Unit Value

Definition of "Unit Value"

Used by special finance houses in Turkey, it is a sort of share-price index reflecting profit or loss developments in a given pool of participation deposits. It involves a week-by-week comparison of the total asset value (net worth) of a given pool, and changes as profit or loss is recorded to the pool. Weekly calculation and announcement of UV allows participation account holders conveniently to follow up the performance of the pool in which they have invested. By multiplying the weekly announced UV with the account value (a coefficient indicating the relative participation share of an individual account in a given pool of participation funds, written on the participation account certificate), an account holder is able to know the outstanding value of his participation account. The profit-and-loss participation deposit funds managed by the special finance houses are in the nature of open-ended mutual funds.