Growth superfunds end month on huge high

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February ended on a huge high for Australian superannuation funds after all growth superfunds reported positive returns, according to a comprehensive survey.

The Morningstar Australian Superannuation Survey included both commercial for-profit and industry superannuation options, and provided comprehensive coverage of the performance of Australian-offered retirement vehicles to 28 February 2014.

It found that all growth superfunds surveyed produced positive returns for the month, with results ranging from a high of 4% to a low of 1.2%.

Longer-term annualised median returns were 13.4% (one year), 8.8% (three years), 11.7% (five years), and 6.9% (10 years to 28 February 2014).

Over the year, the best performing superfunds included Legg Mason Growth (18.5%), Invesco Diversified PST (16.2%) and REST Diversified (16.1%).

Top balanced option performers over the year were REST Balanced (11.8%), AMP Moderate Growth (10.8%), and BT Balanced (10.6%).

Growth assets also produced positive results for the month of February, with the top performers including Australian small companies (5%) and Australian shares (4.9%). International small companies put on the standout performance of the year with a 46.6% return, followed by international shares, global listed infrastructure, and Australian shares.

Growth superfunds’ average allocation to equities at 31 January 2014 was 57.5%, and defensive assets totalled 25.5% on average.

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