Frequently Asked Questions
What is the Unit Valuation System?
The Unit Valuation System was originally developed by Mutual Funds and Unit Trusts, as a means of determining fund performance in an environment were there are frequent cash contributions and withdrawals. It is now commonly used by Investment Clubs as it enables club members to make flexible monthly contributions (subscriptions) and withdrawals through the process of purchasing and cancelling units.
What is the nature of the software?
The software is an all-in-one MS Excel spreadsheet that follows the guide with examples of all the scenarios (club set-up, one-off contributions, dividends etc). The benefit of using a spreadsheet format is that you have much greater flexibility for taking the process forward and adding any additional reporting or functionality to suit your individual clubs requirements such PE, returns etc, assuming basic spreadsheet skills.
Will the software update stocks automatically?
No. This is a stand alone program where the club treasurer manually values the assets on the day of valuation, therefore allowing assets of all descriptions to be taken into account.
Can I add details such as P/E, Total Return, Avg. Return etc?
Yes. The flexibility of the spreadsheet format means adding extra details such as these is straightforward assuming basic spreadsheet kills.
Which currency is the software designed to operate in?
It is not currency specific but in it's initial form assumes all cash and assets are the same currency.
Can the spreadsheet handle multiple currency assets?
You should operate in the currency of the cash deposits (base currency) and convert the stock valuation back to base on each valuation. The spreadsheet format is the perfect platform to add a simple FX calculation to the valuation area. The guide principally explains the whole process and once you have this understanding, adding an extra calculation to the asset valuation area is very simple.
Can you split contributions received into separate 'buckets' such as social and investment accounts?
I like this idea, more clubs should do this. You're essentially holding a virtual account of cash for non-investment purposes. You can easily create a new cash area within the spreadsheet to track these cash amounts and include in the overall club account total.
Does the software produce a Balance Sheet and Profit & Loss account at year end, as well as individual members' valuation sheets on a monthly basis?
To try and cater for tax information we have a fairly generic method of collecting all club transactions which are then apportioned per member for their individual liabilities. This process will give you the P&L for YE but there isn't a specific balance sheet view. However, this could be easily constructed with the data available in the spreadsheet and therefore formatted as required
We already have an active investment club - can we use this software?
The guide does cover the situation where a club wishes to migrate to this method using just the basic info; holding per member, cash available and portfolio info. For a small additional fee, we can assist with this transfer assuming you send us the correct information so we can establish your starting point.
Can the software be passed between club treasurers?
Yes. The spreadsheet format means that it can easily be passed between treasurers. Just be sure to keep a track of the latest version.
Does your software allow for printing of individual reports?
These are unnecessary as the accounts should fit on one page and in my experience a complete picture of all members to all members is a better way to go - transparency.
What do I need to run the software?
The software is run on Microsoft Excel, so you will need Excel, or a compatable spreadsheet program, to run the software.
What is in the guide?
The 33 page guide explains the whole process in a step-by-step manner enabling you to understand and worth with the software program, and then take it further with you own customisation to suit your needs. The aim of the guide is allow you to operate your accounts with confidence
What do I need to run the guide?
The guide is complied in a pdf format, and you will need Adobe Reader to read it. This can be downloaded for free at : www.adobe.com
How do I contact you?
Please use the e-mail link on the 'Contact Us' page.
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