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.

March 31, 2020 December 31, 2019
   Lifeco 15,078 20,630
   IGM 3,454 5,515
   Parjointco 2,218 2,541
   Other(1) 328 330
Cash and cash equivalents 1,027 1,021
Other assets(2) 121 138
Total assets, at fair value 22,226 30,175
Liabilities and preferred shares    
Debentures 250 250
Other liabilities 295 625
Perpetual preferred shares 2,830 2,830
Total liabilities and preferred shares 3,375 3,705
Net asset value 18,851 26,470
   Per share 28.39 39.86

(1) Includes Power Financial’s investments in Portag3, Portag3 II, Wealthsimple and Koho.
(2) Includes $83 million of dividends declared in the first quarter by IGM and received by the Corporation on April 30, 2020 (same as at December 31, 2019).

In determining the fair value of assets, investments in subsidiaries, jointly controlled corporations 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 98.0% of the total assets at fair value at March 31, 2020 (98.4% at December 31, 2019).

The presentation of the investments in subsidiaries, jointly controlled corporations 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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