KiwiSaver, Private Assets and the Future of NZX

Mosaic's submission to MBIE in response to its discussion paper on private assets in KiwiSaver included a note that "it is not entirely clear that KiwiSaver managers being encouraged to invest significantly in New Zealand private assets, particularly an investment in New Zealand firms early in their development, would necessarily be commensurate with the Government’s desire to encourage growth of NZX share listings by New Zealand companies".

It was interesting to note that ASIC's recent release of its paper entitled "Australia’s Evolving Capital Markets: A Discussion Paper on the Dynamics Between Public and Private Markets." included commentary that highlights this tension/dynamic playing out in the Aussie superannuation context.

Of further interest, and aligned with sentiments in our submission, was the reference to a significant proportion of Aussie super fund investments in private assets being international rather than domestic allocations.

These are potential "future-dated" issues in the NZ context, but helpful to stay abreast of as local discussions continue. Will look forward to how these discussions shape up once MBIE has digested the submissions on its paper.