Launch Series 62 – ASX

Launch Series 62
Offering Leveraged Upside to the Australian Equity Market with an Enhanced Break-Even feature

The Units in Sequoia Launch Series 62 offer investors 100% leveraged exposure to the Australian Equity Market as measured by the S&P/ ASX200 (ASX:XJO), combined with an enhanced break-even feature for a two year period. The S&P/ASX 200 is recognized as the institutional investable benchmark in Australia. Index constituents are drawn from eligible companies listed on the Australian Securities Exchange. The S&P/ASX 200 is designed to measure the performance of the 200 largest index-eligible stocks listed on the ASX by float-adjusted market capitalization. Representative, liquid, and tradable, it is widely considered Australia’s preeminent benchmark index.

The Units are designed to give investors exposure to any positive growth of the Index over a 2 year Investment Term through the payment of a Performance Coupon at Maturity. Any Performance Coupon at Maturity is calculated by reference to the positive growth of the Index during the Investment Term applied to the 100% leveraged Investment Amount subject to:

  • a Zero Break-Even feature; and
  • a Performance Cap of 35%.

Enhanced Break-Even feature

If the Index Performance is between 0% and 13.95% at Maturity the Zero Break-Even Feature applies. This feature has the objective of ensuring that Investors at least recoup their Total Investment Cost at Maturity so long as the Index Performance is positive at Maturity. In this case the minimum Performance Coupon payable would be 13.95% irrespective of the actual Index Performance (so long as it is greater than 0%). Since the Total Investment Cost is also 13.95%, investors will at least breakeven in this case. As such, the Performance Coupon will be fixed at 13.95% whenever the Index Performance is between 0% and 13.95% at Maturity.

The calculation of the Performance Coupon at Maturity is summarised in the diagram below:

Summary of the key features

  • Reference Asset / Index
  • Potential Performance Coupons
  • Zero Break-Even feature
  • Performance Cap
  • Currency Exposure
  • Limited recourse Loan
  • Investment Term
  • Annual Interest Rate on Loan
  • Application Fee
  • Total Investment cost for the full 2 year period.
  • Margin Calls
  • SMSF Eligibility
  • Commencement Date/Issue Date
  • Maturity Date
  • Australian Equity Market as measured by the S&P/ASX200 Price Return Index (exclusive of dividends) (ASX:XJO)
  • Yes, there is potential for a Performance Coupon payable at Maturity based on the Index Performance, subject to a Zero Break-Even feature and 35% Performance Cap
  • Yes, investors will at least break-even on their Total Investment Cost so long as the Index Performance is positive at Maturity (i.e. greater than 0%).
  • Yes, the maximum Performance Coupon that can be paid to Investors is 35%
  • No
  • Yes. Investors borrow 100% of the Investment Amount.
  • 2 years
  • 6.425% p.a.
  • 1.1% including GST
  • 13.95% (payable upfront)
  • No
  • Yes
  • 31 August 2021 or as soon as reasonably practicable thereafter as determined by the Issuer and as notified to you.
  • 31 August 2023

Downloads

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

Launch Series 62 Performance

DateReference Asset Level Indicative Strategy ValueIndicative Unit Value* Performance
30-Sep-2021n/a7332.20$1.095-2.69%
29-Oct-2021 n/a7323.74$1.092-2.80%

*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 include:

  • Your return (including any Performance Coupon) is affected by the performance of the Index. There is no guarantee that the Index will perform well.
  • There will be no Performance Coupon payable if the performance of the Index is negative at Maturity and Investors will suffer a 100% loss;
  • 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 2 “Risks” of the Master PDS for more information.

For more information, please contact Sequoia at:
invest@sequoia.com.au and 02 8114 2222.

 

Units in Sequoia Launch Series 62 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 Launch Series 62 can only be made by completing an Application Form attached to the Term Sheet PDS, after reading the Term Sheet PDS dated 5 August 2021 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 or contacting your financial adviser. You should consider the Term Sheet & Master PDS’ before deciding whether to invest in Units in Sequoia Launch Series 62.  Capitalised terms on the webpage have the meaning given to them in Section 10 “Definitions” of the Master PDS