Super funds register nine months of growth

Superannuation funds have recorded nine months of growth in a row, and the current financial year is set to be the strongest on record.

This is according to new figures released by SuperRatings and Chant West, which show the median balanced option was up another 2 per cent over the month, with the gain for the financial year to date currently sitting around the 12-13 per cent mark.

This result was the ninth month in a row that super funds have recorded a positive return.

"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," said Chant West director Warren Chant.

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"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.

"Even the more aggressive High Growth category (81 to 100 per cent allocation to growth assets) which was savaged during the GFC is now 0.5 per cent above its October 2007 high point.

"In fact, of our five risk categories, only ‘All Growth', which has a 100 per cent allocation to growth assets, is yet to return to its pre-GFC level."

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.

However, SuperRatings pointed to recent events in Europe, which serve as a stark reminder that the global economy is not quite out of the woods just yet.

"Given their large exposure to Australian and international equities, super funds' performance will no doubt be affected in March and SuperRatings estimates that the median balanced option is currently down about -0.3 per cent for the month."