This is slightly old news as the email (15th Aug 2019) and re-optimization (28th Aug 2019) has already happened but thought I will still blog about it.
We were pretty busy (Quick Update - Too Busy to Blog) during that period of time and I read through and proceeded with the re-optimization without taking any screenshots :( Anyway, I will not reinvent the wheel and you can read more in details on the new ETFs and re-optimization here:
- We've Added New Asset Classes and Geographies to Your Investments
- We're Re-Optimising Your Portfolios For New Economic Conditions
There is one thing I would like to point out is the highest risk profile for the balanced portfolio is now 22% if you did not realize. I also took the chance to change the risk profile for my SRS portfolio to 36% from 13% while CZM SRS portfolio became 14% from 13%. Although I did some analysis previously (New Strategy: StashAway + Supplementary Retirement Scheme (SRS)) and decided that 13% should be the most ideal, I decided to take on more risk for higher return because that is just a small amount that I can afford to lose (~0.25% of our net worth).
Let's look at the UI changes:
Portfolios - nothing much has changed
Performance - Addition of net deposits (Good, a lot clearer now). Removal of the breakdown of returns by investment and currency impact (Bad - lost visibility to the currency impact on returns) and the total return in percentage (Bad, need to click into the individual portfolio to see the returns in percentage).
Individual Portfolio, Overview - It shows 2 different returns now (Good, computation of return is complicated and can be biased, hence the more the better. lol).
What is Money-weighted Return?
Money-weighted Return (MWR) helps to gauge the effectiveness of an investor’s timing of deposits and withdrawals. It does this by including the effects of multiple cash flows by assigning a weight to each of your deposits and withdrawals. In other words, a deposit or withdrawal of $1,000 SGD has a lesser effect on your portfolio’s return figure than a deposit or withdrawal of $100,000 SGD. Before this change, we were displaying returns using the Modified Dietz Method, which is a version of MWR.
What is Time-weighted Return?
Time-weighted Return (TWR) is commonly-used in the financial industry, making it an easy metric to compare returns between different portfolio managers. TWR measures the portfolio manager’s ability to generate returns, not the effects of an investor’s deposit and withdrawal behaviours. It does this by tracking performance from the first deposit made into a portfolio.
Individual Portfolio, Assets - Better visualization of how your investments are diversified across different asset classes and geography.
I like it except for the part where the units are not displayed on the same screen and I have to click on individual ETF to see the units I have. Having said that, there are more information about each of the ETF and clicking on more information on the ETF will redirect you to etf.com which is pretty neat. In the past, this information on all the ETFs was at a single place including those that are not in your portfolio.
Individual Portfolio, Projections - This is my personal favorite! The projection is now showing a 75% probability instead of a 50% probability. I remember blogging about this 2 years ago on how 50% probability is a joke - Introduction to StashAway - Robo-Advisor/Automated Investing.
In order to increase the probability, the projected portfolio value will definitely drop. So do take a look and readjust your financial/retirement plan accordingly.
All in all, mostly good changes with clearer display of information and better visualization!
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 2019 - $16,051.10
StashAway - February 2019 - $17,397.81
StashAway - March 2019 - $18,780.96
StashAway - April 2019 - $19,702.85
StashAway - May 2019 - $20,823.09
StashAway - June 2019 - $22,031.43
StashAway - July 2019 - $23,486.36
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.)
We were pretty busy (Quick Update - Too Busy to Blog) during that period of time and I read through and proceeded with the re-optimization without taking any screenshots :( Anyway, I will not reinvent the wheel and you can read more in details on the new ETFs and re-optimization here:
- We've Added New Asset Classes and Geographies to Your Investments
- We're Re-Optimising Your Portfolios For New Economic Conditions
There is one thing I would like to point out is the highest risk profile for the balanced portfolio is now 22% if you did not realize. I also took the chance to change the risk profile for my SRS portfolio to 36% from 13% while CZM SRS portfolio became 14% from 13%. Although I did some analysis previously (New Strategy: StashAway + Supplementary Retirement Scheme (SRS)) and decided that 13% should be the most ideal, I decided to take on more risk for higher return because that is just a small amount that I can afford to lose (~0.25% of our net worth).
Let's look at the UI changes:
Portfolios - nothing much has changed
Performance - Addition of net deposits (Good, a lot clearer now). Removal of the breakdown of returns by investment and currency impact (Bad - lost visibility to the currency impact on returns) and the total return in percentage (Bad, need to click into the individual portfolio to see the returns in percentage).
Individual Portfolio, Overview - It shows 2 different returns now (Good, computation of return is complicated and can be biased, hence the more the better. lol).
 |
| Money-weighted return |
Money-weighted Return (MWR) helps to gauge the effectiveness of an investor’s timing of deposits and withdrawals. It does this by including the effects of multiple cash flows by assigning a weight to each of your deposits and withdrawals. In other words, a deposit or withdrawal of $1,000 SGD has a lesser effect on your portfolio’s return figure than a deposit or withdrawal of $100,000 SGD. Before this change, we were displaying returns using the Modified Dietz Method, which is a version of MWR.
 |
| Time-weighted return |
Time-weighted Return (TWR) is commonly-used in the financial industry, making it an easy metric to compare returns between different portfolio managers. TWR measures the portfolio manager’s ability to generate returns, not the effects of an investor’s deposit and withdrawal behaviours. It does this by tracking performance from the first deposit made into a portfolio.
Individual Portfolio, Assets - Better visualization of how your investments are diversified across different asset classes and geography.
I like it except for the part where the units are not displayed on the same screen and I have to click on individual ETF to see the units I have. Having said that, there are more information about each of the ETF and clicking on more information on the ETF will redirect you to etf.com which is pretty neat. In the past, this information on all the ETFs was at a single place including those that are not in your portfolio.
Individual Portfolio, Projections - This is my personal favorite! The projection is now showing a 75% probability instead of a 50% probability. I remember blogging about this 2 years ago on how 50% probability is a joke - Introduction to StashAway - Robo-Advisor/Automated Investing.
In order to increase the probability, the projected portfolio value will definitely drop. So do take a look and readjust your financial/retirement plan accordingly.
All in all, mostly good changes with clearer display of information and better visualization!
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 2019 - $16,051.10
StashAway - February 2019 - $17,397.81
StashAway - March 2019 - $18,780.96
StashAway - April 2019 - $19,702.85
StashAway - May 2019 - $20,823.09
StashAway - June 2019 - $22,031.43
StashAway - July 2019 - $23,486.36
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.)
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