This brings the total return for the first eight months of the financial year to 10.8 per cent.
Share markets were the main drivers of returns during the month, with Australian shares rising by 4.9 per cent and international shares increasing by 4.2 per cent on a hedged basis or 2.3 per cent in unhedged terms.
Chant West director Warren Chant said the positive performance of share markets in February was due to “better than expected manufacturing and employment data coming out of the US and further signs of recovery in the euro zone".
Mr Chant also said the reduction in stimulus in the US was a sign of confidence in the economy.
“Markets are not ignoring negative news but they seem to be confident enough to take it in their stride,” said Mr Chant.
“In recent weeks the political tensions in Ukraine and slowing economic growth in China have reversed the upward trend, but on the whole markets have proven quite resilient and the losses have been quite small,” he said.
The Chant West research also indicated master trusts outperformed industry funds in February, which could be the result of master funds benefitting from a higher weighting to direct shares.
Master trusts returned 2.2 per cent for February, while industry funds generated a return of two per cent.
Industry funds still remain ahead in the long term, however, outperforming master trusts by 0.5 per cent per annum on a 10-year basis.
Mr Chant said it is likely funds will deliver a fifth consecutive positive financial year, potentially with a double-digit return.
“Since the low point of the GFC at the end of February 2009, growth funds have now advanced 67 per cent,” said Mr Chant.
“Not only have they recovered their GFC losses but they now stand 23 per cent above their pre-GFC high reached at the end of October 2007.”
