Key Takeaways
- • The Australian Securities and Investments Commission (ASIC) has reported "significant concerns" over how Australian superannuation funds, known as superfunds, value their unlisted assets.
- • ASIC's latest surveillance report on the superannuation sector describes valuation risk issues as "persistent," according to Private Equity International.
- • The regulator flagged overreliance by superfunds on information supplied by external managers when valuing unlisted holdings.
Summary
Australia's corporate regulator, the Australian Securities and Investments Commission (ASIC), has reported "significant concerns" regarding the valuation of unlisted assets held by Australian superannuation funds, according to Private Equity International.
In its latest surveillance report on the superannuation sector, ASIC found that valuation risk issues remain "persistent." The regulator highlighted a particular concern about superfunds placing overreliance on information provided by external managers when setting values for unlisted holdings, which typically include private equity, private credit, infrastructure and real estate.
The findings matter to allocators and fund managers because unlisted valuations drive reported returns, fee calculations and member balances. Weak valuation governance can obscure true performance and create risks for members if assets are marked inaccurately.
The primary source available for this summary is a limited preview of the Private Equity International article, and the full report's specific figures, fund names and remediation timelines are not available in the material reviewed.
In its latest surveillance report on the superannuation sector, ASIC found that valuation risk issues remain "persistent." The regulator highlighted a particular concern about superfunds placing overreliance on information provided by external managers when setting values for unlisted holdings, which typically include private equity, private credit, infrastructure and real estate.
The findings matter to allocators and fund managers because unlisted valuations drive reported returns, fee calculations and member balances. Weak valuation governance can obscure true performance and create risks for members if assets are marked inaccurately.
The primary source available for this summary is a limited preview of the Private Equity International article, and the full report's specific figures, fund names and remediation timelines are not available in the material reviewed.
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