The Minimum Amount payable is $9,950 for $100,000 of investment exposure.
Sequoia Commodities Series 18 is a structured investment whereby:
Terms
Key risks include:
Sequoia Commodities Series 18 tracks BNP Paribas Strategy C52 10% Index (Bloomberg Ticker: BNPIC52V Index), a diversified long-only commodities index sponsored by BNP Paribas across 3 sectors and cash:
Including exposure across 13 individual commodities and cash:
The Index provides the above exposures via futures contracts linked to the relevant underlying commodities, rather than any form of direct exposure to the relevant underlying commodity. Please see below for more information on the commodity futures.
The individual commodity weights within the Index are based on:
We also believe the recent pullback in commodity prices since the highs reached during Q2 2022 appears to be presenting an excellent opportunity for investors who are bullish on this asset class for the next 18 months.
Past performance is no indication of future performance
We note Goldman Sachs has recently come out with their latest research paper (attached) forecasting a strong rally in commodities (especially Energy and Industrial metals) in the next 12 months (see below).
The broader commodities asset class (including energy, industrial metals and precious metals) entered a bull market in 2021 after rallying significantly from the lows reached during March 2020. Whilst the commodities market has pulled back since reaching initial highs in Q2 2022, it remains technically within a long-term bull market. The correction in commodity prices over the last year also appears to be stabilising and presenting an interesting entry point opportunity for investors who would like to add a direct commodity allocation to their portfolio.
There are also several fundament reasons that could contribute to a continued rally including:
It is important for investors to understand that in order to recoup the Total Investment Cost and generate a profit on this investment then the Index Performance adjusted for changes in the AUD/USD exchange rate during the Investment Term (“Series Performance”) needs to be greater than the Break-Even Point of 9.95% (excluding any Upfront Adviser Fee and any external costs, such as tax).
As such, the Series Performance will need to be strong over the next 1.5 years in order for you to at least break even and generate a profit.
Hypothetical Examples
In the example below we look at 3 potential hypothetical scenarios. Please note that these are theoretical scenarios only and provided for illustrative purposes only and are not intended to be a forecast, do not indicate past performance, and are not a guarantee that similar returns will be achieved in the future. The actual final result for this investment at Maturity is likely to be different to any of the hypothetical scenarios below and will depend on the actual Series Performance realised at Maturity. Returns are not guaranteed.
Click here to view the latest performance figures
Sequoia Specialist Investments Pty Ltd (“SSI”) is a wholly owned subsidiary of Sequoia Financial Group (ASX code:SEQ) and is one of Australia’s leading, non-bank issuers of structured investments for Australian retail and wholesale investors. It has issued over 80 investments since 2010 covering a broad range of asset classes with a cumulative total notional of over $400m being issued during this time.
Our aim at SSI is to build innovative investment solutions not otherwise available to Australian investors via traditional investment platforms by working closely with top tier global investment banks to develop unique investment thematics that are able to capitalise upon emerging global trends.
These investments are offered in the form of either leveraged structured investments or fully funded structured investments depending on the objective of the investment (i.e. capital growth vs income).
SSI can also offer a variety of solutions for professional advisers or AFSLs where we can provide white label solutions for groups that want to retain their own branding.
Blair Kirkhope - Investment Manager (Head of Specialist Investments)
Jordan Momircevski - Specialist Investment Associate
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