Tellco Classic – Strategy 10 V

Just 10% in stocks. This fund is basically a glorified savings account with extra steps.

Tellco Classic Strategy 10 ranks #52 among 82 3a investment funds in Switzerland. With only 10% allocated to equities and 61% in bonds, it's one of the most conservative investment funds available. For ultra-cautious investors who still want a tiny slice of market exposure, this is about as safe as a 3a fund gets.

What Do the Numbers Say?

The three-year return of +8.10% is modest, and there's no five-year track record available yet. With just 10% in stocks, you're basically riding on bond performance, which has been rocky since interest rates rose in 2022. The one-year return of +1.90% barely keeps pace with inflation.

Here's the uncomfortable math: a standard 3a savings account currently pays 0.50-1.00% interest with zero risk. This fund's returns, after accounting for fees, may not consistently beat that. You're taking on some market risk for potentially marginal upside over a simple savings product.

What Actually Stands Out

Swing pricing provides a small layer of protection against transaction costs from other investors' trades. The fund is actively managed by Tellco, a pension specialist that's been managing retirement assets for decades. They know the regulatory landscape inside and out.

The CHF 14 million fund size is a red flag. Small funds have higher per-unit costs and are more susceptible to closure or merger if they don't attract enough assets. For a 3a fund where you might be invested for 20-30 years, that's a legitimate concern about long-term viability.

What Most Reviews Miss

At 10% equity allocation, you're barely participating in stock market growth. Over a 30-year horizon, the difference between 10% and 25% equity allocation can be enormous. Compounding even a small equity premium over three decades could mean tens of thousands of francs in missed gains, all for marginally less volatility.

Tellco is a niche provider without the brand recognition or branch network of major Swiss banks. If you ever need to consolidate your 3a or switch providers, the process may be less straightforward than with larger institutions. The lack of five-year performance data also makes it harder to judge consistency.

The Bottom Line

This fund exists for people who want to technically be "invested" while barely leaving the safety of bonds. If volatility genuinely keeps you up at night, it serves that purpose. But for most investors, either a pure savings account or a slightly more aggressive 25% equity fund would make more sense. Compare your options with our Pillar 3a comparison tool.

Verdict: Ultra-conservative to the point of being hard to justify over a good savings account, unless you specifically need minimal equity exposure in a fund wrapper.