No, this is not a guarantee. The value of the portfolio is subject to market volatility, such as from changing interest rates.

Will my actual returns always match the yield to maturity?

Yield to Maturity (YTM) is the total annualised return anticipated on a bond if held until maturity, inclusive of the interest payments you’ll receive and any difference in the current price of the bond versus its maturity price (which is the same at the point it is issued). It is expressed as an annual percentage rate. We always indicate the date at which the YTM calculation is based until.

What is yield to maturity?

The ETF behind USD Cash Yield portfolio is not subject to the US government's withholding taxes, as it is a UCITS-compliant ETF domiciled in Ireland with US bonds as the underlying assets. As such, this means that all dividends will be fully reinvested.

Are the investments in my USD Cash Yield portfolio subject to withholding tax?

We don’t include your USD Cash Yield portfolio balance as part of your overall investments under management when we calculate your overall fee with us. Read more about how we calculate the fee for USD Cash Yield portfolio below. Your portfolio will be charged a flat StashAway management fee of 0.3% p.a. 
In addition to the StashAway management fee, ETF managers also charge a small management fee of 0.07% p.a. for USD Cash Yield portfolio. Do note that if you deposit in HKD, StashAway’s custodian bank charges a small one-off currency conversion fee of 0.10%. This is because it is a USD-denominated portfolio and the fee is very competitive in comparison to most retail banks which charge between 0.35 - 0.7%. 
 To summarise: Total fee for USD Cash Yield portfolio = StashAway management fee (0.3%p.a.) + ETF manager fee of 0.07% p.a. + currency conversion fee 0.10%.

Is the balance in my USD Cash Yield portfolio calculated into my overall investments with StashAway?

Short-dated US Treasuries are also known as Treasury bills (T-bills). They're debt securities issued by the US government with a maturity of one year or less, making them highly liquid.

What are short-dated US Treasuries?

Everyone. Since US Treasuries are ultra-low risk and liquid, it’s a great way to grow your cash.
Managing your cash should be part of any financial plan, no matter your net worth and risk tolerance. A low-risk, rate-earning cash management portfolio protects your money from losing too much of its value to inflation. It also protects your money from any sudden market dips just as you might need to withdraw it.

Who is the USD Cash Yield portfolio good for?

US Treasuries are backed by the US government, making them virtually one of the safest investments around. The US government has a long history of meeting its debt obligations since it can pay off its debts by raising taxes or printing more money. The only credit risk would come from the highly unlikely scenario that the US government would default.

How risky are US Treasuries?

Yes. We offer USD Cash Yield portfolio as part of our Flexible Portfolios offering, which allows you to build and customise your portfolio. You can adjust it any time and make the portfolio unique to your preferences by adding or removing asset classes. For example, you could add exposure to Emerging Markets or local government bonds. It’s free to make changes, any time you want.

Can I customise my USD Cash Yield portfolio?

There are a few key differences between a classic fixed deposit account at a bank and USD Cash Yield.
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<table style="width: 100%;">
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<td> </td>
<td>
Fixed deposit
</td>
<td>
USD Cash Yield
</td>
</tr>
<tr>
<td>
Description
 
</td>
<td>
An account opened at a bank that pays a guaranteed interest rate after a stipulated time period.
</td>
<td>
A portfolio that invests into short-term US Treasury Bills. 
 
</td>
</tr>
<tr>
<td>
The rate
</td>
<td>
You lock a guaranteed rate.
</td>
<td>
The rate is a projection and moves along with US Treasury Bill rates. 
</td>
</tr>
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<td>
Lock-in period
</td>
<td>
Varies from 3 to 12 months on average.
</td>
<td>
None
</td>
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<td>
Minimum amount
</td>
<td>
Usually requires $20,000+ of new funds to earn preferential interest rate 
</td>
<td>
None.
 
</td>
</tr>
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<td>
Deposit insurance
</td>
<td>
Insured under Hong Kong’s Deposit Protection Scheme for up to $500,000 HKD per depositor per scheme member.
</td>
<td>
Uninsured.
</td>
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How is the USD Cash Yield portfolio different from fixed deposits?

The underlying ETF is an accumulating share class. This means that the dividends received will be reinvested into the ETF instead of being paid out, increasing the value of your ETF.  Over time, you will compound your gains - thanks to the power of compounding interest. 
 
As always with StashAway, there are  no restrictions for withdrawals, so you can withdraw any amount from your portfolio, at any time.

How often will I earn the returns with USD Cash Yield portfolio?

USD Cash Yield portfolio invests in short-dated US Treasury Bills, which are ultra-low-risk investments. US Treasury Bills are fully backed by the US government, which guarantees that your interest and principal payments will be paid on time. Their short maturities of 0 – 3 months make them less sensitive to interest rate movements and highly liquid, meaning that they can easily be converted to cash. The only risk associated with the USD Cash Yield portfolio would come from the highly unlikely scenario that the US government would default.

How is USD Cash Yield ultra-low risk?

Your portfolio will be charged a flat fee of 0.3% p.a. 
In addition to the StashAway management fee, ETF managers also charge a small management fee of 0.07% p.a. for USD Cash Yield portfolio. Do note that if you deposit in HKD, StashAway’s custodian bank charges a small one-off currency conversion fee of 0.10%. This is because it is a USD-denominated portfolio and the fee is very competitive in comparison to most retail banks which charge between 0.35 - 0.7%. 
 To summarise: Total fee for USD Cash Yield portfolio = StashAway management fee of 0.3%p.a. + ETF manager fee of 0.07% p.a. + currency conversion fee 0.10%.

What are the fees for USD Cash Yield portfolio?

USD Cash Yield

Invest short-dated US treasuries to earn 5.4%* p.a. No minimum or maximum balance, no lock-up and ultra-low-risk.

We’re licensed by the Securities and Futures Commission of Hong Kong (<a></a><a href="https://apps.sfc.hk/publicregWeb/corp/BQE542/details" target="_blank">CE No. BQE542</a>)

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We’re licensed by the Monetary Authority of Singapore (License no.&nbsp;<a href="https://eservices.mas.gov.sg/fid/institution/detail/201134-ASIA-WEALTH-PLATFORM-PTE-LTD">CMS100604</a>).

We’re licensed by the Securities Commission Malaysia (Licence <a href="https://easy.seccom.com.my:8222/entityprofile/1ca93ae1-4c0e-4c55-90e0-1850600e54f6">eCMSL/A0352/2018</a>).

We’re licensed by the Securities and Exchange Commission (License no.&nbsp;<a></a><a href="https://market.sec.or.th/public/idisc/en/companyprofile/Intermediaries/0000031407" target="_blank">Lor Khor-0136-01</a>).

StashAway Management (DIFC) Limited is regulated by the DFSA (license number&nbsp;<a href="https://www.dfsa.ae/public-register/firms/stashaway-management-difc-limited">F006312</a>).