13 January 2025
Written by MYTHEO
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Key Takeaways
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• While a stronger Ringgit weighed on MYR returns, MYTHEO portfolios invest in global businesses that earn revenues across multiple currencies, making them structurally resilient to single-currency movements.
• The strongest contributors came from non-US markets and sectors such as metals, renewable energy, and UK financials, reinforcing the value of true global diversification
• By combining global equities, fixed income, real assets, and broad geographic exposure, MYTHEO portfolios are designed to navigate shifting currencies, interest rates, and market leadership while remain aligned with long-term growth.

1. Growth Portfolio

‍In December 2025, MYTHEO’s Growth Portfolio achieved an increase of 0.67%. However, when measured in Malaysian Ringgit (MYR), the portfolio registered a decline of 1.15%.

The Growth Portfolio extended its positive momentum to eight consecutive months in USD terms. However, a sharp appreciation of the MYR resulted in a second consecutive month of negative performance when measured in MYR.

‍The largest positive contributor during the month was exposure to the UK banking sector. The portfolio benefited from a strong rally in major UK banks, with HSBC rising by 9.68% and Barclays advancing by 10.62%. Financial Services remain the largest component of the UK equity market and represent approximately 23% of MYTHEO’s total UK exposure, providing meaningful upside during the period.

Momentum from the previous month also continued to support Canadian equities (EWC). Strength in precious metals, coupled with expectations of an economic rebound and a recovery in third quarter GDP, helped extend the rally in the Canadian market.

The sole detractor for the month was US large-cap growth (VUG), which experienced profit taking in several key holdings. Broadcom, the sixth largest holding in VUG, declined by 14.11% despite reporting strong quarterly result during the month, including 28% revenue growth and a 97% increase in net income.
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Top 3 ETFs performance (Growth portfolio)

Bottom 3 ETFs performance (Growth portfolio)

Source: GAX MD Sdn Bhd, data in USD term for the month of December 2025.

2. Income Portfolio

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‍In December 2025, the MYTHEO Income Portfolio registered a marginal decline of 0.02% in USD terms. However, when converted to Malaysian Ringgit (MYR), the portfolio experienced decrease of 1.82%, attributed to the strengthening of the Ringgit during the period.

The Income Portfolio faced dual headwinds during the month, driven by rising Treasury yields and a weakening US Dollar. The US 10-year Treasury yield rose to 4.177% in December, marking the highest monthly close since August, when yields peaked at 4.226%. The increase followed news that the US economy expanded at a stronger than expected 4.3% annualised rate in the third quarter. This might reduce the urgency for interest rate cuts and placed pressure on income assets that are more sensitive to changes in yields such as US Treasury with more than 20 years left to maturity (TLT)

At the same time, strength in commodity markets provided an indirect offset to the Income Portfolio. Emerging market economies, many of which are major commodity exporters, benefited from higher commodity prices. This supported the performance of emerging market bonds traded in its respective currency (EMLC) which was top performer in the income portfolio with a gain of 1.64%.
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Top 3 ETFs performance (Income portfolio)

Bottom 3 ETFs performance (Income portfolio)

Source: GAX MD Sdn Bhd, data in USD term for the month of December 2025.

3. Inflation Hedge Portfolio

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The MYTHEO Inflation Hedge Portfolio posted a USD return of 1.18% for December but recorded a decline of 0.64% in MYR.

The Inflation Hedge Portfolio delivered a strong performance, supported by a continuation of the rally that began in November. Silver was the main contributor, rising by 17.61% in November and extending its advance with a further 22.66% gain in December. The broader metals holding also performed well, supported by stronger US economic data. The DBB ETF, which provides exposure to copper, aluminium, and zinc, rose by 7.06% during the month.

‍On the downside, oil prices continued to weaken in December amid concerns over a structural shift in fossil fuel demand, driven by the growing preference for clean energy. In addition, a weaker US Dollar reduced the appeal of US real estate assets. As a result, oil (DBO) and US real estate (IYR) declined by 2.51% and 1.09%, respectively.
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Top 3 ETFs performance (Inflation hedge portfolio)

Bottom 3 ETFs performance (Inflation hedge portfolio)

Source: GAX MD Sdn Bhd, data in USD term for the month of December 2025.

4. Global ESG Portfolio

MYTHEO’s Global ESG Portfolio gained 1.06% in USD terms but declined by 0.76% when measured in MYR.

All ESG exposures delivered positive returns during the month, although a clear pattern emerged. Investor preference continued to shift toward non-US markets. Developed market equities excluding the US and Canada (ESGD), together with emerging market equities (ESGE) were the strongest contributors to performance.

In contrast, US technology and growth-oriented stocks remained under pressure as profit taking activity persisted. This weighed on exposures with a higher concentration in these segments, including USD ESG Select (SUSA) and US ESG Large-cap Growth (NULG), which lagged the broader portfolio performance.
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Top 3 ETFs performance (Global ESG portfolio)

Bottom 3 ETFs performance (Global ESG portfolio)

Source: GAX MD Sdn Bhd, data in USD term for the month of December 2025.

5.  Essential Products Portfolio

The MYTHEO Essential Products portfolio recorded a 0.13% gain in USD but experienced a 1.68% drop in MYR.

Performance across essential product themes was mixed during the month. Renewable energy emerged as a relative bright spot, benefiting from profit-taking in large-cap US technology stocks as investors rotated toward alternative growth and defensive themes.

This shift supported portfolio performance, with wind energy (FAN) exposure rising by 4.19%, while lithium battery (LIT) gained 3.20% over the month.

On the other hand, water-related exposure (FIW) declined by 2.15%. The weakness was driven largely by broader market sentiment rather than any deterioration in sector fundamentals. Energy sector exposure (XLE) also fell by 1.25%, extending its recent softness amid surplus supply from non-OPEC producers and signs of slowing economic activity in key markets, particularly China.
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Top 3 ETFs performance (Essential products portfolio)

Bottom 3 ETFs performance (Essential products portfolio)

‍Source: GAX MD Sdn Bhd, data in USD term for the month of December 2025.
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6.  Izdihar Portfolio

MYTHEO’s Izdihar Portfolio rose by 0.57% in USD terms but declined by 1.25% when measured in MYR.

The portfolio’s performance during the month reflected ongoing profit-taking in US equities alongside a continued shift in investor preference toward non-US markets. This trend was clearly evident in the contribution from overseas exposures.

The strongest contributors came from non-US equities, with developed and emerging market equities excluding the US (UMMA) and global equities excluding the US (SPWO) posting gains of 3.50% and 2.26%, respectively.

In contrast, US-focused Shariah-compliant equities lagged during the month. Exposure to the S&P 500 Shariah ETF (SPUS) and the FTSE USA Shariah ETF (HLAL) recorded modest declines of 0.16% and 0.13%, respectively, reflecting softer sentiment toward US equities over the period.
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Top 3 ETFs performance (Izdihar portfolio)

Bottom 3 ETFs performance (Izdihar portfolio)

‍Source: GAX MD Sdn Bhd, data in USD term for the month of December 2025.
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YTD Portfolio Return in % (MYR)

Source: GAX MD Sdn Bhd, December 2025
Note: Past performance is not an indication of future performance
Balanced allocation consists of 30% Growth, 47% Income and 23% Inflation Hedge
The Izdihar portfolio YTD performance is calculated from July 17, 2025, aligning with its official launch date.

How to calculate MYTHEO Omakase actual monthly portfolio return

For MYTHEO Omakase, the actual portfolio returns derive from the combined weighted returns of each allocated functional portfolio.
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For instance, assuming allocations of 30% to the Growth portfolio, 47% to the Income portfolio and 23% to the Inflation Hedge Portfolio, the YTD portfolio return in MYR as of December would be 5.19%. [(30% x 13.39%) + (47% x -2.48%) + (23% x 10.97%)]

Our Thoughts
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Overall portfolio performance during the month was shaped by two dominant forces. First, currency movements, particularly the appreciation of the Ringgit against the US dollar, continued to affect returns when expressed in MYR terms. Second, market leadership remained firmly outside the US, with non-US developed and emerging markets contributing meaningfully to portfolio performance.

‍It is essential to place currency impact in its proper context. While MYTHEO portfolios are primarily quoted in US dollars, the underlying exposures are neither US centric nor dependent on a single currency. The companies held across our portfolios operate global businesses, generate revenue in multiple currencies, and are deeply embedded in international supply chains.

‍Consequently, these businesses are naturally resilient and, in many cases, largely neutral to movements in any one currency. Furthermore, while currency fluctuations can be significant from year to year, they tend to normalize over the long term. As highlighted in our previous performance review, the US dollar has strengthened by an average of only 0.44% annually since 2006.
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Please find the link to our November performance review here: [https://www.mytheo.my/mytheo/mytheo-blog/november-2025-mytheo-omakase-global-esg-essential-products-and-izdihar-performance-report.html]

Beyond currency effects, portfolios benefited from selective sector strength, particularly in UK financials, metals, and renewable energy-related exposures. These areas provided important sources of return and helped offset periods of volatility in more US-focused exposure.

Fixed income markets faced a more complex environment. Inflation remained elevated but moderated more than expected, supporting the case for further US rate cuts. However, stronger-than-anticipated third-quarter GDP growth pushed treasury yields higher, creating short-term pressure on income assets. Diversification across regions and asset classes helped cushion this impact, while improving sentiment in non-US markets provided meaningful offsets.

Taken together, developments in 2025 demonstrated the strength of MYTHEO as a truly global investment platform. Our portfolios are constructed to reflect the global nature of businesses, rather than focusing solely on where securities are listed or denominated. By spreading exposure across global equities, fixed income, real assets, and multiple geographies, MYTHEO portfolios remained resilient in the face of US dollar weakness, rising US yields, and profit-taking in large-cap US technology stocks.

Equally important, this global approach enabled investors to participate in the areas of strongest performance in 2025, including non-US equity markets, renewable energy, and precious metals. In an environment where market leadership and currency trends continue to shift, investing in globally diversified businesses remains critical. MYTHEO’s investment framework is built precisely for this purpose, enabling investors to stay invested through different market cycles while remaining aligned with long-term global growth opportunities.

Discover how MYTHEO can enhance your portfolio diversification today and embark on your financial journey with confidence. Take the first step towards your financial goals now.

This material is subject to MYTHEO’s Notice and Disclaimer.