Super funds have continued to grow steadily in 2015 on the back of listed share markets, according to superannuation research firm Chant West.
Australian shares increased by 6.9 per cent, while international shares rose 5.9 per cent in hedged terms and 5.3 per cent unhedged. Listed property was mixed with Australian real estate investment trusts (REITs) up 3.7 per cent and global REITs down 0.7 per cent.
Chant West also said that the median growth fund (61 to 80 per cent growth assets) rose 3.1 per cent in February, following a two per cent rise in January.
"There were several factors that contributed to the positive share market sentiment in February, including a rebound in oil prices," Chant West's director, Warren Chant, said.
"We also saw improving economic data in the Euro zone, and optimism over the impact of the European Central Bank's newly-implemented asset purchasing programme. Easing of concerns surrounding Greece and Russia also helped the market's mood."
Chant said that a 27 per cent of a typical growth fund were in Australian shares, and 26 per cent in international shares.
The firm also found that retail funds and industry funds had a return of 3.2 per cent and 3.1 per cent respectively in February. However, industry funds still hold the advantage in the longer term with a return of 7.3 per cent per annum against 6.2 per cent for retail funds over the 15 years to February 2015.
Vanguard Super has reported strong returns across most of its investment options, attributed to a “low-cost, index-based approach”.
The fund has achieved double-digit returns amid market volatility, reinforcing the value of long-term investment strategies for its members.
Australian super funds notched a third consecutive year of strong returns, with the median balanced option delivering an estimated 10.1 per cent over the 2024-25 financial year, but an economist has warned that the rally may be harder to sustain as key risks gather pace.
AustralianSuper has reported a 9.52 per cent return for its Balanced super option for the 2024–25 financial year, as markets delivered another year of strong performance despite the complex investing environment.