When is a NAV not a NAV?

When is a NAV not a NAV?

A NAV is not a NAV when it is mixed-up with the legal wrangling that still surrounds the Weavering Capital collapse of March 2009. More than 10 years later the fallout from this case continues. It has required the Privy Council to rule on whether a fund’s NAV can be revised.

Maples report that the Privy Council has upheld the decisions of the lower courts that redemption payments to a Swedish bank made shortly prior to the collapse of the Weavering fund were voidable preferences that must be repaid.
 
In doing so Maples say that the Privy Council has revisited the question of whether a fund's net asset value (NAV), calculated in accordance with the fund's constitutional documents, can be revised. The Privy Council maintains that that, in certain limited circumstances, it can.

To read more on this story see the August issue of The NED.

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