The net asset value of the fund and that of the unit or units shall be determined pursuant to the procedure prescribed by IFA, hereby Procedure and the provisions of the Fund Rules. Procedure of LHV Asset Management for determining the net asset value of the funds Valid from: 01.01.2017
The Management Company shall select the principles and methods for determining the net asset value of the assets proceeding from the general legitimate interests of the unit-holders, the type and the investment policy of the Fund, the procedure for redemption of units and the principles of possible alternative valuation methods and their reliability.
If determining the value of the Fund Assets pursuant to the methods stipulated in this Procedure does not guarantee a reliable calculation of fair value, the Management Company may, in exceptional cases, determine the Fair Value of the assets differently than provided in the procedure, proceeding from the justified interests of the fund's unit-holders and the best skills and knowledge of the Management Company. The Fair Value calculated in such manner shall be approved by the Management Board of the Management Company with its reasoned decision. Exceptional cases shall mean, for example, situations where trading securities has been suspended on regulated markets or the Management Company finds that the asset's last market price does not reflect its actual value and thus it is not possible to determine the Fair Value of assets in a reliable manner.
The net asset value (NAV) of the Fund’s assets is determined by calculating the value of the Fund’s asset, from which the liabilities of the Fund are subtracted.
The net asset value of the unit is calculated by dividing the net asset value of the Fund by the number of all units issued and not redeemed by the time of the calculation. If the Fund has several classes of units, the net asset values of unit of different types are obtained by dividing the net asset value of the units of the respective class by the number of all units issued and not redeemed by the time of the calculation, allowing for the nominal values of the units of different types.
The net asset value of the fund’s assets is calculated in the base currency stipulated in the Fund rules of the respective Fund. The net asset value of the fund’s unit is calculated in the nominal value of the respective unit.
If the net asset value of the Fund and/or the units of the respective class differ from the previous calculated net asset value by more than 1% in case of an equity fund, mixed fund or fund of funds or by more than 0.5% in case of bond fund, the adequacy of the data used at the calculation of the net asset value shall be reviewed and a recalculation shall be made in order to avoid mistakes in determining the net asset value.
The net asset value of a unit shall be specified at the accuracy stipulated in Fund rules of the Fund, which is usually four or five decimal places.
The net asset value of the Fund Assets and the units of the respective class shall be calculated for each Banking Day, unless another frequency has been stipulated for calculating the net asset value in the Fund rules of the respective Fund.
The net asset value of the Fund Assets and of units shall be determined at the time specified in the prospectus and published on the web page of the Management Company immediately after it has been determined.
If an event occurs or information becomes known that in the best professional opinion of the Management Company has a significant impact on the net asset value of a unit and thereby damages the best interests of the fund or its unit-holders, the Management Company shall have the right to immediately annul the calculated net asset value of a unit and to calculate a new net asset value that corresponds to the prevailing circumstances.