An ASFA’s study suggests compulsory super has boosted household savings by more than $500 billion since its inception. But what if super funds aren’t being completely transparent about where your money is invested?
Some super funds hold unlisted assets that may not be revalued frequently, meaning reported returns may not always reflect current market conditions – they could be worth less than they claim. And with the end of the financial year around the corner, now is the time to take a closer look at what’s really inside your super.
What are unlisted assets, and why do they matter?
Unlisted assets are investments like:
- Infrastructure (airports, toll roads)
- Commercial property (office towers, shopping centres)
- Private equity (startups, private companies)
While unlisted assets can provide diversification and potential long term growth, their lack of transparency and infrequent valuation can be problematic, unlike shares or ETFs, unlisted assets don’t have a live market price. Instead, they’re re-valued infrequently, and often by the fund itself or an external valuer. We’ve previously discussed how volatile times can create a perfect storm for super funds like hostplus, who invest in unlisted assets.
This means super funds can report stable or even positive returns on assets that may, in reality, be worth far less, especially given recent market volatility, like the sharemarket reaction to President Trump’s tariffs.
For example, a shopping centre or CBD office block owned by your super fund may not have been revalued recently and the super fund price does not reflect that similar properties could now be being sold at steep discounts.
Why this becomes a bigger problem near EOFY
Every June, super funds report their annual performance. This is what many Australians use to judge how their fund is performing – and how industry rankings are created.
Alongside this, Q2 2025 has been volatile and with APRA stating super funds must value their unlisted assets at least quarterly, these are due a re-valuation. Some super funds may delay valuing their assets during market turbulence, to maintain high prices and bolster their perceived returns.
The issue? Delayed write-downs can artificially inflate returns. So you might think your fund is doing great, when in reality, you’re carrying hidden losses. In doing so you’re also buying in units of these unlisted assets at an artificially high price, not benefitting from the ‘down’ markets, when share prices are essentially ‘on sale’.
If you were invested in a fund with only listed assets – your assets are valued daily and the true market value is reflected in your returns. That means, when the market falls – your returns will look worse – but you can buy more units at a cheaper rate, so when the market recovers you hold more assets.
How often are your super assets valued?
One of the biggest issues with unlisted assets is that they’re not valued daily, or even monthly in many cases. That means your super balance might not reflect what your investments are really worth.
Here’s a comparison:
| Asset Type | Valuation Frequency | Transparency | Notes |
| ETFs / Listed Shares | Daily (live market) | High | Priced every day by the market. Prices reflect current investor sentiment and economic conditions. |
| Bonds (via ETFs) | Daily | High | Priced through bond markets and ETF pricing mechanisms. |
| Listed Property (REITs) | Daily | High | Real-time market valuation of property trusts traded on the ASX. |
| Unlisted Property | Quarterly | Low | Valuations often lag real market movements. Can take months to reflect downturns. |
| Unlisted Infrastructure | Quarterly | Low | Assets like toll roads or airports can be difficult to revalue in real time. |
| Private Equity / VC | Quarterly to annually | Very low | Startups and private companies are notoriously hard to price accurately without recent exits. |
Why this matters: If your fund is holding a large amount of unlisted assets, your reported returns may appear smoother or better than reality, but those values can be misleading.
How this impacts you
Super funds using large allocations to unlisted assets may:
- Appear more stable (less volatility), but it’s an illusion
- Underperform in the long term, as unlisted assets are harder to sell and reallocate
- Delay losses, which means you’re not seeing the true picture of your retirement savings
And if markets fall or there’s a rush to withdraw funds (like during COVID), these assets become even harder to sell, potentially forcing the fund to lock redemptions or delay access to your own money.
What can you do?
Super funds are due to re-value their unlisted assets by 30 June. This could present an opportunity, if your fund hasn’t re-valued your assets and you believe they may be worth less in the current market.
1. Check your super fund’s asset mix
If a big portion is in unlisted infrastructure, property, or private equity, you may be exposed to hidden risks.
2. Understand how your returns are calculated
A high return number doesn’t mean much if it’s based on outdated or overvalued assets. When were your assets last valued?
3. Consider switching to a transparent, listed-asset fund
At Stockspot, our super product only use listed ETFs, which are:
- Valued daily
- Transparent
- Low-fee
- Easy to rebalance
This means your money is always invested based on real, live prices, not guesswork or stale valuations.
You deserve to know exactly what’s inside your super. If your fund is quietly holding risky unlisted assets, or overstating your returns, it could be costing you in retirement savings.
