THE SWISS HELVETIA FUND, INC.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number: 811-05128
The Swiss Helvetia Fund, Inc.
(Exact name of registrant as specified in charter)
7 Bryant Park
New York, NY 10018
(Address of principal executive offices) (Zip code)
Carin F. Muhlbaum
Schroder Investment Management North America Inc.
7 Bryant Park
New York, NY 10018
(Name and Address of Agent for Service)
Registrants telephone number, including area code:
1-800-730-2932
Date of fiscal
year end: December 31
Date of reporting period: July 1, 2018 to September 30, 2018
Item 1. Schedule of Investments.
THE SWISS HELVETIA FUND, INC.
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Schedule of Investments by Industry (Unaudited) |
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September 30, 2018 |
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No. of
Shares |
|
Security |
|
Fair Value |
|
|
Percent of Net Assets |
|
Common Stock 135.55% |
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Automobiles & Components 0.48% |
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5,350 |
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Autoneum Holding AG |
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$ |
1,084,460 |
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0.48 |
% |
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|
Supplies automotive components. The company offers solutions for noise reduction and heat management to increase vehicle comfort, supplies its products to major automotive original
equipment manufacturers worldwide. (Cost $1,357,254) |
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1,084,460 |
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0.48 |
% |
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|
Banks 14.48% |
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43,000 |
|
Cembra Money Bank AG |
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3,909,091 |
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1.74 |
% |
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|
Provides financial services. The companys services include personal loans, vehicle financing, credit cards and savings and insurance services. (Cost $2,577,751) |
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431,317 |
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Credit Suisse Group AG1 |
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6,513,028 |
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2.90 |
% |
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|
A global diversified financial services company with significant activity in private banking, investment banking and asset management. (Cost $5,265,034) |
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No. of
Shares |
|
Security |
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Fair Value |
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|
Percent of Net Assets |
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Banks (continued) |
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108,000 |
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Julius Baer Group Ltd.1
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$ |
5,429,852 |
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2.42 |
% |
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|
Provides private banking services. The company advises on wealth management, financial planning and investments; offers mortgage and other lending, foreign exchange, securities trading,
custody and execution services. (Cost $5,083,039) |
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1,050,000 |
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UBS Group AG1 |
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16,661,548 |
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7.42 |
% |
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|
Provides retail banking, corporate and institutional banking, wealth management, asset management and investment banking. (Cost $15,289,484) |
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32,513,519 |
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14.48 |
% |
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Biotechnology 2.74% |
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91,450 |
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Kuros Biosciences AG1 |
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524,283 |
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0.23 |
% |
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Develops and produces biopharmaceuticals. The company produces vaccines that immunize the patient against disease related proteins. (Cost $904,831) |
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See Notes to Schedule of Investments.
1
THE SWISS HELVETIA FUND, INC.
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Schedule of Investments by Industry (Unaudited) (continued) |
|
September 30, 2018 |
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No. of
Shares |
|
Security |
|
Fair Value |
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|
Percent of Net Assets |
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Common Stock (continued) |
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Biotechnology (continued) |
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3,250 |
|
Lonza Group AG1 |
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$
|
1,114,609 |
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0.50 |
% |
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|
Produces organic fine chemicals, biocides, active ingredients, and biotechnology products. The company operates production sites in China, Europe and the United States. (Cost
$211,379) |
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6,191 |
|
NovImmune SA1,2,3 |
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|
4,510,975 |
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2.01 |
% |
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Discovers and develops therapeutic monoclonal antibodies (mAbs) to treat patients suffering from immune-related disorders. (Cost $3,613,416) |
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6,149,867 |
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2.74 |
% |
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Chemicals 1.21% |
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1,100 |
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Givaudan SA |
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2,717,342 |
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1.21 |
% |
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|
Manufactures and markets fragrances and flavors from natural and synthetic ingredients. The company sells its products to manufacturers of perfumes, beverages, prepared foods, and consumer
goods. The company operates worldwide. (Cost $2,522,372) |
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2,717,342 |
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1.21 |
% |
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No. of
Shares |
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Security |
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Fair Value |
|
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Percent of Net Assets |
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Construction & Materials 5.55% |
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1,100 |
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Belimo Holding AG |
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$
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5,287,162 |
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2.36 |
% |
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|
Market leader in damper and volume control actuators for ventilation and air-conditioning equipment. (Cost $1,822,224) |
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950 |
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Forbo Holding AG |
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1,530,815 |
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0.68 |
% |
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|
Produces floor coverings, adhesives and belts for conveying and power transmission. (Cost $1,195,794) |
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5,700 |
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Geberit AG |
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2,656,265 |
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1.18 |
% |
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Manufactures and supplies water supply pipes and fittings, installation, drainage and flushing systems such as visible cisterns other sanitary
systems for the commercial and residential construction markets. The company sells its products in Germany, Italy, Switzerland, Austria,
the Netherlands, France, and Belgium. (Cost
$2,563,619) |
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See Notes to Schedule of Investments.
2
THE SWISS HELVETIA FUND, INC.
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Schedule of Investments by Industry (Unaudited) (continued) |
|
September 30, 2018 |
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No. of
Shares |
|
Security |
|
Fair Value |
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|
Percent of Net Assets |
|
Common Stock (continued) |
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Construction & Materials (continued) |
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47,000 |
|
Implenia AG |
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$
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2,990,428 |
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1.33 |
% |
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|
Provides construction, civil and underground engineering services. The companys projects include residential and industrial buildings, tunnels, bridges and roads. The company also
provides real estate and facilities management and marketing services. (Cost $2,556,877) |
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12,464,670 |
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5.55 |
% |
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Electric Utilities 0.28% |
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10,000 |
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BKW AG |
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636,773 |
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0.28 |
% |
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|
Provides energy supply services. The company focuses on the production, transportation, trading and sale of energy. In addition to energy supply, the company also develops, implements and
operates energy solutions for its clients. (Cost $583,760) |
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636,773 |
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0.28 |
% |
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No. of
Shares |
|
Security |
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Fair Value |
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Percent of Net Assets |
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Financial Services 1.90% |
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14,300 |
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VZ Holding AG |
|
$
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4,274,775 |
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1.90 |
% |
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|
Provides independent financial advice to private individuals and companies. The company consults on investment, tax and inheritance planning and provides advice regarding insurance
products and coverage. (Cost $2,480,272) |
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4,274,775 |
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1.90 |
% |
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Food & Beverage 27.10%4 |
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203,074 |
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Aryzta AG1 |
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1,941,760 |
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0.87 |
% |
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|
Produces and retails specialty bakery products. The Company produces French breads, pastries, continental breads, confections, artisan breads, homestyle lunches, viennoiserie, patisserie,
cookies, pizza, appetizers, and sweet baked goods. (Cost $6,421,694) |
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105 |
|
Chocoladefabriken Lindt & Spruengli AG |
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8,653,256 |
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3.85 |
% |
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|
Major manufacturer of premium Swiss chocolates. (Cost $366,545) |
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See Notes to Schedule of Investments.
3
THE SWISS HELVETIA FUND, INC.
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Schedule of Investments by Industry (Unaudited) (continued) |
|
September 30, 2018 |
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No. of
Shares |
|
Security |
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Fair Value |
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|
Percent of Net Assets |
|
Common Stock (continued) |
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Food & Beverage (continued) |
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600,000 |
|
Nestlé SA |
|
$
|
50,257,985 |
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22.38 |
% |
|
|
One of the worlds largest food and beverage processing companies. (Cost $14,672,028) |
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60,853,001 |
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27.10 |
% |
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Industrial Engineering 0.62% |
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5,600 |
|
Schindler Holding AG |
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|
1,402,293 |
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|
0.62 |
% |
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|
Manufactures and installs elevators, escalators, and moving walkways internationally. The companys products are used in airports, subway stations, railroad terminals, shopping
centers, cruise ships, hotels, and office buildings. The company also offers maintenance services. (Cost $1,185,236) |
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1,402,293 |
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|
0.62 |
% |
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Industrial Goods & Services 10.09% |
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257,000 |
|
ABB Ltd. |
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6,101,382 |
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2.72 |
% |
|
|
Provides power and automation technologies. The company operates under segments that include power products, power systems, automation products, process automation, and robotics. (Cost
$6,379,912) |
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No. of
Shares |
|
Security |
|
Fair Value |
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|
Percent of Net Assets |
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Industrial Goods & Services (continued) |
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50,000 |
|
Adecco Group AG |
|
$
|
2,638,207 |
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1.18 |
% |
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|
Provides personnel and temporary help, and offers permanent placement services internationally for professionals and specialists in a range of occupations. (Cost $2,854,564) |
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10,500 |
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Burckhardt Compression Holding AG |
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3,669,840 |
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1.63 |
% |
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|
Produces compressors for oil refining and the chemical and petrochemical industries, industrial gases and gas transport and storage. (Cost $2,716,267) |
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54,006 |
|
DKSH Holding AG |
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3,693,285 |
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1.64 |
% |
|
|
An international marketing and services group. The company offers a comprehensive package of services that includes organizing and running the entire value chain for any product. (Cost
$3,470,894) |
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See Notes to Schedule of Investments.
4
THE SWISS HELVETIA FUND, INC.
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|
Schedule of Investments by Industry (Unaudited) (continued) |
|
September 30, 2018 |
|
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No. of
Shares |
|
Security |
|
Fair Value |
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|
Percent of Net Assets |
|
Common Stock (continued) |
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|
Industrial Goods & Services (continued) |
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|
33,300 |
|
Feintool International Holding AG1 |
|
$
|
3,818,182 |
|
|
|
1.70 |
% |
|
|
Manufactures integrated systems for fineblanking and forming technologies. The company produces presses and special tooling capable of manufacturing precision parts, automation systems,
riveting machines and extruded plastic and metal components. (Cost $3,028,046) |
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23,000 |
|
Sensirion Holding AG1 |
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|
1,565,827 |
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|
0.70 |
% |
|
|
The company, through its subsidiaries, manufactures gas and liquid flow sensors for the measurement of humidity and temperature, volatile
organic compounds and carbon dioxide. The company serves automotive, industrial, medical, and consumer goods sectors worldwide. (Cost $907,986) |
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No. of
Shares |
|
Security |
|
Fair Value |
|
|
Percent of Net Assets |
|
|
|
|
|
|
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|
|
Industrial Goods & Services (continued) |
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|
10,000 |
|
SFS Group AG1 |
|
$
|
1,165,029 |
|
|
|
0.52 |
% |
|
|
Provides automotive products, building and electronic components, flat roofing and solar fastening systems. The company operates production facilities in Asia, Europe and North
America. (Cost $636,134) |
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|
22,651,752 |
|
|
|
10.09 |
% |
|
|
Industrial Transportation 0.77% |
|
|
|
|
|
|
|
|
|
90,000 |
|
Ceva Logistics AG1 |
|
|
1,722,973 |
|
|
|
0.77 |
% |
|
|
Provides logistics services. The Company offers freight forwarding, cargo transportation, contract logistics, warehousing, ground transport fleet, and distribution management services. The
company serves automotive, consumer and retail, energy, health care, industrial and aerospace, and technology sectors worldwide. (Cost $2,472,157) |
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|
|
|
|
|
|
|
1,722,973 |
|
|
|
0.77 |
% |
See Notes to Schedule of Investments.
5
THE SWISS HELVETIA FUND, INC.
|
|
|
|
|
Schedule of Investments by Industry (Unaudited) (continued) |
|
September 30, 2018 |
|
|
|
|
|
|
|
|
|
|
|
No. of
Shares |
|
Security |
|
Fair Value |
|
|
Percent of Net Assets |
|
Common Stock (continued) |
|
|
|
|
|
|
|
Insurance 9.93% |
|
|
|
|
|
|
|
|
|
38,000 |
|
Baloise Holding AG |
|
$
|
5,823,710 |
|
|
|
2.60 |
% |
|
|
Offers group and individual life, health, accident, liability property, and transportation insurance to customers in Europe. The Company also offers private banking and asset management
services. (Cost $5,756,222) |
|
|
|
|
|
|
|
|
|
|
|
|
24,892 |
|
Swiss Life Holding AG1 |
|
|
9,479,754 |
|
|
|
4.22 |
% |
|
|
Provides life insurance and institutional investment management. (Cost $6,169,196) |
|
|
|
|
|
|
|
|
|
|
|
|
22,000 |
|
Zurich Insurance Group AG1 |
|
|
6,986,487 |
|
|
|
3.11 |
% |
|
|
Provides insurance-based financial services. The company offers general and life insurance products and services for individuals, small businesses, commercial enterprises, mid-sized and large corporations, and multinational companies. (Cost $7,001,449) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22,289,951 |
|
|
|
9.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
No. of
Shares |
|
Security |
|
Fair Value |
|
|
Percent of Net Assets |
|
|
|
|
|
|
|
|
|
Machinery 1.65% |
|
|
|
|
|
|
|
|
|
293,492 |
|
SIG Combibloc Group AG1 |
|
$
|
3,695,692 |
|
|
|
1.65 |
% |
|
|
The company, through its subsidiaries, manufactures and produces bottling machines and systems for the food and beverage industries. The company serves customers worldwide. (Cost
$3,380,206) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,695,692 |
|
|
|
1.65 |
% |
|
|
Medical Equipment 7.00% |
|
|
|
|
|
|
|
|
|
33,760 |
|
Sonova Holding AG |
|
|
6,749,926 |
|
|
|
3.01 |
% |
|
|
Designs and produces wireless analog and digital in-the-ear and behind-the-ear hearing aids and miniaturized voice communications systems. (Cost $5,244,528) |
|
|
|
|
|
|
|
|
|
|
|
|
3,731 |
|
Spineart SA1,2,3 |
|
|
1,378,919 |
|
|
|
0.61 |
% |
|
|
Designs and markets an innovative full range of spine products, including fusion and motion preservation devices, focusing on easy to implant
high-end products to simplify the surgical act. (Cost $2,623,328) |
|
|
|
|
|
|
|
|
See Notes to Schedule of Investments.
6
THE SWISS HELVETIA FUND, INC.
|
|
|
|
|
Schedule of Investments by Industry (Unaudited) (continued) |
|
September 30, 2018 |
|
|
|
|
|
|
|
|
|
|
|
No. of
Shares |
|
Security |
|
Fair Value |
|
|
Percent of Net Assets |
|
Common Stock (continued) |
|
|
|
|
|
|
|
Medical Equipment (continued) |
|
|
|
|
|
|
|
|
|
31,888 |
|
Tecan Group AG
|
|
$ |
7,580,256 |
|
|
|
3.38 |
% |
|
|
Manufactures and distributes laboratory automation components and systems. The products are mainly used by research and diagnostic laboratories. (Cost $2,916,296) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,709,101 |
|
|
|
7.00 |
% |
|
|
Personal & Household Goods 9.48% |
|
|
|
|
|
|
|
|
|
146,000 |
|
Cie Financiere Richemont SA |
|
|
11,957,412 |
|
|
|
5.32 |
% |
|
|
Manufactures and retails luxury goods. Produces jewelry, watches, leather goods, writing instruments and mens and womens wear. (Cost $9,722,331) |
|
|
|
|
|
|
|
|
|
|
|
|
119,158 |
|
Swatch Group AG - Registered shares |
|
|
9,332,092 |
|
|
|
4.16 |
% |
|
|
Manufactures finished watches, movements and components. Produces components necessary to its various watch brand companies. The company also operates retail boutiques. (Cost
$10,317,182) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,289,504 |
|
|
|
9.48 |
% |
|
|
|
|
|
|
|
|
|
|
|
No. of
Shares |
|
Security |
|
Fair Value |
|
|
Percent of Net Assets |
|
|
|
|
|
|
|
|
|
Pharmaceuticals 37.03%4 |
|
|
|
|
|
|
|
|
|
547,000 |
|
Novartis AG |
|
$
|
47,263,309 |
|
|
|
21.04 |
% |
|
|
One of the leading manufacturers of branded and generic pharmaceutical products. (Cost $13,646,864) |
|
|
|
|
|
|
|
|
|
|
|
|
147,500 |
|
Roche Holding AG |
|
|
35,901,029 |
|
|
|
15.99 |
% |
|
|
Develops and manufactures pharmaceutical and diagnostic products. Produces prescription drugs to treat cardiovascular, infectious and autoimmune diseases and for other areas including
dermatology and oncology. (Cost $10,300,686) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
83,164,338 |
|
|
|
37.03 |
% |
|
|
Technology 3.91% |
|
|
|
|
|
|
|
|
|
113,000 |
|
Airopack Technology Group AG1 |
|
|
1,006,450 |
|
|
|
0.45 |
% |
|
|
Develops and patents packaging solutions. The company has developed a technology for filling liquids, powders, gases and products of average-to-high viscosity (such as gels, creams or foam) into recyclable plastic packaging. (Cost $1,191,827) |
|
|
|
|
|
|
|
|
See Notes to Schedule of Investments.
7
THE SWISS HELVETIA FUND, INC.
|
|
|
|
|
Schedule of Investments by Industry (Unaudited) (continued) |
|
September 30, 2018 |
|
|
|
|
|
|
|
|
|
|
|
No. of
Shares |
|
Security |
|
Fair Value |
|
|
Percent of Net Assets |
|
Common Stock (continued) |
|
|
|
|
|
|
|
Technology (continued) |
|
|
|
|
|
|
|
|
|
173,000 |
|
Logitech International SA |
|
$
|
7,767,997 |
|
|
|
3.46 |
% |
|
|
Engages in the development and marketing of hardware and software products that enable or enhance digital navigation, music and video entertainment, gaming, social networking and audio and
video communication. (Cost $2,265,362) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,774,447 |
|
|
|
3.91 |
% |
|
|
Telecommunications 1.33% |
|
|
|
|
|
|
|
|
|
32,945 |
|
Sunrise Communications Group AG1 |
|
|
2,996,686 |
|
|
|
1.33 |
% |
|
|
Provides a broad range of telecommunications services and equipment. The company offers mobile and wired phone services, broadband internet, cable television services, mobile phones,
tablet computers and related equipment. (Cost $2,207,194) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,996,686 |
|
|
|
1.33 |
% |
|
|
|
|
|
|
Total Common Stock (Cost $175,881,240) |
|
|
304,391,144 |
|
|
|
135.55 |
% |
|
|
|
|
|
|
|
|
|
|
|
No. of
Shares |
|
Security |
|
Fair Value |
|
|
Percent of Net Assets |
|
Preferred Stock 0.13% |
|
|
|
|
|
|
|
Biotechnology 0.02% |
|
|
|
|
|
|
|
|
|
8,400 |
|
Ixodes AG, Series B1,2,3,5 |
|
$
|
49,103 |
|
|
|
0.02 |
% |
|
|
Develops and produces a topical product for the treatment of borreliosis infection and the prevention of Lyme disease from a tick bite. (Cost $2,252,142) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
49,103 |
|
|
|
0.02 |
% |
|
|
Industrial Goods & Services 0.09% |
|
|
|
|
|
|
|
|
|
500,863 |
|
SelFrag AG Class A1,2,3 |
|
|
189,721 |
|
|
|
0.09 |
% |
|
|
Designs, manufactures and sells industrial machines and processes using selective fragmentation technology. (Cost $1,932,198) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
189,721 |
|
|
|
0.09 |
% |
|
|
Medical Equipment 0.02% |
|
|
|
|
|
|
|
|
|
83,611 |
|
EyeSense AG, Series A Preferred1,2,3 |
|
|
43,654 |
|
|
|
0.02 |
% |
|
|
A spin-out from Ciba Vision AG. Develops novel ophthalmic self-diagnostic systems for glucose monitoring of diabetes patients. (Cost
$3,007,048) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
43,654 |
|
|
|
0.02 |
% |
|
|
|
|
|
|
Total Preferred Stock (Cost $7,191,388) |
|
|
282,478 |
|
|
|
0.13 |
% |
See Notes to Schedule of Investments.
8
THE SWISS HELVETIA FUND, INC.
|
|
|
|
|
Schedule of Investments by Industry (Unaudited) (continued) |
|
September 30, 2018 |
|
|
|
|
|
|
|
|
|
|
|
No. of
Shares |
|
Security |
|
Fair Value |
|
|
Percent of Net Assets |
|
Limited Partnership 0.45% |
|
|
|
|
|
|
|
Biotechnology 0.45% |
|
|
|
|
|
|
|
|
|
|
|
Aravis Biotech II, Limited Partnership1,2,3,5 |
|
|
|
|
|
|
|
|
|
|
(Cost $1,810,184) |
|
$
|
1,010,440 |
|
|
|
0.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments* (Cost
$184,882,812) |
|
|
305,684,062 |
|
|
|
136.13 |
% |
|
|
|
|
|
|
Other Assets Less Liabilities# |
|
|
(81,123,244 |
) |
|
|
(36.13 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets |
|
$ |
224,560,818 |
|
|
|
100.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Per Share: |
|
|
|
|
|
|
|
($224,560,818 ÷ 25,313,872 shares outstanding, $0.001 par value: 50 million shares authorized) |
|
|
|
|
|
$ |
8.87 |
|
See Notes to Schedule of Investments.
9
THE SWISS HELVETIA FUND, INC.
|
|
|
|
|
Schedule of Investments by Industry (Unaudited) (continued) |
|
September 30, 2018 |
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
at Fair Value in accordance with the Funds valuation policy and procedures. At the end of the period, the aggregate Fair Value of these securities amounted to $7,182,812 or 3.20% of the Funds 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 Preferred Shares A |
|
July 22, 2010 October 3, 2011 |
|
|
3,007,048 |
|
Ixodes AG Preferred Shares B |
|
April 7, 2011 June 1, 2012 |
|
|
2,252,142 |
|
NovImmune SA Common Shares |
|
October 7, 2009 December 11, 2009 |
|
|
3,613,416 |
|
SelFrag AG Class A Preferred Shares |
|
December 15, 2011 January 28, 2014 |
|
|
1,932,198 |
|
Spineart SA Common Shares |
|
December 22, 2010 |
|
|
2,623,328 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
15,238,316 |
|
|
|
|
|
|
|
|
4 |
|
As of September 30, 2018, the Fund had more than 25% of its total assets invested in Food & Beverage and the Pharmaceuticals industries as a
result of the appreciation of its existing investments and due to the decrease in the Funds assets resulting from its distribution payable October 19, 2018. Due to regulatory restrictions that apply to the Funds investments in a
particular industry, the Fund will not make any additional investments until such time the percentage of the Funds total assets invested in that industry is below 25%. |
5 |
|
Affiliated Company. An affiliated company is a company in which the Fund has ownership of at least 5% of the companys outstanding voting securities or
an equivalent interest in the company. Details related to affiliated company holdings are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name of Issuer
|
|
Fair Value as
of 12/31/17
|
|
|
Gross Additions
|
|
|
Gross Reductions
|
|
|
Realized Gain/(Loss)
|
|
|
Change
in Unrealized Gain/(Loss)
|
|
|
Interest Income
|
|
|
Fair Value as
of 09/30/18
|
|
Aravis Biotech II, Limited Partnership |
|
$ |
1,591,513 |
|
|
$ |
81,343 |
|
|
$ |
(1,081,211 |
) |
|
$ |
61,007 |
|
|
$ |
357,788 |
|
|
$ |
|
|
|
$ |
1,010,440 |
|
Ixodes AG Preferred Shares B |
|
|
68,268 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(19,165 |
) |
|
|
|
|
|
|
49,103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,659,781 |
|
|
$ |
81,343 |
|
|
$ |
(1,081,211 |
) |
|
$ |
61,007 |
|
|
$ |
338,623 |
|
|
$ |
|
|
|
$ |
1,059,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Cost for Federal income tax purposes is $184,973,618 and net unrealized appreciation (depreciation) consists of: |
|
|
|
|
|
Gross Unrealized Appreciation |
|
$ |
137,236,033 |
|
Gross Unrealized Depreciation |
|
|
(16,525,589 |
) |
|
|
|
|
|
Net Unrealized Appreciation (Depreciation) |
|
$ |
120,710,444 |
|
|
|
|
|
|
# |
|
Includes value of distribution paid of $124,291,111 on October 19, 2018. |
See Notes to Schedule of
Investments.
10
THE SWISS HELVETIA FUND, INC.
|
|
|
|
|
Schedule of Investments by Industry (Unaudited) (concluded) |
|
September 30, 2018 |
|
|
|
|
|
PORTFOLIO HOLDINGS |
|
|
|
|
% of Net Assets as of September 30, 2018 |
|
Pharmaceuticals |
|
|
37.03 |
% |
Food & Beverage |
|
|
27.10 |
% |
Banks |
|
|
14.48 |
% |
Industrial Goods & Services |
|
|
10.18 |
% |
Insurance |
|
|
9.93 |
% |
Personal & Household Goods |
|
|
9.48 |
% |
Medical Equipment |
|
|
7.02 |
% |
Construction & Materials |
|
|
5.55 |
% |
Technology |
|
|
3.91 |
% |
Biotechnology |
|
|
3.21 |
% |
Financial Services |
|
|
1.90 |
% |
Machinery |
|
|
1.65 |
% |
Telecommunications |
|
|
1.33 |
% |
Chemicals |
|
|
1.21 |
% |
Industrial Transportation |
|
|
0.77 |
% |
Industrial Engineering |
|
|
0.62 |
% |
Automobiles & Components |
|
|
0.48 |
% |
Electric Utilities |
|
|
0.28 |
% |
Other Assets Less Liabilities |
|
|
(36.13 |
%) |
|
|
|
|
|
|
|
|
100.00 |
% |
|
|
|
|
|
|
|
|
|
|
TOP 10 PORTFOLIO HOLDINGS |
|
% of Net Assets as of September 30, 2018 |
|
|
|
|
Nestlé SA |
|
|
22.38 |
% |
Novartis AG |
|
|
21.04 |
% |
Roche Holding AG |
|
|
15.99 |
% |
UBS Group AG |
|
|
7.42 |
% |
Cie Financiere Richemont SA |
|
|
5.32 |
% |
Swiss Life Holding AG |
|
|
4.22 |
% |
Swatch Group AG Registered shares |
|
|
4.16 |
% |
Chocoladefabriken Lindt & Spruengli AG |
|
|
3.85 |
% |
Logitech International SA |
|
|
3.46 |
% |
Tecan Group AG |
|
|
3.38 |
% |
See Notes to Schedule of Investments.
11
THE SWISS HELVETIA FUND, INC.
Notes to Schedule of Investments (Unaudited)
Note 1Organization 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 at fair value 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 Funds 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 securitys 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 days 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 Funds 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 Funds Board of Directors (the Board) to establish procedures to provide for the valuation of the Funds
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 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
12
THE SWISS HELVETIA FUND, INC.
Notes to Schedule of Investments (Unaudited) (continued)
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 $7,182,812, or 3.20% of the Funds net assets at September 30, 2018, and are listed in
Note 2 to the Schedule of Investments.
Various inputs are used to
determine the value of the Funds investments. These inputs are summarized in the three broad levels listed below:
Level 1unadjusted |
quoted prices in active markets for identical assets and liabilities |
Level 2other |
significant observable inputs (including quoted prices of similar securities, interest rates, prepayment speeds, credit risk, etc.)
|
Level 3significant |
unobservable inputs (including the Funds 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 Funds investments as of September 30, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 1 Quoted Prices
|
|
|
Level 2 Other Significant Observable Inputs
|
|
|
Level 3 Significant Unobservable Inputs
|
|
|
Investments Valued at NAV**
|
|
|
Total
|
|
Investments in Securities* |
|
|
|
|
|
|
|
|
|
Common Stock |
|
$ |
298,501,250 |
|
|
$ |
|
|
|
$ |
5,889,894 |
|
|
$ |
|
|
|
$ |
304,391,144 |
|
Preferred Stock |
|
|
|
|
|
|
|
|
|
|
282,478 |
|
|
|
|
|
|
|
282,478 |
|
Limited Partnership |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,010,440 |
|
|
|
1,010,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments in Securities |
|
$ |
298,501,250 |
|
|
$ |
|
|
|
$ |
6,172,372 |
|
|
$ |
1,010,440 |
|
|
$ |
305,684,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Please see the Schedule of Investments for industry classifications. |
** |
As of September 30, 2018 certain of the Funds 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. |
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
13
THE SWISS HELVETIA FUND, INC.
Notes to Schedule of Investments (Unaudited) (continued)
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 Funds 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 partnerships general partner or manager, other available information about the partnerships portfolio holdings, values obtained on redemption from other limited
partners, discussions with the partnerships general partner or manager and/or other limited partners and comparisons of previously-obtained estimates to the partnerships 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 investors ability to redeem its investments at the measurement date and any unfunded commitments.
Level 3 securities, which are listed in Note 3 to the Schedule of Investments, consist of the Funds investments in privately-held companies.
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 issuers 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.
14
THE SWISS HELVETIA FUND, INC.
Notes to Schedule of Investments (Unaudited) (continued)
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.
|
|
|
|
|
|
|
|
|
|
|
Quantitative Information about certain Level 3
Fair Value Measurements
|
|
|
Fair Value at September 30, 2018 |
|
|
Valuation Technique |
|
Unobservable inputs |
|
Range1 |
Biotechnology |
|
|
|
|
|
|
|
|
|
|
NovImmune SACommon Shares |
|
|
$4,510,975 |
|
|
Market approach |
|
Recent round of financing |
|
N/A |
|
|
|
|
|
|
|
|
|
|
95% |
Ixodes AGPreferred Shares |
|
|
49,103 |
|
|
Discounted cash flow |
|
Discount rate |
|
19% |
|
|
|
|
|
|
|
|
Probability of success rate on research and development |
|
10% |
Industrial Goods & Services |
|
|
|
|
|
|
|
|
|
|
SelFrag AGPreferred Shares |
|
|
189,721 |
|
|
Market approach |
|
Recent round of financing |
|
N/A |
Medical Equipment |
|
|
|
|
|
|
|
|
|
|
EyeSense AGPreferred Shares |
|
|
43,654 |
|
|
Market approach |
|
Recent round of financing |
|
N/A |
Spineart SACommon Shares |
|
|
1,378,919 |
|
|
Market approach |
|
Recent round of financing |
|
N/A |
Total |
|
|
$6,172,372 |
|
|
|
|
|
|
|
1 |
Significant changes in any of these ranges would result in a significantly higher or lower fair value measurement. Generally, a change in the probability of
success rate on research and development is accompanied by a directionally similar change in fair value. Conversely, a change in the discount rate is accompanied by a directionally opposite change in fair value. |
The Funds policy is to disclose transfers between Levels based on their market
prices as of the beginning of the period.
15
THE SWISS HELVETIA FUND, INC.
Notes to Schedule of Investments (Unaudited) (continued)
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to
determine fair value.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock
|
|
|
Preferred Stock
|
|
|
Total
|
|
Balance as of December 31, 2017 |
|
$ |
4,941,039 |
|
|
$ |
328,792 |
|
|
$ |
5,269,831 |
|
Change in Unrealized Appreciation/Depreciation (a) |
|
|
948,855 |
|
|
|
(46,314 |
) |
|
|
902,541 |
|
Net Realized Gain (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
Gross Purchases |
|
|
|
|
|
|
|
|
|
|
|
|
Gross Sales |
|
|
|
|
|
|
|
|
|
|
|
|
Transfer out of Level 3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of September 30, 2018 |
|
$ |
5,889,894 |
|
|
$ |
282,478 |
|
|
$ |
6,172,372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
The noted amounts of change in unrealized appreciation/depreciation relate to the fair value of Level 3 assets held on September 30, 2018.
|
C. Foreign Currency Translation
The Fund maintains its accounting records in U.S. dollars. The Funds assets are invested primarily in Swiss equities. In addition, the Fund
can make its temporary investments in Swiss franc-denominated bank deposits, short-term debt securities and money market instruments. Substantially all income received by the Fund is in Swiss francs. The Funds NAV, however, is reported, and
distributions from the Fund are made, in U.S. dollars, resulting in gain or loss from currency conversions in the ordinary course of business. Historically, the Fund has not entered into transactions designed to reduce currency risk and does not
intend to do so in the future. The cost basis of foreign denominated assets and liabilities is determined on the date that they are first recorded within the Fund and translated to U.S. dollars. These assets and liabilities are subsequently valued
each day at prevailing exchange rates. The difference between the original cost and current value denominated in U.S. dollars is recorded as unrealized foreign currency gain/loss. In valuing securities transactions, the receipt of income and the
payment of expenses, the Fund uses the prevailing exchange rate on the transaction date.
Net realized and unrealized gains and losses on foreign currency shown in the Funds financial statements result from the sale of foreign currencies, from currency gains or losses realized between the trade
and settlement dates of securities transactions, and from the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Funds books and the U.S. dollar equivalent of the amounts actually received or
paid.
When calculating realized and unrealized gains or losses on
investments, the Fund does not separate the gain or loss attributable to changes in the foreign currency price of the security from the gain or loss attributable to the change in the U.S. dollar value of the foreign currency. Other foreign currency
translations resulting in realized and unrealized gain or loss are disclosed separately.
D. Concentration of Market Risk
The Fund primarily invests in securities of Swiss issuers.
Such investments may carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future
16
THE SWISS HELVETIA FUND, INC.
Notes to Schedule of Investments (Unaudited) (concluded)
political and economic developments, unfavorable movements in the Swiss franc relative to the U.S. dollar, and the possible imposition of exchange controls and changes in governmental law and
restrictions. In addition, concentrations of investments in securities of issuers located in a specific region expose the Fund to the economic and government policies of that region and may increase risk compared to a fund whose investments are more
diversified.
Note 2Capital
Commitments
As of September 30, 2018, the Fund maintains an illiquid investment in one private equity limited partnership. This investment
appears in the Funds Schedule of Investments. The Funds capital commitment for this partnership is shown in the table below:
|
|
|
|
|
|
|
|
|
Investments
|
|
Original Capital Commitment*
|
|
|
Unfunded Commitment*
|
|
Private Equity Limited PartnershipInternational (a) |
|
|
|
|
|
|
|
|
Aravis Biotech II, Limited Partnership |
|
$ |
3,327,191 |
|
|
$ |
|
|
* |
The original capital commitment represents 3,250,000 Swiss francs, which has been fully funded as at September 30, 2018. The Swiss franc/U.S.
dollar exchange rate as of September 30, 2018 was used for conversion and equaled 0.9768 as of such date. |
(a) |
This category consists of one private equity limited partnership that invests primarily in venture capital companies in the biotechnology and medical
technology sectors. There is no redemption right for the interest in this limited partnership. Instead, the nature of investments in this category is that distributions are received through the realization of the underlying assets of the limited
partnership. |
Note 3Subsequent Events
On November 20, 2018, pursuant to the Funds previously announced Tender Offer, the Fund accepted for cash purchase 24,638,918 shares of the Funds common stock at a price equal to $7.86 per share, which
represents 98% of the Funds NAV per share of $8.02 as of the close of the regular trading session of the New York Stock Exchange on November 19, 2018. As a result of the purchase of the 24,638,918 shares, the Fund has 13,267,110 shares of
common stock outstanding.
The Fund has been informed that the Funds
Executive Officers and other officers that are employees of Schroder Investment Management North America, Inc., Schroder Investment Management North America Ltd., or their respective affiliates will resign as officers of the Fund on or about
December 31, 2018. The Board is evaluating its options but intends to identify appropriate replacements for required officers, which could result in additional cost to the Fund.
17
THE SWISS HELVETIA FUND, INC.
Automatic Dividend Reinvestment Plan (Unaudited)
Terms and Conditions
Pursuant to this Automatic Dividend Reinvestment Plan (the Plan) of The Swiss Helvetia Fund, Inc. (the Fund), unless a holder (each, a Shareholder) of the Funds shares of
common stock (the Common Shares) otherwise elects, all income dividends, capital gain distributions and returns of capital, if any (collectively referred to herein as dividends), on such Shareholders Common Shares will
be automatically reinvested by American Stock Transfer & Trust Company, as agent for Shareholders in administering the Plan (the Plan Administrator), in additional Common Shares of the Fund. Shareholders who elect not to
participate in the Plan will receive all dividends payable in cash directly to the Shareholder of record (or, if the Common Shares are held in street or other nominee name, then to such nominee) by American Stock Transfer & Trust Company
LLC, as the Dividend Disbursing Agent. Shareholders may elect not to participate in the Plan and to receive all dividends in cash by contacting the Plan Administrator. Enrollment, purchase or sales of shares and other transactions or services
offered by the Plan can be directed to the Plan Administrator through the following:
Telephone
Telephone the Plan Administrator: 1-888-556-0425.
In Writing
You may also write to the Plan Administrator at the following address: American Stock
Transfer & Trust Company, PO Box 922, Wall Street Station, New York, NY 10269-0560. Be sure to include your name, address, daytime phone number, social security or tax I.D. number and a reference to The Swiss Helvetia Fund, Inc. on all
correspondence.
Participation in the Plan is completely voluntary and may be terminated at any time without penalty
by providing notice in writing to the Plan Administrator at least 3 business days prior to any dividend payment date for that dividend to be payable in cash. A request for termination that is received less than 3 business days prior to any dividend
payment date will be processed by the Plan Administrator, but you will have that dividend reinvested in additional Common Shares. However, all subsequent dividends will be payable in cash unless and until you resume participation in the Plan. To
resume participation in the Plan, your request to enroll in the Plan must be received by the record date for that dividend distribution. If received after the record date, your participation in the Plan will begin with the next dividend declaration.
Whenever the Fund declares a dividend, payable either in
Common Shares or in cash, participants in the Plan will receive a number of Common Shares determined in accordance with the following provisions and non-participants in the Plan will receive cash. The Common
Shares will be acquired by the Plan Administrator for the participants accounts, depending upon the circumstances described below, either: (i) through the receipt of additional unissued but authorized Common Shares from the Fund
(newly issued Common Shares) or (ii) by purchase of outstanding Common Shares on the open market (open-market purchases) on the New York Stock Exchange, the primary national securities exchange on which the Common Shares
are traded, or elsewhere.
If, on the payment date for any
dividend, the net asset value (NAV) per Common Share is equal to or less than the market price per Common Share (plus estimated brokerage
18
THE SWISS HELVETIA FUND, INC.
Automatic Dividend Reinvestment Plan (Unaudited) (continued)
trading fees) (such condition being referred to herein as market premium), the Plan Administrator will invest the dividend amount in newly issued Common Shares on behalf of the
participants. The number of newly issued Common Shares to be credited to each participants account will be determined by dividing the dollar amount of the dividend by the NAV per Common Share on the date the Common Shares are issued, provided
that, if the NAV per Common Share is less than or equal to 95% of the then current market price per Common Share on the date of issuance, the dollar amount of the dividend will be divided by 95% of the market price on the date of issuance for
purposes of determining the number of shares issuable under the Plan.
If, on the payment date for any dividend, the NAV per Common Share is greater than the market price of the Common Shares (plus estimated brokerage trading fees) (such condition being referred to herein as
market discount), the Plan Administrator will invest the dividend amount in Common Shares acquired on behalf of the participants in open-market purchases.
In the event of a market discount on the payment date for any dividend,
the Plan Administrator will have until the last business day before the next date on which the Common Shares trade on an ex-dividend basis or in no event more than 30 days after the record date for
such dividend, whichever is sooner (the last purchase date), to invest the dividend amount in Common Shares acquired in open-market purchases. If, before the Plan Administrator has completed its open-market purchases, the market price of
a Common Share exceeds the NAV per Common Share, the average per Common Share purchase price paid by the Plan Administrator may
exceed the NAV of the Common Shares, resulting in the acquisition of fewer Common Shares than if the dividend had been paid in newly issued Common Shares on the dividend payment date. Because of
the foregoing difficulty with respect to open-market purchases, if the Plan Administrator is unable to invest the full dividend amount in open-market purchases during the purchase period or if the market discount shifts to a market premium during
the purchase period, the Plan Administrator may cease making open-market purchases and may invest the uninvested portion of the dividend amount in newly issued Common Shares at the NAV per Common Share at the close of business on the last purchase
date provided that, if the NAV is less than or equal to 95% of the then current market price per Common Share, the dollar amount of the dividend will be divided by 95% of the market price on the date of issuance for purposes of determining the
number of Common Shares issuable under the Plan.
The Plan
Administrator maintains all registered Shareholders accounts in the Plan and furnishes written confirmation of all transactions in the accounts, including information needed by Shareholders for tax records. Common Shares in the account of each
Plan participant generally will be held by the Plan Administrator in non-certificated form in the name of the Plan participant, although the Plan Administrator will issue certificates for whole Common Shares
upon your request. Certificates for fractional Common Shares will not be issued.
In the case of Shareholders such as banks, brokers or nominees that hold Common Shares for others who are the beneficial owners, the Plan Administrator will administer the Plan on the basis of the number of Common
Shares
19
THE SWISS HELVETIA FUND, INC.
Automatic Dividend Reinvestment Plan (Unaudited) (concluded)
certified from time to time by the record Shareholder and held for the account of beneficial owners who participate in the Plan.
There will be no brokerage charges with respect to Common Shares issued directly by the Fund as a result of dividends
payable either in Common Shares or in cash. However, each participant will pay a pro rata share of brokerage trading fees incurred with respect to the Plan Administrators open-market purchases of Common Shares in connection with the
reinvestment of dividends under the Plan.
Participants in
the Plan may sell any or all of their Common Shares in their Plan accounts by contacting the Plan Administrator. The Plan Administrator currently charges $15.00 for the transaction, plus $0.10 per Common Share for this service. Participants also may
withdraw their Common Shares from their Plan accounts and sell those Common Shares through their broker.
Neither the Fund nor the Plan Administrator will provide any advice, make any recommendations, or offer any opinion with respect to whether or not
you should purchase or sell your Common Shares or otherwise participate in the Plan. You must make independent investment decisions based on your own judgment and research. The Common Shares held in Plan accounts are not subject to protection under
the Securities Investor Protection Act of 1970.
Neither the
Fund nor the Plan Administrator will be liable for any good faith act or for any good faith omission to act, including, without limitation, any claim or liability arising out of failure to terminate a participants account upon the
participants death, the
prices at which Common Shares are purchased or sold for a participants account, the times when purchases or sales of Common Shares are made, or fluctuations in the market value of Common
Shares. However, nothing contained in this provision affects a Shareholders right to bring a cause of action based on alleged violations of the federal securities laws.
Voting
Each Shareholder proxy will include those Common Shares purchased or received pursuant to the Plan. The Plan Administrator will forward all proxy solicitation materials to participants and vote proxies for Common
Shares held pursuant to the Plan in accordance with the instructions of the participants.
Taxation
The automatic reinvestment of dividends will not relieve participants of any federal, state
or local income tax that may be payable (or required to be withheld) on such dividends.
Amendments to Plan
The Fund reserves the right to suspend, amend or terminate the Plan at any time.
All Shareholders of record, both participants and non-participants in the Plan, will be notified of any suspension, termination or significant amendment of the Plan. If the Plan is terminated, Common Shares
held in the participants accounts will be distributed to the participants. Any change in the source of purchase of Common Shares under the Plan from open market purchases or direct issuance by the Plan Administrator does not constitute an
amendment to the Plan.
20
THE SWISS HELVETIA FUND, INC.
Directors and Officers
|
|
|
Andrew Dakos Chairman (Non-executive) Richard Dayan1 Director Phillip Goldstein2 Director Moritz Sell3 Director Gerald Hellerman1,4 Director Mark A. Hemenetz President Principal Executive Officer Shanak Patnaik Chief Compliance Officer |
|
Carin F. Muhlbaum Vice President
William P. Sauer Vice President
David J. Marshall Treasurer
Principal Financial Officer
Steven P. Zink Assistant Treasurer
Reid B. Adams Chief Legal Officer
Secretary Angel Lanier
Assistant Secretary |
1 Audit Committee Member 2 Governance/Nominating Committee Chair 3 Audit Committee Chair |
|
4 Pricing
Committee Chair |
Investment Adviser
Schroder Investment Management North America, Inc.
7 Bryant Park
New York, NY 10018-3706
(800) 730-2932
Investment Sub-adviser
Schroder Investment Management
North America Ltd.
1 London Wall Place
London, EC2Y 5AU United Kingdom
Administrator
JPMorgan Chase Bank, N.A.
Custodian
JPMorgan Chase Bank, N.A.
Transfer
Agent
American Stock Transfer & Trust Company
59 Maiden Lane
Plaza Level
New York, NY 10038
(888) 556-0425
Legal Counsel
Sullivan & Cromwell LLP
Independent Registered Public Accounting Firm
Tait,
Weller & Baker LLP
The Investment Adviser
The Swiss Helvetia Fund, Inc. (the Fund) is managed by Schroder Investment
Management North America Inc. (SIMNA Inc.)
SIMNA Inc. is an
investment adviser registered with the U.S. Securities & Exchange Commission (the SEC). It provides asset management products and services to a broad range of clients including Schroder Series Trust and Schroder Global Series
Trust, investment companies registered with the SEC. SIMNA Inc. is part of a global asset management firm with approximately $590.8 billion in assets under management and administration as of September 30, 2018.
Executive Offices
The Swiss Helvetia Fund, Inc.
7 Bryant Park
New York, NY 10018-3706
(800) 730-2932
For inquiries and reports:
(800) 730-2932
email:
swzintermediary@schroders.com
Website Address
www.swzfund.com
The Fund
The Fund is a non-diversified, closed-end investment company whose objective is to seek long-term capital appreciation through investment in equity and equity-linked securities of Swiss
companies. The Fund also may acquire and hold equity and equity-linked securities of non-Swiss companies in limited instances.
The Fund is listed on the New York Stock Exchange under the symbol SWZ.
Net Asset Value is calculated daily by 6:15 P.M. (Eastern Time). The most
recent calculation is available by accessing the Funds website www.swzfund.com. Net Asset Value is also published weekly in Barrons, the Monday edition of The Wall Street Journal and the Sunday edition of The New York
Times.
21
Item 2. Controls and Procedures.
(a) |
The Registrants principal executive officer and principal financial officer have concluded, based on
their evaluation of the Registrants disclosure controls and procedures as conducted within 90 days of the filing date of this report, that those disclosure controls and procedures provide reasonable assurance that the material information
required to be disclosed by the Registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commissions rules and forms. |
(b) |
There have not been any changes in Registrants internal control over financial reporting (as defined in
Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the last fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially
affect, the Registrants internal control over financial reporting. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
The Swiss Helvetia Fund, Inc.
|
By: /s/ Mark A. Hemenetz |
Mark A. Hemenetz |
Principal Executive Officer |
Date: November 28, 2018 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940,
this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
|
By: /s/ Mark A. Hemenetz |
Mark A. Hemenetz |
Principal Executive Officer |
Date: November 28, 2018 |
|
By: /s/ David Marshall |
David Marshall |
Treasurer and Principal Financial Officer |
Date: November 28, 2018 |