The New Zealand Financial Markets Authority (FMA) published a report on how KiwiSaver providers are investing in private assets, finding that current exposure remains low but is expected to increase over the next three years. Where private assets are held in retail funds, they average less than 5 percent of total assets under management, and most providers told the FMA they plan to lift allocations in line with global growth in private markets. The survey found most providers generally follow international standards through independent valuers, recognised valuation methods and strong governance, but highlighted areas needing improvement as exposure grows. Key issues included infrequent valuations leading to outdated pricing and inconsistent investor outcomes, limited provider insight into inputs used by external valuers, conflicts of interest in related-party situations, and investor communications that are not always sufficiently clear about valuation approaches and risks. The FMA encouraged providers to consider out-of-cycle valuation triggers, strengthen oversight of third-party valuations, and improve disclosure to investors. The FMA will continue engaging with KiwiSaver providers and supervisors to support appropriate valuation standards across the sector.
New Zealand Financial Markets Authority 2026-04-15
New Zealand Financial Markets Authority finds KiwiSaver private assets average under 5% of AUM and urges stronger valuation oversight
The New Zealand Financial Markets Authority published a report on KiwiSaver providers’ investments in private assets, noting current exposures in retail funds average less than 5 percent of assets under management but are expected to rise. While most providers follow international valuation standards, the FMA identified weaknesses including infrequent valuations, limited oversight of external valuers, conflicts of interest in related-party situations, and unclear investor communications, and it encouraged stronger valuation governance and disclosure. The FMA will continue engaging with providers and supervisors to support appropriate valuation standards.