Unit valuations

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richard@imutual
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Unit valuations

Post by richard@imutual » Thu Feb 26, 2015 6:11 pm

In common with most other investment clubs, we will be using the Unit Valuation System to determine the value of each member's holding in our club.

I really ought to have been doing this on a monthly basis since the club got underway, and won't bore you with excuses for why this hasn't happened :( But up until today we had only made one purchase - the shares in Share.com which were necessary in order to reduce dealing costs. So what I propose is to produce a first valuation based on the club's accounts prior to today's investments, and all payments into the club up to this week will be converted to units based on this valuation.

This weekend, I'll aim to give you all access to a screen which will show you your individual valuations, but the overall financial position this will be based on is as follows:
£1664.75Paid in*
1342.41Cash in share centre
77.04Cash in bank
40Cash in transit
203.50Share.com shares
1.80Share centre quarterly fee
£1664.75TOTAL
The £203.50 was the total cost of our purchase of shares in Share.com. The current value of our holding in Share.com is £185.

* £50 has been paid in by members who have not completed the joining process (i.e. The Share Centre have yet to confirm that they've received their proof of ID). These funds will not yet be converted to units

I'll post an update once the individual valuations are available, and then repeat this process on a monthly basis

Reply here with any questions in the meantime :)

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Re: Unit valuations

Post by kevinchess1 » Thu Feb 26, 2015 9:20 pm

The value of our Share.com shares is dropping
Should we be looking to sell?
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Re: Unit valuations

Post by garindan » Thu Feb 26, 2015 9:36 pm

kevinchess1 wrote:The value of our Share.com shares is dropping
Should we be looking to sell?

Actually they dropped more than the current price a while back but have risen back to 38p recently. We didn't really buy these as an investment to make money, rather as a go between for us to 'afford' cheaper share purchases whilst we are still a small club with limited input investment. Once we grow a bit bigger and can afford to invest in blocks of £750, rather than £525 we could look to sell these shares on. That's the reasoning behind the purchase anyhow. It worked out well for us today :thumbup:
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Re: Unit valuations

Post by AAAlphaThunder » Thu Feb 26, 2015 10:55 pm

garindan wrote:
kevinchess1 wrote:The value of our Share.com shares is dropping
Should we be looking to sell?

Actually they dropped more than the current price a while back but have risen back to 38p recently. We didn't really buy these as an investment to make money, rather as a go between for us to 'afford' cheaper share purchases whilst we are still a small club with limited input investment. Once we grow a bit bigger and can afford to invest in blocks of £750, rather than £525 we could look to sell these shares on. That's the reasoning behind the purchase anyhow. It worked out well for us today :thumbup:
Share.com shares in effect pay for themselves and with zero commission and zero stamp duty I would say it is good to keep hold of them.
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Re: Unit valuations

Post by timco » Fri Feb 27, 2015 12:22 pm

Not forgetting of course that Share PLC is also a dividend share last year giving 0.52p per share (Just over 1/2 a penny) which will give us another £2.50 back on last years values but as broker estimates are for a substantial rise in profits this year there could be a corresponding rise in divis.
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Re: Unit valuations

Post by richard@imutual » Sat Mar 07, 2015 2:08 pm

By way of an update on this...

Following the discussion about Payments by members yet to provide ID, I've been thinking about the easiest way to handle this and the regular unit valuations / allocations. In summary, here's what's happened and what will happen going forward:

In common with most clubs, the initial unit price for our share club is £1. To bring us up-to-date in the easiest fashion, all payments made into the club by verified members up to 25 February will be converted to units at £1 per unit.

You can view your payment / unit allocation history here. Please check it and let me know if you have any queries about your personal allocation.

At the end of each month, I will do the following:

1) Add up the assets of the club i.e. cash balances + current value of any investments held. Note: this will exclude any payments made into the club up to date but not yet converted to units.
2) Calculate a new unit price by dividing this asset total by the number of units currently allocated
3) All payments received by verified members since the previous allocation will then be converted to units at this new unit price

For example (figures below are made up):
  • - You and other members invested £1000 up to 25 February, and this has been converted of 1000 units.
    - In total, the club has allocated 1000 units giving it a total asset value of £1000 (all in cash)
    - In March, the club invests £500 in shares and keeps £500 in cash
    - Members invest a further £300 during March
    - At the end of March, our shares have risen in value to £700. The club assets now total £1200 (ignoring the extra £300 invested by members during the month)
    - We divide this asset value by the units currently issued (1000) to get a new unit price of £1.20
    - The £300 of new payments gets converted to units (£300 / £1.20 = 250 units)
Let me know if this doesn't make sense!

I'll be providing more reports to show other important statistics, such as the list of current and past club investments. :thumbup:

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Re: Unit valuations

Post by kevinchess1 » Sat Mar 07, 2015 3:10 pm

It would be easier if 'My unit page' had a total
rather than me having to add them up
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Re: Unit valuations

Post by richard@imutual » Sat Mar 07, 2015 3:31 pm

There will be a separate "totals" page soon. This one is intended to show your history line-by-line
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Re: Unit valuations

Post by pieman » Sat Mar 07, 2015 11:18 pm

Just wondering why i have a line that says:
''paid, unconfirmed'' ?
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Re: Unit valuations

Post by timco » Sat Mar 07, 2015 11:36 pm

pieman wrote:Just wondering why i have a line that says:
''paid, unconfirmed'' ?
Is this on your statement? If so it is because you have not hit the confirmed button. I have a lot of these as I have no way of actually confirming if any of the payments I have authorised have ever been received.

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