Sequoia Launch Units – Series 61 –
Dynamic Multi-Asset Strategy with Megatrend Overlay
Advised by Blackrock
The Units in Sequoia Launch Series 61 offer 100% leveraged exposure to the Multi-Asset Index with Megatrend Overlay 5% (“the Reference Asset or Index”) advised by Blackrock for a 2 year period. The Units have the potential to pay an uncapped Performance Coupon at Maturity based on the performance of the Index during the Investment Term applied to the full leveraged Investment Amount, adjusted for changes in the AUD/USD exchange rate.
The 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. “Megatrend” refers to current global trends that may have a significant impact on society, for example, technological breakthroughs, changing demographics (increase in aged population), urbanisation, climate change, resource scarcity, and increases in wealth in emerging markets.
This Index has been created under a collaboration between Blackrock and BNP Paribas S.A. Blackrock is one of the world’s largest asset managers1 with $US 8.68 trillion under management as of 31 December 2020. and acts as the adviser to the underlying portfolio which the Index tracks.
BNP Paribas S.A. acts as the index provider and publishes the index. BNP Paribas S.A. is a French international banking group. It is a leading bank in the Eurozone and a prominent international banking institution.
- 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 Performance Coupons
- Limited recourse Loan
- Investment Term
- Annual Interest Rate on Loan
- Application Fee
- Total Investment Cost
- Margin Calls
- SMSF Eligibility
- Commencement Date
- Maturity Date
- Multi Asset Index with Megatrend Overlay 5% (“BNPIALC2 Index”)
- The potential Performance Coupon at Maturity is adjusted for changes in the AUD/USD exchange rate during the Investment Term. Otherwise, there are no other currency exposures.
- Yes, there is potential for an uncapped Performance Coupon payable at Maturity
- Yes. Investors borrow 100% of the Investment Amount.
- 2 years
- 2.9% p.a.
- 6.9.% (payable upfront)
- 06 April 2021
- 05 April 2023
Reference Asset Starting Value
09 April 2021
Launch Series 61 (Multi Asset Strategy) Performance
|Date||Reference Asset Level||Indicative Unit Value*||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
Launch Series 61 – 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 Coupon is determined by reference to the Reference Asset Performance as well as changes in the AUD/USD exchange rate. An increase in the AUD/USD exchange rate between the Commencement Date and the Maturity Date will reduce the Performance Coupon whilst a decrease in the AUD/USD rate between the relevant dates will lead to an increase in the Performance Coupon;
- 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 61 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 61 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 16 March 2021 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 61. Capitalised terms on the webpage have the meaning given to them in Section 10 “Definitions” of the Master PDS