Super funds on track to exceed pre-GFC levels

Most Australian superannuation fund members will have more than regained the ground lost during the global financial crisis, according to the latest data from Chant West.

According to Chant West the median growth fund returned 2.2 per cent in April, bringing the return for the financial year to date to 15.4 per cent.

Chant West director Warren Chant said that with only two months of the financial year remaining, the annual return for the median growth fund was closing in on the 15.6 per cent achieved in 2006/07 - the highest single-year return in the past 15 years.

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The Chant West data also confirmed that retail master trusts had continued their run of out-performing industry superannuation funds on the back of the continuing strong performance of share markets and listed property.

The data for April showed that master trusts outperformed industry funds in April by 2.4 per cent versus 1.9 per cent - although Chant said that industry funds continued to lead retail master trusts over a 10-year time-frame.

The industry funds had done better when listed markets had been flat or in decline, while the reverse had been the case when markets were positive, the report said.

Chant said that the strong share market rally had been driven largely by positive sentiment, with investors optimistic about any good news and prepared to downplay bad news.

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