3rd pillar investment solution from VIAC

[Giff]

Now I have:
25% SPI extra
12% SMI
30% CSIF world ex CH (in USD)
rest is cash waiting for a dip like these days’ one

If I look for funds denominated in CH (no bonds), I see:
CSIF SMI (costs 0%)
CSIF SPI extra (0%)
UBF ETF SLI (0.2%) not sure how this one differs from the SMI above - need to check
CSIF CH real estate (0%)

Would it make sense to find a balance between only these funds to avoid the high fees on USD/CHF conversion?

The assumption is that I have the rest of the world covered in IB, in USD and EUR, and VIAC would only have enough funds to justify exposure to CH market.

[Giff]

@yakari

with smi and spi extra you have the entire ch market, do not need sli; if you want to understand the difference btw sli and smi, have a look at the factsheets

unfortunately they only allow me to buy a small percentage of SMI and SPI extra…

@yakari

a correct diversification (all world) of your entire portfolio (3a and ex 3a) is a must do; if you have a reason, you can over / underweight a region, but i would not exclude one (in your case EM)

I do have emerging makets in my IB portfolio, plus European and America REITs

@yakari

Using viac only for ch stocks is probably not a good idea bc you will have an overexposure to ch market (home bias), reducing diversification, increasing risk.

That depends on the amounts. I invest much more than the 6.7K yearly 3a money in the rest of the world (which, ok, also includes Switzerland)

@yakari

putting regional etfs with high dividends in viac is a good strategy (tax reduced); i dont but others here could explain how

I tend to avoid high dividend stocks.

[Giff]

I ran the numbers and by buying the max allowed of SPI, SMI and real estate with all my viac money I would achieve a 10% stock exposure to CH (also taking into account my other etfs which contain swiss stocks) and 1% of my NW in terms of Swiss REITs, which I find good.

Unfortunately, by maximizing all these funds I am still left with 15% cash, a bit too much for my taste. Maybe some corporate bonds? Will have to decide tonight, hoping the bottom is in.

[Giff]

@yakari

Bonds have a negative yield, you better stay with cash. If 15% cash is too much, invest more in equity.

That’s what I would ideally do, but without leaving the CHF I can only buy the UBS SLI fund which is exactly like the SMI and costs 0.2. Maybe I get some world ex CH and forget about some forex exchange fees…

[Cortana]

Viac has 2% absolute rebalancing bands. As markets are highly correlated rebalancing will be very rare.

[dbu]

@Giff

Will have to decide tonight, hoping the bottom is in.

I wouldn’t make my decisions based on this (hope).

[Giff]

@dbu

I wouldn’t make my decisions based on this (hope)

I followed your advice and waited, I was also too tired to do anything yesterday. Today starts solid green, I knew it

Well, now it’s back into red. Let’s see what March brings us.

[Cortana]

2nd pillar solution will be ready by end of this month.

[nugget]

yes, i am sick of this

[Cortana]

https://www.morningstar.ch/ch/funds/snapshot/snapshot.aspx?id=F00000HGRG&tab=3

Large Cap: 26.40%
Mid Cap: 49.90%
Small Cap: 23.70%

It’s a Mid Cap Growth fund, so unfortunately no small cap value premium. Nevertheless I chose 7% SMI and 30% SPI Extra in Viac.

[Mustachioed]

As a short aside, I really wish the VIAC app showed the total combined balance of all opened 3a accounts on the very first screen, rather than making you swipe through and calculate it all manually…

[dbu]

They have this sorted out in the web app; I agree it would be useful to have it sit in the mobile too.
Looping in @VIAC_Daniel

[Cortana]

And it would be great if you could see the single positions in the mobile app too (amount in CHF).

What I would also appreciate in the web app is a combined VIAC portfolio view with all positions summed up together.

[Cortana]

No, because I have VIOV (US small cap value) in IBKR and I always look at my total portfolio. In VIAC I use 7% SMI, 30% SPI Extra, 18% Europe ex CH, 10% Japan, 5% Pacific, 7% Canada and 20% Emerging Markets. In IBKR I use VTI and VIOV.

If you want my Excel spreadsheet: https://drive.google.com/file/d/1zo1sydtXFzLG8a9s7vEh8bNqoYktioNM/view?usp=sharing

[Kirby]

Hi Guys! My first post here but been reading you since the beginning of this year.

I cancelled my 3a with Swiss Life end of January, and (with some luck ) it was transferred only today to my new 3 Pillar Viac.

And now, i’m considering to go all in (about 12k…btw i’ve lost almost 6k with the transfer ) with the Global 100 strategy…

What’s your opinion ? Should i split it with cash/Global 100 and wait for the next rebalancing (1.5) to invest my cash ?

PS: sorry about my English

[Neville]

What’s your time horizon?

[Giff]

how could you lose 50% of the money “with the transfer”? must be a typo… next rebalancing should be beginning of April, not May 1st. anyway it’s hard to give you advice without knowing more of your situation.

[Kirby]

@Neville: My time Horizon is more than 30 years… i’m 26.

@Giff: I paid the maximum during 41 months for my third pillar with Swiss Life (41x560CHF=22’960CHF-seller’s commission and penalty= 11’551CHF. That’s hard and it’s unfortunately not a typo…
Next rebalancig i’m talking about is 1.5, cause in April i will at least invest 50% in Global 100… just asking if i should go all in because of the situation now or give the market another month to invest the other 50%…?

[Giff]

@Kirby

just asking if i should go all in because of the situation now or give the market another month to invest the other 50%…?

I wish I knew the answer to that question

investing in two tranches could be suboptimal in the long run, but might give you the impression of playing it safer. because you are so young it really won’t matter

[dbu]

@Kirby

Next rebalancig i’m talking about is 1.5, cause in April i will at least invest 50% in Global 100… just asking if i should go all in because of the situation now or give the market another month to invest the other 50%…?

Did you already pay in this year’s 6.8k into 3rd pillar?
If not - get done with it and go all in with this transferred amount from 1.4.
If yes - do the same.

You will most probably be investing much more than this amount in the coming years.
And no one knows which direction is this going now - neither till 1.4., nor 1.5 (nor 1.12., although very hopefully way upwards )
If nothing else, now is a much better time than if you had gotten in on 1.2., so you might make up at least part of those “lost” 6k sooner rather than later.

Cheers and good luck