NAV

The official value of the fund, the value of one share, and the fee arithmetic underneath both.

PennyWorks can help you compute NAV at every closing period. Have institutional-grade reports for your LPs, and a peace of mind that your fund performance & fees are accurately computed.

What you can answer with it

• What the fund is worth after fees, and what one share is worth.
• How that has moved since the last period, and whether the move was performance or capital.
• Which fees were charged, and what the incentive fee was struck against.

The headline numbers

Three numbers matter to you:

1. Performance of the fund for the period
2. NAV after accounting for all the fees
3. Flows, meaning net subscriptions minus redemptions

The timeline

PennyWorks can compute your fund’s NAV at the frequency that works for you: monthly, weekly, daily, or any other cadence that makes sense to you.

What sits behind a period

Every closed period carries the full set of figures the cards summarise: Gross Asset Value (GAV) and Net Asset Value (NAV) per share, shares outstanding, flows, each fee line, the incentive performance, the pre-incentive NAV and the high-water mark. This is what you work from when an administrator queries a fee or an investor asks how a share price was arrived at.

The previous period’s figures are carried alongside the current ones rather than looked up somewhere else, so a change you are asked to explain has both of its ends on the same row.

How the high-water mark works

An incentive fee applies only to gains above the prior peak. If the fund falls and then recovers, the climb back carries no incentive fee, because those gains were already charged for the first time they were earned.

The mark sits on the period record with the previous period’s value beside it, so the comparison the fee turns on is visible rather than implied. When an investor asks why a fee was charged in a period where the fund was still below its best-ever level, or why one was not, the answer is two figures on one row rather than a spreadsheet somebody has to rebuild.

This is the first thing to check when a period looks wrong. A fee struck against the wrong peak is not a rounding difference, and somebody has been charged it.

Related

• Portfolio, for the composition and attribution behind this period’s value.
• NAV and reporting, for what makes a NAV hard to get right in the first place.
• Shadow NAV, for what happens when your administrator computes this number independently and gets a different answer.