Edgar Filing: SWISS HELVETIA FUND, INC.

As filed with the Securities and Exchange Commission on March 9, 2006

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-05128

THE SWISS HELVETIA FUND, INC.
1270 Avenue of the Americas, Suite 400
New York, New York 10020
1-888-SWISS-00

Rodolphe E. Hottinger, President
Hottinger et Cie
3 Place des Bergues
C.P. 395
CH-1201 Geneva
Switzerland

Date of fiscal year end: December 31, 2005

Date of reporting period: January 1, 2005 - December 31, 2005

Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.

ITEM 1. REPORT TO STOCKHOLDERS

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

Directors and Officers

Paul Hottinguer 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
Alexandre de Takacsy VICE PRESIDENT
DIRECTOR Edward J. Veilleux
Claude Frey VICE PRESIDENT
DIRECTOR SECRETARY
Michael Kraynak, Jr. Leslie K. Klenk
DIRECTOR ASSISTANT SECRETARY
Claude Mosseri-Marlio* Frederick Skillin
DIRECTOR ASSISTANT TREASURER
Didier Pineau-Valencienne* Sara M. Morris
DIRECTOR ASSISTANT TREASURER
Stephen K. West, Esq. Peter R. Guarino, Esq.
DIRECTOR CHIEF COMPLIANCE OFFICER
Samuel B. Witt III, 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.

The Fund had a Morningstar overall rating of three stars as of December 31,
2005. Of course, past performance is no guarantee of future results. See the
footnote on page 3 for more information.

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

GLOBAL MARKET OVERVIEW
The benign interest rate environment and tame inflation, combined with
strong growth in India and China and sustained consumer spending in the U.S.,
were the main drivers for the strong global equity showing in 2005. Currencies
were influenced by interest rate expectations, and in quite a few markets
strong performance in local currencies was partially lost when translated into
U.S. dollars. As was the case in 2004, small- and mid-cap stocks outperformed
large-cap stocks; emerging markets outperformed developed markets; and value
outperformed growth. The energy and raw material sectors continued to benefit
from the strength of the emerging market economies.

SWISS MARKET REVIEW AND FUND PERFORMANCE
The Swiss market was among the strongest in Europe, and Europe had better
performance in U.S. dollar terms than the United States. Factors behind the
strength in the Swiss market included a more accommodative monetary policy,
better exposure to emerging markets and the continued trend towards more
business combinations. Mergers and acquisitions activity has just started in
Europe with the establishment of a pan-European debt market to finance buy-out
groups. Political setbacks (such as the EU constitutional referendum) have
largely been ignored by the Swiss and European markets. International money has
continued its significant flows into Europe and Switzerland in anticipation of
improvement in the economic landscape, in valuations, and in earnings growth.
This compares favorably with the U.S. market which is thought by many to be
plateauing or deteriorating.

As investor outlook becomes as global as the economy, investors are
increasingly paying less attention to the national location of particular
companies. Valuations across borders have converged strongly. Switzerland
out-performed the rest of Europe, thanks to the worldwide dominance of its
large corporations such as UBS AG, Nestle AG, Novartis AG and Roche AG. Nestle
and UBS are harvesting the benefits of years of incisive investments and
restructuring programs. Swiss pharmaceutical companies continue to benefit from
a strong pipeline of new products and much lower exposure to patent expirations
than their peers. In addition, in the mid-cap segment several companies have
emerged as global leaders. These include Kuehne & Nagel International AG in
trade forwarding and logistics, Sika AG in specialty chemicals and SGS Societe
Generale de Surveillance Holding SA in industrial inspections, testing and
verification services. As we have noted in past reports; Swiss companies, faced
with a small domestic market, survived by expanding internationally early in
their history. This put them in position to benefit from the current trend
toward globalization.

The Fund clearly outperformed the Standard and Poor's 500 Index as measured
in U.S. dollars, despite an appreciation of the U.S. dollar versus the Swiss
franc, but underperformed the Swiss Performance Index (SPI) by 2.41% in Swiss
francs. This is mostly due to the large increase in stock

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

Letter to Stockholders (continued)

prices of the largest companies in the SPI since September. The Fund
historically, and for regulatory reasons, is less concentrated than the SPI in
the top five companies.

As of December 31, 2005, the Fund had a rating of three stars from
Morningstar.*

*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
December 31, 2005, there were 9 funds in the Fund's asset category rated by
Morningstar.

SWISS MARKET NEWS
Swiss Reinsurance Company has agreed to acquire GE Insurance Solutions, the
fifth largest worldwide reinsurer, from General Electric Company. Once this
acquisition receives regulatory and shareholder approval, Swiss Reinsurance
Company will become the world's largest reinsurer, ahead of Munich RE.

Adecco SA is no longer co-chaired as Philippe Floriel-Destezet resigned as
a co-chairman. Klaus Jacobs, who shared the role of chairman with
Mr. Floriel-Destezet, is taking over as sole chairman and interim CEO. At the
end of December, Jacobs Holding owned 22% of Adecco.

In December, the U.S. Bankruptcy Court in Pittsburgh, Pennsylvania issued a
plan that would settle one of ABB Ltd.'s biggest asbestos liabilities. Although
this plan must be affirmed by the District Court and not be appealed, it is an
important step towards final resolution of the asbestos issue.

Crucell, a Dutch biotechnology company, made a bid in December for Berna
Biotech AG, the Swiss vaccine company.

SWISS ECONOMIC NOTES
On December 15, 2005, the Swiss National Bank (SNB), strictly following the
European Central Bank (ECB) monetary policy, increased the target range for the
three-month LIBOR by 0.25% to 0.50-1.50% and intends to hold the rate in the
middle of the target range for the time being.

By increasing the rates, SNB responded to the positive signs of an economic
recovery. The third quarter exceeded the previous quarter by an annualized
figure of 4.3%. While this was mainly driven by the export sector, SNB noted
that the domestic economy seems to be gradually picking up as well. For 2005,
SNB increased its forecasts for GDP growth from 1% to 1.5%, and for 2006 it
forecasts a growth rate slightly higher than 2%. With three-month LIBOR at 1%,
SNB forecasts inflation rates to be at 0.8% and 1.2%, respectively, for 2006
and 2007. This will continue an expansionary monetary policy.

The unemployment rate decreased in October from 3.8% to 3.7%. SNB expects a
more pronounced recovery in the labor market, as it sees signs of a recovery in
corporate investments in the third quarter of 2005.

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

Letter to Stockholders (continued)

The interest rate on the 10-year confederation bond finished the year at
1.96%, after reaching a peak of 2.28% in the beginning of November.

CURRENCIES
The increase in the interest rate differential in the context of the global
savings glut has been a short-term driver for the U.S. dollar, which
appreciated 15.90% against the Swiss franc. The Swiss franc was almost flat
against the euro, which is explained by the monetary policies of SNB and ECB.
The appreciation of the U.S. dollar could be challenged as ECB and, in its
steps, SNB started to increase rates in the last quarter of 2005.

------------------------------------------------------------------------------------------------------------------
PEER GROUP/INDICES PERFORMANCE COMPARISON IN SWISS FRANCS/1/
------------------------------------------------------------------------------------------------------------------
TOTAL RETURN FOR THE YEAR ENDED DECEMBER 31, CUMULATIVE
-------------------------------- ------ -------------------------------------------------------- PERFORMANCE
2005 2004 2003 2002 2001 2000 1999 1998 1997 12/31/96-12/31/05
-------------------------------- ------ ----- ------ ------- ------- ------ ------ ------ ------ -----------------

SWISS HELVETIA FUND 33.20% 7.75% 22.54% -20.40% -22.91% 14.06% 14.70% 15.57% 53.99% 151.27%
Swiss Performance Index (SPI) 35.61% 6.89% 22.06% -25.95% -22.03% 11.91% 11.69% 15.36% 55.19% 128.59%
Swiss Market Index (SMI) 33.21% 3.74% 18.51% -27.84% -21.11% 7.47% 5.71% 14.28% 58.93% 92.37%
Switzerland iShares/2/ (Formerly
called Webs Switzerland) 32.45% 6.34% 19.14% -26.23% -23.12% 7.75% 12.22% 11.74% 47.79% 90.04%
CS Equity Swiss Blue Chips/3,7/ 32.27% 2.75% 18.13% -28.75% -22.12% 10.97% 7.57% 14.21% 59.90% 94.21%
UBS (CH) Equity Fund/4,7/ 33.50% 5.00% 18.14% -26.02% -22.04% 7.42% 6.43% 12.75% 55.94% 91.99%
Pictet (CH)--Swiss Equities/5,7/ 37.06% 7.05% 20.10% -27.93% -22.35% 7.34% 9.38% 11.05% 55.65% 100.13%
Saraswiss (Bank Sarasin)/6,7/ 33.05% 2.93% 19.64% -28.51% -24.45% 9.72% 7.10% 14.41% 53.57% 82.71%

/1/ PERFORMANCE OF FUNDS IS BASED ON CHANGES IN THE FUND'S NET ASSET VALUE 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/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
ISHARES 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 AND 12/31/04 = 1.14, 12/31/05=1.32.
/3/ THIS FUND INVESTS IN EQUITIES ISSUED BY LEADING SWISS COMPANIES. STOCK
SELECTION IS BASED ON ECONOMIC, SECTOR AND COMPANY ANALYSES. PREFERENCE IS
GIVEN TO LARGE-CAP COMPANIES.
/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 SWISS COMPANIES LISTED ON THE SWISS STOCK
EXCHANGE (SWX) 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 ENDED
DECEMBER 31, 2005
--------------------------------------- -----------------

PERFORMANCE IN SWISS FRANCS
Swiss Performance Index (SPI) 35.61%
Swiss Helvetia Fund
Based on Net Asset Value 33.20%
CHANGE IN U. S. DOLLAR VS. SWISS FRANC 15.90%
SWISS HELVETIA FUND PERFORMANCE IN U.S. DOLLARS
Based on Net Asset Value 14.92%
Based on Market Price 13.11%
S & P 500 Index 4.91%
MSCI EAFE Index 13.54%
Lipper European Fund Index (10 Largest) 11.84%
Lipper European Fund Universe Average 12.29%

OUTLOOK/STRATEGY
VALUATION
Valuation is not expected to be a driver this year for either stocks or
bonds. Price earnings multiples for stocks are in line with historical averages
but on the high side when adjusted for the economic cycle (normalized earnings
versus current peak earnings).

While equity risk premiums are high relative to bonds, fixed income
instruments exhibit very low nominal yields and tight credit spreads (corporate
bonds and emerging market debt).

Valuations should not precipitate a severe correction in the market as long
as risk free rates stay low on the long end of the curve.

INTEREST RATES
After enjoying a period of very strong performance, Europe (not including
the United Kingdom) and the emerging markets are entering a cycle of interest
rate tightening while, in the United States, the Federal Reserve is expected to
pause soon. This scenario would support the euro and the Swiss franc and be
detrimental to the U.S. dollar.

The U.S. yield curve is inverted, which has often preceded a recession, but
this time around it could only be a sign of an economic slowdown. Technical
factors such as the need for emerging market economies to recycle their
surpluses and the pressure for pension funds to reform by building a strong
incentive to closely match assets and liabilities, continue to create strong
demand for long term debt instruments.

On the other side, while inflation expectations are dampened by low
readings on the Consumer Price Index, the Index does not capture most of the
inflation occurring in financial and real estate assets.

The slow progression of real wages (an impact of globalization) and the
moderate progression in the price of goods and services is keeping central
banks accommodative.

RISKS TO MONITOR
The geo-political situation and the potential avian flu pandemic are
external risk factors to assess. A sharp rise in U.S. long-term rates and a
slowdown in U.S. consumer

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

Letter to Stockholders (concluded)

spending (as inflation gives way to more stability or to deflation) are the
most obvious threats to the markets. Globalization will continue to bring
benefits and mitigate the impact of imbalances in the economic aggregates of
different countries. The main risk here is a slowdown in this globalization
process and the beginning of trade sanctions against emerging markets exporters.

STRATEGY
For the Swiss market, Management expects strong volatility in financials
and in economically-sensitive stocks, especially in the small and mid-cap
areas. To counter that development the Fund's investments are directed more
towards defensive large-cap stocks. Management will, however, take advantage of
any volatility to buy quality financial, cyclical and growth stocks at lower
levels.

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. During the year ended December 31, 2005, the
Fund repurchased and retired 422,100 shares at an average price of $15.56 per
share (including brokerage commissions) and a weighted average discount of
13.80%. These repurchases, which had a total cost of $6,568,476, resulted in an
increase of $1,044,349 to the Fund's net asset value.

The Board has authorized the Fund to repurchase up to 1,000,000 shares
during 2006.

Sincerely,

/s/ Paul Hottinguer

Paul Hottinguer
CHAIRMAN

/s/ Rodolphe Hottinger

Rodolphe Hottinger
PRESIDENT AND CHIEF EXECUTIVE OFFICER

December 31, 2005

THE SWISS HELVETIA FUND, INC.
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Certain Information Concerning Directors (Unaudited)

The following tables set forth certain information about each person
currently serving as a Director of the Fund, including his beneficial ownership
of Common Stock of the Fund. All information presented in the tables is as of
December 31, 2005. Information is presented separately with respect to
Directors who have been determined to be non-interested Directors and Directors
who are interested Directors under the Investment Company Act of 1940, as
amended.

CLASS I INTERESTED DIRECTOR
(TERM WILL EXPIRE IN 2007)
-------------------------------------------------------------------------------------------------------------------------
NAME, POSITION(S) TERM OF OFFICE PRINCIPAL OTHER DIRECTORSHIPS SHARES AND DOLLAR
ADDRESS WITH FUND AND LENGTH OF OCCUPATION(S) HELD BY DIRECTOR RANGE OF
& AGE TIME SERVED DURING AT LEAST THE PAST FIVE YEARS COMMON STOCK
BENEFICIALLY
OWNED AT
DEC. 31, 2005/1/
-------------------------------------------------------------------------------------------------------------------------

Mr. Alexandre Director Director from Senior Advisor to the Hottinger Group None 735
de Takacsy/2/ 1987 to and President of Hottinger U.S., Inc. $1-$10,000
Financiere February 8, until December 2004; Vice Chairman of
Hottinguer 1994 and since the Board, Director, President and
43, rue Taitbout September 17, Secretary: Hottinger Capital Corp.;
75009 Paris 1998. Retired Senior Executive: Royal Bank of
France Canada.

Age 76
-------------------------------------------------------------------------------------------------------------------------

THE SWISS HELVETIA FUND, INC.
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Certain Information Concerning Directors (Unaudited) (continued)

CLASS I NON-INTERESTED DIRECTOR
(TERM WILL EXPIRE IN 2007)
---------------------------------------------------------------------------------------------------------------------
NAME, POSITION(S) TERM OF OFFICE PRINCIPAL OTHER DIRECTORSHIPS
ADDRESS WITH FUND AND LENGTH OF OCCUPATION(S) HELD BY DIRECTOR
& AGE TIME SERVED DURING AT LEAST THE PAST FIVE YEARS

----------------------------------------------------------------------------------------------------------------------

Mr. Jean-Marc Director Director since Ambassador of Switzerland, retired. None
Boillat 2005; Member
Les Gradas of the
47120 Governance/
Villeneuve de Nominating
Duras Committee
France since 2005.

Age 64
----------------------------------------------------------------------------------------------------------------------
Mr. Claude W. Director; Director since President of the Swiss Parliament from Chairman of the Board: Infra
Frey Member of the 1995. 1994 to 1995; President of the Swiss Tunnel SA (Marin); Beton Frais
Clos 108 Governance/ Police Academy (Neuchatel) from 1996 SA (Marin); Member of the
2012 Auvernier Nominating to 2003; Member of the Swiss Parliament Board: Dexia Banque Privee
Switzerland Committee from 1979 to 2003; Parliamentary (Suisse), Zurich; SCCM SA
since 2002. Assembly of the Council of Europe (Crans-Montana); President of
Age 62 (Strasbourg) from 1996 to 2004; the Steering Committee of
Executive Board of the "North-South InterNutrition (Zurich);
Centre" (Lisbon) since 1999; President of Chairman of the Executive
the National Committee for Foreign Board of the "North-South
Affairs from 2001 to 2003 (Vice President Centre" (Lisbon); Chairman of
from 1991 to 2001); Chairman of the the Federal Committee for
Board: Berun Frais SA (Maria) since 2002; Employee Pension Plans
Federation of Swiss Food Industries (Berne).
(Berne) from 1991 to 2001; Association of
Swiss Chocolate Manufacturers (Berne)
from 1991 to 2000; Swiss Association of
Biscuits and Sugar Confectioners
Industries (Berne) from 1991 to 2000;
Vice Chairman of the Board: Federation
of Swiss Employers' Association (Zurich)
from 1997 to 2001.
----------------------------------------------------------------------------------------------------------------------
Mr. Eric R. Director; Vice Director since Chairman of the Board of Societe Vice Chairman of the Board of
Gabus Chairman 1987. Neuchateloise de Presse and L'Express Fondation Denis de
St. Dominique (Non-Officer) Communication (Neuchatel) until 2002. Rougement pour l'Europe,
Villa since 1994; Geneva since 1980; Deputy
Chemin de Chairman of Chairman: CSFB (London) to
Carnaches 17 the 1986; Executive Vice President
1815 Clarens/ Governance/ of Nestle until 1982.
VD Nominating
Switzerland Committee
since 2002 and
Age 78 Member of the
Litigation
Committee
from 2001 to
2003.
----------------------------------------------------------------------------------------------------------------------

------------------
PRINCIPAL SHARES AND DOLLAR
OCCUPATION(S) RANGE OF
DURING AT LEAST THE PAST FIVE YEARS COMMON STOCK
BENEFICIALLY
OWNED AT
DEC. 31, 2005/1/
-----------------------------------------------------------

Ambassador of Switzerland, retired. None

-----------------------------------------------------------
President of the Swiss Parliament from 1,814
1994 to 1995; President of the Swiss $10,001-$50,000
Police Academy (Neuchatel) from 1996
to 2003; Member of the Swiss Parliament
from 1979 to 2003; Parliamentary
Assembly of the Council of Europe
(Strasbourg) from 1996 to 2004;
Executive Board of the "North-South
Centre" (Lisbon) since 1999; President of
the National Committee for Foreign
Affairs from 2001 to 2003 (Vice President
from 1991 to 2001); Chairman of the
Board: Berun Frais SA (Maria) since 2002;
Federation of Swiss Food Industries
(Berne) from 1991 to 2001; Association of
Swiss Chocolate Manufacturers (Berne)
from 1991 to 2000; Swiss Association of
Biscuits and Sugar Confectioners
Industries (Berne) from 1991 to 2000;
Vice Chairman of the Board: Federation
of Swiss Employers' Association (Zurich)
from 1997 to 2001.
-----------------------------------------------------------
Chairman of the Board of Societe 1,000
Neuchateloise de Presse and L'Express $10,001-$50,000
Communication (Neuchatel) until 2002.

-----------------------------------------------------------

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

Certain Information Concerning Directors (Unaudited) (continued)

CLASS II NON-INTERESTED DIRECTOR
(TERM WILL EXPIRE IN 2008)
--------------------------------------------------------------------------------------------------------------------------
NAME, POSITION(S) TERM OF OFFICE PRINCIPAL OTHER DIRECTORSHIPS
ADDRESS WITH FUND AND LENGTH OF OCCUPATION(S) HELD BY DIRECTOR
& AGE TIME SERVED DURING AT LEAST THE PAST FIVE YEARS

---------------------------------------------------------------------------------------------------------------------------

Paul R. Director; Director since Of Counsel of Salans (law firm) since Chairman of the Board and
Brenner, Esq. Member of the December July 1996; Paul R. Brenner, Attorney-at- Director: Harry Limited
25 Moore Road Governance/ 2002. Law since June 1993; Counsel to the (Private Investment Company
Bronxville, Nominating Fund from 1994 to 2002; Partner: Kelly ("P.I.C.")); MFGAT, Inc.
New York Committee Drye & Warren LLP (law firm) from 1976 (P.I.C.); Strelsau, Inc. (P.I.C.);
10708 since 2005; and to 1993. MG Management Corp.
Secretary from (P.I.C.); Marango Capital
Age 63 1987 to 2002. Management Corp. (P.I.C.);
Quercus Foundation, Inc.
(Private Foundation); and
Director and Senior Trustee of
The Louis Calder Foundation
(Private Foundation).
---------------------------------------------------------------------------------------------------------------------------
Mr. Didier Director; Director since Honorary Chairman: Schneider Electric Director: Fleury Michon
Pineau- Member of 1999. SA (industrial conglomerate) since 1999; (France); AFEP (France);
Valencienne the Audit Chairman of the Board and CEO of Wendel Investissements
c/o Schneider Committee Schneider Electric SA (industrial (formerly Compagnie Generale
Electric SA since 1999; the conglomerate) from 1981 until February d'Industrie et de Participations
64 Rue de Governance/ 1999; Chairman of AFEP from 1999 to (CGIP)) from 1996 to 2005;
Miromesnil Nominating 2001; Vice Chairman of Credit Suisse Member of the Board of Pernod
75008 Paris Committee First Boston (Europe) Limited Ricard since 2003; Member of
France since 2002 and (investment banking) from 1999 to 2002; the Supervisory Board of AXA-
the Litigation Senior Advisor of Credit Suisse First UAP (France) (insurance) from
Age 74 Committee Boston (Europe) Limited since 2002; 1998 to March 2001; Member of
from 2001 to Partner, SAGARD Private Equity Advisory Board of Booz Allen
2003. Partners (France). & Hamilton (USA) from 1997
to December 30, 2002; Member
of LaGardere (France) (holding
company).
---------------------------------------------------------------------------------------------------------------------------
Samuel B. Witt, Director; Director since Senior Vice President and General Trustee: The Williamsburg
III, Esq. Chairman of 1987. Counsel: Stateside Associates, Inc. from Investment Trust (registered
302 Clovelly the Audit August 1993 to May 30, 2004; Senior investment company).
Road Committee Consultant to Stateside Associates, Inc.
Richmond, VA since 1993 and from June 1 to December 31, 2004;
23221 of the Samuel B. Witt, III, Attorney-at-Law,
Litigation since August 1993.
Age 70 Committee
from 2001 to
2003; and
Member of the
Governance/
Nominating
Committee
since 2002.
---------------------------------------------------------------------------------------------------------------------------

Of Counsel of Salans (law firm) since 9,177
July 1996; Paul R. Brenner, Attorney-at- over $100,000
Law since June 1993; Counsel to the
Fund from 1994 to 2002; Partner: Kelly
Drye & Warren LLP (law firm) from 1976
to 1993.

----------------------------------------------------------
Honorary Chairman: Schneider Electric 2,303
SA (industrial conglomerate) since 1999; $10,001-$50,000
Chairman of the Board and CEO of
Schneider Electric SA (industrial
conglomerate) from 1981 until February
1999; Chairman of AFEP from 1999 to
2001; Vice Chairman of Credit Suisse
First Boston (Europe) Limited
(investment banking) from 1999 to 2002;
Senior Advisor of Credit Suisse First
Boston (Europe) Limited since 2002;
Partner, SAGARD Private Equity
Partners (France).

----------------------------------------------------------
Senior Vice President and General 3,008
Counsel: Stateside Associates, Inc. from $10,001-$50,000
August 1993 to May 30, 2004; Senior
Consultant to Stateside Associates, Inc.
from June 1 to December 31, 2004;
Samuel B. Witt, III, Attorney-at-Law,
since August 1993.

----------------------------------------------------------

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

Certain Information Concerning Directors (Unaudited) (continued)

CLASS III INTERESTED DIRECTOR
(TERM WILL EXPIRE IN 2006)
-------------------------------------------------------------------------------------------------------------------------
NAME, POSITION(S) TERM OF OFFICE PRINCIPAL OTHER DIRECTORSHIPS
ADDRESS WITH FUND AND LENGTH OF OCCUPATION(S) HELD BY DIRECTOR
& AGE TIME SERVED DURING AT LEAST THE PAST FIVE YEARS

--------------------------------------------------------------------------------------------------------------------------

Mr. Paul Director; Director since General Partner: Hottinger et Cie Director: Drouot Securite;
Hottinguer/2/ Chairman of 1987. (Zurich); President: Gaspee (real estate) Member: Conseil de
Hottinger et Cie the Board of since 1992; Financiere Hottinguer Surveillance Credit Suisse
Dreikonigstrasse Directors since (holding company) since 1990; Financiere Hottinguer; Societe pour le
55 1989; Chief Provence Participations (venture capital Financement de Bureaux et
8027 Zurich Executive firm) since 1990; AXA International d'Usines Sofibus (real estate).
Switzerland Officer from Obligations (finance) since 1996;
1989 to 2002. Managing Director: Intercom (holding
Age 63 company) since 1984; Vice Chairman of
the Board, Director and Member of
Investment Committee: Hottinger
Capital Corp; Administrator:
Investissement Provence SA since 1989;
Finaxa (finance) since 1982; Permanent
Representative: Credit Suisse Hottinguer
to Provence International (publicly held
French mutual fund); Credit Suisse
Hottinguer to CS Oblig Euro Souverain
(mutual fund); Financiere Hottinguer to
CS Institutions Monetaire (mutual fund)
from 1990 to 2002; Financiere Hottinguer
to CS Court Terme (mutual fund) from
1990 to 2002; Censor - Provence Europe
(mutual fund); Credit Suisse Hottinguer
to PPC; Credit Suisse Hottinguer to
Croissance Britannia (investment fund);
Credit Suisse Hottinguer to Harwanne
Allemagne; Director: Hottinger U.S., Inc.
until December 2004.
--------------------------------------------------------------------------------------------------------------------------

General Partner: Hottinger et Cie 303,476/3/
(Zurich); President: Gaspee (real estate) over $100,000
since 1992; Financiere Hottinguer
(holding company) since 1990; Financiere
Provence Participations (venture capital
firm) since 1990; AXA International
Obligations (finance) since 1996;
Managing Director: Intercom (holding
company) since 1984; Vice Chairman of
the Board, Director and Member of
Investment Committee: Hottinger
Capital Corp; Administrator:
Investissement Provence SA since 1989;
Finaxa (finance) since 1982; Permanent
Representative: Credit Suisse Hottinguer
to Provence International (publicly held
French mutual fund); Credit Suisse
Hottinguer to CS Oblig Euro Souverain
(mutual fund); Financiere Hottinguer to
CS Institutions Monetaire (mutual fund)
from 1990 to 2002; Financiere Hottinguer
to CS Court Terme (mutual fund) from
1990 to 2002; Censor - Provence Europe
(mutual fund); Credit Suisse Hottinguer
to PPC; Credit Suisse Hottinguer to
Croissance Britannia (investment fund);
Credit Suisse Hottinguer to Harwanne
Allemagne; Director: Hottinger U.S., Inc.
until December 2004.
-----------------------------------------------------------

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

Certain Information Concerning Directors (Unaudited) (continued)

CLASS III NON-INTERESTED DIRECTORS
(TERM WILL EXPIRE IN 2006)
-------------------------------------------------------------------------------------------------------------------------
NAME, POSITION(S) TERM OF OFFICE PRINCIPAL OTHER DIRECTORSHIPS
ADDRESS WITH FUND AND LENGTH OF OCCUPATION(S) HELD BY DIRECTOR
& AGE TIME SERVED DURING AT LEAST THE PAST FIVE YEARS

--------------------------------------------------------------------------------------------------------------------------

Mr. Michael Director; Director since Partner of Brown Brothers Harriman & Director of American
Kraynak, Jr. Member of the 2005. Co.; Member, BBH Trust Company Australian Association;
401 Mountain Governance/ Investment Committee. Chairman, Finance Committee;
Avenue Nominating Member, Executive Committee;
Ridgewood, Committee President of the Robert
New Jersey since 2005. Brunner Foundation (private
07450 foundation); Trustee of the
Age 75 Ridgecrest Senior Citizens
Housing Corp.; Former
Member of the Ridgewood (NJ)
Financial Advisory Council;
Former Director: Yale Alumni
Association of Bergen County.
--------------------------------------------------------------------------------------------------------------------------
Mr. Claude Director; Director since E.B.R.D. - European Bank for None
Mosseri-Marlio Member of the 1993. Reconstruction and Development; Senior
6 bis rue du Governance/ Advisor: TAM Program (Turn Around
Cloitre Nominating Management) since 1999; Financial
Notre-Dame Committee Consultant, portfolio management since
75004 Paris since 2002 and 1982; Professor, Schiller University, Paris
France Member of the since 1989; Professor, American Business
Audit School, Paris, since 1995; Guest Lecturer,
Age 75 Committee Kelley School of Business, Indiana
since 2004. University, since 1998; Guest Lecturer,
Fox School of Business, Temple
University, since 2002; Visiting Professor,
Tyumen State Institute of Management,
Tyumen, Russia, since 2002; Visiting
Professor, Paris Chamber of Commerce,
Moscow Branch, since 2004.
--------------------------------------------------------------------------------------------------------------------------
Stephen K. Director; Director since Senior Counsel of Sullivan & Cromwell Director: Pioneer Funds
West, Esq. Member of the 1995. LLP since 1997; Partner of Sullivan (registered investment
Sullivan & Governance/ Cromwell from 1964 to 1996. company) (52 portfolios);
Cromwell LLP Nominating AMVESCAP PLC (investment
125 Broad Street Committee manager) from 1999 to 2005;
New York, New since 2002 and First ING Insurance Company
York 10004 Member of the of New York from 1983 to 2001;
Audit Winthrop Focus Funds
Age 77 Committee (registered investment
from 1996 to company) from 1988 to 1997;
2004 and of ING America Holdings, Inc.
the Litigation (insurance and broker-dealer
Committee holding company) from 1988 to
from 2001 to 1998; Dresdner RCM Global
2003. Strategic Income Fund, Inc.
(registered investment
company) from 1997 to 2002.
--------------------------------------------------------------------------------------------------------------------------

Partner of Brown Brothers Harriman & 1,000
Co.; Member, BBH Trust Company $10,001-$50,000
Investment Committee.

-------------------------------------------------------------
E.B.R.D. - European Bank for 7,347
Reconstruction and Development; Senior $50,001-$100,000
Advisor: TAM Program (Turn Around
Management) since 1999; Financial
Consultant, portfolio management since
1982; Professor, Schiller University, Paris
since 1989; Professor, American Business
School, Paris, since 1995; Guest Lecturer,
Kelley School of Business, Indiana
University, since 1998; Guest Lecturer,
Fox School of Business, Temple
University, since 2002; Visiting Professor,
Tyumen State Institute of Management,
Tyumen, Russia, since 2002; Visiting
Professor, Paris Chamber of Commerce,
Moscow Branch, since 2004.
-------------------------------------------------------------
Senior Counsel of Sullivan & Cromwell 19,217
LLP since 1997; Partner of Sullivan over $100,000
Cromwell from 1964 to 1996.

-------------------------------------------------------------

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

Certain Information Concerning Executive Officers (Unaudited)

The following table sets forth certain information about each person
currently serving as an Executive Officer of the Fund, including his beneficial
ownership of Common Stock of the Fund. All information presented in the table
is as of December 31, 2005.

EXECUTIVE OFFICERS
------------------------------------------------------------------------------------------------
NAME, POSITION(S) PRINCIPAL SHARES AND
ADDRESS & AGE WITH FUND OCCUPATION(S) DOLLAR RANGE OF
DURING AT LEAST THE PAST FIVE YEARS COMMON STOCK
BENEFICIALLY
OWNED AT
DEC. 31, 2005/1/
------------------------------------------------------------------------------------------------

Mr. Rodolphe E. President and Managing Partner of Hottinger et Cie 320,653/3/
Hottinger/2/ Chief Executive (Zurich) since 1987; President: Over $100,000
Hottinger et Cie Officer Financiere Hottinger Paris; Hottinger
3 Place des Bergues Capital, S.A. (Geneva) (investment
C.P. 395 company) since 2000; Hottinger & Co.
CH-1201 Geneva Ltd, UK (investment advisor) since
Switzerland 2001; and Emba, NV (investment company)
since 1990; Vice Chairman of the Board,
Age 49 Director, Chief Executive Officer and
Member of Investment Committee:
Hottinger Capital Corp. ("HCC") since
1994; Director: Hottinger U.S., Inc.
until December 2004.
------------------------------------------------------------------------------------------------
Mr. Rudolf Millisits Senior Vice Director of HCC since December 2000; 7,392
HCC President, Chief Operating Officer of HCC since $50,001-$100,000
1270 Avenue of the Treasurer and December 1998; Executive Vice
Americas Chief Financial President, Portfolio Manager, Member of
Suite 400 Officer Investment Committee and Chief
New York, New York Compliance Officer of HCC since
10020 September 1994; Assistant Secretary of
HCC since August 1995; Chairman, CEO,
Age 48 Director of Hottinger U.S., Inc since
December 2004; President, CFO of
Hottinger Brothers LLC since 2004;
Executive Vice President and Assistant
Secretary of Hottinger U.S., Inc. until
December 2004.
------------------------------------------------------------------------------------------------
Mr. Philippe R. Comby, Vice President Director of HCC since September 2005; 2,627
CFA Senior Vice President of HCC since $10,001-$50,000
HCC 2002; Chief Investment Officer and
1270 Avenue of the Senior Vice President of Hottinger
Americas Brothers LLC since 2004; President,
Suite 400 Director and Secretary: Hottinger U.S.,
New York, New York Inc. since December 2004; First Vice
10020 President of HCC from 1998 to 2002;
Vice President of Hottinger U.S., Inc
Age 39 until December 2004; Treasurer of HCC
since 1997. Member of Investment
Committee of HCC since 1996.
------------------------------------------------------------------------------------------------
Mr. Edward J. Veilleux Vice President President of EJV Financial Services LLC 2,107
EJV Financial and Secretary (investment company consulting) since $10,001-$50,000
Services LLC May 2002; Director of Deutsche Asset
5 Brook Farm Court Management from 1999 to 2002; Principal
Hunt Valley, of BT Alex Brown Incorporated from 1989
Maryland 21030 to 1999; Executive Vice President,
Investment Company Capital Corp. from
Age 62 1987 to 2002; Senior Vice President of
Old Mutual Advisor Funds (formerly
known as the PBHG Funds) since January
2005.
------------------------------------------------------------------------------------------------

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

Certain Information Concerning Executive Officers (Unaudited) (concluded)

EXECUTIVE OFFICERS
--------------------------------------------------------------------------------------------
NAME, POSITION(S) PRINCIPAL SHARES AND
ADDRESS & AGE WITH FUND OCCUPATION(S) DOLLAR RANGE OF
DURING AT LEAST THE PAST FIVE YEARS COMMON STOCK
BENEFICIALLY
OWNED AT
DEC. 31, 2005/1/
--------------------------------------------------------------------------------------------

Peter R. Guarino, Esq. Chief Executive Director, Compliance Services None
Two Portland Square Compliance of Forum Fund Services, LLC since 2004;
Portland, Maine 04101 Officer Independent Compliance Consultant from
2002 to 2004; General Counsel and
Age 48 Global Compliance Director, MiFund,
Inc. (mutual fund services) from 2000
to 2002; Western Division Chief
Operating Officer, Funds Services
Group, Merrill Corporation (mutual fund
services) from 1998 to 2000.
--------------------------------------------------------------------------------------------

1ALL DIRECTORS AND EXECUTIVE OFFICERS AS A GROUP (16 PERSONS) OWNED 377,380
SHARES WHICH CONSTITUTES APPROXIMATELY 1.6% OF THE OUTSTANDING COMMON STOCK OF
THE FUND. SHARE NUMBERS IN THIS ANNUAL REPORT HAVE BEEN ROUNDED TO THE NEAREST
WHOLE SHARE.
2INDICATES "INTERESTED PERSON," AS DEFINED IN THE INVESTMENT COMPANY ACT OF
1940, AS AMENDED (THE "1940 ACT"). PAUL HOTTINGUER AND RODOLPHE E. HOTTINGER
ARE "INTERESTED PERSONS" BECAUSE OF THEIR AFFILIATION WITH HOTTINGER ET CIE
(ZURICH) AND HOTTINGER U.S., INC., CONTROLLING PERSONS OF HCC, THE FUND'S
INVESTMENT ADVISOR. ALEXANDRE DE TAKACSY IS AN "INTERESTED PERSON" BECAUSE OF
HIS AFFILIATION WITH FINANCIERE HOTTINGER AND HIS FORMER POSITION AS SENIOR
ADVISOR TO THE HOTTINGER GROUP AND PRESIDENT OF HOTTINGER U.S., INC.
3HOTTINGER ET CIE (ZURICH), A PARTNERSHIP, OWNS 132,812 SHARES OF THE FUND, HCC
OWNS 130,034 SHARES OF THE FUND, HOTTINGER TREUHAND AG OWNS 9,104 SHARES OF
THE FUND AND HOTTINGER BANK & TRUST LIMITED, NASSAU OWNS 31,526 SHARES OF THE
FUND. PAUL HOTTINGUER AND RODOLPHE E. HOTTINGER ARE CONTROLLING PARTNERS OF
HOTTINGER ET CIE (ZURICH) AND CONTROLLING STOCKHOLDERS AND DIRECTORS OF HCC
AND HOTTINGER TREUHAND AG AND THEREFORE SHARE VOTING AND INVESTMENT POWER OVER
THE 303,476 SHARES OF THE FUND OWNED BY HOTTINGER ET CIE (ZURICH), HCC,
HOTTINGER TREUHAND AG AND HOTTINGER BANK & TRUST LIMITED, NASSAU. IN ADDITION,
RODOLPHE E. HOTTINGER AND HIS CHILDREN DIRECTLY OWN 17,177 SHARES OF THE FUND.

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

Review of Operations (Unaudited)

Trading activity for the year ended December 31, 2005 involved changes in the
following positions:

--------------------------------------------------------------------------------
NEW INVESTMENTS BY THE FUND
--------------------------------------------------------------------------------

ABB Ltd.
Adecco SA
Advanced Digital Broadcast Holding
Bank Sarasin & Cie AG
Berna Biotech AG
Centralschweiz Kraftwerke
Compagnie Financiere Richemont AG, Class A
INFICON Holding AG
IsoTis SA
Jelmoli Holding AG
OZ Holding AG
Precious Woods Holding AG
Swatch Group AG
Swisslog Holding AG
Swiss Steel AG
Zurich Financial Services AG

--------------------------------------------------------------------------------
ADDITIONS TO EXISTING INVESTMENTS
--------------------------------------------------------------------------------

BKW FMB Energie AG
Credit Suisse Group
Swiss Reinsurance Company

--------------------------------------------------------------------------------
SECURITIES DISPOSED OF
--------------------------------------------------------------------------------

Ciba Specialty Chemicals AG
Cytos Biotechnology AG
Geberit AG
Holcim Ltd. -- Registered
Huber & Suhner AG
Kaba Holdings AG
Kuoni Reisen Holding AG
Micronas Semiconductor Holding AG
SIG Holding AG
St. Galler Kantonalbank
Temenos Group AG

--------------------------------------------------------------------------------
REDUCTIONS IN EXISTING INVESTMENTS
--------------------------------------------------------------------------------

Actelion Ltd.
Elektrizitaets-Gesellschaft Laufenburg AG
Kuehne & Nagel International AG
Logitech International SA
Nestle AG
Novartis AG
Phonak Holding AG
SGS Societe Generale de Surveillance Holding SA
Sika AG
Sulzer AG
Syngenta AG

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

Schedule of Investments December 31, 2005

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

COMMON STOCKS -- 103.66%

BANKS -- 16.06%

2,143 BANK SARASIN & CIE AG
REGISTERED SHARES $ 4,390,227 1.05%
Offers private banking, asset
management, investment
advisory, and institutional
banking services.
(Cost $4,832,790)

428,000 CREDIT SUISSE GROUP/2/
REGISTERED SHARES 21,758,033 5.18%
A global diversified financial
service company with large
activity in private banking,
investment banking, asset
management and insurance
service.
(Cost $14,071,733)

435,000 UBS AG/2/
REGISTERED SHARES 41,290,261 9.83%
A global diversified financial
service company with large
activity in private banking,
investment banking, and asset
management.
(Cost $7,578,949)
------------ -----
67,438,521 16.06%

BASIC RESOURCES -- 2.66%

101,136 PRECIOUS WOODS HOLDING AG/1/
BEARER SHARES 9,093,377 2.17%
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)

71,000 SWISS STEEL AG
REGISTERED SHARES $ 2,071,361 0.49%
Manufactures industrial and
construction steel.
(Cost $2,180,101)
------------ ----
11,164,738 2.66%

BIOTECHNOLOGY -- 1.82%

61,331 ACTELION LTD./1/
REGISTERED SHARES 5,058,371 1.21%
Pharmaceutical company that
develops and markets synthetic
small-molecule drugs against
diseases related to the
endothelium.
(Cost $3,843,176)

158,111 BERNA BIOTECH AG/1/
REGISTERED SHARES 1,877,490 0.45%
Develops and produces viral and
bacterial vaccines for influenza,
hepatitis, travel and general
immunization.
(Cost $1,182,476)

461,110 ISOTIS SA/1/
BEARER SHARES 657,754 0.16%
Develops technologies in the field
of tissue repair, replacement, and
regeneration.
(Cost $742,637)
------------ ----
7,593,615 1.82%

CHEMICALS -- 4.48%

2,924 SIKA AG
BEARER SHARES 2,418,271 0.58%
Leading producer of construction
chemicals.
(Cost $653,545)

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

Schedule of Investments (continued) December 31, 2005

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

COMMON STOCKS -- (CONTINUED)

CHEMICALS -- (CONTINUED)

131,931 SYNGENTA AG/2/
REGISTERED SHARES $ 16,366,872 3.90%
Produces herbicides, insecticides
and fungicides, and seeds for
field crops, vegetables, and
flowers.
(Cost $7,768,263)
------------ ----
18,785,143 4.48%

CYCLICAL GOODS & SERVICES -- 3.99%

315,000 COMPAGNIE FINANCIERE
RICHEMONT AG, CLASS A/2/
BEARER SHARES 13,671,232 3.26%
Manufactures and retails luxury
goods through subsidiaries.
Produces jewelry, watches,
leather goods, writing
instruments, and mens' and
womens' wear.
(Cost $10,534,476)

20,800 SWATCH GROUP AG
BEARER SHARES 3,077,507 0.73%
Manufactures finished watches,
movements and components.
Produces components necessary
to its eighteen watch brand
companies. Also operates retail
boutiques.
(Cost $2,818,397)
------------ ----
16,748,739 3.99%

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

FINANCIAL SERVICES -- 0.24%

15,000 OZ HOLDING AG
BEARER SHARES $ 1,001,556 0.24%
Provides brokerage and banking
services, specializing in futures
and options.
(Cost $987,525)
------------ -----
1,001,556 0.24%

FOOD & BEVERAGES -- 15.57%

300 LINDT & SPRUNGLI AG
REGISTERED SHARES 4,996,396 1.19%
Major manufacturer of premium
Swiss chocolates.
(Cost $1,196,399)

202,500 NESTLE AG/2/
REGISTERED SHARES 60,383,550 14.38%
Largest food and beverage
processing company in the
world.
(Cost $12,107,256)
------------ -----
65,379,946 15.57%

INDUSTRIAL GOODS & SERVICES -- 10.27%

2,014,000 ABB LTD./1,2/
REGISTERED SHARES 19,483,668 4.64%
The holding company for ABB
Group which is one of the largest
electrical engineering firms in the
world.
(Cost $14,418,699)

103,000 ADECCO SA
REGISTERED SHARES 4,735,992 1.13%
Leading personnel and temporary
employment company.
(Cost $4,740,813)

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

Schedule of Investments (continued) December 31, 2005

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

COMMON STOCKS -- (CONTINUED)

INDUSTRIAL GOODS & SERVICES -- (CONTINUED)

2,055 BELIMO HOLDING AG
REGISTERED SHARES $ 1,224,003 0.29%
World market leader in damper
and volume control actuators for
ventilation and air-conditioning
equipment.
(Cost $433,588)

15,240 INFICON HOLDING AG/1/
Registered Shares 2,012,034 0.48%
Manufactures and markets
vacuum instruments used to
monitor and control production
processes. Manufactures on-site
chemical detection and
monitoring system.
(Cost $1,444,912)

13,418 KUEHNE & NAGEL INTERNATIONAL AG
REGISTERED SHARES 3,772,047 0.90%
Operates sea freight, land and rail
transportation businesses and
warehousing and distribution
facilities.
(Cost $673,385)

3,898 SGS SOCIETE GENERALE DE
SURVEILLANCE HOLDING SA
REGISTERED SHARES 3,277,047 0.78%
Provides a variety of industrial
inspection, analysis, testing and
verification services worldwide.
(Cost $1,009,843)

14,716 SULZER AG
REGISTERED SHARES 7,771,415 1.85%
Manufactures and sells surface
coatings, pumps, process
engineering equipment, and fuel
cells.
(Cost $5,423,350)

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

INDUSTRIAL GOODS & SERVICES -- (CONTINUED)

900,000 SWISSLOG HOLDING AG/1/
REGISTERED SHARES $ 853,598 0.20%
Offers consulting, financing,
general contracting, software,
and outsourcing services for
warehouses and distribution
centers.
(Cost $910,942)
------------ -----
43,129,804 10.27%
INSURANCE -- 10.03%

263,088 SWISS REINSURANCE COMPANY/2/
REGISTERED SHARES 19,203,358 4.57%
One of the leading global
reinsurers.
(Cost $17,043,772)

107,900 ZURICH FINANCIAL SERVICES AG/2/
REGISTERED SHARES 22,923,480 5.46%
Offers property, accident, health,
automobile, liability, financial risk
and life insurance and retirement
products.
(Cost $19,098,648)
------------ -----
42,126,838 10.03%

MEDICAL TECHNOLOGY -- 0.17%

16,867 PHONAK HOLDING AG
REGISTERED SHARES 724,362 0.17%
Designs and produces wireless
analog and digital hearing aids,
transmitters, remote controls,
microphones and receivers for
use in wireless communications
within broadcasting and sports.
(Cost $143,401)
------------ -----
724,362 0.17%

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

Schedule of Investments (continued) December 31, 2005

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

COMMON STOCKS -- (CONTINUED)

PHARMACEUTICALS -- 29.32%

1,149,000 NOVARTIS AG/2/
REGISTERED SHARES $ 60,198,376 14.34%
One of the leading manufacturers
of pharmaceutical and nutrition
products.
(Cost $13,461,235)

420,000 ROCHE HOLDING AG/2/
DIVIDEND RIGHTS CERTIFICATES 62,874,919 14.98%
Worldwide pharmaceutical
company.
(Cost $8,467,363)
------------ -----
123,073,295 29.32%

RETAILERS -- 1.32%

24,767 GALENICA HOLDING AG
REGISTERED SHARES 4,416,135 1.05%
Manufactures and distributes
prescription and over-the-
counter drugs, toiletries and
hygiene products.
(Cost $3,088,902)

800 JELMOLI HOLDING AG
BEARER SHARES 1,138,131 0.27%
Owns and operates department
and retail stores and provides
mail-order catalog and real estate
leasing services.
(Cost $1,200,963)
------------ -----
5,554,266 1.32%

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

TECHNOLOGY -- 3.88%

53,117 ADVANCED DIGITAL BROADCAST
HOLDING/1/
REGISTERED SHARES $ 4,836,329 1.15%
Develops equipment and systems
to view and interact with digital
TV broadcast through cable,
satellite, and telecommunication
networks.
(Cost $3,619,104)

244,363 LOGITECH INTERNATIONAL SA/1/
REGISTERED SHARES 11,449,156 2.73%
Manufactures personal computer
input devices, as well as
producing trackballs, desktop
publishing programs and related
software.
(Cost $3,847,914)
------------ ----
16,285,485 3.88%

UTILITY SUPPLIERS -- 3.85%

204,450 BKW FMB ENERGIE AG
REGISTERED SHARES 13,651,201 3.25%
Generates and distributes
electricity. Produces electricity
using nuclear, hydroelectric,
solar, biomass and wind energy.
(Cost $10,934,886)

7,000 CENTRALSCHWEIZERISCHE
KRAFTWERKE
BEARER SHARES 1,354,376 0.32%
Supplies electric power, operates
and maintains distribution
network facilities, constructs and
installs equipment, and offers
consulting services to its clients.
(Cost $1,161,341)

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

Schedule of Investments (concluded) December 31, 2005

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

COMMON STOCKS -- (CONTINUED)

UTILITY SUPPLIERS -- (CONTINUED)

1,953 ELEKTRIZITAETS-GESELLSCHAFT
LAUFENBURG AG
REGISTERED SHARES $ 1,178,068 0.28%
Generates and sells electricity.
Operates nuclear and
hydroelectric generating plants.
Sells excess power throughout
Europe.
(Cost $1,312,428)
------------ ------
16,183,645 3.85%

TOTAL COMMON STOCKS
(Cost $192,010,091)** $435,189,953 103.66%

OTHER LIABILITIES LESS OTHER
ASSETS, NET (15,376,323) (3.66)%
------------ ------

NET ASSETS $419,813,630 100.00%
============ ======

PORTFOLIO HOLDINGS
% of Total Investments
Pharmaceuticals 28.28%
Banks 15.50%
Food & Beverages 15.02%
Industrial Goods & Services 9.91%
Insurance 9.68%
Chemicals 4.32%
Cyclical Goods & Services 3.85%
Technology 3.74%
Utility Suppliers 3.72%
Basic Resources 2.56%
Biotechnology 1.74%
Retailers 1.28%
Financial Services 0.23%
Medical Technology 0.17%
------
100.00%
------

--------------------------------------------------------------------------------
/1/NON-INCOME PRODUCING SECURITY.
/2/ONE OF THE TEN LARGEST PORTFOLIO HOLDINGS.
*COMPANY DESCRIPTIONS HAVE NOT BEEN AUDITED.
**COST FOR FEDERAL INCOME TAX PURPOSES IS $192,069,006 AND NET UNREALIZED
APPRECIATION (DEPRECIATION) CONSISTS OF:

GROSS UNREALIZED APPRECIATION $244,537,187
GROSS UNREALIZED DEPRECIATION (1,416,240)
------------
NET UNREALIZED APPRECIATION $243,120,947
============

SEE NOTES TO FINANCIAL STATEMENTS.

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

Statement of Assets and Liabilities December 31, 2005

ASSETS:
Investments, at value (cost $192,010,091)....................................... $435,189,953
Cash............................................................................ 2,336,470
Foreign currency (cost $12,876,669)............................................. 12,761,766
Tax reclaims receivable......................................................... 1,196,873
------------
Total assets................................................................ 451,485,062
------------
LIABILITIES:
Capital gain distribution payable............................................... 30,763,847
Capital shares payable.......................................................... 253,245
Advisory fees payable (Note 2).................................................. 280,460
Directors' fees and expenses.................................................... 75,001
Accrued expenses and other...................................................... 298,879
------------
Total liabilities........................................................... 31,671,432
------------
Net assets.................................................................. $419,813,630
------------
COMPOSITION OF NET ASSETS:
Paid in capital................................................................. 170,856,078
Distributable earnings..........................................................
Undistributed net investment income.................................. 470,513
Accumulated net realized gain from investment and foreign currency
transactions....................................................... 5,551,833
Net unrealized appreciation on investments and foreign currency...... 242,935,206
-----------
Total distributable earnings................................................ 248,957,552
------------
Net assets............................................................................ $419,813,630
------------
NET ASSET VALUE PER SHARE:
($419,813,630 / 24,029,498 shares outstanding, 50 million shares authorized).... $ 17.47
============

--------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.

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

Statement of Operations For the Year Ended December 31, 2005

INVESTMENT INCOME:
Dividends (less foreign taxes withheld of $991,737)......................... $ 5,987,157
Interest.................................................................... 74,465
-----------
Total income.............................................................. 6,061,622
-----------
EXPENSES:
Investment advisory fees (Note 2)........................................... 3,214,790
Directors' fees & expenses.................................................. 406,918
Professional fees........................................................... 341,596
Administration fees......................................................... 333,870
Custody fees................................................................ 183,953
Printing and shareholder reports............................................ 110,322
Accounting fees............................................................. 101,510
Transfer agent fees......................................................... 31,067
Miscellaneous............................................................... 196,773
-----------
Total expenses............................................................ 4,920,799
-----------
Net investment income..................................................... 1,140,823
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:
Net realized gain (loss) from:
Investment transactions................................................... 37,161,885
Foreign currency transactions............................................. (670,310)
Net change in unrealized appreciation/depreciation from:
Investment transactions................................................... 19,996,117
Foreign currency translations............................................. (1,564,407)
-----------
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency. 54,923,285
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS..................................... $56,064,108
===========

--------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.

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

Statements of Changes in Net Assets

For the Years Ended
December 31,
-------------------
2005 2004

INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income (expenses in excess of).. $ 1,140,823 $ (285,349)
Net realized gain (loss) from:
Investment transactions...................... 37,161,885 24,407,382
Foreign currency transactions................ (670,310) 800,502
Net change in unrealized
appreciation/depreciation from:
Investments.................................. 19,996,117 31,782,290
Foreign currency............................. (1,564,407) 737,959
------------ ------------
Net increase in net assets from operations..... 56,064,108 57,442,784
------------ ------------
DISTRIBUTIONS TO STOCKHOLDERS FROM:
Net investment income and net realized gains
from foreign currency transactions........... (514,998) (2,309,546)
In excess of net investment income............. -- (285,504)
Net realized capital gains..................... (38,324,832)/1/ (19,781,630)
------------ ------------
Total distributions to stockholders.......... (38,839,830) (22,376,680)
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Value of shares issued in reinvestment of
dividends and distributions.................. 7,643,488 --
Value of shares repurchased.................... (6,568,476) (2,537,410)
------------ ------------
Total increase (decrease) from capital share
transactions................................. 1,075,012 (2,537,410)
------------ ------------
Total increase in net assets................... 18,299,290 32,528,694
NET ASSETS:
Beginning of year.............................. 401,514,340 368,985,646
------------ ------------
End of year (including undistributed net
investment income of $470,513 and $514,998,
respectively)................................ $419,813,630 $401,514,340
============ ============

--------------------------------------------------------------------------------
/1/INCLUDES A REPORTING ADJUSTMENT OF $2,357 FOR SHORT-TERM CAPITAL GAINS AND
$4,598 FOR LONG-TERM CAPITAL GAINS, WHICH WERE PROPERLY DISTRIBUTED IN THE
PREVIOUS YEAR.
SEE NOTES TO FINANCIAL STATEMENTS.

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

Financial Highlights

For the Years Ended December 31,
-------------------------------------------------------
2005 2004 2003 2002 2001
------------------------------------------------------------------- -------- -------- -------- -------- --------

PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period............................ $ 16.79 $ 15.31 $ 11.82 $ 13.16 $ 17.92
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (expenses in excess of income).............. 0.05/1/ (0.01) (0.01) (0.02) (0.03)
Net realized and unrealized gain (loss) on investments/2/......... 2.24 2.41 4.24 (0.71) (4.34)
-------- -------- -------- -------- --------
Total from investment operations.................................. 2.29 2.40 4.23 (0.73) (4.37)
-------- -------- -------- -------- --------
Gain from capital share repurchases............................... 0.04 0.02 0.02 0.02 0.06
Capital charge resulting from the issuance of fund shares......... (0.04) -- (0.06) -- (0.14)
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income and net realized gains from
foreign currency transactions.................................... (0.02) (0.10) (0.14) (0.06) --
Dividends in excess of net investment income...................... -- (0.01) -- (0.01) --
Distributions from net realized capital gains..................... (1.59) (0.83) (0.56) (0.56) (0.31)
-------- -------- -------- -------- --------
Total distributions............................................... (1.61) (0.94) (0.70) (0.63) (0.31)
-------- -------- -------- -------- --------
Net asset value at end of period.................................. $ 17.47 $ 16.79 $ 15.31 $ 11.82 $ 13.16
======== ======== ======== ======== ========
Market value per share at end of period........................... $ 15.31 $ 14.95 $ 12.92 $ 9.64 $ 11.00
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN/3/:
Based on market value per share................................... 13.11% 23.65% 41.76% (4.46)% (22.10)%
Based on net asset value per share................................ 14.92% 17.19% 37.00% (6.92)% (24.94)%
RATIOS TO AVERAGE NET ASSETS:
Expenses.......................................................... 1.19% 1.14% 1.30% 1.31% 1.39%/4/
Net investment income (expenses in excess of income).............. 0.27% (0.08)% (0.07)% (0.14)% (0.23)%
SUPPLEMENTAL DATA:
Net assets at end of period (000's)............................... $419,814 $401,514 $368,986 $279,799 $314,436
Average net assets during period (000's).......................... $415,074 $378,205 $306,563 $308,018 $341,806
Stockholders of record/5/......................................... 740 926 964 1,001 1,067
Portfolio turnover rate........................................... 37% 41% 89% 83% 32%

--------------------------------------------------------------------------------
/1/CALCULATED USING THE AVERAGE SHARES METHOD.
/2/INCLUDES NET REALIZED AND UNREALIZED CURRENCY GAIN (LOSS).
/3/TOTAL INVESTMENT RETURN BASED ON MARKET VALUE DIFFERS FROM TOTAL INVESTMENT
RETURN BASED ON NET ASSET VALUE DUE TO CHANGES IN THE RELATIONSHIP BETWEEN
THE FUND'S MARKET PRICE AND ITS NET ASSET VALUE PER SHARE.
/4/THE INCREASE IN THE FUND'S EXPENSE RATIO WAS ATTRIBUTABLE TO EXTRAORDINARY
EXPENSES IN CONNECTION WITH A STOCKHOLDER'S PROXY CONTEST FOR THE ELECTION
OF DIRECTORS AND THE TERMINATION OF THE MANAGEMENT CONTRACT AND IN
CONNECTION WITH DEFENSE AGAINST A LAWSUIT AGAINST THE FUND AND ITS DIRECTORS
PLUS THE IMPACT OF A DECLINE IN THE FUND'S NET ASSETS.
/5/NOT AUDITED BY DELOITTE & TOUCHE LLP.
SEE NOTES TO FINANCIAL STATEMENTS.

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

Notes to Financial Statements

NOTE 1--ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

A. ORGANIZATION
The Swiss Helvetia Fund, Inc. (the "Fund") is registered under the Investment
Company Act of 1940, as amended (the "Act"), as a non-diversified, closed-end
investment management company. The Fund is organized as a corporation under the
laws of the State of Delaware.

The investment objective of the Fund is to seek long-term growth of capital
through investment in equity and equity-linked securities of Swiss companies.

B. VALUATION OF SECURITIES
The Fund values its investments at market value.

When valuing listed equity securities, the Fund uses the last sale price prior
to the calculation of the Fund's net asset value. When valuing equity
securities that are not listed or that are listed but have not traded, the Fund
uses the mean between the bid and asked prices for that day.

When valuing fixed income securities, the Fund uses the last bid price prior to
the calculation of the Fund's net asset value. If a current bid price is not
available, the Fund uses the mean between the latest quoted bid and asked
prices. When valuing fixed income securities that mature within sixty days, the
Fund uses amortized cost.

It is the responsibility of the Fund's Board of Directors (the "Board") to
establish fair valuation procedures. When valuing securities for which market
quotations are not readily available or for which the market quotations that
are available are considered unreliable, the Fund determines a fair value in
good faith in accordance with these procedures. The Fund may use these
procedures to establish the fair value of securities when, for example, a
significant event occurs between the time the market closes and the time the
Fund values its investments. After consideration of various factors, the Fund
may value the securities at their last reported price or at some other value.
On December 31, 2005, there were no fair valued securities.

C. SECURITIES TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are recorded on the trade date. Realized gains and
losses are determined by comparing the proceeds of a sale or the cost of a
purchase with a specific offsetting transaction.

Dividend income, net of any foreign taxes withheld, is recorded on the
ex-dividend date. Interest income, including amortization of premiums and
accretion of discounts, is accrued daily. Estimated expenses are also accrued
daily.

The Fund records Swiss withholding tax as a reduction of dividend income, net
of any amount reclaimable from Swiss tax authorities in accordance with the tax
treaty between the United States and Switzerland.

D. DISTRIBUTIONS
The Fund pays dividends annually to the extent it has any net investment income
and net realized gains from foreign currency transactions and makes
distributions of any net realized capital gains to the extent they exceed any
capital loss carryforwards. The Fund determines the size and nature of these
distributions in accordance with provisions of the Internal Revenue Code.
Distributions may be paid either in cash or in stock with an option to take
cash. The Fund records dividends and distributions on its books on the
ex-dividend date.

E. FEDERAL INCOME TAXES
The Fund's policy is to continue to comply with the requirements of the
Internal Revenue Code that are applicable to regulated investment companies and
to distribute all its taxable income to its stockholders. Therefore, no federal
income tax provision is required.

Income and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from generally accepted accounting
principles.

F. SECURITIES LENDING INCOME
The Fund may lend securities to financial institutions. The Fund retains
beneficial ownership of the securities it has loaned and continues to receive
amounts equivalent to the dividends paid on these securities and to participate
in any changes in their market value. For the initial transaction, the Fund
requires the borrowers of the securities to establish collateral with the Fund
in the form of cash and/or government securities equal to 105% of the value of
the securities loaned. Subsequent to the initial transaction, the Fund requires
the

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

Notes to Financial Statements (continued)

borrowers to maintain collateral with the Fund equal to 100% of the value of
the securities loaned. The Fund receives fees as compensation for lending its
securities. Either the Fund or the borrower may terminate the securities loan
at any time. There were no securities on loan during the 2005 fiscal year.

G. FOREIGN CURRENCY TRANSLATION
The Fund maintains its accounting records in U.S. dollars. The Fund determines
the U.S. dollar value of foreign currency denominated assets, liabilities and
transactions by using prevailing exchange rates. In valuing assets and
liabilities, the Fund uses the prevailing exchange rate on the valuation date.
In valuing securities transactions, the receipt of income and the payment of
expenses, the Fund uses the prevailing exchange rate on the transaction date.

Net realized and unrealized gains and losses on foreign currency translations
shown on the Fund's financial statements result from the sale of foreign
currencies, from currency gains or losses realized between the trade and
settlement dates on securities transactions, and from the difference between
the amounts of dividends, interest, and foreign withholding taxes recorded on
the Fund's books and the U.S. dollar equivalent of the amounts actually
received or paid.

When calculating realized and unrealized gains or losses on investments in
equity securities, the Fund does not separate the gain or loss attributable to
changes in the foreign currency price of the security from the gain or loss
attributable to the change in the U.S. dollar value of the foreign currency.
Other foreign currency transactions resulting in realized and unrealized gain
(loss) are disclosed separately.

H. ESTIMATES
In preparing its financial statements in conformity with accounting principles
generally accepted in the United States, management makes estimates and
assumptions. Actual results may be different.

I. CASH BALANCES
The Fund maintains cash in an interest bearing account that, at times, may
exceed U.S. federally insured limits. The Fund has not experienced any losses
in such account and does not believe it is exposed to any significant credit
risk on such account.

J. CONTRACTUAL OBLIGATIONS
The Fund enters into contracts in the normal course of business that contain a
variety of indemnifications. The Fund's maximum exposure under these
arrangements is unknown. However, the Fund has not had prior claims or losses
pursuant to these contracts. Management has reviewed the Fund's existing
contracts and expects the risk of loss to be remote.

NOTE 2--FEES AND TRANSACTIONS WITH AFFILIATES
Hottinger Capital Corp. ("HCC"), which is owned jointly by Hottinger U.S., Inc.
and Hottinger & Cie (Zurich), is the Fund's advisor (the "Advisor"). The Fund
pays the Advisor an annual fee based on its month-end net assets which is
calculated and paid monthly at the following annual rates: 1.00% of the first
$60 million, 0.90% of the next $40 million, 0.80% of the next $100 million,
0.70% of the next $100 million, 0.65% of the next $100 million, 0.60% of the
next $100 million, 0.55% of the next $100 million, and 0.50% of such assets in
excess of $600 million. For the year ended December 31, 2005, the Fund paid the
Advisor $3,214,790 in investment advisory fees. The Fund paid Hottinger & Cie
$64,225 in brokerage commissions for the year ended December 31, 2005.

The Fund and the Advisor have agreed to share certain common expenses subject
to review and allocation by the Audit Committee (the "Committee") of the Board.
As of December 31, 2005, the Committee allocated $77,376 of expenses incurred
in connection with publicizing the Fund as follows: $38,688 to the Fund and
$38,688 to the Advisor.

Certain officers and directors of the Fund are also officers or directors of
HCC, Hottinger U.S., Inc. and Hottinger & Cie (Zurich). These persons are not
paid by the Fund for serving in these capacities.

NOTE 3--OTHER FEES
Citigroup Fund Services, LLC ("Citigroup") provides certain administration and
portfolio accounting services to the Fund.

American Stock Transfer & Trust Company is the Fund's transfer agent. The Fund
pays the transfer agent an annual fee which is accrued daily and paid monthly.

Swiss American Securities Inc. is the Fund's U.S. custodian. Credit Suisse
First Boston is the Fund's Swiss sub-custodian. The Fund pays the custodian and
sub-custodian an annual fee.

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

Notes to Financial Statements (concluded)

The Fund pays each director who is not an interested person (as such term is
defined in the Act) of the Fund, its Advisor, or Citigroup, approximately
$23,800 per annum in compensation, except for the Chairmen of the Audit
Committee and the Governance/Nominating Committee, to whom the Fund pays an
annual fee of approximately $28,800. In addition, the Fund pays each
disinterested director $1,300 for each Board meeting attended and $750 for each
committee meeting attended, if it is held separately. In addition, the Fund
reimburses directors who are not employees of or affiliated with the Advisor
for out-of-pocket expenses incurred in conjunction with attendance at meetings.

NOTE 4--CAPITAL SHARE TRANSACTIONS
The Fund is authorized to issue up to 50 million shares of capital stock. HCC
owned 130,034 of the 24,029,498 shares outstanding on December 31, 2005.
Transactions in capital shares were as follows:

For the Year Ended For the Year Ended
December 31, 2005 December 31, 2004
------------------ ------------------
Shares Amount Shares Amount
------ ------ ------ ------

Dividends
Reinvested 542,380 $ 7,643,488 -- $ --
Repurchased (422,100) (6,568,476) (189,100) (2,537,410)
-------- ----------- -------- -----------
Net increase
(decrease) 120,280 $ 1,075,012 (189,100) $(2,537,410)
======== =========== ======== ===========

NOTE 5--FEDERAL INCOME TAX AND INVESTMENT TRANSACTIONS
At December 31, 2005, accumulated net investment income and accumulated net
realized gain (loss) from investments and foreign currency transactions have
been adjusted for current period permanent book/tax differences which arose
principally from differing book/tax treatments of foreign currency transactions.

The following reclassification was a result of currency losses and has no
impact on the net assets of the Fund.

Undistributed Net Undistributed Net
Investment Income Realized Gain
----------------- -----------------

$(670,310) $670,310

The aggregate cost of purchases and proceeds from sales of investments, other
than short-term obligations, for the year ended December 31, 2005, were
$150,078,857 and $180,884,385, respectively.

The tax character of distributions paid during 2005 and 2004 was as follows
(see pages 28 and 29 for details):

2005 2004
---- ----

Ordinary income $ 1,762,873 $10,287,151
Long-term capital gains $37,076,957 $12,089,529

At December 31, 2005, the components of distributable earnings on a tax basis
were as follows:

Ordinary income $ 1,283,784
Long-term capital gains $ 5,017,526
Capital and other losses (220,049)
Unrealized appreciation $242,876,291

For tax purposes, the current year post-October loss was $220,049. This loss
will be recognized for tax purposes on the first business day of the Fund's
next year.

NOTE 6--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. During the year ended December 31, 2005, the Fund
repurchased and retired 422,100 shares at an average price of $15.56 per share
(including brokerage commissions) and a weighted average discount of 13.80%.
These repurchases, which had a total cost of $6,568,476, resulted in an
increase of $1,044,349 to the Fund's net asset value.

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

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of The Swiss Helvetia Fund, Inc.

We have audited the accompanying statement of assets and liabilities of The
Swiss Helvetia Fund, Inc. (the "Fund"), including the schedule of investments,
as of December 31, 2005, and the related statements of operations for the year
then ended, the statements of changes in net assets for each of the two years
in the period then ended, and the financial highlights for each of the five
years in the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.

We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements and financial highlights are free of material
misstatement. The Fund is not required to have, nor were we engaged to perform,
an audit of its internal control over financial reporting. Our audits included
consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the Fund's
internal control over financial reporting. Accordingly, we express no such
opinion. An audit also includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. Our procedures
included confirmation of securities owned as of December 31, 2005, by
correspondence with the custodians. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
the Fund as of December 31, 2005, the results of its operations for the year
then ended, the changes in its net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended, in conformity with accounting principles generally
accepted in the United States of America.

DELOITTE & TOUCHE LLP
Philadelphia, Pennsylvania
February 17, 2006

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

Additional Information (Unaudited)

This report is sent to the stockholders of The Swiss Helvetia Fund, Inc. for
their information. It is not a prospectus, circular or representation intended
for use in the purchase or sale of shares of the Fund or of any securities
mentioned in this report.

Proxy Voting Information
A description of the policies and procedures that the Fund uses to determine
how to vote proxies relating to portfolio securities is available, without
charge and upon request, by calling 1-888-SWISS-00 and on the SEC's website at
http://www.sec.gov. The Fund's proxy voting record for the twelve-month period
ended June 30 is available, without charge and upon request, by calling
1-888-SWISS-00 and on the SEC's website at http://www.sec.gov.

Availability of Quarterly Portfolio Schedules
The Fund files its complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q. The Fund's Form N-Q
is available, without charge and upon request, on the SEC's website
at http://www.sec.gov or may be reviewed and copied at the SEC's Public
Reference Room in Washington, DC. Information on the operation of the Public
Reference Room may be obtained by calling (800) SEC-0330.

Certifications
The Fund's chief executive officer has certified to the NYSE, pursuant to the
requirements of Section 303A.12(a) of the NYSE Listed Company Manual, that, as
of June 7, 2005, he was not aware of any violation by the Fund of applicable
NYSE corporate governance listing standards. The Fund's reports to the
Securities and Exchange Commission on Form N-CSR and Form N-Q contain
certifications by the Fund's chief executive officer and chief financial
officer as required by Rule 30a-2(a) under the Act, including certifications
regarding the quality of the Fund's disclosures in such reports and
certifications regarding the Fund's disclosure controls and procedures and
internal control over financial reporting.

Code of Ethics
The Board of Directors of the Fund and the Advisor have adopted Codes of Ethics
pursuant to provisions of the Investment Company Act of 1940 (the "Codes"). The
Codes apply to the personal investing activities of various individuals
including directors and officers of the Fund and designated officers, directors
and employees of the Advisor. The provisions of the Codes place restrictions on
individuals who are involved in managing the Fund's portfolio, who help execute
the portfolio manager's decisions or who come into possession of
contemporaneous information concerning the investment activities of the Fund.

The fundamental principle of the Codes is that the individuals covered by
the Codes have a fiduciary responsibility to the Fund and its stockholders.
They are therefore required at all times to place the interests of the Fund and
the stockholders first and to conduct all personal securities transactions in a
manner so as to avoid any actual or potential conflict of interest or abuse of
their position of trust.

Portfolio managers and other individuals with knowledge of Fund investment
activities are prohibited from purchasing or selling a security during a
blackout period of 30 calendar days before and after the date on which the Fund
effects a trade in the same or a similar security. They are also prohibited
from engaging in short term trading of Swiss equity or equity linked securities.

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

Additional Information (Unaudited)

Additionally, the Fund's portfolio managers are prohibited from participating
in any initial public offering or private placement of Swiss equity and equity
linked securities and other covered individuals must obtain prior clearance
before doing so.

Any individual who violates the provisions of the Codes is required to
reverse the transaction and to turn over any resulting profits to the Fund. The
Fund and the Advisor have adopted compliance procedures and have appointed
compliance officers to ensure that all covered individuals comply with the
Codes.

Distributions
The following information summarizes all distributions declared by the Fund
during the year ended December 31, 2005.

Record Payable
Distribution Date Date Amount
------------ -------- ------- --------

Income 6/6/05 6/17/05 $0.07200
Long-Term Capital Gains 6/6/05 6/17/05 $0.25800
Long-Term Capital Gains 12/19/05 1/31/06 $1.27600
--------
Total Distributions $1.60600
========

The Fund elects to pass through $.04127 per share to its stockholders as a
credit for taxes paid to Switzerland during its fiscal year ended December 31,
2005.

The Fund designates 55.40% of its income distributions for the qualified
dividend rate (QDI) as defined in Section 1(h)(11) of the Internal Revenue Code.

--------------------------------------------------------------------------------

Tax Information For the Year Ended December 31, 2005

The amounts may differ from those elsewhere in this report because of
differences between tax and financial reporting requirements. The Fund's
distributions to stockholders of long-term capital gains included $6,308,512 in
connection with the distribution paid June 17, 2005 to stockholders of record
on June 6, 2005, and $30,763,847 in connection with the distribution to be paid
January 31, 2006 to shareholders of record on December 19, 2005.

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.
--------------------------------------------------------------------------------

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
--------------------------------------------------------------------------------
HELVETIA
--------------------------------------------------------------------------------
FUND, INC.
--------------------------------------------------------------------------------
www.swz.com

ANNUAL REPORT
FOR THE
YEAR ENDED DECEMBER 31, 2005

ITEM 2. CODE OF ETHICS
As of the end of the period covered by this report, the Registrant has adopted a
code of ethics, as defined in Item 2 of Form N-CSR, that applies to its
principal executive officer and senior financial officer. A copy of the code of
ethics is filed as an exhibit to this Form N-CSR.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The Registrant's Board of Directors
(the "Board") has determined that Messrs. Didier Pineau-Valencienne and Samuel
B. Witt, III, Esq., each a member of the audit committee of the Board, are audit
committee financial experts as defined by the Securities and Exchange Commission
(the "SEC"). Messrs. Pineau-Valencienne and Witt each are "independent" as
defined by the SEC for purposes of audit committee financial expert
determinations.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
(a) The aggregate fees billed for each of the last two fiscal years (the
"Reporting Periods") for professional services rendered by the Registrant's
principal accountant for the audit of the Registrant's annual financial
statements, or services that are normally provided by the principal accountant
in connection with the statutory and regulatory filings or engagements for the
Reporting Periods, were $36,000 in 2004 and $38,575 in 2005.

(b) There were no audit-related fees billed to the Registrant in the Reporting
Periods for assurance and related services rendered by the principal accountant
that were reasonably related to the performance of the audit of the Registrant's
financial statements and are not reported under paragraph (a) of this Item 4.

There were no fees billed in the Reporting Periods for assurance and related
services rendered by the principal accountant to the Registrant's investment
adviser and any entity controlling, controlled by or under common control with
the investment adviser that provides ongoing services to the Registrant
(collectively the "investment adviser") which were required to be pre-approved
by the audit committee as described in paragraph (e)(1) of this Item 4.

(c) The aggregate fees billed in the Reporting Periods for professional services
rendered by the principal accountant to the Registrant for tax compliance, tax
advice and tax planning ("Tax Services") were $4,000 in 2004 and $4,200 in 2005.
These services consisted of review or preparation of U.S. federal, state, local
and excise tax returns.

(d) There were no other fees billed in the Reporting Periods for products and
services provided by the principal accountant to the Registrant, other than the
services reported in paragraphs (a) through (c) of this Item.

(e) (1) The Registrant's Audit Committee pre-approves the principal accountant's
engagements for audit and non-audit services to the Registrant, and certain
non-audit services to the investment adviser that are required to be
pre-approved on a case-by-case basis. Pre-approval considerations include
whether the proposed services are compatible with maintaining the principal
accountant's independence.

(e) (2) No services included in (b) - (d) above were approved pursuant to
paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) None.

(g) The aggregate non-audit services billed by the principal accountant for
services rendered to the Registrant in the reporting periods were $4,000 in 2004
and $4,200 in 2005. There were no fees billed in each of the Reporting Periods
for non-audit services rendered by the principal accountant to the investment
adviser.

(h) The Registrant's Audit Committee considers whether the provision of any
non-audit services rendered to the investment adviser not pre-approved (not
requiring pre-approval) by the Audit Committee is compatible with maintaining
the principal accountant's independence.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
The Registrant has a separately-designated standing audit committee established
in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934,
as amended. It is composed of the following Directors, each of who is not an
"interested person" as defined in the Investment Company Act of 1940, as amended
(the "Act"):

Didier Pineau-Valencienne
Claude Mosseri-Marlio
Samuel B. Witt, III, Esq.

ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
The Registrant has delegated voting of proxies in respect of portfolio holdings
to its investment adviser, Hottinger Capital Corp. (the "Advisor"), to vote the
Registrant's proxies in accordance with Advisor's proxy voting guidelines and
procedures. The Advisor has adopted proxy voting guidelines (the "Voting
Guidelines") that provide as follows:

o The Advisor votes proxies in respect of a client's securities in the
client's best economic interests and without regard to the interests of
the Advisor or any other client of the Advisor.

o Unless the Advisor's Proxy Voting Committee (the "Committee") otherwise
determines (and documents the basis for its decision) or as otherwise
provided below, the Advisor votes proxies in a manner consistent with
the Voting Guidelines.

o To avoid material conflicts of interest, the Advisor applies the Voting
Guidelines in an objective and consistent manner across client
accounts. Where a material conflict of interest has been identified and
the matter is covered by the Voting Guidelines, the Committee votes in
accordance with the Voting Guidelines. Where a conflict of interest has
been identified and the matter is not covered by the Voting Guidelines,
the Advisor will disclose the conflict and the Committee's
determination of the manner in which to vote to the Registrant's Audit
Committee.

o The Advisor also may determine not to vote proxies in respect of
securities of any issuer if it determines that it would be in the
client's overall best interests not to vote.

The Advisor's Voting Guidelines address how it will vote proxies on particular
types of matters such as the election for directors, adoption of option plans
and anti-takeover proposals. For example, the Advisor generally will:

o support management in most elections for directors, unless the board
gives evidence of acting contrary to the best economic interests of
shareholders;

o support option plans, if it believes that they provide for their
administration by disinterested parties and provide incentive to
directors, managers and other employees by aligning their economic
interests with those of the shareholders while limiting the transfer of
wealth out of the company; and

o oppose anti-takeover proposals unless they are structured in such a way
that they give shareholders the ultimate decision on any proposal or
offer.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

PRINCIPAL PORTFOLIO MANAGERS

As of the date of the filing of this Report on Form N-CSR, Messrs.
Philippe Comby and Rudolf Millisits are primarily responsible for the management
of the Registrant's portfolio.

Mr. Comby has been a portfolio manager of the Registrant since 1999,
when he joined the Advisor. Mr. Comby is a Vice President of the Registrant and
a Director and Senior Vice President of the Advisor. He also is a Director and
the President of Hottinger U.S., Inc. and the Chief investment Officer and
Senior Vice President of Hottinger Brothers LLC, each of which is a registered
investment adviser affiliated with the Advisor. Mr. Comby has been affiliated
with the Hottinger Group since 1994, providing portfolio management and client
advisory services. He is a member of the New York Society of Security Analysts,
a member of Global Association of Risk Professionals and a Chartered Financial
Analyst.

Mr. Millisits has been a portfolio manager of the Registrant since
1994, when he joined the Advisor. Mr. Millisits is the Senior Vice President and
Chief Financial Officer of the Registrant and the Chief Operating Officer,
Executive Vice President and Chief Compliance Officer of the Advisor. He also is
the Chairman and Chief Executive Officer of Hottinger U.S., Inc. and the
President and Chief Financial Officer of Hottinger Brothers, LLC. Mr. Millisits
has been affiliated with the Hottinger Group since 1993, proving portfolio
management and private banking services. Prior to joining the Hottinger Group,
Mr. Millisits was a portfolio manager for private clients for Credit Suisse in
New York and Geneva.

PORTFOLIO MANAGEMENT

The Registrant's portfolio managers manage multiple accounts for a
diverse client base, including private clients and institutions.

MATERIAL CONFLICTS RELATED TO MANAGEMENT OF SIMILAR ACCOUNTS. The
potential for conflicts of interest exist when the Advisor or its affiliates and
the portfolio managers manage other accounts that invest in securities in which
the Registrant may invest or that may pursue a strategy similar to the
Registrant's strategy (collectively, "Similar Accounts"). In addition, the
Registrant, as a registered investment company, is subject to different
regulations than certain of the Similar Accounts, and, consequently, may not be
permitted to engage in all the investment techniques or transactions, or to
engage in such techniques or transactions to the same degree, as the Similar
Accounts.

Potential conflicts of interest may arise because of a portfolio
manager's management of the Registrant and Similar Accounts. For example,
conflicts of interest may arise with both the aggregation and allocation of
securities transactions and allocation of limited investment opportunities, as
the portfolio manager may be perceived as causing accounts he manages to
participate in an offering to increase his overall allocation of securities in
that offering, or to increase his ability to participate in future offerings by
the same underwriter or issuer. Allocations of bunched trades, particularly
trade orders that were only partially filled due to limited availability, and
allocation of investment opportunities generally, could raise a potential
conflict of interest, as the portfolio manager may have an incentive to allocate
securities that are expected to increase in value to preferred accounts. Initial
public offerings, in particular, are frequently of very limited availability.
Additionally, the Registrant's portfolio managers may be perceived to have a
conflict of interest because of the number of Similar Accounts, in addition to
the Registrant, that they are managing. In addition, the Advisor could be viewed
as having a conflict of interest to the extent that the Advisor or its
affiliates and/or the portfolio managers have a materially larger investment in
a Similar Account than their investment in the Registrant.

A potential conflict of interest may be perceived to arise if
transactions in one account closely follow related transactions in a different
account, such as when a purchase increases the value of securities

previously purchased by the other account, or when a sale in one account lowers
the sale price received in a sale by a second account.

OTHER ACCOUNTS MANAGED BY THE PORTFOLIO MANAGERS. The chart below
includes information regarding the Registrant's portfolio managers, as of
December 31, 2005. Specifically, it shows the number of other portfolios and
assets, including the Registrant, managed by the Registrant's portfolio
managers. Neither portfolio manager manages any accounts with respect to which
the advisory fee is based on this performance of the account.

REGISTERED INVESTMENT OTHER POOLED INVESTMENT
PORTFOLIO MANAGER COMPANIES ($) VEHICLES ($) OTHER ACCOUNTS ($)
--------------------------- -------------------------- ----------------------------- ------------------------
--------------------------- -------------------------- ----------------------------- ------------------------
Philippe Comby 1 (419.7 million) 0 21 (52.4 million)
--------------------------- -------------------------- ----------------------------- ------------------------
--------------------------- -------------------------- ----------------------------- ------------------------
Rudolf Millisits 1 (419.7 million) 0 21 (52.4 million)

COMPENSATION FOR THE PORTFOLIO MANAGERS

The portfolio managers are generally responsible for managing multiple
types of accounts that may, or may not, invest in securities in which the
Registrant may invest or pursue a strategy similar to one of the Registrant's
strategies.

During the fiscal period covered by this Report on Form N-CSR, the
Registrant's portfolio managers were compensated by a competitive salary and
bonus structure, which was determined both quantitatively and qualitatively.
Salary and bonus are paid in cash. The portfolio managers are compensated on the
performance of the aggregate group of portfolios they manage rather than for a
specific fund or account. Various factors are considered in the determination of
the portfolio managers' compensation. All of the portfolios managed by the
portfolio managers are comprehensively evaluated to determine each portfolio
manager's positive and consistent performance contribution over time. Further
factors include the amount of assets in the portfolios as well as qualitative
aspects that reinforce the Advisor's investment philosophy.

Total compensation is generally not fixed, but rather is based on the
following factors: (i) leadership and commitment, (ii) maintenance of current
knowledge and opinions on companies owned in the portfolio; (iii) generation and
development of new investment ideas, including the quality of security analysis
and identification of appreciation catalysts; (iv) ability and willingness to
develop and share ideas; and (v) the performance results of the portfolios
managed by the portfolio managers.

Variable bonus is based on the portfolio managers' quantitative
performance as measured by their ability to make investment decisions that
contribute to the pre-tax absolute and relative returns of the accounts managed
by the portfolio manager, by comparison to predetermined benchmarks (for the
Registrant, the Swiss Market Index and the Swiss Performance Index) over the
current fiscal year and the longer-term performance (3-, 5- or 10-year, if
applicable), as well as performance relative to peers. The portfolio managers'
bonuses also can be influenced by subjective measurement of the managers'
ability to help others make investment decisions.

OWNERSHIP OF SECURITIES OF THE REGISTRANT

As of December 31, 2005, Mr. Comby and Mr. Millisits owned between
$10,001-$50,000 and over $100,000 of shares of common stock of the Registrant,
respectively.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
--------------------------------------------------------------------------------

(d) Maximum
Number (or
Approximate
(c) Total Number of Dollar Value) of
Shares (or Units) Shares that May
Purchased as Part of Yet Be Purchased
(a) Total Number of (b) Average Price Publicly Announced Under the Plans or
Period Shares Purchased Paid per Share Plans or Programs Programs
------------------------------------------------------------------------------------------------------------
07/01/05 - 07/31/05
250,000
------------------------------------------------------------------------------------------------------------

08/01/05 - 08/31/05 250,000
------------------------------------------------------------------------------------------------------------

09/01/05 - 09/30/05 250,000
------------------------------------------------------------------------------------------------------------
10/01/05 - 10/31/05 14.8094
62,200 62,200 437,800
------------------------------------------------------------------------------------------------------------
11/01/05 - 11/30/05 15.5523
151,200 151,200 286,600
------------------------------------------------------------------------------------------------------------

12/01/05 - 12/31/05 208,700 15.6755 208,700 77,900
------------------------------------------------------------------------------------------------------------
Total 422,100
422,100 15.3457 77,900
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------

At the October 18, 2005 meeting of the Board, the Board approved an increase in
its authorization for open market repurchases of Fund shares by the Advisor from
250,000 shares to 500,000 shares. The approved increase, announced to the public
in a press release on October 19, 2005, expired on December 31, 2005. At the
December 8, 2005 meeting of the Board, the Board approved the purchase of up to
1,000,000 shares of the Fund by the Advisor during 2006. The approved purchase
plan, announced to the public in a press release on December 8, 2005, expires on
December 31, 2006.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS No material changes
to procedures.

ITEM 11. CONTROLS AND PROCEDURES

(a) The Registrant's principal executive and principal financial officers have
concluded, based on their evaluation of the Registrant's disclosure controls and
procedures as of a date within 90 days of the filing date of this report, that
the Registrant's disclosure controls and procedures are reasonably designed to
ensure that information required to be disclosed by the Registrant on Form N-CSR
is recorded, processed, summarized and reported within the required time periods
and that information required to be disclosed by the Registrant in the reports
that it files or submits on Form N-CSR is accumulated and communicated to the
Registrant's management, including its principal executive and principal
financial officers, as appropriate to allow timely decisions regarding required
disclosure.

(b) There were no changes to the Registrant's internal control over financial
reporting that occurred during the Registrant's second fiscal quarter of the
period covered by this report that have materially affected, or are reasonably
likely to materially affect, the Registrant's internal control over financial
reporting.

ITEM 12. EXHIBITS.

(a)(1) A copy of the Code of Ethics (Exhibit filed herewith).

(a)(2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act
of 1940 (Exhibit filed herewith).

(a)(3) Not applicable.

(b) Certifications pursuant to Rule 30a-2(b) under the Investment Company Act of
1940 (Exhibit filed herewith).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

THE SWISS HELVETIA FUND, INC.

By /s/ Rodolphe E. Hottinger
---------------------------
Rodolphe E. Hottinger, Chief Executive Officer

Date March 6, 2006
---------------------------

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.

By /s/ Rodolphe E. Hottinger
-----------------------------------
Rodolphe E. Hottinger, Chief Executive Officer

Date March 6, 2006
-----------------------------------

By /s/ Rudolf Millisits
-----------------------------------
Rudolf Millisits, Chief Financial Officer

Date March 7, 2006
-----------------------------------