Sequoia Launch Series 45
Global Robotics, Automation & Artificial Intelligence
Sequoia Launch Series 45 provides investors the ability to gain leveraged exposure to a basket of two US listed exchange traded funds with a 15% Target Volatility mechanism, with each fund providing access to a diversified portfolio of underlying companies operating in the rapidly evolving robotics, automation and artificial intelligence sectors.
A summary of the key features are as follows
- Reference Basket: Equally weighted exposure to the following 2 US listed ETFs:
- Currency Exposure of Strategy Value
- The Potential for an uncapped Performance Coupon at Maturity
- Limited recourse Loan
- Annual Interest Rate on Loan
- Risk Management Fee
- Application Fee
- Volatility Mechanism
- Target Volatility
- Maximum Participation Rate
- Margin Calls
- SMSF Eligibility
ROBO Global® Robotics and Automation Index ETF (Nasdaq Ticker: ROBO)
The Global X Robotics & Artificial Intelligence ETF (Nasdaq Ticker: BOTZ)
- Reference Basket with reinvestment of net distributions with 15% Target Volatility
- Yes, over 10 Business Days from the Commencement Date and 20 Business Days before Maturity
- Potential uncapped Performance Coupon at Maturity calculated by reference to the performance of the Strategy Value subject to changes in the AUD/USD exchange rate less a 10% Performance Fee
- Yes. Investors borrow 100% of the Investment Amount.
- 5.95% p.a.
- 0.70% p.a.
Sequoia Launch Series 45 (Robotics & AI) Performance
|Date||Strategy Value||Reference Basket||Indicative Unit Value*||Gross 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
- Your return (including any Coupon) is affected by the performance of the Underlying’s comprising the Reference Basket and the AUD/USD exchange rate. There is no guarantee that the Reference Basket or the AUD/USD exchange rate will perform well.
- In the Event that an appropriate hedge cannot be achieved in relation to all or some of the Underlying’s comprising the Reference Basket, the Issuer may choose to remove the Underlying or replace the Underlying with a similar fund in its absolute discretion. Any changes will be notified on the Issuers website and in correspondence to Investors.
- The Units 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 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 Basket.
- Investors should note that there is a lag in measuring the Realised Volatility of the Reference Basket. This means that where there has been a period of high Realised Volatility, the Investor’s exposure to the Reference Basket will be low, regardless of whether the Reference Basket is performing positively or negatively.
- There will be no Performance Coupon payable if the performance of the Strategy Value is negative at a Coupon Determination Date.
- There is no guarantee that the Units will generate returns in excess of the Prepaid Interest, Risk Management Fee and other Fees, during the Investment Term. Additionally, in the event of an Investor requested Issuer Buy-Back, 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.
Units in Sequoia Launch Units – Series 45 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 45 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 28 August 2018 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 02 8114 2222 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 45. Capitalised terms on the webpage have the meaning given to them in Section 10 “Definitions” of the Master PDS