Funds expect healthy returns as super up

MOST super funds on track for double-digit returns by financial year's end, a relief after run of losses.

MOST super funds are on track for double-digit returns by financial year's end, a welcome relief for investors after two years of losses.

The average balanced super fund is expected to be up at least $10,000 for every $100,000 invested.

Master trust investors are likely to receive at least $13,000 for every $100,000 invested.

Master trusts generally have a greater level of investment in listed assets, such as shares and property trusts.

Industry funds on the other hand traditionally have more invested in unlisted assets -- such as commercial property, infrastructure and construction projects -- which are valued professionally and not by investors buying and selling on a daily basis.

Research companies Chant West and SuperRatings say the big retail master trusts are expected to top the rankings this year with the highest average returns -- for only the second time in 10 years.

"Master trusts look set to finish up about 3 per centage points ahead of the industry funds," Chant West spokesman Mano Mohankumar said.

"This is definitely a turnaround from previous years when industry funds finished well ahead."

According to SuperRatings managing director Jeff Bresnahan, Australian funds should perform better than super funds in other countries because of our weak currency.

"The fall in the value of the Australian dollar has cushioned our super funds," he said.

Overall, balanced option super funds were forecast to return 11-12 per cent.