The 20-year club: Sustained excellence in funds management

As a huge sports fan, I, like everyone else, have my favourite players. AFL (apologies to rugby fans), NFL, NBA/NBL, F1, Soccer – you name it, I have a favourite.

If you’re lucky, your favourite players manage to avoid devastating injuries and build longstanding careers. But even then, around a decade is typically the span of elite athletic performance.

Every now and then, however, a star player comes along who manages to rack up games, seasons, and even decades. I’m talking about the LeBron James’ of the world. LeBron has been operating at an elite level since 2003 and is about to enter his 23rd NBA season – remarkable!

(Honourable mentions go to Tom Brady, Serena Williams, Roger Federer, Rafael Nadal, Tiger Woods, Cristiano Ronaldo, Lionel Messi - all of whom clocked up 20 years of elite performance.)

What on earth does this have to do with markets, I hear you ask? Bear with me. LeBron’s longevity got me wondering – which Aussie funds have been around for 20 years plus? Before we take a look at the list, however, let’s establish why this even matters.

Sustained excellence

Above all else, you simply don’t make it to 20 years in any field unless you’re pretty damn good at what you do. No one lasts simply because they exist. The world is too competitive a place, and if there is money to be made, someone will find a way to do it better or cheaper – or both.

No. To last 20 years, you have to be excellent, and that excellence must be sustained, perhaps not 100% of the time, but certainly most of it.

Other features that you might need to last 20 years include;

1. Relentless work ethic

Elite performers are distinguished by their unwavering commitment to hard work. They embrace rigorous training, meticulous attention to detail, and are willing to make personal sacrifices to achieve their goals. This relentless dedication is a cornerstone of sustained success.

2. Mental toughness

Mental toughness encompasses resilience, confidence, and the ability to maintain focus under pressure. It's the psychological edge that allows people to persevere through challenges and maintain high performance levels consistently.

3. Adaptability and growth mindset

Long-term success often hinges on the ability to adapt and embrace change. High performers view challenges as opportunities for growth, continuously seeking ways to improve and evolve in their respective fields.

4. Goal-oriented focus

Setting clear, measurable goals provides direction and motivation. Elite performers establish both short-term and long-term objectives, using them as benchmarks to track progress and maintain focus on their overarching mission.

5. Discipline and consistency

Consistency in daily habits and routines is vital. Elite performers demonstrate discipline in their preparation, practice, and execution, ensuring that high standards are met consistently over time.

The list

From the data we have access to (which may not be exhaustive), 74 funds have been in operation since 1 July 2005 - the cut-off date for a two-decade tenure. There were also a couple of LICs and ETFs that were in the mix, but I was only interested in managed funds. 

Insights from managers

Over the coming weeks, we'll be featuring conversations with a handful of managers representing funds from the list above. 

They will be sharing how their philosophy and process has (or hasn't) changed over the years, the most pivotal moments for their funds, the secrets to longevity, how they deal with market stress, key lessons learned, and what is is about markets that is still getting them out of bed to this day.