StashAway is launching flexible portfolios where investors can build their own portfolios and customise in any way they want including:
- Adding or removing asset classes
- Adjusting asset allocations within the portfolio
- Make changes at any time after creation
This is great news as it has been a feature that we've been awaiting for since they first launched. For example, if you're not keen on Australian ETFs you can reduce its allocation to 0% and increase the allocation of funds towards something else.
The process for creating a flexible portfolio is very simple:
- Select a template portfolio and risk level
- Adjust asset allocation
StashAway would manage your flexible portfolio by maintaining your asset allocations according to your proportions when the market changes. Your portfolio is also rebalanced when you make a deposit, request a partial withdrawal or make a change in the allocations within your portfolio.
Using flexible portfolios will not trigger re-optimization – StashAway will maintain your asset classes and allocations in the proportions you set even if there are changes in economic conditions.
However, StashAway might replace the underlying ETFs within the asset classes with more cost efficient funds at their own discretion.
Each asset class in the flexible portfolio require a minimum of 3% allocation, and at least 1% of the portfolio will be set aside as cash for rebalancing and platform fees.
At the moment, you can only create new flexible portfolios but not convert an existing portfolio into a flexible one. You can create an unlimited number of flexible portfolios and like the usual robo-advisor managed portfolios, there are no deposit, redemption and transaction fees. StashAway charges between 0.2% to 0.8% annually depending on your assets under management.
Flexible Portfolios is currently in private launch and will be open to public soon.