Descartes Minimum Risk 20

20% equity, 80% cash, OLZ factor methodology, 0.64% all-in. Niche by design.

Descartes Minimum Risk 20 ranks #66 among 82 3a investment funds in Switzerland. It's an actively-managed 20% equity strategy on OLZ Optimized ESG factor funds with an 80% Swisscanto money market sleeve, held in a personal securities account at Lienhardt & Partner Privatbank Zürich. A very defensive allocation, structurally similar to a high-cash savings account with a small equity glide-path on top.

0.64% for a 20% Equity Defensive Bucket: Sensible or Slow?

All-in cost is 0.64% (0.44% weighted TER plus 0.20% flat fee). On CHF 50,000 that's CHF 320 per year. The 80% money market sleeve currently yields a modest rate after fees, so the strategy fee eats a meaningful chunk of net return on this defensive allocation.

Do the math: 80% in cash-equivalent paper charged 0.64% leaves limited room for the strategy to net-earn anything in a low-rate cycle. The 20% equity sleeve does the entire heavy lifting on returns. If you're parking 3a money for short-term withdrawal, a cantonal 3a savings account at competitive rates may net more on the same balance.

What Actually Stands Out

OLZ factor-based equity selection is the differentiator, even on a 20% equity sleeve. The methodology tilts toward lower-volatility names with low correlation to each other, targeting reduced portfolio variance. On a small equity allocation that matters less, but the methodology is genuinely different from a standard index fund.

Custody runs at Lienhardt & Partner Privatbank Zürich in your own personal securities account. The structure is unusual at this defensive end: most 3a savings-account products sit at cantonal banks rather than private banks. Whether the private-bank custody is worth the cost premium depends on how you weight that structural feature.

What Most Reviews Miss

A 3a savings account often wins on net yield at this allocation. If 80% of your money is in cash-equivalent and you're paying 0.64% on the entire portfolio, a cantonal 3a savings account at a competitive rate on 100% of your balance frequently nets more. The Descartes structure makes sense mainly if you specifically want the 20% equity glide-path inside a 3a fund wrapper.

The 5-year return of -3.50% is the standout number here, and it deserves an honest look. A 20% equity allocation in a money-market-defensive structure during a period that included a sharp rate spike and the OLZ underperformance window produces this kind of result. The 10-year +1.30% confirms the long-run return potential is modest for this structure.

The Bottom Line

Descartes Minimum Risk 20 is hard to justify standalone. The defensive structure works best as the cash-glide leg of a multi-strategy Descartes setup or for investors who specifically want a small equity sleeve inside a private-bank depot near withdrawal. Compare to 3a savings accounts in our guide to the best 3a investment funds in Switzerland.

Verdict: A specialized defensive 3a that mostly makes sense for existing Descartes clients consolidating their setup near retirement.