The Total Return Index, the SEMTRI, is an index, which tracks the price performances of the constituents of the SEMDEX and ensures that the dividends paid by these constituents are reinvested. Its main purpose is to provide domestic and foreign market participants a good measurement of total return which combines both price movements on listed stocks and dividends obtained on these stocks since the inception of the local stock market on July 5, 1989. Henceforth, as from 12th September 2016 the SEMTRI will be based on the constituents of the new version of SEMDEX, which will be comprised of Mauritius-rupee denominated constituents only. The SEMTRI will start on the 12th of September at its closing value of 9th September 2016.
Calculation of SEMTRI
The methodology used for the calculation of the Total Return Index is based on the following approach.
The calculation is undertaken in two steps:
1) The first step is to transpose the total daily announced dividend payments into index points on the ex- dividend date. This is called XD adjustment to the underlying capital index, i.e the SEMDEX.
2) The second step of the calculation uses the figures calculated in step one (XD adjustment). These figures are included in the formula below to calculate the SEMTRI, assuming re-investment of gross dividends.
Rules for the maintenance of the SEMTRI
The maintenance of and operational adjustments to the SEMTRI in respect of corporate events, such as new listings or delisting, rights issues, bonus issues etc will be done in accordance with the rules governing the maintenance of the underlying capital index, SEMDEX.
Advantages provided by SEMTRI
SEMTRI provides investors with the following benefits: