A Swiss The Swiss
Investments --------------------
Fund Helvetia
--------------------
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, 1999
<PAGE>
THE SWISS HELVETIA FUND, INC.
- --------------------------------------------------------------------------------
Directors and Officers
Paul Hottinguer Stephen K. West, Esq.
Chairman and Director
Chief Executive Officer
Samuel B. Witt III, Esq.
Eric R. Gabus Director
Vice Chairman
(Non officer) Rodolphe Hottinger
President and
Alexandre de Takacsy Chief Operating Officer
Director
Rudolf Millisits
Claude Frey Vice President
Director
Edward J. Veilleux
Baron Hottinger Vice President and Treasurer
Director
Paul R. Brenner, Esq.
Claude Mosseri-Marlio Secretary
Director
Didier Pineau-Valencienne
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
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, NY 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
<PAGE>
THE SWISS HELVETIA FUND, INC.
- --------------------------------------------------------------------------------
Letter to Stockholders
Quarter in Review
Swiss market in review
Activity on the Swiss market during the third quarter was subdued with low
trading volume and price volatility. With international portfolio managers no
longer selling Swiss equities, the Swiss market improved its performance
relative to other markets where profit taking resulted in negative returns. On
an absolute basis, however, the Swiss stock market improved only slightly.
Economically sensitive stocks dominated the Swiss market in the first and
second quarters of 1999. During the third quarter, however, the picture was more
mixed with company specific factors becoming increasingly important for stock
selection. Within industry sectors, the varying performance of individual stocks
gave increasing importance to the stock picking approach of your Fund's
Management. This approach was especially important with regard to investments in
small and mid cap stocks which, in comparison to the larger companies, are less
followed, have less efficient market pricing, and benefit disproportionately
from better economic conditions (as illustrated by their Swiss Franc returns of
7.18% for the third quarter and 22.36% year-to-date). Additionally, mid and
small caps stocks are less sensitive to interest rate increases mainly because
of their lower valuations. This has been the theme for the entire year and
without a major liquidity crisis due to Y2K (year 2000), this trend is poised to
continue.
The third quarter performance of the various industry groups within the
Swiss Performance Index is shown in the following chart.
Sector Performance (6/30/99-9/30/99)
- --------------------------------------------------------------------------------
Performance Weighting in SPI
- --------------------------------------------------------------------------------
Swiss Performance Index 0.88 100%
Retailers 10.95 0.80%
Building Materials & Const. 6.88 1.99%
Electronic & Electrical Engineering 6.77 6.72%
Chemicals & Pharmaceuticals 3.57 36.52%
Utilities 1.77 0.68%
Foods & Luxury Goods 0.71 11.98%
Machinery -0.23 1.93%
Insurance -1.26 10.71%
Transportation -1.73 0.74%
Misc. Industry -1.82 2.67%
Misc. Services -2.24 6.54%
Banks -3.8 18.71%
- --------------------------------------------------------------------------------
3Q99' SPI Performance Breakdown
[GRAPHIC OMITTED]
Date SPI small cap SPI mid-cap SPI
30-Dec-98 100 100 100
4-Jan-99 100.0005789 101.2458156 103.404401
5-Jan-99 100.3574488 101.7268909 104.7145729
6-Jan-99 100.920684 102.6161358 106.332942
7-Jan-99 100.8237242 101.3710903 104.8826805
8-Jan-99 101.1241549 101.8875916 106.0013964
11-Jan-99 100.3348731 100.5367815 103.9816594
12-Jan-99 100.0408099 99.61416425 103.3821646
13-Jan-99 98.7713601 97.66778592 99.61664354
14-Jan-99 98.62432852 97.61567371 99.18281033
15-Jan-99 98.48511161 98.44767215 100.7324688
18-Jan-99 98.86542558 98.51595712 101.1878713
19-Jan-99 98.70826387 97.96146263 100.7040061
20-Jan-99 98.83850838 98.27849999 101.7853649
21-Jan-99 98.35718255 97.55329308 99.80053901
22-Jan-99 97.30104427 96.96747993 98.66603515
25-Jan-99 97.96644901 96.79856448 99.12410609
26-Jan-99 98.00031259 97.38232395 99.17458284
27-Jan-99 98.08887886 97.29375886 98.73118796
28-Jan-99 98.47469204 97.46780851 99.96197566
29-Jan-99 98.46050986 98.11702914 100.7809442
1-Feb-99 98.82722052 98.21380897 101.8176077
2-Feb-99 98.35862971 98.429189 101.1300566
3-Feb-99 98.46600908 98.32445115 100.724686
4-Feb-99 98.9840928 98.01203458 100.0811631
5-Feb-99 99.76469158 98.18146345 100.068933
8-Feb-99 99.64110401 97.78689955 99.08652649
9-Feb-99 99.48538946 96.86145853 97.69141139
10-Feb-99 98.69523942 96.34803771 96.99607749
11-Feb-99 99.08944614 96.73490029 97.13483296
12-Feb-99 98.79769843 97.25063151 97.9484648
15-Feb-99 98.45819441 97.44444787 98.24332017
16-Feb-99 98.75312587 97.73812458 98.6437987
17-Feb-99 98.62867 97.10507671 98.96778383
18-Feb-99 98.3539988 96.82834288 98.16371367
19-Feb-99 98.42751459 96.60218101 97.70497563
22-Feb-99 99.10189173 97.41774998 99.34847191
23-Feb-99 98.98264564 97.77278048 100.2608336
24-Feb-99 99.38929795 98.16272359 101.3535329
25-Feb-99 98.73604937 97.5710061 99.79409044
26-Feb-99 98.8700565 97.85621137 99.40628669
1-Mar-99 98.45819441 97.54328138 98.61422421
2-Mar-99 98.34155321 96.82089828 98.27200519
3-Mar-99 98.89639483 96.32775758 98.44789554
4-Mar-99 99.61476568 96.9027889 99.96397695
5-Mar-99 100.1377698 97.70577906 101.3526435
8-Mar-99 100.6060711 97.7584047 100.9615043
9-Mar-99 100.8862415 97.91166081 101.8703081
10-Mar-99 101.1701746 98.27849999 101.2447967
11-Mar-99 101.3235737 99.79206457 102.6881649
12-Mar-99 101.6827591 100.4376912 102.0248515
15-Mar-99 102.2297861 100.502639 101.872087
16-Mar-99 102.7322404 100.1144928 101.660396
17-Mar-99 103.4181949 100.4741441 101.857411
18-Mar-99 103.4025655 100.7806564 101.5194169
19-Mar-99 104.6132606 101.8031339 101.8638595
22-Mar-99 104.9707095 101.2622451 101.1843135
23-Mar-99 104.5481384 100.1432444 99.38227132
24-Mar-99 103.4940261 99.40622882 98.53661899
25-Mar-99 103.9767991 100.5426858 100.2390419
26-Mar-99 104.227158 100.2769905 99.32890383
29-Mar-99 105.0731685 100.5016121 100.3575622
30-Mar-99 105.5947254 100.7544719 99.66067172
31-Mar-99 106.3067287 101.3613353 100.9370442
1-Apr-99 105.6129596 101.1033413 100.8823425
6-Apr-99 106.709329 101.6419198 101.4126819
7-Apr-99 107.7460753 102.4438831 102.0731046
8-Apr-99 107.4604057 102.7673382 103.4137403
9-Apr-99 107.9764634 103.6701887 104.1150781
12-Apr-99 107.7692299 103.7602941 103.8442381
13-Apr-99 108.3272553 104.1789888 104.0288007
14-Apr-99 109.814937 104.1448463 104.1090743
15-Apr-99 110.4247708 103.7020208 102.4793646
16-Apr-99 110.4291123 103.0869427 101.6477212
19-Apr-99 110.1778851 103.7025342 102.722409
20-Apr-99 107.8852922 102.89518 101.1796439
21-Apr-99 108.9347735 102.9878525 101.1545167
22-Apr-99 109.5466333 103.5338755 101.8634148
23-Apr-99 109.4855631 103.5906085 101.6161454
26-Apr-99 109.9341831 104.1833528 103.1746985
27-Apr-99 110.0528503 105.5185037 104.981188
28-Apr-99 110.2288251 105.5521328 104.8655584
29-Apr-99 110.6146383 105.7387612 104.2567243
30-Apr-99 111.5414004 106.7489167 104.8353168
3-May-99 111.7969691 107.0372025 106.1045736
4-May-99 112.1512341 107.4281724 105.1412904
5-May-99 111.7492127 106.8723944 104.2431601
6-May-99 112.3318399 107.1124186 103.7023695
7-May-99 112.1989905 106.9902245 103.4971271
10-May-99 112.5486246 107.1080545 103.6229854
11-May-99 113.0342919 107.5796316 103.4597698
12-May-99 112.9332801 107.4245785 102.9563365
14-May-99 112.3564416 106.4459984 101.7669086
17-May-99 111.2644137 105.309028 99.79942719
18-May-99 112.3897263 106.2606535 101.0233216
19-May-99 112.8050616 106.3176432 101.2972747
20-May-99 113.5289316 107.3131662 102.2981375
21-May-99 113.4837802 107.0264206 101.6659551
25-May-99 112.4716356 105.5901259 99.47188423
26-May-99 112.6603455 105.5259483 99.62909595
27-May-99 112.3318399 104.4813936 97.88864874
28-May-99 112.2290914 104.7714764 98.42543672
31-May-99 113.0814694 105.2340686 99.93707084
1-Jun-99 112.6018802 104.8810917 99.48789447
2-Jun-99 111.8881402 105.4915491 100.6379639
3-Jun-99 112.1622326 106.3489619 101.8847618
4-Jun-99 112.713601 107.3275419 103.2209503
7-Jun-99 113.1590372 107.0811 103.9652044
8-Jun-99 113.3448527 107.0205163 103.6992564
9-Jun-99 113.3529568 106.9368287 103.8282278
10-Jun-99 112.9651176 106.9555686 101.9258992
11-Jun-99 113.0571571 106.9221962 101.7660191
14-Jun-99 113.4311035 106.8970386 101.8093802
15-Jun-99 113.2516556 107.1706919 102.1925143
17-Jun-99 113.7986825 107.4918366 102.7942328
18-Jun-99 114.1627883 107.6399585 103.4973494
21-Jun-99 114.8936047 108.3631117 104.1213043
22-Jun-99 114.5720455 108.0180929 105.0823638
23-Jun-99 114.1836274 107.6302035 103.9020529
24-Jun-99 113.8594633 107.1614503 102.8020155
25-Jun-99 114.0464365 106.850574 102.1680542
28-Jun-99 114.1237149 106.9820097 101.2699239
29-Jun-99 114.0348592 107.4710431 101.1180489
30-Jun-99 114.1700241 107.3609143 101.8867631
1-Jul-99 114.2490391 108.276857 100.7500356
2-Jul-99 114.1358711 108.3307662 103.1228875
5-Jul-99 114.5949106 108.6203356 104.5262301
6-Jul-99 114.548312 108.7576756 105.5853524
7-Jul-99 114.627327 109.4821124 104.530455
8-Jul-99 114.755835 109.6050767 104.1101861
9-Jul-99 115.0817357 109.5994291 104.2791831
12-Jul-99 115.285496 109.7716818 104.1388711
13-Jul-99 114.5584422 109.3054957 104.4083769
14-Jul-99 114.7338381 110.3402953 103.0152631
15-Jul-99 115.0962073 110.3323373 103.4831181
16-Jul-99 115.1231245 110.2707268 103.7495108
19-Jul-99 115.4921506 110.1716366 103.3003344
20-Jul-99 114.531525 109.1319594 103.606308
21-Jul-99 114.4690076 108.6359949 102.1418152
22-Jul-99 114.2391984 108.3908365 102.3921977
23-Jul-99 114.1127165 107.5031319 101.5403191
26-Jul-99 113.914166 106.8854866 99.7391664
27-Jul-99 114.0921668 107.292886 98.81968905
28-Jul-99 115.0134297 107.3693857 99.95041271
29-Jul-99 114.5179216 106.5027314 100.1038442
30-Jul-99 114.8114059 107.0977861 98.60666382
2-Aug-99 114.1789965 106.5319964 100.7647116
3-Aug-99 113.9005627 106.6049021 101.1514036
4-Aug-99 113.5130129 106.5610047 101.076022
5-Aug-99 112.2499305 105.1832399 100.8678888
6-Aug-99 112.4108549 105.3924589 98.99935959
9-Aug-99 113.0250301 105.4042676 98.52883623
10-Aug-99 112.2973974 104.7055018 98.73341161
11-Aug-99 112.8438455 105.4789703 97.38276942
12-Aug-99 113.916192 106.5088924 98.28467997
13-Aug-99 114.6782671 107.0184626 99.84256591
16-Aug-99 115.2038761 107.699772 101.404232
17-Aug-99 115.486362 107.9731686 102.1084605
18-Aug-99 115.6501806 107.8240199 102.1678319
19-Aug-99 116.2548046 107.6443226 102.1351443
20-Aug-99 116.3859174 107.9731686 102.1275839
23-Aug-99 116.8018315 108.4845358 102.8462661
24-Aug-99 116.9268663 108.3002177 104.0714946
25-Aug-99 117.0446652 108.9509786 103.5438236
26-Aug-99 117.2232449 109.5013657 104.0568186
27-Aug-99 117.5216495 109.4276898 104.1239727
30-Aug-99 118.1963161 109.5822295 104.4270555
31-Aug-99 118.3795267 108.9589366 104.4092664
1-Sep-99 119.0003589 109.5124042 102.4480112
2-Sep-99 118.5144021 109.1055182 103.7212705
3-Sep-99 119.0434843 109.9298154 102.7152933
6-Sep-99 120.0032416 110.6170291 104.1813427
7-Sep-99 120.0310271 110.4375886 105.0694667
8-Sep-99 120.3250903 110.4162816 104.9251521
9-Sep-99 119.899046 110.6447539 104.6116181
10-Sep-99 120.490935 110.743074 105.0183228
13-Sep-99 120.7482403 110.7792701 104.8135251
14-Sep-99 120.6541748 110.909679 103.532483
15-Sep-99 121.4561915 110.9684657 103.2331803
16-Sep-99 120.7522923 110.5359087 103.4597698
17-Sep-99 121.394253 110.6252439 102.6499182
20-Sep-99 121.3852806 110.9374037 103.2136123
21-Sep-99 121.5137886 110.4658267 103.765521
22-Sep-99 121.4101718 109.8253342 103.333022
23-Sep-99 122.0703668 110.2168176 102.9543352
24-Sep-99 121.0880337 109.4474565 103.5691732
27-Sep-99 121.4611119 109.5966053 102.2031878
28-Sep-99 121.3441813 109.3686464 103.420856
29-Sep-99 121.1343429 109.2012712 101.7362223
30-Sep-99 122.3641405 109.3088329 101.4366973
2
<PAGE>
THE SWISS HELVETIA FUND, INC.
- --------------------------------------------------------------------------------
Quarterly results
The upturn in economic activity in Europe and Japan has put some pressure
on the U.S. dollar which lost nearly 4% against the Swiss Franc and much more
against the Japanese Yen. The drop in the value of the U.S. dollar, combined
with a very stable Swiss market, benefited Fund investors.
Despite an increase in the Fund's discount to its net asset value,
stockholders of the Fund enjoyed performance that exceeded the return of the
Standard & Poor's 500 Index.
- --------------------------------------------------------------------------------
*Total Return (unaudited) for the periods ended 9/30/99
- --------------------------------------------------------------------------------
(Third (Third (Year (Year
Quarter Quarter to to
1999) 1999) Date) Date)
U.S. Swiss U.S. Swiss
Dollar Franc Dollar Franc
- --------------------------------------------------------------------------------
The Swiss Helvetia Fund**
Net Asset Value 5.23% 1.35% -7.89% 0.73%
The Swiss Helvetia Fund**
Market Price 0.89% -2.84% -11.00% -2.67%
S&P 500 Index -6.55% -9.94% 4.12% -13.84%
The Swiss Performance Index 4.56% 0.87% -7.06% 1.64%
- --------------------------------------------------------------------------------
*These figures assume the reinvestment of dividends and capital gains
distributions. 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.
**Modified Dietz model.
Swiss economy
Most of the macro-indicators have been pointing towards higher economic
growth. Unemployment fell again in August to 2.4%. Growth in domestic lending
accelerated to an annualized rate of 4.2% between the last quarter of 1998 and
the end of July 1999. During the second quarter of this year, the increase in
retail sales volume averaged 1.8%. This trend continued into August. All this
supports strong domestic demand. Return to growth in Euroland and a relatively
strong U.S. dollar should stimulate a turn-around in Swiss exports, giving the
Swiss Gross Domestic Product a more sustainable recovery. Inflation remained low
at 1.2% year-over-year in September (0.6% without the effect of a VAT increase
and a surge in oil prices). Given the current economic environment in Europe,
Management does not expect monetary policy to stay very accommodative for much
longer. However, this seems to be factored into stock market prices.
Corporate activity
Global consolidation of industries plagued by over-capacity also affected
Swiss companies. Alcan Aluminium of Canada agreed to buy Pechiney of France and
the aluminum and packaging unit of Algroup. The total transaction price was $9.2
billion in stock. The fine chemicals business of the Lonza subsidiary of Algroup
will be spun off before completion of the transaction.
Roche exercised its option to buy the shares of U.S. based Genentech which
it did not already own and, on July 20, Roche sold 20 million shares back to the
public at a price of $97 adding $1.94 billion to its cash hoard.
3
<PAGE>
THE SWISS HELVETIA FUND, INC.
- --------------------------------------------------------------------------------
The private banking division of UBS agreed to purchase GAM Global Asset
Management, a Bermuda based company with $13.9 billion in assets under
management. The price range was $575 to $675 million. This will result in an
increase of between 4.1% and 4.9% to the bank's assets under management.
Stockholder value continued to be a preoccupation for Swiss management.
Corporate restructuring is an ongoing process, especially in the industrial
sector. Sulzer, Oerlikon Buhrle and Gurit took steps to divest non-core
activities and to strengthen core franchises. Novartis has finally started to
explore the possibility of spinning off its agribusiness.
Swiss market outlook
Current risk is relatively low on the Swiss market. The equity risk premium
of 2.5% (based on the 10 year government bond and 2000 earnings forecast) is
very high compared to other international markets and should provide good
downside protection. Expectations are moderate and earnings revisions have been
on the upside after decent quarterly results for the overall market. Swiss
institutions have been coming back to the market. International investors should
be encouraged by a more stable currency, a better earnings picture and
stabilisation of stock prices in the financial sector.
In U.S. dollar terms, the third quarter saw the Swiss market starting to
outperform most of its European peers as well as the S & P 500. This could be a
sign that the Swiss indexes have reached a bottom.
- --------------------------------------------------------------------------------
The Swiss Helvetia Fund--Portfolio Holdings per Industry
As of September 30, 1999
- --------------------------------------------------------------------------------
Life Sciences 18.3%
Pharmaceuticals 16.5
Banks 14.0
Food & Luxury Goods 12.6
Insurance 10.5
Electrical Engineering
and Electronics 7.0
Misc. Services 5.3
Building Contractors
& Materials 3.2
Machinery 2.6
Chemicals 2.5
Misc. Industries 2.1
Cash and Equivalents 2.0
Retailers 1.9
Telecommunications 1.1
Transport 0.4
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Swiss Helvetia Fund--Ten Largest Holdings (in U.S. dollars)
As of September 30, 1999
- --------------------------------------------------------------------------------
% of Total
Cost Market Value Net Assets
- --------------------------------------------------------------------------------
1. Novartis Ltd. $ 30,098,514 $ 77,054,986 18.3%
2. Roche Holdings Ltd. 15,895,280 65,312,375 15.5
3. Nestle AG 17,348,232 50,685,661 12.0
4. Credit Suisse Group 7,207,699 20,503,262 4.9
5. Swiss Reinsurance
Company 5,838,682 19,937,425 4.8
6. Zurich Allied Ltd. 5,196,372 17,829,850 4.2
7. UBS AG 5,933,331 17,739,981 4.2
8. ABB Ltd. 12,131,528 17,128,212 4.1
9. Holderbank
Financiere Glarus AG 7,136,284 10,379,443 2.5
10. Adecco SA 5,142,887 8,377,713 2.0
Total $111,928,809 $304,948,908 72.5%
- --------------------------------------------------------------------------------
4
<PAGE>
THE SWISS HELVETIA FUND, INC.
- --------------------------------------------------------------------------------
The next quarter, however, will be affected by the Y2K situation. Trading
volume and activity in the capital markets could be lower, negatively affecting
the banking sector.
Share Buy-Back Update and Discount Development
The discount has fluctuated in the same range as in the last quarter
despite the share buy-back program. Through September 30, 1999 the Fund
purchased 622,900 shares of its stock at an average price of $14.246 and an
average discount of 18.10%. This program has enhanced shareholder value by
$1,953,066.
Management believes the Fund is a good value at current levels. Real
value-added is provided to the stockholders of the Fund through Management's
stock selection expertise and its specific knowledge of investing in mid and
small cap stocks. In that segment of the market close contact with companies'
management and constant monitoring of business developments are fundamental.
Thank you for your continued interest in the Fund.
Sincerely,
/s/ Paul Hottinguer
Paul Hottinguer
Chairman and Chief Executive Officer
/s/ Rodolphe Hottinger
Rodolphe Hottinger
President and Chief Operating Officer
November 1, 1999
5
<PAGE>
THE SWISS HELVETIA FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1999
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
Common Stocks and Warrants - 98.0%
Banks - 14.0%
3,500 Bank Sarasin & Cie
Registered Shares $ 6,150,979 1.5%
A bank specializing in investment advisor
services and portfolio management for
private and institutional customers in
Europe.
(cost $4,138,291)
112,000 Credit Suisse Group/1
Registered Shares 20,503,262 4.9
A global financial services institution
whose main holding is Credit Suisse.
(cost $7,207,699)
2,000 Julius Baer Holdings Ltd.
Bearer Shares 5,924,644 1.4
Banking group specializing in asset
management, investment consulting and
securities trading.
(cost $3,660,089)
1,500 Oz Holding AG
Bearer Shares 1,348,023 0.3
Provides brokerage and banking
services, specializing in Swiss futures
and options.
(cost $1,365,178)
60,000 UBS AG
Warrants Expiring 6/30/00/2 854,746 0.2
(cost $605,422)
63,000 Registered Shares/1 17,739,981 4.2
Product 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 Banking, Private and
Corporate Customers, and Private Equity.
(cost $5,933,331)
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
Banks - (continued)
4,000 Valiant Holding AG
Registered Shares $ 1,890,560 0.5%
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)
2,500 Vontobel Holding Ltd.
Bearer Shares 4,277,060 1.0
Provides investment, banking and
consulting services to private and
institutional customers.
(cost $4,594,650)
------------ -----
58,689,255 14.0
Building Contractors & Materials - 3.2%
4,000 Forbo Holdings Ltd. SA
Registered Shares 1,744,109 0.4
Manufactures building materials and
decorative home products.
(cost $1,740,023)
5,000 Geberit Ag
Registered Shares/2 1,397,950 0.3
Manufactures and supplies water supply
pipes and fittings, installation systems,
drainage and flushing systems for the
commercial and residential construction
markets.
(cost $1,136,056)
8,000 Holderbank Financiere Glarus AG1
Bearer Shares 10,379,443 2.5
Large cement producer with worldwide
operations.
(cost $7,136,284)
------------ -----
13,521,502 3.2
6
<PAGE>
THE SWISS HELVETIA FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets (continued) September 30, 1999
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
Common Stocks and Warrants - (continued)
Chemicals - 2.5%
28,000 Ciba Specialty Chemicals, Inc.
Registered Shares $ 2,152,842 0.5%
Develops, manufactures and markets
specialty chemical products worldwide.
These products include additives,
performance polymers, textile dyes,
consumer care chemicals and pigments.
(cost $1,029,819)
11,000 Clariant AG
Registered Shares 4,979,364 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
paint industries.
(cost $2,813,989)
2,000 Gurit-Heberlein AG
Bearer Shares 1,071,761 0.3
European market leader for wind screen
bonding systems, ski based and optically
pure thermoplastic sheeting for the auto
industry.
(cost $872,456)
7,000 Sika Finanz AG
Bearer Shares 2,176,142 0.5
Leading producer of construction
chemicals.
(cost $1,877,743)
------------ -----
10,380,109 2.5
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
Electrical Engineering & Electronics - 7.0%
166,000 ABB Ltd./1
The holding company for ABB $ 17,128,212 4.1%
Asea Brown Boveri Ltd. (ABB Group)
which is one of the largest electrical
engineering firms in the world.
(cost $12,131,528)
3,000 Belimo Automation AG
Registered Shares 1,082,412 0.3
World market leader in damper and
volume control actuators for ventilation
and air conditioning equipment.
(cost $746,174)
15,000 Gretag-Imaging Holding AG
Registered Shares 1,687,525 0.4
Manufactures image processing
equipment and systems.
(cost $1,423,297)
13,000 Logitech International SA
Registered Shares/2 2,111,570 0.5
Manufactures personal computer input
devices, as well as, producing trackballs,
desktop publishing programs, and
related software.
(cost $1,789,886)
4,600 Saia-Burgess Electronics Holding AG
Registered Shares 1,347,357 0.3
Develops and produces switches,
motors, and programmable control
devices. The company's products are
mainly used in the automobile, heating &
air conditioning and telecommunications
industries.
(cost $1,136,053)
7
<PAGE>
THE SWISS HELVETIA FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets (continued) September 30, 1999
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
Common Stocks and Warrants - (continued)
Electrical Engineering & Electronics (continued)
9,000 Swisslog Holding, Inc.
Registered Shares $ 1,407,935 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 $735,745)
2,500 Tecan AG
Registered Shares 888,697 0.2
Manufactures and distributes
components and complete solutions for
the automation of laboratory processes.
(cost $845,950)
5,000 The Swatch Group of Switzerland
Bearer Shares 3,887,631 0.9
Manufactures watches, watch
components and microelectronics.
Produces machine tools for scientific,
medical and industrial use and small
electric and alternative fuel compact cars
worldwide.
(cost $3,007,638)
------------ -----
29,541,339 7.0
Food & Luxury Goods - 12.6%
5,000 Barry Callebaut Ltd.
Registered Shares 807,149 0.2
Produces and markets raw chocolate and
other cocoa based products.
(cost $800,593)
60 Lindt & Sprungli AG
Registered Shares 1,554,320 0.4
Major manufacturer of premium Swiss
chocolates.
(cost $1,196,399)
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
Food & Luxury Goods (continued)
27,000 Nestle AG/1
Registered Shares $ 50,685,661 12.0
Largest food and beverage processing
company in the world.
(cost $17,348,232)
------------ -----
53,047,130 12.6
Insurance - 10.5%
5,000 Baloise Holding
Registered Shares 4,120,623 1.0
Medium-sized insurer active in all
sectors of insurance.
(cost $1,981,491)
6,000 Generali (Switzerland) Holding
Registered Shares 1,997,071 0.5
An insurance, financial and real estate
services company.
(cost $2,243,128)
10,000 Schweizerische Ruckversicherungs-
Gesellschaft (Swiss Reinsurance
Company)/1
Registered Shares 19,937,425 4.8
Second largest reinsurance company in
the world.
(cost $5,838,682)
32,000 Zurich Allied Ltd./1
Registered Shares 17,829,850 4.2
A large worldwide insurance operator.
(cost $5,196,372)
------------ -----
43,884,969 10.5
8
<PAGE>
THE SWISS HELVETIA FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets (continued) September 30, 1999
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
Common Stocks and Warrants - (continued)
Life Sciences - 18.3%
52,000 Novartis Ltd.1
Registered Shares $ 77,054,986 18.3
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.
(cost $30,098,514)
------------ -----
77,054,986 18.3
Machinery - 2.6%
1,500 Bucher Holding Ltd.
Bearer Shares 1,228,199 0.3
Manufacturer of agricultural machines,
special vehicles, fruit juice equipment
and plastics machines.
(cost $1,047,724)
5,000 Feintool International Holding
Registered Shares 1,331,381 0.3
Supplier of integrated systems for fine-
blanking and forming technologies.
(cost $1,059,527)
8,000 Georg Fischer AG
Registered Shares 2,556,251 0.6
A mechanical engineering group that is a
market leader in vehicle engineering and
pipeline systems.
(cost $2,609,553)
Mikron Holding AG
6,000 Registered Shares 1,713,487 0.4
6,000 Warrants Expiring 12/15/99/2 16,656 0.0
Machine tools and milling machine producer.
(cost $773,404)
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
Machinery (continued)
1,700 Rieter Holding AG
Registered Shares $ 1,054,720 0.3%
Leading supplier of spinning machinery
for the textile industry.
(cost $569,618)
2,000 Schindler Holding AG
Registered Shares 3,082,146 0.7
One of the world's largest elevator
companies and a leading Swiss
machinery enterprise.
(cost $2,569,092)
------------ -----
10,982,840 2.6
Miscellaneous Industries - 2.1%
3,800 Alusuisse-Lonza Group Ltd.
Registered Shares 4,371,189 1.0
A major aluminum producing and
processing company.
(cost $2,765,161)
6,000 Huber & Suhner AG
Registered Shares 1,817,335 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)
3,000 Komax Holding Ltd.
Registered Shares 1,637,598 0.4
World leading manufacturer of wire
processing machines.
(cost $1,332,269)
9
<PAGE>
THE SWISS HELVETIA FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets (continued) September 30, 1999
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
Common Stocks and Warrants - (continued)
Machinery (continued)
2,500 Phoenix Mecano AG
Bearer Shares $ 1,173,279 0.3
Leading Swiss packaging manufacturer
for the mechanical engineering and
electronics industry.
(cost $1,179,117)
------------ -----
8,999,401 2.1
Miscellaneous Services - 5.3%
15,000 Adecco SA1
Bearer Shares2 8,377,713 2.0
Leading personnel and temporary
employment company.
(cost $5,142,887)
3,500 Compagnie Financiere Richemont AG
Bearer Shares 7,078,285 1.7
Investment company with principal
interests in luxury goods and tobacco.
(cost $3,155,503)
700 Kuoni Travel Holding Ltd.
Registered Shares 2,751,631 0.7
Leader in the Swiss travel and tourism
sector with subsidiaries in the United
Kingdom, Germany, France and Austria.
(cost $1,525,845)
2,400 Moevenpick Holding
Bearer Shares 1,036,879 0.2
Through its subsidiaries, invests in the
hotel and restaurant business worldwide.
Also produces food items under the
Moevenpick name, including ice cream,
coffee, salmon and jams.
(cost $829,529)
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
Miscellaneous Services (continued)
4,500 PubliGroupe Ltd.
Participation Certificates $ 3,124,418 0.7%
Largest Swiss advertising intermediary.
(cost $1,067,926)
------------ -----
22,368,926 5.3
2,500 Ares Serono SA
Bearer Shares 3,944,215 1.0
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 Holdings Ltd.1
Dividend Rights Certificates 65,312,375 15.5
Worldwide pharmaceutical company.
(cost $15,895,280)
------------ -----
69,256,590 16.5
Retailers - 1.9%
2,500 Bon appetit Holding AG
Registered Shares 1,947,144 0.5
Swiss market leader that operates "Cash
and Carry".
(cost $1,008,766)
10,000 Charles Voegele Holding AG/2
Manufactures and markets a variety of 1,863,933 0.4
clothing items for men, women and
children. Operates approximately 385
retail stores in Switzerland, Germany,
Austria, and the Benelux region.
(cost $1,462,733)
10
<PAGE>
THE SWISS HELVETIA FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets (concluded) September 30, 1999
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
Common Stocks and Warrants - (concluded)
Retailers (continued)
1,500 Jelmoli Holding Ltd.
Bearer Shares $ 1,636,600 0.4%
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)
10,000 Valora Holding AG
Registered Shares 2,536,280 0.6
Operates restaurants, food vending
machines and specialty retail stores.
(cost $2,333,483)
------------ -----
7,983,957 1.9
Telecommunications - 1.1%
15,000 Swisscom AG
Registered Shares 4,673,146 1.1
Operates public telecommunication
networks and offers network application
services.
(cost $5,049,193)
------------ -----
4,673,146 1.1
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
Transport - 0.4%
8,000 Sairgroup Holding Ltd.
Registered Shares $ 1,728,132 0.4%
Switzerland's largest airline company.
(cost $1,654,158)
------------ -----
1,728,132 0.4
795,410 Total Common Stocks and Warrants
(Cost $191,314,352) 412,112,282 98.0
Other Assets in Excess of Liabilities 8,271,302 2.0
------------ -----
Net Assets Applicable to
24,019,132 Shares of
Common Stock Outstanding $420,383,584 100.0%
============ =====
Net Asset Value Per Share
($420,383,584 / 24,019,132) $17.50
======
- --------------------------------------------------------------------------------
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 of Directors 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
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
