Super funds hit jackpot

AUSTRALIANS’ superannuation savings have had their fattest quarterly returns in three years.

The bumper March quarter saw median balanced funds ( 60 to 76 per cent invested in growth assets) chalk up returns of 5.7 per cent – the best quarterly increase since March 2012 when funds climbed by 5.8 per cent.

The strong returns are fuelled largely by the climbs in the domestic and international sharemarkets.

A falling Australian dollar also helped increase the returns on international equities.

And the strong results are pushing superannuation returns towards their third consecutive year of double digit growth for the first time since the global financial crisis.

Super funds grew by 15.6 per cent in the 2012- 13 year and 12.7 per 2013- 14.

The figures released by superannuation research firm SuperRatings show super funds grew by 1.9 per cent in January, 3 per cent in February and 0.6 per cent in March, which rounded returns up to 5.7 per cent. The benchmark ASX 200 Index increased by 10.3 per cent in the March quarter to help bolster returns. financial cent in

SuperRatings chairman Jeff Bresnahan said Australians should be thrilled with the returns but said the strong run of good results would eventually have to come to a halt.

“We’ve had such a stellar run for such a long time all things must come to an end eventually, but who knows when,’’ he said.

“It’s highly likely we will have another strong financial, we are more than 75 per cent up on where we were during the depths of the GFC.

“Some of the sharemarkets might come back by up to 10 per cent which could affect super returns, but not significantly. The returns on super accounts are at 10.8 per cent for the financial year- to- date and in the past 12 months members have enjoyed gains of 13.1 per cent.”

Intrust Super chief executive officer Brendan O’Farrell said Australians should be pleased with the returns but should always be prepared for falls. “We should not lose sight of the many uncertainties that currently exist in the world today that could quickly reverse some of these strong gains,’’ he said.

“Always remember super is a long- term investment and you will always get bumps along the way.”