The strong returns are expected to continue to December with total profits for the 12 months set to nudge 8 per cent in 2014.
According to the latest performance reports the average super fund made a 1.2 per cent profit for October, driven by a rising Australian share market and increased share prices.
Super pension funds, however, fared slightly better, up 1.5 per cent for the month, according to independent research group SuperRatings.
Last month the average balanced super fund made a loss of 0.6 per cent and pension funds fell 0.7 per cent.
The Australian sharemarket increased 4.4 per cent during the month, pushing up profits for most super funds but particularly those weighted toward local share investments, SuperRatings chairman Jeff Bresnahan said. International shares did not perform as well, up 0.7 per cent for the month.
With the end of the year in sight, expectations are for a strong finish for most funds.
“It’s likely we’ll see a positive return, not in the double digits, but well ahead of the rate of inflation,’’ Chant West director Warren Chant said yesterday.
“While it won’t be anywhere near the lofty returns of the previous two years — 12.8 per cent and 17.2 per cent — it will still represent the fifth positive return in the past six years and the tenth in the past 12 years,’’ Mr Chant said.
Profits across all investment options were positive during October, with the property option leading the month with a 2.8 per cent increase, compared with cash of 0.2 per cent, according to SuperRatings.