Our Take on BLKB Next Generation Fund Vorsorge Yield VT
"Next Generation" in the name, last-generation performance in the numbers. +1.34% over five years.
BLKB Next Generation Fund Vorsorge Yield ranks #81 among 82 3a investment funds in Switzerland. Managed by Basellandschaftliche Kantonalbank, this fund puts 24% in stocks and 49% in bonds with a 1.26% TER. The five-year return of +1.34% is near the very bottom of all 3a funds, making the "Next Generation" branding feel more aspirational than accurate.
What Are You Actually Paying For?
The 1.26% TER is among the highest in the conservative fund category. Over five years, fees consumed approximately 6.30% of assets (1.26% x 5 years). The fund returned +1.34% net. That means the gross return was roughly +7.64%, of which you kept only 1.34%. The manager took over 80% of the gains in fees.
A savings account at 0.50% interest over five years would have returned about +2.53% with zero risk. This fund took investment risk, charged premium fees, and delivered less than half of what a savings account earned. That's a deeply concerning value proposition.
What Actually Stands Out
Swing pricing is included, and BLKB is a well-established cantonal bank with a state guarantee from the Canton of Basel-Landschaft. The "Next Generation" label suggests a focus on future-oriented themes like sustainability, technology, or demographic trends, though the actual implementation appears to be a standard conservative allocation.
The CHF 60 million fund size is adequate for a cantonal bank product. BLKB serves the suburban and rural areas around Basel, providing local branch access for investors who value face-to-face service. The cantonal bank guarantee adds institutional security.
What Most Reviews Miss
The three-year return of +5.15% shows some recent improvement, but the five-year +1.34% reveals the extent of damage from the 2022 bond crash on this bond-heavy portfolio. The "Next Generation" theme hasn't translated into innovative asset allocation or superior security selection.
At 24% stocks and 49% bonds, the remaining 27% is presumably in alternatives, real estate, or cash. This isn't a clean allocation that's easy to benchmark. The complexity makes it harder to assess whether the active management is adding or subtracting value, which is convenient for the manager but frustrating for the investor.
The Bottom Line
BLKB Next Generation Fund Vorsorge Yield is a cautionary example of what happens when high fees meet conservative allocation in a challenging market. The +1.34% five-year return is unacceptable by any standard. BLKB customers deserve better options. Start your search at our guide to the best Pillar 3a products in Switzerland.
Verdict: Near the bottom of all 3a funds by performance, with fees that consumed most of the gains. The "Next Generation" name promises innovation that the returns don't deliver.
Pros
- No custody fee
- Swing pricing protection
Cons
- Higher total costs (1.26% p.a.)
- Active management = higher fees
- Below-average 3-year performance
- Smaller fund size
Product Details
At a Glance
- 24% stocks allocation
- TER: 1.26%
- Swing pricing protection
- Actively managed
- No custody fee
Fund Details & Allocation
Fund Details & Allocation
Asset Allocation
Stocks
24%
Bonds
49%
Real Estate
15%
Other
7%
Investment Strategy
Actively-managed fund
Fund Size
CHF 60M
Depositary Bank
Zürcher Kantonalbank (ZKB)
Swing Pricing
Yes
Fees & Costs
Fees & Costs
TER
1.26%
Custody Fee
Free
Performance Over Time
Historical performance of this investment fund. Past performance is not indicative of future results.
1 Year
+2.6%
3 Years
+5.2%
5 Years
+1.3%
Retirement Projection
Based on max. contribution of CHF 7'258/year, age 30 to 65 (35 years), starting from CHF 0.
Compare to Similar Products
Frequently Asked Questions
- Why is the TER 1.26%?
- 1.26% is nearly double the 0.68% segment average and reflects active management plus the fund-of-funds structure. On a CHF 50,000 balance that's roughly CHF 630 in annual costs, before swing-pricing adjustments. Comparable BLKB passive options run between 0.34% and 0.72%.
- What does the +1.34% five-year return mean in practice?
- A +1.34% cumulative return over five years is well below the +23.5% segment average, weighed down by the 49% bond and 15% real estate mix during the 2022 rate-hike drawdown. Past performance is not a guarantee, but the gap is wide enough that the 1.26% fee load has been working against returns.
- What does swing pricing change for me?
- Swing pricing adjusts the fund's NAV slightly up or down on days with large net inflows or outflows, so existing investors don't bear the trading costs of those flows. For 3a savers contributing monthly, the impact is usually small but real, and may add a few basis points of friction.
- Why is the depositary bank ZKB and not BLKB?
- BLKB issues the fund but appoints Zürcher Kantonalbank as the depositary, responsible for safekeeping the assets and verifying the NAV. This is standard Swiss fund-structure practice and means assets are held separately from BLKB's own balance sheet.
- Is CHF 60M a problematic fund size?
- At CHF 59.92M, the fund is below the CHF 100M mark commonly used to flag small funds. Small funds can be closed or merged if assets don't grow, and operating costs are spread over fewer investors, which keeps the 1.26% TER elevated.
How We Rated This Product
BLKB Next Generation Fund Vorsorge Yield VT was evaluated as a product using our weighted scoring system.
Ratings are updated monthly based on the latest available data. All products are evaluated using the same methodology.
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