$$$ KPO and CZM $$$: StashAway - February 2019

Saturday, March 23, 2019

StashAway - February 2019

CZM has successfully sold my DJI Phantom 3 Advanced Drone for one-third of its original price this week and it felt like a piece of me went missing :'(

The drone was like her greatest enemy because I spent a huge amount of money on it (~$1.6k) and the utilization is really low. The number of flights can be counted with 2 hands since 2016? In addition, whenever we travelled overseas, it would always take up half of the luggage, only for me to fly 1/2 times.

Anyway, we have 3 portfolios now due to our new strategy - New Strategy: StashAway + Supplementary Retirement Scheme (SRS):
KPO and CZM Cash - StashAway Risk Index 20%
KPO SRS - StashAway Risk Index 13%
CZM SRS - StashAway Risk Index 13%

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

Based on the statement (28 February 2019), KPO made $50.94 and CZM made $0.16.


As of 20 March 2019, the market has recovered quite significantly!
KPO: $533.12 (+6.8% - Capital: $17,000)
CZM: $8.69 (+2.5% - Capital: $500)

Note that these are reported in USD.

KPO and CZM Cash - StashAway Risk Index 20%
KPO SRS - StashAway Risk Index 13%
CZM SRS - StashAway Risk Index 13%
Our StashAway SRS accounts are showing a slight difference now due to fees being deducted from my account.


I mentioned this last month and it has been fixed looking at my March transactions.

KPO and CZM Cash - StashAway Risk Index 20%:
SGD $495.00 converted to USD $363.82
Exchange Rate: 1.3605 (1.3552 last month)

USD $10.25 converted to SGD $13.91
Exchange Rate: 1.3571 (1.3519 last month)

This "inefficiency" caused $0.03577 (10.25 * (495.00 / 363.82) - 13.91 = $0.03577) to disappear into thin air just like that. It may be a small amount but as the portfolio gets larger, it will all add up.

KPO SRS - StashAway Risk Index 13%:
SGD $247.30 converted to USD $183.20
Exchange Rate: 1.3499 (1.3523 last month)

CZM SRS - StashAway Risk Index 13%:
SGD $247.46 converted to USD $183.32
Exchange Rate: 1.3499 (1.3523 last month)

Interestingly, this looks more "correct" now. I was always under the impression that 99% will be converted to USD while 1% will remain in SGD until the above issue happened.


The fee stated is based on the monthly-average assets SGD $16,360.48 x 0.8% / 365 days * 28 days = $10.04 which is definitely incorrect. It should have been ($16,360.48 - $10,000) x 0.8% / 365 days * 28 days = $3.90. I guessed the referral promotion did not kick in so I sent an email to support and was given a $10 credit.

No fee for CZM for the first 6 months.

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 is updated till 21st March 2019 and is based on only 1 of our portfolio - KPO and CZM Cash - StashAway Risk Index 20%.

This month commentary: 
Interestingly, StashAway continues to be the only investment that is green. 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 - December 2018
StashAway - January 2019 - $16,051.10
StashAway - February 2019 - $17,397.81

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4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)

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