finpension Global 20

Negative over five years, and pricier than VIAC's version. Here's when finpension Global 20 still makes sense.

finpension Global 20 is one of 95 3a investment funds in our comparison and the most defensive of finpension's five Global strategies: 20% stocks, 70% bonds, 9% real estate and 1% cash. It targets people who want minimal market risk. We'll be blunt, though: at this risk level, the numbers aren't kind.

Are the Fees Worth It?

You pay a flat 0.39% a year, all-in. That's below the 0.59% average invested 3a fund in our comparison, but VIAC Global 20 costs just 0.17% in our data. On CHF 50,000, that's CHF 195 at finpension versus CHF 85 at VIAC, so you pay CHF 110 more every year for a similar low-risk mix.

On a defensive portfolio with low expected returns, fees eat a bigger share of what you earn. Net of fees, Global 20 is down 5.73% over five years, though up 12.87% over three years and 1.09% over the past year. When returns are this thin, a 0.22-point fee gap is a meaningful slice of them.

What Actually Stands Out

The genuine strength is the fund setup. finpension uses institutional Swisscanto index funds reserved for pension money, with no stamp duty on purchases or sales and no custody, transaction or FX fees on top. Swisscanto by Zürcher Kantonalbank acts as custodian. It's a clean, transparent structure with nothing hidden behind the 0.39% headline.

The better argument for Global 20 is as a building block. finpension lets you hold up to five 3a portfolios, each with its own strategy. As retirement gets close, you can move one portfolio into Global 20 while the others stay more aggressive, then withdraw them in different years. The Federal Social Insurance Office oversees the 3a rules that make this kind of staggering possible.

What Most Reviews Miss

Here's the uncomfortable part: with 70% in bonds, Global 20 still fell roughly 17% to 18% in calendar 2022, about as much as finpension's high-equity strategies. Bonds crashed as interest rates jumped, and the cushion simply wasn't there. That single year is why the five-year return is still in the red today.

If what you really want is capital that doesn't fluctuate, a 3a savings account does that job without market risk. And if you have more than 10 years to go, holding this little equity likely costs you growth. Global 20 fits a narrow window: the last few years before withdrawal, for money you've already decided to de-risk.

The Bottom Line

finpension Global 20 is honest and transparent, but it isn't the cheapest conservative 3a, and its five-year record is negative. It works best as the defensive slice of a multi-portfolio setup at finpension. Our guide to managing your 3a near retirement walks through de-risking step by step. If you open an account anyway, code RTEQJB gives a CHF 25 fee credit after you pay in CHF 1,000 within 12 months (enter it at sign-up or within 24 hours).

Verdict: A niche de-risking tool for finpension clients close to withdrawal. Standalone conservative savers can find cheaper options.