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 10111-0001
1-888-SWISS-00 Quarterly Report
(212) 332-2760 For the Period Ended
http://www.swz.com September 30, 1997
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THE SWISS HELVETIA FUND, INC.
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Directors and Officers
Paul Hottinguer
Chairman and
Chief Executive Officer
Eric R. Gabus
Vice Chairman
(Non officer)
Claude Frey
Director
Jean-Louis Gillieron
Director
Baron Hottinger
Director
Claude Mosseri-Marlio
Director
Stephen K. West, Esq.
Director
Samuel B. Witt III, Esq.
Director
Rodolphe Hottinger
President and
Chief Operating Officer
Rudolf Millisits
Vice President
Edward J. Veilleux
Vice President and Treasurer
Scott J. Liotta
Vice President
Paul R. Brenner, Esq.
Secretary
Joseph A. Finelli
Assistant Treasurer
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
PNC Bank, 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 or
by accessing our Website. 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
Third Quarter Results
After an exceptional performance in the first half of 1997, the Swiss stock
market entered a phase of consolidation during the third quarter. The
third-quarter performance of the benchmark Swiss Performance Index (SPI)
resulted in a gain of only 2.2% in Swiss franc terms and 2.9% in U.S. dollar
terms. For the first nine months of 1997, however, the SPI appreciated 44.4% in
Swiss franc terms and 33.2% in U.S. dollar terms.
The performance of The Swiss Helvetia Fund's net asset value has been
consistent with these numbers, with returns in U.S. dollar terms of 1.9% for the
third quarter and 32.0% for the first nine months, thereby outperforming the
Standard & Poor's 500 Index (S&P 500), which had a nine-month total return of
29.7%, and other relevant indices (see table, top right). Despite a marginal
increase in the discount to net asset value, the Fund's share price also
slightly outperformed the S&P 500 for the past nine months.
The third quarter also saw a more stable Swiss franc/U.S. dollar exchange
ratio, which was $0.68 at the beginning of the period and $0.69 at the end.
We believe that the Fund continues to be attractive because it provides the
opportunity to buy high quality assets at historic discounts. In times when
stock market valuations are historically rich, the Fund should be attractive to
investors looking for lower priced assets.
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Total Return Performance Based on Net Asset Value Per Share*
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In U.S. dollars
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For the For the Year Ended
9 Months Ended December 31,
September 30, 1997 1996 1995 1994
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The Swiss Helvetia Fund 32.0% 2.0% 28.2% 1.1%
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S&P 500 Index 29.7% 23.0% 37.5% 1.3%
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EAFE Index 10.4% 6.1% 11.2% 7.8%
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Lipper European Fund Average 20.3% 2.4% 15.2% 24.5%
*These figures assume the reinvestment of dividends and capital gains
distributions and exclude the impact of any sales charge. If the sales charge
were reflected, the quoted performance would be lower. The Standard & Poor's
500 Index is an unmanaged index that is widely recognized as an indicator of
general U.S. equity market performance. The Morgan Stanley Europe, Australia
and Far East (EAFE) Index is an unmanaged index that is widely recognized as an
indicator of general international equity performance. The Lipper European Fund
Average is an index of approximately 80 managed funds that invest in equity
securities in European markets. Past performance is not an indicator of future
results.
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THE SWISS HELVETIA FUND, INC.
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Swiss Market in Review
The Swiss market, despite a correction in August, is still among the best
performers so far this year. Investors have been recognizing the efforts made by
Swiss companies to increase shareholder value. In our view, Switzerland remains
ahead of other continental European countries in corporate restructuring and
efficient use of capital (including distributions of excess capital to
shareholders) and is the country most in line with U.S. standards in those
areas. Swiss companies have undergone important changes in their senior
management, hiring people with international experience who are usually
outsiders and are influenced by the shareholder value approach. Particular
improvements have been made in the transparency of rules and regulations.
Strong earnings have provided sufficient fuel to the market despite a
slightly deteriorating interest rate environment due to the indirect influence
of higher yields in the German bond market. A weaker Swiss franc has contributed
to the earnings improvements of most corporations with international exposure.
The Fund, with its overweighted position in the insurance industry, enjoyed
the strong performance of this sector, which was by far the best performing
during this quarter. We are maintaining our strong exposure in the insurance
sector because of the continued favorable interest rate environment and a strong
institutional demand for financial assets.
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Financial Highlights
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September 30, December 31,
1997 1996
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Total Net Assets
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In million SFr. 564.4* 396.1
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In million U.S. $ 389.1* 296.0
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Net Asset Value per Share (U.S. $) 31.58 24.14
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Shares Outstanding 12,321,016* 12,261,692
*Includes additional shares issued to stockholders through the reinvestment of
dividends in 1997.
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THE SWISS HELVETIA FUND, INC.
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The performance of the pharmaceutical and life science sectors was flat for
the quarter but in line with their international peers. We believe, however,
that our overweighted position in Novartis Ltd. continues to remain attractive
because it is one of the most significant stocks internationally in the life
science sector, as measured by its mid-term earnings perspective, drug portfolio
and products in development. In addition, the favorable trend in demographics in
the developed countries will continue to support the life science sector in
general and Novartis in particular.
The global leadership of Swiss international companies, such as Nestle AG,
Novartis and Zurich Insurance, is reflected in the quality and geographic spread
of their earnings. These companies are participating in the trend toward
international consolidation and integration. The latest example in the financial
industry is the announced purchase of Winterthur Insurance by Credit Suisse, in
a transaction valued at more than 13 billion Swiss francs.
Changes in Fund's Holding Strategy
The quality of the Fund's portfolio holdings has been improved with a focus
on companies that were able to steadily produce results that met or exceeded
expectations. We reduced holdings in companies with slightly disappointing
results or unsustainable high valuations, such as Christ AG, Disetronic Holding
AG, Stratec Holding AG, Siegfried AG, Datwyler Holding AG, Forbo Holdings Ltd.
and Schindler Holding AG.
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The Swiss Helvetia Fund--Ten Largest Holdings (in U.S. dollars)
As of September 30, 1997
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% of Total
Cost Market Value Net Assets
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1. Novartis Ltd. $ 31,190,468 $ 86,458,625 22.2%
2. Roche Holding AG 16,329,129 52,919,884 13.6
3. Nestle AG 18,418,475 40,508,825 10.4
4. Swiss Reinsurance
Company 8,253,411 22,555,847 5.8
5. Zurich Insurance 9,350,656 21,821,566 5.6
6. Union Bank of
Switzerland 9,559,891 18,742,416 4.8
7. Credit Suisse Group 9,834,567 17,612,383 4.5
8. Swiss Bank
Corporation 8,288,935 15,038,610 3.9
9. ABB Asea Brown
Boveri Ltd. 8,246,367 11,814,672 3.0
10. Winterthur
Schweizerische
Versicherungs-
Gesellschaft 3,733,552 6,172,297 1.6
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Total $123,205,451 $293,645,125 75.4%
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THE SWISS HELVETIA FUND, INC.
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Holdings in newly listed growth-oriented companies were increased as we
looked for promising new investment opportunities for the Fund, including Sulzer
Medica AG, Interroll Holding AG, Komax Holding AG and Gretag-Macbeth Holding AG.
Outlook
In our opinion, the Swiss market still offers good value, especially since
the market is off its high and going through a consolidation phase that began in
August. Despite a slight pickup in economic activity, inflation remains low and
will probably stay close to 0.5% for 1997. Contrary to Germany's experience, the
depreciation of the national currency, especially against the U.S. dollar, has
not put any great pressure on import prices.
The recovery of the Swiss economy, however, is lagging other European
countries. In addition, since Switzerland is not involved in the European
Monetary Union, its monetary policy does not depend on the need to defend the
credibility of the future European currency. Therefore, we do not expect any
major interest rate hikes in the immediate future.
We are convinced that the strength of the Swiss market's earnings growth
over the next two years will compare favorably to other developed countries. We
also believe that the positive contributions of ongoing corporate restructuring,
increased management incentives, low interest rates and a weaker Swiss
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The Swiss Helvetia Fund--Portfolio Holdings per Industry
as of September 30, 1997
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Pharmaceuticals 14.3%
Cash and Equiv. 0.4
Food, Luxury Goods 10.9
Insurance 13.7
Machinery 4.3
Banks 14.2
Chemicals 4.7 [Pie Chart appears here--
Misc. Services 4.3 Figures at left]
Misc. Industries 3.3
Building Contractors 1.4
Electrical Engineering 4.6
Retailers 0.7
Transport 1.0
Life Sciences 22.2
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THE SWISS HELVETIA FUND, INC.
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franc are not being completely reflected in current market prices. The valuation
of the Swiss market remains attractive, especially if we exclude the heavy
weighting of the health care industry, which is trading at a historically high
multiple.
Another positive argument is the subdued sentiment of investors about the
market, which might limit the downside risk in Swiss equity investments.
Support for Swiss stocks should also come from the average Swiss investor
who so far has been investing only a small percentage of savings in equities
compared to other mature markets such as the U.S. and the United Kingdom. With
continued low returns on bonds, we anticipate that the average Swiss investor
will increase his exposure to equities through mutual funds or life insurance
products.
We consider the Fund an appropriate instrument to take advantage of the
opportunities in the Swiss market. The consistently favorable performance of the
Fund, coupled with the continuing efforts of management to keep the expense
ratio low, demonstrates a commitment to act in the best interest of its
stockholders. In our opinion, the Fund provides a good way to diversify
investments, as reflected in its low correlation with the U.S. market.
In this context, we are continuing marketing efforts with brokers,
analysts, the financial press and individual investors, an effort which we
believe will eventually contribute to reduce the discount to net asset value.
Sincerely,
/s/ Paul Hottinguer
- -------------------
Paul Hottinguer
Chairman and Chief Executive Officer
/s/ Rodolphe Hottinger
- ----------------------
Rodolphe Hottinger
President and Chief Operating Officer
October 17, 1997
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THE SWISS HELVETIA FUND, INC.
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Statement of Net Assets September 30, 1997
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
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Common Stocks and Warrants - 99.6%
Banks - 14.2%
1,200 Baer Holdings Ltd.
Bearer Shares $ 1,849,145 0.5%
Banking group specializing in asset
management, investment consulting
and securities trading.
2,600 Bank Sarasin & Cie
Registered Shares 1,909,129 0.5
A bank specializing in investment
advisor services and portfolio
management for private and institutional
customers in Europe.
130,000 Credit Suisse Group*
Registered Shares 17,612,383 4.5
A global financial services institution
whose main holding is Credit Suisse,
one of Switzerland's "Big Three"
banks.
16,000 Schweizerische Bankgesellschaft*
(Union Bank of Switzerland)
Bearer Shares 18,742,416 4.8
One of the three largest Swiss
full-service banks.
Schweizerischer Bankverein*
(Swiss Bank Corporation)
54,000 Registered Shares 14,631,826 3.8
40,000 Warrants Expiring 6/30/00** 406,784 0.1
One of the three largest international
Swiss banks. ----------- ----
55,151,683 14.2
Building Contractors & Materials - 1.4%
800 Forbo Holdings Ltd.
Registered Shares 311,638 0.1
Manufacturer of wall and floor coverings.
4,500 Holderbank Financiere Glarus AG
Bearer Shares 4,281,578 1.1
Large cement producer with worldwide
operations.
Percent
No. of of Net
Shares Security Value Assets
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Building Contractors & Materials - (continued)
1,600 Keramik Holding AG Laufen
Bearer Shares $ 871,484 0.2%
One of the largest suppliers of floor and
wall tiles, sanitary fittings,
crockery and ceramics in the world. ---------- ----
5,464,700 1.4
Chemicals - 4.7%
50,000 Ciba Specialty Chemicals AG
Registered Shares 4,834,873 1.3
The company, a spin-off from Novartis
in February 1997, develops, manufactures
and markets specialty chemical products
worldwide. These products include
additives, performance polymers,
textile dyes, consumer care chemicals
and pigments.
4,600 Clariant AG
Registered Shares 3,710,701 1.0
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.
400 EMS Chemie Holding AG
Bearer Shares 1,909,818 0.5
Produces polymers and manufactures
high-grade chemical intermediates
and fine chemicals.
700 Gurit-Heberlein AG
Bearer Shares 2,468,629 0.6
European market leader for wind
screen bonding systems, ski bases
and optically pure thermoplastic
sheeting for the auto industry.
7
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THE SWISS HELVETIA FUND, INC.
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Statement of Net Assets (continued) September 30, 1997
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
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Common Stocks and Warrants - (continued)
Chemicals - (continued)
2,300 Siegfried AG
Registered Shares $ 3,123,966 0.8%
International producer and supplier of
chemicals and pharmaceuticals for
major businesses.
6,500 Sika Finanz AG
Bearer Shares 2,110,797 0.5
Leading producer of construction
chemicals. ----------- ----
18,158,784 4.7
Electrical Engineering & Electronics - 4.6%
8,000 ABB Asea Brown Boveri Ltd.*
Bearer Shares 11,814,672 3.0
One of the largest electrical engineering
firms in the world.
6,500 Agie Charmilles Holding AG
Registered Shares 582,598 0.1
Holding company for a group of
companies that produce electric discharge
erosion machines and equipment for the
automobile and electronics industries.
Distributes and sells products
internationally.
2,000 Belimo Automation AG
Registered Shares 666,023 0.2
World market leader in damper and
volume control actuators for ventilation
and air conditioning equipment.
300 Disetronic Holding AG
Bearer Shares 608,108 0.2
Leading company in medical technology.
Manufactures and markets infusion
systems and injection systems used to
administer insulin and growth hormones.
Percent
No. of of Net
Shares Security Value Assets
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Electrical Engineering & Electronics - (continued)
1,200 Kaba Holding Ltd.
Registered Shares $ 484,832 0.1%
Specializes in mechanical and electronic
security systems.
900 Micronas Semiconductor Holding AG
Bearer Shares 762,617 0.2
Develops, produces and markets
mixed-signal integrated circuits
and systems.
4,500 Swiss Corporation for Micro-electronics
and Watchmaking Industries Ltd. (SMH)
Bearer Shares 2,686,845 0.7
Watchmaking company.
400 Zellweger Luwa AG
Bearer Shares 314,396 0.1
Worldwide diversified industrial and
service company active mainly in textile
electronics, air filtering and conditioning
techniques. ----------- ----
17,920,091 4.6
Food, Luxury Goods - 10.9%
1,800 Hero AG
Bearer Shares 999,035 0.3
Leading Swiss manufacturer of branded
jams and preserves.
50 Lindt & Spruengli AG
Registered Shares 985,935 0.2
Major manufacturer of premium
Swiss chocolates.
29,000 Nestle AG*
Registered Shares 40,508,825 10.4
Largest food and beverage processing
company in the world. ----------- ----
42,493,795 10.9
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THE SWISS HELVETIA FUND, INC.
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Statement of Net Assets (continued) September 30, 1997
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
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Common Stocks and Warrants - (continued)
Insurance - 13.7%
1,400 Baloise-Holding
Registered Shares $ 2,171,815 0.5%
Medium-sized insurer active in all
sectors of insurance.
1,200 Helvetia Patria-Holding
Registered Shares 736,349 0.2
Through its subsidiaries, Helvetia
Schweizerische Versicherungs-
Gesellschaft and Patria Schweizerische
Lebensversicherungs-Gesellschaft,
offers all types of life, property and
casualty insurance in Switzerland and
elsewhere.
15,000 Schweizerische Ruckversicherungs -
Gesellschaft*
(Swiss Reinsurance Company)
Registered Shares 22,555,847 5.8
Second largest reinsurance company
in the world.
6,300 Winterthur Schweizerische
Versicherungs-Gesellschaft*
Registered Shares 6,172,297 1.6
Leading Swiss international insurance
company.
50,000 Zurich Schweizerische
Versicherungs-Gesellschaft*
(Zurich Insurance)
Registered Shares 21,821,566 5.6
A large worldwide insurance operator. ----------- ----
53,457,874 13.7
Life Sciences - 22.2%
56,233 Novartis Ltd.*
Registered Shares 86,458,625 22.2
Life science group created by the
consolidation of Sandoz and
Ciba-Geigy. Manufactures health
care products for use in a broad range
of medical fields, as well as agricultural
products. The second largest
pharmaceutical entity in the world. ----------- ----
86,458,625 22.2
Percent
No. of of Net
Shares Security Value Assets
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Machinery - 4.3%
400 Bobst Ltd.
Bearer Shares $ 634,308 0.2%
Leading international manufacturer of
cardboard packaging machines.
2,000 Bucher Holding Ltd.
Bearer Shares 2,047,711 0.5
Manufacturer of agricultural machines,
special vehicles, fruit juice equipment
and plastics machines.
300 Esec Holding AG
Bearer Shares 827,358 0.2
Market leader in the field of die bonding
technology used by manufacturers of
semiconductors.
600 Georg Fischer AG
Bearer Shares 926,641 0.2
A mechanical engineering group that is
a market leader in vehicle engineering and
pipeline systems.
Mikron Holding AG
8,000 Registered Shares 1,406,509 0.4
8,000 Warrants Expiring 12/10/97** 25,372 --
Machine tools and milling machine
producer.
3,000 Rieter Holding AG
Registered Shares 1,394,098 0.3
Leading supplier of spinning machinery
for the textile industry.
2,000 Saurer Gruppe Holding AG
Registered Shares 1,589,906 0.4
Machinery maker with dominant
market share.
1,200 Schindler Holding AG
Registered Shares 1,497,518 0.4
One of the world's largest elevator
companies and a leading Swiss
machinery enterprise.
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THE SWISS HELVETIA FUND, INC.
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Statement of Net Assets (continued) September 30, 1997
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
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Common Stocks and Warrants - (continued)
Machinery - (continued)
1,500 SIG Schweizerische Industrie-
Gesellschaft Holding AG
Registered Shares $ 2,218,354 0.6%
Medium-sized machinery manufacturer
with interests in the packaging, defense
and railway industries.
5,000 Sulzer AG
Registered Shares 3,812,741 1.0
A machine manufacturer and worldwide
leader in weaving machines and sewing
machines.
500 Zehnder Holdings AG
Bearer Shares 234,418 0.1
Through its subsidiaries, manufactures
furnaces, measuring instruments, battery
chargers, sheet metal housing and
welding machines. Refines paper. ----------- ----
16,614,934 4.3
Miscellaneous Industries - 3.3%
600 AFG Arbonia-Forster Holding AG
Bearer Shares** 355,764 0.1
Manufacturer of heating radiators,
refrigeration kitchen equipment and
steel tubing.
Alusuisse-Lonza Holding AG
1,200 Bearer Shares 1,155,819 0.3
3,200 Registered Shares 3,143,960 0.8
A major aluminum producing and
processing company.
400 Christ AG
Registered Shares 339,217 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.
Percent
No. of of Net
Shares Security Value Assets
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Miscellaneous Industries - (continued)
500 Gretag-Macbeth Holding AG
Registered Shares** $ 179,261 --%
Offers a spectrum of benchtop and
portable color measurement
instrumentation, color formulation
and color quality control systems,
densitometers and visual color standards.
1,200 Huber & Suhner AG
Registered Shares 1,894,650 0.5
Manufactures a wide range of products,
extending from cables for energy and
electrical transmission to special
products such as rubber.
800 Industrieholding Cham AG
Registered Shares 644,788 0.2
Manufactures paper and storage logistics
systems and owns real estate.
1,000 Interroll Holding AG
Registered Shares** 195,119 --
Leading international supplier of
modules, components and systems for
the storage and conveyance of discrete
goods and bulk products.
1,000 Kardex AG
Bearer Shares 295,780 0.1
Specializing in industrial and office
storage systems, office machinery,
safety and computer software.
1,000 Komax Holding AG
Registered Shares** 379,206 0.1
World leading manufacturer of wire
processing machines.
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THE SWISS HELVETIA FUND, INC.
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Statement of Net Assets (continued) September 30, 1997
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
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Common Stocks and Warrants - (continued)
Miscellaneous Industries - (continued)
12,000 Oerlikon-Buehrle Holding AG
Registered Shares $ 1,559,570 0.4%
Diversified holding company includes
Bally (shoes and accessories), Balzers
and Leybold (surface technologies),
Oerlikon Contraves (military products and
space technology) and Pilatus (aircraft).
1,600 Phoenix Mecano AG
Bearer Shares 869,277 0.2
Leading Swiss packaging manufacturer
for the mechanical engineering and
electronics industry.
600 Stratec Holding AG
Registered Shares 833,563 0.2
Develops, produces and distributes
instruments and implants used in
orthopedic and maxilofacial surgery.
4,000 Sulzer Medica AG
Registered Shares** 1,071,429 0.3
A partial spin-off from Sulzer AG, Sulzer
Medica AG is a medical technology
company serving the orthopedic and
cardiovascular markets on a global basis.
Designs, manufactures and markets
orthopedic and cardiovascular products,
with a focus on implantable medical
products and materials technology. ----------- ----
12,917,403 3.3
Miscellaneous Services - 4.3%
9,000 Adecco SA
Bearer Shares 3,630,033 1.0
Leading personnel and temporary
employment company.
1,000 Bossard Holding AG
Bearer Shares 497,794 0.1
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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Miscellaneous Services - (continued)
3,000 Compagnie Financiere Richemont AG
Bearer Shares $ 3,919,608 1.0%
Investment company with principal
interests in luxury goods and tobacco.
800 Intershop Holding Ltd.
Bearer Shares 402,648 0.1
Involved in the construction and funding
of shopping centers and property for
commercial use, both nationally and
internationally.
800 Kuoni Travel Holding Ltd.
Registered Shares 3,193,602 0.8
Leader in the Swiss travel and tourism
sector with subsidiaries in the United
Kingdom, Germany, France and Austria.
3,500 Movenpick Holding Ltd.
Bearer Shares 1,170,367 0.3
Through its subsidiaries, invests in the
hotel and restaurant business worldwide.
Also produces food items under the
Movenpick name, including ice cream,
coffee, salmon and jams.
4,000 Publigroupe SA
Participation Certificates 940,430 0.3
Largest Swiss advertising intermediary.
1,000 Selecta Group
Registered Shares** 145,477 --
Owns and operates food and beverage
vending machines and snack shops
throughout Europe. Also sells and
leases vending machines and
equipment and offers repair and
maintenance services for its
products.
8,000 Societe Generale de Surveillance
Holding AG
Registered Shares 2,675,124 0.7
World's leading inspection company
and adjusting group. ----------- ----
16,575,083 4.3
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THE SWISS HELVETIA FUND, INC.
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Statement of Net Assets (concluded) September 30, 1997
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
Common Stocks and Warrants - (concluded)
Pharmaceuticals - 14.3%
1,500 Ares Serono SA
Bearer Shares $ 2,709,597 0.7%
Develops and markets pharmaceutical
and diagnostic products. Worldwide
market leader in pharmaceutical
products for the treatment
of infertility.
5,950 Roche Holding AG*
Dividend Rights Certificates 52,919,884 13.6
Worldwide pharmaceutical company. ----------- ----
55,629,481 14.3
Retailers - 0.7%
1,200 Jelmoli Holding Ltd.
Bearer Shares 968,009 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.
2,000 Prodega AG
Registered Shares 1,041,092 0.3
Swiss market leader that operates
"Cash and Carry."
4,000 Valora Holdings AG
Registered Shares 853,558 0.2
Operates restaurants, food vending
machines and specialty retail stores. ----------- ----
2,862,659 0.7
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
Transport - 1.0%
1,000 Kuehne & Nagel International AG
Bearer Shares $ 703,254 0.2%
Operates sea freight, land and rail
transportation businesses and
warehousing and distribution facilities.
2,200 Sairgroup
Registered Shares** 2,950,218 0.8
Switzerland's largest airline company.
------------ -----
3,653,472 1.0
610,533 Total Common Stocks and Warrants
(Cost $190,138,216)*** 387,358,584 99.6
Other Assets in Excess
of Liabilities 1,743,610 0.4
------------ -----
Net Assets Applicable to
12,321,016 Shares of
Common Stock Outstanding $389,102,194 100.0%
============ =====
Net Asset Value Per Share
($389,102,194 / 12,321,016) $31.58
======
- --------------------------------------------------------------------------------
*One of the ten largest portfolio holdings.
**Non-income producing security.
***Also aggregate cost for federal tax purposes.
12
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THE SWISS HELVETIA FUND, INC.
- --------------------------------------------------------------------------------
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.
13
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