Global portfolios, expertly managed

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.

Rebalancing:

When a particular asset reaps significant gains relative to other assets in the portfolio, its market value weight increases above the target allocation. Without rebalancing, the portfolio is increasingly concentrated in the outperforming asset class hence raising risks. Our algorithm checks customers’ portfolios daily, and performs rebalancing when allocations deviate from targets by more than our "optimised" bands. This can happen weekly, monthly or quarterly, depending on the markets' volatility and performance.

Re-optimisation:

StashAway’s ERAA™ investment strategy : Historically, re-optimisation happens about once a year.

General Investing powered by BlackRock® : You can expect re-optimisation to occur around 4 to 6 times a year.

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.