Unitisation Question

[doug2500]

So in the process of year end stuff I topped up my ISA with cash from trading account, and did a unitisation because I class the two accounts separately.

I noticed that my ISA unit value since the start of the year has gone up very slightly, but the actual value is slightly less than '£ start of year + £ top ups'.

Have I got a mistake over the previous quarterly valuations and top ups, or does it mean that the underlying investments have done slightly better than flat (slight rise in unit value) while my timing at adding money (units) has been poor?

ACC units only.

Thanks,

Doug

[mc2fool]

does it mean that the underlying investments have done slightly better than flat (slight rise in unit value) while my timing at adding money (units) has been poor?

Exactly that. Unitisation removes the effects of cashflows (in and out) to give you a measure of the underlying performance. If you want to include the effects of cashflows then use the Excel formula XIRR.

[doug2500]

Thanks for the reassurance. I was fairly sure that was the case but just wanted to double check.

I do an annual XIRR on each account but keep a multiyear unitisation spreadsheet too. Too many ways to skin a cat.