The perception that industry superannuation funds outperform their retail competitors may change as two of Australia’s largest retail funds have delivered double digit returns for the 2025 financial year (FY25).
The figures from Insignia Financial Group’s (ASX: IFL) MLC Super and AMP’s (ASX:AMP) AMP Super throw down the gauntlet to industry and profit-to-remember funds but it is too early to know if they delivered equally strong performances.
The MLC High Growth investment option returned 11.4% in FY25 and 11.4% per year ovr the last five years while the MLC MySuper Growth option delivered 10.1% and 9.2% respectively.
AMP’s MySuper 1970s, 1980s and 1990s options achieved returns of 12.7%, 12.9% and 12.8% for FY25 and 9.7%, 10.2% and 10.1% over five years while the MySuper 1950s and 1960s funds posted 10.1% and 11.2% (FY25) and 5.4% and 7.1% (five years).
Staying neutral
MLC Asset Management Chief Investment Officer Dan Farmer said the strong performance of global and Australian equities had been the key drivers of the performance, with alternative assets, private credit and infrastructure also performing well.
He said MLC had been well-positioned for the U.S. change of government, geopolitical issues and moderating inflation, maintaining neutral equity weights throughout the year.
“This year was one of the noisiest we’ve had in a while, but despite the noise, we have delivered strong returns and good outcomes for members, against a volatile market backdrop,” Farmer said in a release.
Catching rebound
Chief Investment Officer Anna Shelley said AMP’s portfolios had been well-positioned to capture the upside of the strong rebound in equities in the last few months in the United States and parts of Europe.
“Our overweight to US shares contributed meaningfully to performance in the first part of the year — and we closed that overweight in early February, anticipating risks around US trade policy,” Shelley said in a media release.
She said AMP’s focus during the ‘Liberation Day’-related volatility was avoiding unforced errors which meant buying equities on down days and trimming on up days.
Stock selection in international equities contributed positively, the Bitcoin allocation produced modest gains, AMP benefitted from buying direct property at a discount from distressed sellers and it had been building exposures in direct infrastructure.
