THE SWISS HELVETIA FUND, INC - Schroders
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THE SWISS HELVETIA FUND, INC.
Managed Distribution Policy Disclosure With each distribution, the Fund will
In May 2018, The Swiss Helvetia Fund, issue a notice to stockholders and a press
Inc. (the “Fund”), acting pursuant to an release which will provide detailed
SEC exemptive order and with the information regarding the amount and
approval of the Fund’s Board of Directors composition of the distribution and other
(the “Board”), adopted a managed related information. The amounts and
distribution policy. Under that policy, as sources of distributions reported in the
resumed by the Board and announced in notice to stockholders are only estimates,
November 2019, the Fund will pay a are likely to change over time, and are not
quarterly distribution stated in terms of a being provided for tax reporting purposes.
fixed amount of $0.13755 per share of the The actual amounts and sources of the
Fund’s common stock, which equates to amounts for tax reporting purposes will
an annualized distribution rate of 6.00% depend upon the Fund’s investment
based on the Fund’s net asset value of experience during the remainder of its
$9.17 as of October 31, 2020. In fiscal year and may be subject to changes
accordance with the policy, the Fund based on tax regulations. The Fund will
distributed on March 31, 2021 and send you a Form 1099- DIV for the
June 30, 2021, $0.13755 per share to calendar year that will tell you how to
stockholders of record on March 22, 2021 report these distributions for federal
and June 21, 2021. income tax purposes. Please refer to
“Federal Income Tax and Investment
You should not draw any conclusions Transactions” under Note 5 of the Notes to
about the Fund’s investment performance Financial Statements (Unaudited) for
from the amount of the Fund’s distribution information regarding the tax character
or from the terms of the Fund’s managed of the Fund’s distributions. A copy of the
distribution policy. The Board reviews the Fund’s Section 19(a) notices is available on
Fund’s managed distribution policy the Fund’s website at www.swzfund.com.
periodically and may amend or terminate
the managed distribution policy at any The Fund’s total return in relation to
time without prior notice to Fund changes in net asset value is presented in
stockholders, which could have an the Financial Highlights.
adverse effect on the market price of the
Fund’s shares.
1
THE SWISS HELVETIA FUND, INC.
Management Discussion and Analysis (as Europe. We now forecast the world
of June 30, 2021) economy to expand by 5.9% this year
For the six-month period ending before slowing to 4.5% in 2022. To put the
June 30, 2021, the performance of The growth outlook in context, we believe the
Swiss Helvetia Fund, Inc. (the “Fund”), as recovery will be driven by a re-opening of
measured by the change in value in the the service sector, which should favor
Fund’s net asset value (“NAV”), increased advanced economies over emerging
8.5% in US dollars (“USD”). For the same markets. The differential is expected to be
period, the Fund’s share price reinforced by a greater availability of
performance increased 12.1% in USD. This vaccines and fiscal support in developed
compares with an increase of 9.9% in the economies. Notably, this expected
Swiss Performance Index (the “Index” or outcome differs significantly from the
the “SPI”) in USD. recovery from the last recession, where
massive stimulus in China led emerging
Economic environment during the period markets out of the global financial crisis.
under review
In Switzerland, as expected, the easing
Global economic review of coronavirus restrictions has triggered a
The first quarter of 2021 was again swift recovery in the domestic economy.
dominated by uncertainties due to The Federal Government’s Expert Group
Covid-19, with a renewed rise in the (SECO) has increased its GDP forecast for
number of infections in many countries 2021 to +3.6 %. The Swiss economy is also
and a combination of new and prolonged expected to grow at a significantly above-
measures to combat the virus. Hopes for average rate in 2022.
an improved economic outlook were
focused on mass vaccinations campaigns Market environment during the period
that were set to take place in several under review
countries during the second quarter. In the first quarter of 2021, markets
The economic environment indeed shook off worries of increasing Covid-19
looked brighter in the second quarter. The infection numbers and continued to rise on
general success of the Covid-19 vaccines’ the back of the vaccines’ rollouts and the
roll outs, official policy support of the roll hopes for a stronger-than-anticipated
outs in a number of countries, and the global economic recovery in the course of
adaptability of many firms that operated the year. From mid-February, higher
with significant Covid-19 restrictions led us inflation expectations and increased bond
to increase our forecast for global growth, yields led to a short sell-off in equities.
with significant upgrades to the US and However, supported by further government
2
THE SWISS HELVETIA FUND, INC.
stimulus and a positive economic outlook, 9.9% as measured by the SPI in USD. For
markets recovered quickly. the entire first six months of the year the
MSCI World, S&P 500, and MSCI Europe
In the second quarter, global equity
returned 13.5%, 16.0%, and 11.3% in USD,
markets, including Switzerland’s, again saw
respectively. This comes after the SPI’s
strong gains. In Switzerland, large cap
increase of 13.8% in 2020. In the first half
stocks outperformed small & mid cap stocks
of 2021, small & mid caps, represented by
and defensive stocks and sectors advanced
the SPI Extra Index (the “SPIEX”),
more than cyclical stocks and sectors.
outperformed large caps, represented by
However, overall, Swiss equities the Swiss Market Index Total Return (the
underperformed international peers for “SMIC”), by +3.2% in USD.
the full first half 2021. They increased by
3THE SWISS HELVETIA FUND, INC.
Swiss Performance Index for the first half 2021
Sector Weight Absolute sector performance
Basic Resources 0.03% 46.14%
Consumer Products and Services 4.00% 31.51%
Industrial Goods & Services 10.49% 19.69%
Construction & Materials 6.00% 18.55%
Media 0.03% 12.87%
Technology 2.42% 12.79%
Personal Care, Drug, and Grocery Stores 0.47% 12.67%
Telecommunications 0.89% 10.50%
Financial Services 7.51% 9.89%
Chemicals 2.61% 8.43%
Travel & Leisure 0.07% 8.21%
Food, Beverage & Tobacco 20.94% 8.09%
Health Care 34.52% 7.58%
Automobile & Parts 0.03% 2.16%
Insurance 6.80% 1.28%
Real Estate 1.36% 0.08%
Banks 1.47% -0.21%
Utilities 0.16% -1.80%
Retail 0.20% -4.47%
-35% -25% -15% -5% 5% 15% 25% 35% 45% 55%
Source: Schroders, Bloomberg, as of June 30, 2021. Performance measured as total return in USD. Sectors mentioned should not
be viewed as a recommendation to buy/sell. Portfolio composition is subject to change over time. Investors cannot invest directly in
the Index.
Performance counterparts. The MSCI Switzerland
During the period under review, the Growth Index increased by 18.5% over the
Fund’s NAV return of 8.5% was behind the half year, while the value pendant
Index’s return by -1.4% in USD. increased by only 8.7% (measured in CHF,
as there is no USD variant available).
In terms of style, “growth” stocks Amongst small & mid cap stocks, the MSCI
significantly outperformed their “value” Switzerland Small & Mid Cap Growth Index
4THE SWISS HELVETIA FUND, INC.
outperformed its value counterpart by Vifor Pharma. In contrast, negative
9.8%. This better performance by growth contributions came from overweights in
stocks as compared to value stocks was SoftwareOne, ams, BKW, Baloise, Zurich
not beneficial to the Fund, which has Insurance and VZ Holding, as well as
greater exposure to value stocks and underweights in Kühne & Nagel,
sectors. The Fund’s ‘value tilt’ is partly a Straumann, Roche and Sika. The Fund’s low
reflection of the management style of the single digit cash position also detracted
Fund’s investment adviser, but also partly from relative performance.
the result of industry concentration rules
Overall, the Fund underperformed the
that restrict the Fund’s exposure to the
benchmark by -1.4% in the first half of
heavyweight pharmaceutical sector at a
2021. Its private equity positions as a
level below the benchmark weight.
whole experienced only a small change in
The Fund’s size bias towards small & valuation. That said, in a period where
mid cap stocks was a small tailwind for listed equities increased strongly, private
performance. During the period under equity positions overall had a negative
review, the small & mid cap index SPIEX impact of 0.2% on relative performance.
returned 14.7% and outperformed the
large cap index SMIC by 3.3% (in CHF). Portfolio changes
In total, there were 10 purchases and 16
In terms of stock picking, positive sales of listed equities on a net basis in the
contributions came from overweights in first half of 2021, plus a sale of the privately
Logitech, Swatch, Swissquote, Richemont, held Ixodes. As of June 30, 2021, there are
SIG Combibloc, Sulzer, SFS, Julius Baer and 42 listed companies held by the Fund and
Sonova, as well as an underweight in four direct private equity investments.
5THE SWISS HELVETIA FUND, INC.
New Investments by the Fund Positions Entirely Disposed of
Aryzta DKSH
OC Oerlikon Sensirion
Polypeptide Ixodes
Additions to Existing Investments Reductions in Existing Investments
ams ABB
Credit Suisse Baloise
Nestlé BKW
SIG Combibloc Cembra
Swissquote Geberit
UBS Helvetia
Zurich Insurance Julius Baer
Logitech
Novartis
Partners Group
Richemont
SFS
Swiss Life
Swiss Re
6THE SWISS HELVETIA FUND, INC.
The Fund established new positions in Solutions – and has a global footprint of
Aryzta, OC Oerlikon and Polypeptide. more than 10,600 employees at 179
locations in 37 countries. In 2020,
Aryzta is an international bakery
Oerlikon generated CHF 2.3 billion in sales
company with a leadership position in
and invested CHF 118 million in research
convenience bakery that offers a range of
and development Since the beginning of
products and services for in-store bakery
2018, Oerlikon has underperformed
solutions. Aryzta produces a variety of
relative to the market and relative to its
foods including, among others, artisan
industry peers. We believe that this
breads, pastries, cookies, donuts, muffins
negative performance is attributable to a
and buns. We believe that Aryzta’s sale of
cyclical decline as well as company
its North American business will allow it
specific issues, such as bad cost
to focus on and improve the quality of its
management. With the appointment of a
balance sheet. Its core business product
new CFO in January 2020, however, cost
offerings remain strong, and we believe
management has significantly improved.
that its new CEO can lead the firm back
into profitable growth. The Fund participated in the IPO of
the Polypeptide group. Polypeptide is the
Oerlikon is a global technology group
second largest global developer and
that aims to become a leading provider of
manufacturer of peptides, an area of the
surface solutions, advanced materials,
pharmaceutical and biotechnology value
and materials processing. Oerlikon
chain that is showing above-average
engineers materials, equipment, and
growth.
surfaces and provides expert services
enabling customers to have high- Positions were increased in a number
performance products and systems with of stocks where the Fund’s investment
extended lifespans. Drawing on its key adviser views valuation as attractive in
technological competencies and strong comparison to the market or sector, such
financial foundation, Oerlikon is currently as ams, Credit Suisse, Nestlé, SIG Combibloc,
sustaining mid-term growth by executing Swissquote, UBS and Zurich Insurance.
three strategic drivers: addressing
Positions that were reduced, mainly to
attractive growth markets, securing
trim back the exposure to their original
structural growth, and expanding
weights after strong rises, were in ABB,
through targeted mergers and
Baloise, BKW, Cembra, Geberit, Helvetia, Julius
acquisitions. Oerlikon operates its
Baer, Logitech, Novartis, Partners Group,
business in two divisions – Surface
Richemont, SFS Swiss Life, and Swiss Re.
Solutions and Polymer Processing
7THE SWISS HELVETIA FUND, INC.
Positions in DKSH and Sensirion were with significant Covid-19 restrictions has
entirely disposed of. Sensirion was sold as led us to increase our forecast for global
the Fund’s investment adviser believes growth. This enhanced forecast is led by
that its fair valuation has been reached. our expectations for the US and Europe
DKSH was sold due to concerns about the with only a minor increase in the
potential impact of Covid-19 variants in emerging market forecast. The differential
Asian markets, which are markets that we is reinforced by the greater availability of
believe are core to its success. vaccines and fiscal support in the
developed economies. This expected
Outlook and Investment View outcome differs from the recovery from
The success of the Covid-19 vaccines’ the last recession, where massive stimulus
roll outs, official policy support of the roll in China led the emerging markets out of
outs in a number of countries, and the the global financial crisis.
adaptability of many firms that operated
Contributions to World GDP growth (y/y)
Source: Schroders Economics Group, 26 May 2021
8THE SWISS HELVETIA FUND, INC.
We expect that inflation will increase in prevent short-term shortages of materials,
the near term, largely as a consequence of parts, and labour. We concur with the
the rise in commodity prices and the rapid Federal Reserve’s (the “Fed”) view that
pace of recovery, which has created there will be a transitory spike in inflation.
bottlenecks in some sectors of the world However, we are also forecasting higher
economy. We believe growth in 2021 will inflation further out, as we anticipate that
be the fastest in the 21st century, and the output gap may close in several
while there is significant spare capacity, it countries and regions as capacity tightens
cannot be put in place rapidly enough to in 2022.
Recovery paths – advanced economy output gaps closing in 2022
Source: Schroders Economics Group, 27 May 2021
9THE SWISS HELVETIA FUND, INC.
Other economies are lagging behind Nonetheless, a more hawkish Fed
the US, but not by much, and could lead to a more challenging
policymakers can expect to come under environment for investors with higher
similar scrutiny in 2022. Growth in Europe volatility levels. We believe this could be
is expected to receive a significant accompanied by an end to ultra-low
upgrade as the pace of Covid-19 interest rates and a decrease or unwinding
vaccinations has increased, thus of monetary stimuli. Put differently, while
improving the prospects for an earlier re- there is likely still going to be an appetite
opening and the avoidance of further for some supportive fiscal stimuli, we
restrictions. Inflation is also expected to believe that the sheer amount of fiscal
rise more than originally forecast, but spending throughout the Covid-19 crisis is
remains low in comparison to the US, and not sustainable. In the course of Q2 2021,
therefore we do not anticipate that the we again saw a significant outperformance
European Central Bank will change its of quality growth companies which led to
current policy path. valuation multiples at record levels in this
segment. We expect style and sector
Emerging markets (“EMs”) should
leadership to revert more towards
benefit from a stronger global economy,
“reflation”. While we do not anticipate this
but the upgrades to our forecasts are not
style rotation will happen all at once, we
large, and we believe GDP growth in EMs
are convinced that the Fund’s portfolio –
may barely exceed the pace of expansion
with its focus on quality, valuation, and
in developed markets next year. A period
sustainability – is well positioned to benefit
of above-target inflation in many EMs
from this evolution.
should subside as the impact of higher
food and energy costs fades, negating the
need for aggressive interest rate hikes by
most central banks.
10THE SWISS HELVETIA FUND, INC.
Schedule of Investments by Industry (Unaudited) June 30, 2021
Percent Percent
No. of of Net No. of of Net
Shares Security Value Assets Shares Security Value Assets
Common Stock — 96.03%
Banks — 4.31% Biotechnology — (continued)
6,469 Cembra Money Bank AG $ 725,737 0.50% 3,788 PolyPeptide Group AG1 $ 349,970 0.24%
Provides financial services. Operates as a biotechnology
The company’s services company. The Company
include personal loans, focuses on producing
vehicle financing, credit proprietary and generic
cards and savings and GMP grade peptides for
insurance services. the pharmaceutical and
(Cost $384,501) biotechnology industry.
(Cost $266,102) ______________ _______
221,000 Credit Suisse Group AG 2,317,231 1.59% 2,475,919 1.70%
A global diversified financial Building Materials — 2.97%
services company with
significant activity in 660 Forbo Holding AG 1,250,955 0.86%
private banking, Produces floor coverings,
investment banking and adhesives and belts for
asset management. conveying and power
(Cost $2,744,282) transmission.
(Cost $1,054,700)
212,000 UBS Group AG 3,247,601 2.22%
Provides retail banking, 2,100 Geberit AG 1,576,675 1.08%
corporate and institutional Manufactures and supplies
banking, wealth management, water supply pipes and
asset management and fittings, installation, and
investment banking. drainage and flushing
(Cost $2,916,983) systems such as visible
______________ _______ cisterns other sanitary
6,290,569 4.31% systems for the commercial
Biotechnology — 1.70% and residential
construction markets.
36,000 Idorsia Ltd.1 990,794 0.68% (Cost $1,000,204)
Researches, develops,
and manufactures 4,600 Sika AG 1,505,382 1.03%
pharmaceutical, biological, Manufactures construction
and diagnostic products. materials, producing
(Cost $1,027,734) concrete and mixtures,
mortar, sealants and
1,600 Lonza Group AG 1,135,155 0.78% adhesives, tooling resins,
Produces organic fine anti-static industrial flooring,
chemicals, biocides, active and acoustic materials. The
ingredients, and company serves customers
biotechnology products. worldwide.
(Cost $1,002,069) (Cost $667,980) ______________ _______
4,333,012 2.97%
See Notes to Financial Statements (Unaudited).
11THE SWISS HELVETIA FUND, INC.
Schedule of Investments by Industry (Unaudited) June 30, 2021
(continued)
Percent Percent
No. of of Net No. of of Net
Shares Security Value Assets Shares Security Value Assets
Common Stock — (continued)
Chemicals — 1.13% Diversified Financial Services — 3.52%
148,778 OC Oerlikon Corp. AG $ 1,651,390 1.13% 31,835 Julius Baer Group Ltd. $ 2,079,512 1.42%
Manufactures industrial Provides private banking
equipment. The Company services. The company
produces protective coatings advises on wealth
for precision tools and management, financial
components, equipment planning and investments;
for textile production, and offers mortgage and other
propulsion technology lending, foreign exchange,
drive systems. securities trading, custody
(Cost $1,629,805) ______________ _______ and execution services.
1,651,390 1.13% (Cost $1,344,842)
Commercial Services — 0.47%
12,700 Swissquote Group
221 SGS SA 682,354 0.47% Holding SA 1,920,766 1.32%
Provides industrial Through its subsidiaries,
inspection, analysis, testing, offers online financial services.
and verification services. The company operates an
(Cost $553,249) ______________ _______ online trading system which
682,354 0.47% offers customers real-time
Computers — 4.27% securities quotes on the
Swiss Stock Exchange.
40,000 Logitech International SA 4,850,976 3.32% (Cost $1,365,463)
Engages in the development
and marketing of hardware 13,408 VZ Holding AG 1,137,218 0.78%
and software products that Provides independent
enable or enhance digital financial advice to private
navigation, music and video individuals and companies.
entertainment, gaming, The company consults on
social networking and audio investment, tax and
and video communication. inheritance planning and
(Cost $542,328) provides advice regarding
58,611 SoftwareONE Holding AG 1,385,461 0.95% insurance products
Provides IT services. The and coverage.
Company offers cloud (Cost $438,472) ______________ _______
computing, portfolio 5,137,496 3.52%
management, procurement,
unified communication,
and other related solutions.
(Cost $1,249,079) ______________ _______
6,236,437 4.27%
See Notes to Financial Statements (Unaudited).
12THE SWISS HELVETIA FUND, INC.
Schedule of Investments by Industry (Unaudited) June 30, 2021
(continued)
Percent Percent
No. of of Net No. of of Net
Shares Security Value Assets Shares Security Value Assets
Common Stock — (continued)
Electric — 1.27% Food — (continued)
17,771 BKW AG $ 1,851,406 1.27% 206,000 Nestlé SA $ 25,677,849 17.59%
Provides energy supply One of the world’s largest
services. The company food and beverage
focuses on the production, processing companies.
transportation, trading and (Cost $14,003,625) ______________ _______
sale of energy. In addition 26,456,712 18.12%
to energy supply, the Hand/Machine Tools — 0.96%
company also develops,
implements and operates 4,550 Schindler Holding AG 1,393,033 0.96%
energy solutions Manufactures and installs
for its clients. elevators, escalators, and
(Cost $1,113,645) ______________ _______ moving walkways
1,851,406 1.27% internationally. The
company’s products are
Electronic Components & Equipment — 2.23% used in airports, subway
96,000 ABB Ltd. 3,260,064 2.23% stations, railroad terminals,
Provides power and shopping centers, cruise
automation technologies. ships, hotels, and office
The company operates buildings. The company
under segments that also offers maintenance
include power products, services.
power systems, automation (Cost $977,749) ______________ _______
products, process 1,393,033 0.96%
automation, and robotics. Healthcare-Products — 4.98%
(Cost $2,239,882) ______________ _______ 10,200 Alcon, Inc. 714,833 0.49%
3,260,064 2.23% Manufactures eye care
Food — 18.12% products. The company
570,477 Aryzta AG1 778,863 0.53% produces and markets
Produces and retails vitreoretinal and cataract
specialty bakery products. surgery, contact lenses,
The Company produces and refractive technology
French breads, pastries, products.
continental breads, (Cost $667,799)
confections, artisan breads,
homestyle lunches,
viennoiserie, patisserie,
cookies, pizza, appetizers,
and sweet baked goods.
(Cost $759,601)
See Notes to Financial Statements (Unaudited).
13THE SWISS HELVETIA FUND, INC.
Schedule of Investments by Industry (Unaudited) June 30, 2021
(continued)
Percent Percent
No. of of Net No. of of Net
Shares Security Value Assets Shares Security Value Assets
Common Stock — (continued)
Healthcare-Products — (continued) Healthcare-Products — (continued)
125,416 Eyesense AG, Series A1,2,3
$ 46,131 0.03% 5,295 Tecan Group AG $ 2,625,875 1.80%
A spin-out from Ciba Vision Manufactures and
AG. Develops novel distributes laboratory
ophthalmic self- diagnostic automation components
systems for glucose and systems. The
monitoring of products are mainly
diabetes patients. used by research and
(Cost $3,007,048) diagnostic laboratories.
(Cost $486,487) ______________ _______
3,500 Medacta Group SA1 459,674 0.32% 7,267,164 4.98%
Produces and distributes Healthcare-Services — 0.58%
medical devices. The
company develops, 11,900 Galenica AG 840,666 0.58%
manufactures, and Retails pharmaceutical
distributes orthopedic products, and services
and neurosurgical customers in Switzerland.
medical devices. The Company offers health,
(Cost $341,248) beauty, and related
products and services.
5,486 Sonova Holding AG 2,065,374 1.41% (Cost $602,995) ______________ _______
Designs and produces 840,666 0.58%
wireless analog and digital Industrials — 0.91%
in-the-ear and behind-the-ear
hearing aids and 2,900 Belimo Holdings AG 1,327,095 0.91%
miniaturized voice Manufactures heating,
communications systems. ventilation and air
(Cost $846,271) conditioning equipment.
(Cost $344,115) ______________ _______
250,550 Spineart SA1,2,3 1,355,277 0.93% 1,327,095 0.91%
Designs and markets an Insurance — 9.17%
innovative full range of
10,537 Baloise Holding AG 1,644,928 1.13%
spine products, including
Offers group and individual
fusion and motion
life, health, accident, liability
preservation devices,
property, and transportation
focusing on easy to implant
insurance to customers in
high-end products to
Europe. The Company also
simplify the surgical act.
offers private banking and
(Cost $1,761,659)
asset management services.
(Cost $1,626,589)
See Notes to Financial Statements (Unaudited).
14THE SWISS HELVETIA FUND, INC.
Schedule of Investments by Industry (Unaudited) June 30, 2021
(continued)
Percent Percent
No. of of Net No. of of Net
Shares Security Value Assets Shares Security Value Assets
Common Stock — (continued)
Insurance — (continued) Metal Fabricate/Hardware — 1.25%
14,838 Helvetia Holding AG $ 1,597,210 1.09% 12,700 SFS Group AG $ 1,828,712 1.25%
Provides a broad range of Provides automotive
life, casualty, liability, products, building and
accident and transportation electronic components,
insurance in Switzerland and flat roofing and solar
in other European countries. fastening systems. The
The Company insures company operates
individuals, property such production facilities in Asia,
as vehicles and buildings, Europe and North America.
and consumer goods and (Cost $846,209) ______________ _______
personal belongings 1,828,712 1.25%
(Cost $1,458,102) Miscellaneous Manufacturing — 1.41%
7,339 Swiss Life Holding AG 3,569,659 2.44% 14,620 Stadler Rail AG 643,416 0.44%
Provides life insurance Engineers and
and institutional manufactures trains.
investment management. The company offers
(Cost $2,387,463) suburban and regional
transport trains, light rail
8,359 Swiss Re AG 754,919 0.52% vehicles, and trams.
Offers reinsurance, (Cost $608,027)
insurance, and insurance
linked financial 10,200 Sulzer AG 1,410,245 0.97%
market products. Manufactures machinery
(Cost $602,605) and equipment, and
operates in a surfacing
14,500 Zurich Insurance technology business. The
Group AG 5,822,903 3.99% Company provides
Provides insurance-based pumping and surface
financial services. The technology solution and
company offers general services, services and
and life insurance products repair of thermal turbo
and services for individuals, machinery, and service
small businesses, for separation
commercial enterprises, and static mixing.
mid-sized and large (Cost $964,564) ______________ _______
corporations, and 2,053,661 1.41%
multinational companies.
(Cost $4,874,010) ______________ _______
13,389,619 9.17%
See Notes to Financial Statements (Unaudited).
15THE SWISS HELVETIA FUND, INC.
Schedule of Investments by Industry (Unaudited) June 30, 2021
(continued)
Percent Percent
No. of of Net No. of of Net
Shares Security Value Assets Shares Security Value Assets
Common Stock — (continued)
Packaging & Containers — 2.27% Private Equity — 1.81%
122,000 SIG Combibloc Group AG $ 3,318,094 2.27% 1,738 Partners Group
The company, through Holding AG $ 2,635,157 1.81%
its subsidiaries, A global private markets
manufactures and investment management firm
produces bottling with investment programs
machines and systems under management in
for the food and private equity, private real
beverage industries. estate, private infrastructure
The company serves and private debt. The firm
customers worldwide. manages a broad range of
(Cost $1,440,475) customized portfolios for an
______________ _______ international clientele of
3,318,094 2.27% institutional investors. Partners
Pharmaceuticals — 24.26% Group is headquartered
182,000 Novartis AG 16,602,196 11.37% in Zug, Switzerland.
One of the leading (Cost $1,150,875) ______________ _______
manufacturers of 2,635,157 1.81%
branded and generic Retail — 7.00%
pharmaceutical products.
53,500 Cie Financiere
(Cost $10,237,492)
Richemont SA 6,479,499 4.44%
Manufactures and retails
49,901 Roche Holding AG 18,816,459 12.89% luxury goods. Produces
Develops and manufactures jewelry, watches, leather
pharmaceutical and goods, writing instruments
diagnostic products. and men’s and
Produces prescription women’s wear.
drugs to treat (Cost $4,052,626)
cardiovascular, infectious
and autoimmune diseases 56,628 Swatch Group AG –
and for other areas Registered Shares 3,740,076 2.56%
including dermatology Manufactures finished
and oncology. watches, movements and
(Cost $9,346,153) ______________ _______ components. Produces
35,418,655 24.26% components necessary
to its various watch brand
companies. The company
also operates retail boutiques.
(Cost $4,903,863) ______________ _______
10,219,575 7.00%
See Notes to Financial Statements (Unaudited).
16THE SWISS HELVETIA FUND, INC.
Schedule of Investments by Industry (Unaudited) June 30, 2021
(continued)
Percent Percent
No. of of Net No. of of Net
Shares Security Value Assets Shares Security Value Assets
Common Stock — (continued) Limited Partnership — 0.71%
Semiconductors — 1.44% Biotechnology — 0.71%
105,000 AMS AG1 $ 2,108,292 1.44% 3,294,705 Aravis Biotech II,
Designs and manufactures Limited Partnership1,3,4 $ 1,034,053 0.71%
advanced sensor solutions. Makes early stage venture
The company also delivers investments in the
a broad range of technology biotechnology &
solutions for consumer pharmaceuticals industry.
electronics and (Cost $1,810,184) ______________ _______
communication 1,034,053 0.71%
device manufactures. Total Limited Partnership
(Cost $1,780,070) ______________ _______ (Cost $1,810,184) 1,034,053 0.71%
2,108,292 1.44%
Short-Term Investment — 0.67%
Total Common Stock
(Cost $91,619,040) 140,175,082 96.03% 985,270 U.S. Bank Money Market
Deposit Account, 0.003%5 985,270 0.67%
Preferred Stock — 0.03% (Cost $985,270) ______________ _______
Industrial Goods & Services — 0.03% 985,270 0.67%
Total Short-Term
500,863 SelFrag AG Class A1,2,3 48,767 0.03% Investment
Designs, manufactures and (Cost $985,270) 985,270 0.67%
sells industrial machines
and processes using selective Total Investments
fragmentation technology. (Cost $96,346,692) 142,243,172 97.44%
(Cost $1,932,198) ______________ _______ Other Assets
48,767 0.03% Less Liabilities 3,735,671 _______
______________ 2.56%
Total Preferred Stock
Net Assets $145,978,843
______________ 100.00%
_______
(Cost $1,932,198) 48,767 0.03% ______________ _______
Net Asset Value Per Share:
($145,978,843 ÷13,212,254
shares outstanding,
$0.001 par value: 50 million
shares authorized) $11.05
See Notes to Financial Statements (Unaudited).
17THE SWISS HELVETIA FUND, INC.
Schedule of Investments by Industry (Unaudited) June 30, 2021
(continued)
1 Non-income producing security.
2 Value determined using significant unobservable inputs.
3 Illiquid. There is not a public market for these securities in the United States or in any foreign jurisdiction, including Switzerland.
Securities are priced in accordance with the Fund’s valuation policy and procedures. At the end of the period, the aggregate Fair
Value of these securities amounted to $2,484,228 or 1.70% of the Fund’s net assets. Additional information on these securities is
as follows:
Security
_______ Acquisition Date
_______________ Cost
____
Aravis Biotech II, Limited Partnership July 31, 2007 – May 29, 2018 $1,810,184
Eyesense AG – Common Shares July 22, 2010 – October 3, 2011 3,007,048
SelFrag AG – Class A – Preferred Shares December 15, 2011 – January 28, 2014 1,932,198
Spineart SA – Common Shares December 22, 2010 – December 20, 2020 1,761,659
____________
$8,511,089
____________
____________
4 Affiliated Company. An affiliated company is a company in which the Fund has ownership of at least 5% of the company’s
outstanding voting securities or an equivalent interest in the company. Details related to affiliated company holdings are as
follows:
Value Change in Value
as of Gross Gross Realized Unrealized Interest as of
Name of Issuer
______________ 12/31/20
_________ Additions
_________ Reductions
__________ Gain/(Loss)
__________ Gain/(Loss)
__________ Income
_______ 6/30/21
_________
Aravis Biotech II,
Limited Partnership $1,072,405 $ — $ — $ — $ (38,352) $ — $1,034,053
Ixodes AG – Preferred
Shares B 8,172
____________ —
_____ (21,882)
_________ (2,230,260)
____________ 2,243,970
____________ —
_____ —
____________
$1,080,577
____________ $ —
_____ $(21,882)
_________ $(2,230,260)
____________ $2,205,618
____________ $ —
_____ $1,034,053
____________
____________ _____ _________ ____________ ____________ _____ ____________
5 Rate shown is the seven day annualized yield as of June 30, 2021.
See Notes to Financial Statements (Unaudited).
18THE SWISS HELVETIA FUND, INC.
Schedule of Investments by Industry (Unaudited) June 30, 2021
(concluded)
PORTFOLIO HOLDINGS TOP 10 PORTFOLIO HOLDINGS
% of Net Assets as of June 30, 2021 % of Net Assets as of June 30, 2021
Industry: Nestlé SA 17.59%
Pharmaceuticals 24.26% Roche Holding AG 12.89%
Food 18.12% Novartis AG 11.37%
Insurance 9.17% Cie Financiere Richemont SA 4.44%
Retail 7.00% Zurich Insurance Group AG 3.99%
Healthcare-Products 4.98% Logitech International SA 3.32%
Banks 4.31% Swatch Group AG – Registered Shares 2.56%
Computers 4.27% Swiss Life Holding AG 2.44%
Diversified Financial Services 3.52% SIG Combibloc Group AG 2.27%
Building Materials 2.97% ABB Ltd. 2.23%
Biotechnology 2.41%
Packaging & Containers 2.27%
Electronic Components & Equipment 2.23%
Private Equity 1.81%
Semiconductors 1.44%
Miscellaneous Manufacturing 1.41%
Electric 1.27%
Metal Fabricate/Hardware 1.25%
Chemicals 1.13%
Hand/Machine Tools 0.96%
Industrials 0.91%
Short-Term Investment 0.67%
Healthcare-Services 0.58%
Commercial Services 0.47%
Industrial Goods & Services 0.03%
Other Assets Less Liabilities 2.56%
_________
100.00%
_________
_________
See Notes to Financial Statements (Unaudited).
19THE SWISS HELVETIA FUND, INC.
Statement of Assets and Liabilities (Unaudited) June 30, 2021
Assets:
Investments in unaffiliated issuers, at value (cost $94,536,508) . . . . . . . . . . . . . $141,209,119
Investments in affiliated issuers, at value (cost $1,810,184) . . . . . . . . . . . . . . . . . 1,034,053
______________
Total Investments, at value (cost $96,346,692) . . . . . . . . . . . . . . . . . . . . . . . . . . 142,243,172
______________
Foreign currency (cost $2,297,874) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,241,364
Tax reclaims receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,747,283
Receivable for investment sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144,732
Interest receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,335
______________
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146,407,889
______________
Liabilities:
Accrued:
Investment advisory fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88,423
Audit fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,710
Legal fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119,707
Custody fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,748
Directors’ fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,373
Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103,085
______________
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 429,046
______________
Net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $145,978,843
______________
______________
Composition of Net Assets:
Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $101,615,444
Total distributable earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,363,399
______________
Net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $145,978,843
______________
______________
Net Asset Value Per Share:
($145,978,843 ÷ 13,212,254 shares outstanding,
$0.001 par value: 50 million shares authorized) . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11.05
______________
______________
See Notes to Financial Statements (Unaudited).
20THE SWISS HELVETIA FUND, INC.
Statement of Operations (Unaudited) For the Six Months Ended June 30, 2021
Investment Income:
Dividend (less of foreign tax withheld of $455,661) . . . . . . . . . . . . . . . . . . . . . . . . $ 2,582,079
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
______________
Total income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,582,085
______________
Expenses:
Investment advisory fees (Note 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 488,636
Directors’ fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,628
Officer fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,427
Administration fees (Note 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62,300
Insurance fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,711
Custody fees (Note 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,985
Delaware franchise tax fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
Audit fees (Note 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,708
Printing and shareholder reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,791
Transfer agency fees (Note 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,798
Miscellaneous expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,003
______________
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,033,987
______________
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,548,098
______________
Realized and Unrealized Gains (Loss) on Investments and Foreign Currency:
Net realized gain (loss) from:
Investments in unaffiliated issuers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,587,205
Investments in affiliated issuers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,230,260)
Foreign currency translations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,110
______________
Total net realized gain from unaffiliated and
affiliated issuers and foreign currency translations . . . . . . . . . . . . . . . . . . . . . 2,386,055
______________
Net change in unrealized appreciation (depreciation) from:
Investments in unaffiliated issuers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,562,672
Investments in affiliated issuers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,205,618
Foreign currency translations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (128,448)
______________
Total net change in unrealized appreciation from unaffiliated and
affiliated issuers, and foreign currency translations . . . . . . . . . . . . . . . . . . . . . 7,639,842
______________
Net Realized and Unrealized Gain on Investments and Foreign Currency . . . 10,025,897
______________
Net Increase in Net Assets from Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,573,995
______________
See Notes to Financial Statements (Unaudited).
21THE SWISS HELVETIA FUND, INC.
Statement of Changes in Net Assets
For the
Six Months Ended For the
June 30, 2021 Year Ended
(Unaudited) December 31, 2020
Increase (Decrease) in Net Assets:
Operations:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,548,098 $ 598,464
Total net realized gain (loss) from unaffiliated and
affiliated issuers and foreign currency translations . . . 2,386,055 (2,132,389)
Total net change in unrealized appreciation from
unaffiliated and affiliated issuers,
and foreign currency translations . . . . . . . . . . . . . . . . . . 7,639,842
______________ 18,557,764
______________
Net increase in net assets from operations . . . . . . . . . . . 11,573,995
______________ 17,023,839
______________
Distributions to Stockholders:
From earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,634,691) (1,066,099)
From return of capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —
______________ (6,332,807)
______________
Total distributions to stockholders . . . . . . . . . . . . . . . . . . . (3,634,691)
______________ (7,398,906)
______________
Capital Stock Transactions:
Value of shares repurchased through
stock repurchase program (Note 6) . . . . . . . . . . . . . . . . . (125)
______________ (449,102)
______________
Total decrease from capital share transactions . . . . . . . . (125)
______________ (449,102)
______________
Total increase in net assets . . . . . . . . . . . . . . . . . . . . . . . . . 7,939,179 9,175,831
Net Assets:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138,039,664
______________ 128,863,833
______________
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $145,978,843
______________
______________ $138,039,664
______________
______________
See Notes to Financial Statements (Unaudited).
22THE SWISS HELVETIA FUND, INC.
Financial Highlights
For the Six
Months Ended
For the Years Ended December 31,
June 30, 2021 _________________________________________________________________
(Unaudited) 2020 2019 2018 2017 2016
Per Share Operating Performance:
Net asset value at the beginning of period . . . $ 10.45
__________ $ 9.71
__________ $__________
7.96 $ 14.10
__________ $__________
11.66 $ 12.30
__________
Income from Investment Operations:
Net investment income1 . . . . . . . . . . . . . . . . . . . 0.12 0.05 0.01 0.14 0.13 0.15
Net realized and unrealized
gain (loss) on investments2 . . . . . . . . . . . . . . . . 0.76
__________ 1.24
__________ 1.88
__________ (1.35)
__________ 2.41
__________ (0.45)
__________
Total from investment activities . . . . . . . . . . . . . 0.88
__________ 1.29
__________ 1.89
__________ (1.21)
__________ 2.54
__________ (0.30)
__________
Gain from capital shares repurchases . . . . . . . . — — — — — 0.02
Gain from tender offer . . . . . . . . . . . . . . . . . . . . . — — — 0.30 0.03 —
Capital change resulting from the issuance
of fund shares . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — (0.12) — (0.03)
Anti-dilutive effect of common share
repurchase program . . . . . . . . . . . . . . . . . . . . . —
__________ 0.01
__________ —
__________ —
__________ —
__________ —
__________
Less Distributions:
Dividends from investment income and
net realized gains from foreign currency
transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.28) (0.08) (0.12) (0.10) (0.13) (0.12)
Distributions from net realized capital gains . . — — (0.02) (5.01) — (0.21)
Return of Capital . . . . . . . . . . . . . . . . . . . . . . . . . . —
__________ (0.48)
__________ —
__________ — __________
__________ — —
__________
Total distributions . . . . . . . . . . . . . . . . . . . . . . . . . (0.28)
__________ (0.56)
__________ (0.14)
__________ (5.11) __________
__________ (0.13) (0.33)
__________
Net asset value at end of period . . . . . . . . . . . . $ 11.05
__________ $ 10.45
__________ $__________
9.71 $ 7.96 $__________
__________ 14.10 $ 11.66
__________
Market value per share at the end of period . . $ 9.73
__________ $ 8.94
__________ $__________
8.41 $ 6.90 $__________
__________ 12.76 $ 10.21
__________
Total Investment Returns:3,4
Based on market value per share . . . . . . . . . . . 12.09% 14.18% 24.00% -10.90% 26.26% -0.24%
Based on net asset value per share . . . . . . . . . . 8.50% 14.29% 23.80% -6.98% 22.17% -2.19%
Ratios to Average Net Assets:5
Net expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.48% 1.80% 2.13% 1.44% 1.40% 1.19%
Gross expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.48% 1.80% 2.13% 1.44% 1.40% 1.19%
Net investment income . . . . . . . . . . . . . . . . . . . . 2.22% 0.48% 0.10% 1.12% 0.98% 1.26%
Supplemental Data and Ratios
Net assets at end of period (000’s) . . . . . . . . . . . $145,979 $138,040 $128,864 $105,577 $356,832 $327,861
Average net assets during the period (000’s) . . $140,570 $125,666 $118,960 $305,270 $350,487 $331,874
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . 6% 12% 18% 21% 9% 19%
1 Calculated using the average shares method.
2 Includes net realized and unrealized currency gains and losses.
3 Total investment return based on market value differs from total investments return based on net asset value due to changes in
the relationship between the market value of the Fund’s shares and its NAV per share.
4 Not annualized for periods less than one year.
5 Annualized for periods less than one year.
See Notes to Financial Statements (Unaudited).
23THE SWISS HELVETIA FUND, INC.
Notes to Financial Statements (Unaudited)
Note 1—Organization and Significant Accounting Policies
A. Organization
The Swiss Helvetia Fund, Inc. (the “Fund”) is registered under the Investment Company Act of 1940,
as amended (the “Act”), as a non-diversified, closed-end management investment company. The
Fund is organized as a corporation under the laws of the State of Delaware.
The investment objective of the Fund is to seek long-term growth of capital through investment in
equity and equity-linked securities of Swiss companies. The Fund may also acquire and hold equity
and equity-linked securities of non-Swiss companies in limited instances.
B. Securities Valuation
The Fund values its investments in accordance with accounting principles generally accepted in the
United States (“GAAP”).
When valuing listed equity securities, the Fund uses the last sale price on the securities exchange or
national securities market on which such securities primarily are traded (the “Primary Market”) prior
to the calculation of the Fund’s net asset value (“NAV”). When valuing equity securities that are not
listed (except privately-held companies and private equity limited partnerships) or that are listed
but have not traded on a day on which the Fund calculates its NAV, the Fund uses the mean
between the bid and asked prices for that day. If there are no asked quotations for such a security,
the value of such security will be the most recent bid quotation on the Primary Market on that day.
On any day when a security’s Primary Market is closed because of a local holiday or other
scheduled closure, but the New York Stock Exchange is open, the Fund may use the prior day’s
closing prices to value such security regardless of the length of the scheduled closing.
When valuing fixed-income securities, if any, the Fund uses the last bid price prior to the calculation
of the Fund’s NAV. If there is no current bid price for a fixed-income security, the value of such
security will be the mean between the last quoted bid and asked prices on that day. Overnight and
certain other short-term fixed-income securities with maturities of less than 60 days will be valued
by the amortized cost method, unless it is determined that the amortized cost method would not
represent the fair value of such security.
It is the responsibility of the Fund’s Board of Directors (the “Board”) to establish procedures to
provide for the fair valuation of the Fund’s portfolio holdings. When valuing securities for which
market quotations are not readily available, or for which the market quotations that are available
are considered unreliable, the Fund determines a fair value in good faith in accordance with these
procedures (a “Fair Value”). The Fund may use these procedures to establish the Fair Value of
securities when, for example, a significant event occurs between the time the market closes and the
time the Fund values its investments. After consideration of various factors, the Fund may value the
securities at their last reported price or at some other value.
Swiss exchange-listed options, if any, including Eurex-listed options, are valued at their most recent
sale price (latest bid for long options and the latest ask for short options) on the Primary Market, or
if there are no such sales, at the average of the most recent bid and asked quotations on such
24THE SWISS HELVETIA FUND, INC.
Notes to Financial Statements (Unaudited) (continued)
Primary Market, or if such quotations are not available, at the last bid quotation (in the case of
purchased options) or the last asked quotation (in the case of written options). If, however, there
are no such quotations, such options will be valued using the implied volatilities observed for
similar options or from aggregated data as an input to a model. Options traded in the over-the-
counter market, if any, are valued at the price communicated by the counterparty to the option,
which typically is the price at which the counterparty would close out the transaction. Option
contracts, if any, that are neither exchange-listed nor traded in the over-the-counter market, and
where no broker can provide a quote or approved pricing vendor a price, may be valued using the
implied volatilities observed for similar instruments or from aggregated market data received from
services (e.g., Bloomberg) as an input to a widely accepted model.
The Fund is permitted to invest in investments that do not have readily available market quotations.
For such investments, the Act requires the Board to determine their Fair Value. The aggregate value
of these investments amounted to $2,484,228, or 1.70% of the Fund’s net assets at June 30, 2021
and are listed in Note 3 to the Schedule of Investments.
Various inputs are used to determine the value of the Fund’s investments. These inputs are
summarized in the three broad levels listed below:
Level 1—unadjusted quoted prices in active markets for identical assets and liabilities
Level 2—other significant observable inputs (including quoted prices of similar securities, interest
rates, prepayment speeds, credit risk, etc.)
Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the
fair value of investments)
The inputs or methodology used for valuing securities are not an indication of the risk associated
with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments as of June 30, 2021:
Level 2 Level 3 Investments
Level 1 Other Significant Significant Valued at
Quoted Prices
____________ Observable Inputs
________________ Unobservable Inputs
__________________ NAV**
___________ Total
_____________
Investments in Securities*
Common Stock $138,773,674 $ — $1,401,408 $ — $140,175,082
Preferred Stock — — 48,767 — 48,767
Limited Partnership — — — 1,034,053 1,034,053
Money Market Deposit Account —
______________ 985,270
__________ —
____________ —
____________ 985,270
______________
Total Investments in Securities $138,773,674
______________ $985,270
__________ $1,450,175
____________ $1,034,053
____________ $142,243,172
______________
______________ __________ ____________ ____________ ______________
* Please see the Schedule of Investments for industry classifications.
** As of June 30, 2021, certain of the Fund’s investments were valued using net asset value (“NAV”) per share (or its equivalent) as a
practical expedient for fair value and have been excluded from the fair value hierarchy in accordance with ASU 2015-07. The fair
value amount presented in this table is intended to permit reconciliation of the amounts presented in the fair value hierarchy to
the amounts presented in the statement of assets and liabilities.
25THE SWISS HELVETIA FUND, INC.
Notes to Financial Statements (Unaudited) (continued)
The Fund values its investment in a private equity limited partnership in accordance with
Accounting Standards Codification 820-10-35, “Investments in Certain Entities that Calculate Net
Asset Value Per Share (Or its Equivalent)” (“ASC 820-10-35”). ASC 820-10-35 permits a reporting
entity to measure the fair value of an investment that does not have a readily determinable fair
value, based on the NAV of the investment as a practical expedient, without further adjustment,
unless it is probable that the investment will be sold at a value significantly different than the NAV.
If the NAV of the investment is not as of the Fund’s measurement date, then the NAV should be
adjusted to reflect any significant events that may change the valuation. Inputs and valuation
techniques for these adjustments may include fair valuations of the partnership and its portfolio
holdings provided by the partnership’s general partner or manager, other available information
about the partnership’s portfolio holdings, values obtained on redemption from other limited
partners, discussions with the partnership’s general partner or manager and/or other limited
partners and comparisons of previously-obtained estimates to the partnership’s audited financial
statements. In using the unadjusted NAV as a practical expedient, certain attributes of the
investment that may impact its fair value are not considered. Attributes of those investments
include the investment strategies of the privately held companies and may also include, but are not
limited to, restrictions on the investor’s ability to redeem its investments at the measurement date
and any unfunded commitments.
Inputs and valuation techniques used by the Fund to value its Level 3 investments in privately-held
companies may include the following: acquisition cost; fundamental analytical data; discounted
cash flow analysis; nature and duration of restrictions on disposition of the investment; public
trading of similar securities of similar issuers; economic outlook and condition of the industry in
which the issuer participates; financial condition of the issuer; and the issuer’s prospects, including
any recent or potential management or capital structure changes. Although these valuation inputs
may be observable in the marketplace as is characteristic of Level 2 investments, the privately-held
companies, categorized as Level 3 investments, generally are highly illiquid in terms of resale.
When valuing Level 3 investments, management also may consider potential events that could
have a material impact on the operations of a privately-held company. Not all of these factors may
be considered or available, and other relevant factors may be considered on an investment-by-
investment basis. The table below summarizes the techniques and unobservable inputs for the
valuation of Level 3 investments.
26THE SWISS HELVETIA FUND, INC.
Notes to Financial Statements (Unaudited) (continued)
Quantitative Information about certain Level 3 Fair Value Measurements
Fair Value at
June 30, 2021 Valuation Technique Unobservable Inputs Range1
Healthcare-Products
EyeSense AG, Series A—Common Shares $ 46,131 Market approach Latest round of financing with 70-90%
an additional discount as a
going concern using a
probability weighted approach
Spineart SA—Common Shares 1,355,277 Market approach Secondary share purchase 15-25%
with an additional discount
for lack of marketability
Industrial Goods & Services
SelFrag AG Class A—Preferred Shares 48,767 Market approach Latest round of financing 40-60%
with an additional discount
as a going concern
Total $1,450,175
1 Significant changes in any of these ranges would result in a significantly higher or lower fair value measurement. A change in the
discount rate is accompanied by a directionally opposite change in fair value.
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were
used to determine fair value.
Common Preferred
Stock
____________ Stock
_____________ Total
____________
Balance as of December 31, 2020 $1,465,458 $ 59,168 $1,524,626
Change in Unrealized Appreciation/Depreciation (a) (64,050) 2,241,741 2,177,691
Net Realized Gain (Loss) 3,881 (2,230,260) (2,226,379)
Gross Purchases — — —
Gross Sales (3,881) (21,882) (25,763)
Transfer out of Level 3 —
____________ —
____________ —
____________
Balance as of June 30, 2021 $1,401,408
____________ $ 48,767
____________ $1,450,175
____________
____________ ____________ ____________
(a) The noted amounts of change in unrealized appreciation/depreciation relate to the fair value of Level 3 assets held on June 30, 2021.
C. Derivative Instruments
GAAP requires enhanced disclosure that enables investors to understand how and why an entity
uses derivatives, how derivatives are accounted for, and how derivative instruments affect an
entity's results of operations and financial position.
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