AMP super AUM rises amid ‘strengthened member proposition’

In an ASX announcement on Thursday, AMP reported that superannuation and investments assets under management (AUM) grew 4 per cent to $54 billion in 1H24, up from $51.9 billion as of 31 December 2023.

This, AMP said, reflected positive market movements.

However, its latest AUM reading slipped from $54.1 billion in 1Q24 and $55.4 billion in the prior corresponding period.

Breaking down its super AUM by asset class, AMP revealed that 41 per cent of its exposure was in international equities, 29 per cent was invested in Australian equities, just shy of a quarter (23 per cent) was in cash and fixed interest, while 6 per cent was exposed to property.

Moreover, the firm’s super and investments arm reported underlying net profit after tax (NPAT) of $34 million, an increase of $6 million (21.4 per cent) on 1H23, driven by lower variable costs, higher investment income, and continued cost discipline, AMP said.

Net cash outflows of $470 million also halved those seen in 1H23 ($993 million), reflective of resilient inflows. According to AMP, 2Q24 also marked the strongest quarter since 2017 in terms of net cash flows.

AMP CEO Alexis George said that continued improvement in outflows over time has been driven by improved investment returns, alongside an increasingly compelling member proposition.

“We have significantly strengthened the member proposition in superannuation and investments with strong investment returns, competitive fees and a compelling insurance offering, and we are seeing reduced outflows and improved retention in this business,” George said on Thursday.

Looking at its strategic priorities for the second half of the year, AMP clarified that focus areas include driving member retention and acquisition in superannuation and investments.

Moreover, the company revealed that new offerings and services are in development for launch in 1H25 in a bid to improve retirement outcomes for members.

AMP’s 1H24 results come after it announced a return of 11.14 per cent for members of its MySuper 1970s superannuation fund option for the financial year 2024.

The option, its largest by funds under management, uses a high-growth asset allocation.

AMP MySuper 1980s and 1990s members, too, benefited from a high growth allocation, notching returns of 11.31 per cent for the financial year.

“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,” said Anna Shelley, chief investment officer at AMP.

This approach was bolstered by positive active asset allocation and security selection from several of AMP’s underlying managers, with the funds benefiting from positioning for market themes like the strong surge in AI adoption across both US and global markets.

The annual results beat out some of AMP’s industry counterparts like AustralianSuper’s return of 8.46 per cent from its default balanced option and HESTA’s 9.1 per cent for its MySuper Balanced Growth default option.