January 2024 Performance Review and Strategic Adjustments

15 February 2024

In January, our portfolios displayed strong performance, with the majority surpassing their benchmarks. We are proud to have outperformed several of our competitors’ portfolios during this period – attesting to the strength of our investment approach.

Short-Term Performance and Algorithm Focus

Over the past three months, our higher-risk portfolios have shown positive results but have relatively underperformed. This is due to our AI-driven algorithm prioritizing long-term stability over short-term gains. As a result, during periods of rapid market fluctuations, we may experience some variance in performance compared to short-term-focused strategies.

Adjusting Our Strategy

Recognizing the need for improvement, we have reviewed our algorithms and made strategic adjustments to better align with market conditions. These changes are aimed at enhancing our performance in both the short and long term.

Looking Ahead to February

As we move into February, we will closely monitor our portfolios' performance. We are confident that our modified strategies will lead to improved results and better adaptation to market dynamics.

SqSave Reference Portfolios Returns Summary (SGD terms as at 31 Jan 2024)*

*Inclusive of ETF expense ratios and net of SqSave management fees. SqSave uses AI to design and manage diversified investment portfolios for each investor. Because SqSave is not an investment fund, there is no single return measure. Instead, every SqSave investor has his/her own investment performance as each investor is managed separately by our SqSave AI. As investors can withdraw and top-up any time, investment returns will be affected by individual investor decisions. Hence, SqSave uses reference portfolios which are actual portfolios managed on an ongoing basis, without any interference with withdrawals or top-ups, to measure investment performance.
** Performance numbers for competitors are estimates. Abbreviations: BMK: Benchmark; Ret: Return, T2Y: Annualized Time Weighted Return

Key Takeaways:

T1Y: SqSave's portfolios (especially our low-risk ones) continue to outshine our benchmarks and competitors. High-risk portfolios closely match benchmarks and some of our competitor portfolios.
Trailing Two Year (T2Y): Our lower-risk portfolios continue to recover from their 2022 drawdown and outperform benchmarks, while our high-risk portfolios are lagging. We expect a more robust performance in the coming months as our as the effects of our new strategies materialize.

We understand the significance of closely monitoring our portfolios' performance, especially in the wake of strategic adjustments. As we move forward into February, our team will maintain a vigilant watch over our portfolios. We are confident that our modified strategies will yield improved results and align better with market trends.

Thank you for entrusting us with your investments. We are excited about the journey ahead and look forward to achieving continued success together.

Yours sincerely

SqSave Investment Team

Disclaimer

The contents herein are intended for informational purposes only and do not constitute an offer to sell or the solicitation of any offer to buy or sell any securities to any person in any jurisdiction. No reliance should be placed on the information or opinions herein or accuracy or completeness, for any purpose whatsoever. No representation, warranty or undertaking, express or implied, is given as to the information or opinions herein or accuracy or completeness, and no liability is accepted as to the foregoing. Past performance is not necessarily indicative of future results. All investments carry risk and all investment decisions of an individual remain the responsibility of that individual. All investors are advised to fully understand all risks associated with any kind of investing they choose to do. Hypothetical or simulated performance is not indicative of future results. Unless specifically noted otherwise, all return examples provided in our websites and publications are based on hypothetical or simulated investing. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because hypothetical or simulated performance is not necessarily indicative of future results.