Why are you using the following fund: “CSIF (CH) III Equity World ex CH ESG Blue” and not the “pension version” CSIF (CH) III Equity World ex CH ESG Blue - Pension Fund ZB (CH0337393745) like for Valuepension? I’m not really happy about that because the dividends will be taxed. I thought wrongly that you would use the same fund as Valuepension.
Also, no sure to understand the transaction, the NAV of the fund is the following, but the asset price of the transaction was 1073.30 on the 2. november.
04.11.2020
1090.33
03.11.2020
1072.44
02.11.2020
1059.02
30.10.2020
1040.92
29.10.2020
1046.79
EDIT: I assume it’s the Subscription spread of 0.08 (1072.44*1.0008=1073.298)
The unit class “Pension Fund” also reclaims withholding taxes in Japan. Unfortunately, there are currently differing opinions as to whether 3a foundations are allowed to subscribe to this share class. Currently, CS does not allow 3a foundations to subscribe to this share class (valuepension as a 2nd pillar foundation, however, can subscribe to this class). We are currently in the process of clarifying the situation in more detail. Credit Suisse is now in the process of obtaining a legal opinion on the matter. We are making every effort and hope that we will soon be able to offer the Pension Fund class for this investment instrument as well.
The names of the share classes are somewhat misleading. For example, the share class for which the withholding tax is also optimised for Japan and Canada for the Equity World Index is called “Pension Fund Plus”. This class is currently not accessible to 3a foundations (due to the legal uncertainty regarding Japan). In the case of ESG, the situation is somewhat different and Japan is included in the “Pension Fund” share class. However, we look at these details very closely and try to find the best solutions for all possible optimisations on the investment side in the interests of our clients.
No doubt about that, I’m just trying to understand. The impact of no withholding tax on Japan and Canada dividends is low, however, this is not the case for the US.
Are you speaking about ESG? because Japan is not included in EM.
Based on what I have read on the “Fund Contract with Appendix” from CS. I have understood the following (I found no mention about Canada):
USA
Japan
Canada
Note
Index
Equity World ex CH Blue - Pension Fund
x
?
MSCI World ex Switzerland (NR)
Equity World ex CH Blue - Pension Fund Plus
x
x
?
Only for pillar 2
MSCI World ex Switzerland (TR)
Equity World ex CH ESG Blue - Pension Fund
x
x
?
Only for pillar 2
MSCI World ex Switzerland ESG Leaders (NR)
Equity World ex CH ESG Blue
?
MSCI World ex Switzerland ESG Leaders (NR)
x=no withholding tax
Is it correct?
In any case, I confirm that this point is hidden on the documents from CS and the share class names don’t help.
Yes, that is correct. The withholding tax in Canada is 25% on dividends. All 4 mentioned funds can reclaim 10% of the withholding tax and 15% is non-reclaimable. Therefore, only a portion can be reclaimed in Canada. It is important to note that the withholding tax situation may change over time.
Quick question here. I opened an account with finpension and i wanted to play with it to see the options. But I cannot find how I can customize the investment strategy to choose my own indexes. Will this option become available after I deposit some money there? I am planning to move the 2021 to finpension and when I need to rebalance to move portfolios from viac to finpension. I dont need the insurance they have, and I do not like the spread they have for currency exchange, as when I need to rebalance my portfolio…losing too much on this, but I dont mind the difference for the fees right now.
Their fee model is quite simple 0.39% all fee + VAT, so around 0.42%. Some funds like ESG or EM are adding few basis points between 0.02%-0.09% (same as VIAC). No FX fees.
Other fees
Early withdrawal for home ownership per case CHF 250
Pledge per case CHF 200
Withdrawal from the Retirement Savings Foundation within one year of joining CHF 150
Advice and processing fee for transfer of residence abroad CHF 250
So, it’s quite simple. The only thing they could simplify is to avoid adding few basis points for ESG/EM funds, but I think this is due to the Credit Suisse offer.
I’m still trying to figure what this is supposed to mean?
Is this charged for any change of residency going abroad (even if I don’t need any tailored “advice”)?
I might be temporarily out of the of country for a year or two - will I get hit with the fee?
Before you can customize your strategy, you must choose one of the suggested strategies. This serves as a starting point for customising your strategy afterwards. Under “Change strategy” you can then swipe to the far right until you see “customized” as the investment focus.
I don’t know. A copy of an ID is not a really secure verification anyway. A 3a account is mostly blocked money. I don’t know what would be the use case to use a fake name. Neon uses a video call and Swissquote is asking a physical verification through a post office. Maybe @finpension could clarify this point?
This fee has only to be paid for capital withdrawals with residence abroad. If you have been living abroad for several years but you are resident of Switzerland when you withdraw your capital, we will not charge any fees. We will adapt this point in the next amendment to the regulations.
I’m sharing @Neville’s concerns. My question would not as much be “Could someone steal my money by pretending to be me?” than "How can I make sure to be able to retrieve my money if my phone drops to the bottom of the ocean (let’s say during a cruise). How will @finpension identify me when the time comes to retire and get my money out of it (provided I’ve had to change my SIM card+Smartphone in the mean time).
Neither having researched their actual options nor ever having withdrawn from finpension:
By only paying out to a verified bank account (that you’ve made pay-ins from), or only upon your written request with your signature needing to be notarised.
Without knowing all the specific requirements for these types of accounts, you should keep in mind that these are restricted retirement accounts.
As such, I assume they can be considered low-risk type of accounts (if the incoming funds are coming from a bank your name) and are not reportable in the framework of CRS.
I am still having credit card and savings accounts in EU countries without face-to-face (or similar video-type) identification ever having been carried out, which were opened on the principle of having a reference (payment) account.
FINMA is responsible for banks (among other things). 3a are pension foundations, they are governed by regional authorities (e.g. BVS in Zurich). These regional authorities are then governed by Oberaufsichtskommission (OAK).
VSB etc. all force banks to identify you etc., but pension foundations are not banks.
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