Introducing Our Income Portfolio

Michele Ferrario

Co-founder and CEO

10 September 2019

Our investment team has designed an income-generating portfolio unlike any in the market. Income products in the marketplace often bring a lot of risk to your principal in order to deliver income. The reality is that there are ways to earn income while maintaining the integrity of your principal and minimising your risk. 

With our Income Portfolio, we diversify your income sources and asset classes in a way that can earn you both income and capital appreciation. Pair that with the intelligence of ERAA®, and your risk exposure remains constant even through changing economic regimes. What does that mean for your investments? We're talking projected income of 3.75% per annum1and capital appreciation (when you reinvest your income) at 4.4% per annum1 with a StashAway Risk Index of 12% (equivalent to a balanced portfolio). 

You can think of it as income for the long term. 

About the portfolio

Singapore-focused

This is our first SGD-denominated portfolio. By investing solely in SGD-denominated instruments, you can meet your SGD income needs with our Income Portfolio. This way, your income is not unnecessarily exposed to the volatility of other major currencies.

Diversified income sources 

As with all of our portfolios, this portfolio is designed to earn returns through various market and economic conditions. Bonds, REITs, and stocks each generate income and earn returns in different market and economic environments, and so, we took that historical data and built a unique asset allocation of ETFs that dynamically works to grow and protect your investments: Our diversified Income Portfolio sources income from government bonds, corporate bonds, REITs, and stocks, giving you exposure to 539 underlying securities. Diversifying income sources to this extent simultaneously lessens your risk and maximises your chances of income-generation opportunities and capital appreciation, resulting in making it possible for you to earn income and returns through markets’ ups and downs.

Long-term durability with ERAA®  

Our Co-founder and CIO, Freddy Lim, described the strategy behind the portfolio like this: “As we do with all of our portfolios, we designed our Income Portfolio for risk-adjusted performance based on our ERAA® framework. The Income Portfolio’s asset allocation intelligently accounts for and adjusts in the face of new economic conditions. This way, it can deliver quality income and stable capital appreciation even through market volatility and changing economic conditions.” 

Managed risk exposure

Risk-management is a defining feature of StashAway’s Income Portfolio, making the portfolio durable in any economic condition. Our system manages your Income Portfolio to maintain a StashAway Risk Index of 12% (translation: You have a 1% chance of losing 12% of your capital). This SRI is equivalent to a balanced portfolio. 

Fees

As with all of our portfolios, the 0.2% and 0.8% management fee is all-inclusive. That's no subscription fee, no switching fee, no rebalancing fee, no re-optimisation fee, and no lock-up period.

Rethink how you earn your income.

1 Based on current economic conditions. Not guaranteed, your capital is at risk.

This is investing, redefined.

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