Swiss National Bank (SNB) Chairman Martin Schlegel has robustly defended the central bank’s investment approach following calls from campaigners in Minneapolis to divest from Palantir Technologies. The controversy centres on the SNB’s substantial US$1.1 billion investment in the American software company. Palantir Technologies is a data analytics software company known for developing sophisticated platforms used by government agencies and intelligence communities worldwide. Schlegel declined to comment on individual stocks, reiterating that the SNB’s massive foreign currency portfolio is fundamentally designed to serve its monetary policy objectives.
Schlegel further elucidated the bank’s broader investment philosophy, underscoring that its holdings must remain available at all times and preserve their value over the long term. He clarified that for equity investments, the SNB adheres to a market-neutral approach. “We weight companies according to their market weight or market capitalisation, in order to cover the market as broadly as possible and also to diversify risks,” Schlegel stated, explaining the central bank’s strategy to ensure comprehensive market representation and mitigate potential exposures across its portfolio.
Despite this market-neutral stance, Schlegel confirmed that the SNB indeed applies specific exclusion criteria. The bank systematically avoids investing in companies that demonstrably cause severe environmental damage, violate fundamental human rights, or produce banned weapons. He elaborated that the SNB collaborates with external specialists who are tasked with conducting thorough screenings and making corresponding assessments to uphold these ethical standards. Schlegel expressed confidence in the robustness of this diligent process, acknowledging that corporate situations are not always definitively clear-cut, often involving “shades of grey, and there are even other colours as well.”
