Net Asset Value

Net asset value represents management’s estimate of the fair value of the common shareholders’ equity of the Corporation. Net asset value is the fair value of Power Financial’s non-consolidated assets less its net debt and preferred shares.

September 30, 2019 December 31, 2018
   Lifeco(1) 19,730 18,868
   IGM 5,565 4,590
   Parjointco 2,396 2,308
   Other(2) 324 274
Cash and cash equivalents 1,042 1,025
Other assets 133 115
Total assets, at fair value 29,190 27,180
Liabilities and preferred shares    
Debentures 250 250
Other liabilities 623 561
Perpetual preferred shares 2,830 2,830
Total liabilities and preferred shares 3,703 3,641
Net asset value 25,487 23,539
   Per share 38.38 32.96

(1) As a result of Power Financial's participation in Lifeco's substantial issuer bid in the second quarter of 2019, the number of shares held by the Corporation decreased by 7.4% or 49,318,032 from 669,568,064 to 620,250,032 (equity interest decreased from 67.8% to 66.8%).
(2) Includes Power Financial's investments in Portag3, Portag3 II, Wealthsimple and Koho.

In determining the fair value of assets, investments in subsidiaries and associates are adjusted to fair value as follows:

  • Investments in publicly traded companies are valued at their market value, measured as the closing share price on the reporting date;
  • Investments in private entities are valued at fair value based on management’s estimate using consistently applied valuation models either based on a valuation multiple or discounted cash flows. Certain valuations are prepared by external valuators or subject to review by external valuators. Market-comparable transactions are generally used to corroborate the estimated fair value. The value of investments in private entities is presented net of any management incentives;
  • Investments in investment funds are valued at the fair value reported by the fund which is net of carried interest or other incentives.

Investments measured at market value and cash represent 98.4% of the total assets at fair value at September 30, 2019 (98.6% at December 31, 2018).

The presentation of the investments in subsidiaries and associates at fair value is not in accordance with IFRS; net asset value is a non-IFRS financial measure. Refer to the "Non-IFRS Measures and Presentation" section of the Corporation's most recent Management's Discussion and Analysis for the definition of non-IFRS financial measures and their reconciliation with IFRS financial measures.

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