Standard risk measures

How we measure risk

AustSafe Super uses a Standard Risk Measure to describe the risk that applies to each of our investment options. The Standard Risk Measure is based on industry guidance to allow you to compare investment options that are expected to have a similar risk of negative annual returns over any 20 year period.

Each investment option is given a risk label as outlined in the table below. For example, the Standard Risk Measure for the MySuper (Balanced) Investment Option is ‘Medium to High’ as the estimated likelihood of a negative annual return is currently 3.9 years in every 20 years.

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 6
7 Very high 6 or greater

The Standard Risk Measure is not a complete assessment of all forms of investment risk. For instance, it does not detail what the size of a negative return could be, or the potential for a positive return to be less than you may require to meet your objectives. Also, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. You need to ensure you are comfortable with the risks and potential losses associated with your chosen investment option/s.

The Standard Risk Measure used for each of our investment options have been calculated by JANA Investment Advisers Pty Ltd and reviewed and adopted by AustSafe Super.