Risk Profile – Preservation Investor
The investment objective of a Preservation investor is to maintain the current value of your investments above all other considerations. Preservation investors seek security above all else or need most of their money within a short timeframe, and they are prepared to accept low overall returns in exchange for this security.
A Preservation portfolio looks to invest the majority in liquid defensive assets (eg cash and fixed income). This is generally a 100% cash portfolio.
Such a portfolio is suitable for investors with a short term investment time frame, typically less than 2 years.
| Investment objectives – Preservation | |
| Minimum investment period | No Minimum |
| Returns | |
| Forecast average annual return over 10 years | 3.5% |
| Risk | |
| Probability of a negative return over a single year | 0.0% |
| Expected negative years out of 20 | 0 |
| Forecast rate of returns | |
| 1 year | 1.7% to 2.8% |
| 5 years (per annum) | 2.1% to 4.4% |
| 10 years (per annum) | 2.5% to 5.1% |
| 20 years (per annum) | 3.0% to 5.2% |
| Asset allocation – Preservation | Target % | Minimum % | Maximum % |
| Defensive Fixed Income | 0 | 0 | 10 |
| Defensive Alternatives | 0 | 0 | 0 |
| Cash | 100 | 80 | 100 |
| Total defensive | 100 | 90 | 100 |
| Australian Equities | 0 | 0 | 5 |
| Global Equities | 0 | 0 | 5 |
| Property & Infrastructure | 0 | 0 | 5 |
| Growth Alternatives | 0 | 0 | 0 |
| Total growth | 0 | 0 | 10 |