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Investment Clubs Manual039 - 33 October 2008 Variation of...

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Unformatted text preview: 33 October 2008 Variation of proposed rules This Manual provides a set of rules which have stood the test of time, but it is up to each club to make variations to suit themselves, providing they step warily on matters which are crucial to lawful operation. Whether or not you make any changes to the rules and constitution suggested by PIC it is imperative that immediately after your club‘s inaugural meeting the club secretary or other designated member: I) sends your rules and constitution to PIC at ProShare Investment Clubs, 4th Floor, Bankside House, London EC3 4AF; and Ii) fills in details of the club and Its members on the National Register of Investment Club which is on www.ProShareClubs.co.uk. This will enable us to issue your club with your official PIC code, and each of its members with confidential passwords so that you can all access your online portfolio. Registratlon also means you will then be kept informed of any legislative changes and benefit from the many advantages of being an authorised PIC registered Investment club. A few variations which clubs may wish to consider follow: Internal brokerage Most quoted shares have a bid price and an offer price (the difference between buying and selling prices) and usually the figure used to establish the unit valuation is the mid-price - i.e. midway between the bid and the offer. For this reason the unit price which measures the value ofa member's holding is not completely accurate. This matters when it comes to paying out a member who wishes to cash In some or all of his/her unlts, resign, or when a member dies. It may be that the club will have to sell shares to make the payout and there will also be brokers’fees to pay. For this reason many clubs charge a small brokerage charge on any amount paid out (usually it Is around 2.5%).This amount Is charged whether or not shares have to be sold because it more accurately reflects the true value of the holding. ProShare Investment Club THE MANUAL ...
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