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) During the second quarter of 2019, as a result of Power Financial's participation in Lifeco's substantial issuer bid, the Corporation's equity interest in Lifeco decreased from 67.8% to 66.8%.
(2) Includes Power Financial's investments in Portag3, Portag3 II and Wealthsimple.
 

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 asset value at June 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.