There is a new “technological giant” in the US. The surprise is that it is not from the US, but from Switzerland

ANDThe Swiss National Bank (SNB), a traditionally conservative institution, has ceased to be. In fact, it has silenced one of the most important technological investors in the world. The firm has accumulated a portfolio of actions of such magnitude that its value is equivalent to almost a fifth of the annual economic production of Switzerland.

What happened. According to records From the US stock and values ​​commission (SEC) of the month of June, the SNB has 167,000 million dollars in shares of US companies, distributed in more than 2,300 positions. That makes the entity a first -order investor in Silicon Valley.

Love for Big Five. More than 42,000 million of that portfolio are invested in just five technological giants: Amazon, Apple, Meta, Microsoft and Nvidia. SNB has A special focus on Applecompany in which it has invested almost 10,000 million dollars, and in Nvidia, where it has invested more than 11,000 million dollars.

A gigantic entity. The Swiss National Bank is not a sovereign fund as such: its main mission is not active investment to make the country’s money grow. However, its asset balance, which amounts to 855,000 million dollars, places it in a league comparable to that of large investment vehicles from countries such as Singapore or Qatar. Experts, yes, They point that SNB is an entity that does not seek to influence these companies, and only uses its portfolio as a management tool for its currency.

Banks do not do this. The SNB approach – which is not owned by the national government – is really atypical. The Bank of Japan For example, it makes use of mechanisms such as ETFs for its operation, and usually also buy shares from your own country. In Switzerland there are requests that the SNB manages that portfolio actively (as an investment fund) to make more profitability. Meanwhile, the European Central Bank warns that shares can be overvalued.

And our Bank of Spain? The Bank of Spain, on the other hand, buys governments bonds to control inflation and interest rates throughout the eurozone. They all differ in their strategy, and clearly that of the SNB resembles an investment company than a traditional banking entity.

SNB positions in US companies. Source: Financial Times with sec data.

Switzerland is small to snb. But the Swiss bond market is too small for SNB operations, and that causes the entity to invest the foreign currencies that it acquires (mainly dollars and euros). He does it in bonds and, as we have seen, in abroad actions, a strategy that some analysts They call “Foreign quantitative flexibility” and that has led him to invest in those actions of technology companies in the US.

The powerful Swiss Franco. The argument that defends that strategy is that of the Swiss Franco strengthconsidered a global shelter currency. Having a strong currency is fantastic, but it is not good that it is too much Strong because it slows exports and can cause deflation: the extrin products become very cheap for the Swiss and make the Swiss companies very difficult to compete. To counteract all this, SNB does the opposite of what investors do. Sells francs – adding the offer – and buy foreign currencies that he does not want to have stops, so he invests them in companies such as Apple or Nvidia.

Passive-agreesive strategy. Although SNB philosophy is basically passive and does not exercise its voting rights in those companies, this entity adjusts its positions. The sec data reveals a great increase in their participation in NVIDIA or the creation of a new position in Berkshire Hathaway, and a reduction of assets in Meta and Netflix in the last two years. That, of course, has its risksbut SNB does not seem to go bad at the moment.

In Xataka | All against Nvidia: the strongest Chinese companies in Chips and IA have created a historical alliance