uInvest Web Application

For Investment Analysis...

Go to uInvest, input your investment variables, review the results and manage your investment.

uInvest provides the capacity to easily analyze the performance of any investment. It applies basic input variables to build an investment analysis by year. Investment performance is converted to equivalent current year values enabling the actual investment performance to be determined. By developing forecast projections it is possible to identify when investment performance spikes or dips. This acts as a strong buy / sell indicator. By following a sell at the spikes and buy at the dips strategy overall return can be enhanced. uInvest allows you to:

• Determine the apparent and actual return achieved by an investment over time.
• Project the value of an investment in future and current equivalent terms.
• Apply what if scenarios to test the impact of investment decisions.
• Compare the performance of alternative investments.
• Consider the impact of taxation on investments.
• Plot investment parameters over time.
• Improve investment buy / sell / hold decisions.
• Identify when investment performance varies from projected goals and take actions accordingly.

Analysis and comparison of all investment types and combinations is available including:

• Equity / Share investments.
• Property / Real Estate investments.
• Cash investments.
• Retirement funds.
• Recurring investments.
• Capital Growth and Income investments.

The ability to consider all investment types allows the performance of each investment to be assessed, forecast, monitored and reviewed. This enables informed buy / sell / hold decisions to be made.

uInvest and supporting documentation are not investment advice and should not be applied in isolation. As with all forecasting methodologies the results are only as good as the input provided.

Developing a benchmark for investment performance provides a powerful tool to determine optimum investment timing. A regular review (monthly, annually) of current investment performance against your projections allows buying and selling opportunities to be identified. For example you purchase $10,000 of shares and build an analysis for this investment. You consider the long term Capital Growth of these shares to be 5% pa resulting in an end of Year 1 projected Asset Value of $10,500 (5% Capital Growth). One year after purchase you review your investment. If at this time the actual asset value (share price) is substantially higher than $10,500 a sell opportunity is indicated. If at this time the actual asset value (share price) is substantially lower than $10,500 a buy opportunity is indicated. However these actions should only be considered if you are comfortable with the input variables you applied in the investment analysis and believe that over the long term they remain valid. Also if you sell you need to have a better performing investment in which to place your funds. Or if you add to your investment its future performance relative to alternative investment options should support this.

With investment analysis and regular reviews you can take control of the investment process and maximize overall performance.

Input is at the top. Mouseover titles for Help or click to access this Help file. From the investment variables an analysis table is built and plot displayed. There are 3 table display and plot options. Select by clicking Asset, Cash or Equivalent. The table displays investment analysis details by year. Support comments for each column are provide when you hold the mouse over the column title. To hide a column click its title. To restore the display click one of the display options.

Asset Initial details represent the asset at time of purchase.

Input a description for the investment profile. This is used an identifier.

Input the initial purchase amount of the asset. This should reflect the value of the asset at the time of purchase.

Input any expense associated with the purchase. This should include transaction, legal, and financing (excluding interest) costs.

Asset Growth details represent future capital variations.

Input the average expected annual capital growth percentage of the investment for the duration (number of years) under analysis. This determines the annual amount the investment value will vary. Capital growth has a major impact on an investment due to the effect of compounding. For an investment to perform better than the average it must possess attributes which result in increasing demand relative to alternatives. For real estate research local market conditions including population trends. For equities research the overall market and the specific company performance. Consider the investments uniqueness and desirability. For strong capital growth the asset must possess some unique attributes that are (or will be) in demand. For all investments consider economic cycles. There is a wealth of general and specific data available on the internet including a wide range of growth and performance statistics. However beware statistics are based on past performance, what you are interested in is future performance, make sure you are comfortable with any input you apply.

Input any regular annual additional asset contributions that will be added to this investment. If the investment is property this value will normally be 0. If it is an equity or cash account investment and any additional capital will be invested each year (i.e. buy more shares or add more money to the account) this value will be the amount added each year.

Input any regular annual additional expense associated with the additional capital. This should include transaction, legal, and financing (excluding interest) costs.

Annual Income represents investment income excluding capital growth. Select the type of income from the investment using the option buttons and input the required values. When considering income offset expenses should be viewed as income. For example if you are analyzing the investment performance of your home include the rental expense you would incur to rent somewhere else to live if you did not have your home as an income. To do this simply include the value of the offset expense as an income for the investment.

Select the income type as a percentage of the asset value or as a percentage change from a base value. The type of income selected depends on how future income will vary. If it is closely related to the asset value (including capital growth) select % pa of Asset Value, if it is closely related to changes in a base (current) value select % change from Base. For property investments the income type is normally a % change from Base. This is because rental/lease income tends to be related to overall market supply and demand. A property price increase of 20% does not automatically result in an income increase of 20%. This is particularly true for domestic property, commercial property tends to be less volatile. For an equity or cash account investment the income type will normally be % of Asset Value. Equity investments often pay a dividend which remains reasonably constant relative the equity value and income from cash accounts is normally a percentage of the amount invested.

Input the percentage value to apply for your income type. If income type is % of Asset Value the calculated income for each year will be the percentage value multiplied by the asset value for that year, income will change relative to the asset value. If income type is % change from Base the calculated income for each year will be the previous years income plus the percentage change. For a change from Base the percentage value will usually be closely related to the Cost Index %. This indicates changes in the cost of living or inflation rate. First year income is set at the Base Value.

Input first year income to set the Base Value. This only applies when income type is % change from Base.

Annual Expense represents investment expense excluding loan interest. Select the type of expense incurred by the investment using the option buttons and input the required values.

Select the Expense Type as a percentage of the asset value or as a percentage change from a base value. The type of expense selected depends on how future expense will vary. If it is closely related to the asset value (including capital growth) select % pa of Asset Value, if it is closely related to changes in a base (current) value select % change from Base. For property investments the expense type is normally a % change from Base. This is because authority and maintenance expenses are usually closely related to the Cost Index %. This indicates changes in the cost of living or inflation rate. For a self managed equity or cash account investment with no expenses set the expense type to % change from Base with the percentage value and Base Value of 0. For a managed equity or cash account investment expense type is usually % of Asset Value with service/management fees applied as a percentage of the asset value.

Input the percentage value to apply for your expense type. If expense type is % of Asset Value the calculated expense for each year will be the percentage value multiplied by the asset value for that year, expense will change relative to the asset value. If expense type is % change from Base the calculated expense for each year will be the previous years expense plus the percentage change. First year expense is set at the Base Value.

Input first year expense to set the Base Value. This only applies when expense type is % change from Base.

Loan Details represent any borrowings undertaken for the initial asset purchase.

Input the initial loan amount.

Input the average annual interest rate applied to any outstanding loan amount over the life of the loan. Interest expense calculations and outstanding loan amounts are based on calculated monthly interest charges and repayments.

Input the average annual repayments applied to any outstanding loan amount. Interest expense calculations and outstanding loan amounts are based on calculated monthly interest charges and repayments.

Analysis Details represent additional data applied in the analysis calculations.

Input the number of years for analysis. This duration should be considered when setting input values impacted by the length of analysis. To decrease the impact of investment performance volatility on the results increase analysis a duration. In most cases a minimum duration of 10 years provides a time frame where averages reflect actual performance.

Input a percentage indicating changes in the cost of living or inflation rate. This percentage indicates changes in the value of money or buying power. Inflation rates or Consumer Price Indices can be applied as the Cost Index %. A cost index of 10% basically means that in 1 years time it will cost me $1.10 to purchase what I can purchase today for $1.00. This value is applied extensively to determine current equivalent values for your investment in future years.

Input the percentage taxation rate that applies to the investment. This tax rate is applied to the Surplus in the analysis. If the Surplus is positive it is reduced by the Taxation Rate % to give the Surplus Tax Adjusted, this reduction equates to tax paid on the profit generated. If the Surplus is negative it is increased by the Taxation Rate % to give the Surplus Tax Adjusted, this increase equates to a reduction in tax paid due to the loss incurred. Taxation on capital and depreciation allowances are not considered. While taxation impacts on investment performance, compounding capital growth has a much greater impact. Initially it is usually beneficial to run an analysis with a Taxation Rate % of 0 to determine the taxation independent investment performance.

Click Asset, Cash or Equivalent to display analysis. The Analysis table provides full analysis calculations, mouseover table column titles for help. Click a column title to hide the column. A plot is displayed for the selected Asset, Cash or Equivalent calculations.

This indicates the number of full years from the acquisition date which is Year 0. Year 1 is the point at which the asset has been held for 1 year, during this period it has incurred one year of capital growth, income, and expense. Year 2 is the point at which the asset has been held for 1 additional year, during this period it has incurred one additional year of capital growth, income, and expense. The Final/Total and Average rows at the bottom of the table provide data for the analysis period.

Year 0 Asset Value is Purchase Amount. Following years are calculated as the previous year Asset Value increased by Capital Growth for the year plus any Additional Capital; Asset Value = previous Asset Value * (1 + Capital Growth % pa / 100) + Additional Capital pa.

Year 0 Loan Balance is Loan Amount. Following years are calculated as the previous year Loan Balance plus the current Interest Expense less the Annual Repayment amount until the Loan is repaid. Interest and Repayment values applied are calculated monthly values; Loan Balance = previous Loan Balance + current Interest Expense - Annual Repayments.

Asset Equity is current year Asset Value less current year Loan Balance; Asset Equity = current Asset Value - current Loan Balance.

Asset Equity Equivalent indicates the equivalent current day (Year 0) value of the Asset Equity which is current year Asset Equity converted to the equivalent Year 0 value considering the Cost Index %; Asset Equity Equivalent = current Asset Equity / (1 + (Cost Index % / 100)) ^ current Year.

Year 0 income is 0, following years are calculated. When Income is set as a % pa of Asset Value Income is calculated as a percentage of the average previous and current Asset Value which is average Asset Value by Annual Income % pa; Income = (previous Asset Value + current Asset Value) / 2 * Annual Income % pa / 100. When Income is set as a % pa change from Base Year 1 income equals the Base Value and following year income is calculated as an increase over the previous years income which is previous year Income increased by Annual Income % pa; Income = previous Income * (1 + Annual Income % pa / 100).

Year 0 expense equals Purchase Expense, following years are calculated. When Expense is set as a % pa of Asset Value Expense is calculated as a percentage of the average previous and current Asset Value plus any expense associated with Additional Capital which is average Asset Value by Annual Expense % pa plus Additional Expense pa; Expense = (previous Asset Value + current Asset Value) / 2 * Annual Expense % pa + Additional Expense pa. When Expense is set as a % pa change from Base Year 1 expense equals the Base Value plus Additional Expense pa and following year expense is calculated as an increase over the previous years expense plus any expense associated with Additional Capital which is previous year Expense increased by Annual Expense % pa plus Additional Expense pa; Expense = previous Expense * (1 + Annual Expense % pa) + Additional Expense pa.

Year 0 interest expense equals 0. Following years are calculated by month and as the Loan Balance at the beginning of the month (which for the first month equals the Loan Balance at the end of the previous year) by the Interest Rate divided by 12; Interest Expense = Sum of each month (previous Month Loan Balance * Interest Rate % pa / 100 / 12).

Surplus indicates the operating return (excluding capital growth) from the investment and is current Income less current Expense less Interest Expense; Surplus = current Income - current Expense - current Interest Expense.

Surplus Equivalent indicates the equivalent current day (Year 0) value of the Surplus which is current year Surplus converted to the equivalent Year 0 value considering the Cost Index %; Surplus Equivalent = current Surplus / (1 + (Cost Index % / 100)) ^ current Year.

Surplus Tax Adjusted indicates the Surplus after Tax from the investment and is current Surplus by 1 - Tax %; Surplus Tax Adjusted = current Surplus * (1 - Tax % / 100). If the Surplus is positive it is effectively reduced by the Taxation Rate, this reduction equates to tax paid on the profit generated. If the Surplus is negative it is effectively increased by the Taxation Rate %, this increase equates to a reduction in tax paid due to the loss incurred. Taxation on capital and depreciation allowances are not considered.

Surplus Tax Adjusted Equivalent indicates the equivalent current day (Year 0) value of the Surplus Tax Adjusted which is current year Surplus Tax Adjusted converted to the equivalent Year 0 value considering the Cost Index %; Surplus Tax Adjusted Equivalent = current Surplus Tax Adjusted / (1 + (Cost Index % / 100)) ^ current Year.

Cash Flow indicates the actual annual cash equilibrium (in/out) of the investment. In Year 0 this is current Surplus Tax Adjusted less the Purchase Amount. For following years it equals current Surplus Tax Adjusted less Additional Capital pa less Annual Repayment plus current Interest Expense; Cash Flow = Surplus Tax Adjusted - Additional Capital pa - Annual Repayment + current Interest Expense. Interest expense is added to prevent it being applied twice. It is already included in both the Surplus and the Annual Repayment.

Cash Flow Equivalent indicates the equivalent current day (Year 0) value of the Cash Flow which is current year Cash Flow converted to the equivalent Year 0 value considering the Cost Index %; Cash Flow Equivalent = current Cash Flow / (1 + (Cost Index % / 100)) ^ current Year.

Apparent Return indicates the return (including capital growth) from the investment and is previous year Asset Value by Capital Growth percentage plus current year Surplus Tax Adjusted; Apparent Return = (previous Asset Value * Capital Growth % pa / 100) + current Surplus Tax Adjusted.

Apparent Return % pa indicates the apparent performance of the investment for the year as a percentage return on equity which is Apparent Return divided by Asset Equity; Apparent Return % pa = (Apparent Return / Asset Equity) * 100.

Actual Return Equivalent indicates the equivalent current day (Year 0) value of the return achieved considering Apparent Return and any change in Equity Value due to the Cost Index % which is current year Return less the change in Asset Equity due to the Cost Index % pa converted to the equivalent Year 0 value considering the Cost Index %; Real Return = (current Apparent Return - (Asset Equity - Asset Equity / (1 + Cost Index % / 100))) / (1 + (Cost Index % /100))) ^ current Year.

Actual Return Equivalent % indicates the actual performance of the investment for the year as a percentage of Equivalent Equity which is Actual Return Equivalent divided by Asset Equity Equivalent; Actual Return Equivalent % = ( Actual Return Equivalent / Asset Equity Equivalent ) * 100.

This application is developed using HTML5 and runs best in Google Chrome. Some functionality may not be available in all devices.

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