$$$ KPO and CZM $$$

Tuesday, November 19, 2019

StashAway - October 2019

StashAway launched a new cash management portfolio and you can read about it here - StashAway Simple™ - Cash Management Portfolio. I am also reviewing Endowus CPF and SRS options and should be publishing an article on it soon. Do keep a lookout for it!

Anyway, we have 3 portfolios on 2 accounts now due to our new strategy - New Strategy: StashAway + Supplementary Retirement Scheme (SRS):
KPO and CZM Cash - StashAway Risk Index 22%
KPO SRS - StashAway Risk Index 36%
CZM SRS - StashAway Risk Index 14%

1. PORTFOLIO SUMMARY (as of the last day of the month)

KPO
CZM

Based on the statement (31 Oct 2019), KPO made $‭‭‭2,560.28‬ and CZM made $‭‭‭110.3‬0.

As of 15 Nov 2019, these are our portfolio performance:



KPO and CZM Cash - StashAway Risk Index 22%: $‭22,938.89 (+17.21% - Capital: $20,500)


KPO SRS - StashAway Risk Index 36%: $2,722.76 (+16.46% - Capital: $2,500)


CZM SRS - StashAway Risk Index 14%: $2,106.06 (+12.06% - Capital: $2,000)

2. PORTFOLIO DETAILS 
Note that these are reported in USD.

KPO and CZM Cash - StashAway Risk Index 22%

KPO SRS - StashAway Risk Index 36%

CZM SRS - StashAway Risk Index 14%

3. FEE CALCULATIONS


One of my referrals was not captured previously, contacted their support and was given a goodwill credit of $10. The fee stated is based on the monthly-average assets and should have been SGD $24,358.54 x 0.8% / 365 days * 31 days = $16.55.


The fee stated is based on the monthly-average assets SGD $1,832.35 x 0.8% / 365 days * 31 days = $1.24.

We used Grab points to redeem for StashAway credits (1,200 points for $5 credit). Not sure if it is still available though.

StocksCafe


Looking at the time-weighted return (17.83%), we can see that StashAway is "outperforming" the STI ETF (including fees). In addition, it has lower volatility and max drawdown.


On the other hand, StashAway is underperforming the SPY (SPDR S&P 500 ETF Trust) with lower volatility and max drawdown.

Which is the best? Only time will tell :)

This is the link to our spreadsheet - KPO & CZM StashAway Portfolio VS STI ETF which I have also added to Our Portfolio page.

StashAway Referral Link for Our Readers
Here you go: KPO and CZM Referral Link

You might be interested in previous months update too:
StashAway - January 2019 - $16,051.10
StashAway - February 2019 - $17,397.81
StashAway - March 2019 - $18,780.96
StashAway - April 2019 - $19,702.85
StashAway - May 2019 - $20,823.09
StashAway - June 2019 - $22,031.43
StashAway - July 2019 - $‭23,486.36‬
StashAway - August 2019 - $24,776.05
StashAway - September 2019 - $25,510.69‬
StashAway - October 2019 - $‭27,170.58‬

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)

Monday, November 18, 2019

StashAway Simple™ - Cash Management Portfolio

StashAway launched a cash management portfolio called StashAway Simple™ today and it definitely looks very attractive at first glance! The email I received this morning.


1.9% interest is huge without doing anything (salary crediting, giro, credit card spending, etc.) and can be used as an additional savings account once people have maxed out their main savings account (You can read how we maximize our Multiplier account here - DBS Multiplier + SSBs + Joint Account = Higher Interest!). More so after Citi MaxiGain got nerf and it has higher interest and is more liquid than SSB. Having said that, at the back of my skeptical mind, I got to check it out in detail.


I logged in to my account and see StashAway Simple™ - Earn 1.9%, no lock-up, no catch. Clicking "Get Started" and I was shown this page.


From here, we can see that the money that is "deposited" to this account will be invested in these 2 funds - LionGlobal SGD Enhanced Liquidity Fund and LionGlobal SGD Money Market Fund. It is interesting to note that that interest will be accrued and reflected on a daily basis and not based on what the bank does - daily average balance. You will also receive a rebate on a quarterly basis.


After creating an account, similar to all its portfolio, one will be able to look at the breakdown of the assets and we can see that the 2 funds are weighted 50% each. Here comes the weird part, the returns for both funds are lesser than 1.9%, so how are they providing a 1.9% projected return even if there are no fees? Honestly, I have no idea but my guess is they might be topping up the difference in order to capture more users (those that are more risk-averse) and eventually, these people will also invest on the same platform by transferring the money to the other portfolio. According to Amanda's response at the end of the article, StashAway is providing a 100% rebate on the fees to provide a higher return.


Another thing that I would like to point out is since this isn't really a savings account and the underlying are funds, there will be volatility or the capital isn't guaranteed. LionGlobal SGD Enhanced Liquidity Fund is a pretty new fund (inception date: 30 Nov 2018) so let's just ignore that first. On the other hand, LionGlobal SGD Money Market Fund has a much longer history, if you head over to the fund page, you will be able to download their historical pricing from 01 Sep 2009.


Using a simple formula on excel to compare today's price against yesterday's price, one will be able to see the volatility of the fund prices (not much but it is definitely there). In addition, it is unclear how the fees will work, do they deduct first and refund every quarter since it was stated above that there will be a rebate every quarter.

Regardless, we will not be using it because we do not really have much spare cash lying around and our Multiplier accounts are nowhere near the limit. If you have spare cash and do not mind the volatility or are already investing in these funds on other platforms (the banks, dollardex, fundsupermart, etc.), it is definitely better to switch over to StashAway Simple™.

### Updated with Amanda's response (she is the Head of Client Engagement & PR for StashAway)


Need a second opinion? Take a look at WhatCard's article - StashAway Simple: It is not that simple.

StashAway Referral Link for Our Readers
Here you go: KPO and CZM Referral Link

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)

Wednesday, November 13, 2019

Portfolio - October 2019

How was your 11.11? Did you manage to save money by not buying anything or save money by buying things cheaper? Anyway, we spent close $1k buying "essentials" and random stuff for our new house. According to Lazada, I am a "Savings Master" who had saved $902.78. lol.


Sharing the first (and most expensive) loot to be delivered - PRISM+ X300 Ultrawide Gaming Monitor. The irony is we are not even using it to game, CZM has been complaining that my laptop screen is too small for her to work. Happy wife, happy life.


The current price is $399 and we got it at $334 during flash sale + some voucher.


We also bought a fake Dyson - Dreame V9P Cordless Handheld Vacuum by Xiaomi because the real one is simply too expensive for us. This model is one of the more powerful fake Dyson with 20,000 Pa Suction and 60 minutes usage.


The current price is $219 and we got it at $176. Shall not bore you with our purchases. lol.

Our portfolio reached a new high as it increases by 4.30% to $438,957- $11,816.95 of capital injection and $6,285.25 of capital gain. The one in blue is the StashAway portfolio, green is SGX and the total is in black.


If you prefer to look at numbers, this is the raw data used to generate the above bar graph. These numbers are as of the last day of the month.


"Cash Flow" is the amount of money being injected/withdrawn from the portfolio (buying stocks = +ve cash flow while selling stocks and collecting dividends = -ve cash flow)

SOLD
None

We decided to let 2,000 Chip Eng Seng Rights expired.

BOUGHT
- Keppel DC REIT (1,900 units) @ $1.710
- Eagle Hospitality Trust USD (10,000 units) @ US$0.570

This was the first time I participated in a rights issue for a stock in my CDP (the majority of my stocks are with SCB in a custodian account). I had to head down to an ATM (troublesome) and there was an administrative fee of $2! Never had to pay a single cents for SCB. Another reason why I will recommend people new to investing to start an SCB online trading account. Anyway, we were allocated 315 rights which I exercised all of them and oversubscribed by another 3,685 units.

There are so many articles out there on Eagle Hospitality Trust so I think by now everyone knows what's going on. Having said that, do take a look at this interesting article by InvestmentMoat where he used Eagle Hospitality Trust as an example to showcase the psychological stress of being in the market - A Strategy to Avoid The Pain of Losses? Don’t Be Naive. We are pretty zen now and the volatility doesn't affect us :)

So why did I buy it? Ignoring the series of bad news and ASSUMING that they will still pay out the forecasted DPU of 6.54 cents in their prospectus, the dividend yield will be around 11.47% and I think it is worth the risk. That's it because we are not a trader and we will just ride the volatility.

Dividends
The total dividends collected this month is $1,349.85. The breakdown is as follows:

Company Symbol ExDate Shares Total
Suntec Real Estate Investment Trust - Units T82U 31-Oct-19 5,000 $118.25
Guocoland Limited F17 31-Oct-19 9,000 $630.00
Frasers Commercial Trust - Units ND8U 30-Oct-19 7,500 $179.97
CapitaLand Mall Trust - Units C38U 29-Oct-19 7,000 $214.20
Mapletree Commercial Trust N2IU 23-Oct-19 500 $14.65
Soilbuild Business Space REIT - Units SV3U 23-Oct-19 21,000 $192.78

Total dividends collected for 2019: $17,094.70
Average dividends per month for 2019: $‭1,709.47‬

StashAway

KPO

CZM

Capital: $24,500.00
Current: $‭‭27,195.94‬

You might be interested in previous months update too:
Portfolio Performance in 2018 - $354,145
Portfolio - January 2019 - $376,381
Portfolio - February 2019 - $379,814
Portfolio - March 2019 - $400,263
Portfolio - April 2019 - $400,263
Portfolio - May 2019 - $392,934
Portfolio - June 2019 - $415,611
Portfolio - July 2019 - $420,798
Portfolio - August 2019 - $421,644
- Portfolio - September 2019 - $420,854
- Portfolio - October 2019 - $438,957

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)