1.6.8 Price return

Price return, capital growth, or indirect return, measures the change in an asset's value over a period of time relative to the initial value. The index-level price return is calculated as the weighted average using the market value of each constituent.

where:
denotes the weight of constituent i at time t-1. For corporate companies, the following adjustment is made:

and denoting constituent i's equity value estimates at times t and t-1 respectively, the adjusts the market value of the company based on the Drawdown of Shareholder Loans in the company:

and

However, for project companies, theare set to 1, this is because the further equity injections are already reflected in the valuations of project companies. Which is not the case for corporate companies or companies that had default events.

Individual constituents’ quarterly price returns are capped at a maximum threshold (149.5%) to prevent extreme outliers from influencing the index. If a company’s quarterly return exceeds this cap, the excess is redistributed proportionally across its monthly returns within that quarter. This ensures that no single outlier return drives the overall index performance

This is an input to the computation of the price and cash returns contribution.