Edgar Filing: SWISS HELVETIA FUND, INC.

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

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.*...........
Director
-------------------------------------------------------------------------------
*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

Administrator
Citigroup Fund Services, LLC

Custodian
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
email: swz@swz.com

Website Address
www.swz.com

The Fund

The Swiss Helvetia Fund, Inc. is a non-diversified, closed-end investment
company whose objective is to seek long-term capital appreciation through
investment in equity and equity-linked securities of Swiss companies. The Fund,
listed on the New York Stock Exchange under the symbol "SWZ," is managed by
Hottinger Capital Corp.

Net Asset Value is calculated daily by 6:15 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.
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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.
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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
management.

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
yield

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.

Currencies
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.
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Letter to Stockholders (continued)

----------------------------------------------------------------------------------------------------------------
Peer Group/Indices Performance Comparison in Swiss Francs
----------------------------------------------------------------------------------------------------------------
Cumulative
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
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 (concluded)

---------------------------------------------------------
Year to Date
December 31, 2005
Through
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.

Sincerely,

/s/ Samuel B. Witt III

Samuel B. Witt III, Esq.
Chairman

/s/ Rodolphe Hottinger

Rodolphe Hottinger
President and Chief Executive Officer

March 31st, 2006

THE SWISS HELVETIA FUND, INC.
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Schedule of Investments (Unaudited) March 31, 2006

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

Common Stocks -- 98.28%

Banks -- 15.94%

1,343 Bank
Sarasin &
Cie AG
Registered
Shares $ 3,596,817 0.76%
Offers
private
banking,
asset
management,
investment
advisory,
and
institutional
banking
services.
(Cost
$3,019,630)

428,000 Credit
Suisse
Group/2/
Registered
Shares 23,956,996 5.08%
A global
diversified
financial
service
company
with large
activity in
private
banking,
investment
banking,
asset
management
and
insurance
service.
(Cost
$14,071,732)

435,000 UBS AG/2/
Registered
Shares 47,665,761 10.10%
A global
diversified
financial
service
company
with large
activity in
private
banking,
investment
banking,
and asset
management.
(Cost
$7,578,949)
------------ -----
75,219,574 15.94%

Basic Resources --
3.43%

101,136 Precious
Woods
Holding
AG/1/
Bearer
Shares 8,938,446 1.89%
Through
subsidiaries,
manages
tropical
forests
using
ecologically
sustainable
forest
management
methods.
Harvests
tropical
trees and
processes
them into
lumber.
(Cost
$9,076,879)

Percent
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
endothelium.
(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
chemicals.
(Cost $3,638,959)

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

Schedule of Investments (Unaudited) March 31, 2006
(continued)

Percent
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
flowers.
(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
services.
(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
world.
(Cost $12,107,256)
------------ -----
65,786,051 13.94%

Percent
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
world.
(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
equipment.
(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
(continued)

Percent
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
reinsurers.
(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
products.
(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%

Percent
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
boutiques.
(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
company.
(Cost $8,467,363)
------------ -----
126,123,503 26.73%

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

Schedule of Investments (Unaudited) March 31, 2006
(concluded)

Percent
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
Holding/1/
Registered Shares 6,829,322 1.45%
Develops equipment and systems
to view and interact with digital
TV broadcast through cable,
satellite, and telecommunication
networks.
(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
software.
(Cost $219,768)
------------ ----
7,396,627 1.57%

Percent
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
Kraftwerke
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
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 val-

THE SWISS HELVETIA FUND, INC.
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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
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
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Helvetia
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Fund, Inc.
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www.swz.com

Quarterly Report
For the
Period Ended March 31, 2006