Our Take on frankly Moderate 45 Index
Same moderate allocation, same fees, but the index version quietly outperforms.
Frankly Moderate 45 Index ranks #18 among 82 3a investment funds in Switzerland. It's the passive version of frankly's most popular fund, and here's the thing: it outperforms the active Responsible version over three years (+24.96% vs +24.15%). With CHF 602 million in assets, investors are catching on.
How Does the Return Stack Up?
Three-year return: +24.96%. Five-year return: +21.93%. The three-year figure beats the active Responsible version by nearly a full percentage point. Total cost is identical at 0.44%. So you're getting better recent performance for the same price, without the ESG overlay.
The five-year return of +21.93% looks lower than the three-year figure, which seems counterintuitive. This reflects the 2022 bond crisis hitting balanced funds hard. Both stocks and bonds fell, and the 43% bond allocation amplified the damage rather than cushioning it.
What Actually Stands Out
43% bonds in this index version versus 40% in the Responsible version. That's a slightly more conservative tilt, which some investors will prefer. The passive approach from Swisscanto means lower turnover and fewer hidden transaction costs versus the active version.
CHF 602 million in assets is the second-largest in the frankly lineup, trailing only the Responsible version. The fund's size provides excellent liquidity and stability. Index tracking means you always know what you own: broad market indices without active bets on individual stocks or sectors.
What Most Reviews Miss
The five-year return (+21.93%) trailing the three-year return (+24.96%) is a red flag for timing. If you invested five years ago, you've earned less annualized than someone who invested three years ago. This isn't a fund-specific problem; all balanced funds suffered this pattern. But it shows that moderate allocations aren't immune to extended rough patches.
Without ESG screening, this fund holds whatever the index holds. If you're choosing between this and the Responsible version, the decision comes down to whether ESG alignment or raw performance matters more. Currently, the index wins on returns.
The Bottom Line
For investors who want a moderate, passive, low-cost 3a fund, this is the straightforward choice. No ESG premium, no active management drag, just broad index exposure at a balanced allocation. Compare it against similar options in our Pillar 3a comparison tool.
Verdict: The better-performing alternative to frankly's active Moderate fund, ideal for passive investors who prioritize returns over ESG criteria.
Pros
- Low total costs (0.48% p.a.)
- Good 3-year performance (+25.0%)
- No custody fee
- Large fund size (stable)
Cons
- High flat fee (0.44%)
- No swing pricing protection
- Issuing fee of 0.21%
- Sales/redemption fee of 0.06%
Product Details
At a Glance
- 45% stocks allocation
- TER: 0.04%
- Passive/Index strategy
- No custody fee
Fund Details & Allocation
Fund Details & Allocation
Asset Allocation
Stocks
45%
Bonds
43%
Real Estate
5%
Other
7%
Investment Strategy
Passively-managed fund
Fund Size
CHF 602M
Depositary Bank
Zürcher Kantonalbank (ZKB)
Swing Pricing
No
Fees & Costs
Fees & Costs
Synthetic TER
0.04%
Flat Fee
0.44%
Custody Fee
Free
Issuing Fee
0.21%
Performance Over Time
Historical performance of this investment fund. Past performance is not indicative of future results.
1 Year
+5.4%
3 Years
+25.0%
5 Years
+21.9%
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 there a 0.21% issuing fee on this version?
- The Index variant charges 0.21% to issue fund units and 0.06% to sell them, while most frankly Responsible variants run at 0%. Every monthly contribution at the CHF 7,258 limit costs roughly CHF 19 in issuing friction before the 0.44% platform fee starts to run.
- Is 45/43 a classic balanced allocation for a 3a horizon?
- With 45% stock, 43% bond, and 5% real estate, this is a classic balanced fund. It suits savers roughly 10 to 20 years from retirement who want equity-driven growth balanced with bond stability. Five-year cumulative return of +21.93% is in line with the broader segment average of +23.5%.
- How does fund size of CHF 600M compare to the Responsible sibling?
- At CHF 601.62M, the Index version is comfortably mid-sized. Its actively-managed Responsible sibling holds CHF 737.63M, suggesting investor demand for the ESG variant is slightly higher. Both are well above the CHF 100M small-fund threshold.
How We Rated This Product
frankly Moderate 45 Index 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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Open the frankly Moderate 45 Index today and start enjoying its benefits.