Frankly Moderate 45 Index ranks #35 among 122 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 (+28.36% vs +24.35%). With CHF 602 million in assets, investors are catching on.
How Does the Return Stack Up?
Three-year return: +28.36%. Five-year return: +15.79%. The three-year figure beats the active Responsible version by about four percentage points. Total cost is identical at 0.48%. So you're getting better recent performance for the same price, without the ESG overlay. Over five years, though, the Responsible version is ahead (+17.99%).
The five-year return of +15.79% 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 (+15.79%) trailing the three-year return (+28.36%) 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. Over one and three years, the index wins on returns; over five years, the Responsible version is slightly ahead.
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 recently stronger-performing alternative to frankly's active Moderate fund, ideal for passive investors who prioritize returns over ESG criteria.
