THE SWISS HELVETIA FUND, INC.
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Directors and Officers
Samuel B. Witt III, Esq. Eric R. Gabus
CHAIRMAN (NON-EXECUTIVE) DIRECTOR EMERITUS
Jean-Marc Boillat Baron Hottinger
DIRECTOR DIRECTOR EMERITUS
Paul R. Brenner, Esq./1/ Rodolphe E. Hottinger
DIRECTOR PRESIDENT CHIEF EXECUTIVE OFFICER
Alexandre de Takacsy Rudolf Millisits
DIRECTOR SENIOR VICE PRESIDENT CHIEF FINANCIAL OFFICER
Claude Frey Philippe R. Comby, CFA, FRM
DIRECTOR VICE PRESIDENT
R. Clark Hooper/2/ Edward J. Veilleux
DIRECTOR VICE PRESIDENT SECRETARY
Paul Hottinguer Glen Fougere
DIRECTOR ASSISTANT SECRETARY
Michael Kraynak, Jr./2/ Peter R. Guarino, Esq.
DIRECTOR CHIEF COMPLIANCE OFFICER
Didier Pineau-Valencienne/2,3/
DIRECTOR
Stephen K. West, Esq./2/
DIRECTOR / /
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/1/AUDIT COMMITTEE CHAIRMAN /3/GOVERNANCE/NOMINATING COMMITTEE CHAIRMAN
/2/AUDIT COMMITTEE MEMBER
INVESTMENT ADVISOR
Hottinger Capital Corp.
1270 Avenue of the Americas, Suite 400
New York, New York 10020
(212) 332-7930
ADMINISTRATOR
Citi Fund Services, LLC
CUSTODIAN
Citibank, N.A.
TRANSFER AGENT
American Stock Transfer & Trust Company
59 Maiden Lane
Plaza Level
New York, NY 10038
LEGAL COUNSEL
Stroock & Stroock & Lavan LLP
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
The Investment Advisor
The Swiss Helvetia Fund, Inc. (the "Fund") is managed by Hottinger Capital
Corp., which belongs to 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 the Bahamas, Basel, Geneva, London, Lugano,
Luxembourg, New York, Sion, Toronto, Vienna and Zurich.
EXECUTIVE OFFICES
The Swiss Helvetia Fund, Inc.
1270 Avenue of the Americas, Suite 400
New York, New York 10020
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
email: swz@swz.com
WEBSITE ADDRESS
www.swz.com
The Fund
The Fund 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 also may acquire and hold
equity and equity-linked securities of non-Swiss companies in limited instances.
The Fund is listed on the New York Stock Exchange under the symbol "SWZ".
Net Asset Value is calculated daily by 6:15 P.M. (Eastern Time). The most
recent calculation is available by calling 1-888-SWISS-00 or by accessing our
Website. Net Asset Value is also published weekly in BARRON'S, the Monday
edition of THE WALL STREET JOURNAL and the Sunday Edition of THE NEW YORK TIMES.
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THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders
GLOBAL MARKETS REVIEW
The turmoil in the credit markets, sparked by the decline in U.S. housing
prices, reached a crisis level at the beginning of the year. Banks continued to
hoard cash to meet contingent liabilities, almost completely shutting down
refinancing possibilities. The acceleration in the widening of corporate
spreads and a massive increase in the cost of insuring the debt of financial
intermediaries were the consequences of difficulties in the interbank market.
Despite continuous vigorous action by the U.S. Federal Reserve Board (the
"FRB") and other central banking institutions, counterparty risk increased and
market participants became very cautious in dealing with each other, leading to
the demise of Bear Stearns. The bailout of this firm, engineered by the FRB,
marked the low point for the market during the quarter. The quasi-certainty of
having a lender of last resort not only for depository institutions but also
for investment banks was a huge relief for the market and sparked a big rally.
A potential recession itself was not the main factor behind the steep
decline in the global equity markets. Investors usually anticipate changes in
economic outlook and apply a discount to market consensus earnings estimates
thereby pushing down prices before an actual recession occurs. In addition when
recessions take place, monetary and fiscal policies become very expansive and
provide support for equity prices. It was the paralysis in the securitized debt
market that slowed down the flow of capital in the economic systems of the
developed countries and scared off equity holders.
The situation has since improved, as banks were able to shore up their
capital bases with large rights offerings and private financing deals with
sovereign funds. Financial institutions also were able to unload some impaired
assets from their balance sheets, selling them to private equity companies or
hedge funds.
SWISS MARKET REVIEW
UBS and Credit Suisse have been in the news frequently since last October
when their first write-downs were announced. Since that time, their stock
prices have exhibited tremendous volatility. UBS' share price declined 55% into
mid-March, but recovered by almost the same percentage towards the end of the
month. Credit Suisse's share price followed a similar course, being down 30%,
then up 30% during that period. This volatility reflects investors concerns
about balance sheet quality and solvency compounded by mark-to-market
accounting. When equity value is that questionable, investors do not wait until
companies rebuild their book value with accumulated earnings. Only capital
increases can provide the necessary relief. Credit Suisse was not forced to
raise capital, but UBS was, as it was affected to a greater extent by market
volatility. Its management tried to plug the gaps in its business model by
emphasizing the development of the fixed income activity of the investment bank
under a "one bank"
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Letter to Stockholders (continued)
concept. Unfortunately, UBS tried to gain some time by building aggressively
through massive risk-taking, effectively transforming part of its business into
a hedge fund. The bank leveraged a perceived risk-free carry trade in the super
senior tranches of the collateralized debt obligation sector. UBS relied too
much on the opinions of external rating agencies and, ignoring the negative
impact of market liquidity risk on valuation, concentrated on the credit risk
of its securitized debt investments. Mark-to-market accounting then created a
big drop in its capital base. The carrying value of its mortgage-linked
securities investments had to reflect the massive correction in their market
prices.
The measures announced by UBS to rebuild its capital, including the 15
billion Swiss franc rights offering and the payment of a stock dividend should
reduce the risk premium on balance sheet uncertainties. Investors will now
dedicate more time scrutinizing UBS' earnings power and assessing the impact of
management failures on the private banking franchise and the bank's capacity to
attract net new money. However the debate will continue about the soundness of
having the wealth management and the investment banking businesses under the
same roof. Due to the investment bank's lack of visibility and its easy access
to capital due to the other operations of UBS, the market valuation of the
group may very well continue to reflect a conglomerate discount.
Despite being very volatile, the remainder of the financial sector did
fairly well. The shares of insurance companies, asset managers and regional
banks finished the quarter mostly flat.
Industrial companies suffered from a more negative expectation for the
global economy, despite having good order backlog. Their shares had, at some
point in the quarter, a correction of more than 20% but, as with the other
sectors, they came back by about the same percentage, leaving them still in
negative territory.
SWISS ECONOMIC NOTES
Driven by strong domestic demand, the growth in the Swiss gross domestic
product ("GDP") reached a healthy 3.1% in 2007. Given the uncertainties in the
financial markets and moderation of global activity, Swiss economic growth is
expected to decelerate in 2008, with the Swiss National Bank ("SNB")
forecasting GDP growth between 1.5% to 2%. Exports to the rest of Europe and
the United States began a decline towards the end of 2007. Interestingly,
trading with Asia has so far more than compensated for that fall. The
utilization of technical capacity in the manufacturing sector remains at a high
level of 88% (above the long-term average of 84%). However, the Swiss
Purchasing Manager Index (PMI), a forward looking indicator, dropped from 60.8
at the end of December 2007 to 55.3 at the end of March 2008 and the order
backlog went from a level of 63.3 to 53.3 during the same period.
The Swiss unemployment rate remained at a low level in March. The seasonally
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THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders (continued)
adjusted rate was 2.5%, compared to 2.6% in December 2007.
The Consumer Price Index ("CPI") increased from 2% in December to 2.6% in
March, with both oil and goods contributing to the increase. The core CPI
(without food and energy) increased from 0.9% to 1.4% over the same period. The
high level of capacity utilization has allowed companies to pass higher input
costs on to customers, triggering a rise of SNB inflation forecasts for this
year from 1.7% to 2%. For 2009, the SNB expects rates to stabilize.
During its last meeting the SNB, like the European Central Bank (the
"ECB"), left its monetary policy unchanged. The target range for the
three-month Swiss franc LIBOR stayed at 2.25%-3.25%. The SNB has communicated
its intention to hold the rate in the middle of the target range for the time
being since, on one hand inflation is on the rise but, on the other hand,
economic activity is expected to be more subdued. For the SNB and the ECB, the
primary mandate is to fight inflation. Economic conditions are taken into
account but only through their impact on prices.
Overall, monetary conditions were tighter during the quarter under review
than they were in December. Even though the 10-year Confederation bond finished
lower than in December (2.91% vs. 3.00%), yields on the corporate sector, for
both low grade and prime borrowers, have risen sharply due to higher risk
premiums. Mortgage rates during the first part of the year continued to rise
slightly.
Monetary authorities continue to be active in providing liquidity to the
market to alleviate tensions on the international money markets. The SNB with
the Bank of Canada, the Bank of England, the ECB and the FRB again in January
conducted U.S. dollar repurchase transactions up to $4 billion. The SNB and the
FRB also concluded two swap agreements in December and January.
On the currency front, for the first time in history, the Swiss franc
reached parity against the U.S. dollar and finished the quarter at 0.99. The
U.S. dollar fell by 12.6% against the Swiss franc during the quarter, mostly as
a result of a narrowing interest rate differential and a reduction in
expectations for U.S. economic growth. The Swiss franc also rose against the
euro by about 5% indicating, that in periods of turmoil, the Swiss franc
retains its status as a safe haven currency. The outlook for the Swiss franc
depends on the situation in the capital markets but it should remain favorable
against the euro. In the short term, the U.S. dollar may be helped by a lower
trade deficit. Economic stress is already having an impact on some member
states of the European Union, as the financing of their deficits (accelerated
by the housing crisis and economic slowdown), has become more expensive
compared, for example, to their German peer. This could create problems for the
"one-size fits all" monetary policy of the ECB.
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THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders (continued)
The Swiss current account surplus amounted to 15 billion Swiss francs at
the end of the last quarter of 2007. Compared to the same period in 2006, it
was reduced by lower income from investments abroad, but benefited from higher
surplus from trade in goods and services.
CORPORATE NEWS
On January 22, 2008, Roche and Ventana signed a definitive merger agreement
after Roche upped its bid price by 18% from its original offer in June 2007.
The final price came to $3.4 billion. Ventana is a leader in the fast-growing
histopathology (tissue-based diagnostic) segment. This merger should allow
Roche to broaden its diagnostic offerings and complement its world leadership
in both in-vitro diagnostic systems and oncology therapies.
UBS held an extraordinary meeting on February 27, 2008 during which
shareholders approved the Board of Directors' proposal to create conditional
share capital for the issuance of mandatory convertible notes with a value of
13 billion Swiss francs to the Government of Singapore Investment Corporation
and an investor from the Middle East. They also approved a proposal to replace
a cash dividend with a stock dividend.
Just after the closing of the first quarter, UBS announced that its
Chairman, Marcel Ospel, would not stand for re-election and that its investment
banking arm had written down an additional $19 billion on its legacy assets.
The total downward portfolio adjustment has reached $35 billion since the start
of the sub-prime crisis in the United States.
UBS also stated its intention to ask shareholders for a 15 billion Swiss
franc capital increase at its ordinary general meeting on April 23/rd/.
On another front, Switzerland's Alps continue to attract foreign investors
and companies. Orascom Hotel & Development, Egypt's biggest traded hotel
company, has announced, after having moved its headquarters to Altdorf,
Switzerland, its intention to list a parent holding company on the Swiss market
in May. The company is involved in a development project in Andermatt, where it
plans to build hotels, apartments and golf courses across a 1.4 million-square
meter site.
FUND PERFORMANCE AND INVESTMENTS REVIEW
The Fund is heavily represented in the healthcare sector, particularly in
the small and mid size bio-pharmaceutical companies as a way to insulate its
assets from the consequences of economic disruptions.
As mentioned in previous reports, this hedge from economic turmoil has not
yet played out to the extent it was expected. Correlation has increased
significantly within this sector and also has been on the rise with the
riskiest assets in the stock market as investors are wary of early stage
companies, especially in the biotech arena.
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THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders (continued)
Financial stocks, in which the Fund has low exposure, have recovered to a
large extent from the drop at the beginning of the year, but small- and mid-cap
health care stocks have lagged as concerns persist that the U.S. Food and Drug
Administration is becoming much more demanding in its procedures for approval,
and is tilting towards being much more cautious within its risk-benefit
framework analysis when assessing a drug candidate.
Large companies, such as Novartis and, particularly, Roche, have seen large
compression in their valuations, not only because of fear of the expiration of
patents, but also because of questions about how the U.S. healthcare system in
particular can continue to bear the very high cost of oncology and, in general,
large molecule drugs. These companies may have an issue with top line growth
but they are trading at very sizable discounts to the market as a whole. In
that context, corporate actions such as acquisitions and cost cutting programs
should provide a catalyst for price appreciation. In the biotech sector,
valuations have collapsed as well and, even though in some cases there has been
delay in product approvals, the correction in prices has gone very far. For
smaller size companies in the sector with good quality pipelines and
experienced management, cash and near cash on their balance sheets account for
30%, 50% and sometimes 80% of their total market value.
The Fund also is heavily represented in the utility sector. In general,
Swiss operators have spare capacity available to harvest peak load prices and
portfolios of mostly clean energy production consisting mainly of hydro and
nuclear power facilities. The sector had the opposite performance from
financials, beginning the year with strength and finishing the quarter flat.
There are still uncertainties about the liberalization of prices in
Switzerland, within the context of European markets, and about the direction to
take with new investments, as environmental policies are under discussion at
the government level. Eventually prices will have to reflect the ever
increasing cost of building new capacity which should benefit the companies
with production greater than their delivery commitments and the ability to sell
it on the spot market.
In the industrial sector, the Fund's investments were mainly in companies
benefiting from energy infrastructure and with exposure to clean energy. The
sector was hit by profit taking and by the market impact of hedge funds having
to deleverage their capital structure as prime brokers started to cut their
credit lines.
The Fund increased its exposure to the real estate/infrastructure sector
but did not increase pure commercial real estate exposure, as Management
continues to weigh the impact of the financial crisis on occupancy rates for
office buildings.
On the private equity side, the Fund has about 1.6% of its assets invested
in limited partnerships (out of a total commitment
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THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders (continued)
equal to 3% of its assets). The exposure is mainly in the buy-out area,
compared to venture capital, where capital raising activity is more robust.
Opportunities for pre-IPO financing and bridge financing are numerous now that
the risk aversion in the public market has made access to the capital market
more difficult. These types of investments have lower than average risk in the
private equity space. Despite having smaller returns in terms of multiple of
initial invested capital, they can provide similar internal rates of return as
the time to exit is shorter.
Price negotiation in the buy-out area is still a lengthy process. Valuation
came down, but not as much as expected because, despite the credit market
turmoil, there is still plenty of money competing for deals either from other
private equity sources or from industrial buyers.
Private equity and public equity is a continuum, and Management is
encouraged by the sizable amount of synergies between the two sectors, be it in
the valuation area, the type of due diligence required for investments or the
access to valuable information on market segments and companies. As its share
of the Fund's assets increases, private equity investments should also
contribute to a reduction in the volatility of the overall portfolio. Public
equity can become relatively more unstable due to the ever increasing activity
of program trading and an increasing prevalence of long-short strategies. These
investment strategies are not only being used by hedge funds, but also by
recently launched mutual funds (such as "130/30 funds") for their capacity to
use the proceeds of their short sales to invest more than 100% of their assets
in long strategies
The current structure of the Fund's portfolio is defensive with small
hedging positions, slightly above average cash and low exposure to high beta
stocks in the consumer cyclical and financial sectors. By the middle of March
the Fund's out-performance of the Swiss Performance Index ("SPI") for the year
combined with its out-performance of the SPI in 2007 (corrected for the
dilution due to the capital increase), made up for the underperformance created
by the impact of the 2007 issuance of new Fund shares at a discount to net
asset value in connection with the Fund's rights offering. With the bailout of
Bear Stearns, hedge funds started to massively cover their short positions in
investment banks and, from its lowest point in March (-20% in Swiss francs),
the SPI rallied by 6% in Swiss francs, and 5.5% in U.S. dollars, as the U.S.
dollar strengthened slightly against the Swiss franc. On the upswing the Fund
lagged the SPI and finished the quarter with the same return as the SPI.
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THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders (continued)
Indices Performance Comparison
---------------------------------------------------------
YEAR TO DATE
DECEMBER 31, 2007
THROUGH
MARCH 31, 2008
--------------------------------------- -----------------
PERFORMANCE IN SWISS FRANCS
Swiss Performance Index (SPI) -13.92%
Swiss Helvetia Fund
Based on Net Asset Value -14.18%
CHANGE IN U. S. DOLLAR VS. SWISS FRANC -12.64%
PERFORMANCE IN U.S. DOLLARS SWISS HELVETIA FUND
PERFORMANCE
Based on Net Asset Value -1.76%
Based on Market Price -1.64%
S & P 500 Index -9.44%
MSCI EAFE Index -8.91%
Lipper European Fund Index (10 Largest) -9.48%
Lipper European Fund Universe Average -9.36%
SOURCES: CITIGROUP FUND SERVICES, LLC AND BLOOMBERG
OUTLOOK
While the credit markets are still struggling and corporate defaults will
continue to increase in the U.S. and elsewhere, the equity markets have priced
in a large part of recent events. Since 2000, the price earnings ratios of the
stock markets in the developed countries has undergone a massive compression,
despite relatively strong earnings growth since 2003.
On the positive side the liquidity available to hedge funds, private equity
funds and sovereign funds should find its way into distressed debt and equity
issuances of the financial sector.
Real interest rates in the United States are negative, which should push
some of the large cash positions in money market funds into equities. In Europe
where the real interests rates are close to zero, we could experience the same
phenomenon.
The negative side is that global inflation, fed by commodities and labor
cost increases, will slow down growth and put corporate margins under pressure.
In summary, the positives and the negatives should balance out and the overall
market, instead of experiencing a meltdown followed by a massive rally, may go
through a trading range for a while. Volatility has come down already,
reflecting the sentiment that the clean-up phase of the credit crunch and the
drastic reduction of leverage may be finished.
Economic growth in Europe and Asia is expected to slow down. Europe could
suffer from lower activity in the construction industry and lower export volume
to the United States and Asia. However a strong need for better and new
infrastructure and the necessity to make emerging economies more efficient as
labor costs increase will continue to drive demand for industrial products.
In this context, Management will continue to concentrate on companies with
under-recognized growth potential and sustainable competitive advantages,
allowing them to raise prices in order to cope with cost inflation. In
addition, there will be opportunities in the lagging healthcare sector, such as
medical technology or drug manufacturing,
8
THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders (continued)
as valuations are attractive and investors are under-exposed.
STOCK REPURCHASE PROGRAM
Pursuant to authorization by the Board, the Fund began open market
purchases of its common stock on the New York Stock Exchange ("NYSE") in 1999
and has continued purchases in each subsequent year. The principal purpose of
the stock repurchase program 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. The Board has authorized the Fund to repurchase
up to 500,000 shares during 2008. During the period ended March 31, 2008, the
Fund repurchased and retired 43,500 shares at an average price of $16.33 per
share (including brokerage commissions) and a weighted average discount of
12.31%. These repurchases, which had a total cost of $710,161, resulted in an
increase of $99,179 to the Fund's net asset value. This gain is the result of
the difference between the Fund's net asset value and the activity price of the
buyback.
Sincerely,
LOGO
Rodolphe E. Hottinger
PRESIDENT AND CHIEF EXECUTIVE OFFICER
LOGO
Rudolf Millisits
SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
March 31, 2008
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THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders (concluded)
-------------------------------------------------------------------------------------------------------------------------------
PEER GROUP/INDICES PERFORMANCE COMPARISON IN SWISS FRANCS/1/
-------------------------------------------------------------------------------------------------------------------------------
TOTAL
RETURN
YTD AS TOTAL RETURN AS OF YEAR ENDED DECEMBER 31 CUMULATIVE
OF ---------------------------------------------------------------------- PERFORMANCE
3/31/08 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 12/31/97-3/31/08
------------------------------- ------- ------ ------ ------ ----- ------ ------- ------- ------ ------ ------ ----------------
SWISS HELVETIA FUND -14.18% -2.67% 20.56% 33.20% 7.75% 22.54% -20.40% -22.91% 14.06% 14.70% 15.57% 64.32%*
Swiss Performance Index (SPI) -13.92% -0.05% 20.67% 35.61% 6.89% 22.06% -25.95% -22.03% 11.91% 11.69% 15.36% 52.92%
Swiss Market Index (SMI) -14.85% -3.43% 15.85% 33.21% 3.74% 18.51% -27.84% -21.11% 7.47% 5.71% 14.28% 15.31%
iShares Switzlerland/2/ -14.32% -0.97% 20.02% 32.45% 6.34% 19.14% -26.23% -23.12% 7.75% 12.22% 11.74% 30.95%
CS EF Swiss Blue Chips/3,7/ -14.64% -1.66% 18.78% 32.27% 2.75% 18.13% -28.75% -22.12% 10.97% 7.57% 14.21% 21.10%
UBS (CH) Equity Fund/4,7/ -13.53% -2.55% 18.98% 33.50% 5.00% 18.14% -26.02% -22.04% 7.42% 6.43% 12.75% 23.44%
Pictet (CH)-Swiss Equities/5,7/ -15.30% 1.94% 19.37% 37.06% 7.05% 20.10% -27.93% -22.35% 7.34% 9.38% 11.05% 32.52%
Saraswiss (Bank Sarasin)/6,7/ -14.83% -2.86% 18.69% 33.05% 2.93% 19.64% -28.51% -24.45% 9.72% 7.10% 14.41% 16.83%
SOURCES : BLOOMBERG, MANAGEMENT COMPANIES' WEBSITES AND CITIGROUP FUND SERVICES.
/1/ PERFORMANCE OF FUNDS IS BASED ON CHANGES IN EACH FUND'S NAV OVER A
SPECIFIED PERIOD. IN EACH CASE TOTAL RETURN IS CALCULATED ASSUMING REINVESTMENT
OF ALL DISTRIBUTIONS. FUNDS LISTED, OTHER THAN ISHARES MSCI SWITZERLAND, ARE
NOT REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION. PERFORMANCE AND
DESCRIPTIVE INFORMATION ABOUT THE FUNDS ARE DERIVED FROM THEIR PUBLISHED
INVESTOR REPORTS AND WEBSITES, WHICH ARE SUBJECT TO CHANGE.
/2/ SHARES OF ISHARES MSCI SWITZERLAND ARE TRADED ON THE NEW YORK STOCK
EXCHANGE AND SEEKS TO PROVIDE INVESTMENT RESULTS THAT CORRESPOND TO THE
PERFORMANCE OF THE SWISS MARKET, AS MEASURED BY THE MSCI SWITZERLAND INDEX.
THESE STOCKS REPRESENT SWITZERLAND'S LARGEST AND MOST ESTABLISHED PUBLIC
COMPANIES, ACCOUNTING FOR APPROXIMATELY 85% OF THE MARKET CAPITALIZATION OF ALL
SWITZERLAND'S PUBLICLY TRADED STOCKS. PERFORMANCE OF SHARES OF ISHARES MSCI
SWITZERLAND IS CALCULATED BASED UPON THE CLOSING PRICES OF THE PERIOD INDICATED
USING THE SWISS FRANC/U.S. DOLLAR EXCHANGE RATE AS OF NOON EACH SUCH DATE, AS
REPORTED BY BLOOMBERG. SUCH EXCHANGE RATES WERE AS FOLLOWS: 12/31/97 = 1.46,
12/31/98 = 1.38, 12/31/99 = 1.60, 12/31/00 = 1.61, 12/31/01 = 1.67, 12/31/02 =
1.39, 12/31/03 = 1.24, 12/31/04 = 1.14, 12/31/05 = 1.32, 12/31/06 = 1.22,
12/31/07 = 1.13, 3/31/08 = 0.99
/3/ THIS FUND GIVES INVESTORS ACCESS TO THE SWISS EQUITY MARKET. IT HAS A
BROADLY-DIVERSIFIED PORTFOLIO GEARED TO THE LONG-TERM VALUE GROWTH, WITH A
PREFERENCE TO LARGE CAP STOCKS. STOCK SELECTION IS BASED ON CRITERIA SUCH AS
COMPANY VALUATION, BUSINESS CLIMATE, MARKET POSITIONING AND MANAGEMENT QUALITY.
/4/ THIS FUND INVESTS PRIMARILY IN MAJOR SWISS COMPANIES. QUALITY CRITERIA USED
FOR DETERMINING RELATIVE WEIGHTINGS OF COMPANIES INCLUDE: STRATEGIC
ORIENTATION, STRENGTH OF MARKET POSITION, QUALITY OF MANAGEMENT, SOUNDNESS OF
EARNINGS, GROWTH POTENTIAL AND POTENTIAL FOR IMPROVING SHAREHOLDER VALUE.
THE INVESTMENT OBJECTIVE SEEKS TO PROVIDE RESULTS THAT ARE ALIGNED WITH THE SPI
PERFORMANCE.
/5/ THIS FUND INVESTS IN SHARES OF COMPANIES LISTED IN SWITZERLAND AND INCLUDED
IN THE SPI, MAINLY IN BLUE CHIP STOCKS.
/6/ THIS FUND INVESTS IN SHARES OF SWISS COMPANIES. IT WEIGHTS INDIVIDUAL
SECTORS RELATIVE TO THE SPI ON THE BASIS OF THEIR EXPECTED RELATIVE PERFORMANCE.
IT FOCUSES ON LIQUID BLUE-CHIP STOCKS.
/7/ THESE FUNDS ARE NOT AVAILABLE FOR U.S. RESIDENTS OR CITIZENS.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
* NOT INCLUDING THE RIGHTS OFFERING DILUTION, THE NAV PERFORMANCE OF 2007 WAS
4.00% RESULTING IN A CUMULATIVE PERFORMANCE OF 75.58% AS OF 3/31/08 IN SWISS
FRANC TERMS.
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THE SWISS HELVETIA FUND, INC.
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Schedule of Investments (Unaudited) March 31, 2008
Percent
No. of of Net
Shares Security Fair Value Assets
----------------------------------------------------------------
COMMON STOCKS -- 79.36%
BANKS -- 5.51%
430 BANK SARASIN & CIE AG
REGISTERED SHARES $ 1,878,166 0.30%
Offers private banking, asset
management, investment
advisory, and institutional banking
services.
(Cost $1,611,112)
302,500 CREDIT SUISSE GROUP
REGISTERED SHARES 15,460,669 2.44%
A global diversified financial
service company with significant
activity in private banking,
investment banking, asset
management and insurance
service.
(Cost $8,810,069)
601,000 UBS AG/2/
REGISTERED SHARES 17,536,889 2.77%
A global diversified financial
service company with significant
activity in private banking,
investment banking, and asset
management.
(Cost $4,123,210)
------------ ----
34,875,724 5.51%
BASIC RESOURCES -- 2.38%
117,236 PRECIOUS WOODS HOLDING AG/1/
REGISTERED SHARES 13,501,017 2.13%
Through subsidiaries, manages
tropical forests using ecologically
sustainable forest management
methods. Harvests tropical trees
and processes them into lumber.
(Cost $10,847,127)
Percent
No. of of Net
Shares Security Fair Value Assets
-------------------------------------------------------------------
BASIC RESOURCES -- (CONTINUED)
75,000 UMS SCHWEIZERISCHE
METALLWERKE HOLDING AG/1/
BEARER SHARES $ 1,592,437 0.25%
Produces profiles and large
dimension rods for electrical
engineering, mechanical
engineering, and construction
companies, lead-free brass wire for
batteries, billets, and small diameter
wire and rods for the consumer
goods and electronics industries.
(Cost $1,655,849)
------------ ----
15,093,454 2.38%
BIOTECHNOLOGY -- 9.72%
570,655 ACTELION LTD./1,2/
REGISTERED SHARES 31,243,080 4.94%
Biotechnology company that
develops and markets synthetic
small-molecule drugs against
diseases related to the
endothelium.
(Cost $14,690,032)
288,360 ADDEX PHARMACEUTICALS, LTD./1/
REGISTERED SHARES 9,621,233 1.52%
Bio-pharmaceutical company that
discovers, develops, and markets
therapeutic compounds for the
treatment of addiction and other
neuropsychiatric conditions.
(Cost $15,078,778)
10,000 BACHEM HOLDING AG
REGISTERED SHARES 939,791 0.15%
Manufactures ingredients for
pharmaceuticals, generic drugs,
and research supplies.
(Cost $833,329)
11
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--------------------------------------------------------------------------------
Schedule of Investments (Unaudited) March 31, 2008
(continued)
Percent
No. of of Net
Shares Security Fair Value Assets
----------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
BIOTECHNOLOGY -- (CONTINUED)
72,250 BASILEA PHARMACEUTICA/1/
REGISTERED SHARES $ 10,592,235 1.67%
Conducts research into the
development of drugs for the
treatment of infectious diseases
and dermatological problems.
(Cost $8,806,795)
10,000 SANTHERA PHARMACEUTICAL
HOLDING AG/1/
REGISTERED SHARES 757,798 0.12%
Drug discovery and development
company.
(Cost $948,284)
91,903 SPEEDEL HOLDING AG/1/
REGISTERED SHARES 8,362,843 1.32%
Researches and develops
therapies for cardiovascular and
metabolic diseases.
(Cost $12,460,344)
------------ ----
61,516,980 9.72%
CHEMICALS -- 6.90%
148,331 SYNGENTA AG/2/
REGISTERED SHARES 43,642,203 6.90%
Produces herbicides, insecticides
and fungicides, and seeds for field
crops, vegetables, and flowers.
(Cost $19,808,425)
------------ ----
43,642,203 6.90%
Percent
No. of of Net
Shares Security Fair Value Assets
-------------------------------------------------------------
CONSTRUCTION & MATERIALS -- 0.73%
1,141 BELIMO HOLDING AG
REGISTERED SHARES $ 1,245,923 0.20%
World market leader in damper
and volume control actuators for
ventilation and air-conditioning
equipment.
(Cost $222,726)
1,720 SIKA AG
BEARER SHARES 3,391,133 0.53%
Leading producer of construction
chemicals.
(Cost $356,809)
------------ -----
4,637,056 0.73%
FOOD & BEVERAGES -- 14.88%
2,690 BARRY CALLEBAUT AG/1/
REGISTERED SHARES 2,339,012 0.37%
Manufactures cocoa, chocolate,
and confectionary products.
(Cost $1,374,087)
290 LINDT & SPRUNGLI AG
REGISTERED SHARES 10,316,617 1.63%
Major manufacturer of premium
Swiss chocolates.
(Cost $1,141,585)
162,500 NESTLE SA/2/
REGISTERED SHARES 81,533,416 12.88%
Largest food and beverage
processing company in the world.
(Cost $9,260,282)
------------ -----
94,189,045 14.88%
12
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--------------------------------------------------------------------------------
Schedule of Investments (Unaudited) March 31, 2008
(continued)
Percent
No. of of Net
Shares Security Fair Value Assets
----------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
INDUSTRIAL GOODS & SERVICES -- 3.83%
646,457 ABB LTD./2/
REGISTERED SHARES $ 17,425,351 2.75%
The holding company for ABB
Group which is one of the largest
electrical engineering firms in the
world.
(Cost $9,612,320)
6,440 INFICON HOLDING AG
REGISTERED SHARES 1,028,785 0.16%
Manufactures and markets
vacuum instruments used to
monitor and control production
processes. Manufactures on-site
chemical detection and
monitoring system.
(Cost $581,616)
37,001 KOMAX HOLDING AG
REGISTERED SHARES 5,798,650 0.92%
Manufactures wire processing
machines. Produces machines for
cutting and stripping round and
flat wire, crimping and insertion
machines for processing single
wires and equipment for
processing wire harnesses.
(Cost $5,816,062)
------------ ----
24,252,786 3.83%
PERSONAL & HOUSEHOLD GOODS -- 2.47%
30,700 SCHULTHESS GROUP
REGISTERED SHARES 2,264,360 0.36%
Develops, manufactures and sells
household appliances and heating
equipment.
(Cost $3,031,407)
Percent
No. of of Net
Shares Security Fair Value Assets
--------------------------------------------------------------
PERSONAL & HOUSEHOLD GOODS -- (CONTINUED)
49,816 THE SWATCH GROUP AG
BEARER SHARES $ 13,372,578 2.11%
Manufactures finished watches,
movements and components.
Produces components necessary
to its eighteen watch brand
companies. Also operates retail
boutiques.
(Cost $13,753,331)
------------ -----
15,636,938 2.47%
PHARMACEUTICALS -- 17.21%
781,300 NOVARTIS AG/2/
REGISTERED SHARES 40,208,453 6.35%
One of the leading manufacturers
of branded and generic
pharmaceutical products.
Manufactures nutrition products.
(Cost $8,326,468)
363,600 ROCHE HOLDING AG/2/
NON-VOTING EQUITY SECURITIES 68,709,206 10.86%
Worldwide pharmaceutical
company.
(Cost $6,578,721)
------------ -----
108,917,659 17.21%
REAL ESTATE AND INFRASTRUCTURE -- 0.74%
11,100 FLUGHAFEN ZUERICH AG
REGISTERED SHARES 4,668,723 0.74%
Constructs, leases, and maintains
airport structures and equipment.
(Cost $4,365,202)
------------ -----
4,668,723 0.74%
13
THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited) March 31, 2008
(continued)
Percent
No. of of Net
Shares Security Fair Value Assets
---------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
RETAILERS -- 2.97%
38,550 GALENICA AG
REGISTERED SHARES $ 12,833,110 2.03%
Manufactures and distributes
prescription and over-the-counter
drugs, toiletries and hygiene
products.
(Cost $5,976,544)
2,100 JELMOLI HOLDING AG
BEARER SHARES 5,945,099 0.94%
Owns and operates department
and retail stores and provides
mail-order catalog and real estate
leasing services.
(Cost $3,707,265)
------------ ----
18,778,209 2.97%
TECHNOLOGY -- 3.79%
22,700 OC OERLIKON CORP. AG/1/
REGISTERED SHARES 8,021,485 1.27%
Manufactures coating machinery,
semiconductor assembly
equipment, and satellite
components.
(Cost $6,935,172)
606,200 TEMENOS GROUP AG/1,2/
REGISTERED SHARES 15,935,696 2.52%
Provides integrated software for
the banking sector.
(Cost $13,106,926)
------------ ----
23,957,181 3.79%
Percent
No. of of Net
Shares Security Fair Value Assets
----------------------------------------------------------------
UTILITY SUPPLIERS -- 8.23%
18,762 ATEL HOLDING AG
REGISTERED SHARES $ 11,353,377 1.80%
Generates, transmits and
distributes electricity throughout
Europe.
(Cost $6,674,873)
162,250 BKW FMB ENERGIE AG/2/
REGISTERED SHARES 20,784,667 3.28%
Produces electricity using
nuclear, hydroelectric, solar,
biomass and wind energy.
(Cost $9,697,461)
28,095 CENTRALSCHWEIZERISCHE
KRAFTWERKE AG/2/
REGISTERED SHARES 15,594,919 2.46%
Supplies electric power, operates
and maintains distribution
network facilities, constructs and
installs equipment, and offers
consulting services to its clients.
(Cost $8,416,552)
1,500 ELECTRIZITAETS-GESELLSCHAFT
LAUFENBURG AG
BEARER SHARES 1,968,556 0.31%
Operates nuclear and
hydroelectric generating plants
and sells excess power
throughout Europe.
(Cost $1,970,882)
14
THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited) March 31, 2008
(continued)
Percent
No. of of Net
Shares Security Fair Value Assets
-----------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
UTILITY SUPPLIERS -- (CONTINUED)
5,000 RAETIA ENERGIE AG
PARTICIPATION CERTIFICATE $ 2,396,239 0.38%
Generates and distributes electric
power from its own hydroelectric
stations, as well as from outside
nuclear power suppliers of
electric power.
(Cost $2,035,541)
------------ -----
52,097,758 8.23%
TOTAL COMMON STOCKS
(Cost $222,615,186)* $502,263,716 79.36%
PRIVATE EQUITY INVESTMENTS/3/ -- 0.83%
ARAVIS VENTURE II - LIMITED
PARTNERSHIP (420,000 EURO)/4/ 665,515 0.11%
ZURMONT MADISON PRIVATE EQUITY,
LP (4,541,605 CHF)/4/ 4,591,886 0.72%
------------ -----
TOTAL PRIVATE EQUITY INVESTMENTS
(Cost $4,796,577) 5,257,401 0.83%
CALL WARRANTS -- 0.13%
1,250,000 GALENICA AG, EXPIRES 12/19/08 AT
400.00 CHF 139,022 0.02%
8,300,000 SWISS MARKET INDEX, EXPIRES
06/20/08 AT 7,800.00 CHF 671,351 0.11%
------------ -----
TOTAL CALL WARRANTS
(Cost $2,612,834) 810,373 0.13%
Percent
No. of of Net
Shares Security Fair Value Assets
--------------------------------------------------------------
PUT WARRANTS -- 0.49%
2,110,000 JULIUS BAER HOLDING AG, EXPIRES
06/20/08 AT 78.00 CHF $ 1,728,022 0.27%
3,100,000 KUEHNE & NAGEL INTERNATIONAL
AG, EXPIRES 09/19/08 AT
100.00 CHF 814,923 0.13%
2,350,000 SWISS RE, EXPIRES 06/20/08 AT
72.00 CHF 570,244 0.09%
------------ ------
TOTAL PUT WARRANTS
(Cost $3,412,745) 3,113,189 0.49%
TOTAL INVESTMENTS
(Cost $233,437,342)* $511,444,679 80.81%
OTHER ASSETS LESS OTHER
LIABILITIES, NET 121,486,155 19.19%
------------ ------
NET ASSETS $632,930,834 100.00%
============ ======
--------------------------------------------------------------------------------
/1/NON-INCOME PRODUCING SECURITY.
/2/ONE OF THE TEN LARGEST PORTFOLIO HOLDINGS.
/3/PRIVATE EQUITY INVESTMENTS ARE PRICED AT FAIR VALUE AS DETERMINED BY THE
BOARD'S VALUATION COMMITTEE. AT THE END OF THE PERIOD, THE VALUE OF THESE
SECURITIES AMOUNTED TO $5,257,401 OR 0.83% OF NET ASSETS.
/4/RESTRICTED SECURITY NOT REGISTERED UNDER THE SECURITIES ACT OF 1933 OTHER
THAN RULE 144A SECURITIES. AT THE END OF THE PERIOD, THE VALUE OF THESE
SECURITIES AMOUNTED TO $5,257,401 OR 0.83% OF NET ASSETS.
15
THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited) March 31, 2008
(concluded)
Acquisition Value
Security Acquisition Date Acquisition Cost per unit
-------- ---------------- ---------------- -----------------
Aravis Venture II July 31, 2007 $ 205,328 $1.00
February 21, 2008 399,343 1.00
Zurmont Madison Private Equity, LP August 9, 2007 79,022 1.00
September 13, 2007 778,342 1.00
December 17, 2007 109,210 1.00
February 28, 2008 3,225,332 1.00
*COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL STATEMENT PURPOSES AND NET UNREALIZED APPRECIATION (DEPRECIATION)
CONSISTS OF:
GROSS UNREALIZED APPRECIATION $291,425,560
GROSS UNREALIZED DEPRECIATION (13,418,223)
------------
NET UNREALIZED APPRECIATION $278,007,337
============
IN SEPTEMBER 2006, THE FINANCIAL ACCOUNTING STANDARDS BOARD ISSUED STATEMENT OF
FINANCIAL ACCOUNTING STANDARDS NO. 157, "FAIR VALUE MEASUREMENTS" ("SFAS 157".)
THIS STANDARD ESTABLISHES A SINGLE AUTHORITATIVE DEFINITION OF FAIR VALUE, SETS
OUT A FRAMEWORK FOR MEASURING FAIR VALUE, AND REQUIRES ADDITIONAL DISCLOSURES
ABOUT FAIR VALUE MEASUREMENTS. SFAS 157 APPLIES TO FAIR VALUE MEASUREMENTS
ALREADY REQUIRED OR PERMITTED BY EXISTING STANDARDS. SFAS 157 IS EFFECTIVE FOR
FINANCIAL STATEMENTS ISSUED FOR FISCAL YEARS BEGINNING AFTER NOVEMBER 15, 2007,
AND INTERIM PERIODS WITHIN THOSE FISCAL YEARS. THE CHANGES TO CURRENT GAAP FROM
THE APPLICATION OF THIS STATEMENT RELATE TO THE DEFINITION OF FAIR VALUE, THE
METHODS USED TO MEASURE FAIR VALUE, AND THE EXPANDED DISCLOSURES ABOUT FAIR
VALUE MEASUREMENTS.
ONE KEY COMPONENT OF THE IMPLEMENTATION OF SFAS 157 INCLUDES THE DEVELOPMENT OF
A THREE-TIER FAIR VALUE HIERARCHY. THE BASIS OF THE TIERS IS DEPENDANT UPON THE
VARIOUS "INPUTS" USED TO DETERMINE THE VALUE OF THE FUND'S INVESTMENTS. THESE
INPUTS ARE SUMMARIZED IN THE THREE BROAD LEVELS LISTED BELOW:
LEVEL 1--QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS
LEVEL 2--OTHER SIGNIFICANT INPUTS (INCLUDING QUOTED PRICES OF SIMILAR
SECURITIES, INTEREST RATES, PREPAYMENTS SPEEDS, CREDIT RISK, ETC.)
LEVEL 3--SIGNIFICANT UNOBSERVABLE INPUTS (INCLUDING THE FUND'S OWN ASSUMPTIONS
IN DETERMINING THE FAIR VALUE OF INVESTMENTS)
THE INPUTS OR METHODOLOGY USED FOR VALUING SECURITIES ARE NOT NECESSARILY AN
INDICATION OF THE RISK ASSOCIATED WITH INVESTING IN THOSE SECURITIES.
THE FOLLOWING IS A SUMMARY OF THE INPUTS USED TO VALUE THE FUND'S NET ASSETS AS
OF MARCH 31, 2008:
Investments
Valuation Inputs in Securities
---------------- -------------
LEVEL 1--QUOTED PRICES $506,187,278
LEVEL 2--OTHER SIGNIFICANT OBSERVABLE INPUTS $ 0
LEVEL 3--SIGNIFICANT UNOBSERVABLE INPUTS $ 5,257,401
------------
TOTAL INVESTMENTS $511,444,679
============
THE FOLLOWING IS A RECONCILIATION OF LEVEL 3 ASSETS (AT EITHER THE BEGINNING OR
THE ENDING OF THE PERIOD) FOR WHICH SIGNIFICANT UNOBSERVABLE INPUTS WERE USED
TO DETERMINE FAIR VALUE.
Investments
in Securities
-------------
BALANCE AS OF 12/31/2007 $1,230,949
ACCRUED ACCRETION / (AMORTIZATION) --
CHANGE IN UNREALIZED APPRECIATION / (DEPRECIATION) 401,777
NET PURCHASE / (SALES) 3,624,675
TRANSFERS IN / (OUT) OF LEVEL 3 --
----------
BALANCE AS OF 3/31/2008 $5,257,401
==========
16
THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Dividend Reinvestment Plan (Unaudited)
The Plan
The Fund's Dividend Reinvestment Plan (the "Plan") offers a convenient way for
you to reinvest capital gains distributions and ordinary income dividends,
payable in whole or in part in cash, in additional shares of the Fund.
Some of the Plan features are:
. Once you enroll in the Plan, all of your future distributions and
dividends payable in whole or in part in cash will be automatically
reinvested in Fund shares in accordance with the terms of the Plan.
. You will receive shares valued at the lower of the Fund's net asset value
or the Fund's market price as described below. The entire amount of your
distribution or dividend will be reinvested automatically in additional
Fund shares. For any balance that is insufficient to purchase full shares
of the Fund, your account will be credited with fractional shares.
. Your shares will be held in an account with the Plan agent. You will be
sent regular statements for your records.
. You may terminate participation in the Plan at any time.
The following are answers to frequently asked questions about the Plan.
How do I enroll in the Plan?
If you are holding certificates for your shares, contact American Stock
Transfer & Trust Company (AST) at the address shown below. If your shares are
held in a brokerage account, contact your broker. Not all brokerage firms
permit their clients to participate in dividend reinvestment plans such as the
Plan and, even if your brokerage firm does permit participation, you may not be
able to transfer your Plan shares to another broker who does not permit
participation. Your brokerage firm will be able to advise you about its
policies.
How does the Plan work?
The cash portion of any dividends or distributions you receive, payable in
whole or in part in cash, will be reinvested in shares of the Fund. The number
of shares credited to your Plan account as a result of the reinvestment will
depend upon the relationship between the Fund's market price and its net asset
value per share on the record date of the distribution or dividend, as
described below:
. If the net asset value is greater than the market price (the Fund is
trading at a discount), AST, as Plan Agent, will buy Fund shares for your
account on the open market on the New York Stock Exchange or elsewhere.
Your dividends or distributions will be reinvested at the average price
AST pays for those purchases.
. If the net asset value is equal to the market price (the Fund is trading
at parity), the Fund will issue for your account new shares at net asset
value.
. If the net asset value is less than but within 95% of the market price
(the Fund is trading at a premium of less than 5%), the Fund will issue
for your account new shares at net asset value.
. If the net asset value is less than 95% of the market price (the Fund is
trading at a premium of 5% or more), the Fund will issue for your account
new shares at 95% of the market price.
If AST begins to buy Fund shares for your account at a discount to net asset
value but, during the course of the purchases, the Fund's market price
increases to a level above the net asset value, AST will complete its
purchases, even though
17
THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Dividend Reinvestment Plan (Unaudited) (concluded)
the result may be that the average price paid for the purchases exceeds net
asset value.
Will the entire amount of my distribution or dividend be reinvested?
The entire amount of your distribution or dividend, payable in cash, will be
reinvested in additional Fund shares. If a balance remains after the purchase
of whole shares, your account will be credited with any fractional shares
(rounded to three decimal places) necessary to complete the reinvestment.
How can I sell my shares?
You can sell any or all of the shares in your Plan account by contacting AST.
AST charges $15 for the transaction plus $.10 per share for this service. You
can also withdraw your shares from your Plan account and sell them through your
broker.
Does participation in the Plan change the tax status of my distributions or
dividends?
No. The distributions and dividends are paid in cash and their taxability is
the same as if you received the cash. It is only after the payment of
distributions and dividends that AST reinvests the cash for your account.
Can I get certificates for the shares in the Plan?
AST will issue certificates for whole shares upon your request. Certificates
for fractional shares will not be issued.
Is there any charge to participate in the Plan?
There is no charge to participate in the Plan. You will, however, pay a pro
rata share of brokerage commissions incurred with respect to AST's open market
purchases of shares for your Plan account.
How can I discontinue my participation in the Plan?
Contact your broker or AST in writing. If your shares are in a Plan account,
AST will send you a certificate for your whole shares and a check for any
fractional shares.
Where can I direct my questions and correspondence?
Contact your broker, or contact AST as follows:
By mail:
American Stock Transfer & Trust Company
PO Box 922
Wall Street Station
New York, NY 10269-0560
Through the Internet:
www.amstock.com
Through AST's automated voice response System:
1-888-556-0425
AST will furnish you with a copy of the Terms and Conditions of the Plan
without charge.
18
A SWISS INVESTMENTS FUND
THE SWISS HELVETIA FUND, INC.
EXECUTIVE OFFICES
The Swiss Helvetia Fund, Inc.
1270 Avenue of the Americas
Suite 400
New York, New York 10020
1-888-SWISS-00
(212) 332-2760
www.swz.com
THE SWISS
--------------------------------------------------------------------------------
HELVETIA
--------------------------------------------------------------------------------
FUND, INC.
--------------------------------------------------------------------------------
www.swz.com
QUARTERLY REPORT
FOR THE
PERIOD ENDED
MARCH 31, 2008