The overwhelming majority of superannuation fund members fall into their fund’s default option. Consequently, at the point of retirement many are faced, for the first time, with the need to make a choice for their investment option. Clearly investment risk is a major if not the major consideration in making their choice. At a Sydney conference last year, a highly-credentialed panel of investment risk measurement experts from the UK, the USA and Australia were asked the question “is volatility an appropriate measure of risk for a superannuation fund?” Each of the three panel members responded “no”. This is of concern...