Frankly for pillar 3a?

Banks, Insurances & Third Pillar
90

Ok, and this is probably not given forever, I guess this hedging is rolled every 3 months or so, each time to the current conditions.

91

Shouldn’t she (ultimately) decide for herself?

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92

She says: I don’t know, you decide.

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93

Hard to tell. According to the factsheet, 72.37% of the assets of the fund are denominated in CHF.

Of the total assets of the fund:
30.09% are swiss stocks
2.51% are swiss real estate
0.18% are CHF held for liquidity purposes
For a total of 32.78%.

There should be roughly 72.37%-32.78% = 39.59% of hedged assets in the fund. Now, to know the cost of that…

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94

Regarding the cost of hedging, I am a complete newbie on the matter but as I understand it, it is a futures contract on currencies, so the real cost is linked to the difference between expected and real currencies exchange rates + fees.

VIAC has two funds that can be purchased as unhedged or hedged:

1Y/3Y/5Y annualized returns in CHF varry:

  • Large Cap unhedged: 32.67%/11.47%/12.52%
  • Large Cap hedged: 36.29%/12.12%/12.19%
  • Small Cap unhedged: 47.14%/8.99%/11.88%
  • Small Cap hedged: 50.25%/9.64%/11.6%

So, in the recent past, hedging has had a positive effect on these funds but it’s the opposite on the 5Y timeframe.

That’s only one of the effects on returns of Frankly’s strategies, though. Their chosen funds and their fees have probably a bigger impact than just hedging itself. I’d compare total returns for the various 3a providers and use that to make my decision.

95

On a custom strategy with Viac, going to hedged etf was the only possibility to increase your World shares exposure but it may have changed (in order to keep a Swiss share not super high ).

I will go without hedged etf if it is now possible. I will try next year when I could change my Portfolio exposure.

96

Ha! I’ve just answered a survey with a lot of questions regarding all-inclusive banking offers, all-in fee investing solution and in app banking, linking the Zürcher Kantonal Bank and Frankly. Sounds interesting, though I’m not sure they’ll come up with a competitive offer and good transparency.

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97

Just saw this:

Die Vorsorge-App «Frankly» der Zürcher Kantonalbank (ZKB) hat die Grenze von einer Milliarde Franken an verwalteten Kundenvermögen überschritten.

That’s from 0 to 1B AUM in 1 3/4 years (03.20-11.21).
Viac needed about 4 years to reach 1B.

I believe in a forum ranking, Frankly would come a distant third behind Viac and Finpension.
Shows the pent-up demand and the difference a strong backer (ZKB) and a bit of marketing makes to the general public who may be hesitant for bringing their money to lesser well-known institutions.

7 Likes
98

Jut sold out of the Extreme 95 Index solution (to invest in the active counterpart) and the 0.09% redemption fees of the fund are real. I guess the 0.1% fees on issuance apply too when buying shares.

These fees are apparently added to the assets of the fund, so holders should benefit. The active solutions don’t have them.

99

What made you change to the active fund, after initially being “not impressed”?

100

The shorter time for selling/buying assets and the lower fees: Timing the market using moving averages - an experiment - #53 by Wolverine

I’m not much concerned about the fund’s low amount of assets under management for now because I still have only a few amount of money at stake, we’ll see if I react differently when it will have grown into more of a sizeable chunk (if it actually does, of course).

Also, I think I might have to revise my vision of bonds in these kinds of 3a products. My basic stance is that I’m not interested in bonds (or have not been) under the circumstances of the last years because I’d rather hold the safest bonds and more stocks than more bonds with a slightly higher yield but also slightly more risk (and I’d rather hold cash in an insured bank account than negative yielding bonds). Here, the amount of stocks is caped so it’s possible that using slightly higher risk bonds with slightly higher yield than cash might actually be worth it (I haven’t studied it yet so have no educated opinion on it as of now).

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101

I’ve tried the mode to invest manually, it’s fairly intuitive and well built. We can choose the amount of CHF we want to use to buy/sell shares, so it’s possible to adopt a product designed with more stocks and tone it down with cash (to make a less volatile investment with cash instead of bonds, and without being limited to the preset amounts). That would require manual rebalancing, though, so it wouldn’t auto-correct toward the starting allocation as the market goes up or down.

It feels well done, kuddos to the coders and designers who made that!

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102

Just got a popup today encouraging me to stay the course and redirecting to this page:

I didn’t expect it, it’s actually a nice perk that would make me more confident in recommanding the solution to other people.

103

image

Uhm. Someone isn’t that good with charts.
:smiley:

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104

Oh yeah, their charts are awful and the choices of design attrocious. I’m willing to sacrifice my eyes for my long term financial prospects but that’s something to keep in mind.

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105

Hi,
Does anyone know if Frankly supports exporting the transactions as CSV file just like Finpension does?
I am also missing this functionality with VIAC, I did write them around 2 years ago and they said they would forward that to the developers but nothing happened as far as I know.

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106

Not that I can find. They say they are working on a web browser version so it might come with it, or not, if or when it comes out. For now, their functionalities are pretty much set at managing your money and displaying a snapshot of the current status of your accounts (and occasionally spamming you with special offers and/or prizes if you refer people in or add new inflows…).

107

Since some time-ago frankly accounts/portfolios appear in your ZKB e-banking account, if you have one. You might be able to generate a CSV from there. I can have a look for you in the coming days, if you want. Let me know.

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108

Thanks to both of your for your answers. I totally forgot that Frankly is a mobile-first app and does not have any web interface or not yet. For this simply fact Frankly is a no go for me right now. I will add my 3a money for this year probably all with Finpension again. Hopefully next year VIAC would have implemented a CSV export function :wink:

109

There is now a web version:

Neben der App ist frankly neu auch als Web-Version verfügbar. Das heisst, du kannst deine frankly Säule 3a nun auch bequem vom Computer oder Tablet aus verwalten. Probiere es doch gleich mal aus!

Übrigens: Du kannst für die Web-Version ganz einfach die gleichen Zugangsdaten verwenden wie in der App. Beachte dabei bitte, dass die Mobile-Nr. mit der Vorwahl (+41) eingegeben werden muss, damit das Login erfolgreich ist.

1 Like