How StashAway Can Charge Low Fees
Co-founder and CIO
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StashAway was founded on the belief that top-quality investment products do not have to be expensive to be effective. Our team now asks ourselves one very simple question we make every 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 you can earn with compound interest. And when you do well, that means we will, too.
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 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 in order to withstand the new market environment. Automated checks and balances lower our costs while simultaneously achieving greater management precision.
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 call “passive investing.” ETFs have lower costs than Unit Trusts and actively managed funds, as they rely on algorithms rather than on the judgement of investment managers. These lower costs translate in lower management fees, and this feature further lowers your cost to invest.