NAV workflow and release controls
A good NAV process is an evidence chain from input cut-off through independent reconciliation, price validation, fee completeness, unit activity and formal release. Every step has an owner, reviewer, tolerance, escalation rule and completion evidence.
| Stage | Required action | Key control |
|---|---|---|
| Cycle | Lock valuation point, dealing and delivery dates | Dual-reviewed calendar |
| Inputs | Positions, cash, trades, prices, FX, fees and units | Source completeness and late-input log |
| Reconciliation | Positions, cash, trades and units | Classify breaks by nature, age and impact |
| Valuation | Apply price hierarchy and models | Challenge and approve non-standard prices |
| Close | Income, expenses, tax and corporate actions | Accrual register and cut-off testing |
| Calculation | Assets less liabilities by class/series | Reperformance and movement analysis |
| Approval | Clear checklist and exceptions | Maker-checker separation |
| Release | Send approved output and lock version | Final control-total check and transmission record |
Review total NAV, NAV per unit, units and return together. Explain movement through portfolio return, cash flow, fees and FX. Treat manual entries, stale breaks, non-standard prices and post-close adjustments as high-risk items.
Release only after critical reconciliations, price exceptions, dealing cut-off, fees, unit roll-forward and independent reperformance are complete. A carried exception needs an impact assessment, owner and clearance date.
Common failures: accepting a custodian NAV as independent review; checking only NAV per unit; approving an ambiguous file version; overwriting the released pack.