Riding the Wave of Change: SqSave Portfolios Demonstrate Resilience and Growth Amid 2023's Market Fluctuations

5 December 2023

As in 2022, the year 2023 has been volatile for both equities and bonds. November, however, was a stellar month. Global stocks closed out their biggest monthly rally in the year, partially driven by the opinion that the Federal Reserve and other central banks are taming inflation without severely dampening overall economic activity; and that interest rates in the US and the eurozone have peaked and are likely to be cut in the first half of next year. This renewed risk appetite also flowed into US treasuries and corporate bonds market.

We are pleased to note that our SqSave reference portfolios have followed the uptrend and are showing good results. The good outcome is understandably less volatile than the overall market – as per our risk-focused AI-driven SqSave investment algorithm design.

Our SqSave algorithms are data-driven and designed to be longer-term focused, without the short-term, knee-jerk and human emotional biases. Hence, when there are turning points, we expect SqSave short-term results to be better when markets fall and not as good when markets turn up.

With this upturn, we expect a steady performance improvement in our SqSave portfolios, especially the higher-risk ones, over the next 6 to 9 months as the SqSave algorithms correct for the effects of the 2022 bear market. Many may have forgotten that in 2022, the S&P fell -19% and the Nasdaq fell a whopping -33%!

As expected per our SqSave investment design, our lower-risk portfolios have weathered the market downturns well, as well as to decisively capture the market upside in Nov 2023.

Importantly, on the 2023 Year-to-date (end-November) basis, most of our SqSave reference portfolios performed well against benchmarks and peers, as presented in the performance table below:

SqSave Reference Portfolios Returns Summary (SGD terms as at 30 Nov 2023)*

*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:

1. Year-to-date (end-November 2023): SqSave's portfolios continue to outshine our benchmarks and competitors.
2. Trailing One Year (T1Y): Our lower-risk portfolios have surpassed both benchmarks and competitors, whereas our higher-risk portfolios, despite challenges, have generally held their own in the larger context.
3. Trailing Two Year (T2Y): Our lower-risk portfolios have outperformed benchmarks and peers, while our high-risk portfolios are lagging. This is mainly due to these portfolios not fully capturing the upside of the November rally. We expect a more robust performance in the coming months as our algorithms adjust with the newer data.

Navigate Your Financial Future with SqSave

It would have been an ideal moment to consider SqSave before the November 2023 upturn. However, as markets evolve, staying invested to ride out the ups and downs is crucial for growth. Whether planning for retirement, acquiring your dream home, or growing your financial assets, SqSave offers a competitive blend of proven expertise and strategic insights.

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.

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