NAV Reconciliation

Learn how to review the nav or valuation of a fund, set up nav reconciliation templates, and raise and resolve queries with the fund accountant.

Define nav as net asset value, assets minus liabilities, unitized into the price. Administrators use inputs from custodians and prime brokers to apply agreed fee rates.

Verify that the fund's assets and liabilities are accurately recorded and that monthly performance reflects the true value. Recognize nav review as a critical month-end task with meaningful downstream effects.

Master nav reconciliation by verifying quantities, prices, and profit and loss. Confirm subscriptions and redemptions; verify fund accruals including management, performance, administration fees, and a two-way check.

Compare security quantities to the prime broker records to identify mismatches, and investigate causes such as unrecorded or multiple trades or stock dividends that affect the instrument's market value.

Compare instrument prices against broker records and explain how valuation cut-off times, time zones, and daily versus monthly liquidity create nav differences and potential p&l impacts.

Compare instrument p&l across nav and broker statements, detailing realized and unrealized gains, dividend events including short-position implications, then reconcile to prime broker, accounting for valuation points and currency rates.

Track monthly investor subscriptions and redemptions by reconciling the nav inflows and outflows with notices from the prime broker, ensuring cash movements match the fund's subscriptions and redemptions.

Review fund accruals, including management, performance, audit, administration, and accounting fees, noting fee rate, periodicity, and methodology. Recalculate fees against fund valuations to verify accuracy using a practical example.

Perform a two-way reconciliation of trades by comparing prime broker records with the fund accountant and the valuation pack to identify differences in quantities and missing or duplicated entries.

Create a nav reconciliation template to automate six checks—security quantity and price, pnl per security, accruals, and trades—pulling data from the nav pack and prime broker with instrument mapping.

Build a strong relationship with fund accountants to efficiently query findings, and structure clear, single-email inquiries with bullet points for precise resolutions.

Master nav reconciliation by reviewing six key checks, creating a simple nav recon template, and sending clear queries to fund accountants to verify the fund's monthly nav.