Sequoia Launch Series 39

Sequoia Launch Series 39 – Berkshire Hathaway Inc. Class B Shares

Sequoia Launch Series 39 provides Investors with exposure to Berkshire Hathaway Inc Class B Shares with a 13% Volatility Target mechanism

Series 39 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 at Maturity, subject to changes in the AUD/USD exchange rate
  • 100% Limited Recourse loan with interest rates of 5.95% p.a.
  • Risk management fee of 0.7% p.a.
  • A variable participation rate mechanism designed to manage market risk associated with the performance of the Reference Asset – refer to the Termsheet PDS for more information
  • No margin calls
  • SMSF’s are eligible

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

8 June 2018

9 July 2018

8 August 2018

Initial Strategy Value

Strategy value

100

98.39376

105.0867

101.1602

Launch Series 39 (BRK) Performance

DateReference Asset LevelBRK/B Share PriceIndicative Unit Value* Gross Performance
31-Aug-2018105.0429n/a$1.03843.84%
28-Sep-2018107.158n/a$1.05935.93%
31-Oct-2018103.624n/a$1.02442.44%
30-Nov-2018108.000n/a$1.06766.76%

Launch Series 39 (BRK) Performance

* 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 (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.
  • 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.

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

Units in Sequoia Launch Units – Series 39  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 39 can only be made by completing an Application Form attached to the Term Sheet Product Disclosure Statement (“TSPDS”), after reading 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 Units – Series 39. Capitalised terms on the webpage have the meaning given to them in Section 10 “Definitions” of the Master PDS.