Swiss Helvetia Fund, Inc.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF
PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-05128
THE SWISS HELVETIA FUND, INC.
1270 Avenue of the Americas, Suite 400
New York, New York 10020
1-888-SWISS-00
Alexandre de Takacsy, President
Hottinger et Cie
3 Place des Bergues
C.P. 395
CH-1201 Geneva
Switzerland
Date of fiscal year end: December 31
Date of reporting period: January 1, 2009 - March 31, 2009
Item 1. Schedule of Investments.
THE SWISS HELVETIA FUND, INC.
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| Schedule of Investments (Unaudited) |
|
March 31, 2009 |
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|
No. of
Shares |
|
Security |
|
Fair
Value |
|
Percent
of Net
Assets |
|
| Common Stocks — 75.24% |
|
|
|
|
|
|
|
|
|
| Biotechnology — 10.88% |
|
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| 124,655 |
|
Actelion, Ltd.1 |
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| |
|
Registered Shares Biotechnology company that develops and markets
synthetic small-molecule drugs against diseases related to the endothelium. (Cost $1,815,945) |
|
$ |
5,695,288 |
|
1.61 |
% |
|
|
|
|
| 488,370 |
|
Addex Pharmaceuticals, Ltd.1,2 |
|
|
|
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|
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| |
|
Registered Shares Bio-pharmaceutical company that discovers,
develops, and markets therapeutic compounds for the treatment of addiction and other neuropsychiatric conditions. (Cost $21,438,554) |
|
|
13,099,938 |
|
3.70 |
% |
|
|
|
|
| 10,000 |
|
Bachem Holding AG |
|
|
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|
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| |
|
Registered Shares Manufactures ingredients for pharmaceuticals,
generic drugs, and research supplies. (Cost $833,329) |
|
|
545,271 |
|
0.15 |
% |
|
|
|
|
| 271,860 |
|
Basilea Pharmaceutica AG1,2 |
|
|
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|
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| |
|
Registered Shares Conducts research into the development of drugs
for the treatment of infectious diseases and dermatological problems. (Cost $30,169,241) |
|
|
16,975,560 |
|
4.80 |
% |
|
|
|
|
| 10,000 |
|
Santhera Pharmaceuticals1 |
|
|
|
|
|
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| |
|
Registered Shares Drug discovery and development
company. (Cost $948,284) |
|
|
413,350 |
|
0.12 |
% |
|
|
|
|
|
|
|
|
|
No. of
Shares |
|
Security |
|
Fair
Value |
|
Percent
of Net
Assets |
|
| |
|
|
|
|
|
|
|
|
|
| Biotechnology — (continued) |
|
|
|
|
|
|
|
|
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| 133,200 |
|
Synosia Therapeutics Holding AG1,3,4,5 |
|
|
|
| |
|
Develops and intends to commercialize innovative products for unmet medical needs in psychiatry and neurology. (Cost $1,740,545) |
|
$ |
1,758,936 |
|
0.50 |
% |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
38,488,343 |
|
10.88 |
% |
|
|
|
| Chemicals — 2.06% |
|
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|
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|
|
|
|
|
|
| 46,577 |
|
Acino Holding AG |
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|
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| |
|
Registered Shares Offers development, registration and
manufacturing of generic and innovative pharmaceuticals using drug delivery technologies. (Cost $8,905,896) |
|
|
6,267,342 |
|
1.77 |
% |
|
|
|
|
| 10,191 |
|
Lonza Group AG |
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|
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| |
|
Registered Shares Produces organic fine chemicals, biocides,
active ingredients and biotechnology products. (Cost $1,048,115) |
|
|
1,008,300 |
|
0.29 |
% |
| |
|
|
|
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|
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| |
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|
7,275,642 |
|
2.06 |
% |
|
|
|
| Construction & Materials — 3.04% |
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| 1,141 |
|
Belimo Holding AG |
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| |
|
Registered Shares World market leader in damper and volume control
actuators for ventilation and air-conditioning equipment. (Cost $222,726) |
|
|
772,675 |
|
0.22 |
% |
THE SWISS HELVETIA FUND, INC.
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| Schedule of Investments (Unaudited) (continued) |
|
March 31, 2009 |
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|
No. of
Shares |
|
Security |
|
Fair
Value |
|
Percent
of Net
Assets |
|
| Common Stocks — (continued) |
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| Construction & Materials — (continued) |
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| 280,000 |
|
Holcim, Ltd.2 |
|
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| |
|
Registered Shares Produces building materials. (Cost $10,553,781) |
|
$ |
9,992,876 |
|
2.82 |
% |
| |
|
|
|
|
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| |
|
|
|
|
10,765,551 |
|
3.04 |
% |
|
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|
| Food & Beverages — 20.97% |
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|
|
|
| 135 |
|
Lindt & Sprungli AG |
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| |
|
Registered Shares Major manufacturer of premium Swiss chocolates.
(Cost $471,624) |
|
|
2,196,473 |
|
0.62 |
% |
|
|
|
|
| 2,127,000 |
|
Nestle SA2 |
|
|
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| |
|
Registered Shares Largest food and beverage processing company in
the world. (Cost $31,732,669) |
|
|
71,981,848 |
|
20.35 |
% |
| |
|
|
|
|
|
|
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| |
|
|
|
|
74,178,321 |
|
20.97 |
% |
|
|
|
| Industrial Goods & Services — 2.61% |
|
|
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|
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| 63,649 |
|
Adecco SA |
|
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| |
|
Registered Shares Supplies personnel and temporary help, and
offers permanent placement services for professionals and specialists in a range of occupations. (Cost $1,990,859) |
|
|
1,991,673 |
|
0.56 |
% |
|
|
|
|
| 6,440 |
|
Inficon Holding AG |
|
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| |
|
Registered Shares Manufactures and markets vacuum instruments used
to monitor and control production processes. Manufactures on-site chemical detection and monitoring system. (Cost $581,617) |
|
|
478,589 |
|
0.13 |
% |
|
|
|
|
|
|
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|
|
No. of
Shares |
|
Security |
|
Fair
Value |
|
Percent
of Net
Assets |
|
| |
|
|
|
|
|
| Industrial Goods & Services — (continued) |
|
|
|
|
|
|
|
| 116,000 |
|
Kuehne + Nagel International AG2 Registered Shares |
|
$ |
6,779,122 |
|
1.92 |
% |
| |
|
Transports freight worldwide. (Cost $6,845,099) |
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| |
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| |
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|
9,249,384 |
|
2.61 |
% |
|
|
| Pharmaceuticals — 24.95% |
|
|
|
|
|
|
|
| 891,300 |
|
Novartis AG2
Registered Shares |
|
|
33,769,143 |
|
9.55 |
% |
| |
|
One of the leading manufacturers of branded and generic pharmaceutical products. Manufactures nutrition products.
(Cost $14,613,905) |
|
|
|
|
|
|
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| 396,600 |
|
Roche Holding AG2
Non-voting equity securities |
|
|
54,482,142 |
|
15.40 |
% |
| |
|
Worldwide pharmaceutical company.
(Cost $12,550,849) |
|
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|
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| |
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|
|
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| |
|
|
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|
88,251,285 |
|
24.95 |
% |
|
|
| Retailers — 1.43% |
|
|
|
|
|
|
|
| 17,550 |
|
Galenica AG
Registered Shares |
|
|
5,074,150 |
|
1.43 |
% |
| |
|
Manufactures and distributes prescription and over-the-counter drugs, toiletries and hygiene products.
(Cost $2,147,767) |
|
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|
|
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| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
5,074,150 |
|
1.43 |
% |
THE SWISS HELVETIA FUND, INC.
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| Schedule of Investments (Unaudited) (continued) |
|
March 31, 2009 |
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|
|
No. of
Shares |
|
Security |
|
Fair
Value |
|
Percent
of Net
Assets |
|
| Common Stocks — (continued) |
|
|
|
|
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|
|
| Technology — 1.90% |
|
|
|
|
|
|
|
| 620,000 |
|
Temenos Group AG1,2
Registered Shares |
|
$ |
6,706,829 |
|
1.90 |
% |
| |
|
Registered Shares Provides integrated software for the banking sector.
(Cost $6,274,525) |
|
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| |
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| |
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|
6,706,829 |
|
1.90 |
% |
|
|
| Utility Suppliers — 7.40% |
|
|
|
|
|
|
|
| 35,023 |
|
Alpiq Holding, Ltd.2 |
|
|
11,296,500 |
|
3.20 |
% |
| |
|
Generates, transmits and distributes electricity throughout Europe.
(Cost $16,949,030) |
|
|
|
|
|
|
|
|
|
|
| 30,000 |
|
BKW FMB Energie AG
Registered Shares |
|
|
2,163,493 |
|
0.61 |
% |
| |
|
Produces electricity using nuclear, hydroelectric, solar, biomass and wind energy.
(Cost $1,434,500) |
|
|
|
|
|
|
|
|
|
|
| 16,095 |
|
Centralschweizerische Kraftwerke AG
Registered Shares |
|
|
5,378,919 |
|
1.52 |
% |
| |
|
Supplies electric power, operates and maintains distribution network facilities, constructs and installs equipment, and offers consulting services to its clients. (Cost $4,251,746) |
|
|
|
|
|
|
|
|
|
|
| 1,500 |
|
Electrizitaets-Gesellschaft Laufenburg AG
Bearer Shares |
|
|
1,213,667 |
|
0.34 |
% |
| |
|
Operates nuclear and hydroelectric generating plants and sells excess power throughout Europe. (Cost $1,970,882) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
No. of
Shares |
|
Security |
|
Fair
Value |
|
Percent
of Net
Assets |
|
| |
|
|
|
|
|
|
|
|
| Utility Suppliers — (continued) |
|
|
|
|
|
|
|
| 5,000 |
|
Raetia Energie AG
Participation Certificate |
|
$ |
1,187,283 |
|
0.34 |
% |
| |
|
Generates and distributes electric power from its own hydroelectric stations, as well as from outside nuclear power suppliers of electric power.
(Cost $2,035,541) |
|
|
|
|
|
|
|
|
|
|
| 3,110 |
|
Romande Energie Holding SA Registered Shares |
|
|
4,923,267 |
|
1.39 |
% |
| |
|
Distributes electricity in the Canton of Vaud, provides repair and other electrical services to its customers. (Cost $7,533,642) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
26,163,129 |
|
7.40 |
% |
|
|
|
|
| |
|
Total Common Stocks
(Cost $189,060,671)* |
|
|
266,152,634 |
|
75.24 |
% |
|
|
| Private Equity Funds — 1.06% |
|
|
|
|
|
|
|
| |
|
Aravis Venture II - Limited Partnership (802,760 Euro)1,3,4,5 |
|
|
1,065,827 |
|
0.30 |
% |
|
|
|
|
| |
|
Zurmont Madison Private Equity, Limited Partnership (3,994,436 CHF)1,3,4,5 |
|
|
2,679,678 |
|
0.76 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Total Private Equity Funds
(Cost $4,893,108) |
|
|
3,745,505 |
|
1.06 |
% |
|
|
| Treasury Bill — 4.97% |
|
|
|
|
|
|
|
| 20,000,000 |
|
Swiss T-Bill, (0.12), 6/11/092 |
|
|
17,589,376 |
|
4.97 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Total Treasury Bills (Cost $17,333,969) |
|
|
17,589,376 |
|
4.97 |
% |
THE SWISS HELVETIA FUND, INC.
|
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|
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|
| Schedule of Investments (Unaudited) (continued) |
|
March 31, 2009 |
|
|
|
|
|
|
|
|
|
No. of
Shares/
Units |
|
Security |
|
Fair
Value |
|
Percent
of Net
Assets |
|
| Call Warrant — 0.30% |
|
|
|
|
|
|
|
|
|
|
| 8,000,000 |
|
SMIM Call Expires 09/18/09 at 950.00 CHF |
|
$ |
1,055,363 |
|
0.30 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Total Call Warrants (Cost $1,779,755) |
|
|
1,055,363 |
|
0.30 |
% |
| Put Warrants — 2.86% |
|
|
|
|
|
|
|
|
|
|
| 1,500,000 |
|
ABB Expires 06/19/09 at 12.50 CHF |
|
|
654,721 |
|
0.19 |
% |
|
|
|
|
| 525,000 |
|
ABB Expires 06/19/09 at 12.50 CHF |
|
|
229,152 |
|
0.07 |
% |
|
|
|
|
| 2,800,000 |
|
Adecco Expires 07/17/09 at 32.00 CHF |
|
|
591,003 |
|
0.17 |
% |
|
|
|
|
| 5,900,000 |
|
Cie Fin R Expires 06/19/09 at 16.00 CHF |
|
|
719,177 |
|
0.20 |
% |
|
|
|
|
| 9,500,000 |
|
Novartis Expires 09/18/09 at 39.00 CHF |
|
|
1,074,447 |
|
0.30 |
% |
|
|
|
|
| 10,000,000 |
|
SMI Expires 06/19/09 at 4,800.00 CHF |
|
|
1,617,343 |
|
0.46 |
% |
|
|
|
|
| 13,000,000 |
|
SMI Expires 06/19/09 at 4,100.00 CHF |
|
|
738,578 |
|
0.21 |
% |
|
|
|
|
| 6,900,000 |
|
SMI Expires 09/18/09 at 4,600.00 CHF |
|
|
1,345,957 |
|
0.38 |
% |
|
|
|
|
| 12,850,000 |
|
SMI Expires 12/15/09 at 4,200.00 CHF |
|
|
2,203,729 |
|
0.62 |
% |
|
|
|
|
| 5,400,000 |
|
Societe Generale de Surveillance Expires 06/19/09 at 1,000.00 CHF |
|
|
292,546 |
|
0.08 |
% |
|
|
|
|
| 12,950,000 |
|
Swiss Life Expires 06/19/09 at 48.00 CHF |
|
|
641,207 |
|
0.18 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Total Put Warrants
(Cost $21,189,187) |
|
|
10,107,860 |
|
2.86 |
% |
|
|
|
|
| |
|
Total Investments
(Cost $234,256,690)* |
|
|
298,650,738 |
|
84.43 |
% |
|
|
|
|
| |
|
Other Assets less Other Liabilities, net |
|
|
55,086,221 |
|
15.57 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Net Assets |
|
$ |
353,736,959 |
|
100.0 |
% |
| |
|
|
|
|
|
|
|
|
| 1 |
|
Non-income producing security. |
| 2 |
|
One of the ten largest portfolio holdings. |
| 3 |
|
Security priced at Fair Value as determined by the Board’s Pricing Committee. At the end of the period, the value of these
securities amounted to $5,504,441 or 1.56% of the Fund’s net assets. |
| 4 |
|
Restricted security not registered under the Securities Act of 1933, as amended, other than Rule 144A securities. At
the end of the period, the value of these securities amounted to $5,504,441 or 1.56% of the Fund’s net assets. Additional information on the restricted securities is as follows: |
THE SWISS HELVETIA FUND, INC.
|
|
|
|
|
| Schedule of Investments (Unaudited) (continued) |
|
March 31, 2009 |
|
|
|
|
|
|
| Securlty
|
|
Acquisition Date
|
|
Acquisition Cost
|
| Aravis Venture II, LP |
|
July 31, 2007 |
|
$ |
205,328 |
| Aravis Venture II, LP |
|
February 21, 2008 |
|
|
399,343 |
| Aravis Venture II, LP |
|
August 4, 2008 |
|
|
81,013 |
| Aravis Venture II, LP |
|
February 16, 2009 |
|
|
427,125 |
| Zurmont Madrson Private Equity, LP |
|
September 13, 2007 |
|
|
121,692 |
| Zurmont Madison Prlvate Equity, LP |
|
December 17, 2007 |
|
|
109,210 |
| Zurmont Madson Private Equity, LP |
|
February 28, 2008 |
|
|
3,225,332 |
| Zurmont Madison Private Equity, LP |
|
April 14, 2008 |
|
|
169,431 |
| Zurmont Madson Private Equity, LP |
|
June 26, 2008 |
|
|
154,642 |
| Synosia Therapeutics Holdings AG |
|
October 17, 2008 |
|
|
882,067 |
| |
|
|
|
|
|
| |
|
|
|
$ |
5,775,183 |
| |
|
|
|
|
|
| 5 |
|
Investment made through a private equity transaction. |
| * |
|
Cost for Federal income tax purposes is $235,157,744 and net unrealized appreciation (depreciation) consists of: |
|
|
|
|
|
| Gross Unrealized Appreciation |
|
$ |
112,083,539 |
|
| Gross Unrealized Depreciation |
|
|
(48,590,545 |
) |
| |
|
|
|
|
| Net Unrealized Appreciation |
|
$ |
63,492,994 |
|
| |
|
|
|
|
THE SWISS HELVETIA FUND, INC.
|
|
|
|
|
| Schedule of Investments (Unaudited) (concluded) |
|
March 31, 2009 |
In September 2006, the Financial Accounting Standards
Board issued Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“SFAS 157”.) This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair
value, and requires additional disclosures about fair value measurements. SFAS 157 applies to fair value measurements already required or permitted by existing standards. SFAS 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007, and interim periods within those fiscal years. The changes to current GAAP from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the
expanded disclosures about fair value measurements.
One key component of the
implementation of SFAS 157 includes the development of a three-tier fair value hierarchy. The basis of the tiers is dependant upon the various “inputs” used to determine the value of the Fund’s investments. These inputs are summarized
in the three broad levels listed below:
|
|
|
| Level 1— |
|
quoted prices in active markets for identical assets |
| Level 2— |
|
other significant observable inputs (including quoted prices of similar securities, interest rates, prepayments speeds, credit risk, etc.) |
| Level 3— |
|
significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodology used for valuing
securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s net
assets as of March 31, 2009:
|
|
|
|
| Valuation Inputs
|
|
Investments In Securities
|
| Level 1—Quoted Prices |
|
$ |
281,983,074 |
| Level 2—Other Significant Observable Inputs |
|
|
11,163,223 |
| Level 3—Significant Unobservable |
|
|
5,504,441 |
| |
|
|
|
| Total Investments |
|
$ |
298,650,738 |
| |
|
|
|
The following is a reconciliation of Level 3
assets (at either the beginning or the ending of the period) for which significant unobservable inputs were used to determine fair value.
|
|
|
|
|
| |
|
Investments In Securities
|
|
| Balance as of 12/31/2008 |
|
$ |
4,458,216 |
|
| Change in Unrealized Appreciation / (Depreciation) |
|
|
(239,379 |
) |
| Net Purchase / (Sales) |
|
|
1,285,604 |
|
| |
|
|
|
|
| Balance as of 3/31/2009 |
|
$ |
5,504,441 |
|
| |
|
|
|
|
THE PORTFOLIO OF INVESTMENTS SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL STATEMENTS AND NOTES TO FINANCIAL STATEMENTS WHICH ARE INCLUDED IN THE FUND’S AUDITED
ANNUAL REPORT OR SEMI-ANNUAL REPORT. THESE REPORTS INCLUDE ADDITIONAL INFORMATION ABOUT THE FUND’S SECURITY VALUATION POLICIES AND ABOUT CERTAIN SECURITY TYPES INVESTED IN BY THE FUND.
Item 2. Controls and Procedures.
| (a) |
The registrant’s President and Treasurer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940 (the “Act”)) as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that
information required to be disclosed by the registrant on Form N-Q is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. |
| (b) |
There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant’s
most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 3. Exhibits.
Certifications pursuant to Rule 30a-2(a)
are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
|
|
|
|
|
| (Registrant) |
|
The Swiss Helvetia Fund, Inc. |
|
|
|
|
|
| By (Signature and Title)* |
|
/s/ Rudolf Millisits |
|
|
|
|
Rudolf Millisits, Chief Executive Officer |
|
|
|
|
|
| Date 5/28/09 |
|
|
|
|
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act
of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
|
|
|
|
|
| By (Signature and Title)* |
|
/s/ Rudolf Millisits |
|
|
|
|
Rudolf Millisits, Chief Executive Officer |
|
|
|
|
|
| Date 5/28/09 |
|
|
|
|
|
|
|
| By (Signature and Title)* |
|
/s/ Rudolf Millisits |
|
|
|
|
Rudolf Millisits, Chief Financial Officer |
|
|
|
|
|
| Date 5/28/09 |
|
|
|
|