September is here. Summer is over and fall is coming once more. The festive season is coming but for some it might be a stressful period. The pandemic situation has not taken a turn or twist. It’s not going to be any better going forward. Things will change too.
StashAway has been rather stagnant but considering the environment, I think it is holding out well. SA seems to try to take a bet around China and their recovery by doing a rebalancing. Now, is that system or human driven I question. Shouldn’t it be systematic driven for a robo advisor instead of attempting to drive better returns. With an ERAA approach, these actions seems rather active. Only time will tell.
Repeating to myself that if Mr Market decides to go either way, it would matter that much to me. Why is that so? If Mr Market drops, then I will add on more to the portfolios. If you have not taken the first step, action early so that you can start doing this early and learn from any mistakes along the way. By now, I would have decide on the main Robo to stake my money with. SA is not quite the one but let’s see how it goes. The competition remains strong.
Retirement Portfolio A (risk-14%)
To be a little honest, I am quite bored of the returns for StashAway. This portfolio is my longest term portfolio for retirement. I felt that it could have done a lot better but I shall not look back and will pop in a little more when i contribute to my SRS account. The SRS account since first day deposit is currently at +4.33% as on 2 Sep 2021 (Time-weighted return). Oh well just +0.3% from July 2021. Performance wise, I think i is okay and also this is a super long term portfolio – I would say close to 25 years horizon so I’ll just leave it there.
In USD performance, that’s about +7.80% YTD (Time-weighted return). That’s quite a bit of FX i am losing out here. It increased by 0.9% from July last month and -0.8% from June. Then again, I wouldn’t sweat on the exchange rates since I am going to stay invested and into these portfolios. They are just a mean of reference as I look back at the performance. So, still high risk high returns? I think it’s more like, higher risk commensurate the higher returns but there is no guarantee.
Education Portfolio B (risk-16%)
This portfolio B is set out to be on a 15-18 year investment horizon. It is at +9.34% YTD on 2 Sep 2021 and It’s steady. It’s the same as the last time i measured during Dec 2020. I have been averaging in whenever there are market dips. The risk index is at 16% and I will adjust those risk levels as and when I feel that there is a risk on or off. For just a 2% risk increase, I see a better performance already. This month versus the last was +0.6%. Nothing to shout about really.
In USD, I’m looking at double digits +13.27% (Time-weighted returns). Again on the Forex rate as reference. This has increase by 1.2% month as compared to July.
Education Portfolio C (risk-20%)
For this portfolio, I look at this at shorter horizon of 12-15 years so I feel that I need to take on some risk to achieve my goals. This SA risk index is currently at 20% and will take on to be one of my riskiest portfolio. Return is at +16.78% YTD (Time-weighted return) since day one as at 2 Sep 2021. As compared to the last month, it is up by 1.2% but this is just a note to self and measure the monthly performance. Over time, more funds will be added to achieve the targeted invested goals. Two consecutive drop in performance for this portfolio In June and July while it is up for August.
In USD terms, we are looking at +20.98% (Time-weighted return). Looking great as usual. Although I feel that this isn’t exactly the year to take on higher risk for better returns. This has increased by 1.2% as compared to the previous month.
It is now more than one year since I started using StashAway. I still think that it has been a great supplement as a robo advisor. After using a few robo-advisors, I find that SA will play second fiddle to my Endowus Portfolio and true enough that fits exactly into how I plan it to be. Recent months, i’ve been thinking and I did not add on any regular monthly investing amount as I’m beginning to think twice about their strategy and if they have grown to a level where institutional belief is starting to take over instead of that pure robo fintech as compared to what they were in 2020.
StashAway does have their own advantages. They do hedge their portfolios against huge crashes and take a stand on some positions which I do like because a lot asset managers don’t and even though they talk big about macro. The gold move was bold but it protects the portfolio. Again, Rome wasn’t built in a day so I guess you need to safeguard some of your monies to future proof it.
To find out more about the pros and cons of using StashAway, do refer to my previous posts.
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The pictures were taken from the Stash Away website for this article.