The best-performing funds in 2024 were large U.S. growth funds, while Latin American ones struggled.
Morningstar data reveals that 35 funds rated Morningstar Medalist returned more than 30% in 2024. This year’s theme is clear. U.S. large-cap stocks and technology reigned supreme.
As highlighted in our recent overview of U.S. market performance, the Morningstar U.S. Communications Services Index rose 39.13% in 2024, while the Morningstar U.S. Technology Index rose 36.16%. The overall Morningstar U.S. Market Index ended the year up 24.09%.
Two Algiers funds, Algiers Focus Equity and Algiers American Asset Growth, top the list with returns of more than 50%. The companies hold nearly 30% of their holdings in three Magnificent Seven stocks, with about 10% each split between Amazon AMZN, Microsoft MSFT, and Nvidia NVDA.
Of the 3,200 funds in Morningstar’s database available for sale in the UK, only around 300 performed poorly in 2024, with 33 posting double-digit losses. In contrast, more than 1,000 funds grew more than 10%.
Latin American funds account for the bulk of the bottom 10 performance, along with two funds that invest in energy transition and climate change. The two worst-performing stocks were BlackRock Latin American and HSBC Brazil. It has fallen more than 30% for the year. Mining giant VALE, which fell 43% in 2024, is the largest holding for both funds (7% and 9% of the funds, respectively).
How did the fund perform in 2024 compared to 2023?
Purely technology-focused funds won Morningstar’s Sector Equity Technology category, with innovation funds topping the list with a 59% rise in 2023. In 2023, China funds lagged behind.
2024 US Large Cap and Technology Top Performers List
algiers focus equity
The actively managed Algiers Focus Equity Fund gained 54.53% in 2024, outperforming the average U.S. large-cap growth Morningstar Category fund (up 25.72%). The fund ranked in the first percentile of performance, outperforming its benchmark Morningstar U.S. Large-Mid Cap Broad Growth Index by 19.34 percentage points. The £27.2m fund has grown by 14.4% over the past three years, while the average fund in its category has grown by 7.28%.
Growth of Algiers’ American Assets
Algiers American Asset Growth increased by 50.51% in 2024. The fund also ranked in the first percentile for performance, outperforming its peer index, the Morningstar U.S. Large-Mid Cap Broad Growth Index, by 15.32 percentage points. The £451.7m fund has gained 12.72% over the past three years.
Lord Abbett’s Growth of Innovation
The actively managed Lord Abbett Innovation Growth Fund gained 45.89% in 2024, outperforming the U.S. Large Cap Growth Stock Morningstar Category average of 25.72%. The fund ranked in the first percentile of performance, outperforming its benchmark, the Morningstar U.S. Large-Mid Cap Broad Growth Index, by 10.7 percentage points. The £165.2m fund has grown by 8.24% over the past three years.
SVS Aubrey Global Conviction
The £52.1m SVS Aubrey Global Conviction Fund is the only strategy in the top five that does not focus on US large-cap growth, investing instead in global flex caps. There is. The fund gained 45.04% in 2024, outperforming the average Morningstar Category fund return of 8.96% and ranking in the first percentile of performance. The fund outperformed its benchmark Morningstar Global All Cap Target Market Exposure Index by 25.49 percentage points. Over the past three years, Aubrey Capital Funds has declined 0.71%, while the average fund in its category has risen 2.14%.
Morgan Stanley Investments funds US growth
Morgan Stanley U.S. Growth gained 43.81% in 2024, outperforming the average fund in the U.S. Large-Cap Growth Stock category and beating the benchmark Morningstar U.S. Large-Midcap Broad Growth Index by 8.62 percentage points. Over the past three years, the £2.8bn actively managed fund has fallen by 3.19%.
Latin America and energy transition delayed to 2024
black rock latino
The actively managed BlackRock Latin America Fund fell 32.33% in 2024, more than the 25.92% decline of the average fund in the Latin American Stocks category. The fund ranked in the 99th percentile in performance, down 8.12 percentage points from its benchmark, the Morningstar Emerging Markets Americas Target Market Exposure Index. The £403.2m fund is up 2.19% over the past three years, compared to the average fund in the same category which is up 1.69%.
HSBC GIF Brazil Stocks
In 2024, the actively managed HSBC GIF Brazil Stocks fell 31.04%, while the average Brazil stock fund fell 30.06%. The fund ranked in the 60th percentile in performance, down 4.05 percentage points from its benchmark, the Morningstar Brazil Target Market Exposure Index. The £86.7m fund has fallen 0.85% over the past three years, further down than the 0.13% decline for the average fund in its category.
abrdn latin american stocks
Latin American stocks totaling £69.5m fell 27.93% in 2024. The actively managed fund’s loss was greater than the average fund’s loss of 25.92% in the Latin American equities category, placing it in the 72nd percentile for performance. The fund underperformed the Morningstar Emerging Markets Americas Target Market Exposure Index by 3.72 percentage points. Over the past three years, the abrdn fund has risen just 0.4%, while the average fund in its category has risen 1.69%.
barings latin america
The actively managed Barings Latin America Fund fell 27.24% in 2024, more than the 25.92% decline of the average fund in the Latin American Stocks category. The fund ranked in the 60th percentile for performance, further down 3.03 percentage points than the Morningstar Emerging Markets Americas Target Market Exposure Index. The £128.2m fund has increased by 3.96% over the past three years.
Schroders Global Energy Transition
In 2024, Schroders Global Energy Transition fell 26.15%, while the average Equity Alternative Energy Fund fell 10.94%. The actively managed fund ranked in the 91st percentile for performance, underperforming its benchmark Morningstar Global Markets Renewable Energy Index by 27.1 percentage points. The £252.9m fund has fallen 12.5% over the past three years, further down than the 10.01% decline for the average fund in its category.
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