Berkshire Hathaway Investment Overview Series 30

International Investment
Opportunity
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INVESTMENT OVERVIEW
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Disclaimer

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Units in Sequoia Launch Units – Series 30 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 Launch Units – Series 30 can only be made by completing an
Application Form attached to the Term Sheet Product Disclosure Statement (“TSPDS”), after reading the Term
Sheet PDS dated 18 July 2017 and the Master PDS dated 10 June 2015 and submitting it to Sequoia. A copy
of the PDS can be obtained by contacting Sequoia Asset Management on or contacting your financial adviser.
You should consider the Term Sheet & Master PDS’ before deciding whether to invest in Units in Sequoia
Launch Units – Series 30. Capitalised terms on the webpage have the meaning given to them in Section 10
“Definitions” of the Master PDS.
Sequoia Asset Management Pty Ltd (AFSL 341506, ACN 135907 550 “SAM)” is a subsidiary of Sequoia
Financial Group Ltd ( ACN 091 744 884). See website for full disclaimers. Unless otherwise specified, this
presentation contains general information only and has been prepared without taking into account your
objectives, financial situation or needs. Accordingly, you should, before acting on the advice, consider
its appropriateness, having regard to your objectives, financial situation and needs or contact your SAM
representative. The directors of SAM advise that they and persons associated with them may have an interest
in securities and that they may earn brokerage, fees or other benefits or advantages as a result of a transaction
arising from any recommendation mentioned in the document.W

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Investment Overview
1. Exposure to international markets
*Please note, past returns do not reflect future returns

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Investment Overview
2. World class investment manager

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Investment Overview
2. World class investment manager
3. An investment with capped downside

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Why International Exposure?

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Sector %
Financials 36.45
Materials 15.78
Real Estate 8.19
Health Care 7.51
Consumer Staples 6.97
Industrials 6.81
Consumer Discretionary 5.76
Energy 4.39
Telecommunication Services 4.19
Utilities 2.72
Information Technology 1.21
Diversification - Australian Market Sector weighting as of 31/03/2017

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*Please note: Past returns do not reflect future returns

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Who is This Investment For?
If you want international exposure

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If you want an investment with capped downside

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If you want world class investment management

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Investment Overview
• $22,950 Net Outlay
*The maximum loss is limited to your initial investment. There is no exposure to the amount geared

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Investment Overview
• $100,000 Exposure

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Investment Overview
• Three Year Investment Term

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Investment Overview
• $22,950 Maximum Risk

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Investment Overview
• $100,000 Uncapped Upside

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Investment Overview
• $100,000 Uncapped Upside
• Can Pay Annual
Performance Coupons

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Investment Management

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Berkshire Hathaway
One of the most successful investment
companies in the world.
*According to the Forbes Global list and formula, Berkshire Hathaway is the 4th largest public company in the world, and the largest conglomerate.

Book Value Gain
1965-1975 = 300.6%
Why Berkshire Hathaway?
Source: Berkshire 2016 Annual Report. Please note: Past returns do not reflect future returns.

Book Value Gain
1965-1975 = 300.6%
1975-1985 = 1,321.6%

Book Value Gain
1965-1975 = 300.6%
1975-1985 = 1,321.6%
1985-1995 = 809.4%

Book Value Gain
1965-1975 = 300.6%
1975-1985 = 1,321.6%
1985-1995 = 809.4%
1995-2005 = 453.8%

Even taking into account the GFC, If you had invested
$100,000 in Berkshire Hathaway in 2006...
Please note: Past returns do not reflect future returns.

...it would be worth over $284,000 today.
Please note: Past returns do not reflect future returns. Source: Berkshire Hathaway Inc (BRK-B). Share price 1st Jan 2006 = $56.64.
Share Price 31st March 2017 = $166.68. Note: BRK do not pay dividends. Figures exclude broker fees or any other fees.
*Investors should note that past performance is not a reliable indicator of future performance. Future volatility and returns may vary. Investors must read PDS before investing. Returns net of fees, in AUD

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Berkshire CEO - Warren Buffett
Arguably one of the greatest investors on the planet
Please note: Past returns do not reflect future returns.

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He Cares About Value Above All

Buffett believes that intrinsic value estimations offer
“the only logical approach to evaluating the relative
attractiveness of investments and businesses.”
Source: Warren Buffett’s annual letter to shareholders

This philosophy has always been the core to his
investing strategy.
Source: Warren Buffett’s annual letter to shareholders

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How is the Investment Designed?

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Investment Cashflows at Commencement
Investment Amount Prepaid Interest Currency Management Fee Adviser Fee Total Net Cash Outlay
$100,000
($100,000 Loan)
$17,850 $2,100 $3,000 $22,950

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*Series Performance is the total performance experienced over the investment term and may comprise of
one or more coupons, and is after Performance Fees are taken into account.
*Scenarios are not an indication of likely future performance and have been provided as hypothetical example only.
• Adviser Fees (if any) not included in calculations
Case Study
Scenario Total Net Cash
Outlay over 3
Years
Investment
Amount
Investment
Performance
over 3 years
(net of 10%
Perf Fees)*
Cumulative
Performance
Coupons over
3 years
Net Gain /
(Loss)
Return on
Total Net Cash
Outlay
1 $22,950 $100,000 -20% $0 -$22,950 -100%
2 $22,950 $100,000 0% $0 -$22,950 -100%
3 $22,950 $100,000 20% $20,000 -$2,950 -12.9%
4 $22,950 $100,000 40% $40,000 $17,050 74.3%
5 $22,950 $100,000 50% $50,000 $27,050 117.9%

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Past Series Performance
BRK/B Series Maturity Date Initial Outlay
(Interest + Fees)
Investment
Exposure
Total Coupon
and Final Value
Received*
Three Year Return
on Cash Outlay
IEA - Series 4 March 2013 $18,700 $100,000 $26,715 42.86%
IEA - Series 6 July 2013 $20,200 $100,000 $35,024 73.39%
IEA - Series 9 October 2013 $20,200 $100,000 $35,110 73.81%
IEA - Series 14 January 2014 $22,450 $100,000 $30,399 35.41%
IEA - Series 17 April 2014 $22,450 $100,000 $42,390 88.82%
IEA - Series 20 June 2014 $22,450 $100,000 $61,160 172.29%
IEA - Series 4 Roll On May 2016 $20,350 $100,000 $25,090 23.29%
IEA - Series 30 June 2016 $20,350 $100,000 $21,713 6.70%
*Investors should note that past performance is not a reliable indicator of future performance.
Future volatility and returns may vary. Investors must read PDS before investing. Returns net of fees, in AUD

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Exposure Example
Investment
$11,975
$22,950
$42,900
$62,850
$82,800
Exposure
$50,000
$100,000
$200,000
$300,000
$400,000
=
=
=
=
=

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Why we believe Berkshire Hathaway can
continue to outperform

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Warren Buffett

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Warren Buffett
His Approach to
Value

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Warren Buffett
His Approach to
Value
Berkshire’s Proven
Method

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Warren Buffett
His Approach to
Value
Berkshire’s Proven
Method
Their ability to handle
difficult markets
“Every decade or so, dark clouds will fill the economic
skies and they will briefly rain gold.” - Warren Buffett

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Why We Like This Investment
1. U.S. and Broad International Exposure

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2. Limited Downside Risk*
*The maximum loss is limited to your initial investment. There is no exposure to the amount geared.

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2. Limited Downside Risk*
3. One of the most successful investment
companies in the world**
**According to the Forbes Global list and formula, Berkshire Hathaway is the 4th largest public company in the world, and the largest conglomerate.

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**According to the Forbes Global list and formula, Berkshire Hathaway is the 4th largest public company in the world, and the largest conglomerate.

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Additional Features
• 100% borrowing at low interest rates (5.95%)
• Exposure the AUD/USD exchange rate
• SMSF Eligible
• No further obligations. All amounts paid upfront
• Quarterly liquidity
• Limited downside*
• 3 year term

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Key Risks
• Your return is affected by the performance of the Reference Asset. There is no guarantee that the
Reference Asset will perform well. If the Reference Asset performs negatively during the Investment Term
you could lose some or all of your invested capital.
• The Units for Series 30 have varying levels of exposure to the Reference Asset depending on volatility
due to the variable Participation Rate. It operates by varying the exposure that the Units will have to the
Reference Asset depending on the Realised Volatility of the Berkshire Hathaway Inc Class B Shares and
the Target Volatility. There is the risk that the Participation Rate could drop to significantly below 100%
during the Investment Term in which case Investors will not gain the full benefits of an increase of the value
of the Reference Asset.
• Investors in Series 30 should note that there is a lag in measuring the Realised Volatility of the Reference
Asset. This means that where there has been a period of high Realised Volatility, the Investor’s exposure
to the Reference Asset will be low, regardless of whether the Reference Asset is performing positively or
negatively.

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Key Risks
• Sequoia Launch Coupons (but not the Final Value) for Series 30 is subject to movements in the AUD/USD
exchange rate
• The Series 30 investment is subject to averaging. Averaging may impact the performance of the
investment during the Investment Term when compared to an investment that does not use averaging.
• There is no guarantee that the Units will generate returns in excess of any 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 any Fees.
• Investors are subject to counterparty credit risk with respect to the Issuer and the Hedge Counterparty;
• 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

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Do You Want to Get Involved?

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Download the
Product Disclosure Statement (PDS)

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and send the completed PDS to:
admin@ozfinancial.com.au

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Have a Question or Need Help?
Call us on (03) 8080 5795

Berkshire Hathaway Investment Overview Series 30

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