StashAway Malaysia launches cash management fund StashAway Simple. MyPF reviews the money market solution provided by this robo advisory.

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What is StashAway?

StashAway is a data-driven digital wealth management platform that personalizes financial planning and portfolio management for the vast range of needs of both retail and accredited investors and was the first robo advisory to launch in Malaysia in July 2017.

StashAway Simple is a cash management solution launched on June 15, 2020. Prior to this StashAway Simple was launched by our neighbors south in Singapore first on November 2019.

What is StashAway Simple?

A Cash Management solution invested in money markets compared as a alternative to fixed deposits or high yield savings account.

Returns estimate of 2.4% per annum with flexibility in amount and duration invested.

Shariah-compliant as underlying fund is invested in Islamic money market instruments and fixed deposits.

Underlying Fund: Eastspring Investments Islamic Income Fund

General Info

  • Sector: Income / Islamic money market
  • Launch price: 0.50 (current NAV 0.5190 – not fixed price)
  • Income distribution: monthly (if any)

Fund Performance (Annualized Returns)

  • 3 month: 0.77%
  • 6 month: 1.61%
  • 1 year: 3.41%
  • 2 year: 3.55%
  • 3 year: 3.57%
  • 5 year: 3.64%
  • 10 year: 3.37%
  • Note: Expected returns are lower with the latest slew of OPR cuts

Historical Distribution

Declaration dateGross distributionNett distributionNett distribution yield
2020-05-060.00140.00140.27%
2020-04-060.00130.00130.25%
2020-03-060.00150.00150.29%
2020-02-060.00140.00140.27%
2020-01-060.00150.00150.29%
2019-12-060.00150.00150.29%
2019-11-060.00150.00150.29%
2019-10-070.00150.00150.29%
2019-09-060.00150.00150.29%
2019-08-060.00160.00160.31%
2019-07-080.00170.00170.33%
2019-06-070.00150.00150.29%

Top Holdings

  • Malayan Banking Berhad (Islamic Banking) (Placement): 20.51%
  • Maybank Islamic Berhad (Placement): 20.47%
  • RHB Islamic Bank Berhad (Placement): 20.59%

Ratios

  • Sharpe Ratio: 12.15%
  • Expense Ratio: 0.29%
  • Annualised Volatility: 0.08%

StashAway Simple Pros & Cons

Pros

  • Flexible payments and withdrawals with no lock-in periods (deposits 1-2days; withdrawals 2-3 days).
  • 0% management fee charged by StashAway (note: most intermediaries providing money market will charge 0% management fee too).
  • Low key net expense ratio of 0.165% (money market fund 0.25% annual management +0.04% trustee fee – 0.125% rebate).
  • Very low risk with 99% chance of not losing more than 1.8% of your AUM in a given year (StashAway Risk Index).

Cons

  • Capital not guaranteed and account is not PIDM protected.
  • Projected rate is not guaranteed as affected by Malaysia’s economic health and trajectory.

Conclusion

Our opinion is that it really allows for simple access to the money market using fintech. Normally, to access the underlying fund would require min RM50k to start and min RM10k for top ups/regular savings plans (RSP). The usage of fintech allows for easy access and withdrawals with not only 0% fees charged by StashAway but even passing on the rebates to clients. In our opinion, part of the reason StashAway is offering it is as it costs very little for StashAway to offer this solution while increasing signup rates, brand visibility, and allowing  easier access for investors to invest into their core bread-and-butter ETF portfolios. If you are looking to maximize your returns while still maintaining a high level of liquidity, there may be other options with better returns though. In terms of simplicity, it’s hard to beat StashAway Simple.

FAQ

Q: What if the projected returns change?
A: StashAway will update the projected rate should the stated projected rate change. In the case that one the underlying fund’s projected returns changes, StashAway may decide to rebate you an additional amount in order to deliver the stated projected rate (in 3 decimals) at the time.

Q: What is the dividends accrual basis?
A: Daily accrual and monthly payout.

StashAway x MyPF exclusive signup privileges!

  • StashAway Malaysia promo code 0% fees for RM100k invested for 6 mon In terms of simplicity, ths: signup link
  • StashAway Singapore promo code 50% fees for SGD50k invested for 6 months: signup link
  • Note: Fee waiver doesn’t apply for StashAway simple as there are no fees, but may be beneficial if you invest in StashAway in the future.

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Will you invest in StashAway Simple VS fixed deposit, directly into a money market fund or other options? Comment below.