These sovereign wealth funds were BSI’s largest and most profitable client group – and the fee income they generated was considerable, both for the bank itself and for the employees involved in … By law, the Swiss cantons receive two-thirds of the profits of the SNB. Japan has pledged a commitment to invest $4 billion in Indonesia's inaugural sovereign wealth fund, marking a speedy development that may hold the key for the Southeast Asian country's infrastructure ambitions. Prior to that he coordinated the New Climate Economy Special Initiative on financing the urban transition under the leadership of Nick Stern and Felipe Calderon at the London School of Economics (LSE) Cities. Decisions made for or against a sovereign wealth fund decades ago are also reflected in different political cultures. Our client is a leading global sovereign wealth fund, based in Abu Dhabi. Ernst grew up in Switzerland and consequently studied at the University of Toronto English literature and Philosophy. This is again the case now, given the economic damage caused by the global pandemic. As it is, the «fifth Switzerland» represents many years of Swiss investment abroad, amounts to slightly over 100% of Swiss GDP and generates revenues amounting to about 10% of Swiss GDP annually – incidentally a very good rate of return and one which a state-run body would be unlikely to beat. It also holds portfolios of real estate and fixed-income investments. The outsourcing of part of the reserves of the SNB for a national sovereign wealth fund would lead to a reduction in assets, which in turn would reduce the profit potential of the Swiss National Bank. In these regards, Switzerland is closer to Hong Kong. Copyright © GlobalPolicyJournal 2020. The idea of a Swiss sovereign wealth fund (SWF) which could use a part of the country’s massive reserves for investments arose after Switzerland had established in 2011 its currency link to the Euro. His new book «Capital Choices: Sectoral Politics and the Variation of Sovereign Wealth» investigates the puzzle of sovereign wealth fund creation across countries from a new perspective. It is also worth noting that the SNB is privately held and is held by a majority of cantons and cantonal banks. But then there is the proposal that this fund should invest in Switzerland. Could the eurozone pull off the same trick? The sovereign wealth funds (SWFs) of Abu Dhabi, Kuwait and Qatar have underpinned the resilience of their sovereign ratings despite lower oil prices and the coronavirus shock. Saudi Arabia’s sovereign wealth fund overhauled some of its top management as it prepares to take a greater role in the local economy. Sovereign wealth funds are normally associated with ultra-wealthy oil-exporting countries like Norway or Saudi Arabia. An earlier German version of this post was published in Finanz und Wirtschaft. 6 Pages Posted: 6 Sep 2017. The latter argue that the state cannot make better investment decisions than the private sector. 7th Jul, 2020 - 5 min read. 8). The call for the creation of a Swiss sovereign wealth fund (SWF) has become louder these days. Four decades ago, Singapore made a choice for an SWF, whereas Hong Kong opted against one. Nonetheless, it is very unlikely that Switzerland will follow the example of Norway, Qatar, and Singapore. The latest debate took place in September 2018 when Christian Levrat, the head of the Swiss Socialist Party (SP), proposed to create a Swiss state fund whose return could be paid to the AHV. The different paths taken by these nations influenced Braunstein's book title, Capital Choices. The Swiss National Bank (SNB) already holds a part of its reserves abroad. 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