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|
|Forecast average annual return over 10 years||3.5%|
|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|
|Property & Infrastructure||0||0||5|