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StashAway

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Anonymous

Asked on 02 Mar 2019

Stashaway or Autowealth?

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Amanda Ong
Amanda Ong
Level 5. Genius
Answered on 09 Apr 2019

Hi there,

My name is Amanda and I am the Head of Client Engagement at StashAway.

We do not generally comment on our competitors and do not engage in debates on this topic online or offline. We will provide you with all the information you need on StashAway to make an informed investment decision. We also recommend investors to do their own research before deciding on a robo-advisor or an investment product.

With that said, there are a few inaccurate observations highlighted by Tai Zhi below that I would like to just clarify.

1) We completely agree with Tai Zhi's point on the fact that research has shown that active fund managers tend to underperform the market. It is true, there is a lot of data published by SPIVA that prove this point. In fact, this is something we have discussed extensively and advocate for in our seminars on investing. Let’s be clear of what this “active” vs “passive” comparison looks at: in this comparison, “active” means to participate in securities selection (buy and selling single names stocks or bonds for example), and “passive” means to buy an entire asset class through ETFs or Index Funds. We believe in passive investing: StashAway invests using ETFs which are an index-tracking investment vehicle listed on a major exchange.

Moreover, research shows that 80%+ of differential returns among porfolios come from asset allocation. This is where it makes sense to have a dynamic, strategic approach, rather than a static one. If you've read the white paper on our Investment strategy (https://www.stashaway.sg/r/stashaways-asset-allocation-framework), this is the exact basis of our investment framework. It focuses on asset allocation and not individual security selection.

When there is a fundamental change in economic conditions, StashAway will re-optimize your portfolios for you. What this means is that, for example, if the economy were to go from “good times” to a “recession”, StashAway will recommend a re-optimization that will reduce equity exposure and concentrate it in protective sectors (e.g., consumer staples), and increase allocations to asset classes such as government bonds, particularly for long maturity dates, and gold. Our investment framework (ERAA) is risk-centric: the goal is to maintain your risk exposure constant across market and economic cycles while optimizing returns.

We will always be more than happy to share details about how we've performed. If you'd like this information, you can reach out to us via [email protected] or ask our Co-Founders during the Q&A of our Academy Seminars. We are more than happy to share that with you.

2) Contrary to the belief that it "may expose the investor to a lengthy court process to claim back the assets if the robo-advisor ceases operations for some unforeseen reasons", the process at which you can claim your assets back should StashAway go bankrupt is actually quite simple.

We hold a Capital Markets Services License. We decided to get a license with 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.

To clarify, Tai Zhi writes that “AutoWealth, on the other hand, adopts an even higher level of safeguard by opening personal segregated custody accounts for each individual investor in his/her legal name so that the legal ownership is 100% clear”: they do 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.

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.

3) Tai Zhi write that “Other robo-advisors like Stashaway are pure digital platform with little or no human touch.” This is incorrect. StashAway leaves the option to you- you can decide to have zero human interaction if you want, or talk with any of our Customer Engagement (CE) team members through a variety of tools.

If you're a client with us, you would know that you are able to choose to upload your documents with us via WhatsApp. In that interaction, you are talking to a CE team member who is assisting you with your onboarding. This WhatsApp feature has been available since day one when we launched in July 2017.

To make it easier for you to reach out to us, we have also started placing the WhatsApp chat feature in our mobile app last year. You will see a button at the corner of the app that allows you to quickly open up WhatsApp to speak to the CE team. When you send an email, WhatsApp, Facebook message or call us, you are speaking to an actual person from my team. For our clients, you would already know this. If you are not currently a user, you can contact us via any of the aforementioned channels, my team will be happy to answer any of your questions (https://www.stashaway.sg/contact)

If you’d like to meet our team in person, we host weekly seminars in both Singapore and KL and we are always happy to stay back for Q&A sessions. You can find the calendar on our StashAway Academy page.

I do hope the above has clarified some of the misconceptions or inaccuracies stated about us. If you'd like to learn more on any of the above points or on StashAway, please feel free to reach out to me or my team at [email protected]

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👍 5
HC Tang
HC Tang, Financial Enthusiast, Budgeting at The Society
Level 9. God of Wisdom
Answered on 02 May 2019

Your answer here and more :

https://www.imoney.sg/articles/robo-advisors-comparison/

Especially the backtested results here :

https://financialhorse.com/best-robo-advisor-singapore/

P/S: Past does not equals to future. Thus do take this into your consideration and most importantly also take note of the fees / cost and company management review at Glassdoor too as bad Captain or team usually stirs the ship into dangers and Titanic incidents might happen.

If you're Keen in Stashaway, you can sign up with my link and we'll both get up to $10,000 SGD managed for free for 6 months at

https://www.stashaway.sg/referrals/hangchot2kwj

Cheers😀

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👍 1
Tai Zhi
Tai Zhi, Chief Investment Officer at Autowealth
Level 6. Master
Updated on 07 May 2019

Projections and backtesting does not reflect the actual performance. We are confident and transparent about our actual investment performance. You may find our investment track record at the following url: https://www.autowealth.sg/strategy.php

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Gabriel Tham
Gabriel Tham
Level 9. God of Wisdom
Answered on 16 Jul 2018

You might want to leave it for a longer period. Autowealth or for that matter any other robo advisors will probably go through periods of losses too. There is no such robo advisor that will guarantee 100% chance of profits.

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