Funds Focus

SEEK Limited has just announced the launch of a new income offer: SEEK Subordinated Notes.The first round of access is through a broker firm allocation, prior to shareholder and general offers and listing at the end of this month.

The Notes will pay a semi-annual distribution fixed for the first 5 years at a minimum of 8.60% pa. Indicative range of 8.40%-8.90% pa (5.0%-5.50% over the 5 year bank bill swap rate (BBSW), 3.40% as of 5th June.

The Notes are a perpetual security and if not

5th March 2012 – Please note the initial review below was for a rate at 3.40%-3.60% over the 90 day BBSW. This has since been increased to and indicative rate of 3.80%-4.00% over the 90 day BBSW and we now feel this offer is relatively attractive to investors.

Due to timescales, we have maintained the initial analysis below and provided an update at the end of this review.

Analysis from 1st March 2012

AGL Energy has just announced the launch of a new income offer: AGL Energy

This last week has seen the launch of four new income offers: ANZ Subordinated Notes, Colonial Group Subordinated Notes, Tabcorp Subordinated Notes and Westpac Convertible Preference Shares (CPS). We have produced this overview in an attempt to provide some clarity for investors in making a comparison of the offers available.

 The current focus on income
The recent flood of fixed income issues is a result of the ongoing market volatility and the increased cost of overseas funding. Falling