“All people are born alike - except Republicans and Democrats.” - Groucho Marx Cartoon of the Week Source: www.hedgeye.com Funds Snapshot Movers & Shakers (week ending 16 October): Stocks (ASX 200 ↑ 1.03%, S&P 500 ↓ 1.95%, NASDAQ ↓ 4.48%) Bond Yields (ACGB3Y 4.84%, ↓ 5 bps / ACGB10Y 5.23%, ↓ 10 bps) Bond Curves (A$ 3s10s +39 bps, ↓ 5 bps) Credit Spreads (Major Bank 5Y Senior +70 bps, ↑ 1 bp / Tier 2 +134 bps, ↑ 1 bp) Policy (RBA Cash 4.60%, ↔ / US Fed Funds 3.75–4.00%, ↔) Oil

“The four most dangerous words in investing are: ‘this time it’s different’.” - Sir John Templeton Cartoon of the Week Source: www.hedgeye.com Funds Snapshot Movers & Shakers (week ending 2 October): Stocks (ASX 200 ↑ 0.40%, S&P 500 ↑ 1.15%, NASDAQ ↑ 0.64%) Bond Yields (ACGB3Y 4.90%, ↑ 1 bp / ACGB10Y 5.34%, ↔) Bond Curves (A$ 3s10s +44 bps, ↓ 1 bp) Credit Spreads (Major Bank 5Y Senior +69 bps, ↔ / Tier 2 +133 bps, ↑ 3 bps) Policy (RBA Cash 4.60%, ↔ / US Fed Funds 3.75–4.00%,

“It takes only one drink to get me drunk. The trouble is, I can't remember if it's the thirteenth or the fourteenth.” - George Burns Cartoon of the Week Source: www.heraldsun.com.au Funds Snapshot Movers & Shakers (week ending 2 October): Stocks (ASX 200 ↑ 0.20%, S&P 500 ↓ 0.27%, NASDAQ ↑ 0.45%) Bond Yields (ACGB3Y 4.89%, ↓ 12 bps / ACGB10Y 5.34%, ↓ 3 bps) Bond Curves (A$ 3s10s +45 bps, ↑ 9 bps) Credit Spreads (Major Bank 5Y Senior +69 bps, ↓ 1 bp / Tier 2 +130 bps, ↔) Policy

In this video, Scott Rundell, Chief Investment Officer at Mutual Limited, looks at what a softer Australian housing market means for residential mortgage-backed securities, or RMBS. Using recent bank reporting season data and observed market evidence, Scott explains why falling property values do not automatically translate into mortgage credit losses, and why borrower repayment capacity, arrears and unemployment remain the key indicators to watch. Watch the full video below

“Political language is designed to make lies sound truthful and murder respectable.” - George Orwell (1946) Cartoon of the Week Source: www.heraldsun.com.au Funds Snapshot Movers & Shakers (week ending 25 September): Stocks (ASX 200 ↓ 0.76%, S&P 500 ↑ 1.21%, NASDAQ ↑ 2.06%) Bond Yields (ACGB3Y 5.01%, ↑ 8 bps / ACGB10Y 5.37%, ↑ 10 bps) Bond Curves (A$ 3s10s +36 bps, ↑ 3 bps) Credit Spreads (Major Bank 5Y Senior +68 bps, ↓ 2 bps / Tier 2 +129 bps, ↓ 1 bp) Policy (RBA Cash 4.35%

“The most terrifying words in the English language are: I'm from the government and I'm here to help.” - Ronald Reagan Cartoon of the Week Source: www.hedgeye.com Funds Snapshot Movers & Shakers (week ending 18 September): Stocks (ASX 200 ↓ 0.11%, S&P 500 ↓ 0.08%, NASDAQ ↑ 0.72%) Bond Yields (ACGB3Y 4.93%, ↓ 7 bps / ACGB10Y 5.27%, ↓ 10 bps) Bond Curves (A$ 3s10s +33 bps, ↓ 4 bps) Credit Spreads (Major Bank 5Y Senior +70 bps, ↑ 2 bps / Tier 2 +130 bps, ↑ 3 bps) Policy (US Fed

Australia's June quarter GDP grew +0.4% YoY, lifting annual growth to +2.1% YoY against a +1.8% YoY consensus. US payrolls added 162,000 jobs against 55,000 expected, with prior months revised up by 55,000. The growth scare that shadowed August has faded, and with it much of the case for near-term rate cuts.

Australia's June quarter GDP grew +0.4% YoY, lifting annual growth to +2.1% YoY against a +1.8% YoY consensus. US payrolls added 162,000 jobs against 55,000 expected, with prior months revised up by 55,000. The growth scare that shadowed August has faded, and with it much of the case for near-term rate cuts.

Last week's growth scare unwound almost entirely. The US S&P Global composite PMI jumped to 56.0 against a 54.0 forecast, with services at 56.8, contradicting the weak retail sales that had unsettled markets seven days earlier. Europe's PMIs also beat.

Last week's growth scare unwound almost entirely. The US S&P Global composite PMI jumped to 56.0 against a 54.0 forecast, with services at 56.8, contradicting the weak retail sales that had unsettled markets seven days earlier. Europe's PMIs also beat.

Residential mortgage-backed securities (RMBS) are one of the fastest-growing areas of Australia’s fixed income market, yet the asset class remains relatively unfamiliar to many investors.

“Patriotism is supporting your country all the time, and your government when it deserves it" - Mark Twain Cartoon of the Week Source: www.hedgeye.com Funds Snapshot Movers & Shakers (week ending 14th August): Stocks (ASX 200 ↓1.60%, S&P 500 ↑0.36%, NASDAQ ↑0.14%) Bond Yields (ACGB3Y 4.53%, ↑ 4 bps / ACGB10Y 5.01%, ↑ 8 bps) Bond Curves (A$ 3s10s +48 bps, ↑ 4 bps) Credit Spreads (Major Bank 5Y Senior +63 bps, ↓1 bp / Tier 2 +127 bps, ↑ 4 bps) Oil (Brent US$88.52/bbl, ↑5.95%)

“Have you ever noticed that anybody driving slower than you is an idiot, and anyone going faster than you is a maniac?" - George Carlin Cartoon of the Week Source: www.hedgeye.com Funds Snapshot Movers & Shakers (week ending 7th August): Stocks (ASX 200 ↑3.20%, S&P 500 ↑3.58%, NASDAQ ↑5.19%) Bond Yields (ACGB3Y 4.49%, ↑ 5 bps / ACGB10Y 4.93%, ↑ 8 bps) Bond Curves (A$ 3s10s +47 bps, ↑ 3 bps) Credit Spreads (Major Bank 5Y Senior +63 bps, ↓1 bp / Tier 2 +120 bps, ↓ 3 bps) Oil

“If Stupidity got us into this mess, then why can't it get us out?" - Charles Kettering (American inventor) Cartoon of the Week Source: www.hedgeye.com Movers & Shakers (week ending 31st July): Stocks (ASX 200 ↑2.33%, S&P 500 ↑1.05%, NASDAQ ↓1.78%) Bond Yields (ACGB3Y 4.49%, ↓ 22 bps / ACGB10Y 4.93%, ↓ 16 bps) Bond Curves (A$ 3s10s +44 bps, ↑ 6 bps) Credit Spreads (Major Bank 5Y Senior +64 bps, ↓2 bps / Tier 2 +123 bps, ↑2 bps) Oil (Brent US$90.12/bbl, ↓6.88%) Gold (US$4,04