StashAway to lower projected rate for cash management portfolio to 1.2%

ROBO-ADVISER StashAway will again cut the projected rate for its cash management portfolio from 1.4 per cent to 1.2 per cent from March 1 on expectations of "ultra low" interest rates.

This is the fintech's second revision for StashAway Simple since September 2020, where it had lowered rates from 1.9 per cent to 1.4 per cent.

In an email to customers on Tuesday, the firm said that as Covid-19's impact has "yet to diminish", central banks continue to maintain low interest rates and, in some cases, further lower interest rates.

"Our investment team expects central banks to continue keeping interest rates ultra low in the coming months in order to stimulate their economies. Given the continued uncertain state of the global economy, we'll be adjusting the projected rate for Simple," said StashAway co-founder and chief investment officer Freddy Lim.

To determine the expected projected return on Simple, the firm's investment team reviews the past rate and expected rate with the underlying fund managers, and also assesses the economic environment.

"We update the projected rate whenever macroeconomic indicators and interest rate news seem to affect the foreseeable projected rate," said Mr Lim.