Future TechSeries 6

The Units in Sequoia Future Tech Series 6 (“Series 6”) offer investors the ability to gain 100% leveraged exposure to the performance of the iEdge Artificial Intelligence & Robotics 10 EW 5% Decrement NTR Index over a 3 year period.

Summary of the key features

iEdge Artificial Intelligence & Robotics 10 EW 5% Decrement NTR Index

The Index is an equally weighted index measuring the performance of the underlying basket of stocks after deducting a constant and pre-determined synthetic dividend at a constant frequency.

The underlying basket of stocks comprises the following 10 US or European listed securities that are involved in artificial intelligence and/or robotics either by providing relevant hardware solutions, software and algorithmic artificial intelligence solutions or are engaged in the industrial applications of artificial intelligence or robotics:

Index Mechanics

• The Index is equally weighted across a basket of 10 securities, ensuring no single stock dominates performance. Each of the components are re-weighted to 10% on a quarterly basis in March, June, September, and December.
• The Index is net total return, meaning it includes the reinvestment of dividends after deducting any withholding taxes.
• The 5% decrement is a synthetic dividend which is subtracted from the index value at a constant rate of 5% per year (accrued daily). This decrement models a regular distribution, impacting returns in a predictable manner.

Investors should be aware that the interest cost on a limited recourse loan provided for an investment linked to the performance of an equivalent index without the 5% decrement mechanism would result in significantly higher interest level payable of ~10% p.a. As such, the decrement mechanism enables investors in Series 6 to gain cost efficient exposure.

Refer to https://www.sgx.com/indices/products/airo10dn for further information.

Downloads

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

Key risks include:

• Risk of 100% loss in relation to the Total Investment Cost and Upfront Adviser Fee. The Total Investment Cost equals the Prepaid Interest in relation to the Loan and the Application Fee. Investors may also incur an Upfront Adviser Fee in addition. A 100% loss will occur if there is no Performance Coupon paid at Maturity. This will be the case if the Index Performance is less than or equal to zero on the Performance Coupon Date;
• 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 Prepaid Interest in relation to the Loan and the Application Fee. Investors may also incur an Upfront Adviser Fee in addition. Investors may incur a partial loss if the Performance Coupon received during the Investment Term is less than the Break-Even Point;
• Timing risks. The timing risk is significant. This is because the Investment Term is fixed and the Performance Coupon received at the end of the Investment Term needs to exceed the Total Investment Cost 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;
• The Performance Coupon at Maturity is determined by reference to the Index Performance as well as the change in the AUD/USD exchange rate during the Investment Term. An increase in the AUD/USD exchange rate between the Commencement Date and the Performance Coupon Date will reduce any potential Performance Coupon payable (if any) whilst a decrease in the AUD/USD rate between the relevant dates will lead to an increase in the potential Performance Coupon payable (if any). As such, whether or not you break-even depends on both the Index Performance and the AUD/USD exchange rate performance 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. The amount received will depend on the market value of the Units which will be determined by many factors before the Maturity Date including prevailing interest rates in Australia and internationally, foreign exchange rates, the remaining time to Maturity, and general market risks and movements including the volatility of the Index. Investors should be aware the Units are designed to be held to Maturity and are not designed to be held as a trading instrument;
• 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 2 “Risks” of the Master PDS for more information.

Units in Sequoia Future Tech Series 6 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 Future Tech Series 6 can only be made by completing an Application Form attached to the Term Sheet PDS, after reading the Term Sheet PDS dated 28 November 2024, the Master PDS dated 17 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 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 Sequoia Future Tech Series 6. Capitalised terms on the webpage have the meaning given to them in Section 10 “Definitions” of the Master PDS.