Directors and Officers

Samuel B. Witt III, Esq.          Baron Hottinger..............................
Chairman                          Director Emeritus
Eric R. Gabus+................... Rodolphe E. Hottinger........................
Vice Chairman (Non officer)       President
Jean-Marc Boillat................ Chief Executive Officer
Director                          Rudolf Millisits.............................
Paul R. Brenner, Esq.**.......... Senior Vice President Treasurer
Director                          Philippe R. Comby, CFA, FRM
Alexandre de Takacsy............. Vice President
Director                          Edward J. Veilleux...........................
Claude Frey...................... Vice President
Director                          Secretary
Paul Hottinguer.................. Leslie K. Klenk..............................
Director                          Assistant Secretary
Michael Kraynak, Jr.*............ Frederick Skillin............................
Director                          Assistant Treasurer
Claude Mosseri-Marlio............ Sara M. Morris...............................
Director                          Assistant Treasurer
Didier Pineau-Valencienne*        Peter R. Guarino, Esq........................
Director                          Chief Compliance Officer
Stephen K. West, Esq.*...........
*Audit Committee Member           +Governance/Nominating Committee Chairman
**Audit Committee Chairman

  Investment Advisor
Hottinger Capital Corp.
1270 Avenue of the Americas, Suite 400
New York, New York 10020
(212) 332-7930

Citigroup Fund Services, LLC

Swiss American Securities Inc.

  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. ("HCC"), 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 New York, Zurich, Luxembourg, Toronto, Geneva,
Vienna, London, Sion, Lugano, 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

Website Address

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 6:15 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 and the Monday
edition of The Wall Street Journal.


                         THE SWISS HELVETIA FUND, INC.

Letter to Stockholders

  Swiss Market Review and Fund Performance
    Equity markets across the world continued to perform strongly in the first
quarter of this year. This was true in Switzerland where the industrial sector,
in particular, showed strong performance due largely to the investment boom in
the Chinese economy and in other emerging markets. It was also true in the
United States to some extent and was beginning in Europe. Infrastructure
spending also has been vibrant globally, especially in the energy sector and
global trade has boosted the performance of the service companies in logistics
and freight forwarding.

   Investment banks and asset managers enjoyed strong financial markets across
the board. On the other hand, performance of the food and pharmaceutical
sectors, especially in the large cap arena, has lagged as their sales growth
and pricing power were not able to match the rest of the market.

   Buyout activity in the private equity sector had a strong positive impact on
the valuations of the small and mid cap sectors, as many small and mid cap
targets companies were considered to be underleveraged (a consequence of the
reaction to the 2000 to 2003 financial market turmoil). In addition, borrowing
costs are at extremely low historic levels, in comparison to the cost of equity
creating the opportunity for capital arbitrage. While the size of large
companies has been a deterrent to buyouts thus far, private equity funds have
been raising larger amounts of cash and, adding leverage into the mix, large
cap companies could become attractive buyout targets. The mergers and
acquisitions frenzy taking place in Europe has been, in fact, one of the main
drivers for the markets despite the headwind represented by higher interest
rates on both the short and the long end of the yield curve.

    The Fund outperformed the Swiss market during the quarter with a total
return of 7.96% in local currency and 8.87% in U.S. dollar. Exposure to
mid-sized companies in financial services and capital goods was beneficial.

    The Fund has earned the Lipper Inc. award for ranking number one among
Western European close-end funds in one-year performance for the year 2005.* As
of March 31, 2006, the Fund also had a rating of three stars from
Morningstar.** Past performance is no guarantee of future results.

 *The Fund had previously achieved this ranking for one-year performance in
  2000 and also had ranked number one among Western European closed-end funds
  in 10-year performance for the periods ended December 31, 2002, 2001, 2000,
  1999 and 1998. Lipper Inc. is an independent fund performance monitor. As of
  December 31, 2005, there were 6 funds in the Lipper Western European
  closed-end funds category, which is comprised of funds that concentrate their
  investments in equity securities whose primary trading markets or operations
  are in the Western European region or a single country within this region.

**Morningstar is an independent fund performance monitor. Its ratings reflect
  historic risk-adjusted performance and may change monthly. Its ratings of one
  (low) and five (high) stars are based on a fund's three- and five-year
  average annual total returns with fee adjustments, and a risk factor that
  reflects fund performance relative to three-month Treasury Bill monthly
  returns. Only 33% of the funds in an investment category may receive four or
  five stars. As of March 31, 2006, there were 9 funds in the Fund's asset
  category rated by Morningstar.


                         THE SWISS HELVETIA FUND, INC.

Letter to Stockholders (continued)

  Swiss Market Corporate News
   Swiss asset managers had strong showings in the first quarter of 2006. The
shares of UBS AG, Bank Sarasin & Cie AG and Julius Baer Holding AG, for
example, far exceeded the performance of the Swiss Performance Index. The
strength of this sector was due to higher than expected money inflows, very
favorable capital markets and strong revenues from alternative products. High
net worth individuals and institutional investors continue to allocate more
money to this asset class. Benefiting from this momentum, Partners Group, a
global alternative asset management firm, had a successful initial public
offering. At the end of the first day of trading on March 24th 2006, the
company was valued at 2.1 billion Swiss francs, or about 18% of assets under

    No appeals have been filed with the US District Court regarding the plan of
reorganization of ABB Ltd.'s US subsidiary, Combustion Engineering (CE). This
finally settles one of ABB's biggest asbestos liabilities.

   Serono SA, the largest Swiss biotech company, has been at the center of
take-over speculation. There have been reports that the majority shareholder
hired Goldman Sachs to find an acquirer. The limited productivity of the
company's pipeline has been a drag on the performance of its stock. However,
the company still generates a sizeable cash flow from its strong market
position and royalty streams which could attract buying interest.

   The Wall Street Journal Europe has reported a potential merger being
discussed between Zurich Financial and St. Paul Travelers. Whether or not such
a report is founded, it highlights large valuation spread between the two
companies, Zurich being substantially cheaper, based on several metrics such as
gross premium size and price earnings multiples.

  Swiss Economic Notes
   At its last monetary policy assessment, the Swiss National Bank ("SNB"),
following the action of the European Central Bank ("ECB"), increased interest
rates again in order for them to be "in line with the economic activity." The
SNB lifted the target range for the three-month LIBOR by 0.25% to 0.75%-1.75%
and stated its intention to hold the rate in the middle of the target range for
the time being.

   The Swiss economic upswing continued with an increase in real GDP of 2.1%
for the fourth quarter of 2005, compared with the previous period. The annual
growth was 1.9% for 2005 and the SNB anticipates a rise in real GDP of over 2%
for 2006. The seasonally adjusted unemployment rate fell to 3.5% in comparison
to 3.6% in December 2005.

   The SNB forecasts inflation rates of 1% for 2006 and 1.1% and 2% for 2007
and 2008, respectively. An important positive point is the development in
short-term real interest rates, which, after being in negative territory since
2002, reached 0.7% by the end of 2005.

   After bottoming at the end of 2005 at 1.96% the 10-year confederation bond


                         THE SWISS HELVETIA FUND, INC.

Letter to Stockholders (continued)

finished the first quarter of 2006 at 2.48%. The differential between Euro and
Swiss franc long term interest notes has been relatively stable during the
quarter. Credit spreads in Switzerland have narrowed.

   The KOF (Swiss Institute for Business Cycle Research) has forecast an
increase in GDP of 2.1% in 2006 (in line with SNB forecast) and 1.9% in 2007 on
the back of sustained private consumption, fueled by disposable income growth
and investments in machinery and equipment. Government consumption is expected
to contribute little to economic growth in 2006 but the KOF believes that an
increase in revenues and reduction in prior years' deficits could lead to
higher expenditures in 2007. In the past quarter, economic indicators in
Germany, one of Switzerland's main trading partners, have risen strongly. The
IFO Index (Business climate) reached levels last seen in 2000 with an increase
of nearly 14% from May 2005 to March 2006.

   After an impressive run in 2005, the US dollar started the year under
pressure. It decreased by 0.8% against the Swiss franc and by 2.27% against the
euro in the first quarter. This might be explained by investor expectation of a
decrease in the interest rate differential, due to a perception that the ECB
and the SNB have more room to increase rates than does the Federal Reserve.
More sustained economic activity should therefore create the conditions for a
stronger Swiss currency against the U.S. dollar. It is likely that the U.S.
currency will continue to depreciate overall, as its risk premium may not be
large enough any more to satisfy investors and as global trade tensions seem to
be on the rise.


                         THE SWISS HELVETIA FUND, INC.

Letter to Stockholders (continued)

Peer Group/Indices Performance Comparison in Swiss Francs
                         as of                                                                    Performance
                        3/31/06  2005  2004   2003   2002    2001    2000   1999   1998   1997  12/31/96-3/31/06
----------------------- ------- ------ ----- ------ ------- ------- ------ ------ ------ ------ ----------------
Swiss Helvetia Fund      7.96%  33.20% 7.75% 22.54% -20.40% -22.91% 14.06% 14.70% 15.57% 63.99%     171.27%
Swiss Performance Index
 (SPI)                   7.33%  35.61% 6.89% 22.06% -25.95% -22.03% 11.91% 11.69% 15.38% 55.19%     145.35%
Swiss Market Index
 (SMI)                   5.79%  33.21% 3.74% 18.51% -27.84% -21.11%  7.47%  5.71% 14.28% 58.93%     103.51%
Switzerland iShares/2/
(Formerly called Webs
 Switzerland)            7.14%  32.45% 6.34% 19.14% -26.23% -23.12%  7.75% 12.22% 11.74% 47.79%     103.61%
CS EF Swiss Blue
 Chips/3,7/              6.15%  32.27% 2.75% 18.13% -28.75% -22.12% 10.97%  7.57% 14.21% 59.90%     106.15%
UBS (CH) Equity Fund
 --Switzerland/4,7/      7.22%  33.50% 5.00% 18.14% -26.02% -22.04%  7.42%  6.43% 12.75% 55.94%     105.85%
Pictet (CH) -- Swiss
 Equities/5,7/           6.61%  37.06% 7.05% 20.10% -27.93% -22.35%  7.34%  9.38% 11.05% 55.65%     113.35%
Saraswiss (Bank
 Sarasin)/6,7/           6.83%  33.05% 2.93% 19.64% -28.51% -24.45%  9.72%  7.10% 14.41% 53.57%      95.19%

   Source: Bloomberg, management companies' websites, Investment Company
Capital Corp., and Forum Financial Group.
   /1 /Performance of funds is based on changes in the fund's NAV over a
specified period. In each case total return is calculated assuming reinvestment
of all distributions. Funds listed, other than Switzerland iShares, 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 Switzerland iShares are traded on the New York Stock Exchange
and invest in most of the same stocks listed in the Morgan Stanley Capital
International (Switzerland) Index. These stocks represent Switzerland's largest
and most established public companies, accounting for approximately 85% of the
market capitalization of all of Switzerland's publicly traded stocks.
Performance of shares of Switzerland iShares is calculated based upon the
closing prices of the period indicated using the Swiss franc/U.S. dollar
exchange rate as of noon on each date, as reported by Bloomberg. Such exchange
rates were as follows: 12/31/96 = 1.35, 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 = 1.3179, and 3/31/06 = 1.3088.
   /3 /This fund gives investors access to the Swiss equity market. It has a
broadly-diversified portfolio geared to 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
   /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.


                         THE SWISS HELVETIA FUND, INC.

Letter to Stockholders (concluded)

                                                     Year to Date
                                                   December 31, 2005
                                                    March 31, 2006
           --------------------------------------- -----------------
           Performance in Swiss Francs
           Swiss Performance Index (SPI)                 7.33%
           Swiss Helvetia Fund
            Based on Net Asset Value                     7.96%
           Change In U. S. Dollar vs. Swiss Franc       -0.84%
           Performance in U.S. Dollars
           Swiss Helvetia Fund Performance
            Based on Net Asset Value                     8.87%
            Based on Market Price                        9.47%
           S & P 500 Index                               4.21%
           MSCI EAFE Index                               9.40%
           Lipper European Fund Index (10 Largest)      11.28%
           Lipper European Fund Universe Average        12.56%

   Sources: Forum Financial Group and Bloomberg

  Outlook / Strategy
    Higher interest rates and expected inflation will provide strong challenges
to the Swiss equity market going forward. An expected increase in currency and
bond market volatility will reduce the capacity of investment banks and other
intermediaries to take on risk in trading portfolios and could reduce liquidity
in a sudden fashion.

    On the other hand earnings growth for the small and mid cap sectors and
high free cash flow yields in the large cap sector should provide downside
protection. We believe short term oriented money will continue to be a big
factor in the equity markets. It is creating sharp moves on the upside on short
covering and on the downside risk with stop loss orders.

    Overall, management believes that a stock picking strategy should continue
to deliver competitive returns as banks are reducing their commitments to
research, making some areas of the public market less efficient.

  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 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
1,000,000 shares during 2006. During the quarter ended March 31, 2006, the Fund
repurchased and retired 24,000 shares at an average price of $15.61 per share
(including brokerage commissions) and a weighted average discount of 13.89%.
These repurchases, which had a total cost of $375,526, resulted in an increase
of $60,554 to the Fund's net asset value.


/s/ Samuel B. Witt III

Samuel B. Witt III, Esq.

/s/ Rodolphe Hottinger

Rodolphe Hottinger
President and Chief Executive Officer

March 31st, 2006


                         THE SWISS HELVETIA FUND, INC.

             Schedule of Investments (Unaudited)     March 31, 2006

                   No. of                             of Net
                   Shares    Security       Value     Assets
                   Common Stocks -- 98.28%

                   Banks -- 15.94%

                     1,343 Bank
                           Sarasin &
                           Cie AG
                           Shares        $  3,596,817   0.76%

                   428,000 Credit
                           Shares          23,956,996   5.08%
                           A global
                           with large
                           activity in

                   435,000 UBS AG/2/
                           Shares          47,665,761  10.10%
                           A global
                           with large
                           activity in
                           and asset
                                         ------------  -----
                                           75,219,574  15.94%

                   Basic Resources --

                   101,136 Precious
                           Shares           8,938,446   1.89%
                           trees and
                           them into

         No. of                                                of Net
         Shares              Security                Value     Assets

         Basic Resources -- (continued)

         156,000 Swiss Steel AG
                 Registered Shares                $  7,251,789  1.54%
                 Manufactures industrial and
                 construction steel.
                 (Cost $5,484,167)
                                                  ------------  ----
                                                    16,190,235  3.43%

         Biotechnology -- 4.71%

          61,331 Actelion Ltd./1/
                 Registered Shares                   6,077,487  1.29%
                 Biotechnology company that
                 develops and markets synthetic
                 small-molecule drugs against
                 diseases related to the
                 (Cost $3,843,176)

          95,200 Basilea Pharmaceutica/1,2/
                 Registered Shares                  13,112,446  2.78%
                 Conducts research into the
                 development of drugs for the
                 treatment of infectious diseases
                 and dermatological problems.
                 (Cost $11,771,791)

          22,000 Speedel Holding AG/1/
                 Registered Shares                   3,030,187  0.64%
                 Researches and develops
                 therapies for cardiovascular and
                 metabolic diseases
                 (Cost $2,574,024)
                                                  ------------  ----
                                                    22,220,120  4.71%

         Chemicals -- 3.55%

           5,945 Sika AG
                 Bearer Shares                       6,095,803  1.29%
                 Leading producer of construction
                 (Cost $3,638,959)


                         THE SWISS HELVETIA FUND, INC.

             Schedule of Investments (Unaudited)     March 31, 2006

         No. of                                                 of Net
         Shares              Security                 Value     Assets
         Common Stocks -- (continued)

         Chemicals -- (continued)

          75,931 Syngenta AG
                 Registered Shares                 $ 10,644,343   2.26%
                 Produces herbicides, insecticides
                 and fungicides, and seeds for
                 field crops, vegetables, and
                 (Cost $4,361,658)
                                                   ------------  -----
                                                     16,740,146   3.55%

         Financial Services -- 0.60%

          18,000 Julius Baer Holding AG
                 Registered Shares                    1,623,905   0.34%
                 Offers private banking,
                 institutional asset management,
                 mutual funds, securities
                 brokerage, and corporate finance
                 (Cost $1,567,111)

          15,000 OZ Holding AG
                 Bearer Shares                        1,228,144   0.26%
                 Provides brokerage and banking
                 services, specializing in futures
                 and options.
                 (Cost $987,525)
                                                   ------------  -----
                                                      2,852,049   0.60%

         Food & Beverages -- 13.94%

             300 Lindt & Sprungli AG
                 Registered Shares                    5,819,337   1.23%
                 Major manufacturer of premium
                 Swiss chocolates.
                 (Cost $1,196,399)

         202,500 Nestle AG/2/
                 Registered Shares                   59,966,714  12.71%
                 Largest food and beverage
                 processing company in the
                 (Cost $12,107,256)
                                                   ------------  -----
                                                     65,786,051  13.94%

        No. of                                                    of Net
        Shares                Security                  Value     Assets

       Industrial Goods & Services -- 7.86%

       1,214,000 ABB Ltd./2/
                 Registered Shares                   $ 15,281,249  3.25%
                 The holding company for ABB
                 Group which is one of the largest
                 electrical engineering firms in the
                 (Cost $8,247,245)

         232,000 Adecco SA
                 Registered Shares                     12,932,777  2.74%
                 Leading personnel and temporary
                 employment company.
                 (Cost $12,023,985)

           1,141 Belimo Holding AG
                 Registered Shares                        825,072  0.18%
                 World market leader in damper
                 and volume control actuators for
                 ventilation and air-conditioning
                 (Cost $231,391)

          15,240 INFICON Holding AG
                 Registered Shares                      2,074,604  0.44%
                 Manufactures and markets
                 vacuum instruments used to
                 monitor and control production
                 processes. Manufactures on-site
                 chemical detection and
                 monitoring system.
                 (Cost $1,444,912)

           8,658 Sulzer AG
                 Registered Shares                      5,893,018  1.25%
                 Manufactures and sells surface
                 coatings, pumps, and process
                 engineering equipment.
                 (Cost $2,835,425)
                                                     ------------  ----
                                                       37,006,720  7.86%


                         THE SWISS HELVETIA FUND, INC.

             Schedule of Investments (Unaudited)     March 31, 2006

       No. of                                                     of Net
       Shares                Security                   Value     Assets
       Common Stocks -- (continued)

       Insurance -- 10.96%

        93,000 Swiss Life Holding/2/
               Registered Shares                     $ 19,427,631   4.12%
               Offers financial services including
               life and property insurance,
               institutional investment
               management, and private
               banking services.
               (Cost $17,941,752)

       100,088 Swiss Reinsurance Company
               Registered Shares                        6,977,095   1.48%
               One of the leading global
               (Cost $6,143,972)

       107,900 Zurich Financial Services AG/2/
               Registered Shares                       25,285,515   5.36%
               Offers property, accident, health,
               automobile, liability, financial risk
               and life insurance and retirement
               (Cost $19,098,648)
                                                     ------------  -----
                                                       51,690,241  10.96%

       Medical Technology -- 0.20%

        16,867 Phonak Holding AG
               Registered Shares                          957,670   0.20%
               Designs and produces analog
               and digital hearing aids.
               (Cost $143,401)
                                                     ------------  -----
                                                          957,670   0.20%

         No. of                                                 of Net
         Shares               Security                Value     Assets

        Personal & Household Goods -- 3.10%

          269,000 Compagnie Financiere
                  Richemont AG, Class A
                  Bearer Shares                    $ 12,864,904   2.73%
                  Manufactures and retails luxury
                  goods through subsidiaries.
                  Produces jewelry, watches,
                  leather goods, writing
                  instruments, and mens' and
                  womens' wear.
                  (Cost $8,966,764)

           10,400 Swatch Group AG
                  Bearer Shares                       1,742,021   0.37%
                  Manufactures finished watches,
                  movements and components.
                  Produces components necessary
                  to its eighteen watch brand
                  companies. Also operates retail
                  (Cost $1,404,455)
                                                   ------------  -----
                                                     14,606,925   3.10%

        Pharmaceuticals -- 26.73%

        1,149,000 Novartis AG/2/
                  Registered Shares                  63,742,970  13.51%
                  One of the leading manufacturers
                  of branded and generic
                  pharmaceutical products. The
                  company also manufactures
                  nutrition products.
                  (Cost $13,461,235)

          420,000 Roche Holding AG/2/
                  Dividend Rights Certificates       62,380,533  13.22%
                  Worldwide pharmaceutical
                  (Cost $8,467,363)
                                                   ------------  -----
                                                    126,123,503  26.73%


                         THE SWISS HELVETIA FUND, INC.

             Schedule of Investments (Unaudited)     March 31, 2006

         No. of                                                 of Net
         Shares              Security                 Value     Assets
         Common Stocks -- (continued)

         Retailers -- 1.31%

         24,767 Galenica Holding AG
                Registered Shares                  $  4,846,891  1.03%
                Manufactures and distributes
                prescription and over-the-
                counter drugs, toiletries and
                hygiene products.
                (Cost $3,088,902)

            800 Jelmoli Holding AG
                Bearer Shares                         1,334,507  0.28%
                Owns and operates department
                and retail stores and provides
                mail-order catalog and real estate
                leasing services.
                (Cost $1,200,963)
                                                   ------------  ----
                                                      6,181,398  1.31%

         Technology -- 1.57%

         71,917 Advanced Digital Broadcast
                Registered Shares                     6,829,322  1.45%
                Develops equipment and systems
                to view and interact with digital
                TV broadcast through cable,
                satellite, and telecommunication
                (Cost $5,413,809)

         14,230 Logitech International SA/1/
                Registered Shares                       567,305  0.12%
                Manufactures personal computer
                input devices, as well as
                producing trackballs, desktop
                publishing programs and related
                (Cost $219,768)
                                                   ------------  ----
                                                      7,396,627  1.57%

        No. of                                                   of Net
        Shares               Security                  Value     Assets

        Utility Suppliers -- 4.38%

        214,450 BKW FMB Energie AG/2/
                Registered Shares                   $ 19,199,334   4.08%
                Produces electricity using
                nuclear, hydroelectric, solar,
                biomass and wind energy.
                (Cost $11,699,646)

          7,000 Centralschweizerische
                Bearer Shares                          1,435,513   0.30%
                Supplies electric power, operates
                and maintains distribution
                network facilities, constructs and
                installs equipment, and offers
                consulting services to its clients.
                (Cost $1,161,341)
                                                    ------------ ------
                                                      20,634,847   4.38%

                Total Common Stocks
                (Cost $204,474,233)*                $463,606,106  98.28%

                Other Assets less Other
                Liabilities, net                       8,130,501   1.72%
                                                    ------------ ------

                Net Assets                          $471,736,607 100.00%
                                                    ============ ======

 /1/Non-income producing security.
 /2/One of the ten largest portfolio holdings.
*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  $259,131,873
                   Gross Unrealized Depreciation            --
                   Net Unrealized Appreciation    $259,131,873


                         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

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
  .   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 val-


                         THE SWISS HELVETIA FUND, INC.

Dividend Reinvestment Plan (Unaudited) (concluded)

ue, AST will complete its purchases, even though 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

Does participation in the Plan change the tax status of my distributions or
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:

   Through AST's automated voice response System:

AST will furnish you with a copy of the Terms and Conditions of the Plan
without charge.


                                                      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
                                (212) 332-2760

                                   The Swiss
                                  Fund, Inc.

                               Quarterly Report
                                    For the
                          Period Ended March 31, 2006