Shareholding Determination Guide
How Inovis Fund Share Percentage is Calculated
How Inovis Fund Share Percentage is Calculated
In Inovis Fund, shareholder equity is contributed through fortnightly deductions and optional one-time deposits. To ensure fairness, we use a share-based valuation model similar to how mutual funds operate.
Key Concept: Instead of tracking raw Kina deposits, we issue ownership shares. The value of each share increases as the fund grows.1. Track Fund Net Asset Value (NAV)
NAV = Total Assets – Liabilities
This is recalculated periodically or whenever deposits/changes occur.
2. Initial Setup
This is an example to enhance understanding
| Person | Deposit | Fund Value After Deposit | Share Price | Shares Allocated |
|---|---|---|---|---|
| A | 3,000 PGK | 3,000 PGK | 1.00 | 3,000 |
| B | 3,000 PGK | 6,000 PGK | 1.00 | 3,000 |
| C | 3,000 PGK | 9,000 PGK | 1.00 | 3,000 |
Each person now owns 33.33% of the fund (3,000 shares each out of 9,000).
3. Fund Growth Over Time
After 3 years, the fund grows to 18,000 PGK. The new NAV per share becomes:
NAV = 18,000 / 9,000 = 2.00 PGK
So each member's 3,000 shares are now worth 6,000 PGK.
4. A New Member Joins
Mark deposits 3,000 PGK when NAV is 2.00 PGK. He receives:
3,000 / 2.00 = 1,500 shares
| Person | Shares | Value @ 2.00 PGK |
|---|---|---|
| A | 3,000 | 6,000 PGK |
| B | 3,000 | 6,000 PGK |
| C | 3,000 | 6,000 PGK |
| Mark | 1,500 | 3,000 PGK |
| Total | 10,500 | 21,000 PGK |
Now:
- A, B, and C each own 28.57% of the fund (3,000 / 10,500)
- Mark owns 14.29% (1,500 / 10,500)
5. The Formula
- NAV per Share = Total Fund Value / Total Shares
- Shares Purchased = Deposit Amount / NAV per Share
- Ownership % = Shares Held / Total Shares
6. Why This Works
- Fairness: Early investors benefit from fund growth
- Transparency: Everyone sees how their share is calculated
- Scalability: Works with thousands of shareholders
- Compliance-ready: Easy to audit and report