Investment chiefs at the world’s best performing sovereign wealth fund are betting that European stocks will outshine their transatlantic rivals over the coming decade, in a sign that some global asset owners are losing confidence in the long-term outlook for US equities. 

Brad Dunstan and Will Goodwin, co-chief investment officers at New Zealand’s NZ$76bn ($44bn) Super Fund, told the Financial Times in an interview that the European stock market was the fund’s largest “overweight” position versus its reference portfolio, as it takes tactical positions on markets it thinks will perform best.   

“Most recently, we have been short the US and long European equities?.?.?.?and that’s purely a view on equity valuations,” said Dunstan, adding that decisions to favour different markets were taken “on a 10-year view”.