New Zealand's sovereign wealth fund has achieved a 14.2% annual return, ranking first globally, but its CEO warns that high returns in US equities are unsustainable.
Jo Townsend, CEO of the New Zealand Superannuation Fund, announced on Wednesday that the fund achieved a 14.2% return for the fiscal year ending June 30, 2026, with its size reaching NZD 94 billion (approximately USD 54.4 billion). The fund was rated as the world's best-performing sovereign wealth fund by analytics firm Global SWF. However, Townsend warned that U.S. equities have delivered returns close to double their annualized returns over the past 20 years, and a mean reversion is expected, suggesting that the era of high returns may be coming to an end. The fund has lowered its long-term expected annual return from 7.8% to 7.2% and reduced its active risk budget. Nicolai Tangen, CEO of Norway's sovereign wealth fund, expressed similar views last month.
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Source:华尔街见闻 · Source Link
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