<PAGE>
A Swiss
Investments
Fund
THE SWISS
---------------
HELVETIA
---------------
FUND, INC.
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Quarterly Report
For the Period Ended
March 31, 1999
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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)
Alexandre de Takacsy
Director
Claude Frey
Director
Baron Hottinger
Director
Claude Mosseri-Marlio
Director
Didier Pineau-Valencienne
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
PFPC Trust Company
Transfer Agent
PFPC,Inc.
(800) 852-4750
Legal Counsel
Paul R. Brenner, Esq. and
Salans Hertzfeld Heilbronn
Christy & Viener
Independent Auditors
Deloitte & Touche LLP
For Dividend Reinvestment Information, see page 12.
The Investment Advisor
The Fund is managed by Hottinger Capital Corp., which is 100% owned by the
Hottinger Group.
The Hottinger Group dates back to 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, Luxembourg, Geneva and the
Bahamas.
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 daily 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 Sunday edition of The New York Times.
1
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THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders
Quarter in Review
Economic environment
The first days of the current year witnessed the smooth birth of the Euro.
Technically it was a success with only a few problems occurring in the Euro
settlement system. The euphoria was shortlived however. Shortly after its
introduction, the Euro started to weaken against the U.S. dollar and, to a much
lesser extent, against the Swiss Franc as some of the structural problems of the
Euro's architecture started to surface. Those problems were exacerbated by some
slowing of the European economies in the aftermath of South-East Asian and Latin
American financial crises and the partial deterioration of business confidence.
The shocks created by the different economic cycles of member countries could no
longer be absorbed by fluctuations in currencies, changes in monetary policy or
changes in governmental budgets and labor mobility was too low in the early
stages of the Union to compensate for the situation. The European Central bank
was torn between taking the orthodox approach of low inflation targets and
currency stability on the one hand and confronting the imperatives of economic
growth on the other.
As a result, real interest rates differed across the Union. They were
higher in Germany (due to the deflation induced by weak economic activity) and
lower in Spain and France. The European Central Bank therefore had a difficult
task. In addition, European interest rate policy was put on hold during a
controversy with the German FinanceMinister, culminating in the resignation of
Mr. Lafontaine. In this context of slowing growth and bottoming out of interest
rates, the continental stock markets were mostly weak performers.
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Local currency U.S. Dollars
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USA(S&P 500) 4.42% 4.42%
Swiss Performance Index (SPI) 0.94% -6.13%
Germany (DAX) -2.36% -9.80%
France (CAC40) 6.47% -1.07%
Spain (IBEX) -0.97% -8.15%
Italy (MIB 30) 5.19% -2.50%
United Kingdom
(FTSE All-Share) 8.26% -5.20%
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Swiss economy and stock market
Switzerland`s real Gross Domestic Product increased at an annualized rate
of 1% in the final quarter of 1998. For the entire year the progression was
1.2%. The slowdown compared to 1997 occurred in the first half of the year with
the economy stabilizing in the second half. The weak spot was the export
industries. Building and construction also remained sluggish. However, domestic
demand was strong with imports growing robustly throughout 1998 at a rate of
8.8%. Consumer spending remained the main engine of growth in Switzerland with a
progression of 2.3% in the final quarter of 1998. Consumer confidence remained
high during the quarter, with the index continuing to hold at its highest level
in 9 years.
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Financial Highlights (unaudited)
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March 31, 1999 December 31, 1998
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Net Assets
(in Million SFr) 638.2 645.5
(in Million $) 432.0 469.9
Outstanding Shares
(000) 24,585 24,642
Net Asset Value
per Share ($) 17.57 19.07
Dividend per Share ($) 0.055 1.01
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2
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THE SWISS HELVETIA FUND, INC.
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This background and the fact that investors did not anticipate further
downside for interest rates during the first quarter of 1999 resulted in the
following picture of the Swiss market.
Performance of industry groups during first quarter of 1999
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Electronic & Electric Eng. 16.94%
Banks 15.31%
Misc. Services 10.93%
Machinery 6.96%
Misc. Industry 4.77%
Utilities 3.73%
Building Materials &Construction 3.54%
Retailers -0.62%
Chemicals & Pharmaceuticals -2.28%
Transportation -5.66%
Insurance -7.84%
Foods -9.71%
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Consumer confidence helped the retail and service sectors, and healthier
international capital markets helped the banks. The striking underperformance of
the defensive sectors (food, pharmaceuticals and insurance) was due to profit
taking and group rotation.
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1Q99' SPI Performance Breakdown
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[GRAPHIC]
In the printed version of the document, a line graph appears which depicts
the following plot points:
Small Cap Mid Cap Large Cap
Index Index Index
1/4/99 100.00 100.00 100.00
1/5/99 100.36 100.48 100.00
1/6/99 100.92 101.35 103.07
1/7/99 100.82 100.12 101.62
1/8/99 101.12 100.63 102.79
1/11/99 100.33 99.30 100.73
1/12/99 100.04 99.39 100.19
1/13/99 98.77 96.47 96.26
1/14/99 98.62 96.41 95.78
1/15/99 98.48 97.24 97.41
1/18/99 98.86 97.30 97.90
1/19/99 98.71 96.76 97.44
1/20/99 98.84 97.07 98.60
1/21/99 98.36 96.35 96.49
1/22/99 97.30 95.77 95.32
1/25/99 97.97 95.61 95.84
1/26/99 98.00 96.18 95.82
1/27/99 98.09 96.10 95.33
1/28/99 98.47 96.27 96.68
1/29/99 98.46 96.91 97.51
2/1/99 98.83 97.01 98.65
2/2/99 98.36 97.22 97.86
2/3/99 98.47 97.11 97.42
2/4/99 98.98 96.81 96.73
2/5/99 99.76 96.97 96.67
2/8/99 99.64 96.58 95.63
2/9/99 99.48 95.67 94.20
2/10/99 98.69 95.16 93.51
2/11/99 99.09 95.54 93.60
2/12/99 98.80 96.05 94.45
2/15/99 98.46 96.25 94.76
2/16/99 98.75 96.54 95.17
2/17/99 98.63 95.91 95.61
2/18/99 98.35 95.64 94.76
2/19/99 98.43 95.41 94.27
2/22/99 99.10 96.22 95.98
2/23/99 98.98 96.57 96.96
2/24/99 99.39 96.95 98.12
2/25/99 98.74 96.37 96.47
2/26/99 98.87 96.65 96.00
3/1/99 98.46 96.34 95.16
3/2/99 98.34 95.63 94.88
3/3/99 98.90 95.14 95.12
3/4/99 99.61 95.71 96.73
3/5/99 100.14 96.50 98.16
3/8/99 100.61 96.56 97.70
3/9/99 100.89 96.71 98.69
3/10/99 101.17 97.07 97.94
3/11/99 101.32 98.56 99.35
3/12/99 101.68 99.20 98.52
3/15/99 102.23 99.27 98.33
3/16/99 102.73 98.88 98.13
3/17/99 103.42 99.24 98.29
3/18/99 103.40 99.54 97.87
3/19/99 104.61 100.55 98.09
3/22/99 104.97 100.02 97.40
3/23/99 104.55 98.91 95.54
3/24/99 103.49 98.18 94.72
3/25/99 103.98 99.31 96.46
3/26/99 104.23 99.04 95.47
3/29/99 105.07 99.26 96.57
3/30/99 105.59 99.51 95.75
3/31/99 106.31 100.11 97.08
In general the economically sensitive stocks did better due to an improved
environment (expectation of the bottoming out of Asia and the stabilization of
Latin America). This also sparked a reduction in the valuation gap between the
mid and small cap versus the blue chip stocks.
Quarterly Results
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U.S. Swiss
Dollar Franc
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The Swiss Helvetia Fund Net Asset Value -7.52% -0.55%
The Swiss Helvetia Fund Market Price -11.78% -5.13%
Swiss Performance Index -6.13% 0.94%
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The U.S. dollar appreciated over 7% against the Swiss Franc, mainly due to
the different economic cycles of the two countries and a shift in U.S. monetary
policy from accommodative to neutral. The U.S. dollar by this move regained the
value it had before the global financial crisis of last year.
During the quarter, Management made some structural changes in the Fund's
portfolio. Considering the interest rate picture and its negative impact on the
balance sheets of insurance companies, the weighting in this sector was reduced.
The Fund's holdings in the international segment of the banking sector was also
decreased. Exposure to specialized asset managers (Julius Baer, Vontobel, Bank
Sarasin) which still enjoy favorable valuations combined with higher earnings
quality, was increased.
The holdings in both mid and small cap economically sensitive stocks were
also increased.
3
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THE SWISS HELVETIA FUND, INC.
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Corporate activity
The main event was the cancellation of the announced merger between Algroup
and Germany's Viag as a result of Viag's revised valuation of Algroup. Kuoni
announced a merger with First Choice Holidays Plc (UK). If completed, the
transaction will create the second largest travel group in Europe.
Swiss companies, especially the second-tier companies, continued to
implement share buy-back programs, reaffirming a preoccupation with maximizing
shareholder value.
Outlook
Swiss domestic demand is expected to remain strong, the latest statistics
confirming high consumer confidence. Increased demand from Asia and Latin
America where economies are expected to improve as a result of better access to
financing (reduction in yield spread) will be a greater benefit to the Swiss
economy, relatively speaking, than to its neighbor, the EMU (30% of
Switzerland's economic output depends on exports, compared with 13% for
Euroland).
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The Swiss Helvetia Fund--Ten Largest Holdings (in U.S. dollars)
As of March 31, 1999
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Cost Market Value % of Total
in U.S.$ in U.S.$ Net Assets
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1. Novartis Ltd. $ 30,098,514 $ 84,519,361 19.6%
2. Roche Holdings AG 15,895,280 69,037,707 16.0
3. Nestle AG 17,348,232 49,149,066 11.4
4. Credit Suisse Group 7,207,699 20,926,076 4.8
5. Zurich Allied Ltd. 5,196,372 20,514,487 4.8
6. Swiss Reinsurance Company 4,294,937 20,396,696 4.7
7. UBS AG 5,933,331 19,831,438 4.6
8. ABB Asea Brown Boveri Ltd. 8,890,598 10,603,845 2.5
9. Holderbank Financiere Glarus AG 7,136,284 8,962,903 2.1
10. Adecco SA 5,527,562 8,134,308 1.9
Total $107,528,809 $312,075,887 72.4%
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The Swiss Helvetia Fund--Portfolio Holdings per Industry
as of March 31, 1999
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Life Sciences 19.6%
Pharmaceuticals 16.8
Banks 13.1
Food & Luxury Goods 12.0
Insurance 11.0
Cash and Equiv. 7.0
Electrical Engineering
and Electronics 4.3
Misc. Services 4.1
Chemicals 2.5
Machinery 2.5
Building Contractors
& Materials 2.3
Misc. Industries 2.0
Retailers 1.3
Telecommunications 1.1
Bonds 0.3
Transport 0.1
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This environment will favor economically sensitive stocks. Management
believes that it will also allow the valuation gap between the large caps and
the rest of the market to narrow further. Since interest rates have reached
their cyclical low, the price to earnings ratios of growth stocks will probably
stop expanding, the value of their future cash flow being eroded by higher
discount rates over time. On the other side companies sensitive to economic
cycles, a large part of the mid and small cap sectors, will see their valuations
increase because there will be more room for earnings growth expectations to be
revised upward. In addition, the earnings at smaller companies have been less
volatile than the average of the market over the last 10 years. The market
should also reward this.
4
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THE SWISS HELVETIA FUND, INC.
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For the whole Swiss market 1999 earnings progression should be between 10%
and 15% (in normal circumstances). Most of the companies that had a difficult
second half of 1998 should be able to prevent further deterioration of sales
during the first half of 1999 and resume growth in the second half.
Buy-back of The Swiss Helvetia Fund Inc. shares
As mentioned in our Annual Report, on February 5, 1999, the Board of
Directors authorized the Fund to repurchase up to 1,000,000 shares of its common
stock in open market purchases to be effected on the New York Stock Exchange
during the balance of 1999. As of March 31, 1999, the Fund had repurchased
56,600 shares at an average price of $14.754 and an average discount of 17.647%.
This had the result of enhancing shareholder value by $178,969.
Sincerely,
/s/ Paul Hottinguer
- ------------------------------------
Paul Hottinguer
Chairman and Chief Executive Officer
/s/ Rodolphe Hottinger
- ------------------------------------
Rodolphe Hottinger
President and Chief Operating Officer
May 3, 1999
5
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THE SWISS HELVETIA FUND, INC.
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Statement of Net Assets March 31, 1999
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
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Common Stocks and Warrants - 92.7%
Banks - 13.1%
1,800 Julius Baer Holding Ltd.
Bearer Shares $ 5,847,685 1.4%
Banking group specializing in asset
management, investment consulting and
securities trading.
(cost $2,973,010)
2,400 Bank Sarasin & Co.
Registered Shares 4,045,492 1.0
A bank specializing in investment advisor
services and portfolio management for
private and institutional customers in
Europe.
(cost $2,177,571)
112,000 Credit Suisse Group(1)
Registered Shares 20,926,076 4.8
A global financial services institution
whose main holding is Credit Suisse.
(cost $7,207,699)
1,320 Oz Holding
Bearer Shares 1,206,336 0.3
Provides brokerage and banking
services, specializing in Swiss futures
and options.
(cost $1,199,169)
UBS AG
60,000 Warrants Expiring 6/30/00(2) 1,011,373 0.2
(cost $605,422)
63,000 Registered Shares Ltd. 19,831,438 4.6
Results of the merger of Basel-based
Swiss Bank Corp. and Zurich-based
Union Bank of Switzerland. The group
operates globally and has five core
business units: Private Banking,
Institutional Asset Management,
Investment, Private and Corporate
Customers, and Private Equity.
(cost $5,933,331)
4,000 Valiant Holding AG
Registered Shares 1,865,692 0.4
The largest regional bank of Switzerland
with activities focused on mortgage loans
and commercial business with small and
mid-sized companies.
(cost $1,916,008)
1,000 Vontobel Holding Ltd.
Bearer Shares 1,800,704 0.4
Provides investment, banking and
consulting services to private and
institutional customers.
(cost $1,821,562)
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56,534,796 13.1
Building Contractors & Materials - 2.3%
2,000 Forbo Holdings Ltd. SA
Registered Shares 832,656 0.2
Manufactures building materials and
decorative home products.
(cost $854,298)
8,000 Holderbank Financiere Glarus AG(1)
Bearer Shares 8,962,903 2.1
Large cement producer with worldwide
operations.
(cost $7,136,284)
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9,795,559 2.3
Chemicals - 2.5%
16,000 Ciba Specialty Chemicals Inc.
Registered Shares 1,245,600 0.3
Develops, manufactures and markets
specialty chemical products worldwide.
These products include additives,
performance polymers, textile dyes,
consumer care chemicals and pigments.
(cost $108,644)
6
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THE SWISS HELVETIA FUND, INC.
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Statement of Net Assets (continued) March 31, 1999
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
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Common Stocks and Warrants - (continued)
Chemicals - 2.5%
11,000 Clariant AG
Registered Shares $ 5,182,778 1.2%
Specializes in color chemistry and
manufactures a range of dyestuffs,
pigments, chemicals, additives and
masterbatches for the textile, paper,
leather, plastics, synthetic fibers and
print industries.
(cost $2,813,989)
200 Ems Chemie Holding AG
Bearer Shares(2) 991,064 0.2
Produces polymers and manufactures
high-grade chemical intermediates and
fine chemicals.
(cost $766,308)
650 Gurit-Heberlein AG
Bearer Shares 1,628,080 0.4
European market leader for wind screen
bonding systems, ski based and optically
pure thermoplastic sheeting for the auto
industry.
(cost $1,437,396)
7,000 Sika Finanz AG
Bearer Shares 1,869,415 0.4
Leading producer of construction
chemicals.
(cost $1,877,743)
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10,916,937 2.5
Electrical Engineering & Electronics - 4.1%
8,000 ABB Ltd.(1)
Bearer Shares 10,603,845 2.5
One of the largest electrical engineering
firms in the world.
(cost $8,890,598)
2,000 Belimo Automation AG
Registered Shares 611,969 0.1
World market leader in damper and
volume control actuators for ventilation
and air conditioning equipment.
(cost $433,378)
10,000 Logitech International SA
Registered Shares 1,252,369 0.3
Manufactures personal computer input
devices, as well as producing trackballs,
desktop publishing programs, and
related software.
(cost $1,313,833)
4,000 Saia-Burgess Electronics Holding AG
Registered Shares(2) 999,188 0.2
Develops and produces switches,
motors, and programmable control
devices. Products are mainly used in the
automobile, heating and air conditioning
and telecommunications industries.
(cost $986,280)
5,000 Swatch Group
Bearer Shares 3,181,695 0.7
Manufactures watches, watch
components and microelectronics.
Produces machine tools for scientific,
medical and industrial use with
worldwide operations.
(cost $3,047,192)
10,000 Swisslog Holding Inc.
Registered Shares 1,140,672 0.3
Provides turnkey delivery of automated
material handling systems, storage,
order picking and transport systems.
Delivers its systems to production,
distribution and service companies
throughout Europe.
(cost $824,146)
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17,789,738 4.1
7
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THE SWISS HELVETIA FUND, INC.
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Statement of Net Assets (continued) March 31, 1999
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
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Common Stocks and Warrants - (continued)
Food & Luxury Goods - 12.0%
2,000 Hero AG
Bearer Shares $ 1,018,142 0.2%
Leading Swiss manufacturer of branded
jams and preservatives.
(cost $1,058,807)
60 Lindt & Sprungli AG
Registered Shares 1,705,930 0.4
Major manufacturer of premium Swiss
chocolates.
(cost $1,196,399)
27,000 Nestle AG(1)
Registered Shares 49,149,066 11.4
Largest food and beverage processing
company in the world.
(cost $17,348,232)
------------ ------
51,873,138 12.0
Insurance - 11.0%
5,000 Baloise-Holding
Registered Shares 4,298,673 1.0
Medium-sized insurer active in all
sectors of insurance.
(cost $1,981,492)
6,000 Generali (Switzerland) Holding
Registered Shares 2,156,783 0.5
An insurance, financial and real estate
services company.
(cost $2,243,128)
9,200 Swiss Reinsurance Co.(1)
Registered Shares 20,396,696 4.7
Second largest reinsurance company
in the world.
(cost $4,294,937)
32,000 Zurich Allied Ltd.(1)
Registered Shares 20,514,487 4.8
A large worldwide insurance operator.
(cost $5,196,372)
------------- -----
47,366,639 11.0
Life Sciences - 19.6%
52,000 Novartis Ltd.(1)
Registered Shares 84,519,361 19.6
Life science group created by the
consolidation of Sandoz and Ciba-Geigy.
Manufactures health care products for
use in broad range of medical fields, as
well as agricultural products, baby food
and clinical nutrition products.
(cost $30,098,514)
------------ ------
84,519,361 19.6
Machinery - 2.5%
1,200 Bucher Holding Ltd.
Bearer Shares 991,064 0.2
Manufacturer of agricultural machines,
special vehicles, fruit juice equipment
and plastic machines.
(cost $798,266)
4,000 Feintool International Holding
Registered Shares 831,303 0.2
Supplier of integrated systems for fine-
blanking and forming technologies.
(cost $846,622)
6,000 Georg Fischer AG
Registered Shares 1,990,252 0.5
A mechanical engineering group that is a
market leader in vehicle engineering and
pipeline systems.
(cost $1,914,911)
7,000 Mikron Holding AG
Registered Shares 1,672,759 0.4
Machine tools and milling machine
producer.
(cost $1,001,058)
1,700 Rieter Holding AG
Registered Shares 968,995 0.2
Leading supplier of spinning machinery
for the textile industry.
(cost $569,618)
8
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THE SWISS HELVETIA FUND, INC.
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Statement of Net Assets (continued) March 31, 1999
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
Common Stocks and Warrants (continued)
Machinery (continued)
1,000 Saurer Inc.
Registered Shares $ 500,948 0.1%
Machinery maker with dominant market
share.
(cost $398,725)
1,800 Schindler Holding AG
Registered Shares 2,801,381 0.7
One of the world's largest elevator
companies and a leading Swiss
machinery enterprise.
(cost $2,258,043)
1,800 SIG Swiss Industrial Co.
Holding Ltd. AG
Registered Shares 1,035,743 0.2
Medium-sized machinery manufacturer
with interests in packaging, defense and
railway industries.
(cost $1,113,667)
------------ ------
10,792,445 2.5
Miscellaneous Industries - 2.2%
3,800 Alusuisse-Lonza Group Ltd.
Registered Shares 4,187,923 1.0
A major aluminum producing and
processing company.
(cost $2,765,161)
10,000 Gretag-Imaging Holding AG
Registered Shares 871,581 0.2
Manufactures image processing
equipment and systems.
(cost $901,795)
3,000 Gretag-Macbeth Holding Ltd.
Registered Shares 934,200 0.2
Offers a spectrum of benchtop and
portable color measurement
instrumentation, color formulation and
color quality control systems, densi-
tometers and visual color standards.
(cost $957,950)
6,000 Huber & Suhner AG
Registered Shares 1,815,597 0.4
Manufactures a wide range of products,
extending from cables for energy and
electrical transmission to special
products such as rubber.
(cost $1,904,277)
1,500 Komax Holding AG
Registered Shares 647,847 0.1
World leading manufacturer of wire
processing machines.
(cost $604,653)
2,500 Phoenix Mecano AG
Bearer Shares 1,188,059 0.3
Leading Swiss packaging manufacturer
for the mechanical engineering and
electronics industry.
(cost $1,179,117)
------------ ------
9,645,207 2.2
Miscellaneous Services - 4.1%
16,000 Adecco SA(1)
Bearer Shares 8,134,308 1.9
Leading personnel and temporary
employment company.
(cost $5,527,562)
2,500 Compagnie Financiere Richemont AG
Bearer Shares 4,163,282 0.9
Investment company with principal
interests in luxury goods and tobacco.
(cost $1,622,497)
700 Kuoni Travel Holding Ltd.
Registered Shares 2,606,282 0.6
Leader in the Swiss travel and tourism
sector with subsidiaries in the United
Kingdom, Germany, France and Austria.
(cost $1,525,845)
9
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THE SWISS HELVETIA FUND, INC.
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Statement of Net Assets (continued) March 31, 1999
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
Common Stocks and Warrants - 92.7%
Miscellaneous Services (continued)
2,400 Moevenpick Holding Ltd.
Bearer Shares $ 1,259,139 0.3%
Through its subsidiaries, invests in the
hotel and restaurant business worldwide.
The company also produces food items
under the Moevenpick name, including
ice cream, coffee, salmon, and jams.
(cost $829,529)
4,000 PubliGroupe Ltd.
Participation Certificates 1,735,716 0.4
Largest Swiss advertising intermediary.
(cost $777,588)
------------ ------
17,898,727 4.1
Pharmaceuticals - 16.8%
2,500 Ares Serono SA
Bearer Shares 3,714,798 0.8
Develops and markets pharmaceutical
and diagnostic products, and is the
worldwide market leader in
pharmaceutical products for the
treatment of infertility.
(cost $2,944,367)
5,650 Roche Holding AG(1)
Dividend Rights Certificates 69,037,707 16.0
Worldwide pharmaceutical company.
(cost $15,895,280)
------------ ------
72,752,505 16.8
Retailers - 1.3%
2,500 Bon appetit Holding AG
Registered Shares 1,311,603 0.3
Swiss market leader that operates
"Cash and Carry".
(cost $1,008,766)
1,500 Jelmoli Holding Ltd.
Bearer Shares 1,425,670 0.3
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.
(cost $888,220)
6,000 Usego-Hofer Curti AG
Registered Shares 1,122,055 0.3
Wholesales and distributes food
products to its own stores, independent
retailers and franchise shops throughout
Switzerland and Austria.
(cost $1,291,465)
7,000 Valora Holding AG
Registered Shares 1,649,066 0.4
Operates restaurants, food vending
machines and specialty retail stores.
(cost $1,601,686)
------------ ------
5,508,394 1.3
Telecommunications - 1.1%
12,000 Swisscom AG(2)
Registered Shares 4,695,370 1.1
Operates public telecommunication
networks and offers network application
services.
(cost $3,992,961)
------------ ------
4,695,370 1.1
10
<PAGE>
THE SWISS HELVETIA FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets (concluded) March 31, 1999
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
Common Stocks and Warrants (concluded)
Transport - 0.1%
2,500 SAir Group Holding Ltd.
Registered Shares $ 539,027 0.1%
Switzerland's largest airline company.
(cost $463,168)
------------ ------
539,027 0.1
Total Common Stocks and Warrants
(Cost $173,324,539) $400,627,843 92.7%
------------ ------
Convertible Bond - 0.3%
16,000 SAir Group Holding Ltd. Convertible
0.25%, 7/8/02 (Cost $1,253,642) $ 1,124,831 0.3%
------------ ------
Total Investments
(Cost $174,578,181) 401,752,674 93.0
Other Assets in Excess of Liabilities 30,275,980 7.0
------------ ------
Net Assets Applicable to 24,585,432
Shares of Common Stock Outstanding $432,028,654 100.0%
============ ======
Net Asset Value Per Share
($432,028,654 divided by 24,585,432) $17.57
======
- --------------------------------------------------------------------------------
(1) One of the ten largest portfolio holdings.
(2) Non-income producing security.
11
<PAGE>
THE SWISS HELVETIA FUND, INC.
- --------------------------------------------------------------------------------
Dividend Reinvestment Plan and Stock Repurchase Programs
--------------------------------------------------------
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 PFPC, Inc., 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.
On February 5, 1999, the Fund announced that its Board of Directors had
authorized the Fund to repurchase up to 1,000,000 shares of its common stock in
open market purchases to be effected on the New York Stock Exchange during the
balance of 1999. The Board ofDirectors and Management expect to make these
purchases from time to time. The principal purpose of the repurchases is to
enhance stockholder value by increasing the Fund's net asset value per share
without creating a meaningful adverse effect upon the Fund's expense ratio. This
may also have the effect of temporarily reducing the current discount of
approximately 18 percent.
-------------------
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.
12
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