THE SWISS
HELVETIA
FUND, INC.
www.swz.com
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, NY 10020
1-888-SWISS-00
(212) 332-2760
http://www.swz.com
Quarterly Report
For the Period Ended
March 31, 2001
THE SWISS HELVETIA FUND, INC.
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Directors and Officers
Paul Hottinguer
Chairman and
Chief Executive Officer
Eric R. Gabus
Vice Chairman (Non officer)
Alexandre de Takacsy
Director
Claude Frey
Director
Baron Hottinger
Director
Claude Mosseri-Marlio
Director
Didier Pineau-Valencienne*
Director
Stephen K. West, Esq.*
Director
Samuel B. Witt III, Esq.**
Director
Rodolphe E. Hottinger
President and
Chief Operating Officer
Rudolf Millisits
Senior Vice President
Philippe Comby
Vice President
Sharon Kanovsky
Vice President
Edward J. Veilleux
Vice President and Treasurer
Paul R. Brenner, Esq.
Secretary
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* Audit Committee member
** Audit Committee chairman
Investment Advisor
Hottinger Capital Corp.
1270 Avenue of the Americas
Suite 400
New York, New York 10020
(212) 332-7930
Administrator
Investment Company Capital Corp.
Custodian
Swiss American Securities Inc.
Transfer Agent
PFPC,Inc.
P.O. Box 8030
Boston,Massachusetts 02266-8030
(800) 331-1710
Legal Counsel
Paul R. Brenner, Esq. and
Salans Hertzfeld Heilbronn
Christy & Viener
Independent Auditors
Deloitte & Touche LLP
The Investment Advisor
The Fund is managed by Hottinger Capital Corp., which is 100% owned by the
Hottinger Group.
The Hottinger Group 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.
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
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
THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders
Economic Developments
The most prominent development in the first quarter of 2001 was the U.S.
Federal Reserve's ("Fed") decision to cut interest rates three times for a total
of 150 basis points. This action was in response to a very abrupt deterioration
in economic conditions in the U.S., including a decline in consumer confidence
numbers. Despite the favorable monetary conditions engineered by the Fed, both
the Manufacturing and the Technology sectors continued to deteriorate. The Fed
confirmed what we mentioned in our last annual report -- that significant
over-capacity was present in the U.S. economy and that it would take some time
to absorb it. This situation has led to a low utilization of assets and to a
deflationary adjustment in the pricing of goods in order to facilitate inventory
reductions. In the face of diminishing profitability, corporations put their
investment programs on hold, reduced their production output and began rapid
cost cutting efforts, which included layoffs. The situation was very similar in
Europe. However, deflation of financial assets compounded by the heavy load of
the telecom debt has not yet materialized in a sharp economic slowdown.
The Swiss Economy
The Swiss National Bank ("SNB"), unlike the European Central Bank, made a
move to reduce short-term rates. It cut its proposed trading range for the
benchmark 3 month LIBOR (London Inter Bank Offered Rate) by 25 basis points to
2.75%-3.75%. The SNB explained that economic uncertainty had risen and that the
economic slowdown would probably be steeper than had been anticipated. The SNB
had projected an annual GDP growth of 2.2% for 2001. On the other side,
inflation has remained below 2% so far this year and the risk of it spiraling
above that level was seen as being very low.
The state of the Swiss economy is still looking healthy with domestic
demand fairly strong and exports increasing by 2.1% in volume in February,
following an increase of 13.5% in January. Business surveys showed good figures
for January, confirming that the slowdown in industry did not accelerate late
last year or in the beginning of this year. Industrial output moderated in the
last quarter of 2000 (5% growth compared to 7.7% growth in the third quarter of
2000). The producer price index recorded a drop of 0.2% in February,
month-over-month, and an
SWISS INTEREST RATES
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
10 Years
Government Bond Libor 3 months
------------------- --------------
12/29/00 3.473 3.37
1/2/01 3.473 3.3483
1/3/01 3.387 3.3233
1/4/01 3.381 3.305
1/5/01 3.351 3.3533
1/8/01 3.348 3.3217
1/9/01 3.402 3.3867
1/10/01 3.389 3.3983
1/11/01 3.364 3.3583
1/12/01 3.407 3.4167
1/15/01 3.41 3.425
1/16/01 3.429 3.4117
1/17/01 3.448 3.4083
1/18/01 3.443 3.4017
1/19/01 3.459 3.4183
1/22/01 3.492 3.43
1/23/01 3.476 3.4483
1/24/01 3.489 3.4383
1/25/01 3.492 3.4517
1/26/01 3.465 3.435
1/29/01 3.461 3.44
1/30/01 3.443 3.4567
1/31/01 3.426 3.42
2/1/01 3.4 3.3983
2/2/01 3.398 3.4233
2/5/01 3.381 3.4267
2/6/01 3.358 3.4575
2/7/01 3.395 3.4883
2/8/01 3.429 3.4983
2/9/01 3.415 3.505
2/12/01 3.404 3.495
2/13/01 3.407 3.4767
2/14/01 3.429 3.475
2/15/01 3.468 3.4683
2/16/01 3.455 3.4933
2/19/01 3.454 3.5117
2/20/01 3.474 3.51
2/21/01 3.503 3.515
2/22/01 3.527 3.5183
2/23/01 3.512 3.4983
2/26/01 3.522 3.5
2/27/01 3.49 3.4767
2/28/01 3.484 3.4283
3/1/01 3.445 3.4167
3/2/01 3.42 3.4233
3/5/01 3.441 3.425
3/6/01 3.428 3.4467
3/7/01 3.413 3.4467
3/8/01 3.367 3.4533
3/9/01 3.374 3.4667
3/12/01 3.363 3.4883
3/13/01 3.382 3.4317
3/14/01 3.341 3.425
3/15/01 3.343 3.4133
3/16/01 3.314 3.4217
3/19/01 3.346 3.4417
3/20/01 3.359 3.45
3/21/01 3.329 3.4383
3/22/01 3.214 3.4367
3/23/01 3.232 3.325
3/26/01 3.24 3.3317
3/27/01 3.201 3.325
3/28/01 3.235 3.3467
3/29/01 3.278 3.35
3/30/01 3.274 3.325
2
THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders (continued)
increase of 0.6% in year-over-year terms. The impact of lower import prices, due
to a drop in oil prices, was evident. However, even without the oil effect,
import price inflation fell from 2.7% in January, year-over-year, to 1.1% in
February.
Indicators for new orders and industrial production were weaker in
February. Nonetheless, the leading economic indicators point toward a moderate
rather than an abrupt slowdown in the economy. The inverted yield curve
indicates a reduction in GDP growth but the spread between long term and money
market interest rates, although negative, is still narrow.
Currency
The price of the Swiss franc in euros was very stable in spite of the
recent slight divergence in monetary policy between the SNB and the European
Central Bank. The value of the Swiss franc in U.S. dollar terms declined about
8% despite the sharp slowdown in the U.S. economy and the reduction of the
differential in short term rates in favor of the Swiss currency. Market
expectations could be that the U.S. economy will recover sooner rather than
later or that real GDP growth will be higher in the U.S. than in Europe and
Switzerland. The main reason for this scenario would be that the European
Central Bank in maintaining a high level of interest rates could, down the road,
create deflation and imperil economic growth. So, even though the European
Central Bank is trying to prop up the euro, the net result so far is a weakening
of the currency.
Management believes that it is the weakness of the euro that is giving the
U.S. dollar its strength during this time of economic slowdown in the U.S. As
the economy slows down we can expect a reduction in productivity, making the
U.S. economy somewhat less competitive, which would reflect in a downward
adjustment of the U.S. dollar.
The Swiss Stock Market in Review
The first quarter of 2001 was very difficult for equity investing in almost
all the major markets. The Swiss market was one of the weaker performers in
Europe, after a very strong year 2000, with a decline of 11.90% in local
currency and 17.72% in U.S. dollars terms. One of the main drivers of the
pressure on the Swiss Performance Index ("SPI") was
EXCHANGE RATES
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
Swiss Franc vs US Dollar Swiss Franc vs Euro
------------------------ -------------------
12/29/00 0.6207 0.6587
1/1/01 0.6207 0.6588
1/2/01 0.6257 0.6576
1/3/01 0.6129 0.661
1/4/01 0.6236 0.6563
1/5/01 0.6258 0.6532
1/8/01 0.6213 0.6562
1/9/01 0.6195 0.6565
1/10/01 0.6141 0.6548
1/11/01 0.6199 0.6512
1/12/01 0.6177 0.6494
1/15/01 0.6116 0.6492
1/16/01 0.6122 0.6497
1/17/01 0.6087 0.6507
1/18/01 0.6173 0.6544
1/19/01 0.6105 0.6535
1/22/01 0.6129 0.6532
1/23/01 0.6107 0.6527
1/24/01 0.603 0.6537
1/25/01 0.6054 0.6555
1/26/01 0.6057 0.6549
1/29/01 0.6033 0.658
1/30/01 0.6073 0.6558
1/31/01 0.6115 0.6531
2/1/01 0.6123 0.6522
2/2/01 0.6081 0.6491
2/5/01 0.6099 0.6503
2/6/01 0.6043 0.6492
2/7/01 0.6042 0.6508
2/8/01 0.5986 0.6523
2/9/01 0.6021 0.6514
2/12/01 0.6047 0.6494
2/13/01 0.5992 0.6511
2/14/01 0.5987 0.6521
2/15/01 0.5911 0.6535
2/16/01 0.5963 0.6517
2/19/01 0.5994 0.6503
2/20/01 0.5936 0.6512
2/21/01 0.5929 0.6521
2/22/01 0.59 0.6523
2/23/01 0.5973 0.651
2/26/01 0.5925 0.6507
2/27/01 0.596 0.6501
2/28/01 0.5994 0.6486
3/1/01 0.6058 0.651
3/2/01 0.608 0.6496
3/5/01 0.6051 0.6518
3/6/01 0.6064 0.6496
3/7/01 0.6035 0.6492
3/8/01 0.6057 0.6492
3/9/01 0.605 0.6482
3/12/01 0.6036 0.65
3/13/01 0.5944 0.6496
3/14/01 0.5922 0.6498
3/15/01 0.5834 0.6502
3/16/01 0.585 0.6516
3/19/01 0.5863 0.6518
3/20/01 0.5924 0.6513
3/21/01 0.5848 0.6522
3/22/01 0.5802 0.6526
3/23/01 0.5811 0.653
3/26/01 0.5838 0.6512
3/27/01 0.5822 0.6517
3/28/01 0.579 0.6535
3/29/01 0.5789 0.6556
3/30/01 0.5738 0.6546
3
THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders (continued)
the asset allocation shift sparked by the reduction in interest rates in the
United States. With lower interest rates, equity risk premiums are heading down
and risk tolerance is increasing. Defensive stocks, entering the year with
higher than historical valuation premiums compared to the rest of the market,
have been the target of significant sell-offs. The so-called value stocks, which
tend to be more cyclical in nature, have benefited from recent inflows of funds.
This has had a significant impact on the SPI, which is composed mainly of
defensive stocks, with healthcare and the insurance stocks affected the most. On
the other hand, bank stocks benefited from an expectation of lower interest
rates and more liquid capital markets.
Large caps performed the worst during the first quarter as indicated in the
graph above due to their defensive nature. The performance of mid and small cap
stocks is more difficult to grasp. Management mentioned in the 2000 annual
report that trading volume in this segment of the market is often very erratic
due to the impact of large international portfolios and, especially, growth
oriented portfolios, as they trade in and out of these sectors. This has been
the case in the first quarter of 2001. The international investor was much less
active, therefore trading volume has dropped dramatically. A much lower
percentage of market capitalizations have been changing hands during the first
quarter, leading to wild swings in prices. "Growth" stocks in the
Medical-Technology, High Tech, and Asset Management sectors were the most
affected due to the perceived
PERFORMANCE OF
SPI, SPI LARGE CAPS, SPI MID AND SMALL CAPS
(12/29/00 TO 3/31/01)
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
Large Caps -14.15
Mid and Small Caps -8.57
SPI Index 11.87
SPI Index Mid and Small Caps Large Caps
--------- ------------------ ----------
12/29/00 100 100 100
1/3/01 100 101 98
1/4/01 100 102 98
1/5/01 99 101 96
1/8/01 98 101 96
1/9/01 98 101 96
1/10/01 97 101 95
1/11/01 97 101 95
1/12/01 97 102 94
1/15/01 97 102 95
1/16/01 97 102 95
1/17/01 99 103 96
1/18/01 98 104 95
1/19/01 97 104 94
1/22/01 98 103 95
1/23/01 97 102 95
1/24/01 98 103 96
1/25/01 99 103 96
1/26/01 99 103 97
1/29/01 99 103 97
1/30/01 99 103 97
1/31/01 99 103 97
2/1/01 98 103 96
2/2/01 99 103 96
2/5/01 99 103 97
2/6/01 100 103 97
2/7/01 99 103 97
2/8/01 98 103 96
2/9/01 98 102 96
2/12/01 98 102 95
2/13/01 98 102 95
2/14/01 97 101 94
2/15/01 97 102 95
2/16/01 96 101 93
2/19/01 96 100 94
2/20/01 95 100 93
2/21/01 95 100 92
2/22/01 95 98 92
2/23/01 94 98 92
2/26/01 95 99 92
2/27/01 95 98 93
2/28/01 95 98 93
3/1/01 93 95 91
3/2/01 93 95 91
3/5/01 93 96 91
3/6/01 94 97 92
3/7/01 94 97 91
3/8/01 93 97 91
3/9/01 93 96 90
3/12/01 91 95 89
3/13/01 91 95 88
3/14/01 89 93 86
3/15/01 89 92 87
3/16/01 87 91 85
3/19/01 86 91 84
3/20/01 87 91 84
3/21/01 85 89 83
3/22/01 80 86 77
3/23/01 82 88 79
3/26/01 86 90 83
3/27/01 86 91 83
3/28/01 86 91 83
3/29/01 86 90 84
3/30/01 88 91 86
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Swiss Performance Index
Sector Performance in Swiss Franc (12/31/00-3/31/01)
--------------------------------------------------------------------------------
SWISS PERFORMANCE INDEX (11.90)%
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Utilities (0.50)%
Foods (4.30)%
Banks (4.33)%
Building Industry (7.25)%
Machinery (7.31)%
Miscellaneous Services (7.65)%
Retailing (11.14)%
Healthcare/Chemical (12.36)%
Other Industries (19.10)%
Transportation (20.36)%
Electronics & Electrical Engineering (21.56)%
Insurance (24.80)%
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4
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THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders (continued)
larger down side risk for their earnings in a slowing economic environment. The
more numerous regional mid caps with domestic shareholder bases have not been
affected to the same extent. This has helped the SPI Mid and Small Cap indices
to outperform the SPI.
The Swiss Helvetia Fund was penalized by its exposure to the large cap
defensive sector on one side and to the mid cap growth sector on the other. This
happened despite the fact that Management did some portfolio re-balancing to
take into account the change in the economic environment induced by the Fed's
rate cuts. The portfolio changes increased diversification in the Fund.
2000 earnings and management comments on the 2001 outlook were somewhat of
a mixed bag. Among the large caps, several sizable disappointments have been
registered, especially by Zurich Financial Services, ABB and Roche. The guidance
given for 2001 has been very cautious as well for those companies. On the other
side Novartis, UBS, Credit Suisse and Nestle have posted upside surprises. In
the mid cap segment the bad news came from Sairgroup, Gretag Imaging, Mikron
(where the Fund does not have any exposure), Swisslog and Vontobel.
Corporate Actions
Nestle agreed to buy Ralston Purina, the U.S. pet foods producer for $10.3
billion in order to reinforce its higher growing business area and to set itself
up to become the world's biggest player in the estimated $25 billion a year pet
foods business. ABB, in addition to a reorganization of its operating structure
into end market business as opposed to a product orientation, has announced a
buy back of up to six million shares representing 2% of its capital.
Swiss Market Perspectives
Very positive news for shareholders in Swiss companies was a change in
legislation that took place during the quarter, allowing companies to reduce the
minimal nominal value of their shares to one cent, i.e. one rappen or 1/100 of
one franc. That will lead to smaller trading units, making stocks more
attractive to smaller investors and potentially enlarging the base of interest.
Many companies have already announced stock splits. Among them Novartis (40 for
one) and UBS (3 for one).
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Performance year to date through March 31, 2001
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The Swiss Helvetia Fund
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Net Asset ValueSwiss Franc (13.42)%
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Net Asset Value U.S.Dollar (19.14)%
--------------------------------------------------------------------------------
Swiss Performance Index
--------------------------------------------------------------------------------
Swiss Franc (11.90)%
--------------------------------------------------------------------------------
U.S.Dollar (17.72)%
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The Swiss Helvetia Fund
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Market Price Swiss Franc (9.54)%
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Market Price U.S.Dollar (15.52)%
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5
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THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders (continued)
According to Management's earnings expectations, the Swiss market currently
trades at a price earnings multiple of 19 times 2000 earnings and 17 times
forecasted 2001 earnings. Even if the market should register no earnings growth
in 2001, its current valuation bears an equity risk premium of 2%. Despite the
very difficult macro economic conditions, this should provide downside
protection to the market and allow it to rebound as the global economy ceases to
deteriorate. The problem the financial markets have to deal with is
misallocation of capital during the year 1999 and early 2000, and a high level
of debt on the corporate and consumer side.
The strategy of the Fund has been to be more neutral in terms of sector
weightings (due to economic uncertainty) and to focus on a stock picking
approach, with priority given to "value" and "under valued growth" stocks.
Management prefers this investment stance to a sector rotation strategy that
might offer more immediate gratification but would also expose the Fund to
higher volatility.
The main criteria for the Fund's stock selection approach is the creation
of sustainable shareholder value. Companies with a comprehensive long term
strategy, with visionary management with a good track record in good and bad
economic conditions, and which are active in expanding addressable markets, are
the ones Management concentrates its research efforts on.
Market Outlook
U.S.
The need to de-leverage the U.S. economy (to restore the balance sheets of
corporations and to reduce consumer debt) will delay the positive impact of the
Fed rate cuts and put pressure on corporate and consumer spending. The Fed funds
rate is still high, especially looking at the very low potential for increased
inflation. Further cuts are therefore expected.
Europe
On the positive side, the continent did not have the same over-investment
in Technology as in the U.S., and fewer households have equity investments.
Euroland appears to be a big closed economy (exports being equal to only 15% of
GDP) and tax cuts have already been implemented.
On the negative side, if a major slowdown in world trade is in the works,
(slower U.S. activity, weakening Taiwanese and Korean exports, and continuing
weakness in Japan), Europe will be affected, especially European corporations,
since a large number of them recently purchased U.S. assets. For the stock
markets the major risk is complacency in terms of earnings expectations. Some
estimates for European companies still appear on the high side.
6
THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders (concluded)
Stock Repurchase Program
During the first quarter of 2001, the Fund repurchased 308,500 shares, at
an average price of $14.63 and an average discount of 17.87%. This program has
enhanced stockholders value by $967,760. During the same period, the discount
was between 12.95% and 19.76% finishing the quarter at 15.46%.
Sincerely,
/S/ PAUL HOTTINGUER
---------------
Paul Hottinguer
Chairman and Chief Executive Officer
/S/ RODOLPHE HOTTINGER
------------------
Rodolphe Hottinger
President and Chief Operating Officer
May 9, 2001
7
THE SWISS HELVETIA FUND, INC.
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Schedule of Investments March 31, 2001
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
--------------------------------------------------------------------------------
Common Stocks -- 93.79%
Banks -- 15.01%
2,081 Bank Sarasin & Co.
Registered Shares $ 5,156,333 1.48%
Specializes in investment
advisor services and
portfolio management for
private and institutional
customers in Europe.(1)
(cost $1,774,473)
3,600 Banque Cantonale Vaudoise
Bearer Shares 1,147,171 0.33
Attracts deposits and offers
real estate mortgages and
commercial loans as well as
investment counseling and
portfolio management.(1)
(cost $1,227,323)
107,000 Credit Suisse Group
Registered Shares 18,836,291 5.40
A global operating financial
group.(1,3)
(cost $6,828,597)
550 Julius Baer Holdings AG
Bearer Shares 2,456,206 0.70
Banking group specializing
in asset management,
investment consulting and
securities trading.(1)
(cost $607,255)
1,500 Oz Holding
Bearer Shares 1,594,733 0.46
Provides brokerage and
banking services,
specializing in Swiss
futures and options.
(cost $1,365,178)
Percent
No. of of Net
Shares Security Value Assets
--------------------------------------------------------------------------------
Banks -- (continued)
145,000 UBS Ltd.
Registered Shares $ 20,846,779 5.98%
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:
UBS Switzerland, UBS Asset
Management and UBS
Warburg.(1,3)
(cost $8,314,606)
1,324 Vontobel Holding AG
Bearer Shares 2,288,809 0.66
Provides investment, banking
and consulting services to
private and institutional
customers.(1)
(cost $2,422,303)
---------- -----
52,326,322 15.01
Biotechnology -- 2.10%
7,500 Actelion Ltd.
Registered Shares 2,312,147 0.66
Develops and markets
synthetic small-molecule
drugs against diseases
related to the
endothelium.(1)
(cost $1,922,625)
6,200 Serono SA
Bearer Shares 5,001,729 1.44
Develops and markets
biotechnology products.(1)
(cost $4,495,858)
---------- -----
7,313,876 2.10
8
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THE SWISS HELVETIA FUND, INC.
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Schedule of Investments (continued) March 31, 2001
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
--------------------------------------------------------------------------------
Common Stocks -- (continued)
Chemicals -- 1.91%
1,000 Bachem AG
Registered Shares $ 1,313,818 0.38%
Produces bulk peptides which
are used in the
manufacturing of drugs and
for research purposes.(1)
(cost $1,980,583)
9,700 Clariant Ltd.
Registered Shares 2,643,829 0.76
Specializes in color
chemistry and manufactures a
range of dyestuffs,
pigments, chemicals,
additives and master batches
for the textile, paper,
leather, plastics, synthetic
fibers and paint
industries.(1)
(cost $3,078,385)
2,250 Gurit-Heberlein AG
Bearer Shares 2,034,257 0.58
European market leader for
wind screen bonding systems,
ski based and optically pure
thermoplastic sheeting for
the auto industry.(1)
(cost $2,223,639)
2,523 Sika Finanz Ltd.
Bearer Shares 673,856 0.19
Leading producer of
construction chemicals.(1)
(cost $614,614)
---------- -----
6,665,760 1.91
Electrical Engineering & Electronics -- 12.64%
155,500 ABB Ltd.
The holding company for ABB 11,290,192 3.24
Group which is one of the
largest electrical
engineering firms in the
world.(2,3)
(cost $11,166,643)
Percent
No. of of Net
Shares Security Value Assets
--------------------------------------------------------------------------------
Electrical Engineering & Electronics -- (continued)
97,152 Ascom Holding AG
Bearer Shares $ 6,060,104 1.74%
Manufactures
telecommunications service
automation equipment and
systems, as well as power
systems.(1,3)
(cost $6,751,808)
4,055 Belimo Automation AG
Registered Shares 1,729,111 0.50
World market leader in
damper and volume control
actuators for ventilation
and air conditioning
equipment.(1)
(cost $1,259,329)
4,800 Disetronic Holding Ltd.
Registered Shares 3,471,246 1.00
Develops, manufactures and
markets infusion (insulin
pumps) and injection
systems.(1)
(cost $4,132,588)
14,400 Kaba Holding AG
Registered Shares 3,153,164 0.90
Provides mechanical and
electronic security
systems.(1)
(cost $4,108,459)
1,150 Kudelski SA
Bearer Shares 860,810 0.25
Designs, produces and
distributes equipment under
the `Nagra' brand name for
professional data display in
audio and video
applications.(1)
(cost $1,227,377)
6,000 Leica Geosystems
Registered Shares 1,376,052 0.39
Manufactures surveying and
mapping equipment, and
produces devices that
capture and process spatial
data.(1)
(cost $1,657,638)
9
--------------------------------------------------------------------------------
THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Schedule of Investments (continued) March 31, 2001
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
--------------------------------------------------------------------------------
Common Stocks -- (continued)
Electrical Engineering & Electronics -- (continued)
8,255 Logitech International SA
Registered Shares $ 1,893,218 0.54%
Manufactures personal
computer input devices, as
well as producing
trackballs, desktop
publishing programs, and
related software.(1)
(cost $1,247,541)
608 Phonak Holding Ltd.
Registered Shares 1,811,317 0.52
Designs and produces
wireless analog and digital
hearing aids and
miniaturized voice
communications systems.(1)
(cost $1,842,863)
4,000 Saia-Burgess Electronics Holding AG
Registered Shares 1,475,164 0.42
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.(1)
(cost $975,888)
6,285 Schaffner Holding Ltd.
Registered Shares 1,756,497 0.50
Develops, manufactures and
markets electrical
components and test
equipment in the area of EMC
(Electro Magnetic
Compatability).
(cost $1,814,360)
5,800 Swisslog Holding, AG
Registered Shares 1,545,753 0.44
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.(1)
(cost $464,077)
Percent
No. of of Net
Shares Security Value Assets
--------------------------------------------------------------------------------
Electrical Engineering & Electronics -- (continued)
6,768 Tecan Group, Ltd.
Registered Shares $ 5,752,449 1.65%
Manufactures and distributes
components and complete
solutions for the automation
of laboratory
processes.(1,3)
(cost $4,094,865)
1,800 The Swatch Group Ltd.
Bearer Shares 1,872,191 0.55
Manufactures watches, watch
components and
microelectronics. Produces
machine tools for
scientific, medical and
industrial use.(1)
(cost $1,212,326)
---------- -----
44,047,268 12.64
Food & Luxury Goods -- 12.85%
300 Lindt & Sprungli AG
Registered Shares 1,644,001 0.47
Major manufacturer of
premium Swiss chocolates.(1)
(cost $1,196,399)
20,700 Nestle Ltd.
Registered Shares 43,143,886 12.38
Largest food and beverage
processing company in the
world.(1,2,3)
(cost $12,427,540)
---------- -----
44,787,887 12.85
Insurance -- 10.97%
3,000 Baloise Holding AG
Registered Shares 3,025,239 0.87
Medium-sized insurer active
in all sectors of
insurance.(1)
(cost $169,640)
10
--------------------------------------------------------------------------------
THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Schedule of Investments (continued) March 31, 2001
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
--------------------------------------------------------------------------------
Common Stocks -- (continued)
Insurance -- (continued)
3,000 Helvetia Patria Holding
Registered Shares $ 2,765,933 0.79%
Provides a broad range of
life, casualty, liability
accident, and transportation
insurance programs.(1)
(cost $2,753,299)
10,050 Swiss Reinsurance Company
Registered Shares 20,211,191 5.80
Second largest reinsurance
company in the world.(1,3)
(cost $9,998,827)
5,200 Swiss Life
Registered Shares 3,595,713 1.03
A financial services company
that provides life
insurance, institutional
investment management and
private banking through
Banca del Gottardo and
STG.(1)
(cost $4,142,382)
26,300 Zurich Allied
Registered Shares 8,638,354 2.48
A multi-line insurance
company whose core business
units are non-life and life
insurance, reinsurance, and
asset management.(1,3)
(cost $4,268,104)
---------- -----
38,236,430 10.97
Machinery -- 2.47%
3,650 Esec Holding AG
Registered Shares 788,723 0.23
Manufactures automatic
assembly equipment for the
semiconductor industry.(1)
(cost $864,154)
Percent
No. of of Net
Shares Security Value Assets
--------------------------------------------------------------------------------
Machinery -- (continued)
2,650 Schindler Holding AG
Registered Shares $ 3,672,496 1.05%
One of the world's largest
elevator companies and a
leading Swiss machinery
enterprise.(1)
(cost $3,574,267)
2,700 Swiss Industrial Holding Ltd.
Registered Shares 1,436,038 0.41
Holding company for
industrial machinery and
automated equipment
manufacturers.(1)
(cost $1,772,584)
4,200 Sulzer AG
Registered Shares 2,703,354 0.78
Manufactures and sells
industrial equipment,
machinery, and medical
devices.(1)
(cost $2,891,059)
---------- -----
8,600,611 2.47
Miscellaneous Industries -- 2.01%
750 Daetwyler Holding Inc.
Bearer Shares 1,136,626 0.33
Manufactures cable, rubber
and plastic products, steel
tubing, pharmaceutical
packaging and industrial
components.(1)
(cost $1,249,175)
2,000 Huber & Suhner AG
Registered Shares 1,221,620 0.35
Manufactures a wide range of
products, extending from
cables for energy and
electrical transmission to
special products such as
rubber.(1)
(cost $524,105)
11
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THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Schedule of Investments (continued) March 31, 2001
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
--------------------------------------------------------------------------------
Common Stocks -- (continued)
Miscellaneous Industries -- (continued)
15,000 Komax Holding AG
Registered Shares $ 1,201,452 0.34%
Seller of wire processing
machines. Most important
markets are the car
industry, household
appliance industry,
telecommunication industry
as well as the electronics
industry.(1)
(cost $589,052)
5,600 Phoenix Mecano AG
Bearer Shares 2,742,883 0.79
Leading Swiss packaging
manufacturer for the
mechanical engineering and
electronics industry.(1)
(cost $3,218,074)
4,400 Unaxis Holdings Ltd.
Registered Shares 709,923 0.20
Provider of systems and IT
services, including
semiconductors, data storage
and displays, as well as
surface technology and space
applications.(1)
(cost $1,031,796)
---------- -----
7,012,504 2.01
Miscellaneous Medical Services -- 0.54%
546 Galenica Holding Ltd.
Manufactures and distributes
prescription and
over-the-counter drugs,
toiletries and hygiene
products.(1)
(cost $490,462)
409,012 0.12
1,800 Unilabs SA
Registered Shares 1,452,115 0.42
Provides clinical laboratory
testing services in Europe.(1)
(cost $1,420,719)
---------- -----
1,861,127 0.54
Percent
No. of of Net
Shares Security Value Assets
--------------------------------------------------------------------------------
Miscellaneous Services -- 2.82%
6,200 Adecco SA
Bearer Shares $ 3,243,978 0.93%
Leading personnel and
temporary employment
company.(1)
(cost $1,902,171)
1,800 Compagnie Financiere Richemont AG
Bearer Shares 4,044,140 1.16
Investment company with
principal interests in
luxury goods and tobacco.(1)
(cost $1,500,228)
2,100 SGS Societe Generale de
Surveillance Holding Ltd.
Registered Shares 2,544,831 0.73
Provides a variety of
industrial inspection,
analysis, testing and
verification services
worldwide.(1)
(cost $2,768,008)
---------- -----
9,832,949 2.82
Pharmaceuticals -- 27.74%
39,500 Novartis AG
Registered Shares 61,660,424 17.69
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.(3)
(cost $21,636,239)
4,860 Roche Holdings Ltd.
Dividend Rights Certificates 35,006,339 10.05
Worldwide pharmaceutical
company.(1,2,3)
(cost $10,912,129)
---------- -----
96,666,763 27.74
12
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THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Schedule of Investments (concluded) March 31, 2001
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
--------------------------------------------------------------------------------
Common Stocks -- (concluded)
Retailers -- 1.15%
13,000 Charles Voegele Holding AG
Manufactures and markets a $1,427,049 0.41%
variety of clothing items
for men, women and children.
Operates approximately 385
retail stores in
Switzerland, Germany,
Austria and Benelux
region.(1)
(cost $2,008,189)
1,900 Jelmoli Holding AG
Bearer Shares 2,572,894 0.74
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.(1)
(cost $1,405,702)
---------- -----
3,999,943 1.15
Telecommunications -- 1.37%
21,300 Swisscom Ltd.
Registered Shares $ 4,786,793 1.37%
Operates public
telecommunication networks
and offers network
application services.(1)
(cost $5,664,693)
---------- -----
4,786,793 1.37
Transportation -- 0.21%
1,500 Kuehne & Nagel International Ltd.
The company operates sea 748,531 0.21
freight, land and rail
transportation businesses
and warehousing and
distribution facilities.(1)
(cost $767,898)
---------- -----
748,531 0.21
Total Common Stocks
(Cost $179,958,096) $326,886,764 93.79%
Other Assets in Excess
of Liabilities 21,639,027 6.21
---------- -----
Total Net Assets $348,525,791 100.0%
============ ======
--------------------------------------------------------------------------------
1 Non-income producing security for the three month period ended March 31, 2001.
2 All or a portion of this security was on loan. The value of all securities
loaned at March 31, 2001 amounted to $83,284,842.
3 One of the ten largest portfolio holdings.
13
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