Returns
How did these developments affect returns* in 2024? This is shown for each investment profile below.
The differences in returns between the investment profiles are due to different ratios of equities to fixed-income securities, such as bonds and mortgages.
The difference in return from the benchmark** was mainly attributable to a.s.r.'s equity fund strategies over the past year, with a focus on long-term quality equities. These are equities of companies with stable profit growth, strong balance sheets, good management and a strong competitive position. Last year, this strategy encountered headwinds from, in part, high interest rates and the AI rally, two developments that worked in favour of cyclical and growth equities. For instance, higher interest rates are often accompanied by economic growth, which boosts demand for products and services from cyclical companies, and equities related to artificial intelligence, such as the US Nvidia, experienced very strong gains. In addition, geopolitical developments and consequent increases in defence budgets boosted the prices of defence-related equities. As a.s.r. does not invest or invests comparatively less in these companies, the above developments depressed the relative performance in 2024. Finally, a.s.r. encountered headwinds in the energy transition, where companies such as Alfen and SolarEdge were hit by a sharp decline in demand for renewable energy investments. Although energy transition is an issue that spans decades, investments in it do not take place at a constant pace. They are highly dependent on factors such as policy measures, economic conditions and technological advances, and this is reflected in price trends.
Past performance is no guarantee of future results. Nevertheless, we wish to offer a wider context be stating our average annual returns over longer time periods (3 and 8 years).
- The returns shown are calculated to the end of September 2024.
- The returns shown are net of fund costs but exclude investment administration fees charged by a.s.r.
- The long-term returns show the average annual returns of the investment schedules corresponding to the investment profiles and ages indicated for the specified period.
*The above returns apply to all defined contribution (DC) schemes with a.s.r. investments, except those of the Do-it Pension, as this product uses a different investment mix.
**The benchmarks for our investment profiles are composed proportionally. Each underlying investment fund has its own relevant reference point. For example, the MSCI USA Index is the relevant reference point for the ASR Sustainable American Equity Fund.
“Past performance is no guarantee of future results. Nevertheless, we aim to offer more insight by also showing average annual returns measured over a longer period of time."