Series 34 (Lithium Basket)

Sequoia Launch Units – Series 34 – Global Lithium Mining, Batteries and Electric Vehicles

Uncapped Income Potential

HOW TO PARTICIPATE IN THE DISRUPTION OF THE GLOBAL ENERGY AND TRANSPORTATION INDUSTRIES

The global economy is undergoing structural change in how we use energy as governments and global industry leaders focus on technological advancement aimed at reducing our reliance on carbon fuels. Sequoia Specialist Investments Pty Ltd’s (ACN 145 459 936) latest investment opportunity give investors the ability to gain exposure to those companies driving the future disruption of the global energy and transportation industries:

The units in Sequoia Launch Series 34 offer investors the ability to gain exposure to the performance of an internationally diversified basket of some of the world’s leading companies which play a critical role in the following sectors:

  • Global Lithium mining;
  • Lithium Ion battery technological advancement and manufacturing; and
  • Electric Vehicle and Energy Storage Unit production and distribution around the world.

See the ‘Key Risks’ section below for further information on the risks of this investment.

Reference Basket:

Equally
weighted
basket
of the following
shares

Stock

Tesla Motors Inc (TSLA.US)
Panasonic Corporation (6752.JP)
Samsung SDI (006400.KS)
BYD Company Ltd (1211.HK)
Albemarle Corporation (ALB.US)

Sector

Electric Vehicles, Battery
Electronics, Batteries
Battery Technology
Electric Vehicles, Battery
Lithium Mining

A summary of the key features are as follows:

Features
  • Strategy
  • Investment Term
  • Currency Exposure
  • Limited recourse Loan
  • Annual Interest Rate on Loan
  • Currency Management Fee
  • Coupons
  • Performance Cap at Maturity
  • Application Fee
  • Volatility Target
  • Maximum Participation Rate
  • Averaging
  • Margin Calls
  • SMSF Eligibility
  • Minimum Loan and Investment
Series 34
  • Reference Basket with 24% Volatility Target
  • 2 years
  • Fully AUD Hedged
  • Yes, 100% loan
  • 8.55% p.a.
  • 1.4% p.a.
  • Potential for an uncapped Performance Coupon to be paid at Maturity subject to movements in the Strategy Value during the Investment Term and as reduced by a 10% Performance Fee
  • No
  • 2.2%
  • 24%
  • 100%
  • Yes
  • No
  • Yes
  • $50,000

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

27 December 2017

28 December 2017

29 December 2017

Initial Strategy Value

Initial Strategy Value

TBA

TBA

TBA

TBA

Launch Series 34 Performance

DateIndicative Strategy ValueIndicative Unit Value* Gross Performance
31-Dec-2017100.34$1.00340.34%
31-Jan-2018100.69$1.00690.69%
28-Feb-201896.01$1.0000-3.99%
31-Mar-201887.240$1.0000-12.76%
30-Apr-201889.410$1.0000-10.59%
31-May-201886.410$1.0000-13.59%
29-Jun-201890.110$1.0000-9.89%
31-Jul-201887.210$1.0000-12.79%
31-Aug-201888.310$1.0000-11.69%
28-Sep-201892.230$1.0000-7.77%
31-Oct-201891.720$1.0000-8.28%
30-Nov-201891.760$1.0000-8.24%

Key Risks:

  • Your return (including any Coupon) is affected by the performance of the Underlying Shares comprising Reference Basket. There is no guarantee that the Underlying Shares or the Reference Basket will perform well.
  • The Units are subject to a Performance Fee payable to the Issuer. This has the effect of reducing the overall return (if any).
  • 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 Underlying Shares comprising the Reference Basket 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 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 Coupons payable if the performance of the Strategy Value is negative at the Coupon Determination Date.
  • The potential Performance Coupon is determined by reference to the Initial Strategy Value and the Final Strategy Value. The Initial Strategy Value and Final Strategy Value are subject to averaging. Averaging may decrease the impact of an increase in the Reference Basket during the Investment Term.
  • 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% limited recourse 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; 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 34 (the “Units”) are issued by Sequoia Specialist Investments Pty Ltd (ACN 145 459 936) (the “Issuer”) and arranged by Sequoia Asset Management Ltd (ACN 094 107 034, AFSL 341506). Investments in the Units can only be made by completing an Application Form attached to the Term Sheet Product Disclosure Statement (“TSPDS”) dated on or around 23 November 2017 and submitting it to Sequoia Specialist Investments Pty Ltd (ABN 67 145 459 936). A copy of the Term Sheet PDS and Master PDS dated 14 August 2017 can be obtained from the link in this website, or by contacting Sequoia Asset Management on 02 8114 2222. You should consider both PDS’ before deciding whether to invest in Units in Sequoia Launch Units – Series 34

You should seek independent advice in relation to the tax implications of your investment. 

The Issuer may, in its discretion, extend or shorten the Offer Period for the Units without prior notice.  If this happens, the Commencement Date and one or more consequential dates for the Units may vary. The Issuer may also defer the Commencement Date for the Units, in which case the Maturity Dates and other consequential dates for the Units may vary.  If the Issuer varies the Offer Period or the Commencement Date for the Units it will post a notice on the website informing applicants of the change at www.sequoiasi.com.au