We use the StashAway Risk Index (SRI) to quantify risk for our following portfolios:
This is the measurement we use to determine how much risk our system should expose you to, which then determines your portfolio’s asset allocation. We gave it our own name not to be fancy, but because it’s a specific application of a fairly common risk metric, Value-at-Risk.
To calculate the potential loss of a portfolio in a year, we use Value-at-Risk (VaR). At StashAway, we use 99%-VaR, which can be interpreted as a portfolio having 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 USD and a StashAway Risk Index of 10% has a 99% probability of not losing more than 10%, or $10,000 USD in a year. In other words, there is a 99% probability that your portfolio’s value won’t decrease below $90,000 USD if you select a 10% StashAway Risk Index.
StashAway Management (DIFC) Limited is regulated by the DFSA (license number F006312) for the provision of arranging custody, arranging deals in investments, advising on financial products, and managing assets, with a retail endorsement.
StashAway Management (DIFC) Limited (registration number CL 3982) is established in the DIFC pursuant to the DIFC Companies Law. Its registered address is Unit 1301, Level 13, Emirates Financial Towers, P.O. Box 507051, Dubai International Financial Centre, Dubai, United Arab Emirates.