Despite a slower March quarter, superannuation funds are on track to grow by more than 10 per cent in the 2013/14 financial year.
Research by investment group Chant West shows the average growth superannuation fund rose one per cent during the three months to March, due to a relatively subdued performance on the Australian and international share markets.
But given the strong gains on share markets in late 2013, the average growth fund is up 10.5 per cent so far this financial year, while the average balanced fund is up 7.9 per cent.
Chant West director Warren Chant said growth funds were on track for their fifth consecutive financial year of double-digit growth.
“Any gain from here to the end of June would ensure that the annual result finishes in the double digits,” he said.
“Another year in the double digits, or close to it, would further diminish the memory of the GFC, while not fading it out completely.”
Growth funds were typically performing better than their long term goal of around 6.5 per cent growth per year, he said.
The average growth fund has grown by seven per cent a year for the past decade, while balanced funds have grown 6.4 per cent a year and conservative funds have grown six per cent.
Mr Chant said the Australian share market lifted around two per cent during the March quarter, while international shares gained around one per cent.
But a rise in the Australian dollar from around 89 US cents to 93 US cents over the quarter more than offset any gain made on international stocks for most super funds during the three months.