Sequoia Launch Units Series 59 Dow Jones Industrials Average

Sequoia Launch Series 59

The US share market as measured by the Dow Jones Industrials Average Index®

The Units in Sequoia Launch Series 59 is designed to offer investors the ability to gain exposure to the US stock market as measured by the Dow Jones Industrials Average Index® (“Reference Asset”) with a 15% Volatility Target mechanism over a 2 year term and the potential to receive an uncapped Performance Coupon at Maturity dependent on the Strategy Value Performance.

Features
  • Reference Asset/Index
  • Strategy
  • Currency Exposure
  • Investment Term
  • Performance Coupons
  • Limited recourse Loan
  • Annual Interest Rate on Loan
  • Currency Management Fee
  • Application Fee
  • Total Investment Cost
  • Averaging
  • Margin Calls
  • SMSF Eligibility
Launch Series 59
  • Dow Jones Industrials Average® (BloombergTicker: INDU)
  • Reference Asset With 15% Volatility Target
  • AUD Hedged
  • 2 Years
  • Yes, one potential uncapped Performance coupon at maturity
  • Yes. Investors borrow 100% of the Investment Amount
  • 5.95% p.a. Payable for the full 2 years upfront
  • 0.7% p.a. payable for the full 2 years upfront
  • 1.65% Including GST
  • 14.95% Payable Upfront
  • Yes
  • No
  • Yes

Offer Documents

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

Reference Asset Starting Level

Date

18 December 2020

Reference Asset

100

Launch Series 59 Performance

DateStrategy ValueReference BasketIndicative Unit Value*Gross Performance
31-Dec-2020101.42n/a$1.011.42%
29-Jan-202199.35n/a$1.00-0.65%
28-Feb-2021102.50n/a$1.0252.65%
31-Mar-2021109.14n/a$1.099.14%
30-Apr-2021112.10 n/a$1.1212.10%
28-May-2021114.27 n/a$1.1414.27%
30-Jun-2021114.18 n/a$1.1314.18%
30-Jul-2021115.61 n/a$1.1415.61%
31-Aug-2021117.02 n/a $1.144 17.02%

* 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

The key risks include:

  • Your return (including any Performance Coupon) is affected by the performance of the Reference Asset (DJIA). There is no guarantee that the Reference Asset will perform well.
  • 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 Reference Asset 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 Coupon payable if the Strategy Value Performance is negative on the Maturity Date.
  • 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 an 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 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;
  • 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.

For more information, please contact Sequoia at:
invest@sequoia.com.au and 02 8114 2222.

 

Units in Sequoia Launch Series 59 –  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 Series 59 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 13 November 2020 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 Series 59.  Capitalised terms on the webpage have the meaning given to them in Section 10 “Definitions” of the Master PDS.