The annual World Economic Forum took place in Davos, Switzerland this year, bringing the world’s business leaders together to share their thoughts on what lies ahead in the coming year. Looks like there’s a new power to be reckoned with right where this meeting of minds has taken place – the Swiss National Bank. According to Christian Heger, head investment strategist at HSBC Global Asset Management in Germany, “Switzerland has become one of the world’s largest hedge funds.”
The bank is remaining tight-lipped about what stocks they hold. Onlookers have estimated that it has at least 100 billion Euros in German bonds, therefore giving them the capability of bring down Europe’s government bond market in a snap is they wanted to. Seemingly under the radar, the bank has become one of the financial world’s most relevant players.
In September of 2011, the country made a decision to stop the appreciation of the Swiss Franc. This created a currency reserve that the country has been stockpiling for a couple of years, subsequently giving them billions of Euros to move around and make large profits with.
Although it is unclear what they intended to do with the money, bankers aren’t eager to divulge this sort of information, legal obligations for companies to disclose who their shareholders are told at least part of the story. 50 million Euros were invested in shares of Nokia. Kone Corporation and UPM were also recipients of investments, bringing the investments into Finnish stocks to an estimated 330 million Euros.