Australia to Start Review of Pension Funds’ Unlisted Assets
- Regulator to launch review in first half of this year
- Government review had warned regulator over private valuations
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Australia’s pensions regulator will launch a review of asset valuations and liquidity management practices in the coming months, as funds in the A$3.6 trillion ($2.4 trillion) industry grow their holdings of unlisted assets and face scrutiny on the timeliness of valuing those securities.
The Australian Prudential Regulation Authority on Wednesday said pension fund managers must “ensure investment governance practices are sound, particularly in relation to asset valuation and liquidity management practices.” APRA’s inquiries will cover a cross section of large and mid-size funds with “material unlisted asset exposure,” according to the statement.