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💼 Net Asset Value (NAV) / Net Worth

💡 What is NAV?

Net Asset Value (NAV) is the total market valuation of your portfolio at a point in time \(t\). It answers: "How much is the portfolio worth right now?"

🧮 Formula

\[ \boxed{\mathrm{NAV}(t) = \mathrm{MV}(t) + \mathrm{Cash}(t) + \mathrm{InTransit}(t)} \]

Where:

\[ \mathrm{MV}(t)= \sum_{(a,b)\in S} \frac{q(a,b,t)}{qbq(a)} \cdot \operatorname{mark}(a,t) \cdot \mathrm{fx}(\mathrm{ccy}_{mark}, C^*, t) \]

and the cash of each broker, kept in the currencies it was recorded in and valued at the rate of \(t\):

\[ \mathrm{Cash}(t) = \sum_{b \in S} \sum_{c} N_{b,c}(t) \cdot \mathrm{fx}(c, C^*, t) \]

with \(N_{b,c}(t)\) the balance broker \(b\) holds in currency \(c\) on \(t\), scaled by the broker's ownership share, and \(\mathrm{fx}(c, C^*, t)\) the latest rate on or before \(t\) (\(1\) for \(c = C^*\)). Cash held in another currency therefore moves NAV when its exchange rate moves.

🔗 See Portfolio Engine — §5 Aggregation for full derivation.

🔗 Unified Price Resolver

The mark \(\operatorname{mark}(a,t)\) comes from the unified resolver:

  1. MARKET — same-day asset-system quote.
  2. TRADE_AVG — average same-day BUY/SELL/priced ADJUSTMENT observation.
  3. CARRIED — last observation before \(t\), carried forward (LOCF).
  4. MISSING — no observation on or before \(t\).

Marks remain in native currency until valuation, and so do cash balances, each in the currency it was recorded in; FX conversion happens at \(t\). WAC is never used for valuation. See Price Resolution.

📝 Example

Component Amount
Market Value of Assets €32,759
Cash Balance €631
In-Transit €0
\[ \mathrm{NAV} = 32\,759 + 631 + 0 = 33\,390 \text{ EUR} \]

⚖️ Key Distinctions

  • NAV vs Book Value: NAV = market value; Book = acquisition cost. Difference = unrealized gains.
  • NAV vs Period PnL: NAV = snapshot; Period PnL = flow-adjusted change over time.

⚠️ Data Quality

Valuation Source Confidence
MARKET_PRICE Full — real quote, exact or carried
LAST_TRADE_PRICE Partial — trade-origin resolver mark
MISSING None — excluded from NAV

estimated=True only applies to TRADE-origin marks. A stale carried MARKET quote is stale but not estimated.

Trade-origin valuations older than the 14-day grace period drive the “assets valued at cost / no market price for more than two weeks” warning as of the valuation date.