# EDGAR Filing Document

**Accession Number:** 0000019780
**File Stem:** 0000894189-23-001833
**Filing Date:** 2023-3
**Character Count:** 93778
**Document Hash:** 26046364fd65cccbedb6d9d408a1de58
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000894189-23-001833.hdr.sgml**: 20230306

**ACCESSION NUMBER**: 0000894189-23-001833

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 8

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230306

**DATE AS OF CHANGE**: 20230306

**EFFECTIVENESS DATE**: 20230306

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CHESTNUT STREET EXCHANGE FUND
- **CENTRAL INDEX KEY:** 0000019780
- **IRS NUMBER:** 510199471
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-02631
- **FILM NUMBER:** 23708304

**BUSINESS ADDRESS:**
- **STREET 1:** 233 WILMINGTON WEST CHESTER PIKE
- **STREET 2:** SUITE 216
- **CITY:** CHADDS FORD
- **STATE:** PA
- **ZIP:** 19137
- **BUSINESS PHONE:** 3027922555

**MAIL ADDRESS:**
- **STREET 1:** 233 WILMINGTON WEST CHESTER PIKE
- **STREET 2:** SUITE 216
- **CITY:** CHADDS FORD
- **STATE:** PA
- **ZIP:** 19137

## Series and Classes Contracts Data

### CHESTNUT STREET EXCHANGE FUND (Series ID: S000001110)

| Class ID   | Class Name                    | Ticker Symbol   |
|:---|:---|:---|
| C000003005 | CHESTNUT STREET EXCHANGE FUND | CHNTX           |

------

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

### FORM N-CSR

### CERTIFIED SHAREHOLDER REPORT OF REGISTERED

### MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number **<u>811-02631</u>**

**<u>Chestnut Street Exchange Fund</u>**<br> (Exact name of registrant as specified in charter)

#### 223 Wilmington West Chester Pike
**<u>Chadds Ford, PA 19137</u>**<br> (Address of principal executive offices) (Zip code)

#### Frederick C. Teufel, Jr.

#### Chestnut Street Exchange Fund

#### 223 Wilmington West Chester Pike
**<u>Chadds Ford, PA 19137</u>**<br> (Name and address of agent for service)

#### 1-866-311-7541
Registrant's telephone number, including area code

Date of fiscal year end: **<u>December 31</u>**

Date of reporting period: **<u>December 31, 2022</u>**

------

#### Item 1. Reports to Stockholders.

(a) <br>

**CHESTNUT STREET EXCHANGE FUND**

**(A California Limited Partnership)**

**(Unaudited)**

February 17, 2023

Fellow Partner:

Enclosed is the Annual Report of Chestnut Street Exchange Fund for the year ended December 31, 2022.

Our Fund earned $13.65 per share of net investment income for a share outstanding throughout 2022, compared to $10.66 per share earned in 2021. Dividend income was decreased by $84,035 from the same period in 2021. Expenses were decreased in 2022.

After providing for the December 2022 distribution, the net asset value per partnership share at December 31, 2022 was $863.50. The net asset value at September 30, 2022, the date of our last report, was $764.70.

Commentary on market conditions and a comparison of our Fund's performance to the S&P<sup>®</sup> 500 Index and the Dow Jones Industrial Average<sup>TM</sup> Index will be found in the accompanying Investment Adviser's Report.

Your comments or questions concerning Chestnut Street Exchange Fund are welcomed.

---

| |
|:---|
| Yours sincerely, |
| ![](chestnutncsr001.jpg) |
| David R. Wilmerding, Jr. |

---

------

**CHESTNUT STREET EXCHANGE FUND** 

**(A California Limited Partnership)**

**INVESTMENT ADVISER'S REPORT**

**(Unaudited)**

**Portfolio Review**

**Summary**

U.S. equity markets declined sharply during 2022, resulting in a return of the S&P 500<sup>®</sup> Index ("S&P 500") of -18.11% for the year. Growth stocks, as measured by the S&P 500<sup>®</sup> Growth Index, returned -29.41%, while value stocks, as measured by the S&P 500<sup>®</sup> Value Index, returned -5.25%. Small company stocks, as measured by the Russell 2000 Index, returned -20.46%, and global stocks, as represented by the MSCI World Stock Index, produced a -17.71% return in 2022.

During the year, inflation was higher than at any time in the past 40 years, a major power started a war in Europe for the first time in nearly 80 years, and U.S. consumers and businesses grappled with an extraordinary degree of uncertainty.

Based on the information above, an investor could assume the U.S. economy was suffering and unemployment was significant. Surprisingly, this was far from the truth. GDP growth is expected to be weak but at least slightly positive for the year ended December 31, 2022, while unemployment has remained near the low end of its historic range.

Stock market declines in 2022 had more to do with investors' appetite for risk. Stockholders reevaluated their willingness to assign high valuations to many companies in the face of economic and corporate earnings growth that was declining to more normalized levels from the excesses of 2021.

**Performance Attribution**

The portfolio returned -14.34% during the year, outperforming its benchmark index, the S&P 500, which returned -18.11% during the same period.

The Fund saw individual stock outperformance in the consumer discretionary, consumer staples, energy, information technology, and materials sectors. Both Exxon Mobil Corporation and Schlumberger Ltd. outperformed in the energy sector, which was the best performing sector in the S&P 500 in 2022 due to the rise in oil and gas prices. In the materials sector, Air Products and Chemicals Incorporated, currently the largest weighting in the Fund, as well as Cabot Corporation, both significantly outperformed their sector and the broader market. The Fund also benefitted from a lack of exposure to the real estate sector as well as low exposure to the consumer discretionary sector, two areas that underperformed the broader market in 2022.

Underperformance during the year primarily came from stock selection in the financial and industrial sectors. Moody's Corporation underperformed the financial sector and broader market as the significant increase in interest rates led to a sharp decrease in debt issuance from municipalities and corporations. In the industrial sector, the stock of 3M Company declined throughout the year due to concerns over potential significant liabilities from ongoing litigation regarding PFAS chemicals and military earplugs.

During the year, the Fund fully redeemed one holding, Wabtec Corporation, and received one new holding, Neogen Corporation.

------

**CHESTNUT STREET EXCHANGE FUND**

**(A California Limited Partnership)**

**INVESTMENT ADVISER'S REPORT (Continued)** 

**(Unaudited)**

**Portfolio Review (concluded)**

**Outlook**

We believe that the year 2022 could be best considered a repricing of the market. Earnings for companies in the S&P 500 over the past 12 months were roughly in line with the prior 12-month period. However, stock performance was broadly lower, as investors were unwilling to pay as high a price for corporate earnings as they were in 2021. As a result, heading into 2023, we believe that the U.S. stock market could be considered more fairly valued based on individual company earnings than it has been in some time. Those earnings will no doubt be heavily affected by inflation, the Federal Reserve's response to inflation, consumer spending, and the fear of a recession throughout the coming year.

Many economists and market prognosticators have taken the expected slowdown in economic growth as a clear sign that a recession is looming at some point in 2023. While we would absolutely agree that a recession is possible every year, we would note that a return closer to trend line growth and normalized unemployment in 2023 does not necessarily imply a deep recession or that any recession is imminent. However, it is clear that as long as the Federal Reserve continues with its hawkish monetary policies, a return to the high growth rates and high stock valuations of 2021 seems unrealistic in the near term.

*Any opinions expressed are those of Mitchell Sinkler & Starr, Inc. as of the date of this report and are subject to change based on changes in market or economic conditions. The performance data represents past performance and the principal value and investment return will fluctuate so that an investor's shares, when redeemed may be worth more or less than their original cost. Past performance is not a guarantee of future results. Please call 1-866-311-7541 for the most recent month-end performance. In addition, the data does not reflect the deduction of taxes that a shareholder would pay on distributions or redemption of Fund shares. There is no guarantee that forecasts made herein will come to pass. The comments should not be construed as a recommendation for any individual holdings or market sectors. Information and opinions are derived from proprietary and non-proprietary sources deemed by Mitchell Sinkler & Starr, Inc. to be reliable. We cannot guarantee the accuracy of such information, assure its completeness, or warrant that such information will not be changed without notice. Reliance upon information in this report is at the sole discretion of the reader.*

------

**CHESTNUT STREET EXCHANGE FUND**

**(A California Limited Partnership)**

**PERFORMANCE COMPARISON**

**December 31, 2022**

**(Unaudited)**

**Comparison of Change in Value of $10,000 Investment in Chestnut Street**

**Exchange Fund<sup>(1)</sup> vs. S&P 500<sup>®</sup> Index and Dow Jones Industrial Average<sup>TM</sup> Index<sup>(2)</sup>**

![](chestnutncsr002.jpg)

The performance data represents past performance and the principal value and investment return will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results. Current performance may be higher or lower than the return shown. Please call (866) 311-7541 for the most recent month-end performance.

The performance quoted reflects fee waivers in effect and would have been lower in their absence. In addition, the data does not reflect the deduction of taxes that a shareholder would pay on distributions or redemption of Fund shares.

**For the Periods Ended December 31, 2022**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Average Annual Total Returns** | **Average Annual Total Returns** | **Average Annual Total Returns** | **Average Annual Total Returns** |
|  | <br>**1 Year** | <br>**5 Year** | <br>**10 Year** | **Since**<br>**Inception<sup>(3)</sup>** |
| Chestnut Street Exchange Fund | -14.34% | 6.64% | 10.13% | 10.63% |
| S&P 500<sup>®</sup> Index | -18.11% | 9.42% | 12.56% | 11.11% |
| Dow Jones Industrial Average<sup>TM</sup> Index | &nbsp;&nbsp;&nbsp;&nbsp;-6.86% | 8.38% | 12.30% | 11.10% |

---

(1) The chart assumes hypothetical $10,000 initial investment in the Fund made on December 31, 2012 and reflects Fund expenses. Investors should note that the Fund is a
 managed fund while the indices are unmanaged, do not incur expenses and are not available for investment. The Fund's gross expense ratio for the fiscal year ended December 31, 2022 was 0.47%.

(2) Results of index performance are presented for general comparative purposes.

(3) Cumulative since inception total returns were 10,333.46%, 12,644.97% and 12,574.44% for the Chestnut Street Exchange Fund, the S&P 500<sup>®</sup>Index and the Dow Jones Industrial Average™ Index, respectively, for the period December 29, 1976 (inception date of the Fund) to December 31, 2022.

------

**CHESTNUT STREET EXCHANGE FUND**

**(A California Limited Partnership)**

**FUND EXPENSE EXAMPLE**

**(Unaudited)**

As a shareholder of the Fund, you incur ongoing costs, including management fees and other Fund expenses. The example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period from July 1, 2022 through December 31, 2022, and held for the entire period.

**Actual Expenses**

The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled ''Expenses Paid During Six Months Ended December 31, 2022'' to estimate the expenses you paid on your account during this period.

**Hypothetical Example for Comparison Purposes**

The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not your Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the accompanying table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second line of the accompanying table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

---

| | | | |
|:---|:---|:---|:---|
|  | **Beginning**<br> **Account Value**<br> **July 1, 2022** | **Ending**<br> **Account Value**<br> **December 31, 2022** | **Expenses**<br> **Paid During**<br> **Six Months Ended**<br> **December 31, 2022\*** |
| Actual | $1000.00 | $1052.70 | $2.17 |
| Hypothetical† |  |  |  |
| &nbsp;&nbsp;&nbsp;(5% return before expenses) | $1000.00 | $1023.09 | $2.14 |

---

\* Expenses are equal to the Fund's annualized six-month expense ratio of 0.42%, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (184), then divided by 365 to reflect the one-half year period. The Fund's ending account value on the first line of the table is based on the actual total return of 5.27% for the six-month period ended December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;† Hypothetical expenses are based on the Fund's actual annualized six-month expense ratio and an assumed rate of return of 5% per year
 before expenses.

------

**CHESTNUT STREET EXCHANGE FUND**

**(A California Limited Partnership)**

**PORTFOLIO HOLDINGS SUMMARY TABLE** 

**December 31, 2022**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| <br>**Security Type/Industry** | **% of Net**<br>**Assets** |<br>**Value** |
| **COMMON STOCK** |  |  |
| &nbsp;&nbsp;&nbsp;Software & Services | 10.3% | $16612899 |
| &nbsp;&nbsp;&nbsp;Materials | 10.1% | 16350673 |
| &nbsp;&nbsp;&nbsp;Pharmaceuticals & Biotechnology | 9.4% | 15181819 |
| &nbsp;&nbsp;&nbsp;Media & Entertainment | 9.3% | 15095261 |
| &nbsp;&nbsp;&nbsp;Banks | 8.9% | 14475215 |
| &nbsp;&nbsp;&nbsp;Transportation | 6.9% | 11161278 |
| &nbsp;&nbsp;&nbsp;Diversified Financials | 6.7% | 10922183 |
| &nbsp;&nbsp;&nbsp;Capital Goods | 6.6% | 10720917 |
| &nbsp;&nbsp;&nbsp;Health Care Equipment & Services | 6.3% | 10125187 |
| &nbsp;&nbsp;&nbsp;Energy | 5.2% | 8355695 |
| &nbsp;&nbsp;&nbsp;Food, Beverage & Tobacco | 5.0% | 8059891 |
| &nbsp;&nbsp;&nbsp;Technology, Hardware & Equipment | 4.8% | 7886757 |
| &nbsp;&nbsp;&nbsp;Retailing | 4.1% | 6578153 |
| &nbsp;&nbsp;&nbsp;Semiconductors | 2.6% | 4173878 |
| &nbsp;&nbsp;&nbsp;Food & Staples Retailing | 1.3% | 2119902 |
| &nbsp;&nbsp;&nbsp;Consumer Durables & Apparel | 1.3% | 2022752 |
| Other Assets in Excess of Liabilities | 1.2% | 1975041 |
| Net Assets | 100.0% | $161817501 |

---

------

**CHESTNUT STREET EXCHANGE FUND**

**(A California Limited Partnership)**

**SCHEDULE OF INVESTMENTS** 

**December 31, 2022**

---

| | | |
|:---|:---|:---|
|  | Shares | Value |
| **COMMON STOCKS: 98.8%** |  |  |
| **BANKS: 8.9%** |  |  |
| Bank of America Corp. | 39255 | $1300126 |
| JPMorgan Chase & Co. | 81275 | 10898978 |
| Wells Fargo & Co. | 55125 | 2276111 |
|  |  | 14475215 |
| **CAPITAL GOODS: 6.6%** |  |  |
| 3M Co. | 18556 | 2225236 |
| Emerson Electric Co. | 80229 | 7706798 |
| General Electric Co. | 9415 | 788883 |
|  |  | 10720917 |
| **CONSUMER DURABLES & APPAREL: 1.3%** |  |  |
| NIKE, Inc. | 17287 | 2022752 |
|  |  | 2022752 |
| **DIVERSIFIED FINANCIALS: 6.7%** |  |  |
| Moody's Corp. | 39201 | 10922183 |
|  |  | 10922183 |
| **ENERGY: 5.2%** |  |  |
| Exxon Mobil Corp. | 47783 | 5270465 |
| Schlumberger Ltd. ^ | 57711 | 3085230 |
|  |  | 8355695 |
| **FOOD & STAPLES RETAILING: 1.3%** |  |  |
| Walmart, Inc. | 14951 | 2119902 |
|  |  | 2119902 |
| **FOOD, BEVERAGE & TOBACCO: 5.0%** |  |  |
| Altria Group, Inc. | 12580 | 575032 |
| Kraft Heinz Co. | 2941 | 119728 |
| Mondelez International, Inc. | 8737 | 582321 |
| PepsiCo, Inc. | 30497 | 5509588 |
| Philip Morris International, Inc. | 12580 | 1273222 |
|  |  | 8059891 |
| **HEALTH CARE EQUIPMENT & SERVICES: 6.3%** |  |  |
| Abbott Laboratories | 91560 | 10052372 |
| Neogen Corp. \* | 4781 | 72815 |
|  |  | 10125187 |
| **MATERIALS: 10.1%** |  |  |
| Air Products and Chemicals, Inc. | 39993 | 12328242 |
| Cabot Corp. | 60180 | 4022431 |
|  |  | 16350673 |
| **MEDIA & ENTERTAINMENT: 9.3%** |  |  |
| Alphabet, Inc. Class A\* | 42416 | 3742364 |
| Comcast Corp. Class A | 154346 | 5397480 |
| Paramount Global, Inc. Class B | 41580 | 701870 |
| Walt Disney Co. \* | 60469 | 5253547 |
|  |  | 15095261 |
| **PHARMACEUTICALS & BIOTECHNOLOGY: 9.4%** |  |  |
| Johnson & Johnson | 47126 | 8324808 |
| Merck & Co., Inc. | 60285 | 6688621 |
| Organon & Co. | 6029 | 168390 |
|  |  | 15181819 |
| **RETAILING: 4.1%** |  |  |
| Amazon.com, Inc.\* | 16666 | 1399944 |
| Home Depot, Inc. | 16394 | 5178209 |
|  |  | 6578153 |

---

*See Accompanying Notes to Financial Statements.*

------

**CHESTNUT STREET EXCHANGE FUND**

**(A California Limited Partnership)**

**SCHEDULE OF INVESTMENTS (Continued)**

**December 31, 2022**

---

| | | |
|:---|:---|:---|
|  | Shares | Value |
| **SEMICONDUCTORS: 2.6%** |  |  |
| Intel Corp. | 157922 | $4173878 |
|  |  | 4173878 |
| **SOFTWARE & SERVICES: 10.3%** |  |  |
| Check Point Software Technologies Ltd. \*^ | 31774 | 4008608 |
| Microsoft Corp. | 35666 | 8553420 |
| Oracle Corp. | 49558 | 4050871 |
|  |  | 16612899 |
| **TECHNOLOGY, HARDWARE & EQUIPMENT: 4.8%** |  |  |
| Apple, Inc. | 53471 | 6947487 |
| Cisco Systems, Inc. | 19716 | 939270 |
|  |  | 7886757 |
| **TRANSPORTATION: 6.9%** |  |  |
| Union Pacific Corp. | 53901 | 11161278 |
|  |  | 11161278 |
| Total Common Stocks |  |  |
| &nbsp;&nbsp;&nbsp;(Cost: $20,094,349) |  | 159842460 |
| **TOTAL INVESTMENT IN SECURITIES** |  |  |
| &nbsp;&nbsp;&nbsp;(Cost: $20,094,349) | 98.8% | 159842460 |
| Other assets | 2.0% | 3193643 |
| Other liabilities | (0.8)% | (1218602) |
| **NET ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp;(Applicable to 187,396 partnership shares outstanding) | 100.0% | $161817501 |
| **Net Asset Value Per Share** |  | $863.50 |
| **Net assets applicable to shares owned by:** |  |  |
| Limited partners <br> (187,363 shares) |  | $161789005 |
| Managing general partners<br> (33 shares) |  | 28496 |
| **NET ASSETS** |  | $161817501 |

---

\* Non-Income Producing

^ Foreign Issued Security

*For purposes of this report, the securities in the portfolio have been organized by their respective Global Industry Classification Standard (GICS*<sup>®</sup>*) code. GICS*<sup>®</sup> *was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor Financial Services LLC ("S&P"). GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bank Global Fund Services.*

*See Accompanying Notes to Financial Statements.* 

------

**CHESTNUT STREET EXCHANGE FUND**

**(A California Limited Partnership)**

**SCHEDULE OF INVESTMENTS (Concluded)** 

**December 31, 2022**

***Fair Value Measurements***. The inputs and valuation techniques used to measure fair value of the Fund's investments are summarized into three levels as described in the hierarchy below:

● Level 1 — quoted prices in active markets for identical securities

● Level 2 — other significant observable inputs (including quoted prices for identical securities in inactive markets and for similar securities, interest rates, prepayment speeds, credit risk, etc.)

● Level 3 — significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of inputs used, as of December 31, 2022, in valuing the Fund's investments carried at value:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Total Value at <br> December 31, <br> 2022** | **Level 1 <br> Quoted <br> Price** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** |
| Investments in Common Stocks\* | $159842460 | $159842460 | $— | $— |

---

\* See details of industry breakout in the Schedule of Investments.

At the end of each calendar quarter, management evaluates the classification of Levels 1, 2 and 3 assets and liabilities. Various factors are considered, such as changes in liquidity from the prior reporting period; whether or not a broker is willing to execute at the quoted price; the depth and consistency of prices from third party pricing services; and the existence of contemporaneous, observable trades in the market. Additionally, management evaluates the classification of Level 1 and Level 2 assets and liabilities on a quarterly basis for changes in listings or delistings on national exchanges.

For fair valuations using significant unobservable inputs, U.S. generally accepted accounting principles ("U.S. GAAP") require the Fund to present a reconciliation of the beginning to ending balances for reported market values that presents changes attributable to total realized and unrealized gains or losses, purchase and sales, and transfers in and out of Level 3 during the period. A reconciliation of Level 3 investments is presented only when the Fund had an amount of Level 3 investments at the end of the reporting period that was meaningful in relation to its net assets. The amounts and reasons for all transfers in and out of each Level within the three-tier hierarchy are disclosed when the Fund had an amount of total transfers during the reporting period that was meaningful in relation to its net assets as of the end of the reporting period.

*See Accompanying Notes to Financial Statements.* 

------

**CHESTNUT STREET EXCHANGE FUND**

**(A California Limited Partnership)**

**STATEMENT OF ASSETS & LIABILITIES** 

**December 31, 2022**

---

| | |
|:---|:---|
| **Assets** | |
| Investments in securities, at value (cost $20,094,349) | $159842460 |
| Cash | 2960734 |
| Dividends receivable | 206920 |
| Interest receivable | 9413 |
| Prepaid expenses | 16576 |
| &nbsp;&nbsp;&nbsp;Total assets | 163036103 |
| **Liabilities** |  |
| Payable for distributions | 1095761 |
| Accrued advisory fees | 14206 |
| Accrued administration and accounting fees | 30541 |
| Accrued partners' compensation | 11749 |
| Accrued expenses and other liabilities | 66345 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 1218602 |
| **Net Assets** | $161817501 |
| **Net Assets consisted of:** |  |
| &nbsp;&nbsp;&nbsp;Other capital – paid-in or reinvested | $22069390 |
| &nbsp;&nbsp;&nbsp;Distributable earnings | 139748111 |
| Net Assets (Applicable to 187,396 partnership shares outstanding) | $161817501 |
| **Net Asset Value offering and redemption price per share** |  |
| &nbsp;&nbsp;&nbsp;**(161,817,501 / 187,396 shares)\*** | $863.50 |
| **Net Assets applicable to shares owned by:** |  |
| Limited partners (187,363 shares) | $161789005 |
| Managing general partners (33 shares) | 28496 |
| **Net Assets (187,396 shares)** | $161817501 |

---

The Fund has unlimited shares authorized with no par value.

\* Net asset value per share does not recompute due to rounding.

*See Accompanying Notes to Financial Statements.*

------

**CHESTNUT STREET EXCHANGE FUND**

**(A California Limited Partnership)**

**STATEMENT OF OPERATIONS** 

**Year Ended December 31, 2022**

---

| | | |
|:---|:---|:---|
| **Investment Income** | | |
| &nbsp;&nbsp;&nbsp;Dividends |  | $3600756 |
| &nbsp;&nbsp;&nbsp;Interest |  | 40445 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment income |  | 3641201 |
| **Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;Legal fees (Note C) |  | 218052 |
| &nbsp;&nbsp;&nbsp;Administration and accounting fees (Note C) |  | 190517 |
| &nbsp;&nbsp;&nbsp;Investment advisory services (Note C) |  | 183014 |
| &nbsp;&nbsp;&nbsp;Officer's salary and expenses (Note C) |  | 81597 |
| &nbsp;&nbsp;&nbsp;Managing general partners' compensation (Note C) |  | 47003 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees (Note C) |  | 44444 |
| &nbsp;&nbsp;&nbsp;Audit fees |  | 27397 |
| &nbsp;&nbsp;&nbsp;Insurance |  | 25093 |
| &nbsp;&nbsp;&nbsp;Custodian fees (Note C) |  | 20364 |
| &nbsp;&nbsp;&nbsp;Printing |  | 12133 |
| &nbsp;&nbsp;&nbsp;Miscellaneous |  | 1664 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses |  | 851278 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income |  | 2789923 |
| **Net realized and unrealized gain on investments** |  |  |
| &nbsp;&nbsp;&nbsp;Net realized gain from securities transactions: distributed on redemption of partnership shares |  | 16992331 |
| &nbsp;&nbsp;&nbsp;Unrealized appreciation on investments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning of year | $189657829 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End of year | 139748111 |  |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation |  | (49909718) |
| &nbsp;&nbsp;&nbsp;Net realized and unrealized loss from investments |  | (32917387) |
| &nbsp;&nbsp;&nbsp;Net decrease in net assets resulting from operations |  | $(30127464) |

---

*See Accompanying Notes to Financial Statements.*

------

**CHESTNUT STREET EXCHANGE FUND**

**(A California Limited Partnership)**

**STATEMENTS OF CHANGES IN NET ASSETS**

---

| | | |
|:---|:---|:---|
|  | **Year Ended**<br>**December 31,**<br>**2022** | **Year Ended**<br>**December 31,**<br>**2021** |
| **Increase/(Decrease) in net assets** |  |  |
| **Operations:** |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income | $2789923 | $2442426 |
| &nbsp;&nbsp;&nbsp;Net realized gain from securities transactions: distributed on redemption of partnership shares | 16992331 | 30452689 |
| &nbsp;&nbsp;&nbsp;Net realized gain from securities litigation |  | 4314 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation on investments | (49909718) | 7258422 |
| &nbsp;&nbsp;&nbsp;Net increase/(decrease) in net assets resulting from operations | (30127464) | 40157851 |
| **Distributions to partners from:** |  |  |
| &nbsp;&nbsp;&nbsp;Total distributable earnings | (2790343) | (2446673) |
| **Capital share transactions**<sup>(5)</sup>**:** |  |  |
| &nbsp;&nbsp;&nbsp;Net asset value of 135<sup>(1)</sup> and 204<sup>(2)</sup> shares issued in lieu of cash distributions, respectively | 116391 | 196328 |
| &nbsp;&nbsp;&nbsp;Cost of 21,096<sup>(3)</sup> and 35,383<sup>(4)</sup> shares repurchased, respectively | (18907671) | (33822224) |
| &nbsp;&nbsp;&nbsp;Net decrease in net assets from capital share transactions | (18791280) | (33625896) |
| &nbsp;&nbsp;&nbsp;Total net increase/(decrease) in net assets | (51709087) | 4085282 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 213526588 | 209441306 |
| &nbsp;&nbsp;&nbsp;End of year | $161817501 | $213526588 |

---

(1) Includes 135 Limited partners' shares and 0 Managing general partners' shares.

(2) Includes 204 Limited partners' shares and 0 Managing general partners' shares.

(3) Includes 21,096 Limited partners' shares and 0 Managing general partners' shares.

(4) Includes 35,383 Limited partners' shares and 0 Managing general partners' shares.

(5) On May 3, 2022, Gordon Keen retired from his position as Managing General Partner. His 10 shares held were transferred from Managing General Partner shares to
 Limited Partner Shares.

*See Accompanying Notes to Financial Statements.*

------

**CHESTNUT STREET EXCHANGE FUND**

**(A California Limited Partnership)**

**FINANCIAL HIGHLIGHTS** 

**(For a Share of the Fund Outstanding Throughout Each Year)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
| Net Asset Value, Beginning of Year | $1024.81 | $860.00 | $796.22 | $619.69 | $674.84 |
| Income From Investment Operations: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income<sup>(a)</sup> | 13.65 | 10.66 | 9.51 | 11.82 | 11.77 |
| &nbsp;&nbsp;&nbsp;Net gain (loss) on securities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(both realized and unrealized) | (160.85) | 165.24 | 63.81 | 176.53 | (55.15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total from Investment Operations | (147.20) | 175.90 | 73.32 | 188.35 | (43.38) |
| Less Distributions: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;From net investment income | (14.11) | (11.09) | (9.54) | (11.82) | (11.77) |
| Net Asset Value, End of Year | $863.50 | $1024.81 | $860.00 | $796.22 | $619.69 |
| Total Return | (14.34)% | 20.54% | 9.39% | 30.66% | (6.43)% |
| Ratios/Supplemental Data: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net Assets, End of Year (000's) | $161818 | $213527 | $209441 | $201079 | $164376 |
| &nbsp;&nbsp;&nbsp;Ratios to average net assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expenses |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Including waivers | 0.47% | 0.56% | 0.81% | 0.66% | 0.58% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excluding waivers | 0.47% | 0.57% | 0.83% | 0.68% | 0.59% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income | 1.53% | 1.11% | 1.26% | 1.62% | 1.69% |
| Portfolio Turnover Rate | 0.00% | 0.00% | 0.00% | 0.89% | 0.94% |

---

(a) Net investment income per share is based on average shares outstanding.

*See Accompanying Notes to Financial Statements.*

------

**CHESTNUT STREET EXCHANGE FUND**

**(A California Limited Partnership)**

**NOTES TO FINANCIAL STATEMENTS** 

**December 31, 2022**

**(A)** **ORGANIZATION** 

Chestnut Street Exchange Fund (the "Fund"), a California Limited Partnership, is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified open-end investment management company. The Fund's investment objective is to seek long- term growth of capital and, secondarily, current income. Effective January 1, 1998, the Fund changed its status for tax purposes from a partnership to a regulated investment company. The change resulted from the enactment of the "Publicly Traded Partnership" rules to the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code") in 1987 which first applied to the Fund after 1997. The Fund is an investment company and therefore follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946, *Financial Services – Investment Companies*.

**(B)** **SIGNIFICANT ACCOUNTING PRINCIPLES** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.

***Security Valuations***

Securities listed or traded on an exchange are valued generally at the last sales price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, valued at the closing bid price on that day. Each security reported on the NASDAQ Stock Market, Inc. is valued at the NASDAQ Official Close Price. Securities for which market quotations are not readily available or are believed to be unreliable are valued at fair value as determined in good faith using methods approved by the Managing General Partners. Short-term obligations having 60 days or less to maturity are valued at amortized cost which approximates market value.

***Securities Transactions and Investment Income***

Securities transactions are accounted for on a trade date basis. Realized gains and losses on sales and redemptions in-kind are computed on the basis of specific identification for both financial reporting and income tax purposes. For securities exchanged into the Fund at the Fund's inception in 1976, the cost for financial reporting purposes is the value of those securities as used in the exchange. The cost, for income tax purposes, of securities exchanged into the Fund is the tax basis of the individual investor. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date. Non-cash dividends included in dividend income are recorded at fair value of the security received.

------

***Distributions***

Distributions from net investment income are paid quarterly and recorded on the ex-dividend date. Distributions of capital gains, if any, are paid annually and recorded on the ex-dividend date.

***Federal Income Taxes***

The Fund intends to comply with the requirements of the Internal Revenue Code necessary to qualify as a regulated investment company and, as such, will not be subject to federal income taxes on otherwise taxable income which is distributed to shareholders. The Fund currently intends to retain all of its net long-term capital gains and pay the income tax at the applicable corporate income tax rate. The Fund may change this policy at any time and distribute up to all of its net long-term gains to shareholders.

For the years 2021 and 2022, the Fund did not distribute net long-term capital gains, and did not retain any gains. As such, the Fund did not pay any tax at the corporate income tax rate.

During the year ended December 31, 2022, the Fund utilized no capital loss carryover from prior years and has no capital loss carryover as of December 31, 2022.

Management has analyzed the Fund's tax positions taken on federal income tax returns for all open tax years (December 31, 2019—2022) and has concluded that no provision for federal income tax is required in the Fund's financial statements, except as noted above. The Fund's federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

At December 31, 2022, the federal tax cost, aggregate gross unrealized appreciation and depreciation of securities held by the Fund were as follows:

---

| | |
|:---|:---|
| Federal tax cost | $20094349 |
| Gross unrealized appreciation | 139799084 |
| Gross unrealized depreciation | (50973) |
| Net unrealized appreciation | $139748111 |

---

The difference between book basis and tax basis of investments is attributable to the use of the individual partners' tax basis for those securities contributed to the Fund at its inception, as required by law.

***Recent Accounting Pronouncements***

In December 2020, the Securities and Exchange Commission ("SEC") adopted a new rule providing a framework for fund valuation practices ("Rule 2a-5"). Rule 2a-5 establishes requirements for determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 permits fund boards to designate certain parties to perform fair value determinations, subject to board oversight and certain other conditions. Rule 2a-5 also defines when market quotations are "readily available" for purposes of the 1940 Act and the threshold for determining whether a fund must fair value a security. In connection with Rule 2a-5, the SEC also adopted related recordkeeping requirements and is rescinding previously issued guidance, including with respect to the role of a board in determining fair value and the accounting and auditing of fund investments. Effective September 8, 2022, and pursuant to the requirements of Rule 2a-5, the Board designated Mitchell Sinkler & Starr, Inc., the Fund's investment adviser, as the Fund's valuation designee to perform fair value determinations. Management has determined that there was no material impact of the new rules on the Fund's financial statements.

------

**(C)** **INVESTMENT ADVISORY FEES, OTHER SERVICES AND TRANSACTIONS WITH AFFILIATES** 

The Advisory Agreement provides for a fee, computed daily and paid monthly at the annual rate of 0.10% of the Fund's net assets. For the year ended December 31, 2022, fees paid via the Advisory Agreement amounted to $183,014.

U.S. Bancorp Fund Services, doing business as U.S. Bank Global Fund Services serves as the Fund's administrator, accounting agent, transfer agent and dividend disbursing agent. U.S. Bank, NA serves as the Fund's custodian.

The Managing General Partners each receive a fixed fee as compensation for their services, fees for attending Board meetings and reimbursement of expenses incurred attending Board meetings. In addition, the Chairman, President, Chief Financial Officer and Chief Compliance Officer receive additional payments for overseeing the Fund's activities, plus reimbursements of related expenses. For the year ended December 31, 2022, payments to or for the Managing General Partners, Chairman, President, Chief Financial Officer and Chief Compliance Officer amounted to $128,600.

Legal fees amounting to $218,052 for the year ended December 31, 2022 were paid to Faegre Drinker Biddle & Reath LLP. A partner of the law firm is the Secretary of the Fund.

**(D)** **INVESTMENT TRANSACTIONS** 

There were no purchases and sales of investment securities (excluding short-term obligations and redemptions in-kind) for the year ended December 31, 2022.

**(E)** **DISTRIBUTIONS TO SHAREHOLDERS** 

Net investment income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. The primary difference applicable to the Fund's distributions is the requirement to pass through 40% of its aggregate expenses to the partners of the Fund. This is required because the Fund has fewer than 500 partners and does not continuously offer shares. The partners have treated this pass-through of expenses as a distribution of net investment income and a corresponding miscellaneous itemized deduction of investment expense, however, in tax years 2019 through 2025, as a result of the Tax Cuts and Jobs Act of 2017, the investment expenses are no longer deductible.

The tax character of distributions paid during 2022 and 2021 were as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Ordinary income | $2790343 | $2446673 |
| Distributed to partners | $2790343 | $2446673 |

---

For federal income tax purposes, distributions of net investment income and short-term capital gains are treated as ordinary income dividends.

------

**(F)** **IN-KIND DISTRIBUTION OF SECURITIES**

During the year ended December 31, 2022, the Fund distributed portfolio securities in lieu of cash for most shareholder redemptions. The value of these redemptions in portfolio securities and cash redemptions were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Value of the** <br> **Redemptions**  | **Net Realized** <br> **Gain Included in** <br> **Redemptions**  | **Fund Shares** <br> **Redeemed**  |
| Portfolio Securities | $18880108 \* | $16992331 | 21096 |
| Cash | 27563 |  |  |
|  | $18907671 | $16992331 | 21096 |

---

\* Includes $222,217 in cash redeemed.

Net realized gains from these in-kind transactions are not taxable to the Fund. Such gains are not distributed to shareholders and will be reclassified to paid-in capital at the Fund's fiscal year end. These transactions were completed following guidelines approved by the Managing General Partners.

**(G)** **INDEMNIFICATIONS** 

In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is dependent on claims that may be made against the Fund in the future, and therefore, cannot be estimated. However, based on experience, the risk of material loss for such claims is considered remote.

**(H)** **TAX MATTERS** 

At December 31, 2022, the components of distributable earnings on a tax basis were as follows:

---

| | |
|:---|:---|
| Undistributed net investment income | $— |
| Net realized gain |  |
| Net unrealized appreciation on investments | 139748111 |
|  | $139748111 |

---

On December 31, 2022, distributable earnings were decreased by $16,992,196 and additional paid in capital was increased by $16,992,196 due to permanent book and tax treatment of realized gains and losses attributable to redemptions in kind and differences in book and tax cost of securities described in Note B. Net assets of the Fund were unaffected by this change.

**(I)** **SUBSEQUENT EVENTS** 

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and determined that there were no subsequent events requiring disclosure.

------

**CHESTNUT STREET EXCHANGE FUND**

**(A California Limited Partnership)**

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

**To the Partners of Chestnut Street Exchange Fund**

**Opinion on the Financial Statements** 

We have audited the accompanying statement of assets and liabilities of Chestnut Street Exchange Fund (the ***"Fund"***), including the schedule of investments, as of December 31, 2022, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended and the financial highlights for each of the years in the five-year period then ended, and the related notes (collectively referred to as the ***"financial statements"***). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended and its financial highlights for each of the years in the five-year period then ended, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (***"PCAOB"***) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities law and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.

------

**CHESTNUT STREET EXCHANGE FUND**

**(A California Limited Partnership)**

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

Our audits included performing procedures to assess the risk of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022 by correspondence with the custodian. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](chestnutncsr003.jpg)

**BBD, LLP**

We have served as the auditor of one or more of the Chestnut Street Exchange Fund since 2003.

**Philadelphia, Pennsylvania**

**February 22, 2023** 

------

**CHESTNUT STREET EXCHANGE FUND**

**(A California Limited Partnership)**

**LIQUIDITY RISK MANAGEMENT PROGRAM**

**(Unaudited)**

The Fund adopted a Liquidity Risk Management Program (the "Program") pursuant to Rule 22e-4 under the Investment Company Act of 1940 Act, as amended (the "Liquidity Rule"). The Program seeks to assess, manage and review the Fund's Liquidity Risk. "Liquidity Risk" is defined as the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors' interests in the Fund.

The Fund's Board of Managing General Partners appointed the Vigilant Compliance, LLC to be the administrator of the Program (the "Program Administrator"). Among other things, the Liquidity Rule requires that the Program Administrator provide a written report to the Board on an annual basis that addresses the operation of the Program and assesses the adequacy and effectiveness of its implementation, including the operation of the Highly Liquidity Investment Minimum ("HLIM") established for the Fund, if any, and any material changes to the Program (the "Report"). On October 26, 2022, the Board received the annual Report concerning the operation of the Program for the period from October 1, 2021 through September 30, 2022 (the "Program Reporting Period"). The Report summarized the operation of the Program and the information and factors considered by the Program Administrator in assessing whether the Program had been adequately and effectively implemented. There were no material changes to the Program during the Program Reporting Period and the Fund was not required to set a HLIM. The Report concluded that the Program continues to be an effective tool in seeking to ensure the Fund's compliance with the Liquidity Rule.

------

**CHESTNUT STREET EXCHANGE FUND**

**(A California Limited Partnership)**

**ADDITIONAL INFORMATION**

**(Unaudited)**

**Proxy Voting** 

Policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities as well as information regarding how the Fund voted proxies relating to portfolio securities for the most recent 12-month period ended June 30 are available without charge, upon request, by calling (866) 311-7541 and on the SEC's website at *http://www.sec.gov*.

**Quarterly Portfolio Schedule**

The Fund files a complete schedule of portfolio holdings with the SEC for the first and third fiscal quarters of each fiscal year (quarters ended March 31 and September 30) on Part F of Form N-PORT. The Fund's Part F of Form N-PORT is available on the SEC website at *http://www.sec.gov*.

**Tax Information**

As required by the Internal Revenue Code, 100% of ordinary income dividends paid for the year ended December 31, 2022 have been designated as: 1) qualified for the reduced tax rate under The Job and Growth Relief Reconciliation Act of 2003, and 2) eligible for the dividend received deduction for corporate shareholders.

------

**CHESTNUT STREET EXCHANGE FUND**

**(A California Limited Partnership)**

**INFORMATION ON THE MANAGING GENERAL**

**PARTNERS AND OFFICERS OF THE FUND**

**(Unaudited)**

The list below provides certain information about the identity and business experience of the Managing General Partners and officers of the Fund. The Fund's Statement of Additional Information includes additional information about the Fund's Managing General Partners, which may be obtained from the Fund free of charge by calling 1-866-311-7541.

**TERM OF OFFICE:** The Fund's partnership agreement provides that each Managing General Partner holds office until the earliest of (a) the election of his or her successor; or (b) the date a Managing General Partner dies, resigns, becomes insane, is adjudicated as bankrupt or is removed by a majority of the partners. The officers of the Fund are elected by the Managing General Partners and each officer holds office for one year or until he or she shall resign or be removed or until his or her successor is elected and qualified.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name, Address, and Age** | **Position with** <br> **the Fund and** <br> **Length of** <br> **Time Served**  | **Principal Occupations During Past** <br> **5 Years and Current Affiliations**  | **Number of** <br> **Portfolios in** <br> **Fund Complex<sup>(1)</sup>** <br> **Overseen by** <br> **Managing** <br> **General Partners**  | **Other** <br> **Directorship<sup>(2)</sup>** <br> **Held by** <br> **Managing** <br> **General Partner** <br> **During Past** <br> **5 Years**  |
| **Interested Managing General Partners** | **Interested Managing General Partners** |  |  |  |
| Terry Wettergreen <br> Gateway Corporate Center, <br> Suite 216 <br> 223 Wilmington West <br> Chester Pike, Suite 216 <br> Chadds Ford, PA 19317<br> Age: 72 | Managing General Partner since 2022 | Retired. Director, Vigilant Compliance LLC from 2016 to 2022; Chief Compliance Officer, Westport Advisers LLC and Westport Asset Management Inc. from 1996-2016; Treasurer, Chief Financial Officer, Vice President and Secretary, The Westport Funds 1998-2016. | 1 |  |
| **Disinterested Managing General Partners** | **Disinterested Managing General Partners** |  |  |  |
| Langhorne B. Smith <br> Gateway Corporate Center, <br> Suite 216 <br> 223 Wilmington West <br> Chester Pike, Suite 216 <br> Chadds Ford, PA 19317<br> Age: 86 | Managing General Partner since 1997 | Retired. President and Director, The Sandridge Corporation (private investment company); Director, Claneil Enterprises, Inc. (private investment company from 1981 to 2002). | 1 |  |
| David R. Wilmerding, Jr. <br> Gateway Corporate Center, <br> Suite 216 <br> 223 Wilmington West <br> Chester Pike, Suite 216 <br> Chadds Ford, PA 19317<br> Age: 87 | Managing General Partner since 1976; Chairman of the Managing General Partners since 2006 | Retired. Chairman, Wilmerding & Associates (investment advisers) from February 1989 to 2006. | 1 | Director, Beaver Management Corporation until <br> April 2021 |

---

------

**CHESTNUT STREET EXCHANGE FUND**

**(A California Limited Partnership)**

**INFORMATION ON THE MANAGING GENERAL**

**PARTNERS AND OFFICERS OF THE FUND (Continued)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name, Address, and Age** | **Position with** <br> **the Fund and** <br> **Length of** <br> **Time Served**  | **Principal Occupations During Past** <br> **5 Years and Current Affiliations**  | **Number of** <br> **Portfolios in** <br> **Fund Complex<sup>(1)</sup>** <br> **Overseen by** <br> **Managing** <br> **General Partners**  | **Other** <br> **Directorship<sup>(2)</sup>** <br> **Held by** <br> **Managing** <br> **General Partner** <br> **During Past** <br> **5 Years**  |
| **Officers** |  |  |  |  |
| Frederick C. Teufel, Jr. <br> Vigilant Compliance LLC <br> Gateway Corporate Center, <br> Suite 216 <br> 223 Wilmington West <br> Chester Pike, Suite 216 <br> Chadds Ford, PA 19317<br> Age: 63 | President, Chief Compliance Officer and Chief Financial Officer since 2022. | Director, Vigilant Compliance LLC since September 2020. Professor of Accounting, Saint Joseph's University, 2014 to 2020. Principal, The Vanguard Group of Investment Companies, 1990 to 2014. Senior Manager, Business Assurance, Price Waterhouse 1983 to 1990. | N/A | N/A |
| Michael P. Malloy <br> Faegre Drinker Biddle & <br> Reath LLP <br> One Logan Square <br> Suite 2000 <br> Philadelphia, PA 19103<br> Age: 63 | Secretary since 2001 | Partner in the law firm of Faegre Drinker Biddle & Reath LLP. | N/A | N/A |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The Fund Complex includes all registered investment companies that are advised by Mitchell Sinkler & Starr, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Directorships of companies required to report to the Securities and Exchange Commission under the Securities Exchange Act of 1934, as
 amended (i.e., "public companies") or other investment companies registered under the 1940 Act.

------

**CHESTNUT STREET EXCHANGE FUND**

**(A California Limited Partnership)**

**Privacy Notice**

Chestnut Street Exchange Fund is committed to protecting the security and confidentiality of the personal information of our partners. We provide you with this notice to inform you about our practices with respect to personal information.

We collect nonpublic personal information about you from the following sources:

&nbsp;&nbsp;&nbsp;&nbsp;● Information we receive from you; and

&nbsp;&nbsp;&nbsp;&nbsp;● Information about your transactions with us or others

We do not disclose any nonpublic personal information about you to anyone, except as permitted by law. If you decide to close your account we will adhere to the privacy policies and practices as described in this notice.

We restrict access to your personal and account information to those employees of U.S. Bank Global Fund Services and the Fund's Chief Financial Officer who need to know that information to provide services to you. We maintain physical, electronic and procedural safeguards to guard your nonpublic personal information.

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[INTENTIONALLY LEFT BLANK]

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[INTENTIONALLY LEFT BLANK]

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&nbsp;&nbsp;&nbsp;&nbsp;<br>

*MANAGING GENERAL PARTNERS* 

Langhorne B. Smith

Terry Wettergreen

David R. Wilmerding, Jr.

*INVESTMENT ADVISER*

Mitchell Sinkler & Starr, Inc.

Two Penn Center Plaza, Suite 1320

Philadelphia, PA 19102

*ADMINISTRATOR*

U.S. Bank Global Fund Services

615 East Michigan Street

Milwaukee, Wisconsin 53202

*TRANSFER AGENT*

U.S. Bank Global Fund Services

615 East Michigan Street

Milwaukee, Wisconsin 53202

![](chestnutncsr004.jpg)

<br> Annual Report

December 31, 2022

Chestnut Street Exchange Fund<br>

223 Wilmington West Chester Pike, Suite 216

Chadds Ford, PA 19137

1-866-311-7541 <br>

------

(b) Not applicable.

#### Item 2. Code of Ethics.

(a) The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

(c) There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description.

(d) The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item's instructions.

(f) A copy of the registrant's Code of Ethics is available as provided in Item 13(a)(1) of this Form.

#### Item 3. Audit Committee Financial Expert.

The registrant's board of managing general partners has determined that the registrant has at least one "audit committee financial expert" serving on its audit committee. Langhorne B. Smith is the "audit committee financial expert" and is "independent" as each term is defined in Item 3 of Form N-CSR.

#### Item 4. Principal Accountant Fees and Services.

<u>Audit Fees</u>

(a) The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the
 accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $21,400 for 2022 and $21,000 for 2021.

------

<u>Audit-Related Fees</u>

(b) The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are
 not reported under paragraph (a) of this Item are $0 for 2022 and $0 for 2021.

<u>Tax Fees</u>

(c) The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $3,000 for 2022 and $3,000 for 2021.

<u>All Other Fees</u>

(d) The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2022 and $0 for 2021.

(e)(1) Disclose the audit committee's pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

The Audit Committee does not have pre-approved policies and procedures. Instead, the Audit Committee approves on a case-by-case basis each audit or non-audit service before the accountant is engaged by the Registrant.

(e)(2) No services described in paragraph (b) through (d) were approved by the Audit Committee pursuant to the "de minimis" exception of Rule 2-01(c)(7)(i)(c) of Regulation S-X.

(f) The percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal
 accountant's full-time, permanent employees was less than fifty percent.

(g) The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management
 and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years
 of the registrant was $0 for 2022 and $0 for 2021.

(h) Not applicable

------

(i) Not applicable

(j) Not applicable

#### Item 5. Audit Committee of Listed Registrants.

Not applicable.

#### Item 6. Investments.

&nbsp;&nbsp;&nbsp;&nbsp;(a) Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this Form.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable.

#### Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

#### Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

#### Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

#### Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's board of managing general partners.

#### Item 11. Controls and Procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment
 Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of
 these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially
 affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

#### Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

#### Item 13. Exhibits.

[(a)(1) Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.](coe.htm)

[(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.](certs.htm)

(a)(3) Not applicable.

(a)(4) Not applicable.

[(b)&nbsp;&nbsp;&nbsp;&nbsp; Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.](sox.htm)

------

#### 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Registrant) <u>Chestnut Street Exchange Fund&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

By (Signature and Title) <u>/s/ Frederick C. Teufel, Jr. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<br> Frederick C. Teufel, Jr., President & Chief Compliance Officer

(principal executive officer)

Date <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3/3/2023 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <br>

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 (Signature and Title) <u>/s/ Frederick C. Teufel, Jr. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<br> Frederick C. Teufel, Jr., President & Chief Compliance Officer

(principal executive officer)

Date <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <u><u>3/3/2023</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

By (Signature and Title) <u>/s/ Frederick C. Teufel, Jr. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Frederick C. Teufel, Jr., Chief Financial Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (principal financial officer)

Date <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <u><u>3/3/2023</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <br>

------

## Ex-99.Code

------

#### CHESTNUT STREET EXCHANGE FUND

#### CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND

#### SENIOR FINANCIAL OFFICERS

The Managing General Partners of The Chestnut Street Exchange Fund (the "Fund") has adopted this Code of Ethics (the "Code") for certain senior officers of the Fund to guide and remind such officers of their responsibilities to the Fund, and shareholders of the Fund. Such officers are expected to act in accordance with the guidance and standards set forth in this Code.

I. **Covered Officers and Purpose of the Code** 

The Code applies to the Fund's President, who is the Fund's principal executive officer, and the Treasurer, who is the Fund's principal financial officer, and any persons performing similar functions on behalf of the Fund, regardless of whether such persons are employed by the Fund or a third party (the "Covered Officers") for the purpose of promoting:

• honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional
 relationships;

• full, fair, accurate, timely and understandable disclosure in reports and documents that the Fund files with, or submits to, the Securities and
 Exchange Commission ("SEC") and in other public communications made by the Fund<sup>\*;</sup>

• compliance with applicable laws and governmental rules and regulations;

• the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and

• accountability for adherence to the Code.

Each Covered Officer is obligated to use his or her best efforts to promote the factors listed above, should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

II. **Ethical Handling of Actual and Apparent Conflicts of Interest** 

A. **Conflicts of Interest - General** 

1. A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his or her service to, the Fund and
 its shareholders, including if a Covered Officer, or a member of his or her family, receives improper personal benefits as a result of his or her position with the Fund.

------

<sup>\*</sup> If a Covered Person becomes aware that information filed with the SEC or made available to the public contains any false or misleading information or omits to disclose necessary information, he or she shall promptly report it to the Audit Committee.

------

2. A conflict of interest generally arises if a Covered Officer, or a member of his or her family, directly or indirectly participates in any
 investment, interest, association, activity or relationship that may impair or appear to impair the Covered Officer's objectivity.

B. **Scope** 

This Code does not, and is not intended to, repeat or replace the following programs and procedures, and such conflicts that fall outside of the parameters of this Code:

1. Certain conflicts of interest already are subject to conflicts of interest provisions in the Investment Company Act of 1940, as amended (the "1940
 Act"), and the Investment Advisers Act of 1940 (the "Advisers Act").

2. The Fund's and the investment adviser's compliance programs and procedures that are designed to prevent, or identify and correct, violations of
 these provisions.

C. **Types of Conflicts** 

1. **Contractual Relationships** 

Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the Fund, investment adviser, or service providers of which the Covered Officers may also be officers or employees. As a result, this Code recognizes that the Covered Officers may, in the normal course of their duties (whether formally for the Fund, for the investment adviser or for the service providers), be involved in establishing policies and implementing decisions that will have different effects on the Fund, the adviser and the administrator. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Fund and the investment adviser or administrator and is consistent with the performance by the Covered Officers of their duties as officers of the Fund. Thus, if performed in conformity with the provisions of the 1940 Act and the Advisers Act, such activities will be deemed to have been handled ethically.

2. **Other Investment Companies** 

In addition, it is recognized by the Fund's Managing General Partners that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes.

------

3. **Additional Conflicts** 

Other conflicts of interest may be covered by the Code, even if such conflicts of interest are not subject to provisions in the 1940 Act and the Advisers Act.

D. **Personal Interests** 

The major principle of this Code is that the personal interest of a Covered Officer should not be placed improperly before the interest of the Fund. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that this list is not exhaustive.

Each Covered Officer must:

• not use his or her personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Fund
 whereby the Covered Officer would benefit personally to the detriment of the Fund;

• not cause the Fund to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit the
 Fund;

• not use material non-public knowledge of portfolio transactions made or contemplated for the Fund to trade personally or cause others to trade
 personally in contemplation of the market effect of such transactions; and

• report at least annually affiliations or other relationships with the Fund, the investment adviser or the distributor, including any related
 conflict of interest.

E. **Reporting of Conflicts** 

1. Required Disclosures

If certain conflict of interest situations are engaged in by Covered Officers or by members of their family, these conflicts of interest must be promptly discussed with the Audit Committee. These conflicts of interest include:

• service as a director on the board of any public or private company, excluding boards of non-profits;

• the receipt of any non-nominal gifts in excess of $250.00;

• the receipt of any entertainment from any company with which the Fund has current or prospective business dealings unless such entertainment is
 business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety;

------

• any ownership interest in, or any consulting or employment relationship with, any of the Fund's service providers, other than its investment
 adviser, principal underwriter, administrator or any affiliated person thereof;

• a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Fund for effecting portfolio transactions or for
 selling or redeeming shares other than an interest arising from the Covered Officer's employment, such as compensation or equity ownership; and

• any other interest, relationship or matter that a Covered Person or the Managing General Partners determine, in his or her reasonable judgement,
 warrants disclosure.

2. Recommended Disclosures

There are potential conflict of interest situations, which may be engaged in by Covered Officers or by members of their family, that should be discussed with the Audit Committee. A Covered Person should use reasonable judgement to determine if a conflict, other than conflicts listed under section E(1), is material and warrants disclosure to the Audit Committee.

III. **Compliance and Disclosure** 

A. **Compliance** 

Each Covered Officer should:

1. familiarize himself or herself with the disclosure requirements generally applicable to the Fund;

2. not knowingly misrepresent, or cause others to misrepresent, facts about the Fund to others, whether within or outside the Fund, including to the
 Fund's directors and auditors, governmental regulators and self-regulatory organizations and any other organization;

3. to the extent appropriate within his or her area of responsibility, consult with other officers and employees of the Fund, investment adviser and
 other service providers with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Fund files with, or submits to, the SEC and in other public communications made by the Fund; and

4. promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.

------

B. **Disclosure** 

Unless otherwise required by law, this Code shall be disclosed as required by the SEC.

IV. **Accountability** 

Each Covered Officer must:

• upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Managing General Partners on the
 certification attached hereto as Appendix A that he or she has received, read, and understands the Code;

• annually thereafter affirm to the Managing General Partners that he or she has complied with the requirements of the Code and reported any
 violations of the Code;

• not retaliate against any other Covered Officer or any employee of the Fund or their affiliated persons or the Fund's service providers for reports
 of potential violations that are made in good faith; and

• notify the Chairman of the Audit Committee promptly if he or she knows of any violation of this Code. Failure to do so is itself a violation of this
 Code.

V. **Reporting Procedures** 

1. **Responsibility<sup>\*\*</sup>** 

• The Fund's Audit Committee is responsible for applying this Code to specific situations in which questions are presented under it and has the
 authority to interpret this Code in any particular situation.

• The Fund's Audit Committee may consult Fund counsel in order to effectively discharge its responsibilities.

2. **Investigation Procedures<sup>\*\*</sup>** 

------

<sup>\*\*</sup> The Audit Committee may delegate its reporting procedures, responsibilities and investigation procedures to the Chairman of the Audit Committee.

The Fund will follow these procedures in investigating and enforcing the Code:

------

• The Audit Committee will take all appropriate action to investigate any potential violations of the Code;

• If, after such investigation, the Audit Committee believes that no violation has occurred, the Audit Committee is not required to take any further
 action;

• Any matter that the Audit Committee believes is a violation of this Code will be reported to the Managing General Partners; and

• If the Managing General Partners concur that a violation has occurred, it will take action which it considers appropriate. Such action may include a
 review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of each service provider or its governing body; or a recommendation to dismiss the Covered Officer.

3. **Waivers** 

Any approvals or waivers, implicit or otherwise, sought by a Covered Person will be considered by the Audit Committee. Such Committee will be responsible for granting waivers, as appropriate; and any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.

A waiver is the approval of a material departure from a provision of this Code. An implicit waiver is the Fund's failure to take action within a reasonable period of time regarding a material departure from a provision of this Code that has been made known to the Managing General Partners of the Fund.

V. **Other Policies and Procedures** 

This Code shall be the sole code of ethics adopted by the Fund for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Fund, the investment adviser, distributor, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The Fund's and its investment adviser's and distributor's codes of ethics under Rule 17j-1 under the 1940 Act (see Exhibit A for a list of the investment adviser and distributor of the Fund) are separate requirements applying to the Covered Officers and others, and are not part of this Code.

VI. **Amendments** 

Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the Managing General Partners.

------

VII. **Confidentiality and Recordkeeping** 

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Audit Committee.

Subject to the confidentiality provisions above, the Fund will maintain and preserve for a period of not less than six (6) years from the date of submission or action is taken, the first two (2) years in an easily accessible place, a copy of the Covered Officer's annual certifications and any information or materials supplied to the Audit Committee that provided the basis for any amendment or waiver to this Code or relating to any violation of the Code and sanctions imposed for such violation, together with a written record of the approval or action taken by the Managing General Partners.

VIII. **Internal Use** 

The Code is intended solely for the internal use by the Fund and does not constitute an admission, by or on behalf of any Fund, as to any fact, circumstance, or legal conclusion.

Adopted: September 18, 2003

Amended: October 29, 2007; October 26, 2011

#### Exhibit A

Adviser

Mitchell, Sinkler & Starr, Inc.

<u>Appendix A</u>

#### Chestnut Street Exchange Fund

#### Certification and Acknowledgment of Receipt of Code of Ethics for
Principal Executive Officers and Senior Financial Officers

I acknowledge and certify that I have received a copy of the Code of Ethics for Principal Executive Officers and Senior Financial Officers of The Chestnut Street Exchange Fund (the "Code"). I understand and agree that it is my responsibility to read and familiarize myself with the policies and procedures contained in the Code and to abide by those policies and procedures.

I acknowledge my commitment to comply with the Code.

#### Applicable next year:

I acknowledge that I complied with the Code for the one-year period ended December 31, ____.

I acknowledge that I reported all violations of this Code of Ethics for the one-year period ended December 31, ____ of which I am aware.

------

(*Please submit on a separate piece of paper, exceptions to these acknowledgements.*)

---

| | |
|:---|:---|
|  <br> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <br>Officer Name (Please Print) | <br> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <br>Officer Signature |
|  | <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <br> Date |

---

------

## Ex-99.Cert

------

#### EX.99.CERT CERTIFICATIONS

I, Frederick C. Teufel, Jr., certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this report on Form N-CSR of Chestnut Street Exchange Fund; <br>

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made,
 not misleading with respect to the period covered by this report; <br>

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if
 the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; <br>

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over
 financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date:<u> </u><u><u>3/3/2023</u></u> <br>| <u>/s/ Frederick C. Teufel, Jr.</u><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <br> Frederick C. Teufel, Jr.<br> President & Chief Compliance Officer<br> (principal executive officer) |

---

------

EX.99.CERT

#### CERTIFICATIONS

I, Frederick C. Teufel, Jr., certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this report on Form N-CSR of Chestnut Street Exchange Fund;<br>

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made,
 not misleading with respect to the period covered by this report; <br>

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if
 the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; <br>

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over
 financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date:<u> </u><u><u>3/3/2023</u></u> <br>| <u>/s/ Frederick C. Teufel, Jr.</u><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <br> Frederick C. Teufel, Jr.<br> Chief Financial Officer<br> (principal financial officer) |

---

------

## Exhibit 99.906

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#### EX.99.906CERT <br> Certification Pursuant to Section 906 of the Sarbanes-Oxley Act

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned officers of the Chestnut Street Exchange Fund (the "Registrant"), does hereby certify that the report on Form N-CSR of the Registrant for the year ended December 31, 2022 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant for the period presented in the Report.

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|:---|:---|
| <u>/s/ Frederick C. Teufel, Jr.</u><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <br>Frederick C. Teufel, Jr.<br> President & Chief Compliance Officer (principal executive officer)<br>| <u>/s/ Frederick C. Teufel, Jr.</u><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <br> Frederick C. Teufel, Jr.<br> Chief Financial Officer (principal financial officer) |
| Dated:<u> </u><u><u>3/3/2023</u></u> <br>| Dated:<u> </u><u><u>3/3/2023</u></u> <br>|

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This certification is being furnished to the Securities and Exchange Commission pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended, and 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR with the Securities and Exchange Commission. <br>

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