My cantonal bank did not charge me anything for transferring funds to Finpension.
With bcge, it was 100.- by 3rd pillar to close.
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Okay, now, what do you mean exactly by transfer? Paying in your yearly contribution by transferring money from a checking account (this is what I meant) or transferring money from another 3a foundation to finpension?
it is the transfer for annual contribution - cash
Hallo zusammen
I have a question:
want to open Säule 3a via Finpension and replicate the MSCI World with an individual strategy.
What difference does it make if the fund is hedged vs. non-hedged (Fremdwährungsanteil 100% vs 0%)?
Also, would the replication with CSIF World ex CH Blue and Switzerland Total Market Blue replicate the MSCI World? (when I get the % correct)
Do I have to worry about some additional paperwork/tax implications/additional fees with this strategy?
Thank you for any help!
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This thread may be helpful: How do you hedge your currency risk?
I would say the general consensus is that passive long-term investors shouldn’t hedge equity funds. Vanguard follows the same philosophy (if I remember correctly, they don’t offer any hedged equity index funds).
Yes, that combination should track MSCI World. It presumably includes additional Swiss small caps but the impact is likely insignificant. With additional index fund(s) you can also track MSCI ACWI or MSCI World IMI, if you prefer.
No, these two index funds have 0% TER at finpension (i.e., the fund management fee is covered by the overall finpension fee). Dividends in 3a are exempt from taxes and no declaration/paperwork is required at all (besides the 3a contributions to get the income tax deduction). And at least for CH, US and JP companies, there aren’t even any withholding taxes with these funds in 3a (or they are automatically refunded to your 3a account).
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Finpension have added some institutional funds from UBS. For now equity funds are for Switzerland, MSCI World ex Switzerland, and MSCI Emerging Markets only.
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Any “outperformers” compared to the respective CS/Swisscanto funds for the new UBS funds? I remember the Swisscanto EM fund compared favorably to the respective CS EM fund
Don’t Swisscanto funds have higher spreads and some sort of buy-in load too?
Maybe this has been adressed before: Most CSIF funds have buy-in loads (“Ausgabeaufschlag”) of 5%.
Example: CSIF (CH) III Equity World ex CH Blue - Pension Fund Plus ZB
Is this load of 5% waived for institutional clients like Finpension?
No, they don’t. Check the official factsheet: https://finpension.ch/app/uploads/factsheets/CH0337393745_fact-sheet_de.pdf?t=2023-11-02
In the factsheet you see that that it’s only 0.08% and that’s simply to approximately cover the trading costs/spread of the underlying assets (these extra 0.08% become part of the fund). There may be banks/brokers that charge additional fees for mutual funds but that doesn’t apply here.
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Another comparison, and I still don’t see anything better than finpension for 3a. Though in case of True Wealth, I am not satisfied only with funds that they offer.
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Hello,
I have created a Finpension account and searched the forums for World Index Portfolios. What a flood of information. I’m sure this question has already been answered somewhere. as I read, I keep realizing that I don’t know anything. Actually, I just want to get started, but I also want to do it right. Now I’m reading about looking at 3a and free assets in the overall portfolio. Or to take the USA portion out of the 3a.
I came across various approaches.
-
CSIF (CH) 3 III Equity World ex CH Quality - Pension Fund DB 99%
-
VT replica
CSIF (CH) III Equity World ex CH Blue - Pension Fund Plus ZB 84%
CSIF (CH) Equity Emerging Markets Blue DB 12%
CSIF (CH) Equity Switzerland Large Cap Blue ZB 2%
CSIF (CH) Equity Switzerland Small & Mid Cap ZB 1% -
and others ^^
But now finpension also offers UBS and Swisscanto funds. Perhaps I have overlooked the discussion on this. Is the 2nd approach still recommendable? Or would you replace the funds with UBS or Swisscanto? Or is there another better combination?
Merci and Gruess
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Well, it’s a two levels problem. First you have to decide which indices you want to replicate in your portfolio. Second, you decide which funds to take for this.
There are also other levels. Most importantly, consider all your stocks holdings, no matter which broker, as a part of one overall stocks portfolio. Then you can do things like this:
Together with fixed income holdings (cash, bonds, fixed term deposits), they constute a stocks+fixed income portfolio that you can control. Add your pension savings, real estate, crypto and that picture that you got from your grandma, minus all debts, and this is your net worth, or, as I and some other prefer, net wealth.
All these levels were extensively discussed in this forum and where not.
hello dr pi,
thank you very much for your feedback. i don’t have a picture of my grandma. i really appreciate the forum and the information. i keep coming across new things and realizing how much is being discussed here. it’s just really difficult to classify and understand everything. i don’t think there’s a one-size-fits-all solution. for now, i just want to start with finpension. preferably the same as in my IB account with the VT Total World. optimize later. i’m sorry if i opened an unnecessary post ^^.
btw. do you use one of the strategies you linked? how does it perform?
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Hello and a late welcome.
That was not at all unnecessary. Very often showing the direction is everything that one needs.
Now you have already formulated the solution for the top level problem: you want your finpension strategy to replicate VT. There is information how people do it with respect to indices used. There is also info about advantages of different funds.
Why not just take one of the default strategies proposed by Finpension?
Lots of us on this forum are over-optimising and I’m not sure if the result is better in the end.
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I split the world!
Interactive Brokers: US stocks, MSCI Emerging Markets, MSCI EMU.
Finpension 3a: MSCI Europe ex EMU ex CH, Japan, Canada, MSCI Pacific ex Japan, MSCI EMU.
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what i keep hearing is, don’t try to beat the market. for me, finpension’s suggestions are a blend. VT somewhat tracks the overall market. so it is easier and better to take a world index than a blend with a different weighting.
basically nobody knows what will happen. maybe in 50 years there will only be crypto and our monetary system as we know it today will be gone ^^ in other words, you can optimize on past data, which does not speak for the future. so i keep it simple for now. because, when investing, you just have to start.
finpension Aktien 100 holds 39% of Swiss equities. That loses a lot of diversification compared to a VT-like portfolio. Unless you’re particularly convinced of this strategy, I would advise against that. I suspect they likely can’t offer less CHF exposure in default strategies for regulatory reasons. However, the restriction doesn’t apply to their custom strategies.