3. Financial risk management
Currency risk
The Group holds assets denominated in currencies other than the Swiss franc, the functional currency. It is therefore exposed to currency risk, as the value of the securities denominated in other currencies will fluctuate due to changes in exchange rates. Depending on the market situation the Group could use foreign currency options and/or forward contracts to reduce the currency risk.
The following exchange rates have been used for the preparation of these condensed consolidated interim financial statements:
|
Currency |
|
30.09.2022 |
|
31.12.2021 |
|
USD |
|
0.98700 |
|
0.91290 |
|
ANG |
|
0.55449 |
|
0.51287 |
|
EUR |
|
0.96740 |
|
1.03740 |
|
GBP |
|
1.10230 |
|
1.23390 |
Fair Values
The following table presents the Group’s assets that are measured at fair value (in CHF 1 000):
|
30.09.2022 |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
Assets |
|
|
|
|
|
|
|
|
|
Securities |
|
|
|
|
|
|
|
|
|
– Shares |
|
3 007 773 |
|
– |
|
17 273 |
|
3 025 046 |
|
– Derivative instruments |
|
– |
|
– |
|
– |
|
– |
|
Total assets |
|
3 007 773 |
|
– |
|
17 273 |
|
3 025 046 |
|
|
|
|
|
|
|
|
|
|
|
31.12.2021 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
Securities |
|
|
|
|
|
|
|
|
|
– Shares |
|
3 638 890 |
|
– |
|
– |
|
3 638 890 |
|
– Derivative instruments |
|
– |
|
– |
|
2 222 |
|
2 222 |
|
Total assets |
|
3 638 890 |
|
– |
|
2 222 |
|
3 641 112 |
The table below summarizes the transactions in level 3 instruments (in CHF 1 000):
|
|
|
01.01.–30.09.2022 |
|
01.01.–30.09.2021 |
|
Opening balance |
|
2 222 |
|
2 155 |
|
Purchases |
|
16 875 |
|
– |
|
Sales |
|
(5 071) |
|
– |
|
Realized gains/(losses) included in net gain/loss from securities |
|
2 849 |
|
– |
|
Unrealized gains/(losses) included in net gain/loss from securities |
|
397 |
|
113 |
|
Closing balance |
|
17 273 |
|
2 268 |
|
Gains/(losses) on level 3 instruments included in net gain/loss from securities |
|
3 246 |
|
113 |
There were no transfers between level 1, 2 and 3 during the reporting period.
The level 3 instrument as at December 31, 2021, (Valuation: TCHF 2 222) was allocated as part of a corporate action in 2019 and sold at a value of TCHF 5 071 in March 2022.
The fair value of the level 3 instrument at initial recognition represents the transaction price (purchase of Rivus Pharmaceuticals in August 2022 for TCHF 16 875), which was paid in a financing round together with other investors. For the valuation as at September 30, 2022, it is deemed to be appropriate to use the transaction price in USD, as it is a reasonable approximation of fair value at the valuation date given the fact that no events occurred which significantly impact the fair value.
In August 2022 8 733 538 Contingent Value Rights were allocated from a corporate action. The valuation as of September 30, 2022, is CHF 0.
For assets and liabilities carried at amortised cost, their carrying values are a reasonable approximation of fair value.