Positive AMP returns

Press, 10 February 1988, Page 42

Positive AMP returns

NZPA-AAP Sydney The Australian Mutual Provident Society’s superannuation funds made positive returns over 1987, in spite of turning down sharply in the December quarter due to the October sharemarket crash. According to the AMP’s quarterly report for December, its Balanced, Market-Linked and Managed Equity funds, which make up the group’s $6.1 billion umbrella No. 2 fund, had improved slightly since the Australian sharemarket’s low

point on November 11. AMP portfolio investment manager, Mr Ray Greenshields, said their performance highlighted the benefit of diversification. The Balanced Fund had a negative return of 17.8 per cent in the December quarter, but returned 7.2 per cent over the year. The Market-Linked Fund returned 2.3 per cent for the year after recording a negative December quarter return of 23.6 per cent. The Managed Equity

Fund had a negative return of 31.4 per cent for the December quarter and gave an annual negative return of 5.5 per cent. These funds had returned 6.2 per cent, 6.9 per cent and 7.2 per cent respectively since the sharemarket’s November 11 low. The sharemarket crash and its aftermath confirmed AMP’s view that superannuation clients were served by a consistent predictable approach to long-term risk management and not by a "wheeler-dealer style with an eye to the near horizon.” The No. 2 Fund property portfolio had a record 26.9 per cent return in 1987 which compared favourably with the average 5.7 per cent return from listed property trusts for the same period, Mr Greenshields said.