Investment plan strateo worth it?

I’m CH citizen. Anyone has experience with Strateo investment plan “Strateo Invest”? I would like to start my investments with 1 fund (UBP Swiss).
What about fees, deposit, app?

I can’t find that fund, do you have a link ? Edit : Do you mean UBAM Swiss Equity AC ? There is 1.4% fees in the fund.

It looks to me that Strateo Invest is a free program to buy high fees funds.

yes, right. anyone investing in “strateo invest”?

ubam ch equity

Out of curiosity: Why this one?
My 2 cents: nope (too expensive)! Nope (too small)! Nope (too swiss)!

Link Edited:
https://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F0GBR04AQH&tab=3

Well in fact i have already a global portfolio. Wanted specific swiss fund. made several (around 10-12) other CH fund equities comparisons. All base indicators are so far the best. you are hopefully not telling me, that you are judging a fund solely on “too expensive”.

the question is: has someone in the forum experience to share for “strateo invest”? any other fund saving plans apart strateo worth it?

Are you aware it is actively managed?
How about Ishares core spi?

No sorry.

No, but i don’t see what is so special about this fund. It is too expensive for what it offers. Active fund almost never beat their index after fees over the long run. Compare the compounding effect of TER 0.1% vs 1.4%.Now you can tell me why you strongly believe in it, maybe i missed smth.

Edit:

https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator

https://www.morningstar.ch/ch/etf/snapshot/snapshot.aspx?id=0P00012TJ8

Ok I see. Religiously about ETF … nevermind. Forget it.

The question is: What are you getting for the price you pay?

UBAM Swiss Equity AC1
9.1% Roche Holdings
8.4% Nestle nom.
7.8% NOVARTIS AG-REG
7.1% Lonza Group
4.9% Zurich Insurance Group AG
4.5% Partners group
4.5% GIVAUDAN-REG
3.9% Sika
3.4% GEBERIT AG-REG
3.1% Swiss Life Holding

UBS ETF (CH) SLI® (CHF) A-dis (as of last week)
8.82% Nestle SA
8.67% Roche Holding AG
8.27% Novartis AG
7.74% Zurich Insurance Group AG
5.07% Lonza Group AG
5.06% ABB Ltd
4.66% UBS Group AG
4.44% Givaudan SA
4.19% Sika AG
4.16% Cie Financiere Richemont SA
4.1% Alcon Inc
3.59% Credit Suisse Group
3.33% LafargeHolcim
3.27% Swiss Re
3.00% Partners Group
2.77% Geberit
2.18% SGS
1.86% Swisscom
1.73% Logitech
1.67% Sonova Holding
1.67% Swiss Life Holding

  • Top three constituents, accounting for 26% of the overall funds are basically identical, save for a percentage point or so.
  • The weights of the next two biggest components (Zurich Insurance and Lonza Group) are roughly swapped (though only for a 2-3 percentage points overall), accounting for another 12% overall.
  • Givaudan, Sika and Geberit are also weighted roughly similarly. So far, these 8 positions in aggregate make up approximately half (50%) of both funds - and they’re virtually identical.
  • UBAM Swiss Equity AC1 hast overweighted Partners Group and Swiss Life, compared to SLI. Though again, only by a 1.5 percentage points overall.

Comparing the two on swissfunddata.ch, the graph looks rather unsurprising:

While the UBP fund isn’t trying to explicitly replicate it, it’s certainly hugging the index. Also, if you are a Swiss citizen, you have spent (or are going to) a longer period of your work history in Switzerland and have a market value-weighted global portfolio, chances are that you are already significantly invested in these stocks, by way of your pension fund.

My personal opinion:
Deciding between two products that are more or less the same (and it’s not as if intangibles would affect my decision here, such as having a great affinity or much higher degree of trust in either UBP or UBS) or highly similar, I might just as well decide on the basis of price and costs.

I might be willing to pay much higher fees or incur costs for an offering that is radically or at least substantially different - in this case from a market-value weighted Swiss index. If that needs to be Swiss, it might possibly be investing in a SMIM fund.

8 Likes

You are absolutely right. Great analysis and thanks for the time you took to summarize it. Finally some great advice. thumbs up.

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