Revealed: 10 best & 10 worst performing funds of 2024

Top performing funds benefit from heavy tech ‘Mag 7’ exposure.
Volatile Latin American markets weigh on investor portfolios.
Incoming President Donald Trump and potential tariffs occupy investors’ minds.

Joseph Hill, senior investment analyst, Hargreaves Lansdown:

“Approaching the end of a calendar year can be a good time to reflect. As we look back at a volatile 2024, there’s lots to unpack. Perhaps the biggest news of the year has arrived in the last quarter with the re-election of Donald Trump as President. Although Trump doesn’t directly have a say on the Fed’s decisions, his government’s economic policies, both spending and borrowing, can have an impact. With promises to slap tariffs on goods imported into the country, businesses might decide to pass on those costs to consumers, spurring inflation once again. This could impact how quickly rates come down in 2025, not only in the US, but around the world too.

While the west has battled with inflation, China has battled deflation, where prices fall instead of rise. This led to the introduction of the country’s biggest stimulus package since the pandemic prompting a short-lived stock market rally. Meanwhile, its rival for top spot in Asia, India, continues to grow strongly, driven by domestic consumption, particularly in rural areas that are becoming more urbanised. Emerging market headlines continue to be dominated by the ongoing conflict in the Middle East, with both Lebanon and Iran now involved. But any fears that a wider crisis in the region would impact oil prices hasn’t materialised so far.

What has all this meant for fund performance?

The best performing fund so far this calendar year has been the Alger Focus Equity fund with a return of 59.20%. The fund invests in the US stock market and adopts a large cap growth focused investment style. The US market has continued to defy investor twitchiness over an increasingly concentrated stock market. Stocks plugged into the AI theme have continued to perform well and each of the fund’s top five holdings form part of the ‘Magnificent 7’ stocks which have dominated.

The worst performing fund so far this calendar year has been the BGF Latin American fund with a return of -28.94%. The fund invests almost two thirds of its assets in Brazil, with investments in Mexico also accounting for nearly 30% of the fund. The Latin America region has always carried higher risks, even compared to other emerging markets. Known for its volatility, politics in Latin America frequently dominates the headlines and this year is no different with six elections across the region. Latin American economies have also been hurt by a strong US dollar this year, and higher rates in the US. Add to that the headwinds of shifting politics and it has been a painful mix for markets.”

10 Best Performing Funds of 2024	Return
Alger Focus Equity	59.20%
Alger American Asset Growth	53.38%
MSIF US Growth	51.77%
Aubrey Global Conviction	51.70%
Lord Abbett Innovation Growth	49.31%
Driehaus US Micro Cap Equity	43.34%
WCM Global Equity	41.82%
Meon Adaptive Growth	40.44%
PIMCO MLP & Energy Infra	40.22%
NB Next Generation Connectivity	39.65%

Source: *Lipper IM ytd to 06/12/2024

10 Worst Performing Funds of 2024	Return
BGF Latin American	-28.94%
Barings Latin American	-24.10%
Schroder Global Energy Transition	-23.57%
Abrdn Latin American Equity	-23.56%
BNY Mellon Brazil Equity	-20.74%
Fidelity Latin America	-20.34%
Schroder Latin America	-19.31%
CT Latin America	-19.03%
JPM Latin America	-18.41%
Regnan Global Equity Impact Solutions	-18.11%