Jonathan Hinterwirth is Head Asset Allocation in the WM Investments Boutique at Vontobel, where he has lead the development and structuring of the new investment driven pension planning concept volt 3a. In this interview he reveals what makes Vontobel's app-based Pillar 3a solution so strong.
«Diversification and tax efficiency: two "free-lunches" in one solution.»
Why does it make sense to transfer your pension assets to volt 3a?volt 3a is our investment solution specifically designed for pension assets. We have 3 important elements working for you every day: An investment strategy geared to risk-adjusted performance, the advantages of tax efficiency in 3a solutions, and our funds, which are characterized by modern investment management. In this way, the focus clearly lies on increasing your pension assets.
Whom do you recommend volt 3a?Honestly? Anyone, who is serious about planning their pension with the pillar 3a. Even beyond the tax advantages. Our investment strategy is designed to generate equity-like returns with lower risk. To achieve this, we rely on our specially developed 3-alpha diversified equity funds in equity markets. These convince through a modern portfolio management, which we expect to generate additional performance in addition to the investment strategy. volt 3a clients thus benefit from three investment products that are usually used exclusively in our wealth management mandates.
How would you explain the investment strategy of volt 3a?Within volt 3a, we offer 5 different investment strategies - from rather low volatility to very equity-oriented. We recommend making the risk appetite dependent on your investment horizon, whereby the longer the investment horizon, the higher the equity exposure. Irrespective of this, however, each of these 5 investment strategies has been ideally coordinated to achieve two "free lunches" with the advantages of Pillar 3a investing: Diversification and tax efficiency.
What do you mean by "free lunch"?Even if the term may evoke more culinary associations for some: “Free Lunch" is a term used in financial markets to describe risk-free added value.
How is volt 3a managed?I always say: "Time in the market is better than timing the market" and I am a strong advocate of our "Stay Invested" concept. This says that long-term strategy and modern portfolio management are more goal-oriented than frequent trading. In this respect, there are no frequent adjustments in volt 3a, but we let our convictions work for our clients in the long term. Ultimately, it is also a matter of effectively managing the uncertainties we face as investors and thus minimizing bias.
What is the difference to other 3a pension solutions?Vontobel is not a universal bank. We concentrate on what we do well: investments. In this sense, we also differentiate ourselves from competing products. Every employee - from our research team to our receptionists - embodies investments. We also see ourselves as a family bank, which means that we also attach great importance to providing our clients with a family-like service. In addition, our performance as a wealth manager is very presentable, but we are not resting on our laurels.
Thank you for the interview.
The diversification of your pension assets in volt 3a is intended to spread the investment risk and thus reduce it.
For example, your assets are not invested in just one investment, but are spread across several asset classes that may have a negative or low correlation with each other. At the same time, however, all investments can show positive long-term returns regardless of this. Negative fluctuations in individual investments can thus be offset by others or have less impact.
With a good diversification strategy, the risk of loss can be minimized without sacrificing performance.
Tax efficiency for 3a solutions
The Pillar 3a not only offers obvious tax advantages, such as the saving of income tax on the annually paid-in pension amount. There are also various ways of optimizing the taxes payable when the benefits are paid out. These may involve, for example, opening several 3a accounts or staggering the payment of the retirement savings.
Our pension and investment experts support you with personal recommendations and the expertise of one of the largest managers of Swiss pension assets.
This way you can make the most from pillar 3a with volt 3a.