Super funds start year on strong note

Superannuation funds have posted a robust result at the beginning of the year, with median growth fund (61 to 80 per cent growth assets) climbing two per cent in January.

This comes after a good 8.5 per cent return in 2014, with growth funds reaching 7.2 per cent over the seven months of the financial year to date, the latest Chant West data showed.

Chant West director Warren Chant said most investment commentators expect more limited returns for the year ahead.

"Investors themselves are proving more optimistic, however, and as a result the median growth fund is off to a great start in 2015," he said.

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"Share markets have continued rising, and we estimate that the median growth fund is up another 2.5 per cent over the month of February to date. That's on top of January two per cent, so 4.5 per cent over the first month and a half of the year."

Meanwhile Australian shares shot up 3.2 per cent, but international shares lost 0.7 per cent in hedged terms. But a drop in the Australian dollar meant unhedged international shares returned a positive 3.2 per cent.

Listed property continued its robust run from last year, with Australian REITs up 7.4 per cent and global REITs up 7.7 per cent.

The high exposure to listed property meant retail funds surged ahead of industry, posting 2.2 per cent versus 1.8 per cent.

But over the longer-term, industry funds hold the edge, returning 7.2 per cent per annum against retail funds' 6.1 per cent over the 15 years to January.