Net Asset Value

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

AS AT DECEMBER 31
[IN MILLIONS OF CANADIAN DOLLARS, EXCEPT PER SHARE AMOUNTS] (UNAUDITED)
2019 2018
Assets    
Investments    
   Power Financial(1) 14,864 12,084
   Sagard Europe(2) 478 391
   Sagard Holdings(2)(3) 536 579
   Power Pacific(2)(3) 739 669
   Power Energy 1,075 924
   China AMC(4) 658 679
   Other investments 198 189
Cash and cash equivalents 386 403
Other assets  451 471
Total assets, at fair value 19,385 16,389
Liabilities and non-participating shares    
Debentures and other debt instruments 683 646
Other liabilities 651 452
Non-participating shares 960 962
Total liabilities and non-participating shares 2,294 2,060
Net asset value 17,091 14,329
   Per share 40.07 30.74

(1) As a result of Power Corporation's participation in Power Financial's substantial issuer bid in the second quarter of 2019, the number of shares held by the Corporation decreased by 9.1% or 42,436,370 from 467,839,296 to 425,402,926 (equity interest decreased from 65.5% to 64.1%). 
(2) The management companies of the investment funds are presented at their carrying value in accordance with IFRS.

(3) Includes cash and performance-related compensation payable related to the investment funds.
(4) Valued at carrying value in accordance with IFRS.

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 83.9% of total assets at fair value at December 31, 2019 (82.7% at December 31, 2018). 

The Corporation’s net asset value, presented on a look-through basis, where the investment in Power Financial is based on the Corporation’s share of Power Financial’s net asset value, was $19.2 billion or $44.98 per share at December 31, 2019 ($17.7 billion or $37.91 per share at December 31, 2018). The additional fair value adjustment of $2.1 billion ($3.3 billion at December 31, 2018) mainly relates to the Corporation’s share of its investment in Lifeco, IGM and Pargesa at market value. 

For more information on Power Financial's net asset value, click here to visit its website

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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