We are currently investigating intermittent issues affecting access to some articles and pages on our site. We apologize for any inconvenience and are working to resolve this as quickly as possible.

Best- And Worst-Performing Funds of 2024

Investments in top technology stocks from the Magnificent Seven paid off for several funds last year.

Sunniva Kolostyak 7 January, 2025 | 10:34AM
Facebook Twitter LinkedIn

tomma och fulla spargrisar

The best-performing funds in 2024 were US large-cap growth funds, while Latin America vehicles struggled.

Morningstar data reveals that 35 Morningstar Medalist Rated funds saw returns above 30% in 2024. The theme for the year is clear: US large-caps and technology reigned supreme.

As highlighted in our recent summary of US market performance, the Morningstar US Communication Services Index rose 39.13% in 2024, while the Morningstar US Technology Index climbed 36.16%. The overall Morningstar US Market Index ended the year up 24.09%.

Two Alger funds top the list with returns above 50%: Alger Focus Equity and Alger American Asset Growth. Both have almost 30% of their holdings in three Magnificent Seven stocks, with an approximate 10% split across Amazon AMZN, Microsoft MSFT and Nvidia NVDA in each case.

Of the 3,200 funds in Morningstar’s database that are available for sale in the UK, only around 300 had a bad 2024. 33 witnessed double-digit losses. By contrast, over 1,000 funds grew 10% or more.

Latin America funds account for the majority of the bottom 10 performers, alongside two funds investing in the energy transition and climate change. The worst two performers were BlackRock Latin American and HSBC Brazil Equity. They fell more than 30% over the year. The mining giant Vale VALE, which fell 43% in 2024, is the biggest holding for both funds (7% and 9% of the funds, respectively).

How Did 2024 Fund Performance Compare to 2023?

Funds with a pure tech focus in the Morningstar category Sector Equity Technology won out, with an innovation fund topping the list in 2023 with a 59% gain. China funds were among the laggards in 2023.

US Large-Caps and Technology Top 2024’s Performance List

Alger Focus Equity

The actively-managed Alger Focus Equity fund gained 54.53% in 2024, outperforming the average fund in the US large-cap growth equity Morningstar Category, which rose 25.72%. The fund placed in the first percentile for performance and beat its benchmark, the Morningstar US Large-Mid Cap Broad Growth Index, by 19.34 percentage points. The £27.2 million fund has gained 14.4% over the past three years, while the average fund in its Category is up 7.28%.

Alger American Asset Growth

Alger American Asset Growth rose 50.51% in 2024. The fund also placed in the first percentile for performance and beat the same index, the Morningstar US Large-Mid Cap Broad Growth Index—by 15.32 percentage points. The £451.7 million fund has climbed 12.72% in the past three years.

Lord Abbett Innovation Growth

The actively-managed Lord Abbett Innovation Growth fund gained 45.89% in 2024, outperforming the US large-cap growth equity Morningstar Category average of 25.72%. The fund placed in the first percentile for performance and beat its benchmark, the Morningstar US Large-Mid Cap Broad Growth Index, by 10.7 percentage points. The £165.2 million fund has gained 8.24% over the past three years.

SVS Aubrey Global Conviction

The £52.1 million SVS Aubrey Global Conviction fund is the only strategy in the top five that doesn’t have a US large-cap growth focus, but instead invests in flex-cap globally. The fund rose 45.04% in 2024, a gain that beat the 8.96% return of the average fund in that Morningstar Category, leaving it in the first percentile for performance. The fund beat its benchmark—the Morningstar Global All Cap Target Market Exposure Index—by 25.49 percentage points. Over the past three years, the Aubrey Capital fund fell 0.71%, while the average fund in its Category rose 2.14%.

Morgan Stanley Investment Funds US Growth

Morgan Stanley US Growth gained 43.81% in 2024, outperforming the average fund in the US large-cap growth equity Category and beating the Morningstar US Large-Mid Cap Broad Growth Index benchmark by 8.62 percentage points. Over the past three years the £2.8 billion actively-managed fund has lost 3.19%.

Latin America and Energy Transition Lagged in 2024

BlackRock Latin American

The actively-managed BlackRock Latin American fund lost 32.33% in 2024, falling further than the average fund in the Latin America equity Category, which fell 25.92%. The fund placed in the 99th percentile for performance and fell further than its benchmark, the Morningstar Emerging Markets Americas Target Market Exposure Index, by 8.12 percentage points. The £403.2 million fund has gained 2.19% over the past three years, while the average fund in its category is up 1.69%.

HSBC GIF Brazil Equity

In 2024, the actively-managed HSBC GIF Brazil Equity fell 31.04%, while the average Brazil equity fund lost 30.06%. The fund placed in the 60th percentile for performance and fell further than its benchmark, the Morningstar Brazil Target Market Exposure Index, by 4.05 percentage points. The £86.7 million fund has dropped 0.85% over the past three years, falling further than the average fund in its Category, which fell 0.13%.

abrdn Latin American Equity

The £69.5 million abrdn Latin American Equity fell 27.93% in 2024. The loss on the actively-managed fund was worse than the 25.92% loss on the average fund in the Latin America equity Category, leaving 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 rose 1.69%.

Barings Latin America

The actively-managed Barings Latin America fund lost 27.24% in 2024, falling further than the average fund in the Latin America equity Category, which fell 25.92%. The fund placed in the 60th percentile for performance and fell further than the Morningstar Emerging Markets Americas Target Market Exposure Index, by 3.03 percentage points. The £128.2 million fund has gained 3.96% over the past three years.

Schroder Global Energy Transition

In 2024, Schroder Global Energy Transition fell 26.15%, while the average equity alternative energy fund lost 10.94%. This actively-managed fund placed in the 91st percentile for performance and lagged its benchmark, the Morningstar Global Markets Renewable Energy Index, by 27.1 percentage points. The £252.9 million fund has dropped 12.5% over the past three years, falling further than the average fund in its Category, which fell 10.01%.


This article was generated with the help of automation and reviewed by Morningstar editors. Learn more about Morningstar’s use of automation.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

About Author

Sunniva Kolostyak

Sunniva Kolostyak  is senior data journalist for Morningstar.co.uk

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures