Thai Bourse Launches Total Return Index

The Stock Exchange of Thailand (SET) produced its Total Return Index (TRI) to assess total returns from investing in SET-listed securities. It will be useful for making investment decisions and for appraising funds and fund management, and will be distributed via the SET website, www.set.or.th, from May 2 onwards.

Senior Vice President of the SET Dr. Sethaput Suthiwart-narueput disclosed that TRI measures market performance from three sources of returns:

1. Price movements (capital gain/loss)
2. Rights offered to current shareholders allowing them to purchase additional shares, usually at a discount to market price (rights offering)
3. Income from dividend payments (dividends)

“Price indices measures only items (1) and (2), above. Hence, the TRI envisages a complete picture of returns, as dividends are included,” he noted.

“Measuring fund performance based on the price indices alone will often yield above-the-market performance. TRI thus can be another tool used to measure the fund or fund manager performance,” Dr. Sethaput concluded.

For more details on index methodology, calculation, and movement, please visit http://www.set.or.th/en/info/statistics/tri.html.

Total return indices are calculated at the end of each trading day and published the following day. Monthly total returns, by individual security, for last 12 months will be calculated at the end of each month, and published within the first five trading days of the following month.