Represents the estimated number of years in a 20-year period where negative net investment returns will be incurred.
The "Medium to High" investment risk label means that it is estimated that there will be in between 3 and 4 annual periods of negative net investment returns over a 20-year period. It is based on industry guidance (Standard Risk Measure {SRM}, Guidance Paper For Trustees and SRM, Implementation Guidance For Trustees) issued by the Association of Superannuation Funds of Australia and the Financial Services Council.
The Standard Risk Measure is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20-year period.
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. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return.
You should still ensure you are comfortable with the risks and potential losses associated with this investment option.
