THE SWISS
HELVETIA
FUND, INC.
www.swz.com
QUARTERLY REPORT
FOR THE PERIOD ENDED
MARCH 31, 2000
<PAGE>
THE SWISS HELVETIA FUND, INC.
- --------------------------------------------------------------------------------
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
Paul R. Brenner, Esq.
SECRETARY
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
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THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders
ECONOMIC ENVIRONMENT
European economies continued on their path to recovery in an environment of
modest inflation. The European Central Bank was forced to tighten money supply
because of signs of possible overheating in the economies of peripheral
countries such as Ireland and Spain. Unemployment, exports (thanks to a weak
Euro and recovery in Asia), and building construction all showed improvements.
SWISS ECONOMY
Economic activity was surprisingly strong during the 4th Quarter 1999. The
Gross Domestic Product grew at 3.7%, driven mainly by exports and consumer
spending. The decline in the unemployment rate from 2.5% in December to 2.3% in
March reinforced consumer confidence and stim- ulated retail sales. A weaker
Swiss franc helped exports and industrial production. Despite high-energy
prices, the Consumer Price Index remained well behaved (1.5% in March) thanks to
deregulation of the service sector and productivity gains. Nevertheless, the
Swiss National Bank (SNB) lifted key interest rates more than expected to a
range of 2.5% - 3.5% which is substantial. Last August rates were at 1.1%. SNB
wants to be ahead of the inflation curve and stem the decline of the Swiss
franc. This has shown some success: especially strengthening the Swiss franc
against the Euro.
THE SWISS FRANC VS THE EURO
[GRAPHIC OMITTED]
PLOT POINTS FOLLOW
2-Nov-03 0.623
3-Nov-03 0.622
4-Nov-03 0.621
5-Nov-03 0.619
6-Nov-03 0.62
9-Nov-03 0.623
10-Nov-03 0.622
11-Nov-03 0.622
12-Nov-03 0.623
13-Nov-03 0.623
16-Nov-03 0.623
17-Nov-03 0.624
18-Nov-03 0.624
19-Nov-03 0.625
20-Nov-03 0.624
23-Nov-03 0.624
24-Nov-03 0.625
25-Nov-03 0.625
26-Nov-03 0.625
27-Nov-03 0.623
30-Nov-03 0.623
1-Dec-03 0.625
2-Dec-03 0.624
3-Dec-03 0.625
4-Dec-03 0.627
7-Dec-03 0.625
8-Dec-03 0.625
9-Dec-03 0.625
10-Dec-03 0.625
11-Dec-03 0.625
14-Dec-03 0.624
15-Dec-03 0.625
16-Dec-03 0.625
17-Dec-03 0.625
18-Dec-03 0.624
21-Dec-03 0.626
22-Dec-03 0.625
23-Dec-03 0.625
24-Dec-03 0.623
25-Dec-03 0.624
28-Dec-03 0.623
29-Dec-03 0.623
30-Dec-03 0.623
31-Dec-03 0.622
1-Jan-04 0.625
4-Jan-04 0.623
5-Jan-04 0.624
6-Jan-04 0.626
7-Jan-04 0.623
8-Jan-04 0.621
11-Jan-04 0.621
12-Jan-04 0.621
13-Jan-04 0.621
14-Jan-04 0.62
15-Jan-04 0.62
18-Jan-04 0.619
19-Jan-04 0.62
20-Jan-04 0.62
21-Jan-04 0.621
22-Jan-04 0.62
25-Jan-04 0.621
26-Jan-04 0.62
27-Jan-04 0.62
28-Jan-04 0.62
29-Jan-04 0.622
1-Feb-04 0.622
2-Feb-04 0.622
3-Feb-04 0.621
4-Feb-04 0.622
5-Feb-04 0.622
8-Feb-04 0.622
9-Feb-04 0.622
10-Feb-04 0.621
11-Feb-04 0.623
12-Feb-04 0.623
15-Feb-04 0.622
16-Feb-04 0.623
17-Feb-04 0.623
18-Feb-04 0.623
19-Feb-04 0.624
22-Feb-04 0.624
23-Feb-04 0.622
24-Feb-04 0.621
25-Feb-04 0.622
26-Feb-04 0.622
29-Feb-04 0.623
1-Mar-04 0.623
2-Mar-04 0.623
3-Mar-04 0.622
4-Mar-04 0.622
7-Mar-04 0.622
8-Mar-04 0.623
9-Mar-04 0.623
10-Mar-04 0.622
11-Mar-04 0.621
14-Mar-04 0.62
15-Mar-04 0.62
16-Mar-04 0.62
17-Mar-04 0.62
18-Mar-04 0.621
21-Mar-04 0.621
22-Mar-04 0.62
23-Mar-04 0.622
24-Mar-04 0.625
25-Mar-04 0.63
28-Mar-04 0.629
29-Mar-04 0.629
30-Mar-04 0.627
31-Mar-04 0.628
1-Apr-04 0.628
THE SWISS FRANC VS THE U.S. DOLLAR
[GRAPHIC OMITTED]
PLOT POINTS FOLLOW
2-Nov-03 1.526
3-Nov-03 1.527
4-Nov-03 1.534
5-Nov-03 1.556
6-Nov-03 1.549
9-Nov-03 1.549
10-Nov-03 1.546
11-Nov-03 1.54
12-Nov-03 1.544
13-Nov-03 1.556
16-Nov-03 1.553
17-Nov-03 1.556
18-Nov-03 1.54
19-Nov-03 1.556
20-Nov-03 1.555
23-Nov-03 1.553
24-Nov-03 1.557
25-Nov-03 1.571
26-Nov-03 1.571
27-Nov-03 1.577
30-Nov-03 1.589
1-Dec-03 1.586
2-Dec-03 1.588
3-Dec-03 1.597
4-Dec-03 1.591
7-Dec-03 1.564
8-Dec-03 1.56
9-Dec-03 1.557
10-Dec-03 1.566
11-Dec-03 1.579
14-Dec-03 1.579
15-Dec-03 1.591
16-Dec-03 1.589
17-Dec-03 1.574
18-Dec-03 1.588
21-Dec-03 1.577
22-Dec-03 1.587
23-Dec-03 1.585
24-Dec-03 1.58
25-Dec-03 1.585
28-Dec-03 1.585
29-Dec-03 1.595
30-Dec-03 1.597
31-Dec-03 1.593
1-Jan-04 1.591
4-Jan-04 1.567
5-Jan-04 1.557
6-Jan-04 1.549
7-Jan-04 1.553
8-Jan-04 1.565
11-Jan-04 1.569
12-Jan-04 1.558
13-Jan-04 1.562
14-Jan-04 1.571
15-Jan-04 1.595
18-Jan-04 1.596
19-Jan-04 1.591
20-Jan-04 1.593
21-Jan-04 1.585
22-Jan-04 1.596
25-Jan-04 1.6
26-Jan-04 1.611
27-Jan-04 1.61
28-Jan-04 1.633
29-Jan-04 1.651
1-Feb-04 1.658
2-Feb-04 1.657
3-Feb-04 1.65
4-Feb-04 1.623
5-Feb-04 1.635
8-Feb-04 1.638
9-Feb-04 1.632
10-Feb-04 1.619
11-Feb-04 1.63
12-Feb-04 1.625
15-Feb-04 1.645
16-Feb-04 1.637
17-Feb-04 1.626
18-Feb-04 1.625
19-Feb-04 1.629
22-Feb-04 1.624
23-Feb-04 1.602
24-Feb-04 1.606
25-Feb-04 1.621
26-Feb-04 1.649
29-Feb-04 1.655
1-Mar-04 1.665
2-Mar-04 1.651
3-Mar-04 1.665
4-Mar-04 1.677
7-Mar-04 1.677
8-Mar-04 1.676
9-Mar-04 1.672
10-Mar-04 1.662
11-Mar-04 1.67
14-Mar-04 1.672
15-Mar-04 1.664
16-Mar-04 1.668
17-Mar-04 1.663
18-Mar-04 1.658
21-Mar-04 1.657
22-Mar-04 1.676
23-Mar-04 1.674
24-Mar-04 1.646
25-Mar-04 1.623
28-Mar-04 1.642
29-Mar-04 1.656
30-Mar-04 1.676
31-Mar-04 1.657
1-Apr-04 1.665
Switzerland also reported a new record current account surplus --
supporting the Swiss franc. On the negative side, a tighter monetary policy
pushed mortgage rates higher.
2
<PAGE>
THE SWISS STOCK MARKET AND SWISS HELVETIA FUND PERFORMANCE
The Swiss market had a mediocre return in the 1st Quarter and great
differences in performance among industry sectors. The blue chips suffered in
the first part of the quarter due to their lack of sensitivity to economic
growth and continued to be penalized by the increase in interest rates. Late in
the quarter, however, the sharp correction in Nasdaq sparked a rotation into the
so called value stocks (lower price multiple than the market average) allowing
the Swiss market in general and its blue chip component in particular to
outperform.
- -------------------------------------------------------------
SPI SECTOR PERFORMANCE (12/31/99 - 3/31/00)
PERFORMANCE
- -------------------------------------------------------------
Electronics & Electrical Engineering +16.05%
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Machinery +11.51
- -------------------------------------------------------------
Miscellaneous Industrial +9.30
- -------------------------------------------------------------
Miscellaneous Services +5.31
- -------------------------------------------------------------
Retailers +4.90
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Banks +4.15
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Foods +2.62
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Transportation -.96
- -------------------------------------------------------------
Utilities -1.80
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Chemicals & Pharmaceuticals -3.80
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Building Materials & Construction -6.20
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Insurance -7.37
- -------------------------------------------------------------
The Swiss Helvetia Fund, thanks to its strong exposure in mid sized asset
management companies and the electronics and electrical engineering groups,
outperformed its benchmark both in terms of its market price and net asset
value.
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TOTAL RETURN PERFORMANCE U.S. SWISS
FOR THE QUARTER ENDED 3/31/00* DOLLARS FRANCS
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SWISS PERFORMANCE INDEX (3.18%) 1.05%
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THE SWISS HELVETIA FUND BASED ON (1.08%) 3.24%
NET ASSET VALUE
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THE SWISS HELVETIA FUND BASED ON (0.45%) 3.90%
MARKET PRICE
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*Past performance is not an indicator of future results. These figures assume
the reinvestment of dividends and capital gains distributions.
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TOTAL RETURN (12/31/99 - 3/31/00)
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SPI Small Companies Index 25.00%
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SPI Mid Companies Index 20.13
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SPI Large Companies Index -2.58
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As stated in the prior report, Management decided to increase the exposure
of the Fund into mid- and small capitalization stocks. However, the
implementation of this decision has been very gradual because of the sharp
run-up of the mid- and small cap segments in the beginning of the year. A big
valuation gap, however, between Swiss growth stocks and their U.S. peers
remains, even after the recent NASDAQ correction. Management expects to pursue
its strategy to rebalance the Fund's portfolio in favor of mid- and small caps,
because they benefit disproportionately from stronger economic growth.
3
<PAGE>
THE SWISS HELVETIA FUND, INC.
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For the full year 1999, corporate results were better than expectations
overall. This was especially the case for the mid-cap growth stocks and the
mid-sized asset managers like Vontobel Holdings, Bank Sarasin andJulius Baer
Holdings. The health- care sector also showed strong results (Novartis, Roche,
Ares Serono).
COMPANY NEWS
In the 1st quarter 2000, UBS announced a restructuring, where the new
business structure will consist of three main businesses: UBS Switzerland, UBS
Asset Management, and UBS Warburg. UBS Warburg will be responsible for
international onshore Private Banking, e-services and Private Equity. UBS Asset
Management will get the responsibility for Global Asset Management and the
mutual funds.
Clariant, in order to increase its exposure on the drug and pesticide
market, announced the acquisition of rival BTP of the United Kingdom for $2
billion in cost and assumed debt.
Pechiney of France pulled off the three-way merger with Algroup of
Switzerland and Alcan of Canada after a panel of anti-trust officials from the
European Union recommended the rejection of the merger.
Swisscom announced an initial public offering of its internet service
provider business, Blue Window.
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THE SWISS HELVETIA FUND--TEN LARGEST HOLDINGS (IN U.S. DOLLARS)
AS OF MARCH 31, 2000
- --------------------------------------------------------------------------------
COST MARKET VALUE% OF TOTAL
IN U.S.$ IN U.S.$ NET ASSETS
- --------------------------------------------------------------------------------
1. Novartis Ltd. $ 24,690,092 $ 64,412,677 15.2%
- --------------------------------------------------------------------------------
2. Roche Holdings Ltd. 15,895,280 61,365,769 14.5
- --------------------------------------------------------------------------------
3. Nestle AG 14,102,656 41,936,493 9.9
- --------------------------------------------------------------------------------
4. Credit Suisse Group 7,207,699 22,294,924 5.3
- --------------------------------------------------------------------------------
5. ABB Ltd. 14,539,020 21,480,034 5.1
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6. Swiss Reinsurance Company 5,838,682 17,326,197 4.1
- --------------------------------------------------------------------------------
7. UBS AG 5,933,331 16,557,012 3.9
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8. Zurich Allied Ltd. 4,691,524 14,564,710 3.5
- --------------------------------------------------------------------------------
9. Adecco SA 5,142,887 10,374,068 2.5
- --------------------------------------------------------------------------------
10. Ares-Serono SA 2,779,562 9,035,362 2.1
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Total $100,820,733 $279,347,246 66.1%
- --------------------------------------------------------------------------------
ABB announced it will sell to its partner its stake in ABB Alstom Power,
the joint-venture established with Alstom for $1.2 billion in cash.
OUTLOOK IS STILL PROMISING:
The Swiss market continues to offer a good diversification for U.S.
investors due to its low valuation and defensive characteristics. In addition,
despite bright prospects, Swiss growth companies trade at a lower multiple than
their European and North American peers. The price/earning ratio for the overall
market based on 2000 earnings estimates stands at 17 times forecasted earnings
and earnings growth for the year 2000 should be +10% and +8% for the year 2001.
4
<PAGE>
THE SWISS HELVETIA FUND, INC.
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As mentioned, Management will con- tinue to increase the exposure of the
Fund in the mid- and small cap sectors. In this area of the market, the strategy
is to look for emerging companies. These companies should have the key
intellectual assets that will allow them to leverage their business model into a
fast-growing environment and protect them from competition.
Management also believes that it can provide value added to the
stockholders of the Fund with this strategy and hopefully reduce the discount to
Net Asset Value in creating more demand for the shares of the Swiss Helvetia
Fund.
SHARE BUY-BACK UPDATE AND DISCOUNT DEVELOPMENT
The discount has fluctuated in the same range during the 1st quarter 2000
despite the continuation of the share buy-back program.
Through March 31, 2000 the Fund repurchased 243,600 shares of it stock at
an average price of $13.23 and an average discount of 21.68%. This program has
enhanced stockholder value by $885,700.
Sincerely,
[SIGNATURE OMITTED]
Paul Hottinguer
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
[SIGNATURE OMITTED]
Rodolphe Hottinger
PRESIDENT AND CHIEF OPERATING OFFICER
May 1, 2000
5
<PAGE>
THE SWISS HELVETIA FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 2000
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS - 99.2%
BANKS - 15.5%
3,000 BANK SARASIN & CIE
REGISTERED SHARES $ 8,299,254 1.9%
A bank specializing in
investment advisor services
and portfolio management for
private and institutional
customers in Europe. (cost
$3,240,093)
112,000 CREDIT SUISSE GROUP(1)
REGISTERED SHARES 22,294,924 5.3
A global financial services
institution whose main
holding is Credit Suisse.
(cost $7,207,699)
2,000 JULIUS BAER HOLDINGS LTD.
BEARER SHARES 7,529,468 1.8
Banking group specializing
in asset management,
investment consulting and
securities trading. (cost
$3,660,089)
1,500 OZ HOLDING AG
BEARER SHARES 1,596,704 0.4
Provides brokerage and
banking services,
specializing in Swiss
futures and options. (cost
$1,365,178)
UBS AG
60,000 WARRANTS EXPIRING 6/30/00 (2) 793,842 0.2
(cost $605,422)
63,000 REGISTERED SHARES(1) 16,557,012 3.9
Product of the merger of
Basel-based Swiss Bank
Corp. and Zurich-based
Union Bank of Switzerland.
The group operates globally
and has three core business
units: UBSSwitzerland,
UBSAsset Management and
UBSWarburg. (cost
$5,933,331)
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
BANKS - (CONTINUED)
4,000 VALIANT HOLDING AG
REGISTERED SHARES $ 1,715,179 0.4%
The largest regional bank
of Switzerland with
activities focused on
mortgage loans and
commercial business with
small and mid-sized
companies. (cost
$1,916,009)
3,000 VONTOBEL HOLDING LTD.
BEARER SHARES 6,928,073 1.6
Provides investment,
banking and consulting
services to private and
institutional customers.
(cost $5,458,768)
----------- -----
65,714,456 15.5
BUILDING CONTRACTORS & MATERIALS - 2.0%
5,600 GEBERIT AG
REGISTERED SHARES(2) 1,811,884 0.4
Manufactures and supplies
water supply pipes and
fittings, installation
systems, drainage and
flushing systems for the
commercial and residential
construction markets. (cost
$1,341,565)
5,500 HOLDERBANK FINANCIERE GLARUS AG
BEARER SHARES 6,549,194 1.6
Large cement producer with
worldwide operations. (cost
$4,368,730)
----------- -----
8,361,078 2.0
6
<PAGE>
THE SWISS HELVETIA FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets (continued) March 31, 2000
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS - (CONTINUED)
CHEMICALS - 1.9%
25,000 CIBA SPECIALTY CHEMICALS, INC.
REGISTERED SHARES $ 1,559,869 0.4%
Develops, manufacturers and
markets specialty chemical
products worldwide. These
products include additives,
performance polymers,
textile dyes, consumer care
chemicals, and pigments.
(cost $799,526)
8,800 CLARIANT AG
REGISTERED SHARES 3,312,966 0.8
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
$1,851,408)
2,000 GURIT-HEBERLEIN AG
BEARER SHARES 1,171,518 0.3
European market leader for
wind screen bonding
systems, ski based and
optically pure
thermoplastic sheeting for
the auto industry. (cost
$872,456)
6,000 SIKA FINANZ AG
BEARER SHARES 1,955,737 0.4
Leading producer of
construction chemicals.
(cost $1,566,863)
----------- -----
8,000,090 1.9
ELECTRICAL ENGINEERING & ELECTRONICS - 13.1%
187,000 ABB LTD.(1)
The holding company for ABB 21,480,034 5.1
Asea Brown Boveri Ltd. (ABB
Group) which is one of the
largest electrical
engineering firms in the
world. (cost $14,539,020)
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
ELECTRICAL ENGINEERING & ELECTRONICS - (CONTINUED)
3,000 BELIMO AUTOMATION AG
REGISTERED SHARES $ 1,279,168 0.3%
World market leader in
damper and volume control
actuators for ventilation
and air conditioning
equipment. (cost $746,174)
12,000 GRETAG-IMAGING HOLDING AG
REGISTERED SHARES 2,403,175 0.6
Manufactures image
processing equipment and
systems. (cost $1,100,502)
370 KUDELSKI SA
BEARER SHARES(2) 4,617,212 1.1
Designs, produces and
distributes equipment under
the "Nagra" brand name for
professional data display
in audio and video
applications. (cost
$4,154,003)
12,500 LOGITECH INTERNATIONAL SA
REGISTERED SHARES(2) 7,900,830 1.9
Manufactures personal
computer input devices as
well as producing
trackballs, desktop
publishing programs, and
related software. (cost
$1,947,513)
5,000 SAIA-BURGESS ELECTRONICS HOLDING AG
REGISTERED SHARES 2,140,967 0.5
Develops and produces
switches, motors, and
programmable control
devices. Products are
mainly used in the
automobile, heating & air
conditioning and
telecommunications
industries. (cost
$1,298,119)
7
<PAGE>
THE SWISS HELVETIA FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets (continued) March 31, 2000
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS - (CONTINUED)
ELECTRICAL ENGINEERING & ELECTRONICS - (CONTINUED)
15,160 SWISSLOG HOLDING, INC.
REGISTERED SHARES $ 7,275,487 1.7%
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 $3,207,688)
4,300 TECAN AG
REGISTERED SHARES 3,020,447 0.7
Manufactures and
distributes components and
complete solutions for the
automation of laboratory
processes. (cost
$2,092,640)
4,500 THE SWATCH GROUP OF SWITZERLAND
BEARER SHARES 5,247,474 1.2
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
$2,680,890)
----------- -----
55,364,794 13.1
FOOD & LUXURY GOODS - 10.3%
60 LINDT & SPRUNGLI AG
REGISTERED SHARES 1,533,558 0.4
Major manufacturer of
premium Swiss chocolates.
(cost $1,196,399)
23,400 NESTLE AG(1)
REGISTERED SHARES 41,936,493 9.9
Largest food and beverage
processing company in the
world. (cost $14,102,656)
----------- -----
43,470,051 10.3
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
INSURANCE - 8.6%
3,000 BALOISE HOLDING
REGISTERED SHARES $ 2,587,202 0.6%
Medium-sized insurer active
in all sectors of
insurance. (cost $169,640)
6,000 GENERALI (SWITZERLAND) HOLDING
REGISTERED SHARES 1,825,836 0.4
An insurance, financial and
real estate services
company. (cost $2,243,128)
10,000 SCHWEIZERISCHE RUCKVERSICHERUNGS-
GESELLSCHAFT (SWISS REINSURANCE COMPANY)(1)
REGISTERED SHARES 17,326,197 4.1
Second largest reinsurance
company in the world. (cost
$5,838,682)
28,900 ZURICH ALLIED LTD.(1)
REGISTERED SHARES 14,564,710 3.5
A large worldwide insurance
operator. (cost $4,691,524)
----------- -----
36,303,945 8.6
LIFE SCIENCES - 15.2%
47,100 NOVARTIS LTD.(1)
REGISTERED SHARES 64,412,677 15.2
Life science group created
by the consolidation of
Sandoz and Ciba-Geigy.
Manufacturers 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
$24,690,092)
----------- -----
64,412,677 15.2
8
<PAGE>
THE SWISS HELVETIA FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets (continued) March 31, 2000
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS - (CONTINUED)
MACHINERY - 3.8%
5,000 FEINTOOL INTERNATIONAL HOLDING
REGISTERED SHARES $ 2,104,883 0.5%
Supplier of integrated
systems for fine-blanking
and forming technologies.
(cost $1,059,528)
7,000 GEORG FISCHER AG
REGISTERED SHARES 2,168,030 0.5
A mechanical engineering
group that is a market
leader in vehicle
engineering and pipeline
systems. (cost $2,262,232)
1,200 HPI HOLDING SA
BEARER SHARES(2) 1,356,748 0.3
An investment company,
primarily holding an
interest in Hermes Precisa,
an Australian electronic
document processing
service. (cost $1,627,689)
6,000 MIKRON HOLDING AG
REGISTERED SHARES 4,817,176 1.2
Machine tools and milling
machine producer. (cost
$773,404)
1,700 RIETER HOLDING AG
REGISTERED SHARES 950,806 0.2
Leading supplier of
spinning machinery for the
textile industry. (cost
$569,618)
2,000 SCHINDLER HOLDING AG
REGISTERED SHARES 2,922,781 0.7
One of the world's largest
elevator companies and a
leading Swiss machinery
enterprise. (cost
$2,569,092)
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
MACHINERY - (CONTINUED)
2,500 SULZER AG
REGISTERED SHARES(2) $ 1,683,907 0.4%
Manufactures and sells
industrial equipment,
machinery, and medical
devices. (cost $1,644,520)
----------- -----
16,004,331 3.8
MISCELLANEOUS INDUSTRIES - 1.9%
5,000 HUBER & SUHNER AG
REGISTERED SHARES 2,700,265 0.7
Manufactures a wide range
of products, extending from
cables for energy and
electrical transmission to
special products such as
rubber. (cost $1,381,216)
3,000 KOMAX HOLDING LTD.
REGISTERED SHARES 2,264,253 0.5
World's leading
manufacturer of wire
processing machines. (cost
$1,332,269)
2,500 PHOENIX MECANO AG
BEARER SHARES 1,220,832 0.3
Leading Swiss packaging
manufacturer for the
mechanical engineering and
electronics industry. (cost
$1,179,117)
8,000 SIA ABRASIVES HOLDING AG
REGISTERED SHARES(2) 1,154,679 0.3
Develops, manufactures and
markets surface treatment,
upgrade and polishing
systems for various
materials. (cost
$1,202,584)
9
<PAGE>
THE SWISS HELVETIA FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets (continued) March 31, 2000
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS - (CONTINUED)
MISCELLANEOUS INDUSTRIES - (CONTINUED)
500 XSTRATA AG
REGISTERED SHARES(2) $ 509,382 0.1%
Investment company with
principal interest in
energy and raw materials in
locations around the world.
(cost $528,199)
----------- -----
7,849,411 1.9
MISCELLANEOUS SERVICES - 6.5%
15,000 ADECCO SA(1)
BEARER SHARES 10,374,068 2.5
Leading personnel and
temporary employment
company. (cost $5,142,887)
3,500 COMPAGNIE FINANCIERE RICHEMONT AG
BEARER SHARES 8,893,132 2.1
Investment company with
principal interests in
luxury goods and tobacco.
(cost $3,155,503)
150 KUONI TRAVEL HOLDING LTD.
REGISTERED SHARES 694,611 0.2
Leader in the Swiss travel
and tourism sector with
subsidiaries in the United
Kingdom, Germany, France
and Austria. (cost
$245,145)
5,200 MIRACLE HOLDING AG
REGISTERED SHARES(2) 2,189,079 0.5
Produces computer software.
(cost $2,640,625)
4,800 PUBLIGROUPE LTD.
PARTICIPATION CERTIFICATES 5,288,429 1.2
Largest Swiss advertising
intermediary. (cost
$1,414,729)
----------- -----
27,439,319 6.5
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
PHARMACEUTICALS - 16.6%
2,400 ARES SERONO SA(1)
BEARER SHARES $ 9,035,362 2.1%
Develops and markets
pharmaceutical and
diagnostic products, and is
the worldwide market leader
in pharmaceutical products
for the treatment of
infertility. (cost
$2,779,562)
5,650 ROCHE HOLDINGS LTD.(1)
DIVIDEND RIGHTS CERTIFICATES 61,365,769 14.5
Worldwide pharmaceutical
company. (cost $15,895,280)
----------- -----
70,401,131 16.6
RETAILERS - 2.1%
2,500 BON APPETIT HOLDING AG
REGISTERED SHARES 2,103,380 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 of1,641,8090.4
clothing items for men,
women and children.
Operates approximately 385
retail stores in
Switzerland, Germany,
Austria, and the Benelux
region. (cost $1,462,733)
1,500 JELMOLI HOLDING LTD.
BEARER SHARES 2,164,121 0.5
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
<PAGE>
THE SWISS HELVETIA FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets (concluded) March 31, 2000
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS - (CONTINUED)
RETAILERS - (CONTINUED)
10,000 VALORA HOLDING AG
REGISTERED SHARES $ 2,946,837 0.7%
Operates restaurants, food
vending machines and
specialty retail stores.
(cost $2,333,483)
----------- -----
8,856,147 2.1
TELECOMMUNICATIONS - 1.4%
15,000 SWISSCOM AG
REGISTERED SHARES 5,755,352 1.4
Operates public
telecommunication networks
and offers network
application services. (cost
$5,049,193)
----------- -----
5,755,352 1.4
TRANSPORT - 0.3%
8,000 SAIRGROUP HOLDING LTD.
REGISTERED SHARES $ 1,503,488 0.3%
Switzerland's largest
airline company. (cost
$1,654,158)
----------- -----
1,503,488 0.3
791,790 TOTAL COMMON STOCKS AND WARRANTS
(Cost $184,685,559) 419,436,270 99.2%
OTHER ASSETS IN EXCESS OF
LIABILITIES 3,334,467 0.8
------------ -----
NET ASSETS APPLICABLE TO 24,397,637
SHARES OF COMMON STOCK
OUTSTANDING $422,770,737 100.0%
============ =====
NET ASSET VALUE PER SHARE
($422,770,737 / 24,397,637) $17.33
======
- --------------------------------------------------------------------------------
(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. On December 7, 1999 the Fund announced that its Board of
Directors had increased this authorization by an additional 1,000,000 shares.
The Board ofDirectors and Management expect to make these purchases from time
to time during 2000. 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 20 percent.
-------------------------
Notice is hereby given in accordance with section 23(c) of The Investment
Company Act of 1940 that the Fund may, from time to time, purchase shares of
its common stock in the open market in addition to the above program.
12
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<PAGE>
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<PAGE>
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A SWISS
INVESTMENTS
FUND
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
