StashAway - January 2021

StashAway recently announced that they have achieved a new and very significant milestone - US$1 Billion AUM (Assets Under Management). What's more impressive is that they achieved it at a much faster pace than the world’s largest digital wealth managers, Betterment and Wealthfront. Read this article for more information - StashAway Outpaces Rivals. 

In my opinion, this gives us (the investors) a lot more confidence that they are going to "survive" longer. When all these robo-advisors first launched, one of the biggest concerns everyone had was what will happen to our money if they close down and Smartly had already shown it to us. Some of you may be wondering if StashAway is profitable yet? Honestly, impossible to tell unless you are one of the insiders/investors. We do not know how much cash management (no fees) contributed to that 1 billion and I have seen comments like "they making 8 million a year!" which is definitely not true because of tier pricing. Anyway, no point speculating too much and let's just look forward to their next milestone/feature!

Investment for this month:
KPO and CZM Cash - StashAway Risk Index 22% - $1,000
KPO SRS - StashAway Risk Index 36% - $638
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 January 2021), our total investment is ‭$59,991.38! KPO gains $1,345.30 and CZM gains $36.82 for the month.

As of 5 February 2021, these are our portfolio performance:

KPO and CZM Cash - StashAway Risk Index 22%: $‭40,596.84 (43.98% - Capital: $31,500)

KPO SRS - StashAway Risk Index 36%: $14,983.13 (50.94% - Capital: $11,788)

CZM SRS - StashAway Risk Index 14%: $6,432.05 (28.46% - Capital: $5,750)

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% + $25,000.00 x 0.7% + $2,574.36 x 0.6%) / 365 days * 31 days = $33.16.

The fee stated is based on the monthly-average assets SGD $6,130.11 x 0.8% / 365 days * 31 days = $4.17. 

StocksCafe

StashAway Risk Index 22%

Evan (founder of StocksCafe) made an improvement where one can now benchmark their portfolio against multiple indexes/ETFs. Looking at the time-weighted return (5.71%) for the year 2021, we can see that StashAway Risk Index 22% is outperforming all of our benchmarks.

If we compare across the years, StashAway's portfolio is winning by a huge margin (45.24%) except losing to SPY (57.85%) and IWDA (48.18%). 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 15.30%. Using the Rule of 72, it means that the StashAway portfolio will double our money in 72 / 15.30 ~ 4.7 years. In comparison, the same money if left in the bank account at 2% interest rate will take 72 / 2 ~ 36 years to double.

StashAway Risk Index 36%

As for StashAway Risk Index 36%, the portfolio currently has a higher time-weighted return (52.36%) 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 35.54% but it looks pretty skewed by 2021. Using the same rule, our money will double in 72 / 35.54 ~ 2.03 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 - December 2020 - $56,721.26

- StashAway - January 2021 - $59,991.38

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.)