Structural factors will ensure that the cash rate cannot rise over the medium term. This will result in negligible cash returns over the foreseeable future, with only mild defensive properties. What is the best alternative in the defensive bucket? Going back to the drawing board, a core fixed income exposure consisting of Australian government bonds will outperform cash over the long term. - Chris Rands, Nikko Asset Management. Earn 0.50 CE/CPD hrs on Portfolio Construction Forum