Sequoia Launch Series 30
Sequoia Launch Series 30 Provides Investors with Exposure to Berkshire Hathaway Inc Class B Shares (the “Reference Asset”).
Series 30 Key Features:
- 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
- 100% Limited Recourse loan with interest rates of 5.95%
- No margin calls
- SMSF’s are eligible
- A variable participation rate mechanism designed to manage market risk associated with the performance of the Reference Asset.
6 September 2017
6 October 2017
6 November 2017
Initial Strategy Value
Initial Strategy Value
Launch Series 30 (BRK) Performance
|Date||Reference Asset Level||BRK/B Share Price||Indicative Unit Value*||Gross Performance|
|6-Sep-2018||Coupon paid||n/a||12% Gross||12.00% Net|
|6-Sep-2019||Coupon paid||n/a||2.082% Gross||2.176% 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
- Your return (including any Coupons) is affected by the performance of the Reference Asset (Berkshire Hathaway Inc. Class B Shares). There is no guarantee that the Reference Asset will perform well.
- Coupons are subject to movements in the AUD/USD exchange rate;
- The Units have varying levels of exposure to the Reference Asset depending on volatility due to the variable Participation Rate. It operates by varying the exposure that the Units will have to the Reference Asset depending on the Realised Volatility of the Berkshire Hathaway Inc. Class B Shares 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.
- Investors should note that there is a lag in measuring the Realised Volatility of the Reference Asset . 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
- There will be no Performance Coupons payable if the performance of the Strategy Value is negative at a Coupon Determination Date.
- The two potential Performance Coupons and the Final Coupon are determined by reference to the Initial Strategy Value and Final Strategy Value. The Final Strategy Value is subject to averaging. Averaging may decrease the impact of an increase in the Reference Asset during the Investment Term.
- 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, 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 and Fees at Commencement.
- 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% limited recourse Loan; 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.
Units in Sequoia Launch Units – Series 30 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 Units – Series 30 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 18 July 2017 and 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 Term Sheet & Master PDS’ before deciding whether to invest in Units in Sequoia Launch Units – Series 30. Capitalised terms on the webpage have the meaning given to them in Section 10 “Definitions” of the Master PDS.