Invest for the long game

To calculate the potential drawdownof a portfolio in a year, we use Value-at-Risk (VaR). At StashAway, we use 99%-VaR, which means 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 HKD and a StashAway Risk Index of 10% has a 99% probability of not losing more than 10% or $10,000 HKD in a year.

The basis of our investment strategy is to build portfolios with particular asset allocations that are optimal for different phases of the economic cycle. When our technology identifies and signals a change in the economic cycle, our system will automatically re-optimise all portfolios' asset allocations, and this is what we called “re-optimisation”. Rebalancing a portfolio involves adjusting the composition of a portfolio by buying and/or selling specific assets in order to re-align a portfolio to its target composition in the case that price moves change the asset allocation of your portfolio.

When investing as an individual, there are minimum trade sizes and high transaction costs imposed on the account. This makes investing as an individual cost-prohibitive.

With StashAway, you will benefit from the constant monitoring, rebalancing, and re-optimisation that we provide. Moreover, StashAway is able to offer fractional shares to make your portfolio more precisely allocated, which is nearly impossible if you were to do it on your own.

We have taken every possible measure to protect your assets, from requiring two-factor authentication for any changes and identity verification for withdrawals, building a secure server infrastructure to protect you from cyber attacks, and partnering with a large bank to store your assets.

To learn more, please visit this link.