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.
