Australian superannuation (super) funds have continue to record impressive gains over the last quarter, returning their levels to that of pre financial crisis according to new research.
On Wednesday, research firm SuperRatings released research showing that the average balanced Super Fund recorded a 9.27 per cent gain in the quarter ending September, producing a total gain of just over 17 per cent since March.
“Never have we seen super funds jump so quickly, with the median one year rolling return on balanced options set to return to positive territory in October despite hovering around minus 20 per cent just seven months ago,” SuperRatings said.
Chant West, another research firm, released data saying that super funds achieved 9.9 per cent growth for the quarter ending September.
Balanced funds allocate about 60 to 76 per cent of their holdings to growth assets, whilst growth funds allocate between 60 to 80 per cent.
Both firms apportioned credit the gains to the recovery of both the equity and property markets.
The Australian equity market recorded a gain of 21.6 per cent for the quarter ending September, whilst listed real estate investment trusts (REIT’s) gained 30.8 per cent, Chant West said.
Average balanced funds were now at the same level they were at three years ago, according to SuperRatings.
The strong Australian dollar however has had a negative impact on Super Funds, Chant West principal Warren Chant said.
“While sharemarkets around the world have been rising strongly, most super fund members haven’t picked up the full benefit because earnings measured in overseas currencies – especially the US dollar – are worth less when converted into Australian dollars,” Mr. Chant said.

October 20th, 2009
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