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 #66 among 67 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.