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 graphic design platform was in the spotlight last year after its US investor Franklin Templeton cut the value of its stake in Canva by more than half since buying in at a peak valuation of $US40 billion ($62 billion) in late 2021.

In 2022, several venture capital funds, including Australian venture capital heavyweight Blackbird, slashed their valuations of Canva by about 36 per cent to $US25.6 billion ($40 billion). In August this year, Canva added two new investors at a valuation of $39 billion.

Companies like Canva are seen as higher-risk assets, and the technology sector last year experienced a pullback from funds, as they slashed their valuations of private tech companies amid a collapse in publicly listed tech stocks.

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.

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On Monday, the Australian Prudential Regulation Authority (APRA) released the findings of its review into the governance practices of super funds invested in Canva.

While APRA broadly gave its nod of approval to the processes used by super funds to value Canva, the regulator said there was room for improvement in how super funds dealt with unlisted assets.

“APRA assessed the majority of registrable superannuation entity (RSE) licensees’ governance practices related to their valuation of Canva as appropriate,” it said in a letter to super funds on Monday.