What mathematical formula do I use to manage my CDP fund portfolio?

According to DBS NAV Planner, my property (a 3-room HDB flat) only accounts for 12.35% of my total assets. For years, I've maintained that my home is for my own living, using Singapore Real Estate Investment Trusts (S-REITs) and DBS Retail Unit Trusts as tools for my personal financial management and investment.

I decided to retire early, at age 58, on March 1, 2024, seven years earlier than the official retirement age of 65, which was originally scheduled for 2030.

My CPF investments have maintained a profitable return on investment so far. On March 16, 2024, having reached the FRS, I decided to close my CPF investments and withdraw all my CPF investments, allowing me greater flexibility and convenience in managing my retirement assets.

The value of investment funds fluctuates with global economic developments, so the timing of fund redemptions is crucial. Past returns, which can be found online, are for reference only. The following is my CPF Investment portfolio before closing, please feel free to refer to it:

73.56% — FSSA dividend advantage fund

6.84% — Mapletree Pan Asia Cm reit

5.67% — Frasers log & co tr

3.79% — Sasseur reit

3.67% — Lendlease gl co reit

3.53% — Capitaland ascendas reit

2.92% — Aims apac reit

Achieving retirement officially opens the door to my money working for me. I no longer work for money and become fully committed to controlling my finances and my time. The next step is to reduce investment risk, increase sustainable investment returns, and properly manage my retirement assets.

The first formula below estimates the actual amount of cash invested in my CDP fund, using my Amova Singapore Dividend Equity Fund (ASDE) as a benchmark. It provides a standardized way to track relative performance.

Estimated CDP Cash Invested Principal = (ASDE Principal x CDP Market Value) / ASDE Market Value

The second formula below tells me the actual dividend yield of my CDP portfolio, adjusted for invested capital. I regularly update this data in Excel to monitor whether my portfolio remains within my target yield range of 4-5%.

Annual CDP Dividend Return % = (Total Annual CDP Dividends Received x 100) / Estimated CDP Cash Invested Principal

The above formula provides a deterministic (data-based) way to measure the performance of my CDP portfolio by projecting potential paper gains or losses. You can also use the above formula to benchmark your CDP fund against an index fund or ETF. Maintaining no more than 10% of your entire fund in any single stock is generally quite safe.

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