Mansard
Operations note
N-26-07
Who checks the NAV?
Every evening at 18:00, a number is struck for each fund. Here is everything that happens before it reaches you, and who signs at each step.
Nadia Haddad
5 min
Every working day at 18:00, each of our five funds is given a price: its net asset value, or NAV. You see one number. Behind it are three people, two independent checks and a reconciliation with the depositary.
17:35, Paris closes
When Euronext closes, the fund administrator collects the closing prices of every holding, the exchange rates and the accrued interest on the bonds. Their calculation of the NAV reaches the second floor a little before six.
18:00, the first check
Romain recalculates the NAV line by line. Any difference above one basis point is investigated before anything else happens. Prices that look stale or unusual are challenged with the administrator.
18:40, the second check
Marion, on the third floor, makes an independent check of the result and of the fund’s limits. She reports to the risk committee, not to the people who manage the money. If she does not sign, the NAV is not published.
19:30, publication
Karim reconciles the cash and positions with the depositary, and the NAV is published. It has been late once since 2011, by twelve minutes. It has been corrected once, in 2019, by 0.02%, and we wrote to every investor the same evening.
Nadia Haddad, Head of middle office
Past performance is not a reliable indicator of future results. This letter expresses the views of its author at the date of writing and is not investment advice.
