Hi assemplyrequired, thanks for your follow-up. Of course there is no simple answer like “x% of US exposure is scientifically proven to be appropriate”.
Our suggested investment mix depends on the answers each client provides in the risk assessment questionnaire. Try it out or see our sample portfolio on our website. However, for an investor (Pillar 3a and/or Discretionary Asset Management) whose future financial needs and expenses are expected to be primarily in Swiss francs, some optimization is appropriate. This is built into our sample portfolio strategies. But again, it’s easy to make individual changes using the sliders should the client wish to do so.
I think I have discovered something interesting this weekend: while supporting a friend with setting up 3a at True Wealth, I have noticed that they new seem to offer pension index funds finally:
Hi locenad. Well spotted! Yes, we’ve completed the first step and rolled out the new instrument universe to new clients. We’re in the process of finalizing the user flow within our application to make the transition seamless for existing customers, and will be emailing everyone in the next few weeks.In the meantime, it’s also possible to use the new instrument universe for existing clients. By clicking on “Reassess Risk Tolerance” and then resetting the portfolio to the “True Wealth Optimized Mix”, the new instrument universe will be imposed, including the on/off toggle for (partial) FX hedging. Lastly, any customizations to the investment mix will need to be redone if desired.
Thanks @True_Wealth, this is IMO pretty awesome news. Will give it a try in the evening.
This change is quite a game changer in the 3a area and helps me recommending True Wealth 3a even better. So far, I always had to say: “it is nice, but you need to be aware that some funds are not optimal”. With this change, I think it is clearly the lowest priced 3a I am aware of (comparing against finpension and viac). Great work!
Thanks, Compounding. TER actually went down with our new, optimized instrument universe (which includes partial Fx hedging). About 0.13% for an equity heavy portfolio (and 0.21% for SRI). Our sample portfolio including TER is fully public, see here:
I have not digged though all instruments yet, but at least the following pension funds are listed on their website, but not included in my portfolios. I think all funds with the new “pension fund” are new:
CSIF (CH) III Equity US Blue - Pension Fund QB CH0185708234 (TER 0.1534%)
CSIF (CH) III Equity US ESG Blue - Pension Fund QB CH0397628733 (TER 0.1592%)
CSIF (CH) III Real Estate World ex CH - Pension Fund QBH CH0217837449 (TER 0.2127%)
CSIF (CH) III Real Estate World ex CH - Pension Fund QB CH0217837423 (TER 0.1823%)
Quite sure I have missed some of the new instrument, @True_Wealth please complete if so.
In my understanding, viac and finpensions are using the same funds without TER, while True Wealth uses these funds with TER (which makes sense IMO since they do not charage any flat fee). This is still great news in my understanding
If you compare against finpension, most of their funds are also not “pension funds” - for these instruments, nothing changes at True Wealth. The downside of True Wealth so far was that they were not using pension funds for some classes, which caused missed withholding taxes in some cases.
Just checked it in my account, and it looks pretty like they are refunding withholding taxes: even for accumulating funds, there are dividend payments visible:
The funds on TW are of a different class (example: MSCI USA on TW and on finpension, TER of 0.15% vs 0.00%)
The equity weights of each region (US, Europe etc.) are not set according to a widely-used metric (e.g. market cap or GDP) but set by TW according to an undisclosed metric (they claim it is based on each client’s answers in the risk assessment questionnaire). That is not in line with principles of passive investing IMO.
Agree on point 1 and 3: @True_Wealth Still think patronizing investors is the right approach these days? Why not offer both, like your competitors: standard portfolios and individual portfolios
On point 2: Well, 0.15% is still less than Finpension/Viacs 0.39%, no ?
It looks fairly promising. What still bugs me a bit is the bad product they use for Europe (EuroStoxx 50) but to be fair - that is a relatively small drag. At the moment, they are probably en-par with VIAC/Finpension and if they finally introduce a “normal” ETF / Index Fond for Europe - they will be great.
Sure. But (apart from leaving money on the table for no reason) still weird, no? Raises all kinds of questions. Is 3a even important to them? Do they know what they’re doing?
That’s not correct. You can double click on ‘Equities’ in the investment mix (top part of the page) or click on ‘Equities’ once and then on ‘Drilldown’ to change the allocations within equities.
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