US Equity HedgeSeries 1, 2 & 3

US Equity Hedge Series 1, 2 & 3Providing a short term hedge against a fall in the S&P 500

The objective of the Units in US Equity Hedge Series 1, 2 and 3 (“Series 1 Units”, “Series 2 Units” and “Series 3 Units”, respectively) is to provide a positive payout to investors in the event that the S&P 500 falls over a period of 1 year and 1 week. The Units aim to achieve this by offering leveraged exposure to the downside price movement of the S&P 500 (”the Reference Asset or Index”). This investment is fully hedged into AUD such that investors do not take any currency risk in relation to movement in the AUD/USD rate between the Commencement Date and Maturity Date.

* 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 objective of the Units in US Equity Hedge Series 1,2 and 3 (“Series 1 Units”, “Series 2 Units” and “Series 3 Units”, respectively) is to provide a positive payout to investors in the event that the S&P 500 falls over a period of 1 year and 1 week. The Units aim to achieve this by offering leveraged exposure to the downside price movement of the S&P 500 (”the Reference Asset or Index”). This investment is fully hedged into AUD such that investors do not take any currency risk in relation to movement in the AUD/USD rate between the Commencement Date and Maturity Date.

 

The S&P 500 is widely regarded as the best single gauge of large-cap U.S. equities. Created in 1957, the S&P 500 was the first U.S. market cap weighted stock market index. This world-renowned index includes 500 of the top companies in leading industries of the U.S. economy and covers approximately 80% of available market capitalisation.

 

For further information, please see below:

https://www.spglobal.com/spdji/en/indices/equity/sp-500/#overview

Key Features Table

 

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Downloads

 

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

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Key risks include:

  • Risk of 100% loss in relation to the Total Investment Cost and Upfront Adviser Fee. The Total Investment Cost equals the (Issue Price + Application Fee) x Number of Units. Investors may also incur an Upfront Adviser Fee in addition. A 100% loss will occur if the Final Price is $0 per Unit at Maturity. This will be the case if the Final Index Level is equal to or above the Strike Level at Maturity.
  • Risk of partial loss (i.e. less than 100% loss) in relation to the Total Investment Cost and Upfront Adviser Fee. The Total Investment Cost equals the (Issue Price + Application Fee) x Number of Units. Investors may also incur an Upfront Adviser Fee in addition. Investors may incur a partial loss if the Final Price is positive but less than the Issue Price at Maturity. This will occur if the Final Index Level is below the Strike Level but higher than the Break Even Point for the Final Index Level at Maturity;
  • Timing risks. The timing risk is significant. This is because the Investment Term is fixed and the Final Price received at the end of the Investment Term needs to exceed the Issue Price by the time the Maturity Date arrives in order for the investor to generate a profit from their investment (ignoring any Upfront Adviser Fee and any external costs). If this does not occur by the Maturity Date then Investors will generate a loss;
  • Your return is affected by the performance of the Reference Asset. There is no guarantee that the Reference Asset will fall below the Strike Level by the Maturity Date in order for the Final Price to be positive.
  • There will be no amount payable at Maturity if the Reference Asset is not below the Strike Level at Maturity.
  • Additionally, in the event of an Investor requests an Issuer Buy-Back or there is an Early Maturity Event, you will not receive a refund of the Issue Price or any Fees. The amount received will depend on the market value of the Units which will be determined by many factors including but not limited to the prevailing level and volatility of the Reference Asset, the distance above or below the Strike Level, prevailing Australian and US interest rates and the time to Maturity.
  • 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 US Equity Hedge Series 1, 2 & 3 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 US Equity Hedge Series 1, 2 & 3 can only be made by completing an Application Form attached to the Term Sheet PDS, after reading the Term Sheet PDS dated 6 February 2024, the Master PDS dated 14 August 2017 and Target Market Determination (for retail investors) and submitting it to Sequoia. A copy of the Termsheet PDS, Master PDS and Target Market Determination can be obtained by contacting Sequoia Asset Management on or contacting your financial adviser. You should consider the Term Sheet & Master PDS’s as well as the Target Market Determination before deciding whether to invest in Units in Future Tech Series 5. Capitalised terms on the webpage have the meaning given to them in Section 10 “Definitions” of the Master PDS.

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