Friday, 30 December 2022
Written by Ronnie Tan, CEO of GAX MD
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Dear Investors,
We would like to thank you for bracing 2022 with us.
2022 was a year to remember, and to forget for investors as we saw sharp falls in global equity markets, bond markets, real estate markets, crypto implosions and the general economic slowdown. Supply chain disruptions, geopolitical tensions, post-covid effects and rising interest rates to curb inflation were the major contributions towards this market disruption.
While market returns are difficult to forecast consistently, we do expect the current market volatility to continue in 2023. However, our long-term return expectations have not changed.
It is important to remember that market corrections create opportunities. By overcoming behavioral biases and staying invested through the market cycle, and if possible, averaging into the market on weakness, will eventually help to achieve your long-term financial objectives.
MYTHEO algorithms are designed to help investors achieve their long run investment objectives with the lowest possible risk. The relatively small size of MYTHEO’s drawdowns (around 5 to 6%) shows the value of our functional portfolio approach, 100% AI-driven investing and global diversification beyond equity, bond asset and real assets classes.
This is best highlighted by the fact that MYTHEO’s portfolio strategy has worked well since our inception in 2019. We have seen and managed years of different financial market backdrops, with MYTHEO's model aggressive portfolio (with 65 % in equities and the remaining 35% in fixed income, bonds and real assets) generating investors an annualized positive return of 6.34% since inception (as at November 30th 2022).
Gross Performance In Malaysian Ringgit As At November 30th 2022
Source: MYR, GAX MD Sdn Bhd, Dec 2022. Gross of fee. Note: Past performance is not indicative of future performance
I would like to take this opportunity to reiterate our commitment here at MYTHEO to help you navigate this new economic regime and the uncertainties ahead in order to protect and grow your funds in the long-term.
An illustration of this was our response to rising interest rates across the globe. While a challenge, it also presented an opportunity to provide value for our customers. With rising interest rates, cash finally had a yield again, making cash a viable, short-term option in times of high volatility for our more active clients.
In line with this, we launched the MYTHEO USD Cash Trust (MUST) and, as I told The Edge, it aims to provide a more tolerable option in the face of the volatility that we are seeing while delivering a competitive yield on cash.
As we head into 2023, we will continue to monitor your portfolio assets allocation by balancing the risk return factors. We believe that the recent months have clearly reinforced the importance of adhering to a robust investment strategy that is aligned with one’s long term financial objectives of growing and preserving wealth.
My team and I are grateful for all of your support and trust in MYTHEO.
Happy New Year!
Invest in a moment with,
MYTHEO
Ronnie Tan, CEO of GAX MD
Disclaimer:
The above content and communication are for educational and informational purposes only.
Past performance is not indicative of future performance
Model portfolios and stated returns are for illustration only.
MYTHEO constructs a customized portfolio for each individual investor based on the answers to the 5 profiling questions
This communication is also subject to terms available at the following link: https://www.mytheo.my/MYTHEO/resources#legal-and-documents
