It has been a while since we update on the performance of the model Singapore Permanent Portfolio.

Between 3 Jan 12 and 31 May 14, the model Portfolio has averaged an annual return of 1.03%, or 3% cumulative return. This is unimpressive to many people. However, it is important to note that this model Permanent Portfolio has yet to carry out its first re-balancing. The Permanent Portfolio is a not a dividend portfolio but a capital gain portfolio. To make profits, the investor has to buy and sell the components in the portfolio. Hence, profits are only made in between two re-balancing and this model portfolio has yet to see one.

Most importantly, Permanent Portfolio promises a very low drawdown and during this 2 years and 5 months, the maximum drawdown was only -9.5%, despite the series of bad news: turmoil in Europe, drop in US credit rating …