Stock market starts TRI tracking
Credit to Author: The Manila Times| Date: Sun, 03 Feb 2019 16:12:57 +0000
The Philippine Stock Exchange, Inc. (PSE) is planning to launch new indices this year, one of which — the PSEi Total Return Index (PSEi TRI) — will gauge overall returns factoring in capital gains and dividend payments if these are reinvested.
“We have always been focused on investment gains from price appreciation. As done in other markets, we want to show the bigger picture on the profitability of stock and index investing,” PSE President and CEO Ramon S. Monzon said in a statement.
Explaining the PSEi TRI, the bourse said it used 1,000 as base value with December 28, 2007 as the base year for the new index, which closed at 2,771.01 on December 28, 2018 — a 10-year cumulative gain of 417.6 percent compared with a 298.6-percent rise in the PSEi from 2008 to 2018.
A five-year computation of the PSEi TRI, meanwhile, shows a growth of 38.7 percent compared with a 26.8-percent increase for the PSEi.
”The PSEi TRI has the same constituents as the PSEi and integrates regular and special cash dividends of index components on ex-date. If there are changes in the composition of the PSEi, the same will be reflected,” the bourse said.
The PSEi TRI will be available online not later than 5:00 p.m. of each trading session, it added.
Aside from the PSEi TRI, the bourse said it was also reviewing current sector index classifications.
“We want our sectoral indices to be more representative of the industries they belong to. This will be beneficial to fund managers in planning and executing their investment strategies. We hope to announce the new sector classifications by mid-year,” Monzon added said.
The bourse also said that ”all PSE indices are available for index licensing.”
“The Exchange will begin charging license fees to Collective Investment Schemes that track PSE indices or use the PSE indices as the underlying index for their fund. The charging will be fund specific and the license fee will depend on the size of the fund’s Net Asset Value,” it added.
Monzon said index licensing “is not something unique to the PSE. Several other exchanges globally charge for the intellectual property of the indices they develop and maintain.”
The post Stock market starts TRI tracking appeared first on The Manila Times Online.