Purpose
UVS is a time weighted performance metric that is used by investment clubs to apportion ownership between investment club members. It enables club members to make flexible monthly contributions (subscriptions) and withdrawals through the process of purchasing and cancelling units. As a performance metric the unit valuation system strength lies in the ability to apportion ownership at any point in time, as club members buy and sell units through making subscriptions and withdrawals. It is an effective means of reflecting changes between day to day investment performance, however it should not be used as a metric for comparing investment performance between for example two Investment Clubs.
When comparing performance money-weighted metrics, it is recommended that you use Internal Rate of Return calculations.
Read more about this topic: Unit Valuation System
Famous quotes containing the word purpose:
“I envy neither the heart nor the head of any legislator who has been born to an inheritance of privileges, who has behind him ages of education, dominion, civilization, and Christianity, if he stands opposed to the passage of a national education bill, whose purpose is to secure education to the children of those who were born under the shadow of institutions which made it a crime to read.”
—Frances Ellen Watkins Harper (1825–1911)
“As the purpose of comedy is to correct the vices of men, I see no reason why anyone should be exempt.”
—Molière [Jean Baptiste Poquelin] (1622–1673)
“The purpose of polite behavior is never virtuous. Deceit, surrender, and concealment: these are not virtues. The goal of the mannerly is comfort, per se.”
—June Jordan (b. 1939)