How the Swiss central bank built a $167B tech-led US stocks portfolio
16 hours ago
- #Currency Management
- #Tech Investments
- #Swiss National Bank
- The Swiss National Bank (SNB) has built a $167 billion US stock portfolio, heavily invested in tech giants like Amazon, Apple, Meta, Microsoft, and Nvidia.
- SNB's equity holdings make it one of the world's largest tech investors, with stakes in Apple and Nvidia worth $10 billion and $11 billion respectively.
- Unlike sovereign wealth funds, SNB's investments are primarily a tool to manage the Swiss franc's strength and avoid deflationary risks.
- SNB's strategy involves buying foreign currencies and investing in overseas assets, leading to significant exposure to US tech stocks.
- The bank avoids investments in systemically important banks and companies involved in internationally condemned weapons.
- SNB's investment approach has faced criticism and periodic losses, but there are no plans to change the current system.
- The bank's flexibility in monetary policy, such as quickly adjusting currency reserves during crises, is seen as a key advantage.