Edgar Filing: SWISS HELVETIA FUND, INC.

THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------

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./3/ Rodolphe E. Hottinger
DIRECTOR PRESIDENT
Alexandre de Takacsy CHIEF EXECUTIVE OFFICER
DIRECTOR Rudolf Millisits
Claude Frey SENIOR VICE PRESIDENT
DIRECTOR CHIEF FINANCIAL OFFICER
Paul Hottinguer Philippe R. Comby, CFA, FRM
DIRECTOR VICE PRESIDENT
Michael Kraynak, Jr./2/ Edward J. Veilleux
DIRECTOR VICE PRESIDENT
Didier Pineau-Valencienne/1,2/ SECRETARY
DIRECTOR Scot E. Draeger
Stephen K. West, Esq./2/ ASSISTANT SECRETARY
DIRECTOR Jean L. Seidel
ASSISTANT TREASURER
Peter R. Guarino, Esq.
CHIEF COMPLIANCE OFFICER
-------------------------------------------------------------------------------
/1/GOVERNANCE/NOMINATING /2/AUDIT COMMITTEE MEMBER
COMMITTEE CHAIRMAN /3/AUDIT COMMITTEE CHAIRMAN

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

ADMINISTRATOR
Citigroup 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 management 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.

THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------

Letter to Stockholders

GLOBAL OVERVIEW
After a strong start, most world equity markets went through a sudden
correction at the end of February. The two triggers for that correction
included the fear of a sharp decrease in U.S. real estate prices (brought on by
reports showing increased stress in the sub-prime market) and a severe drop in
Chinese indexes after official comments about a bubble in financial assets.

Market volatility increased significantly over a very short period of time,
very similar to what occurred in March 2006. After reassuring comments from the
Chairman of the Federal Reserve about the strength of the economy and continued
good corporate earnings reports, the markets returned to and then exceeded
their prior levels. Despite increases in short-term interest rates by many
central banks across the globe, liquidity continued to be created at a fast
pace. This was partly due to the unabated accumulation of foreign currency
reserves by the central banks of the emerging market countries. In particular
the current accounts of commodity and energy producers such as the OPEC
countries, Russia and Brazil have been steadily increasing since 2004. The U.S.
trade deficit and the increase in private household, corporate and public
sector savings in the emerging markets were contributing factors as well.

In addition to the increase in liquidity, investment in equities has
continued to benefit from a positive backdrop. With increases in productivity
that exceed labor costs in China and Europe, there are very few indications of
inflation outside of the food, raw materials and energy sectors. In addition,
world economic growth is still forecasted to be around 5% this year despite the
slowdown in the U.S. economy.

SWISS ECONOMIC NOTES
The Swiss National Bank ("SNB"), continuing its policy of interest rate
normalization, raised the target range for the three-month Libor by 0.25% to
1.75%-2.75% on March 15, 2007. The drop in oil prices in the second half of
2006 should hold back inflation until the middle of 2007 with inflation
projected to be 0.5% in 2007, 1.4% in 2008 and 1.6% in 2009. There is a debate
over the extent of the SNB's concern about possible pressure on the Swiss franc
and, therefore, when there will be a convergence in Swiss and European interest
rates. The Swiss franc's depreciation against the Euro accelerated to 3% during
the first quarter of 2007.

Nevertheless, the Swiss franc continues to be strong versus the U.S.
dollar. Year- over- year the Swiss franc increased by around 7% against the
U.S. dollar but during the first quarter, the above mentioned currencies were
stable against each other mainly due to the Fed decision to leave interest
rates unchanged. With the Fed being still concerned about inflation, the much
talked about potential cut in interest rates seems to have been pushed off,
leaving the U.S. dollar likely to remain relatively stable for now.

THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------

Letter to Stockholders (continued)

Swiss exports have benefited from the strength of the Euro, especially
since Euroland, mainly Germany is Switzerland's biggest trading partner. The
SNB continues to forecast a healthy economic situation for 2007 with real
growth of 2% for the year, helped by Germany's economic development which has
seen strong acceleration.

The unemployment rate in Switzerland reached a four year low of 3% at the
end of the quarter.

The yield on the 10 year confederation bond increased from 2.5% to 2.7% at
the end of the quarter. The yield curve, following higher short-term rates has
not flattened, with the exception of medium-term maturities, as economic
activity continues to be very strong.

SWISS MARKET REVIEW AND FUND PERFORMANCE
The Swiss market has been strong since the beginning of the year. Financial
services and capital goods have done particularly well, as can be expected in
an atmosphere of strong capital market performance driven by a low premium for
risk and vibrant exports. The utility sector has been a notable laggard on the
back of weak quarterly results mainly due to lower margins caused by pressure
on wholesale prices of electricity. In addition, the market has become more
circumspect in light of an approaching period of large investments which are
susceptible to significant changes arising from governmental decisions. Utility
company assets, however, are very valuable due to their peak load production
capacity (hydro-power) and their lack of CO\\2\\ emissions (hydro and nuclear
power). Their medium-term prospects are very good as Switzerland is expected to
need additional production of capacity in the next seven years.

The industrial sector also benefited from the seemingly unstoppable merger
and acquisition rumors and activity from large investors and private equity
funds. Since this sector is very rich in high quality companies with
international footholds, companies which at the same time could benefit from an
increase in scale, support from merger and acquisition speculation will likely
continue.

Real estate companies were, for the most part, in a consolidation mode
during the quarter despite apparent under-valuation of their commercial assets.
In that respect, the case of Jelmoli, a company in retail and substantial
commercial real estate properties, is interesting. Subsequent to a January
announcement from its board of directors that the company's real estate assets
could be spun-off, the stock had increased by more than 50% by the end of March.

Among the large caps, Nestle, Holcim and Swatch Group performed the best.
Their strong emerging market exposure and strong pricing power contributed to
very good earnings. Nestle has benefited from its efforts over the years to
transform the company's main products from food to higher value added nutrition
products, a shift which allowed it to increase prices to compensate for the
hike in raw material costs.

THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------

Letter to Stockholders (continued)

Swatch is moving up the ladder from a company producing a mix of industrial
and luxury goods, to a company that produces almost all luxury goods. It has
been able to increase the value of its main brands and has benefited from
improvement in profitability in its industrial division. As the biggest
producer of mechanical movements, with, in fact, a quasi monopoly, Swatch is
reaping the fruits of the tight supply of movements in the watch industry.

The Fund has a large exposure to mid-size bio-pharmaceutical companies and
utilities. The former sector helped the Fund to outperform its benchmark, the
Swiss Performance Index ("SPI") by 1.87% in Swiss francs and in U.S. dollar
terms. On the other hand, the Fund's relatively low exposure to mid and small
cap industrial companies has somewhat hampered its performance. Management,
however, is looking to increase its exposure to the mid- and small- cap sector,
especially to companies that benefit from the structural growth of
environmental technologies.

The Fund drew on its credit line in the amount of 48 million Swiss francs
to help finance the payment of its distribution to stockholders in January,
since all of its cash had been reinvested. During the first two months of the
year the amount of the loan was reduced to 22 million Swiss francs through the
orderly sale of some portfolio positions. It is currently at 5 million Swiss
francs.

SWISS INDEX COMPOSITION CHANGES
On January 5/th/ 2007, The Swiss Stock exchange ("SWX") announced
significant changes to the SPI and Swiss Market Index ("SMI") component stocks.
The first important change was to reduce the number of stocks in the SMI index,
from 25 to 20, bringing it in line with other top international indices. The
SMI Mid-Cap Index ("SMIM") will be expanded by including some of the stocks
removed from the SMI. Smaller securities in the SMI will therefore gain
importance by having a stronger weighting in the SMIM. The SMIM will be
comprised of a fixed number of 30 securities.

The next important change was the launch of a capped equity index for the
30 largest Swiss securities. It will be comprised of the 20 securities from the
restructured SMI and the 10 largest securities of the SMIM (according to the
rankings as of June 30, 2007). The maximum weighting of each of the four
largest securities in the index (Nestle, Novartis, Roche, and UBS) will each
comprise only 9% of the index. The SWX said that the reasons for this new index
were to improve risk diversification, allow the sale of options and futures at
Eurex USA and increase the liquidity of the basket companies, because the new
index will meet the provisions of Swiss, European and U.S. laws. Prior to this
change, U.S. regulatory restrictions prevented institutional investors from
trading SMI index products because the weighting of the four biggest companies
exceeded 40%. This index should attract foreign investors.

THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------

Letter to Stockholders (continued)

------------------------------------------------------------------------------------------------------------------------------------
PEER GROUP/INDICES PERFORMANCE COMPARISON IN SWISS FRANCS /1/
--------------------------------------------------------------------------------------------------------------------
TOTAL RETURN TOTAL RETURN AS OF YEAR ENDED DECEMBER 31
YTD AS ----------------------------------------------------------------------
OF 3/31/07 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997
------------------------------- ------------ ------ ------ ----- ------ ------- ------- ------ ------ ------ ------

SWISS HELVETIA FUND 5.54% 20.56% 33.20% 7.75% 22.54% -20.40% -22.91% 14.06% 14.70% 15.57% 53.99%
Swiss Performance Index
(SPI) 3.67% 20.67% 35.61% 6.89% 22.06% -25.95% -22.03% 11.91% 11.69% 15.36% 55.19%
Swiss Market Index (SMI) 2.18% 15.85% 33.21% 3.74% 18.51% -27.84% -21.11% 7.47% 5.71% 14.28% 58.93%
iShares MSCI Switzerland/2/
(Formerly called Webs
Switzerland) 3.04% 20.02% 32.45% 6.34% 19.14% -26.23% -23.12% 7.75% 12.22% 11.74% 47.79%
CS EF Swiss Blue Chips/3,7/ 2.89% 18.78% 32.27% 2.75% 18.13% -28.75% -22.12% 10.97% 7.57% 14.21% 59.90%
UBS (CH) Equity Fund/4,7/ 3.40% 18.98% 33.50% 5.00% 18.14% -26.02% -22.04% 7.42% 6.43% 12.75% 55.94%
Pictet (CH)-Swiss Equities/5,7/ 3.63% 19.37% 37.06% 7.05% 20.10% -27.93% -22.35% 7.34% 9.38% 11.05% 55.65%
Saraswiss (Bank Sarasin)/6,7/ 2.75% 18.69% 33.05% 2.93% 19.64% -28.51% -24.45% 9.72% 7.10% 14.41% 53.57%

SWISS HELVETIA FUND 219.72%
Swiss Performance Index
(SPI) 185.96%
Swiss Market Index (SMI) 127.72%
iShares MSCI Switzerland/2/
(Formerly called Webs
Switzerland) 135.02%
CS EF Swiss Blue Chips/3,7/ 137.34%
UBS (CH) Equity Fund/4,7/ 136.20%
Pictet (CH)-Swiss Equities/5,7/ 147.56%
Saraswiss (Bank Sarasin)/6,7/ 122.82%

SOURCES : BLOOMBERG, MANAGEMENT COMPANIES' WEBSITES AND CITIGROUP FUND
SERVICES, LLC.
/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 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: 12/31/96 = 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=1.32,
12/31/06=1.22 AND 3/31/07=1.22.
/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.

THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------

Letter to Stockholders (continued)

---------------------------------------------------------
YEAR TO DATE
DECEMBER 31, 2006
THROUGH
MARCH 31, 2007
--------------------------------------- -----------------

PERFORMANCE IN SWISS FRANCS
Swiss Performance Index (SPI) 3.67%
Swiss Helvetia Fund
Based on Net Asset Value 5.54%
CHANGE IN U. S. DOLLAR VS. SWISS FRANC 0.01%
PERFORMANCE IN U.S. DOLLARS
SWISS HELVETIA FUND PERFORMANCE
Based on Net Asset Value 5.53%
Based on Market Price 5.34%
S & P 500 Index 0.64%
MSCI EAFE Index 4.08%
Lipper European Fund Index (10 Largest) 4.11%
Lipper European Fund Universe Average 4.29%

SOURCES: CITIGROUP FUND SERVICES, LLC AND BLOOMBERG

OUTLOOK
Increases in raw material costs will have to be offset by productivity
improvements and by the ability to pass the increases on to customers, an
action that requires a strong market position (brand name and market share).
Otherwise, margins will be under pressure. Management will therefore emphasize
analysis of competitive advantage and pricing power in its stock selection. The
Fund is expected to be more oriented toward underappreciated growth companies
that play a critical role in solving the challenges of today's society. Such
companies can be found in healthcare, clean energy supply, energy savings, and
conservation of water. All companies in all sectors can contribute to overall
environmental protection and such contribution should pay off in terms of
better innovation rates, improved efficiencies and better relationships with
regulators. Exposure to emerging markets countries will continue to be very
important as a source of growth. Even if the Chinese government implemented
measures in an effort to slow down its economy, its rate of GDP growth will not
likely be much lower than 9%. This rate of growth will continue to benefit its
neighboring Asian countries and Europe. Despite the slowdown in the U.S. and
the reduction in domestic construction activity due to the high level of
mortgage debt and high home ownership, Management expects relatively strong
activity on the back of strong exports and higher real wage growth.

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

THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------

Letter to Stockholders (concluded)

Board has authorized the Fund to repurchase up to 500,000 shares during 2007.

SUBSEQUENT EVENTS

The Fund's Board of Directors has authorized the Fund to issue transferable
rights to stockholders of record as of the close of business on May 24, 2007,
entitling the holders of those rights to subscribe for up to an aggregate of
8,149,552 shares of the Fund's common stock. Record date stockholders will
receive one right for each outstanding whole share of common stock held on that
date. The rights entitle their holders to purchase one new share of common
stock for every three rights held (1-for-3). The offering will be made only by
means of a prospectus. Before investing in the Fund, investors should carefully
consider the investment objective, strategies, risks, and charges and expenses
of the Fund. This information, and other information about the Fund, can be
found in the Fund's prospectus. An investor should carefully read the Fund's
prospectus before investing. For more information or a copy of the Fund's
prospectus, please call Georgeson, Inc., the Information Agent for the
offering, at 1-800-561-3947.

Sincerely,

/s/ Rodolphe Hottinger

Rodolphe E. Hottinger
PRESIDENT AND CHIEF EXECUTIVE OFFICER

/s/ Rudolf Millisits

Rudolf Millisits
SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER

March 31st, 2007

THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------

Schedule of Investments (Unaudited) March 31, 2007

Percent
No. of of Net
Shares Security Value Assets
----------------------------------------------------------------

COMMON STOCKS -- 99.38%

BANKS -- 15.64%

380,000 CREDIT SUISSE GROUP/2/
REGISTERED SHARES $ 27,142,857 5.12%
A global diversified financial
service company with large
activity in private banking,
investment banking, asset
management and insurance
service.
(Cost $12,095,927)

100,000 EFG INTERNATIONAL
REGISTERED SHARES 4,341,415 0.82%
Holding company of EFG Bank.
The Bank offers private banking
and asset management services.
(Cost $3,249,443)

870,000 UBS AG/2/
REGISTERED SHARES 51,453,146 9.70%
A global diversified financial
service company with large
activity in private banking,
investment banking, and asset
management.
(Cost $7,403,841)
------------ ------
82,937,418 15.64%

BASIC RESOURCES -- 3.29%

93,236 PRECIOUS WOODS HOLDING AG/1/
REGISTERED SHARES 7,790,033 1.47%
Through subsidiaries, manages
tropical forests using ecologically
sustainable forest management
methods. Harvests tropical trees
and processes them into lumber.
(Cost $8,284,983)

Percent
No. of of Net
Shares Security Value Assets
--------------------------------------------------------------

BASIC RESOURCES -- (CONTINUED)

94,260 SCHMOLZ AND BICKENBACH AG
REGISTERED SHARES $ 8,037,734 1.51%
Manufactures industrial and
construction steel.
(Cost $2,979,941)

75,000 UMS SCHWEIZERISCHE
METALLWERKE/1/
BEARER SHARES 1,658,748 0.31%
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)
------------ ------
17,486,515 3.29%

BIOTECHNOLOGY -- 15.50%

132,931 ACTELION LTD./1,2/
REGISTERED SHARES 30,842,649 5.81%
Biotechnology company that
develops and markets synthetic
small-molecule drugs against
diseases related to the
endothelium.
(Cost $17,871,161)

156,200 BASILEA PHARMACEUTICA/1,2/
REGISTERED SHARES 36,113,573 6.81%
Conducts research into the
development of drugs for the
treatment of infectious diseases
and dermatological problems.
(Cost $21,602,083)

THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------

Schedule of Investments (Unaudited) March 31, 2007
(continued)

Percent
No. of of Net
Shares Security Value Assets
--------------------------------------------------------------

COMMON STOCKS -- (CONTINUED)

BIOTECHNOLOGY -- (CONTINUED)

103,903 SPEEDEL HOLDING AG/1/
REGISTERED SHARES $ 15,260,328 2.88%
Researches and develops
therapies for cardiovascular and
metabolic diseases
(Cost $14,437,478)
------------ ------
82,216,550 15.50%

CHEMICALS -- 3.44%

95,931 SYNGENTA AG/2/
REGISTERED SHARES 18,269,952 3.44%
Produces herbicides, insecticides
and fungicides, and seeds for
field crops, vegetables, and
flowers.
(Cost $7,696,272)
------------ ------
18,269,952 3.44%

CONSTRUCTION & MATERIALS -- 1.25%

1,141 BELIMO HOLDING AG/1/
REGISTERED SHARES 1,201,004 0.22%
World market leader in damper
and volume control actuators for
ventilation and air-conditioning
equipment.
(Cost $231,391)

3,220 SIKA AG
BEARER SHARES 5,446,674 1.03%
Leading producer of construction
chemicals.
(Cost $891,989)
------------ ------
6,647,678 1.25%

Percent
No. of of Net
Shares Security Value Assets
----------------------------------------------------------------

FINANCIAL SERVICES -- 3.31%

129,300 JULIUS BAER HOLDING AG
REGISTERED SHARES $ 17,560,567 3.31%
Offers private banking,
institutional asset management,
mutual fund, securities
brokerage, and corporate finance
services.
(Cost $12,328,050)
------------ ------
17,560,567 3.31%

FOOD & BEVERAGES -- 14.06%

2,690 BARRY CALLEBAUT AG/1/
REGISTERED SHARES 1,991,940 0.38%
Manufactures cocoa, chocolate,
and confectionary products.
(Cost $1,399,816)

340 LINDT & SPRUNGLI AG
REGISTERED SHARES 9,626,556 1.81%
Major manufacturer of premium
Swiss chocolates.
(Cost $1,977,813)

162,500 NESTLE SA/2/
REGISTERED SHARES 62,994,041 11.87%
Largest food and beverage
processing company in the
world.
(Cost $9,260,282)
------------ ------
74,612,537 14.06%

INDUSTRIAL GOODS & SERVICES -- 2.66%

337,457 ABB LTD.
REGISTERED SHARES 5,749,595 1.08%
The holding company for ABB
Group which is one of the largest
electrical engineering firms in the
world.
(Cost $2,243,911)

THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------

Schedule of Investments (Unaudited) March 31, 2007
(continued)

Percent
No. of of Net
Shares Security Value Assets
------------------------------------------------------------------

COMMON STOCKS -- (CONTINUED)

INDUSTRIAL GOODS & SERVICES -- (CONTINUED)

116,000 ADECCO SA
REGISTERED SHARES $ 7,330,767 1.38%
Leading personnel and temporary
employment company.
(Cost $5,464,982)

6,440 INFICON HOLDING AG
REGISTERED SHARES 1,036,582 0.20%
Manufactures and markets
vacuum instruments used to
monitor and control production
processes. Manufactures on-site
chemical detection and
monitoring system.
(Cost $581,616)
------------ ------
14,116,944 2.66%

INSURANCE -- 3.22%

44,500 SWISS LIFE HOLDING/1/
REGISTERED SHARES 11,117,710 2.09%
Offers financial services including
life and property insurance,
institutional investment
management, and private
banking services.
(Cost $8,286,281)

20,800 ZURICH FINANCIAL SERVICES AG
REGISTERED SHARES 5,976,081 1.13%
Offers property, accident, health,
automobile, liability, financial risk
and life insurance and retirement
products.
(Cost $3,338,952)
------------ ------
17,093,791 3.22%

Percent
No. of of Net
Shares Security Value Assets
--------------------------------------------------------------

MEDICAL TECHNOLOGY -- 0.46%

32,205 PHONAK HOLDING AG
REGISTERED SHARES $ 2,453,363 0.46%
Designs and produces analog
and digital hearing aids.
(Cost $1,100,139)
------------ ------
2,453,363 0.46%

PERSONAL & HOUSEHOLD GOODS -- 0.55%

20,950 ADVANCED DIGITAL BROADCAST
HOLDING SA/1/
REGISTERED SHARES 1,235,583 0.23%
Develops equipment and systems
to view and interact with digital
TV broadcast through cable,
satellite, and telecommunication
networks.
(Cost $1,352,807)

6,367 SWATCH GROUP AG
BEARER SHARES 1,675,458 0.32%
Manufactures finished watches,
movements and components.
Produces components necessary
to its eighteen watch brand
companies. Also operates retail
boutiques.
(Cost $859,824)
------------ ------
2,911,041 0.55%

PHARMACEUTICALS -- 21.96%

899,000 NOVARTIS AG/2/
REGISTERED SHARES 51,327,244 9.67%
One of the leading manufacturers
of branded and generic
pharmaceutical products. The
company also manufactures
nutrition products.
(Cost $9,855,249)

THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------

Schedule of Investments (Unaudited) March 31, 2007
(continued)

Percent
No. of of Net
Shares Security Value Assets
---------------------------------------------------------------

COMMON STOCKS -- (CONTINUED)

PHARMACEUTICALS -- (CONTINUED)

370,200 ROCHE HOLDING AG/2/
NON-VOTING EQUITY SECURITIES $ 65,197,412 12.29%
Worldwide pharmaceutical
company.
(Cost $6,799,732)
------------ ------
116,524,656 21.96%

RETAILERS -- 5.85%

75,950 GALENICA AG/2/
REGISTERED SHARES 24,014,335 4.53%
Manufactures and distributes
prescription and over-the-
counter drugs, toiletries and
hygiene products.
(Cost $14,745,078)

2,100 JELMOLI HOLDING AG
BEARER SHARES 6,992,546 1.32%
Owns and operates department
and retail stores and provides
mail-order catalog and real estate
leasing services.
(Cost $3,707,265)
------------ ------
31,006,881 5.85%

TECHNOLOGY -- 2.14%

123,000 KUDELSKI SA
REGISTERED SHARES 4,312,254 0.81%
Designs and manufactures digital
security products under the
brand name 'Nagra'.
(Cost $3,897,054)

369,200 TEMENOS GROUP AG/1/
REGISTERED SHARES 7,076,738 1.33%
Provides integrated software for
the banking sector.
(Cost $6,572,320)
------------ ------
11,388,992 2.14%

Percent
No. of of Net
Shares Security Value Assets
----------------------------------------------------------------

UTILITY SUPPLIERS -- 6.05%

500 AARE-TESSIN AG FUR ELEKTRIZITAT
(ATEL)
REGISTERED SHARES $ 1,433,486 0.27%
Generates, transmits, and
distributes electricity in
Switzerland and neighboring
countries.
(Cost $1,275,915)

182,150 BKW FMB ENERGIE AG/2/
REGISTERED SHARES 18,949,091 3.57%
Produces electricity using
nuclear, hydroelectric, solar,
biomass and wind energy.
(Cost $9,623,044)

28,409 CENTRALSCHWEIZERISCHE
KRAFTWERKE AG
REGISTERED SHARES 10,029,717 1.89%
Supplies electric power, operates
and maintains distribution
network facilities, constructs and
installs equipment, and offers
consulting services to its clients.
(Cost $8,525,835)

200 MOTOR-COLUMBUS LTD.
BEARER SHARES 1,679,227 0.32%
Generates, transmits and
distributes electricity throughout
Europe.
(Cost $1,665,611)
------------ ------
32,091,521 6.05%

TOTAL COMMON STOCKS
(Cost $213,261,934)* $527,318,406 99.38%

THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------

Schedule of Investments (Unaudited) March 31, 2007
(concluded)

Percent
No. of of Net
Shares Security Value Assets
-----------------------------------------------------------

CALL WARRANTS -- 0.06%

200,000 ABB LTD., EXPIRES 06/15/07 $ 70,446 0.01%

1,100,000 ABB LTD., EXPIRES 12/21/07 288,336 0.05%
-------- ----

TOTAL CALL WARRANTS
(Cost $601,846) 358,782 0.06%

OTC CALL OPTION -- 0.10%
Strike
Price Exp. Date
----- --------

34,400 SWATCH GROUP AG $ 320 08/15/07 535,105 0.10%
-------- ----

TOTAL OPTION
(Cost $511,149) 535,105 0.10%

Percent
No. of of Net
Shares Security Value Assets
----------------------------------------------------------

PUT WARRANTS -- 0.28%

1,250,000 SMIM INDEX, EXPIRES 5/21/07 $ 348,132 0.07%

2,250,000 SWISS MARKET INDEX,
EXPIRES 09/21/07 1,105,832 0.21%
------------ ------

TOTAL PUT WARRANTS
(Cost $1,863,063) 1,453,964 0.28%

TOTAL INVESTMENTS
(Cost $216,237,992) 529,666,257 99.82%

OTHER ASSETS LESS OTHER
LIABILITIES, NET 948,950 0.18%
------------ ------

NET ASSETS $530,615,207 100.00%
============ ======

--------------------------------------------------------------------------------
/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 $314,692,602
GROSS UNREALIZED DEPRECIATION (1,264,337)
------------
NET UNREALIZED APPRECIATION $313,428,265
============

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

THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------

Dividend Reinvestment Plan (Unaudited) (concluded)

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
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.

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, 2007