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 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) |
March 31, 2021 |
December 31, 2020 |
| Assets |
|
|
| Investments |
|
|
| Power Financial |
|
|
| Lifeco |
20,741 |
18,825 |
| IGM |
5,666 |
5,105 |
| GBL |
2,907 |
2,870 |
| Alternative and other investments |
|
|
| Sagard Holdings |
|
|
| Asset management companies(1) |
112 |
163 |
| Investments(2) |
1,846 |
1,135 |
| Power Sustainable |
|
|
| Asset management companies(1) |
15 |
8 |
| Power Pacific |
956 |
1,134 |
| Power Sustainable Energy |
610 |
730 |
| Other |
|
|
| Standalone businesses(3) |
1,369 |
1,351 |
| Other |
279 |
266 |
| China AMC(4) |
690 |
715 |
| Cash and cash equivalents |
1,315 |
1,226 |
| Other assets |
339 |
282 |
| Total assets, at fair value |
36,845 |
33,810 |
Liabilities and
non-participating shares |
|
|
| Debentures and other debt instruments |
982 |
1,006 |
| Other liabilities(5) |
991 |
1,067 |
Non-participating shares and
perpetual preferred shares |
3,785 |
3,786 |
Total liabilities and
non-participating shares |
5,758 |
5,859 |
| Net asset value |
31,087 |
27,951 |
| Per share |
45.94 |
41.27 |
(1) The management companies of the investment funds are presented at their carrying value in accordance with IFRS and are primarily composed of cash and net carried interest receivable.
(2) Includes the Corporation's investments in Portage I, Portage II, Wealthsimple and Koho, held by Power Financial.
(3) At March 31, 2021, the investment in Lion was valued based on the subscription price of US$10.00 per share for the private placement of common shares announced as part of the merger transaction with Northern Genesis Acquisition Corp. Subsequent to the completion of the merger on May 6, 2021, the investment in Lion increased to $1.2 billion, valued based on the market value of Lion at May 12, 2021, and including $150 million related to the fair value of its call rights, representing an increase of $0.52 per share.
(4) Valued at carrying value in accordance with IFRS.
(5) 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 87.0% of the total assets at fair value at March 31, 2021 (87.3% at December 31, 2020).
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.
