Marcel Collignon

Sequoia Financial Group Limited (ASX:SEQ) has recently launched two exciting new structured products designed to give retail investors unique exposure to some of the most revolutionary and disruptive global sectors currently evolving.

These new structured products are distributed by Sequoia Asset Management Pty Ltd (AFSL 341506), another division of SEQ.

The Sequoia Specialist Investments division recently launched its Sequoia Accelerated Return Units – Series 1, providing retail investors with exposure to US-based and NASDAQ listed company Tesla Motors Inc., enhanced by the ability to benefit from a 200% Participation Rate to the positive performance of Tesla shares* and exposure to any USD/AUD currency movements. The minimum investment required is $25,000.

Founded by its CEO and Chairman Elon Musk, Tesla is widely considered a global leader in the automobile and energy storage sectors, in the business of designing, manufacturing and selling electric vehicles and energy storage units.

Expanding upon this theme, the Sequoia Launch Units – Series 23 product provides exposure to an internationally diversified basket of shares in global companies playing a critical role in the energy and transport sectors, including Tesla, and:

• Panasonic Corporation (Japan – Electronics, Batteries)
• Samsung SDI (South Korea – Battery Technology)
• BYD Company Ltd (China – Electric Vehicles, Batteries)
• Albemarle Corporation (US – Lithium Mining)
• Tesla Motors Inc (US – Electric Vehicles)

This carefully chosen basket provides unique ‘end-to-end’ exposure to the lithium lifecycle, and provides further potential upside should the USD strengthen against the AUD (or downside if the reverse occurs) with any Coupons exposed to AUD/USD FX movements. The product is 100% leveraged via a non-recourse loan with a minimum loan/investment of $50,000.

The investment term for both of these products is three years, but with the option to cash out quarterly if desired. The two products are also suitable for SMSF investors.

The launch of these new structured products follows the success that Sequoia Specialist Investments has had with a number of innovative offerings for both retail and wholesale clients, offering access and exposure to a diverse range of trends and themes.

Commenting on these new investments products, Sequoia Executive Director, Marcel Collignon said, “We are pleased to be offering retail investors two unique ways to gain exposure to global equities and trends.

“The Accelerated Return product, which has Tesla shares as the reference asset, allows investors the chance to share in this exciting story and offers the potential for greatly increased upside with a 200% participation rate*

“The Launch Units – Series 23 is an ideal way to gain global exposure to the current lithium boom, and is enhanced and de-risked through sector and geographic diversity. The fact it is 100% leveraged is another potential benefit, and both of these products are suitable for SMSF investors.

“We have been greatly encouraged by the take up of our structured products by both retail and wholesale investors alike, and we will continue to bring innovative products to the market providing exposure to global trends and themes.”

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Sequoia Specialist Investments’ Launch Series 14 – Berkshire Hathaway Inc Class B Shares (BRK/B) has been introduced following the success that the division has had with number of similar products that have been extremely popular with both SMSFs and self-directed investors, and which have generated excellent returns to investors in the past.

A minimum investment of $50,000 is required in this series and due to the structure of the investment, the Issuer is willing to lend 100% of the Investment via a limited recourse loan. Interest of 6.35%p.a is payable annually in advance, fixed for the 3 year investment term. Upon maturity there is a minimum return of 20.85% (provided the Performance of BRK/B is greater than 10% (the “Hurdle”)) up to a cap of 40%. Investors are also provided with an annual option to ‘walk away’ without penalty should their circumstances change.

Along with its Berkshire Hathaway investment, Sequoia Specialist Investments has offered a number of other structured products offering exposure to a range of diverse investment themes, such as the ASX 200, Technology Shares, equities markets in China and India, US real estate and many others.

Sequoia’s most recently matured (3 year) investments have generated returns of between 79.55% and 106.27% on outlay to investors, who continue to be attracted due the unique benefits of these structures, the competitive costs and simple application process.

MDS Executive Director Marcel Collignon, who oversees the development and management of these structured products, and who has extensive experience in this field, commented: “Following the great results we have had with previous series, we are pleased to be offering investors another opportunity to gain exposure to the ongoing success story that is Berkshire Hathaway.”

“We are finding that there is strong demand from both SMSF and self-directed investors for products such as this that are easy to understand and potentially offer strong returns with exposure to local and global markets, all while attempting to reduce risks compared to other leveraged investment alternatives.”

“We have already had strong interest in this series from third party wholesalers and existing investors alike, and we anticipate a strong subscription to the Units by 29 July when applications close.”

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