NAV (Net Asset Value)

NAV is the fund’s total assets minus liabilities, divided by the number of units in issue. For UK OEICs and unit trusts, the Authorised Corporate Director strikes a NAV once a day at a fixed valuation point (often noon UK time), and all subscriptions and redemptions placed before the dealing cut-off transact at that price. The FCA’s COLL rules govern how the price is calculated and disclosed. A high NAV is not ‘expensive’ and a low one is not ‘cheap’, the figure simply reflects how long the fund has been running and any distributions it has paid.