Super fund investment returns ‘surge’ in February

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Super fund investment returns February 2015Superannuation fund investment returns have ‘surged’ in February according to both SuperRatings and Chant West.

SuperRatings said superannuation funds surged ahead in February, “continuing their stellar run, hitting double digit returns for the first time this financial year to date.”

According to SuperRatings the “median balanced option” returned 3.0% in February, “the largest monthly increase for about 18 months.”

“The result boosts the median return for the financial year to date to total 10.3 per cent, setting the scene for another full year of strong returns. On a 12 month rolling basis the median fund now returned 12.0 per cent,” said SuperRatings.

Research company Chant West said the “median growth fund” (61%-80% growth assets) ‘surged’ 3.1% in February.

This contributed to a “healthy 10.5% gain over the eight months of the financial year to date.”

SuperRatings ascribes the February returns to the “large exposures” most super funds have to Australian and international shares.

Chant West agrees, with director Warran Chant saying “the typical growth fund has about 27% of its assets in Australian shares and about 26% in international shares, and these are the sectors that have driven the strong returns in 2015 so far.”

“Listed share markets, which are the main drivers of growth fund performance, had a very strong February. Australian shares soared 6.9%, while international shares surged 5.9% in hedged terms and 5.3% unhedged. Listed property was mixed, with Australian REITs up 3.7% while global REITs were down 0.7%,” said Chant West.

SuperRatings says 2015 is “shaping up to be another strong year for fund members with gains of more than 1 per cent in five out of the past eight months.”

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