0000898531-22-000108.txt : 20220303 0000898531-22-000108.hdr.sgml : 20220303 20220303164435 ACCESSION NUMBER: 0000898531-22-000108 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 16 CONFORMED PERIOD OF REPORT: 20211231 FILED AS OF DATE: 20220303 DATE AS OF CHANGE: 20220303 EFFECTIVENESS DATE: 20220303 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SWISS HELVETIA FUND, INC. CENTRAL INDEX KEY: 0000813623 IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-05128 FILM NUMBER: 22709691 BUSINESS ADDRESS: STREET 1: C/O U.S. BANK GLOBAL FUND SERVICES STREET 2: 615 EAST MICHIGAN STREET CITY: MILWAUKEE STATE: WI ZIP: 53202 BUSINESS PHONE: 8007302932 MAIL ADDRESS: STREET 1: C/O U.S. BANK GLOBAL FUND SERVICES STREET 2: 615 EAST MICHIGAN STREET CITY: MILWAUKEE STATE: WI ZIP: 53202 FORMER COMPANY: FORMER CONFORMED NAME: SWISS HELVETIA FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: HELVETIA FUND INC DATE OF NAME CHANGE: 19900820 N-CSR 1 tshf-ncsra.htm THE SWISS HELVETIA FUND ANNUAL REPORT 12-31-21

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES



811-05128
Investment Company Act file number



The Swiss Helvetia Fund, Inc.
(Exact name of registrant as specified in charter)


c/o U.S. Bank Global Fund Services
615 East Michigan Street
Milwaukee, WI  53202
(Address of principal executive offices) (Zip code)


Andrew Dakos, President and Chief Executive Officer
 c/o U.S. Bank Global Fund Services
615 East Michigan Street
Milwaukee, WI  53202
(Name and address of agent for service)



 1-800-730-2932
Registrant's telephone number, including area code



Date of fiscal year end: December 31, 2021



Date of reporting period:  December 31, 2021




Item 1. Reports to Stockholders.

(a)



 
 
 
 
 
    
 
The Swiss Helvetia Fund, Inc.
Executive Offices
615 East Michigan Street
Milwaukee, WI 53202
(800) 730-2932
 
 
 
 
A Swiss Investments Fund
Annual Report
www.swzfund.com
 
 
For the Year Ended

December 31, 2021


THE SWISS HELVETIA FUND, INC.


Managed Distribution Policy Disclosure
 
In May 2018, The Swiss Helvetia Fund, Inc. (the “Fund”), acting pursuant to an SEC exemptive order and with the approval of the Fund’s Board of Directors (the “Board”), adopted a managed distribution policy. Under that policy, as resumed by the Board and announced in November 2019, the Fund will pay a quarterly distribution stated in terms of a fixed amount of $0.13755 per share of the Fund’s common stock, which equates to an annualized distribution rate of 6.00% based on the Fund’s net asset value of $9.17 as of October 31, 2020. In accordance with the policy, the Fund distributed on March 31, 2021, June 30, 2021 and September 30, 2021, $0.13755 per share to stockholders of record on March 22, 2021, June 21, 2021 and September 21, 2021. Commencing in December 2021, the Fund began making quarterly distributions pursuant to the policy of $0.1665 per share, which equates to an annualized distribution rate of 6.00% based on the Fund's net asset value of $11.10 per share as of October 31, 2021.  In accordance with the policy, the Fund distributed on December 31, 2021, $0.1665 per share to stockholders of record on December 21, 2021.
 
You should not draw any conclusions about the Fund’s investment performance from the amount of the Fund’s distribution or from the terms of the Fund’s managed distribution policy. The Board reviews the Fund’s managed distribution policy periodically and may amend or terminate the managed distribution policy at any time without prior notice to Fund stockholders, which could have an adverse effect on the market price of the Fund’s shares.
 
With each distribution, the Fund will issue a notice to stockholders and a press release which will provide detailed information regarding the amount and composition of the distribution and other related information. The amounts and sources of distributions reported in the notice to stockholders are only estimates, are likely to change over time, and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099- DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. Please refer to “Federal Income Tax and Investment Transactions” under Note 5 of the Notes to Financial Statements for information  regarding the tax character of the Fund’s distributions. A copy of the Fund’s Section 19(a) notices is available on the Fund’s website at www.swzfund.com.
 
The Fund’s total return in relation to changes in net asset value is presented in the Financial Highlights.
1

THE SWISS HELVETIA FUND, INC.
Dear Stockholder,
 
We are pleased to provide you with the Annual Report for The Swiss Helvetia Fund, Inc. (the “Fund”) covering the twelve-month period ended December 31, 2021.
 
The year 2021 brought with it a continuation of strong global equity market performance following the pandemic driven volatility of 2020.  Both the Fund’s net asset value and market price advanced in 2021 and the discount to net asset value generally hovered in the low double digits.  The Fund’s management and Board of Directors continuously monitors the Fund’s net asset value performance and market price.
 
Management and the Board also monitors the Fund’s trading discount to net asset value and is sensitive to any material increase in the discount  In December 2020, the Board approved a stock repurchase plan of up to 250,000 shares of common stock for 2021. No shares were repurchased in 2021. The Board has approved a repurchase plan for up to 250,000 shares of common stock for 2022 in the event the discount widens.
 
At the Fund’s Annual Meeting of Stockholders held on September 14, 2021, stockholders re-elected Richard Dayan, Phillip F. Goldstein, Gerald Hellerman, Moritz A. Sell, and me as Directors and ratified Tait, Weller & Baker, LLP as the Fund’s independent registered public accounting firm for the year ending December 31, 2021.
 
On December 10, 2021, the Fund’s Board of Directors approved a quarterly distribution of $0.1665 per share, which equates to an annualized rate of 6.00% based upon the Fund’s net asset value of $11.10 as of October 31, 2021.
 
Detailed comments regarding the Swiss economy and market environment follow in the accompanying Management Discussion and Analysis.
 
On behalf of the Board, I thank you for your investment in the Fund.
 
Sincerely yours,

 
Andrew Dakos
Chairman
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THE SWISS HELVETIA FUND, INC.


Management Discussion and Analysis (as of December 31, 2021)
 
For the twelve-month period ended December 31, 2021, the performance of The Swiss Helvetia Fund, Inc. (the “Fund”), as measured by the change in value in the Fund’s net asset value (“NAV”), increased by 16.09% in US dollars (“USD”). For the same period, the Fund’s share price performance increased 18.25% in USD. This compares with an increase of 19.15% in the Swiss Performance Index (the “Index” or the “SPI”) in USD.
 
Economic environment during the period under review
 
Global economic review
The economic and earnings rebound that started in 2020 carried over into 2021, in part due to the widespread deployment of Covid-19 vaccines. After a surge in activity in the first half of 2021, the world economy ran into difficulties in the second half. Bottlenecks in supply chains meant that delivery times soared and some firms had to cut production due to a lack of parts. As a result, global growth ran slightly below its potential while inflation rose sharply, with wage rate increases exceeding expectations.
 
The impact of these bottlenecks was apparent in the retail sector. While revenues rose sharply, this was primarily a reflection of higher inflation. In nominal terms sales have continued to forge ahead and are well ahead of above pre-pandemic levels. Faced with restricted supply and higher costs, retailers have raised prices, passing those costs off to the consumer. Although consumers bought less, overall revenues continued to rise – an outcome which could be seen in the buoyant Q3 earnings season for the retail sector. When combined with tight labor markets, it should not be surprising that central banks are looking to tighten policy. Higher inflation reflects an imbalance between restricted supply and strong demand and, whilst central banks cannot affect the issues with restricted supply, they can restore balance by addressing the strength of demand through tighter monetary policy.
 
The International Monetary Fund now expects that the world gross domestic product grew 5.9 percent in 2021 and will grow 4.9 percent in 2022. In Switzerland, the State Secretariat of Economic Affairs has adjusted growth expectations from 3.6% to 3.2% for 2022.
 
We believe that the policy of central banks will play an important role in shaping activity in 2022. The massive fiscal stimulus in response to the pandemic is already winding down in the US and UK with the ending of enhanced benefits, one-off payments and absence schemes. Temporary cuts in indirect taxes have been reversed in the UK and in parts of the eurozone. Although we expect government spending will remain strong,
3

THE SWISS HELVETIA FUND, INC.


we also expect overall fiscal policy will be less supportive in 2022.
 
Market environment during the period under review
 
2021 was a strong year for global equities. Stocks prices continued to climb, further supported by solid earnings, robust economic activity and unprecedented monetary and fiscal stimulus. Nevertheless, the year was not without uncertainties as the overheated economy created demand-supply imbalances in many sectors such as semiconductors, food and energy, which jeopardized margins at the end of the year in some sectors and industries. Inflationary pressures have prompted central banks to evaluate their accommodative stances, shifting their focus away from supporting growth and toward fighting inflation. Furthermore, the emergence of two Covid-19 mutations, Delta and Omicron, have also threatened the economic reopening in 2021. China’s economic slowdown and contagion effect related to its property market was also a source of concern.
 
Worldwide equities measured by the MSCI World Index returned 22.4% for the year 2021 in USD terms. The MSCI World Index ended the year on a high note increasing by 7.9% in Q4, as a strong earnings season coupled with a relatively stable interest rate environment supported performance.
 
Investors have poured almost $900 billion into equity exchange-traded and long-only funds in 2021, exceeding the combined total inflows from the prior two decades. As a result, volatility during the year was lower compared to 2020.
 
Looking at European continent, the MSCI Europe Index returned 25.8% (in EUR, although the weakening of the currency has translated into a 17.2% USD return). Within the region, major indexes had overall good returns: Italy’s FTSE MIB returned 26.8%, UK’s FTSE 100 returned 18.4%, Spain’s IBEX 35 returned 10.7%, and Germany’s Dax Index returned 15.8, all in local currencies.
 
Swiss equities, as measured by the  SPI, rose 23.4% in 2021 (in CHF, which translated into a 19.2% USD return).
 
Within Switzerland, small & mid cap stocks, represented by the SPI Extra Index (the “SPIEX”), increased by 22.2% and underperformed the large cap segment represented by the Swiss Market Index Total Return (the “SMIC”), by -1.5%.
 
From a sector perspective, media showed the strongest performance in 2021 and increased by 51.5%, followed by consumer products and services (increased by 47.7%), industrial goods & services (increased by 25.2%) and food & beverages (increased by 23.8%) (in USD).
4

THE SWISS HELVETIA FUND, INC.

Swiss Performance Index for the year 2021

Source: Schroders, Explore, as of December 31, 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
 
The Fund’s NAV return of 16.09% in USD was behind of the Index’s return for the period under review.
 
In terms of style, Swiss “growth” stocks outperformed their “value” counterparts in 2021.  The MSCI Switzerland Growth Index significantly outperformed its value counterpart by 19.5%. Thus, the value bias applied for the Fund negatively impacted performance during the period. Additionally, Swiss large cap companies outperformed small and mid-cap companies, and as a result the Fund’s bias towards small and mid-cap companies
5

THE SWISS HELVETIA FUND, INC.


negatively impacted performance as the SMIC outperformed the SPIEX by 1.5%.
 
In terms of stock picking, the biggest detractor from relative performance came from the Fund’s lack of holdings and underweights in larger companies, including Givaudan, Kuehne & Nagel, Lindt & Spruengli, Lonza, Sika and Straumann. Additional detractors included overweights in SoftwareOne, Logitech, ams and Oerlikon. On the other hand, stock picking within the small & mid cap segment had a positive impact on relative performance including overweights in Swissquote, Belimo, Sulzer, Swiss Life, Sulzer, Tecan and Medacta. Also positive was our overweight in Richemont and underweights in Holcim and Adecco.
 
The Fund’s cash positions also detracted from relative performance.
 
The Fund’s private equity positions as a whole experienced only a small change in valuation thus underperforming in a strongly rising market.
 
Portfolio changes
 
In total, there were 18 purchases and 22 sales of listed equities on a net basis in 2021. As of December 31, 2021, there were 42 listed companies held by the Fund and 4 direct private equity investments, including one participation in a private equity limited partnership.
6

THE SWISS HELVETIA FUND, INC.


New Investments by the Fund
Arytza
Comet
Daetwyler
Oerlikon
Polypeptide
Skan
VAT


Additions to Existing Investments
ams
Credit Suisse
Lonza
Medacta
Nestlé
SIG Combibloc
Sika
Softwareone
Swissquote
UBS
Zurich Insurance


Positions Entirely Disposed of
DKSH Holding
Galenica
Medmix
Sensirion
Stadler Rail
Sulzer
Swiss Re
Ixodes


Reductions in Existing Investments
ABB
Baloise
BKW
Cembra
Forbo
Geberit
Helvetia
Julius Baer
Logitech
Novartis
Partners Group
Richemont
SFS Group
Swatch
Swiss Life
7

THE SWISS HELVETIA FUND, INC.


The Fund established new positions in Arytza, Comet, Daetwyler, Oerlikon, Polypeptide, Skan and VAT.
 
Aryzta is a supplier to food service operators and produces a variety of baked goods and breads. We believe that Aryzta’s sale of its North American business will allow it to focus on and improve the quality of its balance sheet. Its core business product offerings appears strong, and we believe that its new CEO can lead the firm back into profitable growth.
 
Comet is a technology company focused on core technologies of radio frequency and x-ray, which produces components and systems for the semiconductor industry. Its products are widely used in the fabrication of high-performance microchips and electronic devices as well as for testing parts for the automotive, aerospace and security industries.. As such, we believe the company is a solid choice to obtain semiconductors exposure, which we see as having a positive outlook.
 
VAT Group presents a similar opportunity to obtain semiconductors exposure, as it is a global developer, manufacturer and supplier of vacuum valves used in the manufacturing processes of semiconductors, LED, solar cells, displays and other high vacuum demanding products.
 
Daetwyler is a global organization with three divisions: SwissTec (production of high-precision MDC doctor blades), Rotoflex (inks and lacquers for food, non-food and security) and Industries (high-precision machine construction and customized special projects).  We believe Daetwyler has shown progress by  transforming from a conglomerate into a more focused business model.
 
Oerlikon is a market leader in advanced materials manufacturing, surface engineering and polymer processing. Since its peak in 2018, it has underperformed the market and its industry peers. The company has tackled internal issues with the arrival of a new CFO and we expect a recovery in its end market.
 
In April 2021, the Fund participated in the IPO of Polypeptide, which is a contract development and manufacturing organization focusing on proprietary and generic Good Manufacturing Practice (“GMP”)-grade peptides used by pharmaceutical and biotech companies. Today, the company manufactures around one half of all currently approved peptide drugs, which we believe is an important and fast growing ingredient in the value chain in pharma and biotechnology with above average growth potential.
8

THE SWISS HELVETIA FUND, INC.


The Fund also participated in the IPO of Skan in October 2021. Skan is a global leader in isolators, cleanroom equipment and decontamination processes for the aseptic production of biopharmaceuticals. We have a positive view of the track record under the current CEO.
 
The Fund increased its positions in companies that we believe became undervalued due to market movements that did not reflect their positive outlooks (for example, SIG Combibloc and SoftwareOne). To reduce the Fund’s growth underweight, the Fund also increased its positions in growth stocks, like Sika and Lonza, which corrected significantly at the end of September.
 
Positions entirely sold were DKSH, Galenica, Medmix, Sensirion, Stadler Rail, Sulzer, Swiss Re and Ixodes.
 
The Fund disposed of its position in DKSH for risk management reasons. The company has a high exposure to countries in South East Asia, which had a difficult period during the Covid pandemic. Stadler Rail is on a rapid growth path, but we believe it has poor operating ratios and is facing higher project risks due to the risk of delivery bottlenecks. The Fund also exited its positions in Swiss Re as earnings and dividend risk had increased due to the natural catastrophes in 2021. The Fund sold positions where we believe a fair valuation was reached, such as Galenica, Sensirion, Sulzer and Medmix, a spin-off from Sulzer, which was received in 2021. The Fund also took the opportunity to exit Ixodes, one of the Fund’s private equity position.
 
Outlook and Investment View
 
While the global supply chain has started to gradually improve, we still expect some companies’ earnings to be negatively impacted in Q4 2021 and at the beginning of 2022. In addition, Omicron related restrictions are expected to slow down economic growth in the short term.
 
In the first half of 2022, we expect the world economy to re-accelerate as easing supply chain problems support global industries where orders remain buoyant. Looking further out into 2022, however, we again see the risk of a slowing growth rate as the massive policy stimulus in response to the pandemic fades. While we anticipate that there will be some support from consumer and corporate spending, we project overall demand to ebb.
 
This recovery that started in H2 2020 has differed from past recoveries and supply shortages have rapidly emerged. The accelerated recovery has introduced unanticipated problems in supply chains and labour markets, pushing inflation and wage rates higher than expected. The recovery has been driven by the goods sector, creating extraordinary pressure on supply chains and commodity prices. It
9

THE SWISS HELVETIA FUND, INC.


took 4½ years to reach this level of retail sales volumes after the global financial crisis ended in 2009; this time it has only taken 1½ years.
 
Our global inflation forecasts have been raised to 3.4% for 2021 and 3.8% in 2022, increases of 0.3 pp and 1.0 pp respectively. Compared to our previous forecast, the increase reflects higher energy costs (following the increase in oil and gas spot and futures prices) and higher core rates as bottlenecks have persisted for longer than originally anticipated. The tightening in labour markets has also been greater than expected and wages have risen higher as a result. The rise in prices is proving less transitory and more durable than was expected only a few months ago. Nonetheless, we still see global inflation moderating in the second half of [2022] and our forecast for 2023 is for 2.7%. An easing in supply chain pressures and commodity prices are the main drivers for this forecast.
 
Chart 1: Schroders Eurozone inflation forecast
 

Source: Eurostat, Refinitiv, Schroders Economics Group, 26 November 2021.
10

THE SWISS HELVETIA FUND, INC.


The principal risk to our above baseline forecast is that the world economy remains constrained by shortages of labor and components for a longer period than anticipated. We would see this as being driven by higher wage growth feeding through into costs and prices. Inflation could turn out to be higher than in our baseline scenario whilst growth could be weaker – a stagflationary outcome. In addition, further increasing energy prices cannot be ruled out, which could also have a stagflationary impact on the world economy.
 
For equity markets, our baseline scenario remains positive as the economic recovery should allow for earnings growth. However, volatility can be expected to stay at elevated levels. Inflation concerns, policy changes by central banks and fading fiscal stimuli will have to be digested by market participants – a process which already began in summer 2021. The current picture also strongly confirms our view that the regime of ultra-low interest rates will likely come to an end. In the course of 2021, sector and style leadership has changed several times. We expect this to continue and ultimately the expensive growth segment will correct relative to others as markets adapt to the new environment. While we do not expect this style rotation to happen in one go, we believe that the Fund’s portfolio with its focus on quality, valuation and sustainability, is well positioned to weather this evolution.
11

THE SWISS HELVETIA FUND, INC.


Performance at a glance (unaudited)
 
Average annual total returns for the Fund’s common stock for the periods ended 12/31/2021
 
Net asset value returns
1 year
5 years
10 years
The Swiss Helvetia Fund, Inc.
16.09%
13.30%
10.53%
       
Market price returns
     
The Swiss Helvetia Fund, Inc.
18.25%
13.50%
10.80%
       
Index returns
     
Swiss Performance Index
19.15%
15.31%
12.18%
       
Share price as of 12/31/2021
     
Net asset value
   
$11.50
Market price
   
$  9.94

Past performance does not predict future performance. The return and value of an investment will fluctuate so that an investor’s share, when sold, may be worth more or less than their original cost. The Fund’s common stock net asset value (“NAV”) return assumes, for illustration only, that dividends and other distributions, if any, were reinvested at the NAV on the ex-dividend date. The Fund’s common stock market price returns assume that all dividends and other distributions, if any, were reinvested at the lower of the NAV or the closing market price on the ex-dividend date. NAV and market price returns for the period of less than one year have not been annualized. Returns do not reflect the deduction of taxes that a stockholder could pay on Fund dividends and other distributions, if any, or the sale of Fund shares.
 
The Swiss Performance Index (SPI) is considered Switzerland's overall stock market index. It comprises practically all of the SIX Swiss Exchange-traded equity securities of companies that are domiciled in Switzerland or the Principality of Liechtenstein. You cannot invest directly in an index.
12

THE SWISS HELVETIA FUND, INC.
Schedule of Investments by Industry
December 31, 2021

             
Percent
 
No. of
           
of Net
 
Shares
 
Security
 
Value
   
Assets
 
Common Stock — 97.96%
 
   
Banks — 4.26%
 
                       
 
5,876
 
Cembra Money Bank AG
 
$
428,536
     
0.28
%
     
Provides financial services.
               
     
The company’s services
               
     
include personal loans,
               
     
vehicle financing, credit
               
     
cards and savings and
               
     
insurance services.
               
     
(Cost $349,254)
               
                       
 
221,000
 
Credit Suisse Group AG
   
2,151,909
     
1.42
%
     
A global diversified financial
               
     
services company with
               
     
significant activity in
               
     
private banking,
               
     
investment banking and
               
     
asset management.
               
     
(Cost $2,744,282)
               
                       
 
216,000
 
UBS Group AG
   
3,892,575
     
2.56
%
     
Provides retail banking,
               
     
corporate and institutional
               
     
banking, wealth management,
               
     
asset management and
               
     
investment banking.
               
     
(Cost $2,958,201)
               
           
6,473,020
     
4.26
%
Biotechnology — 1.96%
 
                       
 
36,000
 
Idorsia Ltd.1
   
736,476
     
0.48
%
     
Researches, develops,
               
     
and manufactures
               
     
pharmaceutical, biological,
               
     
and diagnostic products.
               
     
(Cost $1,027,734)
               
                       
 
2,000
 
Lonza Group AG
   
1,671,733
     
1.10
%
     
Produces organic fine
               
     
chemicals, biocides, active
               
     
ingredients, and
               
     
biotechnology products.
               
     
(Cost $1,298,193)
               
                       
 
3,788
 
PolyPeptide Group AG1
   
569,562
     
0.38
%
     
Operates as a biotechnology
               
     
company. The Company
               
     
focuses on producing
               
     
proprietary and generic
               
     
GMP grade peptides for
               
     
the pharmaceutical and
               
     
biotechnology industry.
               
     
(Cost $266,102)
               
           
2,977,771
     
1.96
%
Building Materials — 3.38%
 
                       
 
600
 
Forbo Holding AG
   
1,231,411
     
0.81
%
     
Produces floor coverings,
               
     
adhesives and belts for
               
     
conveying and power
               
     
transmission.
               
     
(Cost $952,577)
               
                       
 
2,100
 
Geberit AG
   
1,717,522
     
1.13
%
     
Manufactures and supplies
               
     
water supply pipes and
               
     
fittings, installation, and
               
     
drainage and flushing
               
     
systems such as visible
               
     
cisterns other sanitary
               
     
systems for the commercial
               
     
and residential
               
     
construction markets.
               
     
(Cost $1,000,204)
               
                       
 
5,250
 
Sika AG
   
2,190,693
     
1.44
%
     
Manufactures construction
               
     
materials, producing
               
     
concrete and mixtures,
               
     
mortar, sealants and
               
     
adhesives, tooling resins,
               
     
anti-static industrial flooring,
               
     
and acoustic materials. The
               
     
company serves customers
               
     
worldwide.
               
     
(Cost $877,312)
               
           
5,139,626
     
3.38
%

See Notes to Financial Statements.
13

THE SWISS HELVETIA FUND, INC.
Schedule of Investments by Industry
December 31, 2021
(continued)

             
Percent
 
No. of
           
of Net
 
Shares
 
Security
 
Value
   
Assets
 
Common Stock — (continued)
 
   
Commercial Services — 0.49%
 
                       
 
221
 
SGS SA
 
$
739,052
     
0.49
%
     
Provides industrial
               
     
inspection, analysis, testing,
               
     
and verification services.
               
     
(Cost $553,249)
               
           
739,052
     
0.49
%
                 
Computers — 3.65%
               
                       
 
49,100
 
Logitech International SA
   
4,142,905
     
2.73
%
     
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 $1,393,543)
               
                       
 
64,811
 
SoftwareONE Holding AG
   
1,405,548
     
0.92
%
     
Provides IT services. The
               
     
Company offers cloud
               
     
computing, portfolio
               
     
management, procurement,
               
     
unified communication,
               
     
and other related solutions.
               
     
(Cost $1,405,296)
               
           
5,548,453
     
3.65
%
   
Diversified Financial Services — 4.50%
 
                       
 
31,835
 
Julius Baer Group Ltd.
   
2,137,590
     
1.40
%
     
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 $1,344,842)
               
                       
 
14,830
 
Swissquote Group
               
     
Holding SA
   
3,263,365
     
2.15
%
     
Through its subsidiaries,
               
     
offers online financial services.
               
     
The company operates an
               
     
online trading system which
               
     
offers customers real-time
               
     
securities quotes on the
               
     
Swiss Stock Exchange.
               
     
(Cost $1,800,897)
               
                       
 
13,408
 
VZ Holding AG
   
1,439,173
     
0.95
%
     
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 $438,472)
               
           
6,840,128
     
4.50
%
               
Electric — 0.98%
             
                       
 
11,464
 
BKW AG
   
1,492,213
     
0.98
%
     
Provides energy supply
               
     
services. The company
               
     
focuses on the production,
               
     
and transportation, trading
               
     
sale of energy. In addition
               
     
to energy supply, the
               
     
company also develops,
               
     
implements and operates
               
     
energy solutions for
               
     
its clients.
               
     
(Cost $680,715)
               
           
1,492,213
     
0.98
%
                       

See Notes to Financial Statements.
14

THE SWISS HELVETIA FUND, INC.
Schedule of Investments by Industry
December 31, 2021
(continued)

             
Percent
 
No. of
           
of Net
 
Shares
  Security  
Value
   
Assets
 
Common Stock — (continued)
   
Electronic Components & Equipment — 2.93%
 
                 
 
96,000
 
ABB Ltd.
 
$
3,677,111
     
2.42
%
     
Provides power and
               
     
automation technologies.
               
     
The company operates
               
     
under segments that
               
     
include power products,
               
     
power systems,
               
     
automation products,
               
     
process automation,
               
     
and robotics.
               
     
(Cost $2,239,882)
               
                       
 
2,108
 
Comet Holding AG
   
778,513
     
0.51
%
     
Develops, produces, and
               
     
distributes components
               
     
and systems for x-ray tubes,
               
     
 vacuum condensers, and
               
     
radio frequency, as well
               
     
as other medical products.
               
     
(Cost $743,323)
               
           
4,455,624
     
2.93
%
   
Food — 19.63%
 
                       
 
806,000
 
Aryzta AG1
   
1,009,325
     
0.66
%
     
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 $1,108,977)
               
                       
 
206,000
 
Nestle SA
   
28,812,643
     
18.97
%
     
One of the world’s largest
               
     
food and beverage
               
     
processing companies.
               
     
(Cost $14,003,625)
               
           
29,821,968
     
19.63
%
                       
Hand/Machine Tools — 0.81%
 
                       
 
4,550
 
Schindler Holding AG
   
1,225,951
     
0.81
%
     
Manufactures and installs
               
     
elevators, escalators, and
               
     
moving walkways
               
     
internationally. The
               
     
company’s products are
               
     
used in airports, subway
               
     
stations, railroad terminals,
               
     
shopping centers, cruise
               
     
ships, hotels, and office
               
     
buildings. The company
               
     
also offers maintenance
               
     
services.
               
     
(Cost $977,749)
               
           
1,225,951
     
0.81
%
                       
Healthcare-Products — 6.00%
 
                       
 
10,200
 
Alcon, Inc.
   
903,856
     
0.59
%
     
Manufactures eye care
               
     
products. The company
               
     
produces and markets
               
     
vitreoretinal and cataract
               
     
surgery, contact lenses,
               
     
and refractive technology
               
     
products.
               
     
(Cost $667,799)
               
                       
 
125,416
 
Eyesense AG, Series A1,2,3
   
46,800
     
0.03
%
     
A spin-out from Ciba Vision
               
     
AG. Develops novel
               
     
ophthalmic self- diagnostic
               
     
systems for glucose
               
     
monitoring of
               
     
diabetes patients.
               
     
(Cost $3,007,048)
               
                       

See Notes to Financial Statements.
15

THE SWISS HELVETIA FUND, INC.
Schedule of Investments by Industry
December 31, 2021
(continued)

             
Percent
 
No. of
           
of Net
 
Shares
 
Security
 
Value
   
Assets
 
Common Stock — (continued)
 
   
Healthcare-Products — (continued)
 
                       
 
3,618
 
Medacta Group SA1
 
$
563,854
     
0.37
%
     
Produces and distributes
               
     
medical devices. The
               
     
company develops,
               
     
manufactures, and
               
     
distributes orthopedic
               
     
and neurosurgical
               
     
medical devices.
               
     
(Cost $358,119)
               
                       
 
7,111
 
SKAN Group AG
   
691,472
     
0.46
%
     
Provides health care
               
     
supplies. The Company
               
     
offers isolators, cleanroom
               
     
devices, and decontamination
               
     
processes for the aseptic
               
     
production of the
               
     
biopharmaceutical products.
               
     
(Cost $550,502)
               
                       
 
5,486
 
Sonova Holding AG
   
2,154,300
     
1.42
%
     
Designs and produces
               
     
wireless analog and digital
               
     
in-the-ear and behind-the-ear
               
     
hearing aids and
               
     
miniaturized voice
               
     
communications systems.
               
     
(Cost $846,271)
               
                       
 
221,085
 
Spineart SA1,2,3
   
1,526,230
     
1.00
%
     
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 $1,554,486)
               
                       
 
5,295
 
Tecan Group AG
 

3,228,198
     
2.13
%
     
Manufactures and
               
     
distributes laboratory
               
     
automation components
               
     
and systems. The products
               
     
are mainly used by
               
     
research and
               
     
diagnostic laboratories.
               
     
(Cost $486,487)
               
           
9,114,710
     
6.00
%
Industrials — 3.95%
 
                       
 
2,900
 
Belimo Holding AG
   
1,846,019
     
1.22
%
     
Manufactures heating,
               
     
ventilation and air
               
     
conditioning equipment.
               
     
(Cost $344,115)
               
                       
 
1,900
 
Daetwyler Holding AG
   
838,281
     
0.55
%
     
Manufactures rubber
               
     
components and sealing
               
     
solutions for the automotive,
               
     
pharmaceutical and
               
     
civil engineering industries.
               
     
(Cost $686,154)
               
                       
 
209,811
 
OC Oerlikon Corp. AG
   
2,156,484
     
1.42
%
     
Manufactures industrial
               
     
equipment. The Company
               
     
produces protective
               
     
coatings for precision tools
               
     
and components,
               
     
equipment for textile
               
     
production, and propulsion
               
     
technology drive systems.
               
     
(Cost $2,338,708)
               
                       

See Notes to Financial Statements.
16

THE SWISS HELVETIA FUND, INC.
Schedule of Investments by Industry
December 31, 2021
(continued)

        
Percent
       
No. of
     
of Net
       
Shares
 
Security
 
Value
   
Assets
 
Common Stock — (continued)
 
   
Industrials — (continued)
 
                       
 
2,320
 
VAT Group AG
 
$
1,157,008
     
0.76
%
     
Developer, manufacturer
               
     
and supplier of vacuum
               
     
valves, multi-valve modules
               
     
and edge-welded bellows
               
     
for use in semiconductor,
               
     
display and solar panel
               
     
manufacturing.
               
     
(Cost $932,787)
               
           
5,997,792
     
3.95
%
   
Insurance — 7.79%
 
                       
 
10,537
 
Baloise Holding AG
   
1,724,268
     
1.14
%
     
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 $1,626,589)
               
                       
 
9,100
 
Helvetia Holding AG
   
1,072,644
     
0.71
%
     
Provides a broad range of
               
     
life, casualty, liability,
               
     
accident and transportation
               
     
insurance in Switzerland and
               
     
in other European countries.
               
     
The Company insures
               
     
individuals, property such
               
     
as vehicles and buildings,
               
     
and consumer goods and
               
     
personal belongings
               
     
(Cost $801,083)
               
                       
 
4,344
 
Swiss Life Holding AG
   
2,665,089
     
1.75
%
     
Provides life insurance
               
     
and institutional
               
     
investment management.
               
     
(Cost $1,189,471)
               
                       
 
14,500
 
Zurich Insurance
               
     
Group AG
 

6,371,948
     
4.19
%
     
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 $4,874,010)
               
           
11,833,949
     
7.79
%
   
Metal Fabricate/Hardware — 1.16%
 
                       
 
12,700
 
SFS Group AG
   
1,759,030
     
1.16
%
     
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 $846,209)
               
           
1,759,030
     
1.16
%
   
Packaging & Containers — 2.42%
 
                       
 
131,300
 
SIG Combibloc Group AG
   
3,668,878
     
2.42
%
     
The company, through its
               
     
subsidiaries, manufactures
               
     
and produces bottling
               
     
machines and systems for
               
     
the food and beverage
               
     
industries. The company
               
     
serves customers worldwide.
               
     
(Cost $1,687,309)
               
           
3,668,878
     
2.42
%
                       

See Notes to Financial Statements.
17

THE SWISS HELVETIA FUND, INC.
Schedule of Investments by Industry
December 31, 2021
(continued)

             
Percent
 
No. of
           
of Net
 
Shares
 
Security
 
Value
   
Assets
 
Common Stock — (continued)
 
   
Pharmaceuticals — 24.23%
 
   
 
182,000
 
Novartis AG
 
$
16,035,735
     
10.56
%
     
One of the leading
               
     
manufacturers of
               
     
branded and generic
               
     
pharmaceutical products.
               
     
(Cost $10,237,492)
               
                       
 
49,901
 
Roche Holding AG
   
20,762,190
     
13.67
%
     
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 $9,346,153)
               
           
36,797,925
     
24.23
%
   
Private Equity — 2.10%
 
   
 
1,920
 
Partners Group
               
     
Holding AG
   
3,187,181
     
2.10
%
     
A global private markets
               
     
investment management
               
     
firm with investment
               
     
programs under
               
     
management in private
               
     
equity, private real estate,
               
     
private infrastructure
               
     
and private debt. The firm
               
     
manages a broad range of
               
     
customized portfolios for
               
     
an international clientele of
               
     
institutional investors.
               
     
Partners Group is
               
     
headquartered in Zug,
               
     
Switzerland.
               
     
(Cost $1,437,381)
               
           
3,187,181
     
2.10
%
                       
Retail — 6.46%
 
   
 
49,660
 
Cie Financiere
               
     
Richemont SA
 

7,464,124
     
4.91
%
     
Manufactures and retails
               
     
luxury goods. Produces
               
     
jewelry, watches, leather
               
     
goods, writing instruments
               
     
and men’s and
               
     
women’s wear.
               
     
(Cost $3,786,046)
               
                       
 
40,159
 
Swatch Group AG -
               
     
Registered Shares
   
2,355,813
     
1.55
%
     
Manufactures finished
               
     
watches, movements and
               
     
components. Produces
               
     
components necessary
               
     
to its various watch brand
               
     
companies. The company
               
     
also operates retail boutiques.
               
     
(Cost $3,306,724)
               
           
9,819,937
     
6.46
%
   
Semiconductors — 1.26%
 
   
 
105,000
 
AMS AG1
   
1,912,391
     
1.26
%
     
Designs and manufactures
               
     
advanced sensor solutions.
               
     
The company also delivers
               
     
a broad range of technology
               
     
solutions for consumer
               
     
electronics and
               
     
communication device
               
     
manufactures.
               
     
(Cost $1,780,070)
               
           
1,912,391
     
1.26
%
     
Total Common Stock
               
     
(Cost $90,855,442)
   
148,805,599
     
97.96
%
                       

See Notes to Financial Statements.
18

THE SWISS HELVETIA FUND, INC.
Schedule of Investments by Industry
December 31, 2021
(continued)

             
Percent
 
No. of
           
of Net
 
Shares
 
Security
 
Value
   
Assets
 
Preferred Stock — 0.03%
 
   
Industrial Goods & Services — 0.03%
 
                       
 
500,863
 
SelFrag AG Class A1,2,3
 
$
49,473
     
0.03
%
     
Designs, manufactures
               
     
and sells industrial
               
     
machines and processes
               
     
using selective
               
     
fragmentation technology.
               
     
(Cost $1,932,198)
               
           
49,473
     
0.03
%
     
Total Preferred Stock
               
     
(Cost $1,932,198)
   
49,473
     
0.03
%
                       
Limited Partnership — 0.67%
 
   
Biotechnology — 0.67%
 
                       
 
3,294,705
 
Aravis Biotech II, Limited
               
     
Partnership1,3,4
   
1,024,517
     
0.67
%
     
Makes early stage venture
               
     
investments in the
               
     
biotechnology &
               
     
pharmaceuticals industry.
               
     
(Cost $1,810,184)
               
           
1,024,517
     
0.67
%
     
Total Limited Partnership
               
     
(Cost $1,810,184)
   
1,024,517
     
0.67
%
                       
                       
   
Short-Term Investment — 0.19%
 
                       
 
281,928
 
U.S. Bank Money
               
     
Market Deposit
               
     
Account, 0.003%5
 

281,928
     
0.19
%
     
(Cost $281,928)
               
     
   
281,928
      0.19 %
     
Total Short-Term
               
     
Investment
               
     
(Cost $281,928)
   
281,928
     
0.19
%
                       
     
Total Investments
               
     
(Cost $94,879,752)
   
150,161,517
     
98.85
%
                       
     
Other Assets
               
     
Less Liabilities
   
1,750,757
     
1.15
%
     
Net Assets
 
$
151,912,274
     
100.00
%
                       
     
Net Asset Value Per Share:
               
     
($151,912,274 ÷13,212,254
               
     
shares outstanding,
               
     
$0.001 par value: 50 million
               
     
shares authorized)
         
$
11.50
 


See Notes to Financial Statements.
19

THE SWISS HELVETIA FUND, INC.
Schedule of Investments by Industry
December 31, 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 at Fair Value 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 $2,647,020 or 1.74% 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
   
1,554,486
 
      
$
8,303,916
 

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
   
12/31/21
 
Aravis Biotech II,
 
  Limited Partnership
 
$
1,072,405
   
$
   
$
   
$
   
$
(47,888
)
 
$
   
$
1,024,517
 
Ixodes AG – Preferred
                                                       
  Shares B
   
8,172
     
     
(21,882
)
   
(2,230,260
)
   
2,243,970
     
     
 
   
$
1,080,577
   
$
   
$
(21,882
)
 
$
(2,230,260
)
 
$
2,196,082
   
$
   
$
1,024,517
 

5
Rate shown is the seven day annualized yield as of December 31, 2021.

 

See Notes to Financial Statements.
20

THE SWISS HELVETIA FUND, INC.
Schedule of Investments by Industry (Unaudited) December 31, 2021
(concluded)

PORTFOLIO HOLDINGS
     
% of Net Assets as of December 31, 2021
     
Industry:
     
    Pharmaceuticals
   
24.23
%
    Food
   
19.63
%
    Insurance
   
7.79
%
    Retail
   
6.46
%
    Healthcare-Products
   
6.00
%
    Diversified Financial Services
   
4.50
%
    Banks
   
4.26
%
    Industrials
   
3.95
%
    Computers
   
3.65
%
    Building Materials
   
3.38
%
    Electronic Components & Equipment
   
2.93
%
    Biotechnology
   
2.63
%
    Packaging & Containers
   
2.42
%
    Private Equity
   
2.10
%
    Semiconductors
   
1.26
%
    Metal Fabricate/Hardware
   
1.16
%
    Electric
   
0.98
%
    Hand/Machine Tools
   
0.81
%
    Commercial Services
   
0.49
%
    Short-Term Investment
   
0.19
%
    Industrial Goods & Services
   
0.03
%
Other Assets Less Liabilities
   
1.15
%
     
100.00
%

TOP 10 PORTFOLIO HOLDINGS
     
% of Net Assets as of December 31, 2021
     
Nestlé SA
   
18.97
%
Roche Holding AG
   
13.67
%
Novartis AG
   
10.56
%
Cie Financiere Richemont SA
   
4.91
%
Zurich Insurance Group AG
   
4.19
%
Logitech International SA
   
2.73
%
UBS Group AG
   
2.56
%
ABB Ltd.
   
2.42
%
SIG Combibloc Group AG
   
2.42
%
Swissquote Group Holding SA
   
2.15
%



See Notes to Financial Statements.
21

THE SWISS HELVETIA FUND, INC.
Statement of Assets and Liabilities
December 31, 2021



Assets:
     
Investments in unaffiliated issuers, at value (cost $93,069,568)
 
$
149,137,000
 
Investments in affiliated issuers, at value (cost $1,810,184)
   
1,024,517
 
Total Investments, at value (cost $94,879,752)
   
150,161,517
 
Foreign currency (cost $767,739)
   
807,367
 
Tax reclaims receivable
   
1,284,017
 
Prepaid expenses
   
16,993
 
Total assets
   
152,269,894
 
         
Liabilities:
       
Accrued:
       
 Investment advisory fees
   
95,411
 
Audit fees
   
55,998
 
Legal fees
   
44,515
 
Custody fees
   
15,546
 
Directors’ fees and expenses
   
74,949
 
Other expenses
   
71,201