Super funds have seen a strong February result and remain on track to record the strongest financial year performance since 2007, according to new data.
Research from Chant West found that superfunds recorded a further 2.0 per cent gain, putting the increase for the financial year to date at 13.2 per cent, with four months to run until the end of June.
“The upbeat tone in the Australian and international share markets continued in February, despite the fact that global economic conditions are only improving very slowly,” Chant West director Warren Chant said.
“The strong share market gains in February were largely on the back of improved sentiment, with investors seemingly prepared to look beyond the current patchy growth to a more prosperous future,” he said.
“Of course, super funds aren’t entirely reliant on shares for their performance, but with the continued surge in these markets the median growth fund is now 8 per cent above its pre-GFC level.”
Chant West said Australian shares surged 5.3 per cent in February while international shares gained 1.3 per cent in hedged terms and 1.9 per cent on an unhedged basis.
Australian real estate investment trusts (REITs) also saw an increase of 3.5 per cent while global REITs gained 1.9 per cent over the month.
SuperRatings research found that the performance to date for the 2012/2013 financial year sits at 12.6 per cent at the end of February for the median fund, well on track to record the strongest result since 2007 when the median balanced option returned 15.7 per cent.
“Four years on from the lowest point of the GFC, it is great to see super funds have rebounded so strongly,” SuperRatings founder Jeff Bresnahan said.
“Investors shouldn’t expect a return to those bull market days of 2004 to 2007, but the 2012/2013 financial year remains on track to provide double digit returns.”
Despite this, SuperRatings said recent events in Europe have impacted the domestic financial market, which might see March recording the first monthly loss in the current financial year.
“The recent events in Europe, combined with the uncertainty that remains in the US, in Japan, in China, and in other areas of the world should refocus member’s attention to risk,” Mr Bresnahan said.
