Commentary
Why NAV per Share Is the Number to Watch
A pooled fund has one honest yardstick. Here is what net asset value per share measures, what it deliberately ignores, and why we report nothing else on the front page.
5 min readReiksgarde Capital
Every investor in Reiksgarde Capital sees the same number first: net asset value per share. Not total assets under management, not the rupiah value of their own holding, not a percentage return since they joined. One figure, published to the rupiah, that is identical for everyone. This primer explains why we chose that number as the fund's public face, and what it takes to keep it honest.
The short version is that a pooled fund moves for two very different reasons. The portfolio can gain or lose value, and investors can put money in or take it out. Total assets reflect both at once, which makes them a poor guide to whether the fund is doing its job. NAV per share is built to separate the two.
The rest of this note walks through the mechanics: how the share count is set, what happens to NAV on the day a contribution lands, why fees are deducted before the number is struck, and the two questions you should still ask that NAV per share cannot answer on its own.
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