A strategic overweight to US and global equities along with an increased exposure to private debt and diversified credit has seen AMP deliver a return of more than 15 per cent for its three largest Lifestage cohorts in 2024.
AMP MySuper 1980s members benefited the most from high-growth asset allocation, with returns of 15.2 per cent, followed by 1990s members with a 15.1 per cent return.
The AMP MySuper 1970s superannuation option, which is still largest by funds under management and uses a high-growth asset allocation, returned 15 per cent for its members, representing a growth from the 11.14 per cent reported in July.
Similarly, AMP MySuper 1980s and 1990s members also saw a growth in returns compared with July 2024 when they stood at 11.31 per cent.
However, AMP MySuper members born in the 1960s and 1950s, who are in the lead-up to retirement or in retirement and have a lower growth allocation, saw returns at 11.5 per cent and 9.8 per cent, respectively.
“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,” said Anna Shelley, chief investment officer at AMP.
This approach included being overweight to US and global equities, which benefited from a strong surge in AI adoption and associated productivity benefits.
Moreover, AMP increased its exposure to private debt and diversified credit in order to deliver high and consistent returns.
Shelley also highlighted “relatively low allocation” to direct property, which allowed AMP to increase its exposure to this asset class by buying from “motivated sellers” at deep discounts.
Additionally, an exposure to bitcoin futures earlier this year also had a positive impact.
“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,” she said.
In November, Shelley told Super Review that AMP remained long-term bullish on shares and economic growth, which were supported by the combination of stimulative fiscal policy, spending on AI by the large tech firms, and the expected long-term productivity benefits.
She said that AMP was looking to increase exposures to direct infrastructure and potentially direct property, while “being highly selective”.
Looking into the next financial year, Shelley said that successful investing for its members would require adjusting portfolios accordingly to enable capitalisation on emerging opportunities.
“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,” the CIO said.
Shelley said that diversification is going to remain key in delivering sustainable investment returns over the long term.
In August, the company announced that new offerings and services were in development for launch in 1H25 in a bid to improve retirement outcomes for members.
As of August, AMP’s super AUM had a 41 per cent of exposure to international equities, 29 per cent was invested in Australian equities, 23 per cent was in cash and fixed interest, while 6 per cent was exposed to property.
