NZ Super Fund posts 14% gain but warns of equity correction
New Zealand’s $54 billion sovereign wealth fund reported a 14.2% return for the year ending June 2026, ranking as the world’s top-performing fund. Despite this success, CEO Jo Townsend warned that recent U.S. equity outperformance is unsustainable and expects a reversion to the mean. The fund slightly lagged its passive benchmark due to underweighting in U.S. tech, prompting a reduction in long-term return forecasts to 7.2% and a lower active risk budget.