SNB's President opposes creation of sovereign Swiss fund

Swiss National Bank's (SNB) President, Thomas Jordan, says he opposes the creation of a sovereign fund with a share of the CHF 560bn ($559.33bn) that the central bank has invested, stating that he does not think "such a sovereign fund could produce greater returns that those we are already achieving". Furthermore, such a sovereign wealth fund for Switzerland, such as Norway has created with money from its significant oil reserves, would do nothing to weaken the Swiss franc against the euro, he added. As we previously noted, the SNB has predicted a record CHF 23bn ($23.06bn) loss in 2015 due to the Swiss franc's sharp rise of as much as 30% after the SNB abandoned a cap of 1.20 francs per euro on January 15th. 

Thomas Jordan, the governor of the Swiss National Bank (SNB), today (June 14) said the idea of setting up a sovereign wealth fund with the Bank's foreign currency holdings would do "little" to assist Switzerland or Swiss monetary policy.

"The idea of a sovereign wealth fund may appear attractive at first glance," Jordan said, before outlining three critical factors that meant the step would not be appropriate for Switzerland.

The governor said the creation of a fund would not help enforce the