The median balanced superannuation option returned 1.1 per cent in July, driven by positive performance from Australian shares options, property, fixed interest and cash according to SuperRatings.
SuperRatings said Australian shares options had gained 3.1 per cent for the month.
Chant West said the Australian sharemarket had gained 4.2 per cent in July, while international shares were up 1.2 per cent in hedged terms and down 1.6 per cent when the strong Australian dollar was taken into account.
Investors had reallocated some funds to global share markets as though no more bad news was good news, according to Chant West.
Listed property also performed particularly well for the month, with Australian REITs up 5.6 per cent and global REITS 3.4 per cent.
Although industry funds outperformed master trusts over the long-term, the latter's higher allocation to listed property and listed shares produced a 1.5 per cent return compared to 1 per cent for industry super funds, Chant West said.
It said industry funds had performed better than master trusts when listed markets were flat or in decline – a trend which was likely to continue as long as their asset allocation differences remained.
The median return for the year (at 3 per cent) has been driven mainly by defensive assets, while Australian shares contributed 0.1 per cent and international shares decreased 0.8 per cent, according to SuperRatings.
Bresnahan and Chant West said diversity was key, with allocations to fixed interest, property, cash and alternative assets offsetting weaker equity markets, but both stressed the importance of growth assets in driving returns over the long-term.
