Sequoia Alpha Series 5 (“Series 5“) is a structured investment whereby investors obtain 100% leverage and exposure to any positive performance of the NXS DNCA Alpha Bonds ER VT 5% Index over a 3 year period.

A Summary of the key features:

The Underlying Fund

About DNCA Investments

DNCA Investments is the manager of the Underlying Fund (“Manager”). The Manager was founded in 2000 and specialises in a convictionbased investment approach across different assets classes, management styles, and geographical regions.

The Manager’s experienced team develops investment products for private and institutional clients, with an investment offering organised around five areas of expertise (fixed income, absolute return, multi-asset, equities, and socially responsible investment).

As at 28 June 2024, the Manager operates 48 funds totalling €35.1 billion in AUM.

Details in relation to the Underlying Fund

The Underlying Fund seeks to provide, throughout the recommended investment period of three years or more, a higher performance, net of any fees, than the €STR index plus 2%. This performance objective is sought by associating it to a lower annual volatility than 5% in normal market conditions.

Investments are made through a combination of strategies, including:

• a short/long directional strategy aimed at optimising portfolio performance based on interest rate and inflation expectations;
• a yield curve strategy to take advantage of changes in the spreads between long-term and short-term rates
• an arbitrage strategy to seek relative value within various bond asset classes; and
• a credit strategy based on the use of corporate bonds.

The Underlying Fund will at all times invest up to 25% of its total assets in bonds denominated in any currency of non-OECD issuers. The Underlying Fund will only invest in securities with a rating of at least B- by Standard & Poor’s or considered equivalent, at the time of purchase.

Fixed income securities that may be downgraded during their lifetime below B- may not exceed 10% of the total assets of the portfolio.

The Underlying Fund invests primarily in fixed rate, floating rate and inflation-linked debt securities and negotiable debt, within the following limits:

• convertible or exchangeable bonds: up to 100% of its total assets and conditional convertible bonds (Coco bonds): up to 20% of its total assets;
• equities (through exposure to convertible bonds, synthetic convertible bonds or options on the equity futures market): the Fund may have up to 10% exposure to the stock market.

More information on Sequoia Alpha Series 5 can be obtained by downloading the PDS.