SERVICES
NAV workflows with visible inputs, exceptions and approval.
Bring positions, cash, pricing, accruals, fees and reconciliations into one controlled close process.
Overview
Net asset value is the value of fund assets less liabilities, expressed at fund and often share-class level. A professional NAV process is not a single formula: it is a close cycle built on complete trades and positions, reconciled cash, approved prices, accounting entries, fee calculations, investor/share-class data, materiality rules and documented review.
NAV is especially frequent and operationally sensitive for hedge funds and open-ended products, while periodic NAV and valuation reporting also matter for private equity, private credit and real assets.
Why it matters
NAV errors usually originate upstream—missing trades, stale prices, unresolved cash breaks, incorrect expenses or fees, and incorrect investor data. Our approach therefore covers the complete control chain rather than treating NAV as a single calculation.
Common operating challenges
- Late or incomplete administrator and market-data inputs.
- Stale/missing prices or disputed valuation inputs.
- Unresolved trade, position and cash breaks.
- Complex management/performance fee and share-class calculations.
- Weak evidence of who reviewed material movements before release.
What we deliver
| Capability | What it covers |
|---|---|
| NAV control framework | Define cut-offs, required sources, tolerance, materiality and review evidence. |
| Population completeness | Validate positions, transactions, cash and pricing populations. |
| Reconciliation | Resolve or escalate breaks before they feed the close. |
| Fee / accrual checks | Validate agreed management/performance fees and material expenses. |
| Pricing exception workflow | Route missing, stale or challenged prices for authorised review. |
| NAV oversight pack | Produce manager-side movement analysis and release support without necessarily reconstructing every official book. |
Our role can be configured around a defined operating mandate: a recurring managed service, a technology-enabled client workflow, or a co-sourced model in which execution and review are split between Kelton, the client and appointed providers.
Inputs, workflow and outputs
Typical inputs
- Position and transaction files
- Cash statements
- Pricing / FX sources
- Administrator NAV package or trial balance
- Fee and expense schedules
- Share-class / investor data
- Approved private-asset valuation inputs
Controlled workflow
| Step | Activity | What happens |
|---|---|---|
| 1 | Set cut-off | Confirm source list, delivery status and valuation point. |
| 2 | Validate populations | Check completeness, duplicates and stale items. |
| 3 | Reconcile | Resolve or escalate cash, position and trade breaks. |
| 4 | Review prices and accounting | Apply approved tolerance, reasonableness and fee tests. |
| 5 | Analyse movement | Explain material P&L, exposure and NAV changes. |
| 6 | Approve / hand off | Create an exception log, review checklist and evidence for authorised release. |
Typical outputs
- NAV review dashboard
- Break / tolerance report
- Price exception list
- Fee and accrual validation
- NAV movement analysis
- Release checklist and evidence pack
Controls and review
The workflow is designed so that automation does not obscure responsibility. Routine processing can be standardised; exceptions, material judgements and formal approvals remain visible and attributable.
- Materiality and tolerance thresholds.
- Four-eye maker/checker review.
- Approved price-source hierarchy and override approval.
- Cut-off monitoring and missing-source alerts.
- Immutable review evidence after authorised sign-off.
Responsibility boundary
We support NAV preparation, review and oversight workflows. Official NAV determination, formal valuation decisions and regulated fund-administrator duties remain with the appointed administrator, client and other authorised parties as applicable.
Technology & expertise
Our operating model combines specialist knowledge with controlled technology. Domain experts define the rules, review logic and exception criteria; the technology layer makes the workflow repeatable, traceable and scalable.
Technology
- Multi-source file/API ingestion.
- Completeness, duplicate and tolerance testing.
- NAV/P&L movement analytics.
- Rules for fee and share-class checks.
- Exception routing and human approval.
Expertise
- Fund-accounting and NAV close experience.
- Hedge-fund PB/custodian operating knowledge.
- Valuation-support knowledge for less liquid assets.
- Review checklists designed by domain specialists.
Expert knowledge is converted into controlled rules, SOPs, checklists, validation tests and exception criteria so that the operating standard is embedded in the workflow rather than dependent on one individual.
Delivery models
| Model | How it works |
|---|---|
| Managed Operations | We execute the agreed recurring workflow. Client and appointed-provider approvals remain explicit. |
| Technology Enablement | We implement the data, workflow and control layer for the client team to operate. |
| Hybrid / Co-sourced | Execution and review are shared through a documented responsibility and escalation model. |
| Transition & Implementation | We mobilise the workflow during a launch, provider change or target-operating-model transition. |
How the service changes by client or strategy
| Client / structure | Operating emphasis |
|---|---|
| Hedge Funds | Daily/weekly/monthly closes, performance fees, derivatives and multiple PBs increase operational intensity. |
| Open-ended Alternatives | Dealing cycles connect NAV directly to subscription/redemption processing. |
| Private Markets | NAV is less frequent but valuation evidence, capital activity and entity structures increase judgement. |
Frequently asked questions
Do you need to rebuild the administrator’s NAV?
Not necessarily. Kelton can support targeted oversight using independent sources, reasonableness checks and exception analysis.
What makes a NAV review institutional-grade?
Defined inputs, independent reconciliations, tolerance/materiality rules, documented ownership, exceptions and authorised release evidence.
Can this support daily NAV?
The operating architecture can support high-frequency cycles if source timeliness, system access, cut-offs and review responsibilities are suitable.
Discuss NAV Calculation & Oversight
Start with one workflow, one operating issue or one provider transition. We will map the current process, responsibility boundaries, required data and a practical first engagement.