Australia’s financial regulator scrutinised how super funds put a value on unlisted tech play Canva, and found room for improvement.
The corporate regulator says super funds have struggled to keep pace with the fluctuating valuation of Australia’s biggest private technology company, Canva, adding that many were too slow to revalue their positions even as venture capital funds cut the company’s valuation.
The rapid fall in Canva’s valuation prompted the review from APRA on how super funds were managing their investments in technology. Notable super funds with stakes in Canva include Australian Super and Hostplus.On Monday, the Australian Prudential Regulation Authority released the findings of its review into the governance practices of super funds invested in Canva.
“APRA assessed the majority of registrable superannuation entity licensees’ governance practices related to their valuation of Canva as appropriate,” it said in a letter to super funds on Monday.APRA said in March that super funds needed to be much more proactive, revisiting the value of their holdings more frequently, and following a broader swath of issues in unlisted asset valuation practices flagged by the regulator as part of a review in late 2021.
“We observed examples of better practice by RSE licensees, particularly relating to querying the valuation approaches of appointed investment managers and reflecting valuation adjustments according to the specific circumstances and policies of the RSE licensee,” it said.
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