StashAway Portfolio Reoptimisation

I received an email from StashAway last Friday (15th December 2017) titled "Your portfolio has been re-optimised".

If you use StashAway and missed the email, you might want to click on this link to see what has been reoptimised in your portfolio.

Let's take a look at what has changed for ours (General Investing - Highest Risk Level at 28)! Do note that the changes in allocations will vary across portfolios due to risk preferences. As stated, the main objective of this reoptimisation is to "harness the undervaluations of gold (GLD) and consumer staples (XLP)".

There are 6 changes in our portfolio as highlighted by the tiny blue dot on the left, next to the respective ETF. We can see that both the gold ETF (GLD) and consumer staples (XLP) have been increased significantly while the other 4 ETFs - technology (XLK), TIPS bond (TIP), 20+ year treasury bond (TLT) and MSCI all country Asia excluding Japan (AAXJ) have been reduced. Do note that once you acknowledge/click "OK", you will not be able to access this information again.

So the next question is why? In fact, StashAway has given a heads up 3 days before (12th December 2017) the reoptimisation. The information can be found in the email titled "Monthly Market Insights from StashAway's CIO" by Freddy Lim and the article is published on their website/blog as well. I will highly recommend you to read his monthly update as it gives a quick update on what's happening to the current economy/market and how it would affect our StashAway portfolio.  

Screenshot is taken from https://www.stashaway.sg/r/cio-insights-november-2017

In summary, there is a valuation gap between the asset (gold and consumer staples) vs the economic fundamentals based on their complicated modeling. Do read the article for more information!

This is something which I like, the ability to reoptimise our portfolio at no additional cost. Indeed investing redefined.

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