StashAway - December 2020

The performance of StashAway's portfolios have been very impressive with double digits time-weighted return and XIRR (refer to below). If you compare it to one year ago (StashAway - January 2020) where all our portfolios were losing money, it has rebounded very strongly to what it is now. Based on my own experience, it seems that their portfolio have provided better returns when compared to the other robos we are using too. Having said that, we have not used Endowus (~1 year) and Syfe (<1 year) as long as StashAway (~3 years) so it might not be very accurate.

What's really stopping me from putting in more money is the estate tax issue which I have also blogged about previously. Interestingly, this area is so grey that there are 3 kinds of answers:

- Yes, you will be subjected to estate tax (article from EndowUs)

- No, you should be fine (FAQ from StashAway)

- Hey, nobody is paying and IRS doesn't know (article from CNBC)

Anyway, I have reached out to them to ask about the possibility of transferring portfolio/shares to another individual. I have 2 scenarios in mind:

1. If I die, transfer the portfolio to CZM and let her decide if she wants to continue/cash out

2. Invest for Baby Ong till she reaches 18 and transfers the portfolio to her then.

If the possibility of transferring is there, we might invest more money through StashAway. Shall keep you guys updated. 

Investment for this month:
KPO and CZM Cash - StashAway Risk Index 22% - $1,000
KPO SRS - StashAway Risk Index 36% - $740
CZM SRS - StashAway Risk Index 14% - $250

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

KPO

CZM

Based on the statement (31 December 2020), our total investment is ‭$56,721.26! KPO gains $1,200.32 and CZM gains $79.32 for the month.

As of 21 January 2021, these are our portfolio performance:

KPO and CZM Cash - StashAway Risk Index 22%: $‭39,498.15 (41.85% - Capital: $31,000)

KPO SRS - StashAway Risk Index 36%: $14,023.54 (47.76% - Capital: $11,150)

CZM SRS - StashAway Risk Index 14%: $6,144.01 (27.73% - Capital: $5,500)

2. PORTFOLIO DETAILS 
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%

3. FEE CALCULATIONS

The fee stated is based on the monthly-average assets SGD ($25,000.00 x 0.8% + $23,898.64 x 0.7%) / 366 days * 31 days = $31.11.

The fee stated is based on the monthly-average assets SGD $5,786.56 x 0.8% / 366 days * 31 days = $3.92. 

StocksCafe

Evan (founder of StocksCafe) made an improvement where one can now benchmark their portfolio against multiple indexes/ETFs. Looking at the time-weighted return (13.23%) for the year 2020, we can see that StashAway Risk Index 22% is outperforming STI ETF (including fees) and lost to both SPY and IWDA slightly.

If we compare across the years, StashAway's portfolio is winning by a huge margin (42.97%) except losing to SPY (55.04%) and IWDA (46.20%). In addition, it has the lowest volatility and max drawdown. This is what StashAway meant by reducing risk and maximizing the return. 

The annualized return/XIRR of the portfolio is very impressive too at 14.68%. Using the Rule of 72, it means that the StashAway portfolio will double our money in 72 / 14.68 ~ 4.9 years. In comparison, the same money if left in the bank account at 2% interest rate will take 72 / 2 ~ 36 years to double.

Since there was a reader that asked about StashAway Risk Index 36% performance against other benchmarks, I shall add it here too.

The portfolio currently has a higher time-weighted return (49.02%) when compared against all the indexes (STI, SPY and IWDA) but it is also clear that it is more risky in the sense that both its volatility/max drawdown are much higher when you compare against the benchmark and StashAway Risk Index 22% portfolio. The XIRR is 33.82% but it looks pretty skewed by 2021. Using the same rule, our money will doubled in 72 / 33.82 ~ 2.12 years.

Which is the best? Only time will tell :)

Anyway, if you are interested in signing up for StashAway, do use our referral link - KPO and CZM Referral Link. You will get $10,000 free management fees for 6 months and we will get $16!

If you want to extract those transactions information from StashAway, do take a look at this article - StashAway Transactions Parser.

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

You might be interested in previous months update too:

- StashAway Withholding Tax Reimbursement FY 2019
- StashAway - January 2020 - $31,742.42
- StashAway - February 2020 - $31,499.69‬
- StashAway - March 2020 - $30,934.95‬
- StashAway - April 2020 - ‭$34,830.73‬
- StashAway - May 2020 - $37,298.09‬
- StashAway - June 2020 - $39,931.79
- StashAway - July 2020 - $44,125.18
- StashAway - August 2020 - $46,900.18
- StashAway - September 2020 - $47,850.22

- StashAway - October 2020 - $49,892.40

- StashAway - November 2020 - $53,451.62

- StashAway - December 2020 - $56,721.26

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
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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.)