StashAway promises guaranteed returns with new product

The StashAway team / Photo credit: StashAway

StashAway, a digital wealth manager based in Singapore, has launched a new product that promises guaranteed returns on any investment amount.

The product, called StashAway Simple Guaranteed, offers a rate of 3.4% per annum (as of April 24) for a lock-in period lasting six months. The firm won’t charge any management fees for the offering.

StashAway Simple Guaranteed is composed of fixed deposits from banking providers regulated by the Monetary Authority of Singapore. The firm said that the rate of return for the product will be updated daily and clients can choose when to lock in their rate. They will receive their guaranteed returns after six months and their funds will be protected from market volatility, according to the company.

The product’s release comes at a time when many Singaporeans are looking for lower-risk investments amid market uncertainty. Fixed-income products have become more popular in the city-state as investors seek higher interest rates, an OCBC Bank report showed.

StashAway was founded in 2016 by Michele Ferrario, ex-CEO of Zalora; Freddy Lim, former exec from Nomura; and Nino Ulsamer, co-founder of Divvit and Personio. Besides its new offering, the company also personalizes financial planning and portfolio management for both retail and accredited investors.

Besides Singapore, the robo-advisor offers its services in Malaysia, Hong Kong, Thailand, and the Middle East and North Africa region.

In June 2022, StashAway laid off 31 employees or 14% of its staff.

See also: Sequoia-backed StashAway’s revenue grows 2.5x, but losses widen