Transformation and Variable net asset value: Difference between pages

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imported>Doug Williamson
(Create page. Sources: Linked pages.)
 
imported>Doug Williamson
(Add Floating Net Asset Value alternative name. Source: John Grout's blog 28 July 2014: 'US money fund rules...' http://www.treasurers.org/node/10339)
 
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1.  ''Financial instruments - financial risks - risk management.''
(VNAV).   


The changing of one dimension of financial risk into another.
A variable net asset value per share money market fund.


For example, a short-term ''foreign exchange swap'' temporarily transforms short-term borrowings - or deposits - from one currency into another.
A money market fund which uses a mark to market basis to value some of its underlying portfolio of money market instruments.


Other examples of this kind of transformation include ''interest rate transformation'' and ''maturity transformation.''


This results in a degree of variability in the investment values calculated and reported, as the market values of the underlying investments change.


2. ''Change management - structural change.''
This method of accounting is contrasted with using an amortised cost basis of accounting for all of the investments, which is what Constant net asset value (CNAV) funds do.


Substantial changes expected to be long-term.


In this sense, transformation is usually planned for, and expected to be beneficial.
Also sometimes known as 'FNAV', Floating Net Asset Value.
 
Examples include ''business transformation'' and ''treasury transformation''.
 
 
3.  ''Working effectively with others.''
 
Fundamental and positive shifts in people's habitual ways of doing things.
 
For example, in ''transformational coaching.''
 
 
4.  ''Financial maths.''
 
The systematic conversion of one item or distribution into another.
 
For example, transforming between a ''normal distribution'' and a ''standardised normal distribution''.




== See also ==
== See also ==
* [[Borrowing]]
* [[Mark to market basis]]
* [[Business transformation]]
* [[Amortised cost]]
*[[Collateral transformation]]
* [[Money management]]
* [[Currency]]
* [[Money market fund]]
* [[Deposit]]
* [[Constant net asset value]]
* [[Finance transformation]]
* [[Financial instrument]]
* [[Financial risk]]
* [[Foreign exchange swap]]
* [[Interest rate transformation]]
* [[Maturity transformation]]
* [[Normal distribution]]
* [[Risk management]]
* [[Short term]]
* [[Standardised normal distribution]]
* [[Transformational coaching]]
* [[Treasury transformation]]


[[Category:The_business_context]]
[[Category:Cash_Management]]
[[Category:Identify_and_assess_risks]]
[[Category:Short-Term_Liquidity]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]
[[Category:Treasury_operations_infrastructure]]

Revision as of 17:08, 22 August 2014

(VNAV).

A variable net asset value per share money market fund.

A money market fund which uses a mark to market basis to value some of its underlying portfolio of money market instruments.


This results in a degree of variability in the investment values calculated and reported, as the market values of the underlying investments change.

This method of accounting is contrasted with using an amortised cost basis of accounting for all of the investments, which is what Constant net asset value (CNAV) funds do.


Also sometimes known as 'FNAV', Floating Net Asset Value.


See also

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