Gold OptimiserSeries 3

Gold Optimiser Series 3

The Units in Gold Optimiser Series 3 are designed to offer investors the ability to gain exposure to the performance of the London Bullion Market Association Gold Price PM (“Gold Spot Price”) with a 14% Volatility Target Mechanism (“The Strategy”) over a 3 year Investment Term and the potential to receive an uncapped Performance Coupon at Maturity dependent on the Strategy Value Performance after application of the Optimised Profit Lock-in Feature.

Sequoia Gold Optimiser - Series 3 Performance

DateReference Asset LevelIndicative Unit Value*Performance
30-Sep-2020TBATBATBA
30-Oct-2020 99.25 $1.00-0.75%
30-Nov-2020 95.53 $1.00-4.47%
30-Dec-2020100.18$1.000.18%
29-Jan-202198.19 $1.00-1.81%
25-Feb-2021 92.59 $1.00-7.41%
31-Mar-2021 90.91$1.00-9.09%
30-Apr-2021 93.94 $1.00-6.06%
28-May-2021 101.10 $1.011.10%
30-Jun-2021 93.77 $1.05-6.23%
30-Jul-2021 95.97 $1.06 -4.03%
31-Aug-2021 95.37$1.052 -4.63%
30-Sep-2021 91.38$1.036 -8.62%
29-Oct-202191.89$1.040-8.11%
30-Nov-202192.63$1.036-7.37%
31-Dec-202192.73$1.039-7.27%
31-Jan-202292.00$1.036-8.00%
28-Feb-202297.97$1.072-2.03%
31-Mar-202299.18$1.076-0.82%
30-Apr-202298.94$1.065-1.06%
31-May-202296.03$1.051-3.97%

* This represents an indicative level for unwinding your investment on the reporting date and is an indication of the market value of the investment.

** The Gross Performance refers to the performance of either the underlying Reference Asset or Strategy Value as at the end of the relevant month, whichever is applicable depending on the terms of the Termsheet PDS.

A summary of the key features are as follows:

 

Optimised Profit Lock-in Feature

 

Series 3 includes an Optimised Profit Lock-in Feature which is intended to lock-in future positive performance in the Strategy Value, assuming the Strategy Value is able to close above any of the Ladder Levels on a monthly closing basis. If this occurs, the Corresponding Locked Level will create a floor to the Performance Coupon payable at Maturity before deduction of a 10% Performance Fee. This applies to the full leveraged investment amount.

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Initial Strategy Value

 

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Key risks include:

  • Your return (including any Coupons) is affected by the performance of the Reference Asset. 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 no Corresponding Locked Level applies and the Strategy Value Performance is zero or negative on the Maturity Date.
  • The Performance Coupon is determined by reference to the Initial Strategy Value, Final Strategy Value and the application of any Corresponding Locked Level at Maturity as well as changes in the AUD/USD exchange rate. An increase in the AUD/USD exchange rate will decrease the Performance Coupon whilst a fall in the AUD/USD exchange rate will increase 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 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; 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.

 

Please refer to Section 2 “Risks” of the Master PDS for more information

 

The Sequoia Gold Optimiser Series 3 are issued by Sequoia Specialist Investments Pty Ltd (ACN ) (the “Issuer”) and arranged by Sequoia Asset Management Pty Ltd (ACN , AFSL 341506)(the “Arranger”). Investments in The Sequoia Gold Optimiser Series 3 can only be made by completing an Application Form attached to the Term Sheet Product Disclosure Statement (“TSPDS”) dated 12 August 2020, after reading 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 The Sequoia Gold  Optimiser Series 3 . Capitalised terms on the webpage have the meaning given to them in Section 10 “Definitions” of the Master PDS..

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