Booked transactions on VIAC on Monday evening, but seems not reflected on the app the next rebalancing day?

Banks, Insurances & Third Pillar
1

Hi fellow Mustachians

So on Monday evening I changed my VIAC strategy from Global 100(97% stock) to 30% Swiss real estate+70% cash.

But when I checked VIAC yesterday and today, the stock market drop still affected me and my assets dropped significantly. I asked VIAC and they replied "After rebalancing, the securities shares are always delivered with a delay of value date t+2 / t+3 and are only then visible in your app.
But you already participate in the market development from the rebalancing on. "
On the website there is this mention: "The rebalancing was successfully placed on the stock exchange. The booking is delayed by two, respectively three days for funds with Asian exposure.
"

I just want to know if I have in reality incurred a loss due to the stock market drop on Tuesady, even I instructed to move out of the stock market on Monday? Or the platform is simply not reflecting the truth due to this “delivery time”? (I don’t understand this concept very well)

Thanks

2

Until recently, VIAC only did monthly rebalancing. Which is totally fine, because you are investing for a long period of time.

You can’t expect VIAC to sell your stocks immediately on Monday when you changed your strategy. The rebalancing might take some days. VIAC is not a broker like IB or Swissquote.

I guess the better question you need to ask yourself: can I still sleep well with 97% equity allocation? Or another question: why did you change to 30% RE and 70% cash on Monday?

3

The “plunge” (if one can call -3% a plunge) was more on Monday, no? Look at the trends of VT and VWRL for example.
Tuesday was a stabilisation day, kind of.
Selling the ETF’s on Tuesday morning was kind of at its lowest, of this week up till now, unfortunately.
But only 5% under the ATH, so also not really bad.

Try to find a long-term risk-balance for your Viac holdings and don’t get too nervous too quickly.

4

The biggest “plunge” was on Monday. As the value shown by VIAC is delayed by a couple of days, the loss you saw today was probably from Monday. Tomorrow you will likely see the new account value after yesterday’s strategy change.

VIAC mostly uses index funds, which are traded only once a day. This is not comparable to trading ETFs or individual public stock. VIAC will have sent the buy/sell orders (after pooling/netting) to CS for execution on Tuesday. It was then up to the CS fund manager (or automation) to trade the underlying stocks. For a world fund I guess that happened in the afternoon when European and US stock exchanges were open.

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Thanks sorry, English is not my native language, I just changed “plunge” to “drop”
I am quite relaxed. Actually I don’t even know the accronyms you used.
I am only trying to understand VIAC’s mechanism to know what is worth as action from my side. I had the doubt because (all times on CET) on Monday evening I checked my VIAC value(net worth) and I changed the strategy. On Tuesday evening and today I see my value is lower. Maybe it’s because the stock market continued to drop in the US Monday afternoon time and that’s the additional loss? or that’s simply because the number on VIAC is delayed?

6

Thanks. I am only trying to understand VIAC’s mechanism to know what is worth as action from my side. I had the doubt because (all times on CET) on Monday evening I checked my VIAC value(net worth) and I changed the strategy. On Tuesday evening and today I see my value is lower. Maybe it’s because the stock market continued to drop in the US Monday afternoon time and that’s the additional loss? or that’s simply because the number on VIAC is delayed?

7

The point above doesn’t match the point below

Long-term, your “loss” doesn’t matter anyway.The numbers for VIAC are most probably, delayed.

PS: please avoid posting the same things twice.
PPS: you didn’t reply to my question regarding asset allocation, which is still the main question to ask yourself. Don’t be so concerned about loosing a few CHF or USD because of selling at the “wrong” time

Please avoid double posts

8

Why did you sell anyway?

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9

If I remember correctly Global 100 has plenty of USD denominated ETFs so you also incur some currency exchange fees (was it 0.5%?) when selling which might exacerbate the losses.
Those fees aren’t a big deal if you buy & then hold for a long time but if you frequently want to adjust what you invest in, it’s significant.

So, I agree with what others have said (although for a different reason): Find a allocation that you’re comfortable with and stick with it.

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10

The biggest security position in Viac global 100 is “Credit Suisse CSIF (CH) III Equity US Blue - Pension Fund ZB” which is an Index fund that seems to be priced and traded once daily at 1400 CET.

If CS received the sell order after 1400 on Monday the trade would have happened at 1400 CET Tuesday and at Tuesday’s price

Index funds are open ended funds - here an article explaning how these work. Each open ended fund can have a different trading times

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