StashAway, a robo-advisor headquartered in Singapore, has made available its services in Malaysia. StashAway delivers an intelligent, data-driven asset allocation investment strategy with no minimum balance, no sales charge, annual management fees between just 0.2% and 0.8%, and flexible deposits and withdrawals.
The platform is currently being rolled out to the 5,000+ people who have signed up for the waitlist, and the company plans to open up access to the public by early November. The platform is accessible at www.stashaway.my, and on the Google Play Store and the App Store.
StashAway personalises financial advice and portfolio management with its advanced, propriety investment framework, ERAA (Economic Regime-based Asset Allocation) for both retail and accredited investors. ERAA combines a comprehensive risk management strategy with a macroeconomic data-driven asset allocation strategy. With risk management at the very heart of the investment strategy, ERAA is intrinsically designed to navigate the ups and downs of economic cycles. In-depth backtesting indicates that ERAA would have outperformed in risk- adjusted terms during the 2008 Financial Crisis.
On Malaysia’s readiness for a robo-advisor available to investors of all net worths, StashAway Malaysia Country Manager, Wong Wai Ken shares, “We’ve seen what’s been happening in the investment space in countries around the world, and by now, we expect these low-cost, convenient, transparent, and sophisticated investment options to be available to us. Over-priced, inconvenient and one-size-fits-all Unit Trusts and Investment Linked Policies don’t cut it anymore. Malaysia’s population is growing and life expectancy is increasing; we need investment solutions that enable us to manage our growing wealth better.”
Co-founder and Group CEO, Michele Ferrario, describes the value proposition for customers to put to work their money: “When you think about how 43% of gross financial assets in Malaysia are in bank deposits, it’s clear that current investment options aren’t doing their jobs of enabling Malaysians to build their long-term wealth through intelligent investing. This huge amount of wealth sitting in cash proves that the financial services industry has failed thus far to equip Malaysians with the right investment tools.”
In May 2017, the Malaysian Securities Commission introduced the Digital Investment Management Framework, as part of its “digital agenda for the capital market, aiming to provide investors with a more convenient, affordable and accessible channel to manage and grow their wealth.” StashAway is the first company in Malaysia to be awarded a Capital Market Services License and carry out fund management activities as set out by the Digital Investment License framework. StashAway will be able to serve both retail and accredited investors.
StashAway launched its services first to the Singapore market in July 2017. In Singapore, StashAway was the first robo-advisor to operate with a CMS license, which regulates it as both a fund manager and financial advisor for both retail and accredited investors.