AMP Super reports strong returns of 15pc in 2024 amid bitcoin and Wall Street gains

AMP has delivered in excess of 15 per cent returns for its MySuper superannuation customers, as investments in US and global equities with exposure to AI adoption paid off.

AMP’s MySuper customers have enjoyed a bumper 2024. Picture: NCA NewsWire / Steven Saphore

AMP has delivered in excess of 15 per cent for its MySuper superannuation customers in the 2024 calendar year, beating its peer group average, as investments in US and global equities with exposure to AI adoption paid off.

The high-risk strategies employed by aggressive growth funds came as the superannuation industry posted its best year since 2021.

MySuper members born in the 1980s and 1990s who are earlier in their working lifetime and have a high growth asset allocation, benefited from returns of 15.2 per cent and 15.1 per cent respectively for the year.

Part of AMP’s Lifestage MySuper offers, the 1970s option currently uses a high-growth asset allocation and is the largest by funds under management.

AMP chief investment officer Anna Shelley said the fund manager had looked for strategic portfolio allocation and active performance by its equity and credit managers to asset classes and was overweight to stocks, which were expected to perform strongly during the year.

“This includes US and global equities, which have benefited from a strong surge in AI adoption and associated productivity benefits,” she said.

“We’ve been increasing our exposure to private debt and diversified credit, which have delivered high and consistent returns.”

Ms Shelley said that AMP’s relatively low allocation to direct property allowed the group to increase this exposure by buying from motivated sellers at deep discounts.

Analysis by SuperRatings shows that the median balanced option returned 11.5 per cent for 2024, and most options delivered a return of more than 10 per cent, while the top providers achieved 12.5 per cent.

For 2024, Australian super funds enjoyed their strongest returns since 2021.

The past year was the strongest since the 13.4 per cent delivered in 2021 when equities rebounded from sluggish performance during the Covid-19 pandemic. The best return in the past 10 years is the 14.7 per cent in 2019, while a 16.3 per cent bounce in 2013 is the best result this century.

AMP MySuper members born in the 1960s and 1950s who are currently in the lead-up to or are now in retirement and have a lower growth allocation also continued to see strong returns, with the funds reaching 11.5 per cent and 9.8 per cent respectively.

Customers born between 1970 and the end of the 1990s have had an average return over the past decade of about 8 per cent, while those born in the 1960s saw a return of 5.9 per cent over the same period and 4.6 per cent for those from the 1960s.

AMP is one of the traditional investment houses that has moved into bitcoin, offering allocations into the cryptocurrency for superannuation customers.

Ms Shelley said while bitcoin was not a material driver of overall returns, the small and careful investment in bitcoin futures in May, traded and actively hedged, made a positive contribution.

She added that diversification through streams such as bitcoin was essential to delivering sustainable investment returns over the long term.

“We will continue to position our portfolio to capitalise on emerging opportunities which can deliver the most meaningful value for our members, and continue to draw on the capability and depth of experience in our investment team,” she said.

“Investing successfully 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.”

Returns have been driven by a strong year for US equities, with the tech-heavy Nasdaq up 28 per cent for the year, the S&P 500 climbing 25 per cent and the Dow Jones Industrial Average adding 14 per cent.

The ASX 200 index closed off the 2024 calendar year with a 7.5 per cent gain, beating average annual gains of 3.8 per cent in the past decade and 5.6 per cent in the past 20 years. Bitcoin rallied by more than 120 per cent over that period to be buying $US96,804 on Friday.

Originally published as AMP Super reports strong returns of 15pc in 2024 amid bitcoin and Wall Street gains