Stamp Swiss National Bank, Zurich (Switzerland) A dividend not exceeding 6% of the share capital is paid from the net profit (art. “They get involved in important companies from the S&P which create real profits, and they do that with money which has been created out of nothing.” ($1 = 0.9793 Swiss francs) Additional reporting by Timothy McLaughlin; editing by David Around 20 percent of the SNB’s foreign currency reserves are now in equities, up from 17 percent last year and 10 percent in 2010. Governing board member Andrea Maechler also said this week that it does not invest in medium-sized and large banks to avoid possible conflicts of interest. The figure is larger than the 0.17 percent of the firm’s publicly-traded stock held by Zuckerberg. The SNB has also diversified across stock markets. “With the ultra-low interest rates environment currently there is a very high risk that the prices of bonds can fluctuate more than equities.” The bank started its share buying spree in 2005 after a change to Switzerland’s banking laws allowed it to buy assets other than short-dated bonds.

Investors pile into the franc in times of uncertainty, causing a rise in the currency which hurts Swiss exporters and increases the risk of imported deflation. Nannette Hechler-Fayd’herbe, head of investment strategy at Credit Suisse, said that the risks attached to the SNB’s investment portfolio were “absolutely manageable”. However, it did report a net profit of 21.3 billion francs in the first half of 2016 and its shareholders, including Switzerland’s cantons, have grown used to a hefty annual dividend payout. It is now the world’s eighth-biggest public investor, data from the Official Monetary and Financial Institutions Forum show. The rights of the shareholders are embodied in the National Bank Act (The share capital of the Swiss National Bank amounts to CHF 25 million. “The bond market is drying up and so they are going increasingly for equities.” Switzerland’s reputation as a safe haven has long caused problems for the SNB. “The SNB is in a bit of a corner, they have acquired a lot of foreign currency as part of their efforts to weaken the franc and they have to invest it somewhere,” said Alessandro Bee, an economist at UBS. It also shuns other stocks for ethical reasons, she told Sonntagsblick newspaper An in-house team manages the investments with help from some outside bankers it does not identify. Nevertheless this example illustrates how the Swiss National Bank has become a multi-billion-dollar equity investor due to its campaign to hold down the Swiss franc.

The result is that its pile of foreign currency reserves - which rose to the equivalent of 635.3 billion francs ($650 billion) at the end of June from 529.5 billion francs a year earlier and 226.7 billion francs in 2010 - is likely to keep growing.

This is especially the case in the euro zone where the ECB is buying up debt to stimulate the region’s economy, helping to push up prices and turning yields negative on many bonds. The Swiss National Bank is constituted as a special statute joint-stock company. 31 para. The share capital of the Swiss National Bank amounts to CHF 25 million. Chairman Thomas Jordan has made clear the SNB will stick to its course, which also includes negative interest rates. For example the SNB’s stake in Apple increased by 1.07 million shares in the second quarter, while Invesco sold 9.53 million shares and Fidelity sold 9.23 million in the iPhone maker, according to SEC filings. Swiss National Bank Info: Size ($ in 1000's) At 06/30/2020: $118,251,142 At 03/31/2020: …

Part of this is due to stocks increasing in value despite losses in recent months, as well as new purchases. While the upward pressure on the franc is unlikely to ease much, this is not the only reason why the stock holdings are likely to continue rising. The SNB has increased its stakes in all of its top 10 U.S. holdings this year, while many big institutional investors have been reducing much of theirs. 31 para. The United States is its favoured location, with its holdings on Wall Street jumping to nearly $62 billion at the end of June from $38.6 billion a year earlier, according to a Securities and Exchange Commission filing. The SNB does not comment on the details of its strategy, but says it does not pick stocks, investing instead in companies according to their weight in various indices. The risk for the SNB is that bond prices fall back sharply, should the ECB change its policy. However, it is far less known that not only is the Swiss National Bank also a publicly traded stock, but is also one of the best performing stocks in the world this year. “Then they go and call their broker and go on a tour of the U.S. stock exchange,” he told Finanz und Wirtschaft newspaper. “We’re convinced that given the difficult situation with an overvalued Swiss franc, a negative output gap, and negative inflation, the current approach is the right one - expansion in monetary policy with negative rates and willingness to intervene,” he said earlier this month. “They could even go up to 50 percent of their holdings.” The bank’s stock portfolio lost 200 million francs in value in the first half of 2016, although it collected 1.7 billion francs in dividends. “It makes sense for the SNB to do this, and I could imagine them to increase the amount of shares they hold in the future even further,” said Koch. * Swiss central bank’s equity holdings worth 127 bln francs ZURICH, Aug 30 (Reuters) - Switzerland’s central bank now owns more publicly-traded shares in Facebook than Mark Zuckerberg, part of a mushrooming stock portfolio that is likely to grow yet further. This includes $741 million in Facebook shares, giving the SNB a 0.28 percent stake, according to Thomson Reuters data. The central bank of Switzerland (known in English as Swiss National Bank) is actually a publicly traded institution, whose stock can be purchased even in the US (OTCPK:SWZNF).In Switzerland, the stock The tech giant’s founder and CEO has other ways to control his company: Zuckerberg holds most of his stake in a different class of stock. The shares are fully paid up (art. Diversifying its holdings was more important than any temporary setbacks in global equities, she added.

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