$$$ KPO and CZM $$$: StashAway - January 2020

Tuesday, March 17, 2020

StashAway - January 2020

Freddy wrote another interesting piece of insight here - Markets Remain Turbulent as the World Fights a Pandemic which explains why there was no re-optimization given the current state of the market and what should one manage their investment.

According to him, a bear market doesn’t start with a bang. Instead, a bear market is a gradual decline of 20% and more in asset prices over a prolonged period of time and investors have ample opportunities to react to the changing market environment. Given that the latest decline happened in a span of less than two weeks, what we’re really witnessing is a correction that has morphed into a market crash.

The data suggests that we are in a market crash, not a bear market. This means that we expect the market underperformance to be short-lived, not lasting more than a few months. As such, we’re managing your portfolios through the crash by keeping your asset allocations unchanged. 

When you have a long-term view of your investments and you’ve already prepared your investments to suit your risk appetite and your financial goals, it’s easier to maintain a level head to ride out the current uncertainty. If you react to the short-term noise and sell your investments, you’ll struggle to get back into the market when the recovery happens, and you will end up pocketing losses. Instead, focus on the long-term and take advantage of the dip in the markets by continuing to dollar-cost-average into the markets.

Do take a look at his article for more information.

Anyway, we have 3 portfolios on 2 accounts now due to our new strategy - New Strategy: StashAway + Supplementary Retirement Scheme (SRS):
KPO and CZM Cash - StashAway Risk Index 22%
KPO SRS - StashAway Risk Index 36%
CZM SRS - StashAway Risk Index 14%

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



Based on the statement (31 Jan 2020), KPO made $‭‭‭140.81 and CZM made $‭‭‭35.11 for the month.

As of 17 Mar 2020, these are our portfolio performance:

KPO and CZM Cash - StashAway Risk Index 22%: $‭21,487.89 (-8.19% - Capital: $22,500)

KPO SRS - StashAway Risk Index 36%: $3,526.30 (-34.89% - Capital: $4,250)

CZM SRS - StashAway Risk Index 14%: $2,819.15 (-11.68% - Capital: $3,000)

From here, you can see the difference in volatility/losses based on both our SRS accounts which started around the same time but with vastly different risk.

Note that these are reported in USD.

KPO and CZM Cash - StashAway Risk Index 22%

KPO SRS - StashAway Risk Index 36%

CZM SRS - StashAway Risk Index 14%


The fee stated is based on the monthly-average assets SGD $13,367.34 x 0.8% / 366 days * 31 days = $9.06.

The fee stated is based on the monthly-average assets SGD $2,675.21 x 0.8% / 366 days * 30 days = $1.81.

We used Grab points to redeem for StashAway credits last year (1,200 points for $5 credit) but I believe it is no longer available.


Looking at the time-weighted return (-16.30%), we can see that StashAway Risk Index 22% is "outperforming" the STI ETF (including fees) in the sense that it is not losing as much. In addition, it has a lower max drawdown. Interestingly, this is the first time we see higher volatility for the StashAway portfolio.

Similarly, StashAway Risk Index 22% is also outperforming the SPY (SPDR S&P 500 ETF Trust) with much lower volatility and max drawdown.

Which is the best? Only time will tell :)

StashAway Referral Link for Our Readers
Here you go: KPO and CZM Referral Link

If you are interested in the smart portfolio tracker (StocksCafe) which I am using as shown above, sign up using my link for a discounted rate :) Refer to our Referrals page for more information.

You might be interested in previous months update too:
- StashAway - January 2020 - $31,742.42

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