Zagreb Stock Exchange is introducing a new equity index, CROBEXtr© (CROBEX Total Return Index) starting from 24 February 2014. CROBEXtr© is a market capitalization weighted total return index. The base level of CROBEXtr© will be set at 1.000,00 points on 21 February 2014, and it will be calculated in Croatian Kuna (HRK) in a real time.
The new index maintains the composition of the existing price index CROBEX®, but it will include dividends. Dividends will be taken into account into CROBEXtr© calculation after the first trade is made on an ex-dividend date. Dividends will be reinvested in the CROBEXtr© constituents on a regular revision date in accordance with their respective weighting so the CROBEXtr© index will measure a total return which an investor might earn by investing in a portfolio of equities, proportionately to their individual weighting in the CROBEXtr© index.
Impact on investors: The introduction of the CROBEXtr© index, as ninth Zagreb Stock Exchange equity index, should make trade in equities more transparent, enabling investors to accurately monitor equity price movements and to make investment decisions easier.