The net asset value (NAV) in the portfolio system represents the value of a fund. The Official NAV in portfolio management systems is a value based on information from the legal accounting, which is usually available with a delay of 1 - 2 days, in some cases even a month.
Since the NAV in the system is used by asset managers to evaluate the positions in the portfolio and the corresponding risk, it becomes increasingly important to have the most up-to-date NAV data available in the system. One method that has been developed to incorporate the most current NAV estimate is to predict the NAV using current market prices and all types of projected cash flows between the last official NAV date and the current date.
As this concept becomes more and more important for our clients, especially for compliance calculations, we have integrated into our portfolio management system PATRONAS OPUS the possibility to define for each fund which approach is used as baseline. This allows asset managers to manage the portfolio much more closely to the market, thus enabling the most efficient portfolio management possible.