 11, 12 & 14 are issued by Sequoia Specialist Investments Pty Ltd (ACN ) (the “Issuer”) and arranged by Sequoia Asset Management Pty Ltd (ACN , AFSL 341506)(the “Arranger”). Investments in the Sequoia Launch Units – Series 11 can only be made by completing an Application Form attached to the Term Sheet Product Disclosure Statement (“TSPDS”), after reading the Master PDS dated 10 June 2015 and submitting it to Sequoia. A copy of the PDS can be obtained by contacting Sequoia Asset Management on or contacting your financial adviser. You should consider the PDS before deciding whether to invest in Units in Sequoia Launch Units – Series 11. Capitalised terms on the webpage have the meaning given to them in Section 10 “Definitions” of the Master PDS.