Australian superannuation funds have reversed the total losses experienced in the past 12 months after recording back-to-back positive returns in the first two months of 2012, according to a research report.
A report, published yesterday by Morningstar, found the median growth manager returned 4.3 per cent over the two months to 29 February.
This return is well above the -1.7 per cent returns for median growth managers in 2011.
"The strong performance of growth funds was driven by their growth assets, in particular, by a rallying Australian share market," Morningstar research products manager, and author of the report, Peter Gee said.
"Australian shares, as measured by the S&P/ ASX 300 Accumulation Index, sprinted into 2012, returning 7.3 per cent in the first two months."
The report found over the same period, international share markets returned 4.5 per cent (MSCI World Ex Australia NR AUD).
Australian and global property securities (7.8 per cent and 7.4 per cent respectively) also provided positive contributions for growth funds, the report said.
Gee said despite a strong start to the year for superannuation funds, the reality was the global financial crisis (GFC) was still having a "heavy impact" on medium-to-longer-term performance.
Over the five years to 29 February 2012, the median growth manager had an annualised return of 0.3 per cent, the report found.
Ten-year figures showed a modest annualised return of 4.8 per cent, it said.
"Growth funds were hit severely by the GFC, the average fund losing 23.7 per cent over the 2008 calendar year alone," Gee said.
"At the start of 2012, growth funds required a return of 14.0 per cent over the calendar year to recoup the losses experienced since the bottom of the Australian share market in February 2009 to be back in line with pre-GFC levels during October 2007.
"Should current market performance continue along recent lines, 2012 can be expected to deliver a positive contribution to recapturing the ground lost since the GFC."
The report also found Australia's best-performing growth managers over the three years to 29 February were Schroder (13.2 per cent), followed by Legg Mason Balanced (12 per cent), and CFS Growth (11.7 per cent).
Morningstar's Australian Superannuation Survey includes both commercial for-profit and industry superannuation options.
