finpension Sustainable 40

Same 0.39% as finpension Global 40, nearly the same returns, plus a sustainability focus. So what's the catch?

finpension Sustainable 40 ranks #57 among 122 3a investment funds in our comparison, with results close to Global 40. It holds 40% stocks, 50% bonds, 9% real estate and 1% cash, mostly in Swisscanto's Responsible index funds. It fits cautious investors 5 to 15 years from withdrawal who want sustainability without paying extra for it.

Does Sustainable Cost More Here?

Not at finpension. You pay a flat 0.39% a year, all-in, exactly like Global 40. On CHF 50,000, that's CHF 195, versus CHF 385 at the 0.77% average of other 3a funds in our comparison. Many sustainable 3a funds at banks cost 1.2% to 1.6%, such as UBS Vitainvest Sustainable or the nachhaltig funds of Bank Cler and BKB. VIAC Global 40 is cheaper at 0.33%, or CHF 165.

Net of fees, Sustainable 40 is up 5.34% over one year, 21.65% over three and 4.33% over five. finpension Global 40 did 5.57%, 22.33% and 4.55%. The sustainable version trails slightly in every window, by less than one percentage point. The thin five-year figure reflects the bond sell-off when interest rates rose in 2022, which hit both.

What Actually Stands Out

The fund setup does real work. These are institutional Swisscanto index funds reserved for pension money, which reclaim a large part of the foreign withholding tax on dividends. There's no stamp duty on purchases and sales, and Swisscanto by Zürcher Kantonalbank is the custodian. None of it costs extra: there are no custody, transaction or FX fees on top of the 0.39%.

The equity part keeps the same Swiss home bias as Global: about 40% of the stocks are Swiss, or 16% of the whole portfolio. The rest is world ex-Switzerland (half of that slice CHF-hedged), small caps and emerging markets, all in Responsible versions. If you want more Swiss exposure, finpension's Switzerland strategies tilt to about 70% of the equity part.

What Most Reviews Miss

The sustainable label doesn't cover everything. Stocks, Corp. World bonds and Swiss franc bonds use Responsible funds, about 75% of the portfolio. The World ex CHF government bonds (10%), emerging market hard currency bonds (5%) and real estate funds (9%) are the same non-Responsible funds as in Global 40. If you need a fully sustainable portfolio, that roughly 24% matters.

The peer comparison is less flattering. frankly Moderate 45 Responsible holds 45% stocks and costs 0.48% all-in. It's up 24.35% over three years and 17.99% over five, against 21.65% and 4.33% here. A higher fee and a bit more equity, but a much stronger record over this period. Worth checking before you commit.

The Bottom Line

finpension Sustainable 40 delivers a sustainability focus at the same price and nearly the same returns as Global 40, which you don't often see in Swiss 3a. It isn't the cheapest 40% strategy, though, and frankly's Responsible peer has done better over five years. Our VIAC vs finpension vs frankly comparison covers the trade-offs. 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 fairly priced, cautious sustainable 3a. A good fit if you're set on finpension, but compare frankly's Responsible range first.