Super funds struggle to regain GFC losses

Australian superannuation funds recovered well through 2010 but they still need to gain a further 8 per cent in returns to regain their pre-global financial crisis (GFC) levels, according to the latest data from Chant West.

Chant West principal Warren Chant said the median growth fund had returned a relatively modest 4.7 per cent in what he described as a topsy-turvy 2010, which saw a negative 2.2 per cent median return from January to the end of June followed by a healthy 7.3 per cent for the closing six months of the year.

“While funds have recovered well from the depths of end-February 2009, it’s still sobering to think they need a further 8 per cent from here to regain the level they were at in late October 2007 before the GFC,” he said.

Chant said that Australian superannuation funds had already spent more than three years in catch-up mode and there could still be some obstacles in the recovery path with the global economic recovery patchy and some regions doing better than others.

According to the Chant West data, industry funds have resumed their leadership over retail master trusts, returning 4.9 per cent in the year to December compared to 4.3 per cent.

Chant said industry funds had outperformed the retail master trusts for six out of the past 10 years.

“Once again, the strategic allocation policies of the industry funds have served them well over the past year,” he said. “Their higher allocations to unlisted property, infrastructure and private equity have contributed to their outperformance.”

Chant West nominated the top performing growth funds for last calendar year as being Health Super MT Growth (8.4 per cent), CBA OSF Mix 70 (7.8 per cent), Maritime Super Balanced (7 per cent), Auscoal Growth (6.8 per cent), NGS Super Diversified (6.6 per cent), Vision Super Balanced Growth (6.5 per cent), Telstra Super Balanced (6.3 per cent), BT Multi-Manager Balanced (6.3 per cent), Hostplus Balanced (6.2 per cent) and CareSuper Balanced (6.2 per cent).