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Amanda Ong

StashAway is a digital wealth manager, that empowers you to reach your financial goals.

Amanda Ong

Head Of Client Experience & PR at Stashaway

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StashAway is a digital wealth manager, that empowers you to reach your financial goals.

Credentials

Head Of Client Experience & PR at Stashaway

Amanda Ong

Head Of Client Experience & PR at Stashaway

  • Answers (28)
  • Questions (0)
  • Reviews (0)

Robo-Advisors

Investments

StashAway

AutoWealth

What is the difference between the custodian account for Stashaway and Autowealth?
Amanda Ong
Amanda Ong, Head Of Client Experience & PR at Stashaway
Level 5. Genius
Answered on 26 Jun 2020
Hi there, This is a great question! We have a Capital Markets Services License for Retail Fund Manageemnt from the MAS. We decided to get a license with a stricter capital, team experience, compliance and audit requirements (vs a Financial Advisor one) as we felt that it was important to build StashAway on solid foundation that can provide the necessary peace of mind to our customers. You can read about our license on MAS website here. Autowealth does so through SAXO, and you can check SAXO’s license on MAS website here, so that you can drive your own conclusions: both StashAway and SAXO have CMS license for Fund Management and Dealing in Capital Markets Products. As we have a CMS license, like Saxo, we're able to do the segregation ourselves. However, unlike SAXO, StashAway does not have a custodial license, and that’s why our customers’ assets are protected by the custodian relationship with SAXO and their sub-custodian institutions (HSBC for cash and SG securities and Citibank for US securities), such that those funds are kept separate and un-mingled with StashAway’s finances. If you have any further questions, feel free to reach out to us at [email protected] and we'd be happy to clarify further the points I've mentioned above.
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Investments

StashAway

Syfe

Robo-Advisors

I’ve been investing into stashaway and Syfe but what if they decide to optimise the portfolio?
Amanda Ong
Amanda Ong, Head Of Client Experience & PR at Stashaway
Level 5. Genius
Answered on 09 May 2020
Hi there, I'm glad to hear you've been sticking to your dollar-cost averaging strategy! We seek to optimise your portfolio for every economic conditions and to take advantage of valuation gaps wherever they are evident. If we do re-optimise, that would mean we are either taking advantage of valuation gaps or looking to give you the highest risk adjusted return for a particular economic regime we're in. It does not necessarily mean we'll be selling at a low price or buying in at a high price. For example, back in December 2017, we did a reopimtisation as we saw that Gold was undervalued. We then increased allocation to Gold across our portfolios. At that time, Gold was trading at 1,200+. Now, gold is trading at 1,700. If we do exit a particular asset class, it means we are allocating and investing the funds to another asset class we expect will do better going forward.
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SeedlyTV S2E04

Robo-Advisors

Investments

What are Key Leading Economic Indicators which helped RoboAdvisors navigate the current market volatility and will it help to better prepare for future extreme market conditions?
Amanda Ong
Amanda Ong, Head Of Client Experience & PR at Stashaway
Level 5. Genius
Answered on 07 May 2020
Hi there, Great question! We use many different economic indicators and one such LEI is the Conference Board Leading Economic Index and Freddy talks about it in detail here, in our latest CIO Newsletter: https://www.stashaway.sg/r/using-market-data-to-navigate-economic-uncertainty.
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SeedlyTV S2E04

Robo-Advisors

Endowus

Syfe

StashAway

Kristal.AI

AutoWealth

How did each robo-advisor handle the market dip, and what steps did you guys take to adjust to the situation?
Amanda Ong
Amanda Ong, Head Of Client Experience & PR at Stashaway
Level 5. Genius
Updated on 04 May 2020
Hi there, Great question! I'll leave Michele to explain this more on the show but really quickly: There are a few reasons we have not decided to re-optimise as of yet. The S&P 500's drop of more than 20% from February 19 to March 12 was its steepest or fastest-ever fall from an all-time high to a bear market. What has ERAA done? (here is an excerpt from our latest CIO newsletter): "At StashAway, our fundamental principle has always been to keep our clients’ investments prepared for market and economic adversities. First, ERAA® estimates and budgets for extreme risk based on top stress scenarios in history, such as the 2008 Financial Crisis. Then, rather than predicting and reacting to future events, ERAA® builds into your portfolio mechanisms to manage your risk. Mechanisms include allocating a portion of your portfolio to funding currencies, such as the US Dollar and Japanese Yen. These risk measures, amongst others embedded in our investment strategy, have helped reduce the impact of the 2020 black swans on your portfolio. In addition to managing your risk, our asset allocation strategy determined by our investment framework, ERAA®, ultimately enables your investments to capture opportunities in any economic environment. Back in mid-August 2019, ERAA® switched to an “All-Weather” strategy for assets exposed to global non-US economies and increased USD exposure in the global portfolios. While our US exposure is still tilted towards growth, using data-driven analysis, ERAA® has been optimised to stay invested as the markets have already priced in the economic impact of COVID-19, the oil crash, and the policy bazookas. What drives the overall stock market is how aggregate economic stimuli stack up against aggregate output. ERAA® continues to analyse new data as they come in, looking at both how the economy shapes up as the COVID-19 crisis unfolds, as well as how the markets react, and what they do price in." You can read the full article here: https://www.stashaway.sg/r/using-market-data-to-navigate-economic-uncertainty.
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Investments

Robo-Advisors

StashAway

Syfe

AutoWealth

SquirrelSave

Endowus

Should I put all my funds in my robo account into a higher risk portfolio or split it into 2 with one with high risk and the other with medium/low risk?
Amanda Ong
Amanda Ong, Head Of Client Experience & PR at Stashaway
Level 5. Genius
Updated on 04 May 2020
Hi there, Thank you for this question. I've just answered a similar question and here is my answer :) We recommend that you choose a risk level that 1) is in line with your risk appetite 2) commensurate with your investment timeline. You can definitely and should potentially have different risk levels or portfolios to meet you different goals. 1) You don't want to choose a risk level that is riskier and more volatile than you are comfortable with and end up staying up at night watching your phone or panicking and selling at the worst time - when prices are down. However, you also want to make sure you choose a portfolio and a risk level that can potentially generate the returns you want to meet your financial goals. We classify our portfolios using the StashAway Risk Index (SRI). This is the measurement we use to determine how much risk our system should expose you to, which then determines your portfolio’s asset allocation. We gave it our own name not to be fancy, but because it’s a specific application of a fairly common risk metric called Value-at-Risk (VaR). To calculate the potential loss of a portfolio in a year, we use Value-at-Risk (VaR). At StashAway, we use 99%-VaR, meaning a portfolio has a 99% probability of not losing more than a given percentage of assets in a year. Here’s an example: a StashAway portfolio with $100,000 SGD and a SRI of 10% has a 99% probability of not losing more than 10%, or $10,000 SGD in a year. In other words, there is a 99% probability that your portfolio’s value won’t decrease below $90,000 SGD if you select a SRI 10% portfolio. 2) In general, the longer your investment timeline, the more risk you can afford to take. Why? You have enough time to ride out the short term volatility in the markets, the corrections, the recessions, to hopefully end up with a higher long term average return that come with some asset classes. If you have a shorter investment timeline, such as wanting to buy a house in 2-3 years, then you will potentially want to keep a larger proportion of these funds in a more protective asset classes like bonds. Once you've selected your risk level, we generally recommend that you dollar cost averge into the markets instead of making a lump sum investment unless that lump sum investment is a small percentage of your net worth. The larger that propotion, the longer you want to spread out that dollar cost averaging strategy. This is one of our articles that can help you think through this :)
👍 0

Investments

StashAway

Robo-Advisors

SeedlyTV S2E04

Strategy in investing using Stashaway during this Covid-19?
Amanda Ong
Amanda Ong, Head Of Client Experience & PR at Stashaway
Level 5. Genius
Answered on 03 May 2020
Hi TX, Thank you for this question and a very good one at that! First of all, thank you for your trust and for considering StashAway to manage your savings. We recommend that you choose a risk level that 1) is in line with your risk appetite 2) commensurate with your investment timeline. 1) You don't want to choose a risk level that is riskier and more volatile than you are comfortable with and end up staying up at night watching your phone or panicking and selling at the worst time - when prices are down. However, you also want to make sure you choose a portfolio and a risk level that can potentially generate the returns you want to meet your financial goals. We classify our portfolios using the StashAway Risk Index (SRI). This is the measurement we use to determine how much risk our system should expose you to, which then determines your portfolio’s asset allocation. We gave it our own name not to be fancy, but because it’s a specific application of a fairly common risk metric called Value-at-Risk (VaR). To calculate the potential loss of a portfolio in a year, we use Value-at-Risk (VaR). At StashAway, we use 99%-VaR, meaning a portfolio has a 99% probability of not losing more than a given percentage of assets in a year. Here’s an example: a StashAway portfolio with $100,000 SGD and a SRI of 10% has a 99% probability of not losing more than 10%, or $10,000 SGD in a year. In other words, there is a 99% probability that your portfolio’s value won’t decrease below $90,000 SGD if you select a SRI 10% portfolio. 2) In general, the longer your investment timeline, the more risk you can afford to take. Why? You have enough time to ride out the short term volatility in the markets, the corrections, the recessions, to hopefully end up with a higher long term average return that come with some asset classes. If you have a shorter investment timeline, such as wanting to buy a house in 2-3 years, then you will potentially want to keep a larger proportion of these funds in a more protective asset classes like bonds. Once you've selected your risk level, we generally recommend that you dollar cost averge into the markets instead of making a lump sum investment unless that lump sum investment is a small percentage of your net worth. The larger that propotion, the longer you want to spread out that dollar cost averaging strategy. This is one of our articles that can help you think through this :)
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Investments

Robo-Advisors

SeedlyTV S2E04

StashAway

Syfe

Regular Shares Savings Plans (RSS/RSP)

DBS digiPortfolio

What's considered diversity in investment? Do Robo-Advisors help me achieve this?
Amanda Ong
Amanda Ong, Head Of Client Experience & PR at Stashaway
Level 5. Genius
Answered on 03 May 2020
Hi there, Thank you for this question and the short answer to your questions is yes, absolutely! This is a list of our asset class universe. Each of our portfolios is diversified across 7-9 different asset classes (Equities, Bonds of different maturities), Gold, Real Estate, Commodities, etc) that span different geographic regions, industries and sectors. For example, our StashAway Risk Index 22% portfolio which is equivalent to a 60-40 equity-bond portfolio, has exposure to US equities (via the S&P500), European Equities, Small-Cap Equities, the Consumer Discretionary sector, the Heathcare sector, Emerging Markets bonds, Gold, Inflation-linked government bonds. If you would like to see the asset allocation of all of our other portfolios, you can do so by creating a "New Portfolio" in the app and toggling between them to see their asset breakdown :)
👍 1

Investments

Robo-Advisors

SeedlyTV S2E04

Which robo-advisor would you recommend for SIP and why?
Amanda Ong
Amanda Ong, Head Of Client Experience & PR at Stashaway
Level 5. Genius
Answered on 03 May 2020
Hi there, This is a great question. I can't and won't comment on the other players but here is how StashAway clients can do it. A lot of our clients are now using our automated transfer from StashAway Simple to their investment portfolios. This allows you to manage this whole process from your StashAway app and park your cash in a portfolio that currently earns 1.9% p.a. You can also set up a standing instruction from your bank to us. This is an automated transfer that you can set and on a specific day each week or month, your funds are transferred to your StashAway account. If it's a FAST transfer, we receive it almost immediately. The limit for FAST transfer is SGD 200,000 so anything below that you can use it. If we receive it before 2pm on any given day, your funds will be invested in the same evening, during the US market open.
👍 1

Investments

Stocks Discussion

COVID-19

SG Budget Babe

FIRE Movement

Robo-Advisors

SeedlyTV S2E04

What recommendations do you have for new investors?
Amanda Ong
Amanda Ong, Head Of Client Experience & PR at Stashaway
Level 5. Genius
Updated on 03 May 2020
Hi there, this is a great question and I'm glad to see that you have been saving regularly and looking to start investing! All your savings should go towards a financial goal (Retirement, Buy a house, etc), including building a safety net. This is a recommendation from our Co-Founder and CEO, Michele Ferrario: 1. Build a very basic safety net of approximately 3 months of expenses in liquid and very low risk instruments. The goal here is to make sure this money is readily available when required but whilst being as protected from inflation as possible. Our StashAway Simple Portfolio, which is currently yielding 1.9% at T+2 liquidity is a great way to do this. 2. Pay off any outstanding debt that charges more than 2-2.5% interest. Why 2-2.5%? You should be able to generate a liquid and low or no-risk return of approximately 1.9-2% in the market today. For example, you can do so with some savings accounts or with StashAway Simple. If you’re servicing a debt of 2% or less you’re much better off taking a little more risk, investing that $100, $500 or $1,000, and earning that margin of return through investing it. If the debt you are servicing is above 3-5%, again you are better off paying that debt off as it’s a risk-free return to yourself of 3-5%+ 3. Grow your safety net to consist of 6-12 months of expenses (i.e add an additional 3-9 months). Continue to invest in liquid and very low risk instruments to make sure this money is readily available when required, but still as protected from inflation as possible. 4. Start contributing towards your main long-term goal, i.e. retirement: Invest in a diversified portfolio which spans across asset classes and geographies, targeting the right level of risk given (i) your risk appetite (i.e. will you be able to sleep comfortably at night and stay the course during the natural ups and downs of the market? if not, then you may have taken too much risk and (ii) the timeline (i.e. the longer you have, the more risk you can take) 5. Start contributing towards your other goals and use the same investment logic as in Step 4: investing in a diversified portfolio which spans across asset classes and geographies, targeting the right level of risk given (i) your risk appetite (i.e. will you be able to sleep comfortably at night and stay the course during the natural ups and downs of the market? if not, then you may have taken too much risk and (ii) the timeline (i.e. the longer you have, the more risk you can take).
👍 1

S&P 500 Index

Investments

AMA The Fifth Person

SeedlyTV S2E04

If US domiciled S&P500 etf such as VOO has 30% dividend withholding tax and people advocate going for Ireland domiciled ones, then why do people still invest in individual US stocks?
Amanda Ong
Amanda Ong, Head Of Client Experience & PR at Stashaway
Level 5. Genius
Answered on 03 May 2020
Hi there, Thank you for this question! I've answered a similar one above but here is my answer to this: The short answer is yes. In fact, all dividends of US-listed securities are subject to 30% dividend withholding tax (WHT). These taxes are applicable as long as you own US listed assets, regardless of whether the assets were bought through StashAway, or via your own broker. The WHT is held at source and the rest of the dividends are redistributed back to your portfolio(s) and reinvested automatically. The dividends you see in the "Transactions" tab of your StashAway app would be the amount after deducting the WHT. Under the QII (Qualified Interest Income) rule, some of the dividend WHT from US domiciled funds (e.g. US government bonds) can be claimed back. Our broker will do this on your behalf and there is no involvement on the customer's part. We will do this once a year, and will notify you via email if you have any claimable WHT, which would be redistributed to your portfolio and automatically reinvested. For further illustration, you may like to view the iShares 2020 report on the QII percentages for their funds. Some examples of QII ETFs that StashAway invests in are 20+ Year Treasury Bond (TLT) and 10-20 Year Treasury Bond (TLH). Our investment team has given serious consideration to the 30% WHT and have considered other exchanges that have lower or no withholding tax. However, at the end of the day, we have decided to stay with US-listed securities despite the tax implications due to the its deep liquidity, reputable fund management and most importantly, the lower tracking error. If you're interested to see a comparison between US-listed securities and foreign securities, here is an article that presents its case.
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