Swisscanto BVG 3 Responsible Portfolio 25 RT

ZKB's 25% equity fund manages CHF 389 million. Conservative, responsible, and thoroughly middling.

Swisscanto BVG 3 Responsible Portfolio 25 ranks #67 among 82 3a investment funds in Switzerland. The step-up sibling of the Portfolio 15, this fund puts 26% in stocks and 59% in bonds with ESG screening. The five-year return of +9.36% is a meaningful improvement over the 15% version, showing what a small increase in equity allocation delivers.

How Does the Return Stack Up?

The five-year return of +9.36% is roughly three times better than the Portfolio 15 version (+3.19%), which highlights how much even a modest equity increase matters. The three-year return of +15.31% shows the recovery path has been solid. Still, other 25% equity funds like LUKB Expert-Vorsorge 25 returned +13.63% at a much lower TER of 0.52%.

The one-year return of +2.19% is modest but positive. For a conservative fund that went through the 2022 bond market shock, the fact that it's back in positive five-year territory is worth noting. But it could have been better at a lower cost.

What Actually Stands Out

CHF 389 million in assets makes this one of the larger conservative 3a funds. Swisscanto's Responsible framework applies positive ESG selection alongside exclusions, which is more nuanced than simple negative screening. Swisscanto has been a pioneer in sustainable investing in Switzerland.

Swing pricing is included, and ZKB's institutional backing provides the strongest cantonal bank guarantee in Switzerland. The Canton of Zurich's state guarantee stands behind ZKB, which in turn stands behind Swisscanto's fund range. For conservative investors, this chain of institutional security is genuinely reassuring.

What Most Reviews Miss

Swisscanto doesn't publish a standard TER for this fund in the same way as competitors, making direct cost comparison difficult. The total fee is embedded in the fund structure and absorbed by the Responsible framework. Transparency on cost is worse than competitors who clearly state their TER.

The 59% bond allocation still creates meaningful interest rate sensitivity. If rates rise again, this fund will take another hit on the bond side. Conservative doesn't mean immune to losses, as 2022 demonstrated painfully. The slight equity increase over the Portfolio 15 barely compensates for the additional complexity and risk.

The Bottom Line

Swisscanto BVG 3 Responsible Portfolio 25 is a solid, if uninspiring, conservative option from Switzerland's strongest cantonal bank. The ESG credentials are genuine, and the fund size provides stability. But cheaper conservative funds exist with better returns. Find your best fit with our Pillar 3a comparison tool.

Verdict: A dependable conservative ESG fund with ZKB's institutional backing, but not the most cost-effective option for conservative 3a investors.