Stashaway, a regional investment platform, has launched a new fixed-income portfolio, driven by JP Morgan Asset Management (JPMAM), designed with an aim to provide a simpler way of earning consistent income.
The income investing portfolio is the first-of-its-kind to provide investors with full flexibility to customise their income stream, with the option to switch between reinvesting dividends and receiving a regular payout, according to a statement by the firm.
Although many Singapore residents rely on investment income for financial security, they are often confined by traditional income solutions that force a choice between reinvestment and cash payout. Recognising the fluidity of investors’ financial needs, the income Iivesting portfolio offers flexible payout options, including the ability to adjust the payout amount and cadence at any time.
“Singapore investors have been enjoying the benefits of higher interest rates, but with growing anticipation of potential rate cuts, many are now looking to secure attractive longer-term yields. Our Income Investing portfolio presents a timely solution,” said Michele Ferrario, co-founder and CEO of Stashaway. “We know that our financial needs can and do change over time. Yet, investment solutions today still adopt a one-size-fits-all approach.”
Using JPMAM, the income investing portfolio is a way to invest in a globally diversified fixed-income portfolio. JPMAM will provide market insights and asset allocation guidance for the portfolio, which is managed by Stashaway. With the aim of maintaining low volatility while optimising yield, the Income Investing portfolio has a 5.51% per annum yield to maturity (as of 31 May 2024).
This partnership allows retail investors to access a broad range of JPMAM fixed-income products at a low fee, with no minimum investment amount. Stashaway clients should see significant cost savings from a 100% rebate on trailer fees and the elimination of additional charges such as upfront fees, translating to higher net returns for clients.
“We are excited to partner with Stashaway to launch ‘income investing’ powered by JP Morgan Asset Management. This partnership will give investors access to JP Morgan Asset Management’s institutional insights and investment capabilities via StashAway’s platform, presenting a globally diversified and actively managed fixed-income portfolio for the local market,” said Leon Goldfeld, Apac head of asset management solutions at JPMAM.
The portfolio is hedged to the Singapore dollar, which helps in minimising currency risk while providing global diversification. It also has a straightforward management fee structure of 0.2% to 0.8% per annum, with no lock-ins or minimum investment required.
