Investment Clubs Manual018 - Assuming that the response has...

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Unformatted text preview: Assuming that the response has been sufficient, fix a date and time for the club’s first proper or’inaugural’ meeting. Nominate someone to arrange a venue from those places which have been suggested. Joining an existing investment club PIC receives many enquiries from individuals who wish to join an existing investment club. We are often asked for contact addresses of clubs in their area. This cannot be provided because most clubs want to preserve their privacy. The essence of a club is that the members know at least one other member. They feel comfortable in the company of friends and, because they are investing their savings, they are wary of 'strangers'. Starting your own club I5 surprisingly easy. As we have explained, you only need a couple of friends to help you get the idea off the ground and most importantly, you will be investing with people you know and trust. For those who genuinely do not know enough people to form a club PIC, provides a service called Club Connections on the website. . The unit valuation system This is the magic formula used so that every member can instantly see the club’s financial position. And, like all magic, it's easy to understand once you know how it is done. The method is described in detail in Part Two of this Manual in the section dealing with keeping the club's accounts. We are mentioning it now because a quick explanation at the preliminary meeting will enable all prospective members, even the most numerically challenged, to grasp the system. Of course your club can adopt whichever system of accounting it chooses but PiC recommends the Unit Valuation System (UVS) because it is straight forward and easy to understand. The system operates on a simple formula: A Is the value of the club’s net assets. To get there you add the current value of the shares owned by the club and the cash in the bank, then take away the liabilities, i.e. what the club owes, for example bank charges. 0 be .2 i “° ”W ProSharelnvestmentClubTHE MANUAL ...
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