Do take a look at our New Strategy: StashAway + Supplementary Retirement Scheme (SRS) which was pretty timely as I will be in the 11.5% income tax bracket for the year 2019 after receiving my new compensation/salary!
1. ACCOUNT SUMMARY (as of the last day of the month)
Based on the statement (31 December 2018), we lost $451.42.
As of 30 January 2019, the market has recovered quite a bit and the total return became -$75.42. We lost -$90.25 from investment returns with a currency impact of $14.83.
2. PORTFOLIO DETAILS
3. TRANSACTIONS
I realized that there was a USD to SGD conversion. I always had the impression that since 1% of SGD is not converted to USD and the fees are only 0.8%, as long as I continue to invest/pump in fresh fund, such conversion should not happen. Guess I have underestimated the fees and took the percentages too literally.
SGD $990.00 converted to USD $721.55 (USD $716.69 last month)
Exchange Rate: 1.3720 (1.3813 last month)
USD $2.41 converted to SGD $3.30
Exchange Rate: 1.3693
4. FEE CALCULATIONS
The fee stated is based on the monthly-average assets SGD $13,643.19 x 0.8% / 365 days * 31 days = $9.27
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:
All of the investments are still in the 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...
Looking at the time-weighted return, we can see that StashAway is "outperforming" the STI ETF (both excluding fees). 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
StashAway - November 2018
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.)
1. ACCOUNT SUMMARY (as of the last day of the month)
Based on the statement (31 December 2018), we lost $451.42.
As of 30 January 2019, the market has recovered quite a bit and the total return became -$75.42. We lost -$90.25 from investment returns with a currency impact of $14.83.
2. PORTFOLIO DETAILS
3. TRANSACTIONS
I realized that there was a USD to SGD conversion. I always had the impression that since 1% of SGD is not converted to USD and the fees are only 0.8%, as long as I continue to invest/pump in fresh fund, such conversion should not happen. Guess I have underestimated the fees and took the percentages too literally.
SGD $990.00 converted to USD $721.55 (USD $716.69 last month)
Exchange Rate: 1.3720 (1.3813 last month)
USD $2.41 converted to SGD $3.30
Exchange Rate: 1.3693
4. FEE CALCULATIONS
The fee stated is based on the monthly-average assets SGD $13,643.19 x 0.8% / 365 days * 31 days = $9.27
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:
All of the investments are still in the 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...
StocksCafe
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
StashAway - November 2018
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.)
No comments:
Post a Comment