r/europe 2d ago

News World’s best performing sovereign wealth fund bets on Europe over US

https://www.ft.com/content/ba559f94-9e95-49f3-b9bc-831482c8bc79
226 Upvotes

11 comments sorted by

50

u/DryCloud9903 2d ago

"Their investment position centres on a view that European equities — measured by the Stoxx Europe 600 index — are currently priced below their “fair value”, while US stocks are priced above that level and at some point in the next decade will give up that premium"

39

u/TheoryOfDevolution Italy 2d ago

Brad Dunstan and Will Goodwin, co-chief investment officers at New Zealand’s NZ$76bn ($44bn) Super Fund

This fund is tiny and quite insignificant.

41

u/HighDeltaVee 2d ago

What's not insignificant is that the people running it have had the best returns on investment for the last 10 and 20 years.

They know what they're talking about and have a 2-decade track record, and they're switching out of US investments and into European ones.

9

u/TheGreatestOrator 2d ago

lol there are plenty of large hedge funds with better returns than them. Meanwhile, yeah US equities are up like 4X since Covid while Europe is not even half that. Obviously one side has lagged and therefore has potential

3

u/MmmIceCreamSoBAD 2d ago

That's a bit dramatic, they've seen an uptick 2.5% on EU equities and down 3.5% on US stocks

1

u/enda1 Rhône-Alpes (France) 1d ago

*knew. Past performance does not guarantee future returns. You’re delving into chartism there. Let’s see if their bet pays off

-2

u/dweeegs 2d ago

Yes it is. You need to amend what you said:

the people running it have had the best returns on investment for the last 10 and 20 years for a sovereign wealth fund

Go move to the US, rent a garage and say you’re making AI out of it, and you’ll have more money thrown at you than these guys manage. This is peanuts

13

u/castion5862 2d ago

I Don’t blame them good move. TRUMP is going to take over the federal reserve and the control of interest rates so the US can no longer be relied on

0

u/TheGreatestOrator 2d ago

He wants rates to go lower which would be good for equities…

2

u/kleinerChemiker Vienna (Austria) 2d ago

Paywall

1

u/international_swiss 2d ago

Well. Almost all fund houses have US underperforming in their long term capital market assumptions. So it’s not a surprise