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Explanation on units
The value per unit changes every day due to changes in the value of the investments, so whenever a partner puts money in the club the number of units will be calculated based on the valuation date the club uses for that month. If members make different contributions of course they will own a different  number of units.
Linda


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-------- Original message --------
From: John Rice <rice.j1969@att.net>
Date:05/16/2015 1:55 PM (GMT-05:00)
To: The Club Cafe <club_cafe@bivio.com>
Cc:
Subject: [club_cafe] Explanation on units

Where can I get an explanation on how club units are calculated? I have two people who joined at the same time but have different returns. One contributes the same amount each month while the other contributes vary each month. The one who contributes the same amount each month is questioning why she has a different return than the other since they joined at the same time.

Thank you,
John

Hi John,

As Jack and Linda have pointed out, it is not only the amount contributed that determines the number of units someone owns. Since units change in value each day, it also depends on the price they purchase their units at.

It's just like purchasing shares of stock or a mutual fund. If I buy $100 worth when shares are worth $10, I will own more shares than if you buy $100 worth when shares are worth $20.

Here is a further discussion of units from our help page:

Unit Value

Hope that helps!

Laurie Frederiksen
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