SWISS HELVETIA FUND INC, N-30D/A, 1996-08-09

SWISS HELVETIA FUND INC
N-30D/A, 1996-08-09

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THE SWISS
A SWISS
INVESTMENTS HELVETIA
FUND
FUND, INC.

THE SWISS HELVETIA FUND, INC.
Executive Offices
The Swiss Helvetia Fund, Inc.
630 Fifth Avenue
Suite 915
New York, New York 10111
(212) 486-4990
(212) 332-7930 Semi-Annual Report
For the Period Ended
NAV Direct Line June 30, 1996
(212) 486-4995

<PAGE>

THE SWISS HELVETIA FUND, INC.
- - --------------------------------------------------------------------------------

Directors and Officers

Paul Hottinguer Georges L. de Montebello
Chairman and President
Chief Executive Officer
Rodolphe Hottinger
Eric R. Gabus Executive Vice President
Vice Chairman and Chief Operating Officer
(Non officer)
Rudolf Millisits
Claude Frey Vice President
Director
Edward J. Veilleux
Jean-Louis Gillieron Vice President and
Director Treasurer

Baron Hottinger Brian C. Nelson
Director Vice President

Claude Mosseri-Marlio Paul R. Brenner, Esq.
Director Secretary

Stephen K. West, Esq. Joseph A. Finelli
Director Assistant Treasurer

Samuel B. Witt III, Esq.
Director

Investment Advisor
Hottinger Capital Corp.
630 Fifth Avenue
Suite 915
New York, New York 10111
(212) 332-7930

Administrator
Investment Company Capital Corp.

Custodian
PNC Bank, N.A.

Transfer Agent
PNC Bank, N.A.
(800) 852-4750

Legal Counsel
Paul R. Brenner, Esq.

Independent Auditors
Deloitte & Touche LLP

The Investment Advisor

The Fund is managed by Hottinger Capital Corp., which is 100% owned by the
Hottinger Group.

The Hottinger Group includes Banque Hottinguer, which was formed in Paris in
1786 and is one of Europe's oldest private banking firms. The Hottinger Group
has remained under the control of the Hottinger family through seven
generations. It has offices in New York, Zurich, Geneva, Paris and Luxembourg.

Executive Offices
The Swiss Helvetia Fund, Inc.
630 Fifth Avenue
Suite 915
New York, New York 10111
(212) 332-7930

For inquiries and reports:
(212) 486-4990
Fax (212) 486-4998

NAV Direct Line
(212) 486-4995

The Fund

The Swiss Helvetia Fund, Inc. 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,
listed on the New York Stock Exchange under the symbol "SWZ," is managed by
Hottinger Capital Corp.

Net Asset Value is calculated every Friday by 5:00 P.M. (Eastern Standard
Time). The most recent calculation is available by calling (212) 486-4995.
Weekly Net Asset Value is also published in Barron's, the Monday edition of
The Wall Street Journal and the Saturday edition of The New York Times.

<PAGE>

THE SWISS HELVETIA FUND, INC.
- - --------------------------------------------------------------------------------

Letter to Stockholders

A sense of euphoria prevailed over the Swiss market during the second
quarter, as investors, enthusiastic about the Ciba-Geigy/Sandoz alliance,
focused their attention on what other important sectors were likely candidates
for corporate restructuring and enhancement of shareholder value. The large
multi-national banks, a dormant sector of the market, were the object of intense
speculative activity. After an aborted attempt to merge Credit Suisse and Union
Bank of Switzerland, both Swiss Bank Corp. and Credit Suisse recently announced
profound changes in their corporate structures, with a complete reorganization
of their important asset management divisions. The buzz word used by Credit
Suisse is "increasing globalization."

Fund Results

Such wide-ranging changes within key sectors of the Swiss market have given
a predictable boost to share prices, so that the SPI Index closed the reporting
period at an all-time high. Since December 31, 1995, the Fund's assets have
risen from 347,168,865 Sfr. to 391,968,671 Sfr., an increase of 12.9%. Measured
in U.S. dollar terms, the increase was offset by the 8.5% rise of the dollar
versus the Swiss franc such that the net increase in U.S. dollar terms was 4.1%.
Despite the continuing positive outlook for the Swiss equities market, our
Fund's share price on the New York Stock Exchange did not keep up with the
increase in Net Asset Value, a phenomenon common to many closed-end funds. Our
Board of Directors is well aware of this phenomenon and is taking steps to
analyze what measures may be taken, if any, to reduce the discount.

- - --------------------------------------------------------------------------------
Financial Highlights
- - --------------------------------------------------------------------------------
June 30, June 30,
For the year ended: 1996 1995
- - --------------------------------------------------------------------------------
Total Net Assets
In million SFr. $392.0* $253.8
In million U.S. $ 313.5* 220.6
Exchange Rate (per U.S.$) 1.25 1.15
Net Asset Value per Share $25.57 $24.02
Market Price per Share (U.S. $) 21-1/4 21-1/2
Shares Outstanding 12,261,692* 9,186,692

*Includes 1995 Rights Offering proceeds and additional shares issued to
stockholders.

- - --------------------------------------------------------------------------------
Performance of The Swiss Helvetia Fund vs. SPI Index*
From inception (August 27, 1987) through June 30, 1996
In Swiss francs
- - --------------------------------------------------------------------------------

[GRAPH HERE]

The Fund SPI Index

+119.6% +113.6%

Aug. 28, 87 100.53 100.00
1987 76.45 68.27
1988 82.04 83.63
1989 101.86 100.97
1990 87.02 80.59
1991 98.68 93.42
1992 117.42 109.90
1993 175.61 165.73
1994 159.18 153.11
1995 193.33 188.41
6/28/96 219.58 213.58

*Gross of Fund expenses.

2
<PAGE>

THE SWISS HELVETIA FUND, INC.
- - --------------------------------------------------------------------------------

Domestic Developments

A cautionary note should be entered here as Swiss franc interest rates have
trended upwards lately, the consequence of a weakening Swiss franc. A further
rise in interest rates would inhibit any recovery of an already weak domestic
environment. Fortunately, most Swiss companies have large multinational
operations and their earnings continue to show double-digit growth. For example,
we are impressed by the acceleration of growth in the pharmaceutical and
agricultural sectors of Novartis. The market is priced at just over 14 times our
estimated 1997 earnings. We believe this is a fair valuation of the market.

Following an unexpectedly long period of testing, the eagerly awaited
Electronic Stock Exchange is likely to commence operations in August. Finally,
the number of Initial Public Offerings has surged in the last year. We have
participated to the extent possible, and this has benefited the Fund as demand
for these new growth companies exceeded supply.

Thank you for your continued interest in the Fund.

Sincerely,

/s/ Paul Hottinguer
Paul Hottinguer
Chairman and Chief Executive Officer

/s/ Georges L. de Montebello
Georges L. de Montebello
President

July 15, 1996

- - --------------------------------------------------------------------------------
The Swiss Helvetia Fund--Ten Largest Holdings (in U.S. dollars)
As of June 30, 1996
- - --------------------------------------------------------------------------------
% of Total
Cost Market Value Net Assets
- - --------------------------------------------------------------------------------
1. Roche Holding AG $ 16,329,129 $ 45,618,571 14.6%
2. Nestle AG 18,837,446 34,293,257 10.9
3. Sandoz AG* 13,843,034 32,624,190 10.4
4. Ciba-Geigy AG* 16,040,533 30,497,560 9.7
5. Union Bank of
Switzerland 7,787,832 15,311,276 4.9
6. Swiss Reinsurance 6,863,973 14,390,849 4.6
7. Zurich Insurance 8,702,686 13,638,909 4.4
8. ABB Asea Brown
Boveri Ltd. 9,197,118 12,383,009 3.9
9. Credit Suisse Holding 7,722,256 11,423,086 3.6
10. Swiss Bank
Corporation 5,795,222 8,072,098 2.6
- - --------------------------------------------------------------------------------
Total $111,119,229 $218,252,805 69.6%
- - --------------------------------------------------------------------------------
*To be renamed Novartis.

- - --------------------------------------------------------------------------------
The Swiss Helvetia Fund--Portfolio Holdings per Industry as of
June 30, 1996
- - --------------------------------------------------------------------------------
Pharmaceuticals 25.9%
Cash and Equiv. 2.5
Food, Luxury Goods 11.7
Transportation 0.2
Insurance 10.9
Machinery 4.0
Banks 11.6
Chemicals 12.7
Misc. Services 4.4
Utilities 1.4
Misc. Industries 4.0
Building Contractors 1.7
Electrical Engineering 8.4
Retailers 0.6

3
<PAGE>

THE SWISS HELVETIA FUND, INC.
- - --------------------------------------------------------------------------------
Statement of Net Assets June 30, 1996
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
- - --------------------------------------------------------------------------------
Common Stocks and Warrants - 97.5%
Banks - 11.6%
1,200 Baer Holdings Ltd.
Bearer Shares $ 1,295,896 0.4%
Banking group specializing in asset
management, investment consulting and
securities trading.
1,000 Banque Cantonale Vaudoise
Bearer Shares 285,577 0.1
Cantonal bank in the
western part of Switzerland.
120,000 Credit Suisse Holding*
Registered Shares 11,423,086 3.6
A global financial services
institution whose main holding
is Credit Suisse, one of
Switzerland's "Big Three" banks.
15,625 Schweizerische Bankgesellschaft*
(Union Bank of Switzerland)
Bearer Shares 15,311,276 4.9
Largest Swiss full-service bank.
Schweizerischer Bankverein*
(Swiss Bank Corporation)
40,790 Bearer Shares 8,059,459 2.6
3,950 Warrants 12,639 --
One of the three largest
international Swiss banks.
36,387,933 11.6

Building Contractors & Materials - 1.7%
1,000 Forbo Holdings Ltd.
Registered Shares 423,966 0.1
Manufacturer of wall and floor
coverings.
3,500 Holderbank Financiere Glarus AG
Bearer Shares 2,799,776 0.9
Large cement producer with
worldwide operations.

Building Contractors & Materials - (continued)
3,500 Keramik Holding AG Laufen
Bearer Shares $ 2,225,822 0.7%
One of the largest suppliers of
floor and wall tiles, sanitary
fittings, crockery and ceramics
in the world.
5,449,564 1.7

Chemicals - 12.7%
25,000 Ciba-Geigy AG*
Registered Shares 30,497,560 9.7
The largest chemical company in
Switzerland.
6,000 Clariant AG
Registered Shares** 2,203,024 0.7
Specializes in color chemistry
and manufactures a range
of dyestuffs, pigments, chemicals,
additives and masterbatches for
the textile, paper, leather, plastics,
synthetic fibers and paint
industries.
250 EMS Chemie Holding AG
Bearer Shares 1,053,916 0.3
Produces polymers and
manufactures high-grade
chemical intermediates and fine
chemicals. It also builds industrial
plants, develops and sells fuses
for civil and military use and
generates and distributes
electrical power.

4
<PAGE>

Electrical Engineering & Electronics - 8.4%
10,000 ABB Asea Brown Boveri Ltd.*
Bearer Shares 12,383,009 3.9
One of the largest electrical
engineering firms in the world.
6,000 Agie Holding AG
Registered Shares** 542,357 0.2
Leading manufacturer of spark
erosion machinery in Europe.

Electrical Engineering & Electronics - (continued)
700 Ascom Holdings Ltd.
Bearer Shares $ 705,544 0.2%
Through its subsidiaries, active
in telecommunications, services
automation and enterprise
networks throughout Europe
and the United States.
2,500 Belimo Automation AG
Registered Shares** 563,955 0.2
World market leader in damper
and volume control actuators for
ventilation and air conditioning
equipment.
495 Christ AG
Registered Shares 395,968 0.1
Manufactures and markets water
purification systems and produces
customized systems for high-tech,
industrial-scale water treatment
plants as well as standard systems.
700 Esec Holding AG
Bearer Shares 3,037,757 1.0
Market leader in the field of die
bonding technology used by
manufacturers of semiconductors.
2,500 Kaba Holding
Registered Shares** 969,922 0.3
Specializes in mechanical and
electronic security systems.
750 Micronas Semiconductor Holding AG
Bearer Shares 719,942 0.2
Develops, produces and markets
mixed-signal integrated circuits
and systems.
2,000 Phonak Holding AG
Registered Shares 2,015,839 0.6
A leader in hearing aids, ranked
no. 4 in the world.

5
<PAGE>

Common Stocks and Warrants - (continued)
Electrical Engineering & Electronics - (continued)
20,000 Swiss Corporation for Micro-
electronics and Watchmaking
Industries Ltd. (SMH)
Registered Shares $ 3,127,750 1.0%
Watchmaking company.
1,000 Swisslog Holding AG
Registered Shares 295,976 0.1
Produces, sells and installs
automation systems.
Zellweger Luwa AG
2,000 Bearer Shares** 1,839,853 0.6
1,300 Warrants Expiring 5/21/97** 10,139 --
Worldwide diversified industrial
and service company active mainly
in textile electronics, air filtering
and conditioning techniques.
26,608,011 8.4

Food, Luxury Goods - 11.7%
125 Lindt & Spruengli AG
Registered Shares 2,359,811 0.8
Major manufacturer of premium
Swiss chocolates.
30,000 Nestle AG*
Registered Shares 34,293,257 10.9
Largest food and beverage
processing company in the world
and Switzerland's largest company.
36,653,068 11.7

Insurance - 10.9%
750 Baloise-Holding
Registered Shares 1,631,869 0.5
Medium-sized insurer active in
all sectors of insurance.

Insurance - (continued)
14,000 Schweizerische Ruckversicherungs-
Gesellschaft*
(Swiss Reinsurance Company)
Registered Shares $14,390,849 4.6%
Second largest reinsurance
company in the world.
2,500 Swiss Life Insurance and
Pension (Rentenanstalt)
Participation Certificates 869,930 0.3
Medium-sized Swiss life
insurance company.
150 Vaudoise Assurances Holding
Bearer Shares 357,571 0.1
Regional insurance company
offering a wide range of services.
5,000 Winterthur Schweizerische
Versicherungs-Gesellschaft
Registered Shares 2,979,762 1.0
Leading Swiss international
insurance company.
50,000 Zurich Schweizerische
Versicherungs-Gesellschaft*
(Zurich Insurance)
Registered Shares 13,638,909 4.4
A large worldwide insurance
operator.
33,868,890 10.9

Machinery - 4.0%
1,000 Bobst Ltd.
Bearer Shares 1,443,884 0.5
Leading international
manufacturer of cardboard
packaging machines.

<PAGE>

THE SWISS HELVETIA FUND, INC.
- - --------------------------------------------------------------------------------
Statement of Net Assets (continued) June 30, 1996
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
- - --------------------------------------------------------------------------------
Common Stocks and Warrants - (continued)
Machinery - (continued)
2,000 Bossard Holding AG
Bearer Shares $ 799,936 0.3%
Manufactures fastening elements,
industrial adhesives, tools,
pneumatics and handling modules
and automated assembly systems.
3,000 Bucher Holding Company
Bearer Shares 2,339,812 0.8
Manufacturer of agricultural
machines, special vehicles, fruit
juice equipment and plastics machines.
900 Georg Fischer AG
Bearer Shares 1,040,317 0.3
A mechanical engineering group
that is a market leader in vehicle
engineering and pipeline systems.
11,500 Mikron Holding AG
Registered Shares** 1,214,303 0.4
Machine tools and milling machine
producer.
3,300 Saurer Gruppe Holding AG
Registered Shares 1,248,620 0.4
Machinery maker with dominant
market share.
Schindler Holding AG
1,000 Registered Shares 1,055,916 0.3
1,000 Warrants 1,800 --
One of the world's largest
elevator companies and a leading
Swiss machinery enterprise.
1,600 Schweizerische Industrie-
Gesellschaft (SIG)
Registered Shares 1,855,852 0.6
Medium-sized machinery manufacturer
with interests in the packaging, defense
and railway industries.

Machinery - (continued)
2,100 Sulzer Brothers Ltd.
Registered Shares $ 1,350,612 0.4%
A machine manufacturer and
worldwide leader in weaving
machines and sewing machines.
12,351,052 4.0

Miscellaneous Industries - 4.0%
4,500 Alusuisse-Lonza Holding AG
Registered Shares 3,718,503 1.2
A major aluminum producing and
processing company.
2,000 AFG Arbonia-Forster Holding AG
Bearer Shares 1,231,901 0.4
Manufacturer of heating
radiators, refrigeration kitchen
equipment and steel tubing.
1,100 Baumgartner Papiers S.A.
Registered Shares 426,766 0.1
Swiss paper company active in the
field of wholesale paper, paper
processing, manufacturing of cigarette
filters and capillary reservoirs.
370 Datwyler Holding AG
Bearer Shares 660,027 0.2
Diversified manufacturer of telecom-
munication cable, floor coverings
and precision steel tubing.
200 Disetronic
Bearer Shares 374,370 0.1
Leading company in medical
technology. Manufactures and
markets infusion systems and injection
systems used to administer insulin
and growth hormones.

7
<PAGE>

Miscellaneous Industries - (continued)
Kardex AG
2,000 Bearer Shares $ 591,953 0.2%
1,000 Participation Certificates 267,979 0.1
Specializes in industrial and office
storage systems, office machinery,
safety and computer software.
15,000 Oerlikon-Buhrle Holding AG
Registered Shares** 1,559,875 0.5
The diversified holding company includes
Bally (shoes and accessories), Balzers
and Leybold (surface technologies),
Oerlikon Contraves (military products
and space technology), Pilatus (aircraft),
Kunz and Dietfurt (threads and yarns),
real estate and hotels.
2,700 Phoenix Mecano AG
Bearer Shares 1,334,773 0.4
Leading Swiss packaging
manufacturer for the mechanical
engineering and electronics industry.
500 Sarna Kunststoff Holding AG
Registered Shares 527,958 0.2
Processor and manufacturer of plastic
materials for the building industry.
1,200 Stratec Holding AG
Registered Shares 1,166,307 0.4
Develops, produces and distributes
instruments and implants used in
orthopedic and maxilofacial surgery.
2,000 Vetropack Holding Ltd.
Bearer Shares 623,950 0.2
Through its subsidiaries, the company
manufactures packaging materials.
12,484,362 4.0

Miscellaneous Services - 4.4%
3,200 Compagnie Financiere Richemont AG
Bearer Shares $ 5,068,395 1.6%
Investment company with principal
interests in luxury goods and tobacco.
2,500 Edipresse SA
Bearer Shares 599,952 0.2
Operates printing companies,
newspapers, kiosks and bookshops.
1,500 Intershop Holding Ltd.
Bearer Shares 860,331 0.3
Involved in the construction and
funding of shopping centers and
property for commercial use, both
nationally and internationally.
850 Kuoni Travel Holding Ltd.
Registered Shares 1,951,444 0.6
Leader in the Swiss travel and tourism
sector with subsidiaries in the United
Kingdom, Germany, France and Austria.
4,500 Publicitas Holding SA
Participation Certificates 889,129 0.3
Largest Swiss advertising intermediary.
2,000 Societe Generale d'Affichage SA
Participation Certificates 1,023,918 0.3
Swiss advertising firm.
8,000 Societe Generale de Surveillance
Holding AG
Registered Shares 3,519,718 1.1
World's leading inspection company
and adjusting group.
13,912,887 4.4

8
<PAGE>

Pharmaceuticals - 25.9%
1,500 Ares Serono
Bearer Shares $ 1,319,894 0.4%
Develops and markets pharmaceutical
and diagnostic products, and is the
worldwide market leader in pharma-
ceutical products for the treatment
of infertility.
Roche Holding AG*
5,950 Dividend Rights Certificates 45,430,566 14.5
5,950 Warrants 188,005 0.1
Worldwide pharmaceutical company.
28,500 Sandoz AG*
Registered Shares 32,624,190 10.4
Second largest pharmaceutical
entity in Switzerland.
1,400 Schweizerhall Holding AG
Registered Shares 1,612,671 0.5
Wholesale trader in chemical and
pharmaceutical intermediate products,
as well as in the perfume and
fertilizer business.
81,175,326 25.9

Retailers - 0.6%
2,500 Fust Bearer
Bearer Shares $ 729,942 0.2%
Active in the electrical goods and
entertainment electronics business.
Involved in a rental, service/repair
business and has interests in real estate.
1,200 Jelmoli Holding Ltd.
Bearer Shares 681,545 0.2
Operates a network of retail/
service outlets throughout
Switzerland, including local
dry cleaners, auto body shops,
opticians, interior decorators, travel
agencies, restaurants, pharmacies
and retailers.
1,800 Prodega AG
Bearer Shares 503,960 0.2
Swiss market leader that operates
"Cash and Carry."
1,915,447 0.6

Transport - 0.2%
3,500 Danzas Holding AG
Participation Certificates 713,943 0.2
Third largest forwarding agent
in the world and the market
leader in Europe.

9
<PAGE>

THE SWISS HELVETIA FUND, INC.
- - --------------------------------------------------------------------------------
Statement of Net Assets (concluded) June 30, 1996
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
- - --------------------------------------------------------------------------------

Common Stocks and Warrants - (concluded)
Utilities - 1.4%
8,000 Elektrowatt Ltd.
Bearer Shares $ 2,962,963 1.0%
Sells electricity from wholly-owned
electric plants and has interests in
hydro and nuclear power plants.
3,000 Nokia - Maillefer Holding SA
Bearer Shares 1,259,899 0.4
Europe's leading supplier of
production systems and complete
services to the electric wire and
cable industry.
4,222,862 1.4

Total Common Stocks and Warrants
(Cost $183,197,535) 305,980,126 97.5

Time Deposits - 1.7%
6,500 Credit Suisse Holding
2.5%, due 7/1/96
(Cost $5,194,183) $ 5,199,584 1.7%

Total Investments
(Cost $188,391,718)*** 311,179,710 99.2

Other Assets in Excess
of Liabilities 2,369,408 0.8

Net Assets Applicable to
12,261,692 Shares of
Common Stock Outstanding $313,549,118 100.0%

Net Asset Value Per Share
($313,549,118 (divided by) 12,261,692) $25.57

*One of the ten largest portfolio holdings.
**Non-income producing security.
***Also aggregate cost for federal tax purposes.
See accompanying Notes to Financial Statements.

Dividend Reinvestment Plan
--------------------------

The Dividend Reinvestment Plan offers you a convenient and automatic way to
reinvest your income dividends and capital gains distributions in additional
shares of the Fund. For an enrollment form and detailed information about the
Plan, please contact the Fund's transfer agent at PNCBank, N.A., P.O. Box
8950, Wilmington, DE, 19899, (800) 852-4750. If your shares are held by your
brokerage firm, please contact your investment representative.

This report is sent to the stockholders of The Swiss Helvetia Fund, Inc. for
their information. It is not a prospectus, circular or representation intended
for use in the purchase or sale of shares of the Fund or of any securities
mentioned in this report.

--------------------------

Notice is hereby given in accordance with section 23(c) of The Investment
Company Act of 1940 that the Fund may purchase at market prices from time to
time shares of its common stock in the open market.

<PAGE>

THE SWISS HELVETIA FUND, INC.
- - --------------------------------------------------------------------------------
Statement of Operations For the Six Months Ended June 30, 1996
(Unaudited)
- - --------------------------------------------------------------------------------
Investment Income (Note A):
Dividends (Less foreign taxes withheld of $721,163) $ 4,086,597
Interest (Less foreign taxes withheld of $2,251) 43,231
Total income 4,129,828

Expenses:
Investment advisory fee (Note B) 1,248,841
Administration fee (Note B) 186,900
Directors' fees and related expenses (Note D) 84,896
Transfer agent fees (Note B) 56,680
Accounting fee (Note B) 52,232
Legal fee 51,999
Miscellaneous 45,339
Franchise fee 44,000
Audit fee 27,820
Custodian fee (Note B) 22,962
Printing and postage 15,799
Insurance 2,755
Total expenses 1,840,223
Net investment income 2,289,605

Net Realized and Unrealized Gain/(Loss) on Investments:
Net realized gain from security transactions 5,611,355
Net realized foreign exchange loss (50,883)
Net unrealized appreciation of investments 4,510,162
Net unrealized depreciation on translation of assets
and liabilities denominated in foreign currency (15,212)
Net gain on investments 10,055,422

Net Increase in Net Assets Resulting from Operations $12,345,027

- - --------------------------------------------------------------------------------
See accompanying Notes to Financial Statements.

<PAGE>

THE SWISS HELVETIA FUND, INC.
- - --------------------------------------------------------------------------------

Statements of Changes in Net Assets

Six Months Ended
June 30, 1996 Year Ended
(Unaudited) December 31, 1995
- - ----------------------------------------------------------------------------------------------------------------
<S> <C>
Increase/(Decrease) in Net Assets:
Operations:
Net investment income $ 2,289,605 $ 619,796
Net realized foreign exchange gain/(loss) (50,883) 4,617,468
Net realized gain from security transactions 5,611,355 2,652,592
Net unrealized appreciation of investments 4,510,162 64,578,521
Net unrealized appreciation/(depreciation) on translation of
assets and liabilities denominated in foreign currency (15,212) 6,323
Net increase in net assets resulting from operations 12,345,027 72,474,700

Dividends to Shareholders from:
Net investment income -- (619,796)
Capital gains distribution -- (7,174,991)
Total distributions to shareholders -- (7,794,787)

Capital Share Transactions:
Value of shares issued in rights offering -- --
Value of 3,075,000 shares issued in rights offering, net -- 54,729,623
Total increase from capital share transactions -- 54,729,623
Total increase in net assets 12,345,027 119,409,536

Net Assets:
Beginning of period 301,204,091 181,794,555
End of period $313,549,118 $301,204,091

- - ----------------------------------------------------------------------------------------------------------------
</TABLE>

See accompanying Notes to Financial Statements.

<PAGE>

THE SWISS HELVETIA FUND, INC.
- - --------------------------------------------------------------------------------

Financial Highlights
Contained below is per share operating performance data for a share of common
stock outstanding, total investment return, ratios to average net assets and
other supplemental data. This information has been derived from information
provided in the financial statements and market price data for the Fund's
shares.

<TABLE>
<CAPTION>
Six Months
Ended
June 30, 1996 Year Ended December 31,
-----------------------------------------------------------------------
(Unaudited) 1995 1994 1993 1992 1991
<S> <C>
Per Share Operating Performance:
Net asset value at beginning of period $24.56 $19.79 $20.96 $14.62 $13.80 $13.17

Income from Investment Operations:
Net investment income 0.19 0.06 0.03 0.08 0.05 0.01
Net realized and unrealized gain
on investments(1) 0.82 6.82 0.12 6.59 1.04 0.65
Total from Investment Operations 1.01 6.88 0.15 6.67 1.09 0.66
Capital charge -- (1.46) (0.06) -- (0.24) --

Less Distributions:
Dividends from net investment income
and net realized currency gain/(loss) -- (0.06) (0.27) (0.08) (0.03) (0.03)
Distributions from net realized
capital gains -- (0.59)(2) (0.99) (0.25) -- --
Total distributions -- (0.65) (1.26) (0.33) (0.03) (0.03)
Net asset value at end of period $25.57 $24.56 $19.79 $20.96 $14.62 $13.80
Market value per share, end of period $21.25 $21.25 $18.88 $22.75 $13.88 $13.25

Total Investment Return(3):
Based on market value per share 0.00%(4) 16.30% (10.67)% 65.39% 6.55% 11.84%
Based on net asset value per share 4.11%(4) 26.28% 1.47% 44.90% 7.72% 5.03%

Ratios to Average Net Assets:
Expenses 1.23%(5) 1.38% 1.57% 1.50% 1.69% 1.85%
Net investment income 1.53%(5) 0.27% 0.02% 0.29% 0.39% 0.07%

Supplemental Data:
Net assets at end of period (000) $313,549 $301,204 $181,795 $184,698 $128,763 $110,500
Average net assets during period (000) $301,662 $231,234 $184,112 $151,936 $120,850 $105,593
Portfolio turnover rate 10% 10% 28% 20% 13% 41%
- - --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) For the period ended June 30, 1996 and the years ended 1995 and 1994, net
realized currency gains are included herein. Net realized currency
gains/(losses) in prior years are included in net investment income.
(2) For 1995 tax purposes, the income distributions were $0.38 per share
ordinary income and $0.27 per share long-term capital gains.
(3) Total investment return based on market value differs from that as measured
based on net asset value due to an increase or decrease in the discount to
net asset value at which the Fund's shares traded throughout the year. Total
investment return excludes the effects of sales loads and commissions.
(4) Aggregate Total Return.
(5) Annualized.
See accompanying Notes to Financial Statements.

<PAGE>

THE SWISS HELVETIA FUND, INC.
- - --------------------------------------------------------------------------------

Notes to Financial Statements

A. Significant Accounting Policies - The Swiss Helvetia Fund, Inc. (the "Fund")
was incorporated in Delaware on October 24, 1986 and commenced operations on
August 27, 1987. The Fund is registered under the Investment Company Act of
1940, as amended, as a closed-end, non-diversified management investment
company. The Fund's investment objective is to seek long-term growth of capital
through investment in equity and equity-linked securities of Swiss companies.

The preparation of financial statements in conformity with generally
accepted accounting principles 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 revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Significant accounting policies are as follows:

Security Valuation - Investments are stated at value. All securities that
are traded on the Zurich, Geneva or Basel stock exchanges and for which
market quotations are readily available are valued at the last sales price
on the day of valuation or, if no sales prices are available at the time, at
the mean between the closing bid and asked prices for that day. For
securities traded on two or more of the three exchanges, the Fund will use
prices reported on the Zurich exchange if the security is listed there, and
if not, the prices reported on the Geneva or Basel exchange. Securities that
are not traded on any of the three exchanges will be valued, if bid and
asked quotations are available, at the mean between the current bid and
asked price. If bid and asked quotations are not available, then such
securities will be valued at fair value as determined in good faith by or
under the direction of the Board of Directors of the Fund.

Securities Transactions and Investment Income - Securities transactions are
recorded on the trade date. The cost of investments sold is determined by
use of the specific identification method for both financial reporting and
income tax purposes. Interest income is recorded on an accrual basis;
dividend income is recorded on the ex-dividend date. Swiss withholding tax
is recorded as an expense, net of an amount receivable from Swiss tax
authorities pursuant to a tax treaty.

Foreign Currency Translations - The books and records of the Fund are
maintained in United States dollars. Swiss franc amounts are translated into
United States dollars on the following basis:

(bullet) Asset and liability accounts are adjusted to reflect the current
exchange rate at the end of the period.

(bullet) Exchange gain or loss that occurs because of a change in exchange
rates between the time an income or expense amount is accrued and
the time it is realized is included in net realized foreign
exchange gain for the year.

(bullet) Securities are recorded at cost based upon exchange rates at the
time Swiss francs are purchased or received. Exchange rates are
identified on a first-in, first-out basis.

It is not practical to distinguish that portion of the results of operations
of the Fund that arise as a result of changes in the exchange rates from
fluctuations that arise from changes in market prices of investments during
the period.

Federal Income Tax - No provision is made for federal income taxes as it is
the Fund's intention to continue to qualify as a regulated investment
company under Subchapter M of the Internal Revenue Code and to make
requisite distributions to shareholders that will be sufficient to relieve
it from all or substantially all federal income taxes. The Fund's
policy is to distribute to shareholders substantially all of its taxable
net investment income and net realized long-term capital gains.

B. Investment Advisory Fee, Transactions with Affiliates and Other Fees -
Hottinger Capital Corp. ("HCC"), jointly owned by Hottinger U.S., Inc. and
Hottinger & Cie (Zurich), serves as the Fund's investment advisor. As
compensation for its advisory services at June 30, 1996, HCC receives
from the Fund an annual fee, calculated and paid monthly, at the following
annual rates based upon the Fund's average month-end net assets: 1.00% of
the first $60 million, .90% of the next $40 million, .80% of the next $100
million and .70% of that portion in excess of $200 million. At June 30,
1996, accrued advisory fees were $203,101. For the period ended June 30,
1996, the Fund paid brokerage commissions of approximately $21,500 to
Hottinger & Cie.

<PAGE>

THE SWISS HELVETIA FUND, INC.
- - --------------------------------------------------------------------------------

Notes to Financial Statements (concluded)

Investment Company Capital Corp. ("ICC"), a subsidiary of Alex. Brown
Financial Corp., serves as the Fund's administrator. As compensation for
providing administrative services at June 30, 1996, ICC receives from the
Fund an annual fee, calculated daily and paid monthly, at the following
rates based upon the Fund's average monthly net assets: .20% of the first
$75 million, .15% of the next $75 million, .10% of the next $75 million and
.05% of that portion in excess of $225 million.

Certain officers and/or directors of the Fund are officers and/or directors
of HCC, Hottinger U.S., Inc., Hottinger & Cie and ICC.

PNC Bank, N.A., a wholly-owned subsidiary of PNC Financial Corp., acts as
the Fund's custodian and transfer agent. PNC Bank and the Fund have entered
into an agreement with Credit Suisse providing for the custody of Swiss
securities held by the Fund.

As compensation for providing accounting services, ICC receives from the
Fund an annual fee, calculated weekly and paid monthly, based on the Fund's
average daily net assets. ICC received $52,232 for accounting services for
the period ended June 30, 1996.

C. Capital Share Transactions - There are 50 million shares of $.001 par
value common stock authorized. Of the 12,261,692 shares outstanding at June
30, 1996, HCC owned 13,432 shares. During 1995, the Fund issued 3,075,000
new shares of common stock under a non-transferable rights offering to its
shareholders, which netted proceeds of $54,729,623.

D. Directors' Fees - The Fund pays approximately $7,500 per annum in
compensation to each director who is not affiliated with the Fund,
its investment advisor or administrator, except for the Chairman of
the Audit Committee. The Chairman of the Audit Committee receives an
annual fee of approximately $8,250. In addition, each director who is
not so affiliated receives $750 for each attended directors' meeting and
$750 for each committee meeting attended if held separately, and
reimbursement for out-of-pocket expenses. At June 30, 1996, accrued
directors' fees were $52,134.

E. Investment Transactions - Purchases and sales of securities, other than
short-term obligations, aggregated $31,232,149 and $25,895,055,
respectively, for the period ended June 30, 1996. For federal tax purposes,
aggregate gross unrealized appreciation for all securities in which there
is an excess of value over tax cost was $124,131,525, aggregate gross
unrealized depreciation for all securities in which there is an excess of
tax cost over value was $1,343,533 and net unrealized appreciation was
$122,787,992.

F. Net Assets - At June 30, 1996, net assets consisted of:

Paid-in capital $182,439,897
Undistributed net income,
realized gain from
security and foreign
exchange transactions 8,326,805
Unrealized appreciation of
investments 122,787,992
Unrealized translation loss (5,576)

$313,549,118

1996 Annual Meeting of Stockholders--Voting Results

At the May 15, 1996 Annual Meeting of Stockholders, Jean-Louis Gillieron, Baron
Hottinger and Samuel B. Witt, III were re-elected to the Board of Directors for
three-year terms that expire in 1999. In addition, the accounting firm Deloitte
& Touche, LLP was selected as the Fund's independent auditors for the calendar
year ending December 31, 1996. Deloitte & Touche has served as the Fund's
independent auditors since 1987.