AMP’s superannuation fund reports strong returns

AMP has delivered superannuation returns better than many of its more fancied market rivals and that’s in part thanks to its exposure to US stocks.

AMP chief investment officer Anna Shelley. Picture: Stuart McEvoy

Thanks to exposure to US stocks, AMP has delivered superannuation returns better than many of its more fancied market rivals.

Its AMP MySuper 1970s superannuation fund option returned 11.14 per cent for the financial year ending June 30.

One of AMP’s Lifestage MySuper offerings, 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 firm was delighted to have delivered strong returns for the AMP MySuper members.

“Our three largest Lifestage cohorts by assets under management saw returns greater than 11 per cent for the 2024 calendar year,” she said.

“From December to June, our portfolios had a tactical overweight to US equities which saw strong returns as our funds continued to outperform their benchmarks.

“We have been increasing our exposure to private debt and diversified credit, which have delivered high and consistent returns, and our funds benefited from a very strong stock selection in international equities as well as a low allocation to direct property, which is the only negative returning asset class this year.

“Sharemarket gains were once again led by the US tech sector. Capitalising on the universal appetite for AI adoption together with our high strategic allocation to global listed equities allowed us to record strong performance for our members.”

Those AMP MySuper members born in the 1980s and 1990s had returns of 11.31 per cent on their funds.

Ms Shelley said the prospects for global equities was very strong over the long term.

“AI-led productivity benefits should underpin GDP growth and corporate earnings for many years to come,” she said.

“ This, combined with a decade or so of spending on clean energy infrastructure, results in a very positive outlook for equity and corporate debt markets.

“Looking ahead, short term market uncertainty in the lead up to the US elections may present an attractive buying opportunity, in which event we would look to take advantage of sharemarket weakness in delivering maximum returns for our members.”

She said diversification remained the key to AMP’s strategy in helping deliver sustainable investment returns over the long term. AMP shares closed flat at $1.08.

Originally published as AMP’s superannuation fund reports strong returns