New Zealand's sovereign wealth fund, the New Zealand Superannuation Fund, has been named the world's best-performing major sovereign wealth fund after delivering a 14% return for the year ending June 30. The fund, which manages approximately NZ$76.5 billion (US$47 billion), achieved this result despite maintaining an underweight position in US technology stocks that drove much of the global market rally.

Chief executive Matt Whineray said the fund's diversified portfolio and long-term horizon allowed it to navigate volatile markets effectively. The fund's reference portfolio returned 11.7%, meaning the active management added significant value. Whineray warned that equity markets face a potential pullback given current valuations and macroeconomic uncertainty.

The fund's performance places it ahead of peers such as Norway's Government Pension Fund Global and Singapore's GIC and Temasek over the same period. Whineray emphasized the importance of maintaining discipline and not chasing short-term trends, particularly in concentrated tech rallies.