1. Futuro Forum | Bowral 2012 Realm Investment – Fixed Interest

2. Realm Investment House Fixed interest – The good, the bad and the ugly. An investment approach

3. What is Fixed Income What are you missing out on? It is complex Very important part of your Asset Allocation

4. What about everything else Government Debt State Infrastructure Debt UnsecuredSecured (RMBS) UnsecuredAsset Back (Secured) Secured (Covered) International Debt MezzanineHybrid Deposits ADI DepositsCommercial PaperABCP Paper CommonwealthLocal Bank Debt Corporate Secured GovernmentCorporateABS Fixed CouponFloating CouponIndexed Coupon

5. Managing Risks Yield 8% Term Risk Relativities Solvency & Liquidity

6. It is Complex! – Term Risk Fixed Income is about managing cash flows and future Income Capital preservation with a focus on regular income The best thing for a fixed income investor is you get your money back

7. Relativities What's Happening

8. Relativities

9. Managing Liquidity & Solvency What's Happening What’s in the Market What are we doing about it? Investment Committee Framework Asset Selection Portfolio Construction

10. Solvency Screening – the Six C’s Character Capacity Capital Collateral Conditions Capital Structure

11. Liquidity Analysis Everything above the line is relatively cheap Asset types available from a single Issuer ranked by credit Solvency Risk < ------- Less RiskMore Risk ------- >

12. Portfolio Optimisation

13. Citi Group Economic Surprise index

14. 3 Year Bond vs 10 year Bond Curve

15. Bank Asset vs Local GDP What's Happening What’s in the Market

16. European Debt What's Happening What’s in the Market

17. Australian 3Year Government Bond

18. US Bond Curves

19. Realm Investment House www.realminvestments.com.au Andrew Papageorgiou - Investment Manager Ph: +613 9008 7292 Mob: +61 428 137 366 andrew.p@realminvestments.com.au Robert Camilleri - Investment Manager Ph: +613 9008 7291 Mob: +61 413 096 374 rob.c@realminvestments.com.au Richard Kerr - Investment Manager Ph: +612 8014 4234 Mob: +61 414 557 673 richard.k@realminvestments.com.au

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