SqSave manages each client’s investments separately. As such, SqSave uses reference portfolios for 5 broad risk classes, namely Conservative, Balanced, Growth, Aggressive and Very Aggressive, to track performance.
For each of the broad risk classes, we selected the top performing funds as well as available passive benchmark portfolios and compared them with our 5 reference portfolios using (i) Sharpe Ratio and (ii) Maximum Drawdown.
Sharpe Ratio measures the risky returns achieved per unit of risk taken. For maximizing returns, the higher Sharpe Ratio is preferred.
Maximum Drawdown is the measure of downside risk over the investment period. The bigger the Maximum Drawdown, the upside required to breakeven will be greater. Hence, the smallest Maximum Drawdown is desired.
The results clearly show that our SqSave reference portfolios compare well and even beat the top performing funds and passive benchmark portfolios in terms of risk-adjusted returns and downside risk control.
Sharpe Ratio & Maximum Drawdown (Jan 2016 to March 2019)
All 5 SqSave risk class reference portfolios (shaded orange) compare favourably with the respective top performing funds (shaded blue) as well as the passive benchmark portfolios (shaded grey and black).
Absolute Investment Returns (Jan 2016 to March 2019)
The 5 SqSave reference portfolios delivered commendable absolute returns (ranging from 6.8% for Conservative to 8.3% for Very Aggressive/Aggressive) against the top performing funds in the respective risk classes.
List of top performing funds used in the comparisons