Dispersion Series 4
Investing in the Dispersion between Listed Global Shares
The Reference Basket consists of 20 listed Global Shares with potential exposure to possible sources of future dispersion including:
- Coronavirus impact on different sectors of the market including technology versus bricks and mortar traditional industrial
- The US-China trade war
- Increasing impact of the climate change agenda on the energy sector.
In view of capturing future sources of dispersion, the Reference Basket has been created with the following characteristics:
Wide sector diversification including:
- Auto Parts & Equipment
- Oil & Gas
Wide geographical diversification by country of listing including:
- Hong Kong
The Units provide investors with a potential uncapped Performance Coupon at Maturity based on the full leveraged investment amount depending on the performance of Dispersion of the Reference Basket during the Investment Term provided the realised level of Dispersion at Maturity is greater than the Hurdle. The Performance Coupon is also adjusted for changes in the AUD/USD exchange rate during the Investment Term.
Investment cash flow scenarios during the Investment Term for Sequoia Dispersion Series 4
What is Dispersion?
The dispersion of a basket of securities is measured by how much the return of each individual security in the basket differs, in absolute terms from the average return of the overall basket over a given period of time. Each of these return differentials are averaged and the greater the average, the higher the measure of dispersion.
Offer Close Date: Tuesday, 23 June 2020
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