Sequoia Launch Units – Series 54 –
Dynamic Multi-Asset Strategy with Megatrend Overlay
Advised by Blackrock
The objective of the Units in Sequoia Launch Series 54 is to deliver positive returns to investors, regardless of market conditions over a 3 year period. The Units aim to achieve this by offering leveraged exposure to the Multi-Asset Index with Megatrend Overlay 5% (”the Reference Asset or Index”) advised by Blackrock. This Index is designed to track a dynamic multi-asset strategy based on iShares ETFs by Blackrock and is comprised of traditional ETFs (fixed income or equities in developed markets), non-traditional ETFs (gold, REITs and US Treasury Inflation Protected Securities (US TIPS) and up to 25% if the Index being allocated to Megatrend ETFs.
This Index has been created under a collaboration between Blackrock and BNP Paribas S.A.
- A multi-asset strategy including both systematic investing combined with an active discretionary approach;
- Extended flexibility due to a dynamic portfolio management with up to 12 portfolio rebalancing per year and constant portfolio monitoring by Blackrock;
- Large multi asset universe (21 ETFs), with a long only core/satellite approach and up to 25% allocated to megatrend investment themes to enhance access to new emerging investment opportunities;
- Blackrock’s allocation signal package
- No benchmarking or ETF maximum exposure constraints, with a view to allowing the maximum possible returns;
- High liquidity as it only provides exposure to widely traded ETFs;
- The potential for embedded leverage inside the Index as the maximum weight across all asset classes can be as high as 120%;
- Embedded FX hedging to reduce the impact of foreign exchange fluctuations;
- Controlled risk. The Index has a target annualised volatility of 5%.
- Reference Asset / Index
- Currency Exposure
- The potential for 3 uncapped Performance Coupons
- Limited recourse Loan
- Investment Term
- Annual Interest Rate on Loan
- Currency Hedging Fee
- Application Fee
- Total Investment Cost
- Margin Calls
- SMSF Eligibility
- Multi Asset Index with Megatrend Overlay 5% (“BNPIALC2 Index”)
- AUD Hedged
- Three potential uncapped Performance Coupons, payable annually, calculated by reference to the performance of the Index
- Yes. Investors borrow 100% of the Investment Amount.
- 3 years
- 3.00% p.a.
- 0.30% p.a.
- 11.00% (payable upfront)
Reference Asset Starting Value
20 December 2019
20 December 2019
Coupon Determination Date
First Coupon – 18 December 2021
Second Coupon – 20 December 2021
Maturity Coupon – 20 December 2022
Performance Coupon (%)
Launch Series 54 (Multi Asset Strategy) Performance
|Date||Reference Asset Level||Indicative Unit Value*||Performance|
|18-Dec-2020||Coupon paid||6.741% Gross||6.067% AUD 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
Launch Series 54- Key Risks
- Your return (including any Performance Coupons) is affected by the performance of the Reference Asset. There is no guarantee that the Reference Asset will perform well.
- There will be no Performance Coupon payable if the performance of the Reference Asset is negative at the relevant Coupon Determination Date.
- The potential Performance Coupons are determined by reference to the Reference Asset Performance on the relevant Coupon Determination Date and deducting any past Performance Coupons paid.
- 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 4 “Key Risks” of the Term Sheet PDS and Section 2 “Risks” of the Master PDS for more information.
Units in Sequoia Launch Units – Series 54 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 54 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 29 November 2019 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 Units – Series 54. Capitalised terms on the webpage have the meaning given to them in Section 10 “Definitions” of the Master PDS