placed in a bond portfolio, whose composition differs from that of our currency reserves. approximately 65 % of the portfolio is invested in swiss franc bonds or hedged against exchange rate risks. the rest consists of bonds denominated in euros ( 25 % ), us dollars ( 3 % ) and other currencies ( 7 % ). the average duration of the portfolio is about three years. this investment profile takes account of the snb's legal framework and of the fact that future beneficiaries will want their return denominated in swiss francs. the market value of the gold proceeds amounts to approximately sfr 8 billion. since it was created in may 2000, this portfolio generated an average annual yield of 4. 3 %. the legal provision still prohibiting the national bank from acquiring equities has in fact rather well served the interests of the future beneficiaries of the free assets, as stock markets have been on a decline since may 2000. next september, the swiss people will have to decide on the appropriation of the free assets. there are several conceivable scenarios : either the so - called gold initiative is accepted, or the counterproposal of the federal council is accepted, or both proposals are rejected. each scenario has different implications for the date of transfer of the free assets and for the snb's balance sheet. whatever the outcome of the vote, we believe that the funds allocated to the free assets are no longer needed for conducting monetary policy and that, therefore, they have to be assigned for other purposes. as soon as one of the proposals put to the vote is accepted and the operational framework allowing such a transfer has been put in place, the national bank can transfer these assets to the future beneficiaries. should both proposals be rejected, this will not be interpreted as a mandate for the snb to reintegrate the free assets into its monetary reserves. in this case, we will instead continue to manage the free assets separately until a new allocation has been decided on. the income from this portfolio will be recorded in the snb's ordinary income statement and will become distributable only once the profit distribution agreement between the snb and the confederation has been revised. in this case, the income might lead to an increase in the snb's annual distribution of currently sfr 2. 5 billion.

thomas jordan : innovation and entrepreneurship - key success factors in a changing business environment summary of a speech by mr thomas jordan, chairman of the governing board of the swiss national bank, at the award ceremony 2018, de vigier foundation, solothurn, 30 may 2018. * * * the complete speech can be found in german on the swiss national bank ’ s website ( www. snb. ch ). for many decades, switzerland has been among the world ’ s most successful economies. if it is to maintain this position in future, openness to new technology will be essential. in addition to taking over technologies created elsewhere, switzerland will need to ensure that domestic companies are able to develop their own market - ready innovations. various factors can facilitate success on this front, whether in established companies or startups. above - average operating conditions – including low bureaucratic hurdles for the set - up and day - to - day running of companies, reliable patent law and ready access to financing, for example – are crucial. another important parameter is open market access, not least for foreign competitors ; barriers to entry for new firms are extremely harmful to economic wellbeing. the education system is also a significant determinant of a country ’ s innovative potential. switzerland invests heavily in high - quality education, both at university level and in the form of specialist vocational training schemes, which helps explain its status as a global leader in research and development. and finally, it is vital to promote a culture of entrepreneurship. the will to pursue a given business activity and succeed is critical if promising ideas are ultimately to evolve into marketable products or processes. switzerland cannot be truly ambitious without ambitious entrepreneurs, and surveys suggest that the country still has room for improvement here. against this backdrop, steps should be taken to cultivate innovative drive and entrepreneurial thinking early on, for instance by encouraging high school students to do projects in which they found their own small companies. various universities already run programmes designed to assist young researchers in bringing innovative products and services to market. private initiatives also play a significant role in nurturing entrepreneurship in switzerland, helping young people learn how to transform an idea into an innovation and operate a business. 1 / 1 bis central bankers'speeches