Net asset value

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Related to Net Asset Values: Net Asset Value Per Share

Net asset value (NAV)

The value of a fund's investments. For a mutual fund, the net asset value per share usually represents the fund's market price, subject to a possible sales or redemption charge. For a closed-end fund, the market price may vary significantly from the net asset value.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Net Asset Value

In stocks and businesses, an expression of the underlying value of the company. That is, it is a statement of the value of the company's assets minus the value of its liabilities. One way of thinking about the net asset value is that it is the underlying value of a company, not the value dictated by the supply and demand of shares or its market capitalization. It is also called the book value.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Net asset value (NAV).

The NAV is the dollar value of one share of a fund. It's calculated by totaling the value of all the fund's holdings plus money awaiting investment, subtracting operating expenses, and dividing by the number of outstanding shares.

A fund's NAV changes regularly, though day-to-day variations are usually small.

The NAV is the price per share an open-end mutual fund pays when you redeem, or sell back, your shares. With no-load mutual funds, the NAV and the offering price, or what you pay to buy a share, are the same. With front-load funds, the offering price is the sum of the NAV and the sales charge per share and is sometimes known as the maximum offering price (MOP).

The NAV of an exchange traded fund (ETF) or a closed-end mutual fund may be higher or lower than the market price of a share of the fund. With an ETF, though, the difference is usually quite small because of a unique mechanism that allows institutional investors to buy or redeem large blocks of shares at the NAV with in-kind baskets of the fund's stocks.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

net asset value

the asset value of a company to its ordinary shareholders. This consists of the BALANCE SHEET value of total assets (FIXED ASSETS plus CURRENT ASSETS) LESS CURRENT LIABILITIES, DEBENTURES, LOAN STOCK and PREFERENCE SHARES. These net assets can be divided by the number of ordinary shares to indicate the net asset value per share.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
At the time of termination, each ETF's property remaining after paying or providing for the relevant ETF's liabilities and obligations will be distributed on a pro rata basis among the ETF's unitholders based on the final net asset value ("Final NAV") per unit of the ETF that is held by such unitholders.
"Share repurchases may be a plus for REIT net asset values in the short term, but over time the resultant increase in leverage could impair credit quality," he said.
If anything, the record breaking level of M&A activity in 2006 showed that the public market has underestimated REIT net asset values. Experts say that while The Blackstone Group's $36 billion purchase of Equity Office Properties in November seemed like an eye popping price to pay, the private equity giant will likely be able to effectuate an arbitrage by dismantling and selling off the portfolio piecemeal at a profit over the next few months.
A net asset value (NAV) quote may therefore not reflect the "real" market price of a position.
Mr Stoddart was speaking after reporting interim results, including a seven per cent rise in net asset value to 846p.
One market consultant specializing in hedge funds identified at least 800 hedge funds, up from about 100 in 1987, and others cite far higher number.(1) Other privately published directories of hedge funds indicate the Soros group of funds alone has about $9 billion of capital and the Tiger group has $6.5 billion of capital (net asset value).
"Currently, with Home Properties' stock price at or below 90% of the midpoint of the company's published estimate of its net asset value range, re-purchasing shares is accretive and, we believe, will enhance future value for our shareholders." said Edward J.
According to William Morrill, managing director and CEO of Real Estate Securities at LaSalle Investment Management, "A property worth $100 million on Maui Street today would be trading on Wall Street at a 12 percent discount to net asset value (NAV).
Roye: [The law] generally requires every mutual fund and every selling dealer of fund shares to buy and sell the fund's shares at a price based on the current net asset value that is next computed after receipt of the purchase or sale order.
Under the Fund's current distribution policy, the Fund intends to pay a minimum annual distribution of 10% of the average net asset value of the Fund within a calendar year or an amount sufficient to satisfy the minimum distribution requirements of the Internal Revenue Code for regulated investment companies.