Singapore-headquartered StashAway secures over $1 billion in assets under management in less than four years, significantly outpacing industry rivals’ historical track records in the midst of a coronavirus pandemic.
Assets under management at StashAway surpassed $1 billion in 42 months, according to a statement, making it the first digital wealth manager in Southeast Asia and MENA (Middle East and North Africa) to reach the milestone.
«Reaching this $1 billion USD milestone in less than four years is only one of the many signs we see that Asia truly wants a better way to create wealth,» said Amanda Ong, StashAway’s country manager in Singapore.
«We see high conversion rates, large consistent deposits, and engagement with our educational content, for example. We’re still only scratching the surface for what’s possible when it comes to transforming wealth creation in Singapore, Malaysia, and MENA.»
Outpacing Rivals
Founded in 2016, StashAway’s quick drive to reach $1 billion in assets under management (AUM) occurred in the midst of a deadly pandemic that has resulted in accelerated digitalization worldwide aided in no small part by strict lockdowns, travel bans, social distancing measures and more.
According to StashAway, it reached the key milestone at a rate faster than the world’s largest digital wealth managers, Betterment and Wealthfront.
The two U.S.-based players were founded in 2008 and both reportedly reached the mark around 2014 – approximately half the speed of StashAway’s 3.5-year rise to $1 billion in AUM.
Return-Based Drive
One of the key drivers of inflows has been strong portfolio returns registered over the past few years, according to the firm.
StashAway’s portfolios have generated annualized returns of 4.3-16.5 percent since their July 2017 launch, depending on risk profiles. In 2020 alone, the same portfolios saw returns of 3.4-21.9 percent, outperforming their related benchmarks.
Biggest Competitor: Banks
According to StashAway’s co-founder and CEO Michele Ferrario, the biggest challenge for the firm in the region has been the strong customer preference to use banks to hold cash. In fact, 46 percent of financial wealth in Asia is held in bank deposits, significantly higher than 14 percent in North America.
«For those who do invest their savings, traditional investment options just weren’t acceptable. But we knew that cash in the bank is actually our biggest competitor,» Ferrario said.
«That’s why we’ve always focused not only on sophisticated investment principles and a great customer experience but also financial education to help more people understand how to better manage and grow their wealth. This relationship with our clients and the public has been a key to our fast growth.»
