StashAway Simple™ is a cash management portfolio that earns you competitive returns on any amount for however long you want. Whether you simply want to earn a competitive rate, or you want to move your money into investments over time, now you can all in one place.
StashAway Simple™ is offering 1.9% p.a for this product and at a first glance by their email, I thought it’s a saving plan that you place money and just leave it there without any investment portion.
Today got some time available and decided to check what this product is and the first thing I saw is that the 1.9% is base on Projected Returns.
I explore more thru the platform and saw that the product funds will be invested in 2 funds with 50% weightage each. The funds are LionGlobal SGD Enhanced Liquidity Fund and LionGlobal SGD Money Market Fund. You can click on the products to understand more.
From the above, we can see that the 1.9% is not guaranteed and there will be a risk of loss in the investment. How Stashaway safeguards your money is by Stashaway index and this product has a risk index of 1.7% which means that every given year, there is a 99% chance you won’t lose more than 1.7% of your portfolio value.
Now, lets see how Stashaway get the 1.9% projection.
StashAway Simple™ allocates 50% of its assets to the LionGlobal SGD Money Market Fund (“MMF”) and 50% to LionGlobal SGD Enhanced Liquidity Fund SGD Class I Acc (“ELF”).
The math on the projected rate of returns is quite straightforward: StashAway Simple™ returns are the sum of the amortised yield from the underlying funds, minus fees charged by the fund managers, plus any rebates.
We’ll review the projected rate weekly, and in the case that there is a variation of the projected rate of 1 decimal point or more, we’ll notify our clients if there is any variation with 1 decimal point precision (i.e., 1.x%)
As of 18 November 2019, the projections are as follows.
On a safer side, I think the actual returns will be around in the 1.5% range and it will be a good product for those that max out on the bank’s higher interest saving accounts like DBS Multiplier especially those that completed their SSB bond ladder. Stashaway Simple also allows you to withdraw your funds anytime or switch to your other portfolios within Stashaway.