The model portfolio return over the 2015-16 financial year was +4.24%, strongly outperforming the benchmark return of +1.98%.   In terms of individual exposures, the portfolio benefited from positive contributors to performance from the Suncorp Convertible Preference Shares II (ASX Code: SUNPC), ANZ Convertible Preference Shares 3 (ASX Code: ANZPC) and the AMP Subordinated Notes 2 (ASX Code: AMPHA), contributing +0.62%, +0.59% and +0.53% respectively. The main drag on performance over the period were the National Income Securities (ASX Code: NABHA) with a -0.19% contribution.   Click here for the full report.   Portfolio Objective The portfolio aims to outperform the RBA Cash Rate by 3.0% over the medium term (before fees). It also aims to provide higher income returns than traditional cash investments. The objective of the portfolio is to provide income with an investment strategy focused on a diversified, high conviction set of investments with either stable or improving credit outlooks. Although this is not a cash portfolio the focus is on assets which are readily transparent in is on assets which are readily transparent in terms of price and liquidity. This portfolio is typically used as a defensive investment and therefore capital preservation is equally important as steady, dependable income streams.