If you are aware, in some measure, past year very old data may "cloud" years of recent performance. Some may practice 20 years cutoff as a compromise. For Cory Annualized Performance we can try as follows.
Cory Annualized Performance ...
of last 14 Years will be 7% which starts from one year before 2008 GFC. This is captured in above chart. This returns pretty align with 3 Years and 5 Year benchmarks.
If we retain the recent years of data only,
Last 03 Years will be 7.1%
Last 05 Years will be 7.5%
Last 07 Years will be 5.2% which reflects poor returns in Years of 2014, 2015 and 2016 periods
Last 10 Years will be 6.1%
Therefore for Year 2021, the Goal is to be above 7.5 % Annual Return in order to improve in all the above levels. And therefore achieve consistent above 7% returns.
Stretch goal for Year 2021 will be 17.8% annual return to achieve 8% annualize of 15 years. That is how hard to move a needle of 1% on 14 years data. This will be a tough one to get for a dividend portfolio and may required some re-engineering on my part. I will need to put a thinking cap on this.
For STI, is -0.7% for 14 Years annualized data. STI Index has never recovered after Year 2009 rebounds. So if we are to include STI ETF dividends probably 3%-4%. We can try 3 Years and 5 Years data and I bet they will not be swimming well. This broadly defines the impact to Singapore Economy on Oils Sector follow by Covid-19.
I remember reading a challenge on re-investment of STI ETF every time dividends are distributed by STI ETF. What will the returns be like for the past 14 years then ? To save time to do this. Allocated 11.5 cents dividend to each year and reinvest equally on 1st and last date of their respective year closing share price. The estimated answer I found is 3.2%.
Articles in this Blog is personal take and educational purposes only. Reader should seek their own professional help when making financial decision and be responsible for their decision.
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