Tellco Classic – Strategy 25 V

26% stocks and +12.53% over three years. Tellco's conservative fund treads water.

Tellco Classic Strategy 25 V ranks #53 among 90 3a investment funds in Switzerland. It's Tellco's most conservative investment option with 26% equities and 43% bonds. The three-year return of +12.53% is modest, and at CHF 18 million, it's another small Tellco fund. For conservative investors, the question is whether this delivers enough value over a simple savings account.

What Do the Numbers Say?

The three-year return of +12.53% translates to roughly +4% annualized. That's below frankly Gentle 25 Index (+19.00%) and VIAC Global 20 (+13.05% with even less equity). The one-year return of +2.09% barely exceeds current 3a savings account rates. Without a published TER, it's hard to pinpoint the cost drag, but the underperformance pattern is consistent.

No five-year data is available, limiting the evaluation window. For a conservative fund, the returns should at least be competitive with the cheapest alternatives at similar risk levels. Right now, they're not.

What Actually Stands Out

Like its more aggressive siblings, this fund benefits from Tellco's pension infrastructure and swing pricing protection. The active management approach gives flexibility to adjust bond duration and equity exposure within the conservative mandate. In theory, this should help navigate interest rate changes.

The CHF 18 million fund is slightly larger than Tellco's other options. Tellco has institutional credibility in the Swiss pension space, managing occupational pension assets for thousands of companies. The 43% bond allocation provides a significant income component, and the 26% equity exposure adds modest growth potential.

What Most Reviews Miss

At 26% equities and 43% bonds, this fund's return profile is uncomfortably close to a 3a savings account. The best savings accounts currently offer 1.0-1.5% guaranteed interest with zero volatility. This fund returned +2.09% over the past year but with the added risk of bond and equity market fluctuations. The risk-adjusted case is weak.

The small fund size (CHF 18 million) adds another concern. Conservative 3a investors tend to be the most stability-conscious. Investing in a small fund from a mid-tier provider contradicts that preference. Larger funds from established institutions offer the same conservative exposure with far greater stability and lower closure risk.

The Bottom Line

Tellco Classic Strategy 25 is a conservative fund that doesn't clearly outperform simpler alternatives. The returns are modest, the fund is small, and established competitors offer better performance at similar or lower risk. For conservative 3a investors, a top savings account or a cheaper index fund may be a better fit. Explore all options with our guide to best Pillar 3a products in Switzerland.

Verdict: A functional conservative option for Tellco clients, but most investors will find better value in top savings accounts or low-cost index funds.