Super funds making hay

Superannuation funds have built on the gains of the last financial year, on the back of strong local and international equities and a weakening Australian dollar.

Median growth funds gained about 3 per cent in July, research firms Chant West and SuperRatings said. The growth reversed declines of 0.6 per cent in June.

Global sharemarkets were the strongest growth drivers for the month, with the median Australian shares option delivering 4.8 per cent compared to a rise of 5.2 per cent on the ASX200 Accumulation Index, SuperRatings reported.

The falling Australian dollar boosted returns from international equities, while all other asset classes also strengthened in July.

"July's one-month return for the median balanced option is an exceptional result, especially coming on the back of last financial year's 14.7 per cent gain, the highest since the [financial crisis]," SuperRatings' founder Jeff Bresnahan said.

Chant West director Warren Chant said although the median growth fund was more than 14 per cent higher compared with its pre-financial crisis peaks, Australian shares were still 4.6 per cent behind their October 2007 levels.

"This is an important reminder that the typical growth fund is not just dependent on shares for performance," Mr Chant said.