A Swiss THE 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 10111-0001
1-888-SWISS-00
(212) 332-2760
http://www.swz.com
Quarterly Report
For the Period Ended
September 30, 1996
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THE SWISS HELVETIA FUND, INC.
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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 Treasurer
Director Scott J. Liotta
Baron Hottinger Vice President
Director Paul R. Brenner, Esq.
Claude Mosseri-Marlio Secretary
Director Joseph A. Finelli
Stephen K. West, Esq. Assistant Treasurer
Director
Samuel B. Witt III, Esq.
Director
Investment Advisor
Hottinger Capital Corp.
630 Fifth Avenue
Suite 915
New York, New York 10111-0001
(212) 332-7930
Administrator
Investment Company Capital Corp.
Custodian
PNCBank, N.A.
Transfer Agent
PNC Bank, N.A.
(800) 852-4750
Legal Counsel
Paul R. Brenner, Esq.
and
Christy & Viener
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 10111-0001
1-888-SWISS-00 (1-888-794-7700)
(212) 332-2760
For inquiries and reports:
1-888-SWISS-00 (1-888-794-7700)
Fax (212) 332-7931
Website Address
http://www.swz.com
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 6:00 P.M. (Eastern Standard Time).
The most recent calculation is available by calling 1-888-SWISS-00. 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.
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THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders
Period in Review
Low interest rates, low inflation rates, and limited domestic growth were
prevalent in Switzerland throughout the first three quarters of 1996. The
positive development of global multinational companies continues to dominate the
Swiss market as investors flock to the pharmaceutical, chemical, and industrial
sectors. In anticipation of the formation of NOVARTIS, the product of the
Ciba-Geigy and Sandoz consolidation, the Fund has continued to add to its
Ciba-Geigy position. As the Largest Increases in Large Caps table (top right)
illustrates, this overweighting policy, in conjunction with a reduction in the
Roche position (5% decrease over the same time period), has produced excellent
results for the Fund and is expected to do so for the foreseeable future.
Another positive development has been the successful startup of the Swiss
Electronic Stock Exchange. The exchange, which commenced operations in August
and is now running efficiently, has also helped the mid and small cap companies
increase their publicity and availability to investors. The Fund has been a
strong advocate for the Electronic Stock Exchange development for the past ten
years, and we are pleased to see the capabilities of the Swiss market advance.
We believe it is a major step in making Switzerland one of the most efficient
markets in Europe.
Financial Highlights
Since January 1, 1996, the Fund's net assets in Swiss francs have increased
11.8%. As the Financial Highlights table (bottom right) illustrates, the value
of the U.S. dollar against the Swiss franc has increased 9.6% during the past
nine months. As a result of the U.S. dollar's strength, the Fund's closing net
asset value per share of $25.23 on September 30,
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The Swiss Helvetia Fund--
Largest Increases in Large Caps
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Market Price Market Price
in US$ in US$ %
as of as of Change
9/30/96 12/31/95 in US$
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1.Ciba-Geigy AG* (R) $1,278 $881 45.1%
2.Sandoz AG* (R) 1,200 916 31.0
3.Societe Generale de
Surveillance
Holding AG (R) 430 343 25.4
4.SMH (R) 151 131 15.3
5.Compagnie Financiere
Richemont AG (B) 1,626 1,501 8.3
6.ABB Asea Brown
Boveri Ltd. (B) 1,222 1,163 5.1
*To be renamed NOVARTIS, after completion of the Ciba-Geigy/Sandoz
consolidation.
(R)=Registered Shares.
(B)=Bearer Shares.
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Financial Highlights
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September 30, December 31, %
1996 1995 Change
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Net Asset Value per Share $25.23 $24.56 2.7%
Total Net Assets
In million U.S. $ 309.3* 301.2* 2.7
In million SFr. 388.2* 347.2 11.8
Exchange Rate (per U.S. $) 1.26 1.15 9.6
Market Price per Share (U.S. $) 21.25 21.25 0.0
Shares Outstanding 12,261,692* 12,261,692* 0.0
*Includes 1995 Rights Offering proceeds and additional shares issued to
stockholders.
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THE SWISS HELVETIA FUND, INC.
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1996 is only 2.7% higher than the net asset value per share of $24.56 on
December 31, 1995. Since the Fund has a policy of not engaging in currency
hedging, its net asset value in U.S. dollars is affected by the U.S.
dollar/Swiss franc exchange rate.
New Phone Number & Website Address
The Fund has instituted a toll-free number to handle any inquiries or
report requests. This number will also provide the Fund's current NAV and market
price, which are updated every Friday by 6:00 P.M. (Eastern Standard Time).
The new toll free number is 1-888-SWISS-00 (1-888-794-7700). This information is
also available at the Fund's new Website address, http://www.swz.com.
Thank you for your continued interest in the Fund.
Sincerely,
/s/Paul Hottinger
Paul Hottinguer
Chairman and Chief Executive Officer
/s/ Georges L. de Montebello
Georges L. de Montebello
President
October 18, 1996
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The Swiss Helvetia Fund--Ten Largest Holdings (in U.S. dollars)
As of September 30, 1996
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% of Total
Cost Market Value Net Assets
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1. Roche Holding AG $ 16,329,129 $ 43,779,978 14.2%
2. Sandoz AG* 13,843,034 34,197,275 11.1
3. Ciba-Geigy AG* 17,347,434 33,227,631 10.7
4. Nestle AG 18,418,475 32,301,809 10.4
5. Zurich Insurance 9,778,047 14,929,488 4.8
6. Union Bank of
Switzerland 7,479,757 14,425,145 4.7
7. Credit Suisse Holding 10,607,620 14,226,755 4.6
8. Swiss Reinsurance 6,669,935 14,219,584 4.6
9. ABB Asea Brown
Boveri Ltd. 10,422,492 13,444,347 4.3
10. Swiss Bank
Corporation 7,576,684 9,541,656 3.1
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Total $118,472,607 $224,293,668 72.5%
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*To be renamed NOVARTIS, after completion of the Ciba-Geigy/Sandoz
consolidation.
3
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THE SWISS HELVETIA FUND, INC.
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Statement of Net Assets September 30, 1996
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
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Common Stocks and Warrants - 97.1%
Banks - 12.9%
Baer Holdings Ltd.
1,200 Bearer Shares $ 1,249,622 0.4%
Banking group specializing in asset
management, investment consulting and
securities trading.
Banque Cantonale Vaudoise
1,000 Bearer Shares 278,065 0.1
Cantonal bank in the
western part of Switzerland.
Credit Suisse Holding*
144,000 Registered Shares 14,226,755 4.6
A global financial services
institution whose main holding
is Credit Suisse, one of
Switzerland's "Big Three" banks.
Schweizerische Bankgesellschaft*
(Union Bank of Switzerland)
15,000 Bearer Shares 14,425,145 4.7
Largest Swiss full-service bank.
Schweizerischer Bankverein*
(Swiss Bank Corporation)
50,000 Bearer Shares 9,531,113 3.1
3,950 Warrants Expiring 6/30/00** 10,543 --
One of the three largest
international Swiss banks.
39,721,243 12.9
Building Contractors & Materials - 1.3%
Holderbank Financiere Glarus AG
3,100 Bearer Shares 2,247,630 0.7
Large cement producer with
worldwide operations.
Keramik Holding AG Laufen
3,500 Bearer Shares 1,952,035 0.6
One of the largest suppliers
in the world of floor and
wall tiles, sanitary fittings,
crockery and ceramics.
4,199,665 1.3
Percent
No. of of Net
Shares Security Value Assets
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Chemicals - 13.5%
Ciba-Geigy AG*
26,000 Registered Shares $ 33,227,631 10.7%
The largest chemical company in
Switzerland.
Clariant AG
3,000 Registered Shares** 1,039,758 0.3
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.
Gurit-Heberlein AG
1,100 Bearer Shares 2,020,158 0.7
European market leader for wind
screen bonding systems, ski bases
and optically pure thermoplastic
sheeting for the auto industry.
Immuno International AG
1,800 Bearer Shares 1,274,958 0.4
Develops, manufactures and
supplies biological products, blood
products and human plasma
derivatives.
Siegfried AG
3,200 Registered Shares 2,875,946 0.9
International producer and
supplier of chemicals and pharma-
ceuticals for major businesses.
Schweizerhall Holding AG
1,400 Registered Shares 1,438,929 0.5
Wholesale trader in chemical and
pharmaceutical intermediate
products, as well as in the perfume
and fertilizer businesses.
41,877,380 13.5
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THE SWISS HELVETIA FUND, INC.
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Statement of Net Assets (continued) September 30, 1996
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
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Common Stocks and Warrants - (continued)
Electrical Engineering & Electronics - 7.7%
ABB Asea Brown Boveri Ltd.*
11,000 Bearer Shares $ 13,444,347 4.3%
One of the largest electrical
engineering firms in the world.
Ascom Holdings Ltd.
700 Bearer Shares 725,042 0.2
Through its subsidiaries,
active in telecommunications, services
automation and enterprise networks
throughout Europe and the United
States.
Belimo Automation AG
2,500 Registered Shares 561,708 0.2
World market leader in damper
and volume control actuators for
ventilation and air conditioning
equipment.
Christ AG
495 Registered Shares** 394,391 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.
Esec Holding AG
500 Bearer Shares 1,989,881 0.7
Market leader in the field of die
bonding technology used by
manufacturers of semiconductors.
Kaba Holding
3,000 Registered Shares** 1,171,221 0.4
Specializes in mechanical and
electronic security systems.
Micronas Semiconductor Holding AG
970 Bearer Shares** 881,045 0.3
Develops, produces and markets
mixed-signal integrated circuits
and systems.
Phonak Holding AG
2,000 Registered Shares 1,880,328 0.6
A leader in hearing aids, ranked
fourth in the world.
Percent
No. of of Net
Shares Security Value Assets
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Electrical Engineering & Electronics - (continued)
Swiss Corporation for Micro-
electronics and Watchmaking
Industries Ltd. (SMH)
15,000 Registered Shares $ 2,264,760 0.7%
Watchmaking company.
TAG Heuer International SA
1,000 Registered Shares** 196,000 0.1
Designs, produces and markets
Swiss sports watches and
chronographs. The company's
products are sold in over
100 countries.
Zellweger Luwa AG
500 Bearer Shares 352,562 0.1
1,300 Warrants Expiring 5/21/97** 3,004 --
Worldwide diversified industrial
and service company active mainly in
textile electronics, air filtering
and conditioning techniques.
23,864,289 7.7
Food, Luxury Goods - 11.7%
Hero AG
3,000 Bearer Shares 1,455,661 0.5
Leading Swiss manufacturer
of branded jams and preserves.
Lindt & Spruengli AG
127 Registered Shares 2,347,542 0.8
Major manufacturer of premium
Swiss chocolates.
Nestle AG*
29,000 Registered Shares 32,301,809 10.4
Largest food and beverage
processing company in the world
and Switzerland's largest company.
36,105,012 11.7
5
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THE SWISS HELVETIA FUND, INC.
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Statement of Net Assets (continued) September 30, 1996
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
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Common Stocks and Warrants - (continued)
Insurance - 11.3%
Baloise-Holding
750 Registered Shares $ 1,568,600 0.5%
Medium-sized insurer active in
all sectors of insurance.
Schweizerische Ruckversicherungs-
Gesellschaft*
(Swiss Reinsurance Company)
13,500 Registered Shares** 14,219,584 4.6
Second largest reinsurance
company in the world.
Swiss Life Insurance and
Pension (Rentenanstalt)
2,500 Participation Certificates 824,635 0.3
Medium-sized Swiss life
insurance company.
Winterthur Schweizerische
Versicherungs-Gesellschaft
5,500 Registered Shares 3,391,762 1.1
Leading Swiss international
insurance company.
Zurich Schweizerische
Versicherungs-Gesellschaft*
(Zurich Insurance)
54,000 Registered Shares 14,929,488 4.8
A large worldwide insurance
operator.
34,934,069 11.3
Machinery - 3.6%
Bobst Ltd.
1,000 Bearer Shares 1,298,701 0.4
Leading international
manufacturer of cardboard
packaging machines.
Bossard Holding AG
1,500 Bearer Shares 560,513 0.2
Manufactures fastening elements,
industrial adhesives, tools,
pneumatics and handling modules
and automated assembly systems.
Percent
No. of of Net
Shares Security Value Assets
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Machinery - (continued)
Bucher Holding Company
2,500 Bearer Shares $ 1,872,361 0.6%
Manufacturer of agricultural
machines, special vehicles, fruit
juice equipment and plastics machines.
Mikron Holding AG
11,500 Registered Shares** 1,227,791 0.4
Machine tools and milling machine
producer.
Nokia-Maillefer Holding SA
2,500 Bearer Shares 991,953 0.3
Europe's leading supplier of
production systems and complete
services to the electric wire and
cable industry.
Saurer Gruppe Holding AG
4,000 Registered Shares** 1,724,165 0.6
Machinery maker with dominant
market share.
Schindler Holding AG
1,000 Registered Shares 956,099 0.3
1,000 Warrants Expiring 12/16/96** 239 --
One of the world's largest
elevator companies and a leading
Swiss machinery enterprise.
Schweizerische Industrie-
Gesellschaft (SIG)
1,300 Registered Shares 1,522,588 0.5
Medium-sized machinery manufacturer
with interests in the packaging, defense
and railway industries.
Sulzer Brothers Ltd.
1,800 Registered Shares 1,056,968 0.3
A machine manufacturer and
worldwide leader in weaving
machines and sewing machines.
11,211,378 3.6
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THE SWISS HELVETIA FUND, INC.
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Statement of Net Assets (continued) September 30, 1996
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
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Common Stocks and Warrants - (continued)
Miscellaneous Industries - 4.3%
Alusuisse-Lonza Holding AG
4,500 Registered Shares $ 3,373,835 1.1%
A major aluminum producing and
processing company.
AFG Arbonia-Forster Holding AG
2,000 Bearer Shares 1,003,904 0.3
Manufacturer of heating
radiators, refrigeration kitchen
equipment and steel tubing.
Baumgartner Papiers S.A.
1,100 Registered Shares 380,368 0.1
Swiss paper company active in the
field of wholesale paper, paper
processing, manufacturing of cigarette
filters and capillary reservoirs.
Datwyler Holding AG
370 Bearer Shares 598,438 0.2
Diversified manufacturer of telecom-
munication cable, floor coverings
and precision steel tubing.
Disetronic
800 Bearer Shares** 1,685,921 0.5
Leading company in medical technology.
Manufactures and markets infusion
systems and injection systems
used to administer insulin and
growth hormones.
Huber & Suhner AG
800 Registered Shares 834,993 0.3
Manufactures a wide range of
products, from cables for energy
and electrical transmission to
special products such as rubber.
Kardex AG
2,000 Bearer Shares 581,627 0.2
1,000 Participation Certificates 286,830 0.1
Specializes in industrial and office
storage systems, office machinery,
safety and computer software.
Percent
No. of of Net
Shares Security Value Assets
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Miscellaneous Industries - (continued)
Oerlikon-Buhrle Holding AG
15,000 Registered Shares** $ 1,508,844 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.
Phoenix Mecano AG
2,700 Bearer Shares 1,301,490 0.4
Leading Swiss packaging
manufacturer for the mechanical
engineering and electronics industry.
Stratec Holding AG
1,500 Registered Shares** 1,601,466 0.5
Develops, produces and distributes
instruments and implants used in
orthopedic and maxilofacial surgery.
Vetropack Holding Ltd.
800 Bearer Shares 180,385 0.1
Through its subsidiaries, the company
manufactures packaging materials.
13,338,101 4.3
Miscellaneous Services - 4.4%
Compagnie Financiere Richemont AG
3,200 Bearer Shares 5,203,729 1.7
Investment company with principal
interests in luxury goods and tobacco.
Edipresse SA
2,500 Bearer Shares 517,887 0.2
Operates printing companies,
newspapers, kiosks and bookshops.
Intershop Holding Ltd.
1,500 Bearer Shares 834,196 0.3
Involved in the construction and
funding of shopping centers and
property for commercial use, both
nationally and internationally.
7
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THE SWISS HELVETIA FUND, INC.
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Statement of Net Assets (continued) September 30, 1996
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
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Common Stocks and Warrants - (concluded)
Miscellaneous Services- (continued)
Kuoni Travel Holding Ltd.
850 Registered Shares $ 1,896,263 0.6%
Leader in the Swiss travel and tourism
sector with subsidiaries in the United
Kingdom, Germany, France and Austria.
Publicitas Holding SA
4,500 Participation Certificates 745,757 0.2
Largest Swiss advertising intermediary.
Societe Generale d'Affichage SA
2,000 Participation Certificates 878,018 0.3
Swiss advertising firm.
Societe Generale de Surveillance
Holding AG
8,000 Registered Shares 3,441,957 1.1
World's leading inspection
company and adjusting group.
13,517,807 4.4
Pharmaceuticals - 25.6%
Ares Serono
1,200 Bearer Shares 1,185,563 0.3
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 43,779,978 14.2
Worldwide pharmaceutical company.
Sandoz AG*
28,500 Registered Shares 34,197,275 11.1
Second largest pharmaceutical
entity in Switzerland.
79,162,816 25.6
Percent
No. of of Net
Shares Security Value Assets
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Retailers - 0.6%
Fust AG
2,500 Bearer Shares $ 663,294 0.2%
Active in the electrical goods and
entertainment electronics business.
Involved in a rental, service/repair
business and has interests in real estate.
Jelmoli Holding Ltd.
1,200 Bearer Shares 573,659 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.
Prodega AG
1,800 Bearer Shares 570,074 0.2
Swiss market leader that operates
"Cash and Carry."
1,807,027 0.6
Transport - 0.2%
Danzas Holding AG
3,500 Participation Certificates 672,058 0.2
Third largest forwarding agent
in the world and the market
leader in Europe.
533,462 Total Common Stocks and Warrants
(Cost $183,300,618) 300,410,845 97.1
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THE SWISS HELVETIA FUND, INC.
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Statement of Net Assets (concluded) September 30, 1996
(Unaudited)
Percent
Par of Net
(000) Security Value Assets
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Time Deposits - 2.9%
11,200 Credit Suisse Holding
1.75%, due 10/1/96
(Cost $8,921,459) $ 8,923,592 2.9%
Total Investments
(Cost $192,222,077)*** 309,334,437 100.0
Percent
of Net
Value Assets
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Other Assets in Excess
of Liabilities $ 2,998 --
Net Assets Applicable to
12,261,692 Shares of
Common Stock Outstanding $309,337,435 100.0%
Net Asset Value Per Share
($309,337,435 / 12,261,692) $25.23
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*One of the ten largest portfolio holdings.
**Non-income producing security.
***Also aggregate cost for federal tax purposes.
9
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THE SWISS HELVETIA FUND, INC.
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Dividend Reinvestment Plan
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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 PNC Bank, 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.
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