TER of a strategy is just a summary parameter, the weighted average of TER for instruments. Of course if you have 50% allocation to RE fund with TER 1%, your strategy TER will be around 0.4%. I see it as a purely marketing thing. The individual instruments are what I am looking at.
Don’t know about the default portfolio, but the fund on Swiss stocks is one of few (4) instruments that make sense to me. Also most tax efficient for this category.