I would like to start a discussion about an optimal allocation using current available True Wealth 3a instruments. The following is my current allocation, with an overall / average TER of 0.13%. I am not using any currency hedged instruments, and increased the US exposure quite a bit (which is IMO very nice since they launched pension fund classes for it). What do you think about it? Any suggestions?
3 Likes
Do you have reasonable ground to overweigh the US market, except for past perfomance?
I tried to replicate more or less a MSCI world index (counties only), but now that you say it, you are right: I have slightly more weight on US (71% instead ~ 68%). Or are you referring to other weights?
Any other comments / suggestions regarding my allocation from above?
Ah, sorry, I see. No emerging markets. So maybe then the question arises: Why do leave out emerging markets? Too much political risk?
1 Like
In the above screenshot there is an EM ETF, though, and it’s missing Japan (and other countries that are completely missing at True Wealth). So this is neither a MSCI World nor a MSCI ACWI approximation.
I still don’t understand why True Wealth is making it so painful to approximate a global market cap equity allocation. A robo advisor should be simpler, not more complex, than investing on your own.
4 Likes
Yes, sorry, I’m confused. This allocation is a bit a mess.
Anyways, MSCI ACWI and FTSE All-World have around 63-65% USA. So, 71% seems to be an overweight to me.
That’s what putting me off as well. They should either go pure market cap, or offer different profiles, like weights by market cap, GDP, their own intransparent method, whatever.
Just thinking out loud… Is it possible to go all in on Equity US Blue - Pension Fund on TrueWealth? It would be cheaper than Finpension, since third pillar assets are completely free. Or am I missing something here?
1 Like
For some reason, True Wealth doesn’t use the “proper” pension funds classes. Compare the US Equity fund you mentioned to the one used by finpension:
- True Wealth: CSIF (CH) III Equity US Blue - Pension Fund QB
- finpension: CSIF (CH) III Equity US Blue - Pension Fund ZB
It’s a difference in TER of 0.1503%. Difference in YTD performance is 0.08%, which tracks TER difference.
I believe True Wealth saves money by not paying for access to the best share class, which makes their 0% fee offer possible.
5 Likes
Sure but there is nothing “improper” about the QB share class. In the end what matters are the total fees. 0% + 0.15% TER is still less than 0.39% + 0% TER.
4 Likes
That’s why I put it in quotes.
Nevertheless, it’s unusual. finpension, VIAC and frankly use the zero fee classes.
Just gave it a try - you can go up to 93% Equity US Blue - Pension Fund. Higher allocation seems to be not possible because diversification score goes below their requirement. Not sure though how this “requirement” is calculated… But anyway, the remaining 7% can be allocated to any other equities classes.
I have asked @True_Wealth exactly the same question, and they told me that the only difference is the TER: while finpension or VIAC charge a flat fee, you pay only the TER with Truewealth (and Truewealth does not pay CS directly instead). This makes it quite transparent for me, and in the end the thing which matters it the total fees. Paying 0.26% less fees (compared against VIAC and finpension) per year accumulates quite a bit over the years…
2 Likes
Received the following email from Truewealth today:
As you know, our Pillar 3a solution does not charge any asset management fees.
We are pleased to inform you that this will remain the case in 2025 and that no
management fees will be charged on your Pillar 3a assets.We have also improved our Pillar 3a solution in other ways: we are now using
index funds that are exempt from withholding tax in our Pillar 3a investment
universe. These funds are exempt from the already reduced withholding tax of 15
percent on dividends from US equities. And the withholding tax on global real
estate equities is also being further reduced.
This is pretty good news in my opinion, looks like their “freemium” model works out and they are even investing in improving their product.
6 Likes
Not so clear anymore since Trueawealth introduced pension funds.
Still the hassle of them not offering global market cap funds though
I am a bit confused with Truewealth. Didn’t they say that management fees is „temporarily „ waived
What is their current position. How much they charge for 3a ? Is it 0.15% ? Or this is just temporary?
IIRC, true wealth has no fee for pillar 3a, at least till 2025 or so. But the few CSIF funds they offer are of QB class (institutional?) and not ZB class (pension fund). QB class funds carry higher (non zero) TER than ZB class funds.
IF True Wealth charges ZeRO fee itself then it is probably cheapest solution for US+CH portion of portfolio.
EDIT: following replies from @Abs_max and @Compounding the information above may not be correct on the account of dividend tax refund differences between ZB and QB class funds. Also the currency conversion fee is an additional thing to take into account if the fund listing currency is not CHF
1 Like
But Pension funds have tax advantage for Dividends in US , Japan etc
QB funds don’t have that , right?
I think someone made some calculations above, but yeah, it’s a mess with TW, because it’s not really the same funds you’re comparing.
I think some guy mentioned it’s optimal to split between FP and TW, but I don’t remember the split
Yeah there are multiple costs and it’s always complicated to understand what is what 
- Management fees
- Fund TER
- WHT tax impact
- foreign exchange fees
There should be a regulation to declare ALL IN fees which includes all of these random things which reduce returns
2 Likes
100% agree. This constant lack of transparency puts me off. Sometimes it seems like providers invest more time in hiding fees than in getting more competitive 
3 Likes