Sequoia Launch Series 31

Sequoia Launch Series 31 (Global Funds)

Picture this. You walk into a bank and they offer you a loan to borrow funds at 1.99%pa and they will lend you 100%of the value of the asset (for property investors, think of it as a 100% LVR). The bank also explains to you that the loan is limited recourse, meaning, you will not be personally liable for any shortfall on the loan if for whatever reason the asset underperforms. Worth more of a look?

Objective – Deliver Positive Returns Regardless of Market Conditions

Now, what if you borrowed this money to buy an investment that was specifically designed with an objective to deliver positive returns to investors regardless of market conditions over a 4 year period.

Sequoia Launch Series 31

Sequoia Launch Series 31 has been developed with this precisely in mind. A new investment product that gives:

  • investors exposure to a diversified basket of global investment funds. The basket has the objective of delivering positive returns, regardless of market conditions;
  • funds managed by some of the world’s largest and oldest asset managers;
  • a 4 year, 100% Loan that is limited recourse with interest rates of only 1.99%pa;
  • An additional further 110% Internal Gearing Rate
  • potential annual Performance Coupons (uncapped) based on the full leveraged investment amount.
  • AUD currency hedged.

Cash Flows at Commencement:

Investors pay four years of interest at 1.99%p.a and a one off 2% application fee upfront for the 4 year investment term and can potentially receive uncapped Performance Coupons at the end of each year.

Upfront Cash Flow requirements*

  • Investment Exposure @$1.00 per Unit
  • Loan
  • 4 years interest 1.99%p.a. (7.96%)
  • Application Fee: 2.0% (once off)
  • Upfront outlay
  • $100,000
  • ($100,000)
  • ($7,960)
  • ($2,000)
  • ($9,960)
  • $250,000
  • ($250,000)
  • ($19,900)
  • ($5,000)
  • ($24,900)
  • $500,000
  • ($500,000)
  • ($39,800)
  • ($10,000)
  • ($39,810)
  • $1,000,000
  • ($1,000,000)
  • ($79,600)
  • ($20,000)
  • ($99,600)

*excluding any Adviser Fees as negotiated between the Investor and their Adviser.

Downloads

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

Initial Strategy Value

Date

12 Oct 2017

Strategy Value

100

Strategy Value as at 7 June 2018

The Strategy Value for Sequoia Launch Series 31 on 7 June 2018 =  99.14%.

This is the date of the Issuer Buy-Back for investors who unwound their investment in Sequoia Launch Series 31 and invested into Sequoia Launch Series 31A.

7 June 2018 also is the  Commencement Date for Sequoia Launch Series 31A.

This will be the Initial Strategy Value for Sequoia Launch Series 31A.

Performance Coupons

Date

First Coupon: 12 Oct 2018

Second Coupon: 11 Oct 2019

Third Coupon: 12 Oct 2020

Final Coupon: 12 Oct 2021

Performance Coupon (%)

Performance Coupon (%)

No coupon

TBA

TBA

TBA

TBA

Launch Series 31 (Global Funds) Performance

DateStrategy ValueReference BasketIndicative Unit Value*Gross Performance
31 Oct 2017100.66n/a$1.00660.66%
31-Dec-2017100.14n/a$1.00140.14%
31-Jan-2018100.45 n/a$1.00450.45%
28-Feb-201899.25n/a$1.0000-0.75%
31-Mar-201899.350n/a$1.0000-0.65%
30-Apr-201899.230n/a$1.0000-0.77%
31-May-201899.090n/a$1.0000-0.91%

All unit holders have unwound from the investment. Therefore, We wouldn’t be reporting performance for Launch Series 31.

* 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

Key risks

  • Your return is affected by the performance of the Reference Basket. There is no guarantee that the Reference Asset or Reference Basket will perform well. If the Reference Asset or Reference Basket performs negatively during the Investment Term you could lose some or all of your invested capital.
  • The Units for Series 31 have varying levels of exposure to the Reference Basket depending on volatility due to the variable Participation Rate. It operates by varying the exposure that the Units will have to the Reference Basket depending on the Realised Volatility of the Reference Basket 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 in Series 31 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.
  • The Strategy Value has an additional 110% leverage to the Reference Basket (“Internal Gearing Rate”). This use of leverage may amplify both the losses and gains of your investment, however you can never lose more than your Initial Outlay (consisting of Prepaid Interest & any Fees).
  • There is no guarantee that the Investment will achieve its objective. There is no guarantee that the Units will generate returns in excess of any 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 any Interest or Fees.
  • Investors are subject to counterparty credit risk with respect to the Issuer and the Hedge Counterparty;
  • 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 4 “Key Risks” of the Term Sheet PDS and 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 Units – Series 31 are issued by Sequoia Specialist Investments Pty Ltd (ACN 145 459 936) (the “Issuer”) and arranged by Sequoia Asset Management Pty Ltd (ABN 70 135 907 550, AFSL 341506) (the “Arranger”). Investments in the Sequoia Launch Units – Series 31 can only be made by completing an Application Form attached to the Sequoia Launch Series 31 Term Sheet Product Disclosure Statement (“TSPDS”) dated 21 August 2017, after reading the Master PDS dated 14 August 2017 and submitting it to Sequoia.