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.
(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 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.