About the Performance NAV

You can use Performance NAV processing when you need the system to calculate an additional NAV on a monthy basis at an alternative pricing point to the normal NAV.  For example, you can calculate the Performance NAV on the last business day of the month at a close of business (COB) valuation point.  You can use this Performance NAV internally rather than release it to the market and use it to replace your existing daily process.

About the Performance NAV Workflow

When you calculate the Performance NAV, you use special entity pricing target sources to allow for the additional valuation point and market value calculations. You must load pricing data released from the vendors into these target sources. The STAR to PACE Batch process pushes holdings data to the Eagle PACE data warehouse using these prices to carry out those market value calculations, storing them under a new Pace source instance. 

The system uses the Alternate NAV microservice to perform the Performance NAV calculation. It can execute this service after completing the daily books at the end of the month, but the system has the flexibility to run this service on any given day. The process takes the difference between the summed-up market value from the Daily PACE source holdings (STARDIRECT) and the summed-up value from the Performance PACE source holdings (PERFNAV) and applies that difference to the end of day Total Net Assets. Using the adjusted Performance Total Net Assets (TNA), the end of day Shares Outstanding, and current day exchange rates, the system calculates the share class level NAVs and any associated multicurrency NAV.

You can use the Holdings report to view the Performance NAV sourced data to review the portfolio valuation which you maintain for auditing purposes. You can also use the Performance NAV history report to review NAV data for business operations. 

About the Performance NAV Calculation

The Performance NAV calculation uses Eagle PACE data warehouse data to determine the difference between daily STARDIRECT and STARPERF sourced holdings market value data:

STARDIRECT Market Value – STARPERF Market Value = Market Value Delta

When the entity is multi-class, the service uses the allocation percentages from daily activities to calculate the class specific market value movement:

Market Value Delta * Class Allocation Percentage = Class Specific Market Value Delta

It then adds the Market Value Delta to the daily accounting total net assets calculated for that effective date to determine the Performance TNA:

Daily Total Net Assets + Market_Value_Delta = Performance Total Net Assets

Next, the calculation divides the Performance TNA by the daily accounting Shares Outstanding for that effective date to determine Performance NAV Per Share:

Performance Total Net Assets / Daily Shares Outstanding = Performance NAV Per Share

Finally, if you set up an entity with a Multicurrency NAV Rule, the calculation divides the Performance NAV by the applicable current effective date FX Rates to determine the Performance Multicurrency NAVs.

Performance NAV Per Share / FX Rate = Performance Multicurrency NAV