AMP sees strong double-digit super returns in CY24
Unveiling its performance for the calendar year 2024, AMP has announced strong double-digit returns for members of its MySuper superannuation fund options.
The AMP MySuper 1970s option, which remains the largest by funds under management and uses a high-growth asset allocation, returned 15 per cent in the last year.
AMP MySuper members born in the 1980s and 1990s also saw strong returns of 15.2 per cent and 15.1 per cent respectively, supported by a high growth asset allocation.
According to AMP, MySuper members born in the 1960s and 1950s, who are currently in the lead-up to retirement or in retirement and have a lower growth allocation, also continued to see strong returns. The funds reached 11.5 per cent and 9.8 per cent respectively in the 2024 calendar year.
“The AMP investments team is delighted to have again delivered particularly strong returns for our superannuation members, helping them retire with greater financial confidence,” said Anna Shelley, AMP chief investment officer.
“The quality of returns reflects strategic allocation and active performance by our equity and credit managers to asset classes and our overweight to stocks which we expected to perform strongly during the year, and this strategy has been successful.”
Reflecting on the results, she noted this includes allocations to US and global equities, which have benefited from a strong surge in AI adoption and associated productivity benefits.
Additionally, the fund has been increasing its exposure to alternatives like diversified credit and private debt, which have delivered high and consistent returns, while a previous relatively low allocation to direct property has “allowed us to increase this exposure by buying from motivated sellers at deep discounts”, Shelley said.
The investment executive also noted a small allocation to bitcoin has supported the fund’s strong return in the last year.
“While not a material driver of overall returns, our small and careful investment in bitcoin futures in May, traded and actively hedged through our Dynamic Asset Allocation program, has made a positive contribution,” Shelley explained.
In a market note in December, the CIO had confirmed AMP’s small holding in bitcoin futures, comprising some 0.05 per cent of its total super funds under management.
At the time, she said it added “a new dimension of diversification”, noting it was a “carefully managed, fractional exposure to what is widely considered an emerging asset class”.
“Bitcoin futures are also an asset that behaves very differently to other asset classes held in the fund. This diversification helps reduce overall portfolio risk and provides the potential for greater long-term returns for members,” she explained.
Looking ahead to 2025, Shelley explained the fund aims to continue capitalising on emerging opportunities that can deliver the most meaningful value for its members.
“Ultimately, investing successfully for our members is about determining how the future will be different to the present, and as an active manager having the conviction to tilt our diversified portfolio to reflect our vision of the future,” she said.
“This diversification is essential to delivering sustainable investment returns over the long term.”
AUTHOR
Rhea Nath
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