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 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)
March 31, 2020 December 31, 2019
Assets    
Investments    
   Power Financial(1)    
     Lifeco 15,078 20,630
     IGM 3,454 5,515
     Parjointco 2,218 2,541
     Other investments 328 330
   Sagard Holdings(2)(3) 510 536
   Sagard Europe(2) 551 478
   Power Pacific(2)(3) 710 739
   Power Energy 1,112 1,075
   China AMC(4) 703 658
   Other investments 196 198
Cash and cash equivalents 1,381 1,407
Other assets  383 388
Total assets, at fair value 26,624 34,495
Liabilities and non-participating shares    
Debentures and other debt instruments 1,023 933
Other liabilities 995 1,075
Non-participating shares and perpetual preferred shares 3,789 3,790
Total liabilities and non-participating shares 5,807 5,798
Non-controlling interests - 9,514
  5,807 15,312
Net asset value 20,817 19,183
   Per share 30.79 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) 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 86.8% of total assets at fair value at March 31, 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.

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