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 the assets of the combined Power Financial and Power Corporation’s non-consolidated balance sheet less their net debt and preferred shares. The Corporation’s net asset value per share is presented on a look-through basis.
AS AT
[IN MILLIONS OF CANADIAN DOLLARS, EXCEPT PER SHARE AMOUNTS] (UNAUDITED) |
September 30, 2020 |
December 31, 2019 |
| Assets |
|
|
| Investments |
|
|
| Power Financial(1) |
|
|
| Lifeco |
16,139 |
20,630 |
| IGM |
4,516 |
5,515 |
| Parjointco(2) |
2,678 |
2,541 |
| Other Power Financial investments |
514 |
330 |
| Alternative and other investments |
|
|
| Sagard Holdings |
|
|
| Asset management companies(3) |
177 |
153 |
| Investments(4) |
709 |
587 |
| Power Sustainable Capital |
|
|
| Power Pacific |
977 |
739 |
| Power Energy |
735 |
645 |
| Other |
|
|
| Standalone businesses |
625 |
696 |
| Other |
165 |
198 |
| China AMC(5) |
709 |
658 |
| Cash and cash equivalents |
1,216 |
1,392 |
| Other assets |
351 |
360 |
| Total assets, at fair value |
29,511 |
34,444 |
| Liabilities and non-participating shares |
|
|
| Debentures and other debt instruments |
1,044 |
933 |
| Other liabilities(6) |
1,053 |
1,024 |
| Non-participating shares and perpetual preferred shares |
3,787 |
3,790 |
| Total liabilities and non-participating shares |
5,884 |
5,747 |
| Non-controlling interests |
- |
9,514 |
| |
5,884 |
15,261 |
| Net asset value |
23,627 |
19,183 |
| Per share |
34.94 |
44.98 |
(1) Investments held by Power Financial have been presented on a look-through basis at December 31, 2019; the corresponding adjustment representing the ownership not held by Power Corporation is included in non-controlling interests.
(2) As part of the Pargesa reorganization, Parjointco holds approximately 97% of Pargesa’s shares at September 30, 2020; the fair value of Parjointco at September 30, 2020 is based on the market value of GBL. At December 31, 2019, the fair value of Parjointco based on the market value of GBL was $3,032 million.
(3) The management companies of the investment funds are presented at their carrying value in accordance with IFRS.
(4) Includes investments in European private equity, formerly Sagard Europe.
(5) Valued at carrying value in accordance with IFRS.
(6) In accordance with IAS 12, Income taxes, no deferred tax liability is recognized with respect to temporary differences associated with investments in subsidiaries and jointly controlled corporations as the Corporation is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. If the Corporation were to dispose of an investment in a subsidiary or a jointly controlled corporation, income taxes payable on such disposition would be minimized through careful and prudent tax planning and structuring, as well as with the use of available tax attributes not otherwise recognized on the balance sheet, including tax losses, tax basis, safe income and foreign tax surplus associated with the subsidiary or jointly controlled corporation.
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 88.1% of total assets at fair value at September 30, 2020 (83.9% at December 31, 2019).
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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.
