Surging local stocks boost superannuation returns in October SUPERANNUATION savers saw their nest eggs return an extra 1.8 per cent during October thanks to the strong sharemarket, bringing the gain so far this financial year to a very solid 6.8 or 6.9 per cent. This is on top of the 15.6 per cent return over the 2012-3 financial year, which was on a par with the best single-year return since 1997. The numbers come from calculations by superannuation consultants on the performance of median growth funds, where most superannuation money is held, that hold between 61 and 80 per cent in growth assets. Those assets are shares and property, both in Australia and offshore. Warren Chant of consultants Chant West attributed the rise mostly to Australian shares, up 3.9 per cent in the month. International shares also advanced 3.9 per cent in hedged terms but, due to the appreciation of the Australian dollar from US93c to US95c, the return in unhedged terms was lower at 2.6 per cent. SuperRatings' Jeff Bresnahan said that the recovery by super funds since the low point in February 2009 has been an "astounding" 57 per cent. His calculations , which differ slightly from Chant West's because his median funds hold fewer growth assets at between 60 and 76 per cent, show that the rolling ten-year return on super to October 31 is 7 per cent. Chant West calculates it to be 7.1 per cent. Mr Bresnahan said that the October gain was "another positive in a string of good returns to members, with 17 of the last 20 months of superannaution returns finishing in the black." Should investments remain flat over the next six weeks, super funds will be on track to deliver their strongest returns in a calendar year since the GFC, which will be an excellent result. Mr Chant said: "The typical long term objective for growth funds is to exceed inflation plus 3.5 per cent per annum, which translates to a return of about 6.5 per cent." His five-year return number for growth funds is 8 per cent.