3a solution from Finpension

[rexleonis]

@Dr.PI

Therefore, I am switching to this fund only on finpension.

Why not switch to CSIF (CH) III Equity World ex CH Quality - Pension Fund (CH0253609066) which has higher returns?

[Dr.PI]

And will it have higher returns in the future?

[San_Francisco]

We don’t know.

But for the last 27 years it pretty consistently had them.

[rexleonis]

@Dr.PI

And will it have higher returns in the future?

OK, so why did you choose your fund compared to this one?

[Dr.PI]

I think I wrote everything above.

[rexleonis]

Yes, you wrote the reasons why you chose it but you haven’t mentioned/compared it to the fund I mentioned. That’s what interests me.

[Dr.PI]

Aren’t you capable to do it yourself?

Note that CH0429081620 was my answer on the following question: which fund offered by finpension profits most from being tax-sheltered (and not normally available for retail customers)? I may invest in some Quality funds, just not at finpension.

[rexleonis]

@Dr.PI

Aren’t you capable to do it yourself?

If you feel your time being wasted on a public forum, I’d be happy to pay a consultation with you.

[Barto]

all world vs quality trackers have been discussed previously in this thread

[GalaxyTraveler]

What is the difference between VIAC’s “CSIF World ex CH – Pension Fund” (CH0032400639) and Finpension’s “CSIF (CH) III Equity World ex CH Blue - Pension Fund Plus ZB” (CH0429081620)?

Do they both profit from foreign dividends by not paying withholding taxes?

[jay]

Both profit from the pension fund exception for withholding taxes from the US and possibly other countries. However, only the latter profits from the new exception for withholding taxes from Japan.

VIAC will also switch to the better ‘Pension Fund Plus’ on August 31, though. I.e. this difference between VIAC and Finpension will be eliminated.

[GalaxyTraveler]

Has anybody been able to figure out figures like the dividend yield and the total number of holdings for each of the funds at Finpension?

The factsheets show only if a fund is accumulating or distributing but it doesn’t state the percentage. Also, the factsheets show the top 10 holdings but not the total number of holdings.

[Dr.PI]

Yes they changed factsheet format in July. Before everything was there. Look at factsheets of corresponding MSCI indices, the replication should be pretty exact.

[pch]

Finpension looks interesting. Does it or VIAC have a stop-loss option?
Thank you

[Dr.PI]

1. Of course not, there are funds traded once per week.
2. Stop-loss is of no use for a long-term boglian investor. If market crashes, you buy more.

[nabalzbhf]

I’m kinda glad they don’t, that’s the best way to teach people not to gamble with their pension money

[Dr.PI]

@Dr.PI

There are also “CSIF (CH) III Equity US Blue - Pension Fund ZB” (CH0030849712) and “CSIF (CH) I Equity Japan Blue - Pension Fund” (CH0357515474), which seem to have the same level of tax advantage.

Note 2: as it was pointed by respected forum members, the tax advantage actually exists for US and Japan stocks only, which are available as separate funds. So to maximize the tax advantage, one should allocate money deposited at finpension to US (better situation than Irish ETFs) and Japanese “Pension Fund” equity funds.

Copy the great performing VIAC Global 100 portfolio?

Pension funds have taxation privileges that apply to the US and now to Japan, for VIAC (Finpension had Japan already included). I would try to maximize that and, considering all my assets (taxable, 3a, 2nd pillar) as a single portfolio, would use my 3a for the part invested in the US and/or Japan as much as I can. All in all, I’d focus on a target global allocation for the whole portfolio, then use VIAC for the tax advantaged funds (CSIF US - PF, CSIF Japan - PF and/or CSIF World ex CH - PF Pl…

Interactive Brokers - all eggs in one basket?

…or - and you just gave me that idea - a tax-advantaged „pension fund“ fund - such as the ones available at VIAC or finpension. I similarly bought (outside of pillar 3a) three „Quality“ ETFs for the US, Europa and Japan, while ignoring the few remaining developed markets.

Therefore soon I will be 99% US at finpension.

[jay]

@Dr.PI

Note 2: as it was pointed by respected forum members, the tax advantage actually exists for US and Japan stocks only, which are available as separate funds. So to maximize the tax advantage, one should allocate money deposited at finpension to US and Japanese “Pension Fund” equity funds.

I don’t think it’s just US and Japan. For one, you definitely get the same tax advantage for Swiss stocks as in 3a you’re exempt from Swiss withholding and income taxes. UK generally doesn’t levy withholding taxes on dividends, as far as I can tell, so you get the same tax advantage.

Australia and Canada also waive taxes on dividends paid to pension funds according to the double taxation treaties. And there may be other countries. However, I don’t know whether the CSIF pension funds can/do benefit from this.

Overall I estimate the remaining withholding taxes in 3a to be fairly small compared to the income taxes you save with 3a. I.e. I wouldn’t bother with making the investment strategy more complex given that you don’t pay withholding taxes for presumably the 4 largest allocations in typical Swiss strategies (and there are also non-reclaimable withholding taxes for both US and IE world ETFs). It’s noise compared to various other decisions. Or am I missing something?

[Dr.PI]

@jay

For one, you definitely get the same tax advantage for Swiss stocks as in 3a you’re exempt from Swiss withholding and income taxes.

Yes, therefore you don’t have to put them to 3a.

@jay

UK generally doesn’t levy withholding taxes on dividends, as far as I can tell, so you get the same tax advantage.

Same here.

@jay

Australia

0% withholding tax.

@jay

Canada also waive taxes on dividends paid to pension funds

Maybe, but I haven’t seen anything about it.

@jay

Or am I missing something?

Maybe one thing: for a “correctly” geographically weighted portfolio you need a lot of US!

[jay]

@Dr.PI

Yes, therefore you don’t have to put them to 3a.

I don’t understand. From a tax perspective US and Swiss stock are the same with regards to the difference between 3a and taxable assets. You have to pay full income taxes (and no non-reclaimable WHT) on dividends outside 3a and no income taxes (and no WHT) at all on dividends in 3a. That’s assuming you invest in US stock via US ETF with a qualified intermediary broker and in Swiss stocks directly in Switzerland. Also assuming you can claim back the full 15% via DA-1 (i.e. your effective income tax rate is high enough).

Thus, I don’t see why US stock would be better in 3a and Swiss (and Japan, UK, maybe others) stock wouldn’t.