A degree of risk applies to all types of investments.  It is important that you understand these risks, how they compare, and what your personal risk situation is.

The value of your investments may rise or fall at any time.  With any superannuation fund, if you leave within a few years of joining, you may even get back less than the amount of contributions you paid because of low or negative investment returns, fees, charges and, of course, the impact of taxes.

Risk is often defined as volatility, expressed in the variability of returns from year to year.  This can be caused by many factors, but diversifying your investments across different asset classes can help you smooth your returns.

Market risk

This is the risk associated with being exposed to a particular investment market, such as international investment markets, or the Australian share, property or fixed interest markets.

Investment specific risk

This is the risk that an investment you make in a particular investment product, could adversely affect the performance of your investment strategy.

Country risk

This is the risk of being exposed to the economic and political climate in a particular country, which may adversely affect investments held there.

Currency risk

This is the risk that currency movements can adversely affect the value of internationalinvestments. For example, a fall in the value of the Australian dollar can increase the value (in Australian dollar terms) of international investments held by the Fund. On the other hand, a rise in the Australian dollar can reduce the value of that investment.

Changes to superannuation legislation

Changes may be made to superannuation legislation, which may affect your ability to access your investment. Recent changes may mean that your superannuation benefit may now be split by agreement or by court order with your spouse if you and your spouse permanently separate.

Changes to taxation

Changes can also occur to the taxation of superannuation, which may affect the value of your investment.

Other risks

The list is by no means exhaustive. Other possible influences include natural disasters, new technology, war, acts of terror. Clearly some of these are beyond the control of the Trustee, the Fund or the fund managers employed. While the Trustee intends to apply sound investment principles to the operation of the Fund and to select investment products in a manner which recognises and attempts to control the risks, investors should carefully consider the risk factors which may affect the performance of the investment options.