Growth superannuation funds have had a strong start to the year off the back of strong overseas share markets, particularly in the United States, according to the latest data from Chant West.
The data found that the average growth superannuation fund (with 61 to 80 per cent growth assets) posted a 1 per cent return in the month of January, bringing the total returns for the financial year to date up to 8.4 per cent since 1 July, 2010.
Chant West director Warren Chant said the performance in overseas share markets was largely fuelled by stronger than anticipated economic data in the US, combined with some company results that exceeded expectations.
Despite sovereign debt still being an underlying concern in Europe, Chant said that markets there have also had a strong start to the year.
But he said there is still some concern surrounding the impact of natural disasters in Australia in the last few weeks.
"In Australia, we are yet to see what the full impact of the recent floods and cyclone will be on shorter term growth, inflation and interest rates. However, we don't expect there to be a major impact on long-term growth."
