Build your wealth with expert-managed portfolios

StashAway’s Economic Regime-based Asset Allocation (“ERAA”) framework builds and manages portfolios by targeting different level of risk and attempting to maximize net investment returns at each risk-point.

The framework is dynamic and strategic in nature, and it is built on 4 pillars: (i) Regime-based asset allocation, (ii) Risk Control, (iii) Valuation Gaps, and (iv)  Managing Asset-specific Risk

The First Pillar (Regime-based Asset Allocation) is at the core of ERAA’s portfolio construction logic, and uses economic data to adjust the target strategic asset allocation at each risk level. The main assumption behind this pillar is that the economy ultimately drives medium term markets’ returns.

The Second Pillar (Risk Control) is the risk management layer of the framework, tasked with identifying cases in which economic data either are unclear or are not driving market behaviour. If the momentum (rate of change) of growth and/or inflation isn’t solid enough to provide predictive guidance, ERAA® adjusts our clients’ portfolios to an All-Weather strategy until the direction of economic data is clear again. The All-Weather strategy is designed to simultaneously protect capital and perform well in uncertain economic conditions.

The Third Pillar (Valuation Gaps) takes into account each asset class’ valuation to underweight overvalued assets and discover opportunities to overweight undervalued assets. Valuation Adjustments are based on economic regressions, and therefore are anchored around ERAA’s main assumption that the economy ultimately drives medium term markets’ returns.

The Fourth Pillar (Managing Asset-specific Risk) sets asset allocation limits based on the historical relative performance of each asset compared to the portfolio's same-risk benchmarks. Taking into account an asset's historical performance, ERAA® adjusts its maximum allocation. This ensures that any idiosyncratic drawdowns in a specific asset don't have an outsized impact on portfolio performance.

Read our white paper on StashAway’s investment framework to know more about ERAA®.

An ETF, or an Exchange-traded Fund, is an index-tracking investment vehicle listed on a major exchange. Indices are composed of asset classes, such as stocks or bonds, in a particular segment of the market, such as technology, energy, or real estate. ETFs are funds that are traded like stocks but have the diversified portfolio structures of a mutual fund. ETFs provide passive exposure to any asset class by mirroring the returns of an index. For example, the SPDR SPY S&P 500 is an ETF that tracks the performance of the S&P 500.

ETFs offer diversification, higher liquidity than individual securities, and lower fees

An ETF typically charges low fees of around 0.15% to 0.25%. In comparison, mutual funds, which are already an expensive alternative to ETFs, have fees that range from 1.25 to 2.0%. 

Learn more: What is an ETF?

Your portfolios will only have the best ETFs. The curated ETFs are the largest, most liquid, most tradable, and most cost-effective ETFs with the lowest tracking error to the index and a sufficiently long track record.

Based on your risk preferences, selected goal, and current economic regime, our algorithm carefully picks the ETFs most suitable for your goal. This allows us to provide the most optimal diversification personalised to you.

As such, it is not possible for an investor to handpick the ETFs or the allocation for most of our investment products.

However, we do offer Flexible Portfolios, in which you can pick the asset classes you want, decide your exact allocations, and change them at any time. Find out more about Flexible Portfolios here .

When investing as an individual, there are minimum trade sizes and high transaction costs imposed on the account, and 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 that is nearly impossible if you were to do it on your own.

Learn more : Who Should Manage Your Investments?

StashAway always ensures that the best interests of our customers are considered in the generation and execution of orders.

For example, in the execution of customers’ orders, StashAway will consider multiple factors with the aim of achieving the best possible execution of all customers’ orders, including but not limited to:

• Unit Price
• Execution-related costs
• Speed of execution
• Probability of full order fulfilment
• Order size
• Nature of the access to the applicable brokers and execution venues
• Any other relevant characteristics of the investment product
• Potential conflicts of interest

What constitutes an Acceptable Tolerance Threshold (ATT)?

In relation to settlement involving several customers’ portfolios, a shortfall/excess discrepancy will, in respect of a portfolio, fall within the ATT where it meets both criteria below:

(a) The absolute value of the shortfall/excess discrepancy is not more than USD 0.01 (or its equivalent in HKD); and

(b) The absolute value of the shortfall/excess discrepancy, when taken as a percentage of the value of the relevant portfolio's contribution in the bulk settlement under which the shortfall/excess discrepancy arose, is not more than 0.0001%.

More details on the ATT can be found in the Account Opening agreement here . Further details also can be found in our Global Order Execution Policy here .

Re-optimisation refers to changes in your portfolio’s target asset allocation. When this happens, new ETFs may be introduced, and/or the weightage of existing ETFs will be changed in your asset allocation.

To learn more about our investment methodology, visit ERAA .

Were you looking for rebalancing instead? Click here for Rebalancing .

Rebalancing a portfolio involves adjusting the composition of a portfolio by buying and/or selling specific assets to re-align a portfolio to its target composition in the case that market changes influence your portfolio's asset allocation.

Our system automatically reinvests any dividends you may earn. All dividend payments are reflected in your "Transactions" tab.

To see your total assets and returns:

Step 1: Log in to your StashAway account.

Step 2: Select your portfolio.

Step 3: Go to the “Overview” tab to view your portfolio performance and the “Assets” tab to view your assets allocation.

To see your transaction history:

Step 1: Go to the “Transactions” tab

Step 2: Click on the drop-down arrow labelled “All-Account transactions”

Step 3: Select your portfolio and you may view all transactions (buy order, sell order, and/or dividend received) made for the respective portfolios.

Your Monthly Statement is found under the "Statements" tab.

The portfolio returns on our website and app are benchmarked against the FTSE All World Index for equities and the FTSE World Government Bond Index for bonds.

These benchmarks apply for the following portfolios:

• General Investing powered by StashAway
• General Investing powered by BlackRock®
• Responsible Investing

Like our General Investing and Responsible Investing portfolios, the FTSE All World Index includes exposure to equities in both developed markets (such as the US, Western Europe, Australia, and Japan) and emerging markets (such as China, Brazil, and India).

You might notice small sell transactions in your statements. These are part of a routine portfolio rebalancing process that helps keep your investments aligned with their intended allocations. There are two main reasons for these small sales:

1. Keeping Your Portfolio Aligned (Portfolio Drift)

If one of the ETFs in your portfolio drifts more than 20% from its target allocation, we’ll rebalance by buying or selling that ETF to bring it back in line.

2. Facilitating Fractional Shares

We aim to offer fractional shares so that your portfolio can be invested as accurately as possible. However, some ETFs in our universe can only be traded in whole units (known as "lot sizes") with our broker.

This means we sometimes need to sell slightly more of a particular ETF than is needed to meet the required lot size for a trade. To mitigate the effect of this, we group together multiple client portfolios that also hold the same ETF and rebalance them together in the same trade.

Client portfolios are chosen based on how far their ETF allocation has drifted from the target, starting with those that are the most off-target. We also randomise selections to avoid repeatedly choosing the same clients.

This process does not affect the total value or long-term performance of your portfolio. These small sell transactions are simply operational and help us ensure we continue to offer fractional investing, even when certain ETFs must be traded in whole units.

No, there is currently no cash wallet feature. All successful deposits are automatically allocated according to your selected deposit plan. Once received, your funds follow the specific investment timeline of each individual portfolio. Please note that processing times may vary depending on the asset classes within your chosen strategy.