How StashAway Can Charge Low Fees

01 March 2017
Freddy Lim

StashAway was founded on the belief that top-quality and effective investment products don't have to be expensive. Our team now asks ourselves one very simple question whenever we make any decision: “How does this improve our customers’ experience?”

We developed investment strategies and technologies that cut operational costs, and we pass those savings on to you. Our fees range between just 0.2% and 0.8% annually, compared to traditional products that charge between 1.25% and 5% annually. These lower fees mean that you can earn greater returns over the long term, because they don't eat into what your potential compound interest earnings.

So how can charge such low fees? We leverage efficient, automated technology, invest in low-cost ETFs, and participate in a passive investment approach.

Automated technology

We’ve developed algorithms that monitor each individual portfolio daily to make sure it's on target with current market conditions, and will rebalance your portfolio if and when necessary.

Our trading system constantly monitors prices and economic indicators and updates its recommended portfolio allocation in the event of major economic regime changes. In the case of uncertain market conditions, such as a recession, our portfolio optimisation system will recommend an adjustment to your portfolio's asset allocation and volatility to withstand the new market environment. Automated checks and balances lower our costs while simultaneously achieving greater management precision.

Low-cost ETFs

To avoid concentration risk, we invest in diversified ETFs rather than in individual securities. In addition to offering diversification and liquidity, ETFs are highly cost-effective. This is what is commonly called “passive investing.” ETFs have lower costs than Unit Trusts and actively managed funds, as they rely on algorithms rather than on the investment managers' judgement. These lower costs translate to lower management fees, and this feature further lowers your investment costs.

To learn how we charge, see our pricing page.

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