NZ's $54B fund flags potential U.S. stock cooldown, doubles down on diversification

New Zealand’s Guardians of NZ Superannuation, which manages about NZ$54 billion, warned U.S. equities could cool after a long run even as the fund posted a 14.2% return to June 30 and grew to NZ$94.4 billion. The fund, ranked the world’s top-performing SWF earlier this year, also lowered its long-term equity return projection to 7.2% and reduced its active risk, emphasizing a diversified portfolio. Top holdings include Nvidia, Apple, Microsoft, Alphabet and Amazon, with the U.S. equity sleeve worth about NZ$31.7 billion. The fund, established in 2001 to ease future pension costs, expects its first withdrawals in 2054.