19th October 2022 - 2 min read
StashAway announced that it has raised the projected return rate for its cash management portfolio, StashAway Simple, to 3% p.a..
In a post on its social media, StashAway explained that “Simple’s returns are closely tied to the interest rates, so when rates go up, so does Simple’s ability to earn more cash.” Its website has also been updated to reflect the change.
StashAway Simple was first launched in June 2020 with a projected rate of 2.4% p.a., which was then increased to 2.5% p.a. in June 2022, followed by 2.9% p.a. in September – before eventually settling on its latest rate. Meanwhile, StashAway said that its cash management portfolio has recorded the following annualised returns for the last four quarters, with returns reinvested:
|Quarters||Annualised returns (with returns reinvested)|
|Fourth quarter of 2021 (Q4 – 2021)||2.5% p.a.|
|First quarter of 2022 (Q1 – 2022)||2.4% p.a.|
|Second quarter of 2022 (Q2 – 2022)||2.6% p.a.|
|Third quarter of 2022 (Q3 – 2022)||2.89% p.a.|
To note, Simple’s actual annualised returns will take into account the performance of the underlying fund – which was switched from Eastspring Investments Islamic Fund to AmIncome Fund in July 2021 – the fees charged by the fund manager, and any rebates that are paid out after the end of each quarter. StashAway also reminded its clients that past performances should not be treated as a guarantee for future returns.
As one of the earliest cash management portfolios to be introduced in Malaysia, StashAway Simple works like a low-requirement savings account, with no minimum balance requirement and no limit on the balance that can earn the projected return. It also has no lock-in period, as well as management, set up, or exit fees by StashAway (although there is a 0.5% net fee charged by the underlying fund manager).
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