Portfolio return, year 2006

This is the first return calculation for my portfolio, and the return is above my benchmark in SGD it probably explains the low return value. But heck, stay the course. I use the sample Excel spreadsheet from Gummy’s XIRR stuff webpage to do the calculation. All values are annualized and expressed in SGD.

Portfolio return year 2006 = 5.97%
Benchmark return year 2006 = 5.21%

Year-to-date return:

  • Q1 = +5.87%
  • Q2 = -3.36%
  • Q3 = +1.13%
  • Q4 = +5.97%

Quarterly return:

  • Q1 = +26.34%
  • Q2 = -22.37%
  • Q3 = +13.40%
  • Q4 = +14.31%

Benchmark return year 2006 in USD is 14.21%.
My benchmark is explained HERE.


UPDATE (2007-01-23):

  • Changed benchmark return to SGD term. The calculation is shown in the 6th comment.
  • Used exchange rate on 31/12/05 and 31/12/06 to convert benchmark return to SGD.
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9 responses to “Portfolio return, year 2006

  1. choozm,

    Are your return and benchmark in USD or SGD?

  2. indexfundfan,

    Return in SGD, benchmark in USD. oops, I overlooked the currency. How to convert the benchmark from USD to SGD?
    Thanks.

  3. Just use the foreign exchange rates at the year ends. You can obtain the historic rates from Oanda.

  4. I have applied fx rate on year end portfolio value. Do you mean applying fx rate on the benchmark return, like 14.21%*1.54?

    The benchmark grew USD1 to USD1.1421 in 2006. If I convert both to SGD using year start and year end fx rate respectively, then it is SGD1.66 at year start and SGD1.75 at year end. And the return is 1.75/1.66-1 = 5.42% in SGD. Is it correct?

  5. Your calculations look correct. BTW, the USD/SGD rates I looked up were 1.6658 on 12/31/05 and 1.5346 on 12/31/06. So, return is (1.5346*1.1421)/1.6658 – 1 = 5.21%.

  6. Thanks!

    The difference is due to the rounding up of the fx rate before calculating return, I shouldn’t do that. Also I use rate on 01/01/06 and 12/31/06. So without rounding up, the SGD return of the benchmark is (1.5346*1.1421)/1.6642 – 1 = 5.32%.

  7. Well, technically speaking, the return for 2006 should start from the 1st minute of 2006 to the last minute of 2006. Given that the forex rates for a given date are usually given at the end of the day, the nearest values are those on 12/31/05 and 12/31/06. Hehe… 😉

  8. Ah, I see. I have changed the benchmark return by using fx rate on 12/31/05 and 12/31/06.

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