Australian superannuation funds have posted healthy quarterly profits – the best in three years.

Median funds, those invested 60 – 76 per cent in growth assets, saw a 5.7 per cent growth in the quarter to March, the best since the same quarter in 2012 – 5.8 per cent.

Factors considered to aid in the strong fund performances were: Healthy returns on the domestic and international sharemarkets and an increase of 10.3 per cent on the benchmark ASX200 Index in the March quarter; while equities benefited from a falling Australian dollar.

Super fund managers are buoyant. If things remain as they are, this will be the third straight year of solid double-digit returns.

In 2012/13 funds blossomed by a fabulous 15.6 per cent; while in 2013/14, funds grew by a healthy 12.7 per cent. Everyone is hoping the run continues. At present the returns for the fiscal year stand at 10.8 per cent, with one more quarter to go.

But SuperRatings chairman Jeff Bresnahan is being more realistic. What goes up must come down. And while Mr Bresnahan (like the rest of us) is hoping the strong returns continue, he knows there must be an eventual downturn.

“We’ve had such a stellar run for such a long time … all things must come to an end eventually, but who knows when?

“It’s highly likely we will have another strong financial year; we are more than 75 per cent up on where we were during the depths of the GFC.

“Some of the sharemarkets might come back by up to 10 per cent which could affect super returns, but not significantly.”

Brendan O’Farrell, Chief Executive of Intrust Super, cautioned super holders to “always remember super is a long-term investment and you will always get bumps along the way.”

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