UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-05128
THE SWISS HELVETIA FUND, INC.
1270 Avenue of the Americas, Suite 400
New York, New York 10020
1-888-SWISS-00
Rodolphe E. Hottinger, President
Hottinger et Cie
3 Place des Bergues
C.P. 395
CH-1201 Geneva
Switzerland
Date of fiscal year end: December 31
Date of reporting period: January 1, 2008 - March 31, 2008
Item 1. Schedule of Investments.
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
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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)
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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)
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)
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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)
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)
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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)
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43,642,203 6.90%
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)
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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)
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94,189,045 14.88%
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)
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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)
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)
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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)
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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)
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4,668,723 0.74%
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)
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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
(Cost $13,106,926)
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23,957,181 3.79%
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 1,968,556 0.31%
BEARER SHARES Operates nuclear and
hydroelectric generating plants and sells excess
power throughout Europe.
(Cost $1,970,882)
5,000 RAETIA ENERGIE AG 2,396,239 0.38%
PARTICIPATION CERTIFICATE 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)
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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%
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TOTAL PRIVATE EQUITY INVESTMENTS 5,257,401 0.83%
(Cost $4,796,577)
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%
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TOTAL CALL WARRANTS 810,373 0.13%
(Cost $2,612,834)
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%
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TOTAL PUT WARRANTS 3,113,189 0.49%
(Cost $3,412,745)
TOTAL INVESTMENTS $511,444,679 80.81%
(Cost $233,437,342)*
OTHER ASSETS LESS OTHER LIABILITIES, NET 121,486,155 19.19%
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NET ASSETS $632,930,834 100.00%
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/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.
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)
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NET UNREALIZED APPRECIATION $278,007,337
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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:
VALUATION INPUTS INVESTMENTS IN SECURITIES
-------------------------------------------- -------------------------
Level 1 - Quoted Prices $506,187,278
Level 2 - Other Significant Observable Inputs $ 0
Level 3 - Significant Unobservable $ 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 -
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Balance as of 3/31/2008 $ 5,257,401
===========
THE PORTFOLIO OF INVESTMENTS SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL
STATEMENTS AND NOTES TO FINANCIAL STATEMENTS WHICH ARE INCLUDED IN THE FUND'S
AUDITED ANNUAL REPORT OR SEMI-ANNUAL REPORT. THESE REPORTS INCLUDE ADDITIONAL
INFORMATION ABOUT THE FUND'S SECURITY VALUATION POLICIES AND ABOUT CERTAIN
SECURITY TYPES INVESTED IN BY THE FUND.
Item 2. Controls and Procedures.
(a) The Registrant's President and Treasurer have concluded that the
Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940 (the "Act")) are effective, based on
their evaluation of these disclosure controls and procedures required by Rule
30a-3(b) as of a date within 90 days of the filing date of this report.
(b) There were no changes in the Registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the
Registrant's last fiscal quarter that have materially affected, or are
reasonably likely to materially affect, the Registrant's internal control over
financial reporting.
Item 3. Certifications as required by Rule 30a-2(a) under the Act are attached
hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
THE SWISS HELVETIA FUND, INC.
By: /s/ Rodolphe E. Hottinger
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Rodolphe E. Hottinger, Chief Executive Officer
Date: 5/23/08
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
By: /s/ Rodolphe E. Hottinger
----------------------------------------------
Rodolphe E. Hottinger, Chief Executive Officer
Date: 5/23/08
By: /s/ Rudolf Millisits
----------------------------------------------
Rudolf Millisits, Chief Financial Officer
Date: 5/23/08