About Renavon Hong Kong Total Returns

What are Total Returns?

Total Return (TR) is the return to an investor who bought a security and held it, assuming all dividends and other distributions were reinvested in the same security at the closing price on the ex-dividend date. This gives a true picture of investment performance, unlike simple price appreciation which ignores income.

Calculation Methodology

Renavon Hong Kong Total Returns are calculated as follows:

Start with the closing price on the first trading day
Adjust for all corporate actions (splits, consolidations, bonus issues, rights issues)
Add back all dividends, assuming reinvestment at the ex-dividend closing price
Express as an index with base 100 on the first trading day

Adjustments for Corporate Actions

Splits and Consolidations: The number of shares is multiplied by the split ratio. A 1-for-2 consolidation means you have half as many shares worth twice as much each.

Bonus Issues: Additional shares received for free increase your shareholding without changing the total value (initially).

Rights Issues: If you subscribe to your entitlement, your cost base increases by the subscription amount. If you don't subscribe, your percentage ownership is diluted.

Data Sources

All data comes from Hong Kong Exchange Daily Quotations Sheets and official announcements. Historical data extends back to 1994-01-03 for Main Board stocks.

Limitations

Assumes perfect reinvestment at ex-dividend closing prices (not always achievable in practice)
Ignores transaction costs, taxes, and bid-ask spreads
Does not account for opportunity cost of rights subscription capital
Past performance is not indicative of future results

Using Total Returns

Total Returns are useful for:

Comparing performance across securities with different dividend policies
Evaluating fund manager performance against benchmarks
Long-term investment analysis
Academic research on market efficiency

View all Renavon Hong Kong Total Returns

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