Stashaway discussion thread

[Shiny Things]

Thanks for the link!

One thing that I do not like about all 3 firms is that they give very little insights on what their portfolio allocations. What are the expected % across the ETFs? Other certain economic conditions, how will these allocations change?

All companies (Stashaway less so) are not giving much about their allocation weightage. I seriously think they underestimate how cautious/cynical Singaporeans are if they think they can get away with this level of engagement with investors

Yeah, this is a really good point. Most robo-advisors are very open with how they invest: Wealthfront lays it all out in their whitepaper, and Vanguard (which isn't really a robo-advisor, but offers similar blended portfolios) even tells you exactly what funds and what proportions go into their "target retirement" funds. You can't get away with waving a magic wand and saying "oh our portfolios are secret".

I mean, ffs, your portfolios stop being secret as soon as one of your clients takes a screenshot of their portfolio and posts it to Twitter.

If a robo-advisor isn't doing that, they've got a problem.

 

[w1rbelw1nd]

Thanks ST for the link, I would have done my portfolio allocation using the same principles/methodolgy that wealth front do it, if I have the resources and capabilities to!

I believe this is the minimum that robo advisors should try to inform their clients on, highly recommend that investors use it as a benchmark for the local players.

Yeah, this is a really good point. Most robo-advisors are very open with how they invest: Wealthfront lays it all out in their whitepaper, and Vanguard (which isn't really a robo-advisor, but offers similar blended portfolios) even tells you exactly what funds and what proportions go into their "target retirement" funds. You can't get away with waving a magic wand and saying "oh our portfolios are secret".

I mean, ffs, your portfolios stop being secret as soon as one of your clients takes a screenshot of their portfolio and posts it to Twitter.

If a robo-advisor isn't doing that, they've got a problem.

 

[w1rbelw1nd]

Isnt there a risk of back-tested algorithm?

For example in the case of LTCM?

Back testing is just a way of running simulations of returns against historical returns. There is no innate risk to "running simulations", it is a way to some extent validate certain assumptions made.

LTCM is, imo, a case of over-leveraging for small arbitrage. Once the assumptions are wrong, they fail big time.

 

[w1rbelw1nd]

Isnt there a risk of back-tested algorithm?

For example in the case of LTCM?

Back testing is just a way of running simulations of returns against historical returns. There is no innate risk to "running simulations", it is a way to some extent validate certain assumptions made.

LTCM is, imo, a case of over-leveraging for small arbitrage. Once the assumptions are wrong, they fail big time.

 

[chopra]

any comparison between them n es3? for singaporean retiring in singapore. ie using SGD denomination.

 

[Amigogo]

Into stashaway and smartly at the same time. Only putting 300 monthly into each. I just look upon it as some side saving. Majority of my money still into SGX reits and business trust.

hows stashaway working for you ?

 

[blurpandasg2014]

How's the returns so far

 

[w1rbelw1nd]

How's the returns so far

Tracking index I guess? What are you expecting with an investment strategy that tracks index? Or what are you expecting for an answer?

Anyway, I also dont believe that there is anyway that either Stash/Smartly is able to prove any outperformance now is due to their "superior asset allocation/reblanacing strategy"

Short term wise, it is extremely easy to beat benchmark returns
Long term wise, very difficult.

I sure as hell not going to put my money into a robo-investor that is not able to clearly articulate and prove its advantage, since I probably have to give them a long period of time to prove their worth, to be fair to them.

If, as an individual, I can think of working out a "world index replicated" mix of ETFs that can reduce dividend witholding tax paid, I would have expected that a robo-advisor would have considered that tax perspective and implemented in a more cost efficient way, since there is economies of scale. But nope, these guys uses arguably the worst ETF domiciliation possible for Singapore investors.

Wouldnt even bother trying for now.

 

[w1rbelw1nd]

https://www.facebook.com/StashAwayAPAC/videos/1354494711363937/

02:10 What happens with your money if something were to happen to StashAway?
04:17 MAS compliance
06:00 What does our MAS license mean for how we manage your money?
09:20 What's StashAway's minimum balance and are there flexible deposit plans?
11:51 Why having multiple portfolios gives you more flexibility
12:52 Currency hedging and currency exposure
18:57 Economic outlook for 2018
20:46 Currency exposure USD/SGD
23:30 Why are we not invested in the STI?
24:11 How we select asset clases and ETFs?
27:21 StashAway's unique exposure to government bonds; yield curve strategy
29:55 Does hedging FX matter in the long run?
33:36 Returns compared to other robos, and other differentiators
36:42 Risk and Return
38:16 StashAway's emphasis on technology
43:43 Why shouldn't I just invet in ETFs myself?
49:33 Three pillars of ERAA, StashAway's differentiated investment framework

For those who are interested to understand their strategy. Seems like they are taking huge active "bets" in terms of sector/geographical exposure. Interesting to find out how they actually fare with trading cost.

 

[w1rbelw1nd]

How's the returns so far

Based on the video:

Most conservative portfolio -YTD 7.1% (potential 6.5% loss for 99% VAR)
Most aggresive portfolio - YTD 13.4% (potential 20% loss for 99% VAR)

 

[flyersummer]

current my portfolio in stashaway returns 0.7% in USD terms.
chose moderately aggressive.

 

[revhappy]

My friend was telling me, that stashaway just a week back rebalanced into gold etf 6%. I think that was perfect timing.

If they are able to time this perfectly, then I think they are worth a look.

Maybe you can invest a minimum in stashaway and then the replicate their strategy manually for the rest of your portfolio? This way you save on their % of AUM fees?

Sent from Xiaomi REDMI NOTE 4 using GAGT

 

[stam]

current my portfolio in stashaway returns 0.7% in USD terms.
chose moderately aggressive.

YTD? 0.7%?

Posted with My iPhone X HardwareZone Forums app

 

[match89]

i believe his portfolio is less than 2 weeks old..

YTD? 0.7%?

Posted with My iPhone X HardwareZone Forums app

 

[potshot]

my investment has been stagnant for a few months

 

[leonaheidern]

I put 1200 sgd each into smartly and stashaway

Stashaway is loosing 10 dollars but at one point smartly earned me 10.( It's currently loosing 1.94 SGD) .

This is for the period of two months. Started Nov 7th

Not putting anymore than this

The way I look at it stashaway has quite the heafty comission fee of 0.65 for loosing me 10 dollars.

The smartly 1.94 was their comission fee. So at least smartly went up for a period.

 

[potshot]

I put 1200 sgd each into smartly and stashaway

Stashaway is loosing 10 dollars but at one point smartly earned me 10.( It's currently loosing 1.94 SGD) .

This is for the period of two months. Started Nov 7th

Not putting anymore than this

The way I look at it stashaway has quite the heafty comission fee of 0.65 for loosing me 10 dollars.

The smartly 1.94 was their comission fee. So at least smartly went up for a period.

i think it's a exponential model that they're trying to sell; the more you put, the higher your profit to capital ratio

i put $1000 before like no gain, but once i put another $1000 i gain a $20+

 

[w1rbelw1nd]

I put 1200 sgd each into smartly and stashaway

Stashaway is loosing 10 dollars but at one point smartly earned me 10.( It's currently loosing 1.94 SGD) .

This is for the period of two months. Started Nov 7th

Not putting anymore than this

The way I look at it stashaway has quite the heafty comission fee of 0.65 for loosing me 10 dollars.

The smartly 1.94 was their comission fee. So at least smartly went up for a period.

i think it's a exponential model that they're trying to sell; the more you put, the higher your profit to capital ratio

i put $1000 before like no gain, but once i put another $1000 i gain a $20+

Comments like this.... I wonder what either platforms have taught their users/customers on long term investing and expectations of short term returns...

 

[KinoChoco]

Yo, anyone can pm me their Stashaway referral link? Wanna sign up.

 

[blue_ice1985]

Have you started investing with StashAway yet? Sign up with my link and we'll both get up to $10,000 SGD managed for free for 6 months! https://www.stashaway.sg/referrals/waileoncd4b

Use mine

Yo, anyone can pm me their Stashaway referral link? Wanna sign up.