Company: SWZ
Filing Date: 2025-03-11
Form Type: N-CSR
Source: 0001839882-25-014961
Chunk: 7

Company: Total Return Securities Fund
Filing Date: 2025-03-11
Form: N-CSR
Chunk 7
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 more aggressive than anticipated, potentially mired in stagflation for the US economy and pushing the rest of the world towards recession. Such developments could exacerbate macroeconomic divergences even further. Regarding Swiss equities, two concerns arise:

| 1. | The potential impact of trade duties on exports to the US |
| 2. | The development of the Swiss franc.                       |

7 THE SWISS HELVETIA FUND, INC.

| 1. | US Trade Duties |

The companies in the Fund’s portfolio derive approximately 27% of their revenue from the US, making it the most important market. Switzerland ranks as the second most important market and accounts for about 8% of revenue exposure. The composition of the Fund’s portfolio revenue exposure is illustrated in the following chart. The percentage represents the US revenue contribution to the Fund’s overall portfolio, while the colours indicate each company’s revenue share in the US. As an example, Roche, one of the larger companies in the Fund’s portfolio, has a relatively high percentage of its total revenue from the US and accounts for one fifth, i.e., 5.8%, of the 27% of the Fund’s total revenue derived from the US. The purple colour indicates that between 40 to 50% of Roche’srevenue comes from the US. US Exposure Breakdown by Security Source: Schroders, Holdings as at 11 December 2024. Although a 27% revenue share from the US may seem relatively high, much of this revenue is generated locally within the US rather than being imported.

| 2. | Swiss Franc: Stable Development in Real Terms |

In nominal terms, the Swiss franc has consistently appreciated against other currencies. However, its development in real terms has remained stable over time. *According to the SNB, the trade-weighted Swiss franc index in real terms has been stable since 2012. We believe this stability implies that the significant nominal appreciation of approximately 40% over this period is largely attributable to differences in inflation levels. Consequently, we believe Swiss exporters are not disproportionately disadvantaged, as lower inflation in Switzerland offsets the effects of nominal appreciation, resulting in a neutral impact on export-oriented companies. 8 THE SWISS HELVETIA FUND, INC. Trade weighted currency index – real, CPI-based vs. nominal Source: Swiss National Bank, December 2011=100, 31 December 2024. In summary, we believe the outlook for Swiss equities remains positive and neither potential US