Australian super funds recorded a 2.55% return during September thanks to sharp improvements in share and property markets, according to new figures from Super Ratings.
But the report also shows that Australians are continuing to struggle with risk, and warns investors must take "some responsibility" to understand how super works before making wrong investment decisions.
The new figures show that the average balanced super fund option is now expected to return a positive rolling 12 month return by the end of October.
That's a lot better than things looked in February, when the rolling 12 month return reached nearly reached minus 20%. Five of the biggest monthly returns recorded in the past five years have occurred in the last seven months.
"Irrespective of the significant rebound, Australians and their superannuation remain in exactly the same position as they were three years ago (to the day) from an investment perspective, which depending on your view is an excellent achievement or a complete disappointment," the company said.
The "balanced" superannuation options recorded a 2.55% return during September, with a 9.27% return during the quarter ending 30 September and for the full financial year. Super Ratings also reported that a rolling 10 year return to 30 September was up 6%.
"Never have we seen super funds jump so quickly, with the median one year rolling return on balanced options set to return to positive territory in October despite hovering around minus 20% just seven months ago."
But the company also warned that those who "panicked" at the offset of the global financial crisis may be disappointed, as individuals who switched to cash are now "some 15%+ behind the average Australian".
"A $1,000 investment in super at the inception of compulsory super on 1 July 1992 had grown to $3,331 as at 30 September 2006. Three years to the day and that same investment is still worth exactly $3,331. Depending on which side you take, one could be very pleased in a relative sense (compared to other international pension funds) or disappointed with the lack of growth over the past three years."
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