New Zealand Super Fund Returns 14.2% Despite Underweight US Tech

The result is a useful counterpoint to the assumption that matching the US tech index is the only route to strong returns: a large allocator chose to hold less of the trade that drove global gains and still posted a double-digit year. It matters for sovereign and pension funds weighing concentration risk against benchmark-tracking pressure. The open question is whether the diversification Townsend points to proves repeatable if US tech leadership persists, or whether the underweight becomes a drag in weaker years.