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State a simplified record
For this original teaching bridge, opening residual value is 80, new contribution is 20, distributions are 15 and closing residual value is 90. All records share a defined basis; other movements are assumed absent.
Isolate the balancing valuation change
Closing value = opening value + contribution − distribution + valuation change. Therefore change = 90−80−20+15 = 5. The closing NAV increased by 10, but only 5 is the balancing valuation change under this model.
| Component | Amount |
|---|---|
| Opening residual | 80 |
| Contribution | +20 |
| Distribution | −15 |
| Balancing valuation change | +5 |
| Closing residual | 90 |
Add real categories when present
Fees, currency translation, transfers and other adjustments can need separate lines. Do not force an unexplained residual into investment performance merely because the simple bridge has only four inputs. Retain unresolved differences until their cause is known.
Avoid confusing a bridge with a realized return
The balancing change can include unrealized marks in this case. It is not a cash receipt or an annual return. A broader performance measure needs the capital bases, dates and definitions appropriate to its question.