By Marisa Wong
Morgantown, W.Va., June 2 – Alaia Market Linked Trust launched a unit investment trust, the Alaia Market Linked Trust, Series 1-2, linked to the SPDR S&P 500 ETF trust, according to a 497 filing with the Securities and Exchange Commission.
The Alaia Market Linked Trust, Series 1-2 invests in a portfolio of U.S. Treasury obligations and/or cash and cash equivalents and a series of FLexible Exchange options (FLEX options) on the SPDR S&P 500 ETF trust at various strike price levels.
The trust is designed for investors who intend to purchase units at inception and hold them until the trust’s mandatory dissolution date, 1.5 years from the inception date.
The trust provides a total return per unit that increases by 1.5 times any gain in the SPDR S&P 500 ETF trust, up to a maximum total return of 13.67%, equivalent to an annualized total return of 8.84% over the 1.5-year life of the trust.
Investors should be willing to forgo interest and dividend payments and, if the price of the SPDR S&P 500 ETF trust declines by more than 10%, be willing to lose up to 85% of their investment.
Beech Hill Securities, Inc. is the sponsor of the trust and the underwriter.
| Issuer: | Alaia Market Linked Trust
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| Issue: | Alaia Market Linked Trust, Series 1-2
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| Underlying asset: | SPDR S&P 500 ETF trust
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| Options expiration date: | Dec. 3, 2018
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| Dissolution date: | Dec. 6, 2018
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| Coupon: | 0%
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| Price: | $1,027.85 per unit at inception, $1,007.30 per unit for fee-accounts
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| Inception value: | $1,000.10 per unit, the net asset value per unit at inception
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| Buffer amount: | 10% per unit, $150.02 per inception value
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| Maximum loss: | 85% per unit, $850.09 per inception value
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| Upside multiplier: | 1.5
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| Maximum amount: | $1,136.76 per unit, reached with a 9.11% gain in the underlying asset
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| Initial reference value: | $243.36
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| Underwriter: | Beech Hill Securities, Inc.
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| Inception date: | June 2
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| Cusip: | 01073C129 (01073C137 for fee-based accounts)
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