February 2013 super fund returns

Super funds continued their strong run in February, with the median growth fund (61 to 80% allocation to growth assets) up another 2% over the month. The gain for the financial year to date is now 13.2%, with four months still to run to the end of June.

Australian shares were the star performers in February, with the market surging 5.3%. International shares gained 1.3% in hedged terms and 1.9% on an unhedged basis. Listed property also performed well, with Australian REITs up 3.5% and global REITs gaining 1.9%.

Chant West director, Warren Chant, says: “The upbeat tone in the Australian and international share markets continued in February, despite the fact that global economic conditions are only improving very slowly. Of course super funds aren’t entirely reliant on shares for their performance, but with the continued surge in these markets the median growth fund is now 8% above its pre-GFC level. Even the more aggressive High Growth category (81 to 100% allocation to growth assets) which was savaged during the GFC is now 0.5% above its October 2007 high point. In fact, of our five risk categories, only ‘All Growth’, which has a 100% allocation to growth assets, is yet to return to its pre-GFC level.

Indices:

The Australian All Ordinaries Index has moved up increasing +118 points (or +2.4%) since closing last Friday to 03:10 pm today.

The rest of the world as measured by the MSCI index increased +8 point (or +2.7%) in A$ from closing last Friday to end of trade Thursday.