Risk measures

Investment risk is determined using the Standard Risk Measure (SRM), which is a guide as to the likely number of negative annual returns expected over any 20 year period. Its purpose is to provide you with a label to assist in comparing investment options.

The following table demonstrates the estimated number of negative annual returns over a 20-year period applied to determine the risk band and label:

Risk BandRisk LabelEstimated number of negative annual returns over a 20-year period
1 Very low Less than 0.5
2 Low 0.5 to less than 1
3 Low to medium 1 to less than 2
4 Medium 2 to less than 3
5 Medium to high 3 to less than 4
6 High 4 to less than 5
7 Very high 6 or greater 

View risk measures for the Default Fund and Cash Investment Option.

Read about the Standard Risk Measure (SRM) methodology