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11. Net asset value (NAV)

The NAV is how the scheme's value is set per unit. The fund manager values the scheme. A staff member records the valuation, and a different person approves it.

Formula:

NAV per unit = (total assets − total liabilities) ÷ units outstanding

Units outstanding come from the unit register. So record and approve NAVs after the contributions for that date have been approved.

11.1 Record a valuation​

Who can do this: CSA, PA or FEO (Valuation roles).

  1. Sign in and open Investment schemes.
  2. Open the NAV tab.
  3. Select Record a valuation. The dialog is titled "Record the net asset value".
  4. Fill in:
    • Scheme.
    • Valuation date.
    • Source, for example "the fund manager's valuation report".
    • Total assets (₦).
    • Total liabilities (₦).
    • Notes.
  5. Select Save.

A negative NAV is rejected. If liabilities are more than assets, the NAV cannot be recorded.

Worked example (SCAFI)​

  • Total assets: ₦618,000.
  • Total liabilities: ₦6,000.
  • Net assets: ₦618,000 − ₦6,000 = ₦612,000.
  • Units outstanding: 600.
  • NAV per unit: ₦612,000 ÷ 600 = ₦1,020.

What happens next​

  • The valuation has status PENDING_APPROVAL.
  • The Finance Approver (FA) is notified.

11.2 Approve or reject a valuation​

Who can do this: a Finance Approver (FA). The approver cannot be the person who recorded it.

  1. Open the NAV tab.
  2. Check the figures against the valuation report and the custodian's statement.
  3. Select Approve or Reject.

Only one approved NAV can exist for each date.

What happens next​

  • On approval: the recorder is told the NAV. All active members are told the new price, in a message like "SCAFI net asset value: ₦1,020 per unit".
  • On rejection: the recorder is told.
  • From then on, new contributions and redemptions use the new NAV.

Valuation date, Scheme, Assets, Liabilities, Net assets, Units, NAV per unit, Decision, Status.

Common problems​

ProblemWhat to do
"Liabilities exceed assets"The NAV would be negative. Check the figures.
The NAV per unit shows the issue priceNo valuation has been approved yet.
The recorder cannot approveThis is the rule. Ask a different FA.