Investment Policy

The Fund is a non-diversified, closed-end investment company whose objective is to seek long-term capital appreciation through investment in equity and equity-linked securities of Swiss companies. The Fund also may acquire and hold equity and equity-linked securities of non-Swiss companies in limited instances.

The Fund is listed on the New York Stock Exchange under the symbol "SWZ."

Net Asset Value is calculated daily by 6:15 P.M. (Eastern Time). The most recent calculation is available by accessing our Website. Net Asset Value is also published weekly in Barron's, the Monday edition of The Wall Street Journal and the Sunday Edition of The New York Times.

Portfolio Composition

Pursuant to a resolution of the Board of Directors, the Fund is required, under normal market conditions, to invest more than 80% of its assets in Swiss securities. The Fund is a non-diversified closed-end management investment company. As a non-diversified investment company, there is no restriction on the percentage of the Fund's assets that may be invested at any time in the securities of any one issuer, other than the diversification requirements applicable to regulated investment companies under the Internal Revenue Code of 1986, as amended.

Investment Restrictions

The Fund has, however, adopted the following fundamental investment restrictions that cannot be changed without the approval of the holders of a majority of the Fund's outstanding voting securities. For purposes of the restrictions listed below, all percentage limitations apply immediately after a purchase or initial investment, and any subsequent change in any applicable percentage resulting from market fluctuations will not be considered a violation of such restrictions.

The Fund may not:

  1. Invest 25% or more of the total value of its assets in a particular industry.
  2. Issue senior securities, borrow money or pledge its assets, except that the Fund may borrow money from banks in amounts not exceeding 10% of its total assets (including the amount borrowed) and may pledge its assets in connection with such permitted borrowing; provided that permitted derivative transactions are not deemed to be an issuance of a senior security.
  3. Make loans, except through the purchase of debt obligations consistent with the Fund's investment policies.
  4. Buy or sell commodities, commodity contracts, futures contracts, real estate or interests in real estate, except that the Fund may purchase and sell securities issued by Swiss Real Estate Companies (as defined in the Fund's prospectus), and the Fund may acquire, hold and sell real estate or mortgages on real estate as a result of default, liquidation or other distributions of an interest in real estate as a result of the Fund's ownership of securities of Swiss Real Estate Companies.
  5. Make short sales of securities or maintain a short position in any security.
  6. Purchase securities on margin, except such short-term credits as may be necessary or routine for the clearance or settlement of transactions.
  7. Act as an underwriter, except to the extent the Fund may be deemed to be an underwriter in connection with the sales of securities in its portfolio.
  8. Invest 10% or more of the total value of its assets in securities which cannot be readily resold because of legal or contractual restrictions or which are not otherwise readily marketable.

The Fund is a closed-end investment product. Common shares of the Fund are only available for purchase/sale on the NYSE at the current market price. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

Performance data quoted represents past performance. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.

All Investments, domestic and foreign, involve risks including the risk of possible loss of principal. The market value of a fund's portfolio may decline as a result of a number of factors, including adverse economic and market conditions, prospects of stocks in the portfolio, changing interest rates, and real or perceived adverse competitive industry conditions. In addition, the Fund invests in restricted securities and other investments that may be illiquid, which hold the risk that the securities will not be able to be sold at the time desired by the Fund. The Fund is classified as "non-diversified" under the 1940 Act. A non-diversified fund has the ability to invest more of its assets in securities of a single issuer than if it were classified as a "diversified" fund, which may increase volatility.

Trading in Swiss equities involves certain risks and special considerations not usually associated with investing in securities of established U.S. companies, including risks related to the nature of the market for Swiss equities, including the risk that the Swiss equities markets may be affected by market developments in different ways than U.S. securities markets and may be more volatile than U.S. securities markets; political and economic risks with respect to Switzerland, including the possible imposition of, or changes in, currency exchange laws or other Swiss laws or restrictions applicable to investments in Swiss equities; and fluctuations in the rate of exchange between currencies and costs associated with currency conversion. The Swiss securities markets have substantially less trading volume than the U.S. securities markets. Additionally, the capitalization of the Swiss securities markets is highly concentrated. Securities of some companies located in Switzerland will be less liquid and more volatile than securities of comparable U.S. companies. This combination of lower volume and greater concentration in the Swiss securities markets may create a risk of greater price volatility than in the U.S. securities markets.

The market price of common shares of the Fund will be based on factors such as the supply and demand for common shares in the market and general market, economic, political or regulatory conditions. Whether shareholders will realize gains or losses upon the sale of common shares of the Fund will depend on the market price of common shares at the time of the sale, not on the Fund’s net asset value. The market price may be lower or higher than the Fund’s net asset value. Shares of closed-end funds frequently trade at a discount or premium to their net asset value.

Schroder Investment Management North America Inc. ("SIMNA Inc.") is an investment adviser registered with the U.S. SEC.