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

Monday, December 24, 2018

StashAway - November 2018

This is an extremely overdue post too! Blogging about our honeymoon was definitely more fun than the red red market/expenses. On top of that, I bought a new PS4 game so you can guess where my time went >.<"

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

Based on the statement (31 November 2018), we gained $31.75.

As of 23 December 2018, the total return went negative to -$653.99! We lost -$917.07 from investment returns with a currency impact of  $263.08

SGD time-weighted returns: -10.0%
USD time-weighted returns: -13.7%

Wow. I guess this is the first time I see a double-digit loss from StashAway. This kind of loss is enough to spook a lot of new investors but hey, it is still a better investment than Bitcoin/cryptocurrency. Besides, what is -10% compared to -64% (Ezion - Bleeding Stopped!)?

I think the big question now is are we going to continue our investment with StashAway? Of course! Generally, there are 2 schools of thought - one will predict the market is going to crash, hold cash, cash is king, etc... the other will not make any prediction but simply stay invested throughout and that's us. If you find yourself losing sleep/being distracted, it might be better for you to stay away from the market. In case you are wondering, I believe all the robo would have a negative return for the same investment timeframe.



SGD $990.00 converted to USD $716.69 (USD $716.72 last month)
Exchange Rate:  1.3813 (1.3813 last month)


The fee stated is based on the monthly-average assets SGD $13,319.18 x 0.8% / 365 days * 30 days = $8.76

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: 
Like I mentioned above, all the investments would generally be in red. For the same amount of money invested, one will be losing lesser money in StashAway which is due to its diversification into other assets (bonds and gold). Going forward it will be even more interesting when the commissions/fees incurred by StashAway exceed that of POSB Invest-Saver. This will be a battle between cheaper/lesser fees and asset allocation/diversification...

My plan was to compile the daily amount and build a dashboard that will show the volatility/risk but I am just too lazy. The good news is that StocksCafe now allows one to add fractional shares and it already has lots of reporting tools! Why reinvent the wheel?

Looking at the time-weighted return, we can see that StashAway is "outperforming" the STI ETF. In addition, it has 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 2018
StashAway - February 2018
StashAway - March 2018
StashAway - April 2018
StashAway - May 2018
StashAway - June 2018
StashAway - July 2018
StashAway - August 2018 + An Unpleasant Experience
StashAway - September 2018
StashAway - October 2018

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