Standard Risk measure (SRM) and risk bands

Account-based pension options pre 1 July 2019

Investment optionSRMRisk Band
Aggressive3.95 (Med-High)
Growth3.45 (Med-High)
Balanced2.74 (Med)
Stable/Capital Guarded1.73 (Low-Med)
Australian Shares5.16 (High)
International Shares6.67 (Very High)
Property6.67 (Very High)
Bonds5.06 (High)
Cash0.01 (Very Low)
Term Deposit0.01 (Very Low)

 

Account based pension options post 1 July 2019

Investment optionSRMRisk Band
Aggressive5.06 (High)
Growth4.66 (High)
Balanced3.45 (Med-High)
Stable/Capital Guarded2.14 (Med)
Australian Shares5.66 (High)
International Shares6.47 (Very High)
Property6.97 (Very High)
Bonds5.46 (High)
Cash0.01 (Very Low)
Term Deposit0.01 (Very Low)

The SRM measures risk by showing the estimated number of annual negative returns for an investment option over any 20 year period. These negative returns can be experienced several years apart or several years in a row within the 20 year period.

The risk band is a relative measure of the risk of different investment options. The bands range between 1 and 7, with 1 being lowest risk and 7 the highest.