Recently, I sold away my (tiny) position in Fraser's Logistics and Industrial Trust to free up more cash for my new home. I had bought 1000 units at IPO in June 2016 as a way to compound my gains from dividends and distributions earned from CMT and Cache. Subsequently I sold at $1.09, earning $258.5 in capital gain and dividends after subtracting commission, for a total return of 29.22%.
Annualised, this is a solid 16.70% per annum.
Due to the size of my purchase, commission fee has a more substantial effort on the overall gains. To show diluted effect of commission fees on the performance, I will run a simulation of the gains and comparisons against SPDR STI ETF based on if I had 10,000 units instead of just 1000. I will subsequently do similar simulation whenever I do reflections for cashing out on purchases under $4500.
| Units purchased | Purchase price per unit (include comm) | Period held (years) | Yield on cost | Overall gain from distributions | Annualised Capital Gain on cost | Overall Gain from Capital Gain | Annualised Overall Gain | Total Gain |
| 1000 | 0.892* | 1.75 | 5.67% | 9.92% | 11.03% | 19.30% | 16.70% | 29.22% |
| 10000 | 0.894** | 1.75 | 5.66% | 9.90% | 12.37% | 21.64% | 18.03% | 31.55% |
If i scale this up to a level where the effect of commission is watered down ...
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