$$$ KPO and CZM $$$: StashAway - March 2018

Friday, April 6, 2018

StashAway - March 2018

StashAway managed to raise another USD $5.3 million in their Series A funding round recently - Singapore's StashAway raises US$5.3M Series A funding round, will launch in new markets. This brings their total funding to SGD $11.1 million which is definitely an excellent piece of news.

One of the main concern we all have is the possibility of the robo advisors going bankrupt/closing down which can be a showstopper preventing one from investing through them. Let's admit it, Singapore is a small market, hence the cost of investing through robo advisors are more expensive as compared to the United States or Europe. Expanding to other markets/countries will be beneficial in the long run. We all have a 50% chance of getting SGD $X in the Yth years so StashAway has to be profitable/operating till then.

We have decided to invest more money (from $500 to $1,000 monthly) through StashAway and I blogged about it here - Automating Capital Growth Through StashAway.

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

Based on the statement (31 Mar 2018), we lost -$62.58.

As of 4 Apr 2018, we lost -$67.65 mostly due to the currency impact -$91.39.

SGD time-weighted returns: -2.6%
USD time-weighted returns: 0.9%



Did you notice something very different this month? StashAway has finally decided to provide the exchange rate that was used to convert our SGD to USD!

SGD $990.00 converted to USD $756.24
Exchange Rate: 1.309072


No fee till August 2018 because I recommended more friends. The projected fee (assuming no referral) would be the monthly-average assets SGD $5,173.25 x 0.8% / 365 days * 31 days = $3.51

StashAway VS STI ETF
Since there is no way to compare the performances among the robo-advisors, I came out with a spreadsheet to track our StashAway portfolio performance (General Investing - Risk Level 28) against that of STI ETF which I will be updating on a monthly basis. For simplicity, I shall assume that one can either invest in Nikko STI ETF using POSB Invest-Saver or invest in Nikko STI ETF/SPDR STI ETF using SCB Priority Online Trading (no minimum commission). These would be the opportunity costs while we continue to invest in StashAway.

Apart from the absolute P&L, we should also look at the Reward-to-Risk Ratio where risk/volatility is taken into account. For more information, do read StashAway Clarifications - Reward-to-Risk Ratio. StashAway has the highest ratio of 1.25 which is significantly higher than the other 2 STI ETFs (< 0.4). Let me quote Freddy Lim (Co-Founder & Chief Investment Officer of StashAway), "for every dollar of risk taken, StashAway P28 is producing 1.25 times the return".

This month commentary: I have added another "model" to the comparison table - investing in Nikko STI ETF using SCB Priority Online Trading (no minimum commission). Not surprising at all, all the investments are in red/losing money! StashAway continues to be the biggest loser similar to last month - February 2018.

I believe there is a need to redo/regenerate the volatility used to compute the Reward-to-Risk Ratio. Do take it with a pinch of salt for now. I have been compiling some data in order to do so :)

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

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