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Tag Archives: equities

Gold, Bonds and Negative Interest Rates Give SNB a Q1 profit

The Swiss National Bank has achieved a profit of 5.7 billion CHF in Q1/2016. The total yield on assets per annum was 3.4%.The main contribution comes from gold with price change of 10% in this quarter. If this performance continued, it would give a 48% yield for this year.The total yield on debt was positive with +0.2% thanks to negative interest rates.The deflationary environment let to rising bond prices. Bonds, make up 74% of the SNB portfolio. Here the details of our calculation:...

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Swiss National Bank: Composition of Reserves and Investment Strategy

The Q1/2016 update on the SNB investment strategy and its assets. The Swiss National Bank is a passive conservative investor. As opposed to other investors, the exposure in currencies is as important as the strategic asset allocation according asset classes (bonds, equities, cash, real estate).  The importance of currencies is one reason why the SNB is often called a hedge fund, the second the volatility of gains and losses.The SNB balance sheet looks as follows: In this post we will...

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Swiss National Bank: Composition of Reserves (Assets) and Investment Strategy

The Q1/2016 update on the SNB investment strategy and its assets. The Swiss National Bank is a passive conservative investor. As opposed to other investors, the exposure in currencies is as important as the strategic asset allocation according asset classes (bonds, equities, cash, real estate).  The importance of currencies is one reason why the SNB is often called a hedge fund, the second the volatility of gains and...

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The Broader View: The Positive Effects of Negative Nominal Interest Rates

By Jose Viñals, Simon Gray, and Kelly Eckhold Version in Deutsch (German) We support the introduction of negative policy rates by some central banks given the significant risks we see to the outlook for growth and inflation. Such bold policy action is unprecedented, and its effects over time will vary among countries. There have been negative real rates in a number of countries over time; it is negative nominal rates that are new. Our analysis takes a broad view of recent events to examine...

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Swiss National Bank: Composition of Reserves and Investment Strategy

We regularly publish the SNB asset structure by currency, rating & duration and the investment strategy. They shall be a template for the tactical asset allocation along these dimensions for other conservative asset managers – CHF holdings certainly excluded because the SNB nearly exclusively buys foreign assets. The SNB balance sheet looks as follows: In this post we will concentrate on the assets side, investment strategy and composition of “FX reserves”.See more on liabilities...

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