Truewealth 3a Pillar

I have been with True Wealth 3a since the beginning of December last year and would like to share my experience so far. Feel free to comment / challenge my approach.

I have transferred all of my 3a money from Viac. I was looking for an alternative to Viac because of the FX issue I have discovered with them, and nobody could explain (1) why they do it that way (trading most of the funds in non-CHF even when they were available in CHF, and charging an FX fee of 0.5%).

The transfer process went very smoothly: in the True Wealth app I was able to order the transfer form, which I had to sign and send to Viac (the address was already filled in). After probably a week, all the money from Viac arrived at True Wealth and was reinvested the same day.

Before investing, they suggest an investment strategy. In my case (high risk level) it included real estate as well as equities. I decided to create my own strategy, which is quite similar to the Viac Global 100 strategy (2). Adjusting the strategy is really well implemented in the True Wealth app - it gives you a lot of adjustment options and is very easy to use. Take a look at the attached screenshot to see what my customized strategy looks like (allocation & instruments). The overall TER for this strategy is 0.12%.

There are two things to note about this strategy:

  1. True Wealth is not using pension fund optimized index funds for the US and Japan classes yet. This means that my strategy misses out on about 0.11% tax per year (calculated based on the discussions above in this thread). According to the True Wealth FAQ, they are aware of this and plan to optimize this.
  2. Some funds are CHF hedged. This is not necessary in my opinion as it adds a bit to the cost. But the average TER of 0.12% in my strategy already takes this into account and is still acceptable to me.

Overall, I am happy with my decision so far. My 3a investment should hopefully perform better than Viac because of the lower overall annual costs. According to my calculations, it is also quite a bit cheaper than Finpension and Frankly (True Wealth 0.23% (TER + lost taxes for US & Japan), Finpension 0.39%, Viac 0.44%, Frankly 0.45%). I am really happy to see new competition in the 3a area. Let’s hope the other players start to lower their fees too. And let’s also hope that True Wealth fixes the two minor issues mentioned above.

Do you agree with my conclusions? Or have I missed something?