Stashaway has raised the projected rate of its Stashaway Simple portfolio to 1.1% p.a. from 1.0% p.a. previously.
“Central banks around the world are starting to increase their interest rates to counter inflation. Simple’s returns are closely tied to the interest rates, so when the rates go up, so does Simple’s ability to earn more on cash,” says Stashaway co-founder and chief investment officer Freddy Lim in an email to account holders on May 13.
Lim adds: “To determine the expected projected rate for Simple, our investment team reviews the past rate and expected rate with the underlying fund managers, and also assesses the economic environment. After careful consideration, we’re revising Stashaway Simple’s projected rate upward to 1.1% p.a. as of May 13, 2022.”
Stashaway Simple was launched in November 2019 with a projected rate of 1.4% p.a.
This was later adjusted down to 1.2% p.a. on March 1, 2021, before slipping further to 1.0% p.a. on Dec 1, 2021.
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Stashaway claims its Simple portfolio has not had a single month of negative returns. “Unlike other cash management options in the market, Simple hasn’t seen a single month of negative returns since its inception in 2019,” reads the email.
Lim adds: “With the current market volatility, it’s even more important to not expose your cash to unnecessary risk. Simple is an ultra-low risk cash management option that offers stable returns, ideal for growing your cash in a secure way.”
The Simple portfolio allocates assets equally between the LionGlobal SGD Money Market Fund and the LionGlobal SGD Enhanced Liquidity Fund.
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Stashaway was founded in Singapore in 2016 by Zalora Group's former CEO, Michele Ferrario; former managing director and global head of derivatives strategy at Nomura, Freddy Lim; and Nino Ulsamer.
Stashaway was the first robo-advisor to obtain a full capital-markets services license (CMS) from the Monetary Authority of Singapore (MAS)
