Cory Diary : Annualized Returns since Year 2007 and Earlier

One of the interesting way to measure share investor performance is to use XIRR for multi-years computation. And this can be done easily summing up all the years of transactions that we usually keep annually.

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.

14 Years of Annualized Result

ANNUALIZED

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%

GOALS

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.

STI ETF

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%.

Cory

2020-0105

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.