Alpha Managed Income Notes

Alpha Managed Income Notes Downloads ALPHA Managed Income Notes Prospectus download (PDF 1.1MB) Aegis Independent Research Report (PDF 430KB) Alpha Managed Income Notes Flyer (PDF 116KB) Alpha Managed Income Notes Brochure (PDF 70KB) Standard & Poor's Presale Report for ALPHA Managed Income Notes Series 1 (PDF 210KB) Research
	Alpha Financial Products Limited has issued A$55m of ALPHA Notes, under a Prospectus lodged with ASIC on 1 March 2005. Click to view the Prospectus together with the Supplementary Prospectuses. (PDF 1.1MB). The ALPHA Notes were admitted to official quotation on ASX on 13 April 2005 with ASX code "AFPHA." The price performance of ALPHA Notes since listing can be viewed at http://www.asx.com.au/asx/markets/displayInterestRateSecurities.do ALPHA Notes have been designed to have features that are expected to appeal to self-managed superannuation funds (SMSF) and sophisticated investors and their financial advisers. Key Features Set out below is a summary of the Offer and the terms of the ALPHA Notes Series 1. This information is a summary only. Investors should read the Prospectus and the Supplementary Prospectuses in full. Issuer – ALPHA Financial Products Limited. Investment objective – Capital stability at maturity and income performance. Type of security – ALPHA Notes are classified as unsecured notes for the purposes of section 283BH of the Corporations Act. ALPHA Notes are debt securities that will pay Income at a floating rate and are limited in their recourse to specific assets of ALPHA. ALPHA Notes Series 1 – ALPHA Notes Series 1: will pay Income calculated at the BBSW plus a fixed margin of 2.50% per annum (see "Income payment amounts" below); and are expected to have a rating as at the Issue Date from Standard & Poor's of "AAp N.R.i" for the repayment of Capital at maturity. Capital – ALPHA Notes are designed to provide a high likelihood of repayment of Capital at maturity of the ALPHA Notes. This is reflected in the ratings expected to be assigned to the ALPHA Notes by Standard & Poor's. Investors will be repaid all of the Capital invested in ALPHA Notes Series 1 unless more than 12 Credit Events occur in relation to Reference Entities in the Capital Portfolio, and the Capital repayable will be reduced to zero if 14 Credit Events occur. The expected Standard & Poor's credit rating of "AAp N.R.i" for ALPHA Notes Series 1 reflects the probability of the occurrence of more than 12 Credit Events occurring in relation to the Reference Entities in the Capital Portfolio. See section 3 of the Prospectus ("Capital"). Income payment dates – Income payable will be paid on 20 March and 20 September until maturity. The first Income payment will be made on 20 September 2005. The payment of Income on the ALPHA Notes is not rated. See section 4 of the Prospectus ("Income"). Income payment amounts – Income amounts payable will be calculated at the applicable interest rate (as described above) on the amount of the Income Portfolio, which may be reduced (possibly to zero) in certain circumstances as described in this Prospectus. The amount of Income payable on the ALPHA Notes may also be reduced (possibly to zero). In particular, investors should note that it is possible that the amount of Income payable on the ALPHA Notes may be reduced if one Credit Event occurs in relation to a Reference Entity in the Income Portfolio. See section 6.1 of the Prospectus ("Risks associated with the Portfolio"). Two separate Portfolios – There are two separate Portfolios, an Income Portfolio and a Capital Portfolio. The Capital Portfolio will consist of 130 Reference Entities, and the Income Portfolio will consist of 115 Reference Entities, that are selected by the Portfolio Manager in accordance with the Portfolio Selection Criteria described in this Prospectus. The repayment of Capital invested in the ALPHA Notes on maturity is linked to the creditworthiness of the Reference Entities in the Capital Portfolio. The payments of Income on the ALPHA Notes are linked to the creditworthiness of the Reference Entities in the Income Portfolio. See sections 5.1 of the Prospectus ("The Capital Portfolio") and 5.2 of the Prospectus ("The Income Portfolio"). Portfolio management – The Portfolio Manager has been appointed to defensively manage the Income Portfolio and the Capital Portfolio specifically for ALPHA Notes Series 1. The Portfolio Manager has been appointed with the objective of reducing the risk of a Credit Event occurring with respect to the Reference Entities in the Portfolios, in particular the Income Portfolio. See section 5 of the Prospectus ("The Portfolios, Portfolio Management and the Portfolio Manager"). Term – ALPHA Notes have a term of approximately 7 years. ALPHA Notes mature on 20 March 2012. The term of the ALPHA Notes can be extended in limited circumstances by a period no longer than 85 Business Days. If this occurs, income for the remaining period is calculated at BBSW minus 0.10% per annum. See section 3.3 of the Prospectus ("When is Capital repaid"). Issue Price – The Issue Price of each ALPHA Note is $100. Minimum investment – $10,000 for each investor (equivalent to 100 ALPHA Notes) and after that in multiples of $1,000 (equivalent to 10 ALPHA Notes). Minimum issue size – $50 million for ALPHA Notes Series 1. Oversubscriptions – Oversubscriptions totalling $150 million for ALPHA Notes Series 1 can be accepted. Proceeds – Proceeds raised from the issue of ALPHA Notes under the Offer will be put on deposit with ABN AMRO Bank, Australia Branch. See section 3.4 of the Prospectus ("What is the source and use of Capital?"). Listing and quotation on ASX – ALPHA will apply for admission to the official list of ASX as a 'debt listing' and to have ALPHA Notes Series 1 quoted on ASX. ALPHA Notes are expected to commence trading on ASX on 13 April 2005. No upfront fees – There are no entry, exit or management fees payable by any investor. No brokerage is payable by an Applicant for ALPHA Notes under this Offer. All returns on ALPHA Notes described in this Prospectus are net of fees. The fees payable to the Portfolio Manager and certain other parties are set out in section 13 of the Prospectus ("Regulatory Information"). Early Application Rebate – If your Application is lodged by you or your financial adviser within 2 weeks of the opening of the Offer then on the first Income Payment Date you may, subject to certain conditions, receive an Early Application Rebate equal to 1.00% of the Issue Price for each ALPHA Note Series 1 that is issued to you under the Offer. See "How to apply for ALPHA Notes" in the Prospectus for further details regarding the Early Application Rebate. Risks – A detailed description of the risks associated with investing in ALPHA Notes is set out in section 6 of the Prospectus ("Risks"). For the Standard & Poor's Presale Report for ALPHA Managed Income Notes Series 1, please click here (PDF 210KB). For the Aegis Independent Research Report, please click here (PDF 430KB). Disclaimer This document is issued by Alpha Financial Products Limited (ABN 29 112 393 870). No action should be taken on the basis of or in reliance on the information, opinions or conclusions contained in this document. In preparing the information in this document, Alpha Financial Products Limited did not take into account the investment objectives, financial situation or particular needs of any particular investor. Offers of ALPHA Notes Series 1 and ALPHA Notes Series 2 are being made in the Prospectus issued by Alpha Financial Products Limited dated 1 March 2005. Anyone wishing to acquire ALPHA Notes Series 1 or ALPHA Notes Series 2 will need to complete the application form that is in, or accompanies, the Prospectus. Investors should read the Prospectus in full and carefully consider the detailed description of the arrangements and risks in the Prospectus before deciding whether to apply for ALPHA Notes Series 1 and/or ALPHA Notes Series 2. As the terms of the ALPHA Notes Series 1 and ALPHA Notes Series 2 are more complex than many financial products, it is recommended that investors consult their financial adviser, stockbroker, accountant or other independent professional adviser before making a decision to apply. ABN AMRO Bank N.V. (ACN 84 079 612) and its affiliates (“ABN AMRO Group”) accept no liability or responsibility whatsoever for any loss arising from any use of this document or its contents or otherwise arising in connection with this document. Investments in ALPHA Managed Income Notes are not deposits or liabilities of ABN AMRO Bank N.V. or any other entity in the ABN AMRO Group. These investments are subject to investment risk, including possible delays in repayment and loss of income or capital invested. The ABN AMRO Group does not stand behind the capital value or performance of any securities issued. This document is not, and is not intended to be, an offer or invitation for subscription or sale, or a recommendation, with respect to any proposed offering of ALPHA Managed Income Notes or any other securities, nor is it to form the basis of any contract or commitment. The rating of the capital component of the ALPHA Managed Income Notes and each entity in the Portfolios by Standard & Poor’s will be based on current information furnished to Standard & Poor’s (Australia) Pty Limited (“Standard & Poor’s”) by or on behalf of Alpha Financial Products Limited or the entities in the Portfolios or obtained by Standard & Poor’s from other sources it considers reliable. Standard & Poor’s does not perform an audit in connection with any rating and may, on occasion, rely on unaudited financial information. Any rating may be changed, suspended or withdrawn at any time as a result of changes in, or unavailability of, such information, or based on other circumstances. Any rating assigned to the capital of the ALPHA Managed Income Notes will be a statement of opinion, not a statement of fact or a recommendation to buy, hold or sell ALPHA Managed Income Notes in as much as Standard & Poor’s does not comment as to market price or suitability of ALPHA Managed Income Notes for a particular investor. It is also noted that each rating agency has its own methodology and modeling assumptions for rating transactions. Ratings are sensitive to the methodology and modeling assumptions used. Different models and different assumptions may, and in all likelihood would, produce different results. One of the primary modeling assumptions used is the correlations between reference entities. These correlations are hard to observe. Each rating agency will make its own assumptions on the correlations for rating purposes. Furthermore, the risk profile and risk-return of the products may differ from that of an equivalently rated corporate bond.	Downloads ALPHA Managed Income Notes Prospectus download (PDF 1.1MB) Aegis Independent Research Report (PDF 430KB) Alpha Managed Income Notes Flyer (PDF 116KB) Alpha Managed Income Notes Brochure (PDF 70KB)

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