Malaysians save RM130 Million in fees as StashAway leads the Wealth-Tech revolution

KUALA LUMPUR – 19 November 2024 — StashAway, Malaysia’s largest digital investment platform, has saved Malaysians over RM130 million in fees* since its 2018 launch, 

As the first digital investment platform that was awarded a Capital Markets Services License by the Securities Commission of Malaysia, StashAway has been at the forefront of transforming the country's wealth management landscape. Wai Ken Wong, Country Manager of StashAway Malaysia, said, "When we launched in 2018, our mission was to make sophisticated investing accessible and affordable for everyone. Achieving RM130 million in fee savings is a testament to that mission. We’ve since seen meaningful ripple effects from challenging industry norms, including the gradual phasing out of outdated practices like exit fees.”

Despite progress in Malaysia's wealth management industry, a critical challenge persists: High fees. Traditional investment solutions, like unit trusts, typically come with fees such as a 5% upfront sales charge and a 2% annual management fee. These costs, often overlooked by investors, can significantly impact Malaysians’ long-term wealth building – choosing a more cost-efficient investment platform can help Malaysians build a retirement fund of RM1 million up to 4 years earlier,** accelerating their path to financial freedom.

With a simple fee structure (0.2%-0.8% p.a), StashAway has become a trusted choice for Malaysians, particularly younger, forward-thinking investors aged 30 to 45. Its innovative offering, including globally-diversified investment portfolios and cash management solution StashAway Simple™, has attracted clients seeking smarter ways to grow their wealth.

With lower investment fees, Malaysians could reach RM1 million four years earlier 

Insufficient retirement savings has been a significant concern in Malaysia, with a recent survey indicating that affluent Malaysians need RM3.61 million to retire comfortably. Wealth-Tech platforms with lower fees can help Malaysian investors reach their retirement goals faster. 

To reach RM1 million, a Malaysian who regularly invests with StashAway’s General Investing portfolio could reach this milestone in 12 years, while the same investment in a unit trust could take 16 years (assuming identical investment returns before fees). Over a 30-year period, the gap resulting from the fee difference is even more stark: an investor would have accumulated RM7.4 million with StashAway, in contrast to RM2.4 million with a unit trust.**

What’s more, higher fees are not a guarantee of better investment returns. An analysis of unit trusts with over RM100 million in AUM and geographical exposure to markets outside Malaysia reveals that such funds have an average 5-year annualised gross return of 4.5%.*** In contrast, the General Investing portfolios powered by StashAway have delivered an average return of 5.7% since inception.^

StashAway surpassed RM1 billion in AUM in Malaysia, reflecting strong growth 

The platform's commitment to delivering strong returns at cost-efficient fees has fueled trust and organic growth. StashAway Malaysia surpassed the RM1 billion milestone in Malaysia in 2023 – a new milestone just two years after the company exceeded USD1 billion across its five markets (Singapore, Malaysia, Thailand, Hong Kong, and the UAE) in January 2021. 

* RM130 million in fees saved: The calculation compares StashAway’s management fees for investment portfolios (0.2% to 0.8% p.a.) against typical fees for unit trusts in Malaysia (5% upfront sales charge and 2% annual management fee). The calculation includes rebates from StashAway SimpleTM, a cash management portfolio. A rebate of 0.29% is fully awarded back to clients – representing fees that clients typically have to pay if investing directly with the fund manager.   

** Time taken to reach RM1 million: The investment projection is based on a simulated scenario where RM50,000 is invested annually, with both the StashAway portfolio and the unit trust compounding at 10% per year (in line with the average annual return of MSCI World Index between 1978 and 2023). Unit trust fees are based on the average cost of unit trusts in Malaysia (5% sales charge and 2% annual management fee), while StashAway’s fees are representative of the platform’s highest pricing tier (0.8% p.a.) and average expense ratio charged by ETF managers (0.2% p.a.).  

*** Source: FSMOne

^ In MYR terms. Past performance is not indicative of future performance. Performance figures are net of fees. Performance figures assume that dividends or any payouts were reinvested. Before investing, investors should carefully consider investment objectives, risks, charges and expenses, and if need be, seek independent professional advice.