POWERED BY MOMENTUM MEDIA
AI rally provides strong uplift to MLC’s FY24 return
MLC has announced a return of 9.8 per cent for its MySuper Growth Portfolio, the default option for members under the age of 55.
Meanwhile, its MySuper Conservative Balanced Portfolio, for members between 55 and 65 years of age, returned 7.7 per cent and its MySuper Cash Portfolio, for members over 65, returned 3.9 per cent.
MLC also unveiled returns of 12.2 per cent for its High Growth option and 16.1 per cent for the MLC Aggressive option among its ready-made portfolios.
Broadly, Steve Gamerov, head of diversified portfolios at MLC Asset Management, credited the strong result to significant international stocks exposures, particularly in US markets.
“Global stock prices made especially solid gains given the continued optimism on the prospects for artificial intelligence (AI) and renewed hopes for lower interest rates later this calendar year,” he said.
“In particular, the largest AI chipmaker – Nvidia – a company in which the MySuper Growth Portfolio is invested – led the charge with a 192 per cent stock price gain given strong revenue and profit growth.”
Gamerov added that Nvidia’s stock has experienced a “remarkable” 3,001 per cent price rise over the last five years.
He also attributed the fund’s performance to its investments in extended and alternative credit strategies.
“The return patterns from these strategies differ from those provided by shares and so are valuable sources of diversification within the portfolio, as well as returns,” he said.
According to the executive, the fund benefited from thoughtful allocations in its unlisted real estate investments, which are currently weighted towards the industrial sector that benefits from the tailwinds of digitisation and e-commerce.
However, he said the returns from these unlisted assets were “overshadowed” by the strong rally of global shares.
Looking ahead, Gamerov said tech stocks are beginning to look “stretched” and cautioned investors not to “lose sight of finding opportunities elsewhere” against the heavily tech-powered share rally.
“We enter the new financial year with a cautious but constructive outlook,” he said.
“Consistent with this cautious view, we will continue to rebalance the portfolio into markets that have underperformed while taking gains in markets that have outperformed.”
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
Recommended for you
Long-term investors face a critical decision – stay the course or pivot, says leading economist Shane Oliver.
More Australians are turning to exchange-traded funds (ETFs) to grow their retirement savings, as evidenced by a series of recent product launches.
Superannuation trustees are failing grieving Australians, with an ASIC review uncovering excessive delays, poor service, and systemic failures in processing death benefit claims.
Prime Minister Anthony Albanese has called a federal election for 3 May, seeking to capitalise on Labor’s recent budget, just hours after Peter Dutton outlined his economic plan and accused the government of fuelling inflation through excessive spending.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
