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.

September 30, 2019 December 31, 2018
   Power Financial(1) 13,068 12,084
   Other subsidiaries 984 963
   Sagard Investment Funds(2)(3) 1,654 1,600
   China AMC(4) 647 679
   Other investments 194 189
Cash and cash equivalents 495 403
Other assets  440 471
Total assets, at fair value 17,482 16,389
Liabilities and non-participating shares    
Debentures 646 646
Other liabilities 500 452
Non-participating shares 961 962
Total liabilities and non-participating shares 2,107 2,060
Net asset value 15,375 14,329
   Per share 36.08 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) Includes cash and performance-related compensation payable related to the Sagard Investment Funds.
(3) The management companies of the Sagard Investment Funds are presented at their carrying value in accordance with IFRS.
(4) Valued at carrying value in accordance with IFRS.

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 82.9% of the total assets at fair value at September 30, 2019 (82.7% 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.

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