Total Shareholder Return

Discussion in 'Share Investing Strategies, Theories & Education' started by Ynot, 12th Jun, 2019 at 1:35 PM.

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  1. Ynot

    Ynot Well-Known Member

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    Is there a standard definition and calculation for "Total Shareholder Return"? Is there a free reporting service that provides the TSR figures using that standard definition?

    I use Commsec and it only has 'Total Return' listed under the 'Financials' tab. For BKI it shows a Total Return of -1.6% (for June 2018) whilst looking at the BKI annual report for the same period it shows TSR as 0.1% but mentions that it TSR calculations includes franking credits. When considering an investment, should you only look at the latest figure for TSR or should you look at the 5 or 10 year figure?

    Therefore a query as to whether both use the same data in their calcuations? Also, does the price or prices paid for the share change in any way the calculation for TSR?
     
  2. willair

    willair Well-Known Member Premium Member

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    Quote..
    When considering an investment, should you only look at the latest figure for TSR or should you look at the 5 or 10 year figure?

    Maybe just keep up with the latest ,it's not good to go back and study history for mistakes to repeat..
     
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  3. Zenith Chaos

    Zenith Chaos Well-Known Member

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    Including franking in TSR doesn't seem right as it varies depending on the individual and legislation. E.g how would that be reported if Labor's franking legislation was passed?

    Long-term TSR is evidence of proven performance over time. Short term could be random. Look at all periods but remember some (most probably) companies like to ride the coat tails of a short period of outstanding results and hide it in their long-term performance.
     
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  4. PandS

    PandS Well-Known Member

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    I wouldn't worry about TSR if you invest in a basket of stock like BKI, you want to compare it against the index it benchmark itself against.

    If it under perform the index then why are you paying for management fee? just chuck money into the index, if it out perform the index then there is merit to invest in it due to higher cost
     
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  5. Fargo

    Fargo Well-Known Member

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    NN
     
  6. The Falcon

    The Falcon Well-Known Member

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    @Ynot , BKI's reported TSR grossing up franking credits is misleading to say the least.

    TSR is pretty much useless when considering an investment imho - it only tells you what happened in the past between two fixed time points.
     
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  7. Ynot

    Ynot Well-Known Member

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    So what measure (hopefully publicly available) should I use? I find it hard to find comparable information to compare BKI with say VAS because COMMSEC doesn’t hold any figures on VAS.
     
  8. PandS

    PandS Well-Known Member

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    upload_2019-6-14_22-23-44.png

    Yahoo Finance
     
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  9. dunno

    dunno Well-Known Member

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    upload_2019-6-14_22-58-14.png
    Cross reference the date management externalised with @PandS's chart.


    Co-incidence? Think Not.
     
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  10. Ynot

    Ynot Well-Known Member

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    Wow