Total shareholder return

[awg]

My understanding of TSR would include Capital Growth + dividends

Commsec has details of TSR for various timescales including 1yr

I would have thought this figure was updated on a rolling basis

An easy check of the 12 month chart for many stocks shows the 12 month TSR does not match Capital gain, or CG + div.

Therefore I am unable to ascertain on what basis these figures are calculated.

I can only presume the dates they use to update the data, are fixed at some time, not continuously updated.

The figures are disturbingly innacurate, so I hope I can find out the answer.

An example would be MTS and WOW

 

[Tysonboss1]

My understanding of TSR would include Capital Growth + dividends

Commsec has details of TSR for various timescales including 1yr

I would have thought this figure was updated on a rolling basis

An easy check of the 12 month chart for many stocks shows the 12 month TSR does not match Capital gain, or CG + div.

Therefore I am unable to ascertain on what basis these figures are calculated.

I can only presume the dates they use to update the data, are fixed at some time, not continuously updated.

The figures are disturbingly innacurate, so I hope I can find out the answer.

An example would be MTS and WOW

I would say that the figures are updated annually.

It is not an overly important figure anyway, It doesn't really give you any usefull infomation for analysis, it's more for general interest.

 

[awg]

I would say that the figures are updated annually.

It is not an overly important figure anyway, It doesn't really give you any usefull infomation for analysis, it's more for general interest.

Thx for the reply Tyson.

I just checked MTS and it has changed since ystday

Shows a TSR of 0% which is different to yesterday of 0.3% ( for 1 year )

As I mentioned this does not accord

If I though it would do any good I would ring Commsec, might email them the question instead

Whilst I agree it is only very much a snapshot that requires further research, it can/could? be helpful for fundamental filter scans, when used on a multi year timescale.

I am a bit puzzled by your remark "its not an overly imortant figure anyway"

Isnt Total Sharholder Return the defining measurement of investment success?

 

[awg]

Here is the official answer.

I emailed Comsec, and thence Morningstar (24hr response)

attached below is the reply



"Our Total Shareholder Return is calculated by using month-end price relative.

The Price Relative is auto-calculated by our system and takes into account the price changes, dividend reinvestment and dilution factors.



For example, 1 year TSR on 26 October 2010 will be using the PR of October 2009 and October 2010.

Since it's not the end of the month yet, PR of October 2010 will be taking from the latest date. "

 

[Tysonboss1]

I am a bit puzzled by your remark "its not an overly imortant figure anyway"

Isnt Total Sharholder Return the defining measurement of investment success?

I guess it is kind of like driving by looking in the rear view mirror.

Looking at a companies past shareholder return doesn't give you any visability or insight into what the future return will be.

If a companies share price has surged in recent years and become over priced it will have a great shareholder return figure and this could look attractive even though there is a big chance of a correction or protracted stagnation in share price and dividend yields have probably been reduced also.

however it is also possible for a good company that has been growing steadily and whose share price has not surged yet to show a poor figure which would make the company look unattractive, however this company probably is due for solid gains and dividend yields are probabally higher.