Fewer than 3% of equity funds have made top-quartile returns in both halves of the past decade, research by Trustnet has found, after managers had to contend with vastly different conditions in each period.
Over the past 10 years, stocks markets have been shaped by two distinct and contrasting five-year periods, with each phase bringing unique macroeconomic conditions, policy responses and market drivers that tested fund managers.
From 2015 to 2019, global equity markets delivered strong and relatively stable returns, supported by moderate economic growth and low interest rates. Central banks, including the Federal Reserve and the European Central Bank, kept monetary policy broadly accommodative to sustain investor confidence.
During this time, growth strategies outperformed, with funds focused on US technology and consumer discretionary sectors leading the way. Emerging markets delivered mixed returns, with gains often limited by currency pressures and uneven economic performance.
The period from 2020 to 2025 brought far greater volatility and a series of major global disruptions. The Covid-19 pandemic triggered a sharp recession in early 2020, followed by an aggressive policy response that sparked a strong, if uneven, rebound in risk assets.
From 2022, equity markets faced renewed headwinds as inflation surged and central banks raised interest rates at an accelerated pace. In this context, consistent outperformance has become increasingly rare.
Trustnet therefore filtered the Investment Association’s 22 equity sectors to see which funds have been able to make top-quartile returns across both five-periods. We found that there were 34, or just 2.6% of the 1,294 equity funds with a 10-year track record, which can be seen in the table below ranked by their total returns over the full decade under consideration.
Source: FE Analytics. Total return in sterling between 1 Jul 2015 and 30 Jun 2025.
The four names at the very top of the table show that technology funds have delivered exceptional performance across both five-year periods. Strategies focused on large-cap US technology companies consistently outpaced broader indices, even across the past decades' shifting conditions.
SSGA SPDR MSCI World Technology UCITS ETF and Fidelity Global Technology each returned over 600% over the ten-year period, with their strong gains split relatively evenly across both halves.
Passive exposure to the tech-dominated Nasdaq 100 means Invesco EQQQ Nasdaq 100 UCITS ETF and iShares NASDAQ 100 UCITS ETF allowed investors to benefit from structural tailwinds as US large-cap tech stocks led markets across the decade.
Although the US tech investment case has been shaken several times in recent years by headwinds such as rising interest rates, the launch of China’s DeepSeek AI model and a cracking of the US exceptionalism narrative, it has rallied soon afterwards – including in recent weeks.
Beyond the technology sector, a broader group of US-focused funds also delivered consistent top-quartile performance across both five-year periods. Funds such as TM Natixis Loomis Sayles U.S. Equity Leaders, Alger American Asset Growth and New Capital US Growth maintained strong returns despite markedly different economic backdrops.
While the tech sector was a key driver, these funds are able to offer more diversified exposure to the US across consumer, healthcare and industrial sectors.
The strong showing of US equity funds also reflects the global role of the US dollar and the outperformance of the S&P 500 versus international peers, although it must be noted that this has weakened in 2025 as investors rotate away from the US.
Several global equity funds also achieved top-quartile returns in both five-year periods, demonstrating the ability to allocate effectively across regions and sectors. Strategies such as GMO Quality Investment, Guinness Global Innovators and WS Purisima Global Total Return PCG delivered consistent results despite market rotations and macro shocks.
These funds typically focused on quality and innovation-led companies, with a bias toward developed markets and resilient business models.
A number of European equity funds also maintained top-quartile returns across both periods, despite a more challenging macroeconomic backdrop on the continent.
Funds such as Liontrust European Dynamic, SSGA SPDR MSCI Europe Industrials UCITS ETF and Wellington Strategic European Equity stood out for their consistent performance through varying interest rate environments and regional headwinds.
These strategies often focused on mid-cap companies or cyclical sectors with pricing power, allowing them to navigate periods of slower growth and political uncertainty.
Only a handful of UK equity funds made the top quartile in both five-year periods, reflecting the broader underperformance of the UK market relative to global peers. BNY Mellon UK Income, Man Income and Artemis Income achieved this, through a focus on dividend-paying companies and disciplined valuation strategies.
Their success highlights the resilience of UK equity income strategies, which often focus on high-quality, cash-generative companies with stable dividends. This approach can provide a buffer during downturns and delivered steady returns through both low-rate and inflationary environments as investors tried to make their cash work harder.