Self-managed superannuation funds (SMSFs) with heavy allocations to cash will have found themselves at a disadvantage in January, with both domestic and international equities driving returns back into positive territory.
The latest data released by Chant West reveals the median growth superannuation fund (61 per cent to 80 per cent allocated to growth assets) grew by 2.5 per cent in January.
Chant West principal Warren Chant said this was more than enough to recoup the entire 1.9 per cent loss experienced over the 2011 calendar year.
The analysis said the gain in January was due to strong domestic and global share markets, with Australian shares advancing 5.1 per cent in the month, with international equities up 4.3 per cent in hedged terms.
"The strong share market performance in January was on the back of positive economic data coming out of the US, which indicated the US economy is showing signs of strengthening," Chant said.
He said that although debt problems persist in Europe, there were signs the recession may end up being relatively mild.
Chant said that the strength in the share market had also played into the hands of retail master trusts, which had outperformed their industry fund counterparts during January.
