How shareholding is calculated

1. The three calculations

Net Asset Value (NAV) is the value of fund assets less recognised liabilities. The share price and each member's position follow from that figure.

A new fund with no shares uses the configured founding price of K1.00. Once shares exist, the recorded NAV-per-share calculation applies.

2. Founding example

This simplified example ignores fees, timing differences and rounding. Three members each contribute K3,000 at a K1.00 founding price.

Member	Contribution	Price	Shares issued	Ownership
Member A	K3,000	K1.00	3,000	33.33%
Member B	K3,000	K1.00	3,000	33.33%
Member C	K3,000	K1.00	3,000	33.33%
Total	K9,000	—	9,000	100%

3. If the fund's net assets grow

Assume net assets later reach K18,000 while 9,000 shares remain in issue:

Growth is not assured. If net assets had fallen to K7,200, the same calculation would produce a K0.80 share price.

4. A new member joins at the current price

Mark contributes K3,000 when NAV per share is K2.00. He receives 1,500 shares. After recording the contribution, total net assets are K21,000 and 10,500 shares are in issue; ignoring transaction costs, the price remains K2.00.

Member	Shares	Value at K2.00	Ownership after contribution
Member A	3,000	K6,000	28.57%
Member B	3,000	K6,000	28.57%
Member C	3,000	K6,000	28.57%
Mark	1,500	K3,000	14.29%
Total	10,500	K21,000	100%

5. What the real calculation must account for

The effective valuation date and approved contribution date.
Recognised assets, impaired loans, cash, expenses and liabilities.
Share-quantity and currency rounding rules.
Any pending issue, cancellation, transfer or repurchase of shares.
An auditable NAV snapshot and share-ledger entry for each movement.