The global stock bull market has many success storys, one of the biggest is the Swiss National Bank (SNB) which has been stealthly investing internationally with it’s foreign currency holdings. A fifth of the foreign currencies are invested in equities throughout Europe, the US and emerging economies. .
The Swiss National Bank (SNB) has been stealthly investing internationally with it’s foreign currency holdings at the end of September worth SFr760bn. A fifth of the foreign currencies are invested in equities throughout Europe, the US and emerging economies. $88 billion in U.S. stocks alone.
The SNB total holdings of US stocks are now at an all time high $162,134,960 in U.S. stocks alone at the end of June, up from $149,974,870 billion at the end of March
For all intents and purposes it is a sovereign wealth fund like Norway’s $1000bn oil fund,, though the SNB says it is not.
Its investment in US equities is massive for example its top four investments in America include just over $9.0 billion in Apple followed by around $8.0 billion in Microsoft and $6.0 billion in both Amazon and Alphabet. Next is $3.0 billion in Facebook and investments in Tesla and NVidia are all worth over $2 billion.
SNB Top 20 Stock Markets US Investments at June 30 2021
SNB Biggest Additions in June 30 2021 Quarter
SNB Biggest Exits in June 30 2021 Quarter
Top 10 US Holdings Change from 2017 to 2021
SNB Top Ten Equity Holdings at Q3 2017 v Q2 2021
- Alphabet Class A & C
- Johnson & Johnson
- Exxon Mobil
- AT & T
- Proctor & Gamble
- New Entries Tesla, NVidia, Visa, United Health
- Exits AT & T, Proctor & Gamble, Exxon Mobil, Pfizer
- Alphabet Class A & C
- Johnson & Johnson
- United Health
What Holding Does The SNB Have in U.S. Companies?
The SEC requires the disclosure of holding via filing a Form 13F. Below is the SNB’s form. Read through and see how you compare with your investments.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 13F Swiss National Bank OMB 3235-006
Details are not revealed other than in the US where Securities and Exchange Commission rules require the SNB to disclose its holdings. There is the obvious question now as we see the BOJ owning over 60% of Japanese ETF’s (some say over 80%). How manipulated are the world’s equity markets and should citizens of these countries be exposed to such risk?
Interim results of the Swiss National Bank as at 30 June 2021
The Swiss National Bank reports a profit of CHF 43.5 billion for the first half of 2021. The profit on foreign currency positions amounted to CHF 44.5 billion. A valuation loss of CHF 1.4 billion was recorded on gold holdings. The profit on Swiss franc positions amounted to CHF 0.6 billion. The SNB’s financial result depends largely on developments in the gold, foreign exchange and capital markets. Strong fluctuations are therefore to be expected, and only provisional conclusions are possible as regards the annual result
The relentless march upwards of U.S. stocks, in particular the high risk Nasdaq has befuddled seasoned investors. Not hard to see how with central banks, printing money (that is out of no where) and using said monies to buy stocks in bulk.
SNB Assets at June 30 2021
We Aint No Sovereign Wealth Fund
Andréa Maechler, governing board member, told the Financial Times back in June 2016 “We consider ourselves first and foremost a central bank,”. “Our balance sheet expansion is the direct reflection of our monetary policy actions. That is the key point which differentiates us from a sovereign wealth fund.” If that risk would require us to take a position against the Swiss franc, which would go exactly against our monetary policy”. “How do we deal with that?
“The key risk management tool we have is diversification so that if anything happens in one currency, in one instrument, you have counter pressures through a well-balanced and well-diversified portfolio.” Ms Maechler added .“the general concept we have is that we take our role as a large investor seriously, we exercise our shareholder rights as long as they don’t draw us into political debates.” “In grey areas, we just abstain,” “We don’t want to be part of political discussions. We try to go as far as possible without creating a risk from a monetary policy perspective.”
The Financial Times in a piece on the SNB said the need for diversification, as well as a desire to boost overall performance, explains why the central bank has pushed increasingly into equities, a move made possible by a change in Swiss law in 2004. In its annual report for 2015, the SNB revealed it held shares of about 1,500 mid and large-sized companies and roughly 4,400 smaller companies in advanced economies, and about 800 emerging economy companies.
Appendix 1 Publications and other resources 2 SNB balance sheet 3 Addresses 52 The Swiss National Bank in Brief.
- UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 13F Swiss National Bank OMB 3235-006
- Interim results of the Swiss National Bank as at 30 September 2017
- Holdings Channel
From The TradersCommunity Research Desk