NAV formula
FA Fund Management calculates NAV as the total value of cash and securities in a fund's portfolio (Gross asset value, GAV) deducted by the fund’s fees and divided by the number of outstanding units. The number of outstanding units is based on the executed trade orders (pending subscriptions and redemptions aren't included).
To calculate net asset value per share class, the fund net asset value is multiplied by the fund class share, and the fund class share fees are deducted from the result:
Gross asset value (GAV)
Gross asset value of the fund or a share class is calculated based on the following items:
Market value of investments
Accrued interest on interest-bearing instruments, such as bonds
Accrued interest on cash accounts
Settled account balance (the balance calculated based on settled transactions)
Receivables from unsettled dividends, coupons and security sells
Liabilities from unsettled security purchases (deducted)
Accrued receivables from custom formulas.
Fund class share
In a fund with multiple share classes, the fund portfolio is divided between the share classes based on the previous unit price and the number of outstanding units.
The share of the fund portfolio belonging to share class is then calculated as:
where N is the number of share classes.
NAV calculation for PE funds
FA features an alternative way of NAV calculation mostly used by private equity funds. It is set up in FA Back.
NAV calculation for PE funds differs from the standard formula:
All share class-specific fees are taken since the beginning of the fund (not since the latest NAV calculation)
Fund class shares are calculated based on the number of units (not their previous unit price):
Equation 20.