Funds returning over 20% annually in the last decade
18 FEB, 2025
By Jose Luis Palmer from RankiaPro Europe
Achieving an annualised return of over 20% for a decade is an exceptional accomplishment in the world of investment. The last decade has been marked by significant economic and financial events, from the recovery following the 2008-2009 financial crisis to the COVID-19 pandemic in 2020, which caused unprecedented volatility in the markets. Additionally, factors such as the acceleration of digital transformation, the rise of artificial intelligence, expansive monetary policies from central banks, and growing investment in technology have created a favourable environment for the growth of certain sectors.
In this economic and market environment of the last few years, these funds have been able to post annualised returns of over 20%, highlighting the analytical and management work of the portfolio managers, as well as the teams that make up each of the fund managers on this list. In this analysis, we explore their investment strategies, the sectors they operate in, and the determining factors that have driven their success.
Funds with annualised returns over 20%
| Fund | 10 Years Annualised returns | Category | ISIN |
|---|---|---|---|
| JPMorgan Funds - US Technology Fund | 22.85% | Tech Equity | LU0129496690 |
| CT (Lux) - Global Technology | 21.66% | Tech Equity | LU0957808735 |
| Fidelity Funds - Global Technology Fund | 21.26% | Tech Equity | LU0936579340 |
| BlackRock Global Funds - World Technology Fund | 21.15% | Tech Equity | LU0724618946 |
| Janus Henderson Capital Funds plc - Global Technology and Innovation Fund | 20.72% | Tech Equity | IE00BFRSYS74 |
| Polar Capital Funds PLC - Polar Capital Global Technology Fund | 20.49% | Tech Equity | IE00B42W4J83 |
| Franklin Technology Fund | 20.05% | Tech Equity | LU0366762994 |
Analysis of Strategies and Predominant Sectors
The macroeconomic context and the progress being made in technology has benefited investment in the tech sector. The rise of renewable energy, the emergence of Artificial Intelligence and its exponential growth, together with the development and improvement of other technologies, have, over the last decade, driven the appetite for investment in technology, favouring companies positioned to revolutionise the technology sector. However, while technology investment has received a large dose of attention over the last ten years, the outlook, due to the current valuation situation and the increased competitiveness, could turn out to be different for the coming years.
Dominance of Technology
The seven funds returning over 20% annualised during the last ten years belong to the technology sector, reflecting the strong growth and relevance of this industry over the last decade. Companies like Apple, Microsoft, NVIDIA, Amazon, and Alphabet have been key drivers of these funds' performance, powered by trends such as digital transformation, artificial intelligence, e-commerce, and cloud computing.
JPMorgan Funds - US Technology Fund has focused its strategy on US tech leaders, capitalising on the concentration of innovative talent in Silicon Valley.
CT (Lux) - Global Technology and Fidelity Funds - Global Technology Fund have maintained global and diversified portfolios within the sector, with exposure to software, semiconductors, and cybersecurity. The CT (Lux) - Global Technology is a conviction fund, which wants to seize the opportunities offered by companies misunderstood by analysts. On the other hand, the Fidelity Funds - Global Technology Fund invests primarily in growth, cyclical and special situations companies within the sector.
BlackRock Global Funds - World Technology Fund and Janus Henderson Capital Funds - Global Technology and Innovation Fund have combined positions in tech giants with strategic bets on emerging companies with high growth potential. The BlackRock Global Funds - World Technology Fund invests globally in the technology sector on an ESG basis. Meanwhile, the Janus Henderson Capital Funds - Global Technology and Innovation Fund blends investment in resilient companies with those with growth potential to seek the optimal combination of risk and return.
Polar Capital Global Technology Fund and Franklin Technology Fund have stood out for their ability to identify and position themselves early in innovative companies with disruptive business models. The Polar Capital Global Technology Fund has a growth-centric approach, resulting in a bias towards small and mid-cap companies. While the Franklin Technology Fund seeks to invest in companies that are expected to benefit from the development, advancement and use of technology.
Key Success Factors
- Innovation and Technological Disruption: The growing adoption of new technologies has allowed the companies in these funds' portfolios to experience accelerated growth.
- Structural Growth of the Tech Sector: Global digitalisation has driven a constant demand for tech solutions, benefiting especially funds exposed to this sector.
- Active Management and Rigorous Security Selection: The managers of these funds have demonstrated strong skills in identifying strategic opportunities and adapting their portfolios to market conditions.
- Favourable Macroeconomic Conditions: Factors like low interest rates, fiscal stimuli, and increasing investment in technology have been key catalysts for the funds' performance.
- Strategic Diversification: Although most funds are focused on technology, diversification within the sector and flexible asset allocation have allowed risks to be mitigated and emerging opportunities to be seized.
Conclusion
The funds that have exceeded 20% annualised returns over the past decade have successfully positioned themselves in high-growth sectors, with a particular focus on technology. Their success has been driven by a combination of expert management, the identification of key trends, and a favourable macroeconomic environment.
For investors looking for exposure to innovative sectors, these funds serve as a benchmark for successful long-term investment strategies.
