Edgar Filing: SWISS HELVETIA FUND INC

THE SWISS HELVETIA FUND, INC.
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DIRECTORS AND OFFICERS

Paul Hottinguer Rodolphe E. Hottinger
CHAIRMAN PRESIDENT
CHIEF EXECUTIVE
Eric R. Gabus OFFICER
VICE CHAIRMAN (NON
OFFICER) Rudolf Millisits
SENIOR VICE PRESIDENT
Alexandre de Takacsy TREASURER
DIRECTOR
Philippe Comby
Claude Frey VICE PRESIDENT
DIRECTOR
Edward J. Veilleux
Baron Hottinger VICE PRESIDENT
DIRECTOR SECRETARY

Claude Mosseri-Marlio Leslie K. Klenk
DIRECTOR ASSISTANT VICE
PRESIDENT
Didier
Pineau-Valencienne* Frederick Skillin
DIRECTOR ASSISTANT TREASURER

Stephen K. West, Esq.* Dawn L. Taylor
DIRECTOR ASSISTANT TREASURER

Samuel B. Witt III,
Esq.**
DIRECTOR

Paul R. Brenner, Esq.
DIRECTOR

-------------------------------------------------------
*AUDIT COMMITTEE MEMBER
**AUDIT COMMITTEE CHAIRMAN

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

ADMINISTRATOR
Forum Administrative Services, LLC

CUSTODIAN
Swiss American Securities Inc.

TRANSFER AGENT
PFPC Inc.
P.O. Box 43027
Providence, RI 02940-3027
(800) 331-1710

LEGAL COUNSEL
Stroock & Stroock & Lavan LLP

INDEPENDENT AUDITORS
Deloitte & Touche LLP

THE INVESTMENT ADVISOR

The Swiss Helvetia Fund, Inc. (the "Fund") is managed by Hottinger Capital
Corp., which is 100% owned by 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, 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
http://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 has earned the Lipper, Inc. award for ranking number one among Western
European closed-end funds in ten year performance for the periods ended December
31, 2001, 2000, 1999, and 1998. The Fund had previously been recognized for its
top one year performance in the same category for the year 2000. The Fund also
was given Morningstar's top overall rating of five stars as of December 31,
2002. Of course, past performance is no guarantee of future results. See page 4
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.
Weekly Net Asset Value is also published in BARRON'S, the Monday edition of THE
WALL STREET JOURNAL and the Sunday Edition of THE NEW YORK TIMES.

THE SWISS HELVETIA FUND, INC.
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LETTER TO STOCKHOLDERS

GENERAL MARKET REVIEW AND ECONOMIC
CONSIDERATIONS
2002 was not a good year for the global equity markets. After a relatively
good start early in the year, equity investors around the world saw their hope
for the reacceleration of earnings confronted with the harsh reality of a weak
economic rebound. The valuation bubble of the late 90's was still unwinding.
This process, now in its third year, contributed to a large increase in equity
index volatility. With many companies running out of costs to cut and their
capital eroded by accumulated investment and operating losses, there is a fear
that excess leverage will trigger a new wave of corporate bankruptcies.
Expectations of a possible breakdown of the financial system, fears that a large
financial institution would run into trouble and continuing corporate scandals
had a strong negative impact on the markets with troughs during the summer and
in mid October. In that respect, the traditional seasonality of the market once
again played its role. Those fears turned out to be exaggerated.

Reality, however, was not all bad. Because the financial system was in
relatively good shape (banks had unloaded much of their risk in the capital
market), the Federal Reserve was extremely stimulative in its monetary policy.
In addition, the U.S. consumer was supported by rising home prices, making some
damage control possible. Massive price/earnings multiple contraction did not
occur for most of the largest companies due to their ability to maintain margins
by cutting costs and to their ability to preserve cash flow by increasing
pressure on suppliers and reducing capital expenditures. Working capital
discipline also helped. Together these factors spurred strong productivity
growth and positive, though moderate, GDP growth for the year in spite of
relatively high unemployment.

By the end of the year, Washington lawmakers called for a stimulus package
to spur job creation and economic growth. The U.S. economic recovery was
progressing too slowly, business investment had been stalled for too long, and
unemployment was becoming a chronic problem instead of a cyclical one. With
consumer spending still strong, inflation under control, the Federal Reserve
actively watching for signs of deflation, GDP and productivity growing and
interest rates at lifetime lows, most of the fundamentals were in place for a
solid recovery in the U.S. economy and the global equity markets.

Those positive fundamentals, however, were somewhat offset by other
concerns on investors' minds including corporate scandals, rising tensions in
Iraq and North Korea, terrorist incidents in Israel, Moscow, and even Washington
D.C., the power of tort lawyers and class action suits, rising anti-American
sentiment, even in close allies such as Germany, and the economic quagmire of
the world's other economic powers, most notably the European Union and Japan.
There has been a lot of uncertainty in the markets, and not much confidence. The
number and scope of the unresolved issues puts the prospects

THE SWISS HELVETIA FUND, INC.
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LETTER TO STOCKHOLDERS (CONTINUED)

for this year's market performance into perspective.

STOCK MARKET PERFORMANCE
The Swiss market was one of the best performers of 2002 in U.S. dollar
terms primarily due to the Swiss franc's 16.68% appreciation against the U.S.
dollar. Without the currency impact, the Swiss Performance Index (SPI) was in
line with the Italian and British markets, though still better than the other
continental European markets.

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GLOBAL EQUITY INDEX PERFORMANCES (01/01/02 TO 12/31/02)
PERFORMANCE IN U.S. $ TERMS
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S&P Australian Index (Australia) (3.15)%
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Nikkei 225 Index (Japan) (9.82)%
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SPI (SWITZERLAND) (11.12)%
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Milan MIB30 Index (Italy) (12.68)%
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Mexico Bolsa Index (Mexico) (15.09)%
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IBEX 35 Index (Spain) (15.21)%
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FTSE 100 Index (UK) (16.40)%
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Dow Jones Industrials (U.S.) (16.76)%
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Hang Seng Index (Hong Kong) (18.22)%
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CAC 40 Index (France) (21.86)%
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S&P 500 Index (U.S.) (22.10)%
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Amsterdam Exchanges Index (Netherlands) (24.89)%
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DJ Euro Stoxx 50 P Index (Europe) (26.05)%
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NASDAQ Composite Index (U.S.) (31.53)%
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DAX Index (Germany) (33.88)%
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Brazil Bovespa Stock Index (Brazil) (45.83)%
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SOURCES: FORUM FINANCIAL GROUP, BLOOMBERG

LARGEST SWISS STOCKS 2002 PERFORMANCE

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PERFORMANCE IN SWISS FRANCS
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SGS Societe Generale de Surveillance* 56.10%
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Givaudan SA* 22.53%
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Syngenta AG* (6.92)%
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Ciba Specialty Chemicals AG (7.08)%
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Swisscom AG (11.36)%
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Novartis AG* (15.92)%
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Compagnie Financiere Richemont AG (16.37)%
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Nestle SA* (17.23)%
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Roche Holding AG* (18.69)%
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UBS AG* (19.81)%
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Swiss Reinsurance Company* (45.69)%
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Baer Holding (46.43)%
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Unaxis Holding AG* (48.32)%
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Serono SA (48.86)%
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Zurich Financial Services AG* (56.74)%
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Credit Suisse Group* (57.63)%
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Baloise Holding AG* (64.05)%
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ABB Ltd. (75.44)%
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Swiss Life Holding* (79.02)%
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Kudelski SA (80.67)%
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*SECURITY HELD AS OF DECEMBER 31, 2002 IN SWZ PORTFOLIO.

SOURCE: BLOOMBERG

Financial stocks, especially in the insurance sector, were hit hard by
insufficient reserves, collapsing equity markets and dwindling risk-free yields
(a special concern for life insurance companies). The pricing environment for
insurance has been much stronger post 9/11, especially for property and casualty
businesses. But this strength was not enough to compensate for the

THE SWISS HELVETIA FUND, INC.
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LETTER TO STOCKHOLDERS (CONTINUED)

adverse factors mentioned earlier. In addition, Swiss companies were hit by
losses in assets they acquired at high prices during the bubble years.

Even though Swiss pharmaceutical companies outperformed their U.S. peers,
they were still hurt by a decrease in their market multiples triggered by
concerns over fewer product introductions and increasing government pressure on
health care costs. Therefore, Swiss pharmaceutical stocks were unable to shield
investors from economic turmoil as they had in past down cycles.

FUND PERFORMANCE REVIEW
The Fund's U.S. dollar performance benefited significantly from currency
movements in 2002. The Swiss franc appreciated 16.68% against the U.S. dollar,
shielding dollar denominated investors from a precipitous drop in equity values
even as the Swiss Market Index fell 27.84% for the year. The past year's
currency movement demonstrates why the Fund does not hedge its currency exposure
as a matter of policy. Investors can achieve a degree of currency
diversification by investing in Fund shares, and can potentially outperform the
U.S. equity markets by a significant margin when the dollar weakens. As
mentioned in the September report, Management considers cash held in Swiss
francs a real investment from the point of view of its U.S. shareholders. In
addition it helps to offset decreases in the market price of Swiss multinational
companies caused by the impact the weakening dollar has on their earnings. The
Swiss currency provides capital preservation when geopolitical uncertainties are
as high as they are now.

The Fund's market price was down 6.92% in 2002 while its net asset value
slipped only 4.46%. While any loss is disappointing, the Fund's performance for
the year was far superior to the returns achieved by both U.S. and Swiss equity
indexes. The S&P 500 fell by 22.10%, and the SPI lost 11.12% in U.S. dollar
terms.

Management also delivered on stock picking and market timing. In Swiss
currency, the Fund beat the benchmark SPI by 5.55%. The Fund maintained, for the
year ended December 31, 2002, an overall rating of five stars from Morningstar.*
For the last year, the Fund's total returns earned a spot among the top 13% of
funds in its category, (stock funds that invest at least 75% of their assets in
Europe). The Fund achieved these results with less volatility than most of its
international equity fund peers. The three year average standard deviation of
the returns was 14.62%, among the lowest of all closed-end equity funds included
in Morningstar's list of the 100 best closed-end funds for 2002. The Morningstar
risk factor that "evaluates the fund's downside volatility

*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
12/31/02, THERE WERE 14 FUNDS IN THE FUND'S ASSET CATEGORY RATED BY MORNINGSTAR.
IN FEBRUARY 2003, MORNINGSTAR RATED THE FUND FOUR STARS.

THE SWISS HELVETIA FUND, INC.
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LETTER TO STOCKHOLDERS (CONTINUED)

relative to other funds in its asset class" shows that the Fund as of 12/31/02
was 51% less risky over ten years than the average for the same asset class and
42% less risky for the three year period (go to www.morningstar.com, under
closed-end funds, quicktake report for details). The Fund also received Lipper,
Inc.'s top ranking for Western European closed-end funds in ten-year performance
for the period ended December 31, 2001, the last year for which data on such
ranking by Lipper, Inc. is available.** PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS.

**LIPPER, INC. IS AN INDEPENDENT FUND PERFORMANCE MONITOR. AS OF 12/31/01, THERE
WERE TEN FUNDS IN THE LIPPER WESTERN EUROPEAN CLOSED-END FUNDS CATEGORY, WHICH
IS COMPRISED OF FUNDS THAT CONCENTRATE THEIR INVESTMENTS IN EQUITY SECURITIES
WHOSE PRIMARY TRADING MARKETS OR OPERATIONS ARE IN THE WESTERN EUROPEAN REGION
OR A SINGLE COUNTRY WITHIN THIS REGION.

PERFORMANCE COMMENTARY AND SWISS MARKET REVIEW

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JANUARY 1, 2002 THROUGH DECEMBER 31, 2002
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PERFORMANCE IN SWISS FRANCS
Swiss Performance Index (SPI) (25.95)%
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Swiss Helvetia Fund
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Based on Net Asset Value (20.40)%
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CHANGE IN U. S. DOLLAR VS SWISS FRANC (16.68)%
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PERFORMANCE IN U. S. DOLLARS
Swiss Helvetia Fund
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Based on Net Asset Value (4.46)%
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Based on Market Price (6.92)%
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S & P 500 Index (22.10)%
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MSCI EAFE Index (15.94)%
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Lipper European Fund Index (10 Largest) (18.06)%
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Lipper European Fund Universe Average (17.41)%
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SOURCES: FORUM FINANCIAL GROUP, BLOOMBERG

SWISS ECONOMY
The Swiss and European economies are following the same cycle. Capital
spending has been adjusted downward to reflect weaker consumer spending. Despite
weak economic indicators, the Swiss National Bank has left its target range for
the 3 months Swiss franc LIBOR unchanged at 0.25-1.25% with an easing bias.
While the Swiss central bank wants to prevent further appreciation of the
currency, it is running out of resources to accomplish that goal. Switzerland,
because it is at the opposite end of the spectrum from the U.S. (non-engagement
in conflicts, principle of neutrality), is bound to see its currency under
upward pressure during tense geopolitical situations. Capital spending in
Switzerland, despite a mediocre outlook for consumer spending and pressure on
exports, is due for a rebound in 2003. Management expects a Real Gross Domestic
Product increase of only 1% next year, continued weakness in job creation, and
increasing pressure against exports due to a strengthening currency.

OUTLOOK FOR THE SWISS MARKET
The theme of the year 2003 may very well be reflation, engineered by the
Federal Reserve and the European Central Banks. That, combined with the apparent
overvaluation of Treasuries and other risk-free assets, should continue to
trigger a broad shift in asset allocation in favor of equities. As a result, the
overall backdrop for stocks and for commodities is positive.

THE SWISS HELVETIA FUND, INC.
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LETTER TO STOCKHOLDERS (CONTINUED)

The fate of the Swiss market will depend mainly on the performance of the
financial and pharmaceutical sectors. Management believes that Swiss financial
institutions have improved operations and management significantly as a result
of recent restructuring. Company-specific risks have receded substantially. The
capital base has been replenished and cost cutting programs are finally coming
to fruition. Most of these companies are more sensitive to changes in the stock
market than to changes in the economy. Since Management expects the stock market
to outperform the economy in 2003, the context is favorable for these financial
companies.

Pharmaceutical companies are trading at a slight premium to the market.
However, this slight premium is still a historically low valuation. Management
believes there is more upside potential than downside potential in this sector.

Overall, stock markets are cheap when compared to bond yields, especially
risk-free bond yields. A key Management assumption is that the disparity between
earnings yields and bond yields will close. This would give stocks a boost if
the Federal Reserve wins its war against deflation as Management predicts.

COMMENT ON THE CURRENCY
The weakening of the U.S. dollar accelerated toward the end of the year as
money was repatriated out of the dollar zone. Despite relatively weaker economic
growth in Europe and in Switzerland in particular, the dollar suffered from the
U.S. trade deficit and increasing government deficit projections. In addition,
the risk of war put pressure on the U.S. currency as investors favored other
safe haven currencies such as the Swiss franc.

The Fed made it clear that it will fight deflation by any means, which
likely includes a substantial increase in the supply of U.S. dollars. This
creates, in turn, a supply and demand imbalance, contributing to further
weakness versus the major currencies and especially against commodities.

Management believes that the dollar is on a down trend because the factors
behind its recent decline are still in place. Because Swiss multinational
companies have a disproportionate emphasis on exports and a large amount of U.S.
dollar denominated assets, Management expects this down-trend will have a
disproportionate impact on their revenues and earnings.

The impact of currency movements on Swiss equity prices is a complex issue.
More than simply making exports too expensive for non-Swiss customers, currency
movements expose Swiss firms to three distinct risks: translation risk,
operational risk and transaction risk. Swiss companies have different hedging
opportunities, including the use of market instruments, and natural hedges, such
as shifting production out of Switzerland and local sourcing.

Some Swiss companies report in euros or U.S. dollars. However, since they
are more

THE SWISS HELVETIA FUND, INC.
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LETTER TO STOCKHOLDERS (CONCLUDED)

truly international than distinctly U.S. or European, they will still be
affected by currency movements. Management expects the strong Swiss currency to
dampen the expansion of the valuation of Swiss multinationals, which comprise
over 80% of the Swiss market. On the other hand, this currency exposure may
already be built into current equity prices. In the opinion of Management, the
valuation of Swiss stocks is rather cheap, and therefore upside potential
exists.

STOCK REPURCHASE PROGRAM
During the full year 2002, the Fund repurchased and retired 219,700 shares
of its common stock at an average price of $10.75 per share and a weighted
average discount of 16.90%. The total expenditure of $2,361,886 enhanced
stockholder value by $513,051. During the period, the discount rate was between
14.40% and 23.39% finishing the year at 18.44%.

Sincerely,

(-s- Paul Hottinguer)

Paul Hottinguer
CHAIRMAN

(-s- Rodolphe E. Hottinger)

Rodolphe E. Hottinger
PRESIDENT AND CHIEF EXECUTIVE OFFICER

December 31, 2002

THE SWISS HELVETIA FUND, INC.
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CERTAIN INFORMATION CONCERNING DIRECTORS

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, 2002. 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.

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CLASS I INTERESTED DIRECTOR
(TERM WILL EXPIRE IN 2004)
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SHARES AND DOLLAR
NAME, POSITION(S) TERM OF OFFICE PRINCIPAL OTHER DIRECTORSHIPS RANGE OF
ADDRESS WITH FUND AND LENGTH OF OCCUPATION(S) HELD BY DIRECTOR COMMON STOCK
& AGE TIME SERVED DURING PAST FIVE YEARS BENEFICIALLY
OWNED AT
DEC. 31, 2002(1)
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Mr. Director(2) Director from Senior Advisor to the Hottinger Group and None 700
Alexandre 1987 to President of Hottinger U.S., Inc. since $1-$10,000
de Takacsy February 8, April, 1986; Vice Chairman of the Board
Financiere 1994 and since and Director: Hottinger Capital Corp.;
Hottinguer September 17, Retired Senior Executive: Royal Bank of
43, rue 1998. Canada.
Taitbout
75009 Paris
France
Age 73

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CLASS I NON-INTERESTED DIRECTOR
(TERM WILL EXPIRE IN 2004)
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SHARES AND DOLLA
NAME, POSITION(S) TERM OF OFFICE PRINCIPAL OTHER DIRECTORSHIPS RANGE OF
ADDRESS WITH FUND AND LENGTH OF OCCUPATION(S) HELD BY DIRECTOR COMMON STOCK
& AGE TIME SERVED DURING PAST FIVE YEARS BENEFICIALLY
OWNED AT
DEC. 31, 2002(1)
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Mr. Claude W. Director; Director since President of the Swiss Police Academy W. Member of the Board: 1,814
Frey Member of 1995. (Neuchatel) since 1996; Member of the Infra 2000 (Marin); Berun $10,001-$50,000
Clos 108 Nominating Swiss Parliament since 1979; Parliamentary Frais SA (Maria); SCCM SA
2012 Committee from Assembly of the Council of Europe (Crans-Montana).
Auvernier 1996 to 2002, (Strasbourg) since 1996 and Executive
Switzerland and the Board of the "North-South Centre" (Lisbon)
Governance/ since 1999; Chairman of the Board:
Age 59 Nominating Federation of Swiss Food Industries
Committee (Berne) from 1991 to 2001; Association of
since 2002. 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.

THE SWISS HELVETIA FUND, INC.
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CERTAIN INFORMATION CONCERNING DIRECTORS (CONTINUED)

Mr.Eric R. Director; Vice Director since Chairman of the Board: Societe Board Member: Pro 1,000
Gabus Chairman (Non- 1987. Neuchateloise de Presse since 1999; C.I.C.R. (International $10,001-$50,000
St.Dominique Officer) since L'Express Communication (Neuchatel) from Red Cross) Neuchatel
1815 1994; Chairman 1983 to 2002; Vice Chairman of the Board: since 1986.
Clarens of the Fondation Denis de Rougemont pour
Switzerland Nominating l'Europe, Geneva since 1980.
Committee from
Age 75 1987 to 2002,
the Governance/
Nominating
Committee
since 2002 and
Member of the
Litigation
Committee
since 2001.

CLASS II INTERESTED DIRECTOR
(TERM WILL EXPIRE IN 2005)
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SHARES AND DOLLAR
NAME, POSITION(S) TERM OF OFFICE PRINCIPAL OTHER DIRECTORSHIPS RANGE OF
ADDRESS WITH FUND AND LENGTH OF OCCUPATION(S) HELD BY DIRECTOR COMMON STOCK
& AGE TIME SERVED DURING PAST FIVE YEARS BENEFICIALLY
OWNED AT
DEC. 31, 2002(1)
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The Baron Director(2); Director since General Partner: Hottinger et Cie Member: Conseil de 268,443(3)
Hottinger Chairman of 1987. (Zurich); President: Conseil de Surveillance AXA; over $100,000
Hottinger the Board of Surveillance Credit Suisse/Hottinguer Administrator:
et Cie Directors (Paris); Sofibus (Paris) (real estate); Investissement Provence
Dreikonigstrasse and Chief Vice President and Director: Financiere SA (holding company);
55 Executive Hottinguer (holding company); AXA; AXA Assurances IARD;
8027 Zurich Officer from Administrator: Hottinger U.S., Inc. (USA); AXA Courtage IARD; AXA
Switzerland 1987 to Hottinguer Gestion (Luxembourg) Courtage VIE; AXA Assur-
1989. (investment advisor) until December 1998; ances Vie; AXA France
Age 68 Auditor: Didot Bottin; Financiere Provence Assurances; Alpha
de Participations (FPP) (venture capital); Assurances Vie; Finaxa;
Managing Director: Intercom (holding Hottinger International
company); Sofides (real estate); Vice Fund -- "U.S. Growth
President: Gaspee (real estate); Chairman Fund" (publicly-held
of the Board and Director: Hottinger Luxembourg mutual fund);
Capital Corp. ECU Invest (publicly-
held Luxembourg mutual
fund); Hottinguer
International Asset
Management (Luxembourg);
Hottinger U.S., Inc.
(USA); Member of the
Board: Conseil de
Surveillance of EMBA N.V.
(holding company);
Permanent Repre-
sentative: AXA to AXA
Millesime.

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CERTAIN INFORMATION CONCERNING DIRECTORS (CONTINUED)

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Mr. Paul R. Director(2); Director since Of Counsel: Salans Hertzfeld Heilbronn None 8,285
Brenner Secretary December 2002. Christy & Viener (law firm) since July $50,001-$100,000
Esq. from 1987 to 1996; Paul R. Brenner, Attorney-at-Law
25 Moore December 5, since June 1993; Counsel to the Fund from
Road 2002. May 1994 to December 5, 2002.
Bronxville,
New York
10708
Age 60

Class II Non-Interested Directors
(Term Will Expire in 2005)
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OTHER DIRECTORSHIPS HELD SHARES AND DOLLAR
NAME, POSITION(S) TERM OF OFFICE PRINCIPAL BY DIRECTOR OR NOMINEE FOR RANGE OF
ADDRESS WITH FUND AND LENGTH OF OCCUPATION(S) DIRECTOR COMMON STOCK
& AGE TIME SERVED DURING PAST FIVE YEARS BENEFICIALLY
OWNED AT
DEC. 31, 2002(1)
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Mr. Didier Director; Director since Honorary Chairman: Schneider Electric SA Director: AON (France); 2,185
Pineau- Member of 1999. (industrial conglomerate) since 1999; Fleury Michon (France); $10,001-$50,000
Valencienne the Audit Chairman of the Board and CEO: Schneider AFEP (France); Equitable
c/o Committee Electric SA (industrial conglomerate) from Companies Inc.
Schneider since 1999, 1981 until February 1999; Chairman: AFEP (insurance); Aventis, SA
Electric SA the from 1999 to 2001; Vice Chairman: Credit (Formerly Rhone-Poulenc
64 Rue de Litigation Suisse First Boston (Europe) Limited SA) (chemicals); Wendel
Miromesnil Committee (investment banking) since February 1, Investissements (formerly
75008 Paris since 2001, 1999; Senior Advisor: CSFB; Partner, PEPC CGIP); Foundation de
France and the Private Equity Partners (France). France; LaGardere (France)
Governance/ (holding company); Member:
Age 71 Nominating LaGardere (France)
Committee (holding company); ADNRE
since 2002. (France); Member of Board
of Trustees: IASC.
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Samuel B. Director; Director since Senior Vice President and General Counsel: Director: Global Energy 2,806
Witt, III, Chairman of 1987. Stateside Associates, Inc. since August Management Company, Inc.; $10,001-$50,000
Esq. the Audit 1993; Samuel B. Witt, III, Trustee: The Williamsburg Stateside
Associates, Inc Committee Attorney-at-Law, since August 1993. Investment Trust
2300 Clarendon since 1993, (registered investment company).
Blvd. and the Litigation
Suite 407 Committee
Arlington, since 2001,
Virginia Member of the
22201-3367 Governance/
Nominating
Age 67 Committee
since 2002.

THE SWISS HELVETIA FUND, INC.
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CERTAIN INFORMATION CONCERNING DIRECTORS (CONTINUED)

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CLASS III INTERESTED DIRECTOR
(TERM WILL EXPIRE IN 2003)
-----------------------------------------------------------------------------------------------------------------------------------
SHARES AND DOLLAR
NAME, POSITION(S) TERM OF OFFICE PRINCIPAL OTHER DIRECTORSHIPS RANGE OF
ADDRESS WITH FUND AND LENGTH OF OCCUPATION(S) HELD BY DIRECTOR COMMON STOCK
& AGE TIME SERVED DURING PAST FIVE YEARS BENEFICIALLY
OWNED AT
DEC. 31, 2002(1)
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Mr. Paul Director(2); Director since General Partner: Hottinger et Cie Director: Drouot 268,443(3)
Hottinguer Chairman of 1987. (Zurich); President: Gaspee (real estate) Securite; Member: Conseil over $100,000
Hottinger the Board of since 1992; Financiere Hottinguer (holding de Surveillance Credit
et Cie Directors company) since 1990; Financiere Provence Suisse Hottinguer;
Dreikonigstrasse since 1989; Participations (venture capital firm) Societe pour le
55 Chief since 1990; AXA International Obligation Financement de Bureaux et
8027 Zurich Executive (finance) since 1996; Hottinguer Gestion d'Usines Sofibus
Switzerland Officer from (Luxembourg) (investment advisor) from (real estate).
1989 to 1991 to 1998; Managing Director: Intercom
Age 60 2002. (holding company) since 1984; Vice
Chairman of the Board, Director and Member
of Investment Committee: Hottinger Capital
Corp; Administrator: Investissement
Hottinger SA since 1989; Finaxa (finance)
since 1982; Permanent Representative:
Credit Suisse Hottinguer to Provence
International (publicly held French mutual
fund); Credit Suisse Hottinguer to PPC;
Credit Suisse Hottinguer to Croissance
Britannia (investment fund); Credit Suisse
Hottinguer to Harwanne Allemagne.

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

CERTAIN INFORMATION CONCERNING DIRECTORS (CONCLUDED)

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

CLASS III NON-INTERESTED DIRECTORS
(TERM WILL EXPIRE IN 2003)
------------------------------------------------------------------------------------------------------------------------------------
SHARES AND DOLLAR
NAME, POSITION(S) TERM OF OFFICE PRINCIPAL OTHER DIRECTORSHIPS HELD RANGE OF
ADDRESS WITH FUND AND LENGTH OF OCCUPATION(S) BY DIRECTOR OR NOMINEE FOR COMMON STOCK
& AGE TIME SERVED DURING PAST FIVE YEARS DIRECTOR BENEFICIALLY
OWNED AT
DEC. 31, 2002(1)
------------------------------------------------------------------------------------------------------------------------------------

Mr. Claude Director; Director since E.B.R.D. -- European Bank for None 6,992
Mosseri-Marlio Member of 1993. Reconstruction and Development; Senior $50,001-$100,000
6 bis rue the Advisor: TAM Program (Turn Around
du Cloitre Nominating Management) since 1999; Financial
Notre-Dame Committee Consultant, portfolio management since
75004 Paris since 1993 1982; Professor, Schiller University,
France and the Paris since 1989; Professor, American
Governance/ Business School, Paris, since 1995; Guest
Age 72 Nominating Lecturer, Kelley School of Business,
Committee Indiana University, since 1998; Guest
since 2002. Lecturer, Fox School of Business, Temple
University, since 2002; Visiting
Professor, Tyumen State Institute of
Management, Tyumen, Russia, since 2002.
------------------------------------------------------------------------------------------------------------------------------------
Stephen K. Director; Director since Of Counsel: Sullivan & Cromwell (law firm) Director: Pioneer Funds 19,217
West, Esq. Member of 1995. since 1997. (registered investment over $100,000
Sullivan & the Audit company) (52 portfolios);
Cromwell Committee AMVESCAP PLC (Investment
125 Broad since 1996, Manager).
Street the
New York, Litigation
New York Committee
10004 since 2001
and the
Age 74 Governance/
Nominating
Committee
since 2002.

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

CERTAIN INFORMATION CONCERNING EXECUTIVE OFFICERS

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, 2002.

------------------------------------------------------------------------------------------------------------------------
EXECUTIVE OFFICERS
------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SHARES OF
NAME, POSITION(S) OCCUPATION(S) COMMON STOCK
ADDRESS & AGE WITH FUND OWNED AT DURING PAST BENEFICIALLY
FIVE YEARS DEC. 31, 2002(1)

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

Mr. Rodolphe E. President and Managing Partner: Hottinger et Cie (Zurich) since 1987; 284,759(3)
Hottinger(2) Chief President: Hottinger Capital, S.A. (Geneva) Over $100,000
Hottinger et Cie Executive (investment company) since 2000; Hottinger & Co.
3 Place des Bergues Officer Ltd, UK (investment advisor) since 2001; and
C.P. 395 Emba, NV (investment company) since 1990; Vice
CH-1201 Geneva Chairman of the Board, Director, Chief Executive
Switzerland Officer and Member of Investment Committee: Hottinger
Capital Corp. ("HCC") since 1994.
Age 46

------------------------------------------------------------------------------------------------------------------------
Mr.Rudolf Millisits(2) Senior Vice Director: HCC since December 2000; Chief Operating 7,035
Officer: 7,035 President, HCC since December 1998; Executive Vice President, $50,001-$100,000
Hottinger Capital Treasurer and Portfolio Manager, Member of Investment Committee
Corp. Chief Financial and Chief Compliance Officer: HCC since September 1994;
1270 Avenue of Officer Assistant Secretary: HCC since August 1995; Executive
the Americas Vice President: Hottinger U.S., Inc. since September 1994
Suite 400 and Assistant Secretary since August 1995; Assistant
New York, New York Vice President Hottinger & Cie, Geneva.
10020

Age 45
------------------------------------------------------------------------------------------------------------------------
Mr.Philippe R. Comby(2) Vice President Senior Vice President: HCC since 2002; First 2,500
Hottinger Capital Vice President: HCC from 1998 to 2002; Vice President: $10,001-$50,000
Corp. HCC from 1996 to 1998 and Hottinger U.S., Inc. since
1270 Avenue of 1996; Treasurer: HCC since 1997. Member of Investment
the Americas Committee: HCC since 1994.
Suite 400
New York, New York
10020

Age 36

------------------------------------------------------------------------------------------------------------------------
Mr. Edward J. Veilleux(2) Vice President President EJV Financial Services LLC (Investment 1,000
EJV Financial and Secretary Company Consulting) since May 2002; $10,001-$50,000
Services LLC Director: Deutsche Asset Management from 1999 to
5 Brook Farm Court 2002; Principal: BT Alex. Brown Incorporated from
Hunt Valley, MD 1989 to 1999; Executive Vice President,
21030 Investment Company Capital Corp. from 1987 to 2002;
Trustee; Devcap Shared Return Fund since 2000.
Age 59

--------------------------------------------------------------------------------
(1) ALL DIRECTORS AND EXECUTIVE OFFICERS AS A GROUP (14 PERSONS) OWNED 338,293
SHARES WHICH CONSTITUTES APPROXIMATELY 1.4% OF THE OUTSTANDING COMMON STOCK
OF THE FUND. SHARE NUMBERS IN THIS ANNUAL REPORT HAVE BEEN ROUNDED TO THE
NEAREST WHOLE SHARE.

(2) INDICATES "INTERESTED PERSON," AS DEFINED IN THE INVESTMENT COMPANY ACT OF
1940, AS AMENDED (THE "1940 ACT"). PAUL HOTTINGUER AND THE BARON HOTTINGER
ARE BROTHERS AND RODOLPHE E. HOTTINGER IS THE SON OF THE BARON. PAUL
HOTTINGUER, THE BARON HOTTINGER, AND RODOLPHE E. HOTTINGER ARE

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

CERTAIN INFORMATION CONCERNING EXECUTIVE OFFICERS (CONCLUDED)

"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 HCC. PAUL R. BRENNER IS AN "INTERESTED PERSON"
BECAUSE HE SERVED AS COUNSEL TO THE FUND, COUNSEL TO HCC AND OF COUNSEL TO
SALANS HERTZFELD HEILBRONN CHRISTY & VEINER, WHICH SERVED AS GENERAL COUNSEL
FOR THE FUND DURING THE LAST TWO YEARS. IN ADDITION, RODOLPHE E. HOTTINGER,
RUDOLF MILLISITS, PHILIPPE R. COMBY, AND EDWARD J. VEILLEUX ARE CONSIDERED
"INTERESTED PERSONS" BECAUSE EACH IS AN OFFICER OF THE FUND.

(3) HOTTINGER ET CIE (ZURICH), A PARTNERSHIP, OWNS 152,260 SHARES OF THE FUND,
HCC OWNS 107,964 SHARES OF THE FUND, AND HOTTINGER TREUHAND AG OWNS 8,219
SHARES OF THE FUND. PAUL HOTTINGUER, THE BARON HOTTINGER, AND RODOLPHE E.
HOTTINGER ARE CONTROLLING PARTNERS OF HOTTINGER ET CIE (ZURICH) AND
CONTROLLING SHAREHOLDERS AND DIRECTORS OF HCC AND HOTTINGER TREUHAND AG AND
THEREFORE SHARE VOTING AND INVESTMENT POWER OVER THE 268,443 SHARES OF THE
FUND OWNED BY HOTTINGER ET CIE (ZURICH), HCC, AND HOTTINGER TREUHAND AG. IN
ADDITION, RODOLPHE E. HOTTINGER AND HIS CHILDREN DIRECTLY OWN 16,316 SHARES
OF THE FUND.

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

REVIEW OF OPERATIONS

Trading Activity for 2002 involved changes in the following positions:

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

Geberit AG
Givaudan SA
Micronas Semiconductor Holding AG
SGS Societe Generale de Surveillance Holding SA
Swiss Life Holding
Syngenta AG
Unaxis Holding AG
Zurich Financial Services AG

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

Baloise Holding AG
Converium Holding AG
Phonak Holding AG
Schindler Holding AG
Sika AG
The Swatch Group Ltd.

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

Adecco SA
Bank Sarasin & Co.
Compagnie Financiere Richemont AG
Daetwyler Holding Inc.
Disetronic Holding Ltd.
Galenica Holding Ltd.
Gurit-Heberlein AG
Huber & Suhner AG
Jelmoli Holding AG
Julius Baer Holdings AG
Kaba Holding AG
Kudelski SA
Logitech International SA
Schaffner Holding Ltd.
Serono SA
Straumann Holding AG
Swisscom AG
Tecan Group, Ltd.
Vontobel Holding AG

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

Berna Biotech AG
Credit Suisse Group
Holcim Ltd.
Komax Holding AG
Lonza Group AG
Novartis AG
Swiss Reinsurance Company

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

SCHEDULE OF INVESTMENTS DECEMBER 31, 2002

NO. OF PERCENT
SHARES SECURITY VALUE NET ASSETS
----------------------------------------------------------------
COMMON STOCK -- 84.99%

BANKS -- 7.56%

435,000 UBS AG(2)
REGISTERED SHARES $ 21,141,245 7.56%
Attracts deposits and offers
commercial and investment
banking services.
(Cost $7,578,949)
------------ ------
21,141,245 7.56

BIOTECHNOLOGY -- 0.33%

104,940 BERNA BIOTECH AG(1)
REGISTERED SHARES 910,739 0.33
Produces vaccines for
influenza, hepatitis, travel
and general immunization.
(Cost $1,621,187)
------------ ------
910,739 0.33

BUILDING CONTRACTORS AND MATERIALS -- 0.54%

8,295 HOLCIM LTD.
BEARER SHARES 1,505,782 0.54
Produces and markets various
building materials, in
addition to providing
consulting and engineering
services in all areas of the
cement manufacturing process.
(Cost $1,515,254)
------------ ------
1,505,782 0.54

CHEMICALS -- 9.57%

22,582 GIVAUDAN SA(2)
REGISTERED SHARES 10,125,725 3.62
Manufactures and markets
fragrances and flavors from
natural and synthetic
ingredients.
(Cost $8,939,271)

NO. OF PERCENT
SHARES SECURITY VALUE NET ASSETS
----------------------------------------------------------------
COMMON STOCK -- 84.99%

CHEMICALS -- (CONTINUED)

12,112 LONZA GROUP AG
REGISTERED SHARES $ 735,812 0.26%
The leading supplier of active
chemical ingredients,
intermediates, and
biotechnology solutions to the
pharmaceutical and
agrochemical industries.
(Cost $658,821)

16,783 SIKA AG
BEARER SHARES 4,333,211 1.55
Leading producer of
construction chemicals.
(Cost $4,237,473)

200,282 SYNGENTA AG(2)
REGISTERED SHARES 11,595,121 4.14
Produces herbicides,
insecticides, and fungicides,
and seeds for field crops,
vegetables, and flowers.
(Cost $11,821,824)
------------ ------
26,789,869 9.57

ELECTRICAL ENGINEERING & ELECTRONICS -- 2.72%

4,055 BELIMO HOLDING AG
REGISTERED SHARES 1,002,972 0.36
World market leader in damper
and volume control actuators
for ventilation and
air-conditioning equipment.
(Cost $1,259,329)

80,000 PHONAK HOLDING AG
REGISTERED SHARES 752,152 0.27
Designs and produces wireless
analog and digital hearing
aids and miniaturized voice
communication systems.
(Cost $764,245)

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

SCHEDULE OF INVESTMENTS (CONTINUED) DECEMBER 31, 2002

NO. OF PERCENT
SHARES SECURITY VALUE NET ASSETS
----------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)

ELECTRICAL ENGINEERING & ELECTRONICS -- (CONTINUED)

5,400 SAIA-BURGESS ELECTRONICS HOLDING AG
REGISTERED SHARES $ 1,327,837 0.47%
Develops and produces
switches, motors and
programmable control devices.
Products are mainly used in
the automobile, heating & air
conditioning and
telecommunications industries.
(Cost $1,485,298)

54,333 THE SWATCH GROUP LTD.
BEARER SHARES 4,518,909 1.62
Manufactures watches, watch
components and
microelectronics. Produces
machine tools for scientific,
medical and industrial use.
(Cost $3,776,078)
------------ ------
7,601,870 2.72

FINANCIAL SERVICES -- 3.49%

450,000 CREDIT SUISSE GROUP(2)
REGISTERED SHARES 9,763,506 3.49
A global operating financial
group.
(Cost $6,490,024)
------------ ------
9,763,506 3.49
FOOD & LUXURY GOODS -- 16.34%

300 LINDT & SPRUNGLI AG
REGISTERED SHARES 1,865,914 0.67
Major manufacturer of premium
Swiss chocolates.
(Cost $1,196,399)

207,000 NESTLE SA(2)
REGISTERED SHARES 43,864,180 15.67
Largest food and beverage
processing company in the
world.
(Cost $12,427,541)
------------ ------
45,730,094 16.34

NO. OF PERCENT
SHARES SECURITY VALUE NET ASSETS
----------------------------------------------------------------

COMMON STOCKS -- (CONTINUED)

INSURANCE -- 5.96%
115,000 BALOISE HOLDING AG
REGISTERED SHARES $ 4,574,383 1.63%
Medium-sized insurer active in
all sectors of insurance.
(Cost $5,106,175)

61,000 CONVERIUM HOLDING AG(1)
REGISTERED SHARES 2,955,811 1.06
Provides life and non-life
reinsurance worldwide.
(Cost $2,781,688)

26,000 SCHWEIZERISCHE
RUCKVERSICHERUNGS-
GESELLSCHAFT (SWISS
REINSURANCE COMPANY)
REGISTERED SHARES 1,705,504 0.61
Second largest reinsurance
company in the world.
(Cost $1,969,348)

74,000 SWISS LIFE HOLDING(1,2)
REGISTERED SHARES 5,766,616 2.06
Provides life insurance,
institutional investment
management, and private
banking services.
(Cost $6,250,607)

18,000 ZURICH FINANCIAL SERVICES AG
REGISTERED SHARES 1,679,323 0.60
Offers property, accident,
health, automobile, liability,
financial risk and life
insurance and retirement
products.
(Cost $1,917,129)
------------ ------
16,681,637 5.96

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

SCHEDULE OF INVESTMENTS (CONTINUED) DECEMBER 31, 2002

NO. OF PERCENT
SHARES SECURITY VALUE NET ASSETS
----------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)

MACHINERY -- 2.72%

39,000 SCHINDLER HOLDING AG(2)
REGISTERED SHARES $ 7,601,433 2.72%
One of the world's largest elevator
companies and a leading Swiss
machinery enterprise.
(Cost $5,760,265)
------------ ------
7,601,433 2.72

MISCELLANEOUS INDUSTRIES -- 0.08%

7,025 KOMAX HOLDING AG
REGISTERED SHARES 234,218 0.08
Seller of wire processing
machines. Most important
markets are the car, household
appliance, telecommunications
and electronics industries.
(Cost $250,918)
------------ ------
234,218 0.08

MISCELLANEOUS SERVICES -- 3.01%

28,001 SGS SOCIETE GENERALE DE
SURVEILLANCE HOLDING SA(2)
REGISTERED SHARES 8,424,399 3.01
Provides a variety of
industrial inspection,
analysis, testing and
verification services
worldwide.
(Cost $7,199,008)
------------ ------
8,424,399 3.01
PHARMACEUTICALS -- 29.64%

1,375,000 NOVARTIS AG(2)
REGISTERED SHARES 50,169,053 17.93
One of the leading
manufacturers of
pharmaceutical and nutrition
products. (Cost $17,411,720)

NO. OF PERCENT
SHARES SECURITY VALUE NET ASSETS
----------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)

PHARMACEUTICALS -- (CONTINUED)

470,000 ROCHE HOLDING AG(2)
DIVIDEND RIGHTS CERTIFICATES $ 32,750,777 11.71%
Worldwide pharmaceutical
company.
(Cost $10,193,328)
------------ ------
82,919,830 29.64

TECHNOLOGY -- 1.29%

98,593
MICRONAS SEMICONDUCTOR HOLDING AG(1)
REGISTERED SHARES 1,732,704 0.62
Develops and manufactures a
wide range of semiconductors
and modules used by the
automotive and consumer goods
industries.
(Cost $2,160,064)

28,209 UNAXIS HOLDING AG
REGISTERED SHARES 1,887,128 0.67
Provider of systems and IT
services, including
semiconductors, data storage
and displays, as well as
surface technology and space
applications.
(Cost $2,129,835)
------------ ------
3,619,832 1.29
TRANSPORTATION -- 1.49%

66,200 KUEHNE & NAGEL INTERNATIONAL
AG
REGISTERED SHARES 4,165,329 1.49
Operates sea freight, land and
rail transportation businesses
and warehousing and
distribution facilities.
(Cost $3,446,629)
------------ ------
4,165,329 1.49

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

SCHEDULE OF INVESTMENTS (CONCLUDED) DECEMBER 31, 2002

NO. OF PERCENT
SHARES SECURITY VALUE NET ASSETS
----------------------------------------------------------------
COMMON STOCKS -- (CONCLUDED)

UTILITIES -- 0.25%

2,468 GEBERIT AG
REGISTERED SHARES $ 710,396 0.25%
Manufactures and supplies
water supply pipes and
fittings, installation
systems, drainage and flushing
systems such as visible
cisterns, and other sanitary
systems for the commercial and
residential construction
markets.
(Cost $666,597)
------------ ------
710,396 0.25

TOTAL COMMON STOCKS
(Cost $131,015,004)(3) $237,800,179 84.99%

OTHER ASSETS IN EXCESS OF 41,998,537 15.01
LIABILITIES
------------ ------
NET ASSETS $279,798,716 100.00%
============ ======

--------------------------------------------------------------------------------
(1) NON-INCOME PRODUCING SECURITY.
(2) ONE OF THE TEN LARGEST PORTFOLIO HOLDINGS.
(3) AGGREGATE COST FOR FEDERAL TAX PURPOSES IS $132,490,616.
SEE NOTES TO THE FINANCIAL STATEMENTS.

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

STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 2002

ASSETS:
Investments, at value (cost $131,015,004)................ $237,800,179
Cash..................................................... 1,037,034
Foreign currency (cost $44,786,153)...................... 49,179,877
Receivable for securities sold........................... 4,183,865
Interest receivable...................................... 7,649
Tax reclaims receivable.................................. 917,896
Prepaid expenses and other............................... 26,264
------------
Total assets.......................................... 293,152,764
------------
LIABILITIES:
Capital gain distribution payable........................ 12,807,098
Advisory fees payable (Note 2)........................... 199,362
Audit and legal fees payable............................. 87,796
Custody fees payable..................................... 70,567
Administration fees payable.............................. 44,997
Transfer agent fees payable.............................. 23,640
Accounting fees payable.................................. 15,674
Accrued expenses and other............................... 104,914
------------
Total liabilities..................................... 13,354,048
------------
Net assets............................................ $279,798,716
------------
COMPOSITION OF NET ASSETS:
Paid in capital.......................................... 168,183,946
Accumulated net realized gain (loss) from investment
transactions........................................... 249,959
Net unrealized appreciation on investments and foreign
currencies............................................. 111,364,811
------------
Net assets............................................... $279,798,716
------------
NET ASSET VALUE PER SHARE:
($279,798,716 / 23,673,009 shares outstanding)........... $ 11.82
============

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

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

STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2002

INVESTMENT INCOME:
Dividends (less foreign taxes withheld of $545,103)...... $ 3,183,638
Interest................................................. 413,048
------------
Total income.......................................... 3,596,686
------------
EXPENSES:
Investment advisory fees (Note 2)........................ 2,511,744
Professional fees........................................ 292,730
Directors' fees & expenses............................... 341,177
Administration fees...................................... 254,145
Custody fees............................................. 155,737
Printing and shareholder reports......................... 102,946
Accounting fees.......................................... 97,120
Franchise taxes.......................................... 57,320
Transfer agent fees...................................... 94,056
Miscellaneous............................................ 130,387
------------
Total expenses........................................ 4,037,362
------------
Expenses in excess of net investment income........... (440,676)
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gain (loss) from:
Investment transactions............................... 13,569,040
Foreign currency transactions......................... (940,306)
Net change in unrealized appreciation/depreciation on
investments and foreign currencies................... (29,587,930)
------------
Net Realized and Unrealized Gain (Loss) on Investments
and foreign currencies............................... (16,959,196)
------------
NET DECREASE IN NET ASSETS FROM OPERATIONS.................. $(17,399,872)
============

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

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

STATEMENT OF CHANGES IN NET ASSETS

FOR THE YEARS ENDED DECEMBER 31,
------------------------------------
2002 2001
-------------------------------------------------------------------------------------------------

INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment (expenses in excess of) income.......... $ (440,676) $ (793,778)
Net realized gain from investment and foreign currency
transactions........................................ 12,628,734 6,224,569
Net change in unrealized appreciation/depreciation on
investments and foreign currencies.................. (29,587,930) (109,534,341)
------------ -------------
Net decrease in net assets from operations............. (17,399,872) (104,103,550)
------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.................................. (1,532,859) --
In excess of net investment income..................... (178,799) --
Net realized capital gains............................. (13,163,694) (7,360,963)
------------ -------------
Total distributions to shareholders................. (14,875,352) (7,360,963)
------------ -------------
CAPITAL SHARE TRANSACTIONS:
Value of shares issued in reinvestment of dividends and
distributions....................................... -- 16,795,124
Value of shares repurchased through stock buyback...... (2,361,886) (6,209,492)
------------ -------------
Total increase (decrease) from capital share
transactions........................................ (2,361,886) 10,585,632
------------ -------------
Total decrease in net assets........................... (34,637,110) (100,878,881)
NET ASSETS:
Beginning of year...................................... 314,435,826 415,314,707
------------ -------------
End of year (including undistributed net investment
income of $0 and $1,532,859, respectively).......... $279,798,716 $ 314,435,826
============ =============

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

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

FINANCIAL HIGHLIGHTS

FOR THE YEARS ENDED DECEMBER 31,
--------------------------------------------------------
2002 2001 2000 1999 1998
-----------------------------------------------------------------------------------------------------------

PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of year.......... $ 13.16 $ 17.92 $ 17.52 $ 19.07 $ 16.48
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (expenses in excess of
income)..................................... (0.02) (0.03) 0.00(1) 0.01 0.00(1)
Net realized and unrealized gain (loss) on
investments(2).............................. (0.71) (4.34) 1.68 (0.60) 3.60
-------- -------- -------- -------- --------
Total from investment operations.............. (0.73) (4.37) 1.68 (0.59) 3.60
-------- -------- -------- -------- --------
Gain from capital share repurchases........... 0.02 0.06 0.21 0.12 --
Capital change resulting from the issuance of
fund shares................................. -- (0.14) (0.12) -- --
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income.......... (0.06) -- -- (0.03) (0.07)
Distributions in excess of net investment
income...................................... (.01) -- -- -- --
Distributions from net realized capital
gains....................................... (.56) (0.31) (1.37) (1.05) (0.94)
-------- -------- -------- -------- --------
Total distributions........................... (0.63) (0.31) (1.37) (1.08) (1.01)
-------- -------- -------- -------- --------
Net asset value at end of year................ $ 11.82 $ 13.16 $ 17.92 $ 17.52 $ 19.07
======== ======== ======== ======== ========
Market value per share at end of year......... $ 9.64 $ 11.00 $ 14.50 $ 13.81 $ 16.00
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN:(3)
Based on market value per share............... (4.46)% (22.10)% 15.06% (7.06)% 23.82%
Based on net asset value per share............ (6.92)% (24.94)% 12.11% (1.09)% 22.89%
RATIOS TO AVERAGE NET ASSETS:
Expenses...................................... 1.31% 1.39%(4) 1.16% 1.11% 1.09%
Net investment income (expenses in excess of
income)..................................... (0.14)% (0.23)% 0.01% 0.05% 0.01%
SUPPLEMENTAL DATA:
Net assets at end of year (000's)............. $279,799 $314,436 $415,315 $416,599 $469,916
Average net assets during period (000's)...... $308,018 $341,806 $422,426 $428,072 $464,967
Shareholders of record(5)..................... 1,001 1,067 1,125 1,230 1,287
Portfolio turnover rate....................... 83% 32% 25% 14% 13%

--------------------------------------------------------------------------------
(1) LESS THAN $.01 PER SHARE
(2) INCLUDES NET REALIZED 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. RETURNS FROM 1998
HAVE BEEN RESTATED TO REFLECT SUBSEQUENT CHANGES TO DIVIDEND REINVESTMENT
CALCULATIONS.
(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 TERMINATION OF THE MANAGEMENT CONTRACT AND 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 THE 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.

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 under procedures established by
and under the general supervision of the Fund's Board of Directors. 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, 2002, 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 an expense, net of any amount
receivable from Swiss tax authorities in accordance with the tax treaty between
the United States and Switzerland.

D. DISTRIBUTIONS
At least once a year, the Fund pays dividends to the extent it has any net
investment income 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 shareholders. Therefore, no federal
income tax provision is required.

F. SECURITIES LENDING
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. The Fund requires the borrowers of the
securities to maintain collateral with the Fund in the form of cash and/or
government securities equal to 102% 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. The Fund did not
engage in any securities lending activity for the year ended December 31, 2002.

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

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

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.

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.

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, 2002, the Fund paid the
Advisor $2,511,744 in investment advisory fees. The Fund paid Hottinger & Cie
$114,255 in brokerage commissions for the year ended December 31, 2002.

The Fund and the Advisor have agreed to share certain common expenses subject to
review and allocation by the Audit Committee of the Fund's Board of Directors.
The Committee's allocations are based on its determination of the relative
benefits the Fund and the Advisor derive from the expenditures. During 2002, the
Committee allocated $11,166 of expenses incurred in connection with publicizing
the Fund as follows: $5,583 to the Fund and $5,583 to the Advisor.

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

NOTE 3-- OTHER FEES
Forum Administrative Services, LLC ("FAdS") is the Fund's Administrator. FAdS
receives, for its services, an annual fee based on the Fund's average daily net
assets which is calculated daily and paid monthly at the following annual rates:
0.08% on the first $250 million, 0.05% on the next $250 million, and 0.03% on
assets in excess of $500 million. Prior to May 28, 2002, Investment Company
Capital Corp. ("ICCC"), an indirect, wholly owned subsidiary of Deutsche Bank
AG, served as the Fund's Administrator. For the year ended December 31, 2002,
the Fund paid $139,330 to FAdS and $114,815 to ICCC.

Forum Accounting Services, LLC ("FAcS") is the Fund's accountant. FAcS receives,
for its services, a monthly fee of $5,000 plus an annual fee based on the Fund's
average daily net assets which is calculated daily and paid monthly at the
following annual rates: 0.01% of the first $500 million and 0.005% on assets in
excess of $500 million. FAcS also receives reimbursement for certain, reasonable
out-of-pocket expenses. Prior to May 28, 2002, ICCC served as the Fund's
accountant. For the year ended December 31, 2002, the Fund paid $53,552 to FAcS
and $43,568 to ICCC.

PFPC Inc. is the Fund's transfer agent. The Fund pays the transfer agent a per
account 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 (CONTINUED)

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 Administrator approximately
$15,000 per annum in compensation, except for the Chairman of the Audit
Committee, who the Fund pays an annual fee of approximately $16,500. In
addition, the Fund pays each disinterested director $750 for each directors'
meeting attended and $750 for each committee meeting attended, if it is held
separately. In addition, the Fund reimburses directors that are not employees of
or affiliated with the Fund's 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 107,964 of the 23,673,009 shares outstanding on December 31, 2002.
Transactions in capital shares were as follows:

For the Year Ended For the Year Ended
December 31, 2002 December 31, 2001
---------------------- -----------------------
Shares Amount Shares Amount
------ ------ ------ ------

Dividend
Reinvestments -- -- 1,177,572 $16,795,124(a)
Repurchased (219,700) (2,361,886) (463,600) (6,209,492)
-------- ----------- --------- -----------
Net increase
(decrease) (219,700) ($2,361,886) 713,972 $10,585,632
======== =========== ========= ===========

(a) REPRESENTS SHARES ISSUED TO STOCKHOLDERS WHO DID NOT ELECT CASH IN
CONNECTION WITH A CAPITAL GAINS DISTRIBUTION OF $1.32 PER SHARE PAID JANUARY
11, 2001 TO STOCKHOLDERS OF RECORD ON DECEMBER 18, 2000.

NOTE 5-- FEDERAL INCOME TAX AND INVESTMENT
TRANSACTIONS
At December 31, 2002, capital contributions, accumulated undistributed 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.

Undistributed
Undistributed Net Net Realized Paid-in
Investment Income Gain Capital
----------------- ------------- -------

$619,476 $761,507 $(1,380,983)

At December 31, 2002, the net unrealized appreciation from investments for those
securities having an excess of value over cost and net unrealized depreciation
from investments for those securities having an excess of cost over value (based
on cost of $132,490,616 for federal income tax purposes) was $108,886,295 and
$3,576,732, respectively. The difference between book basis and tax-basis
unrealized appreciation is primarily attributable to the tax deferral of losses
on wash sales.

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

The tax character of distributions paid during 2002 and 2001 was as follows (see
page 29 for details):

2002 2001
---- ----

Ordinary income $ 1,695,514 --
Long-term capital gains $ 1,289,517 $7,360,963
Long-Long-term capital gains $11,890,321 --

At December 31, 2002, the components of distributable earnings on a tax basis
were as follows:

Long-term capital gains $ 3,189,071
Unrealized appreciation $105,309,563

The aggregate cost of purchases and proceeds from sales of investments, other
than short-term obligations, for the year ended December 31, 2002, were
$234,336,516 and $278,461,772, respectively.

For tax purposes, the Fund had a current year deferred post-October loss of
$1,463,498. This loss will be recognized for tax purposes on the first day of
the following tax year.

NOTE 6-- STOCK REPURCHASE PROGRAM
Pursuant to authorization by the Board of Directors, the Fund began open market
purchases of its common stock on the New York Stock Exchange in 1999 and has
continued purchases in each subsequent year. The Board has authorized the
purchase of up to 500,000 shares in 2003. During the year ended December 31,
2002, the Fund repurchased and retired 219,700 shares at an average price of
$10.75 per share (including broker commissions) and a weighted average discount
of 16.90%. These repurchases, which had a total cost of

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

NOTES TO FINANCIAL STATEMENTS (CONCLUDED)

$2,361,886, resulted in an increase of $513,051 to the Fund's net asset value.

NOTE 7-- LITIGATION
On April 2, 2001 and May 8, 2001, two complaints were filed in purported class
actions on behalf of stockholders of the Fund, in the Court of Chancery of the
State of Delaware, against the Fund, each of its directors and HCC, the Fund's
Investment Advisor (collectively, the "defendants"). The complaints in these
cases, entitled Kimberly Kahn v. Paul Hottinguer et al. and Charles Miller v.
Paul Hottinguer et al., allege that the defendants have: (A) breached fiduciary
duties to stockholders and violated Section 109(a) of the Delaware General
Corporation Law by adopting amendments to the Fund's Bylaws requiring a vote of
75% of the Fund's outstanding shares to alter, amend or repeal the Bylaws or to
adopt other bylaws; (B) breached fiduciary duties to stockholders by adopting
amendments to the Fund's Bylaws requiring nominees for election as directors to
satisfy certain qualifications; and (C) breached fiduciary and contractual
duties through the manner in which the Fund effected a capital gains
distribution in December 2000. The complaints seek as relief among other things:
(i) a declaration that the defendants have breached their fiduciary duties to
stockholders and that the amendments to the Bylaws are null and void; (ii) an
injunction in connection with any meeting of stockholders preventing the
defendants from enforcing the Bylaw amendments; and (iii) certain unspecified
damages. The claims relating to the Bylaws were voluntarily dismissed by the
plaintiffs as moot. The defendants have moved to dismiss the capital gains
distribution claims on the grounds that they fail to state a claim upon which
relief can be granted. The parties have reached an agreement in principle to
settle the remaining claims and are in the process of preparing the necessary
papers to submit the settlement to the Court for approval. Although the ultimate
outcome of the lawsuit cannot be ascertained, it is the opinion of management
after consultation with outside legal counsel that the resolution of such suits
will not have a material adverse effect on the financial statements of the Fund.

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

INDEPENDENT AUDITORS' REPORT

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

We have audited the accompanying statement of assets and liabilities of The
Swiss Helvetia Fund, Inc., including the schedule of investments, as of December
31, 2002, and the related statement 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
audit.

We conducted our audit in accordance with auditing standards generally accepted
in the United States of America. 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. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 2002, by correspondence with the custodian.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides 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
Swiss Helvetia Fund, Inc. as of December 31, 2002, 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
New York, New York
February 14, 2003

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.

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.
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, 2002.

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

Foreign Source Income 6/7/02 6/14/02 $0.071
------
Total Ordinary Income $0.071
Long-Term Capital Gains 6/7/02 6/14/02 $0.016
Long-Term Capital Gains 12/19/02 1/14/03 $0.541
------
Total Long-Term Capital
Gains $0.557
------
Total Distributions $0.628
======

The Fund has elected to pass through $.021855 per share to its shareholders as a
credit for taxes paid to Switzerland during its fiscal year ended December 31,
2002.

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

TAX INFORMATION FOR THE TAX YEAR ENDED DECEMBER 31, 2002 (UNAUDITED)

The amounts may differ from those elsewhere in this report because of
differences between tax and financial reporting requirements. The Fund's
distributions to shareholders of long-term capital gains included $372,739 in
connection with the distribution paid June 14, 2002 to shareholders of record on
June 7, 2002, and $12,807,098 in connection with the distribution paid January
14, 2003 to shareholders of record on December 19, 2002.

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

DIVIDEND REINVESTMENT PLAN (UNAUDITED)

THE PLAN

The Swiss Helvetia Fund's (the "Fund") Dividend Reinvestment Plan (the
"Plan") offers you a convenient way to invest your income dividends and capital
gains distributions in additional shares of the Fund's common stock thereby
increasing your holdings of the Fund's shares. The federal, state and local tax
consequences are the same whether you receive dividends and capital gains
distributions in cash or in Fund shares.

The Plan is designed to allow all stockholders an opportunity to
participate. Some of the Plan features are:

1. Dividend reinvestment automatically increases the number of shares you own.

2. Dividends and distributions are reinvested in additional shares at the lower
of net asset value or market price.

3. Shares purchased through the Plan are recorded in your account.

4. You may terminate your Plan account at any time.

You may not be able to participate in the Plan if your Fund shares are held
at a brokerage firm. If the brokerage firm does permit such participation, you
may not be able to transfer such shares to another broker who does not permit
such participation. You are encouraged to contact your brokerage firm to
determine any restrictions upon participation.

HOW DO I ENROLL IN THE PLAN?

To participate in the Fund's Dividend Reinvestment Plan, please contact your
broker or PFPC, Inc. ("PFPC").

To start the Plan at the time a specific dividend is distributed, please
forward the required form to your broker or PFPC 10 days prior to the record
date for that dividend or distribution.

HOW DOES THE PLAN WORK?

When a dividend or distribution is declared, non-participants in the Plan
will receive cash. Plan participants will receive the equivalent in shares of
the Fund valued at the lower of the market price or net asset value as described
below.

1. Whenever net asset value is equal to or less than market price by no more
than 5% at the time of valuation, you will be issued shares at net asset value.

2. If the net asset value is less than 95% of the market price on the valuation
date, you will be issued shares at 95% of the price of the shares.

3. If the net asset value exceeds the market price on the valuation date, PFPC,
as agent for the participants, will buy shares on the open market on the New
York Stock Exchange or elsewhere, for your account

If, before PFPC has completed its purchase, the market price exceeds the net
asset value, the average per share purchase price paid by PFPC may exceed the
net asset value, resulting in the acquisition of fewer shares than if the
dividend or distribution had been paid in shares issued by the Fund at net asset
value.

WILL THE ENTIRE AMOUNT OF MY DISTRIBUTION BE
REINVESTED?

As a Plan participant, the entire amount of your distribution will be
reinvested. For any balance that is insufficient to purchase a whole share, the
amount will be credited to your account in fractional shares.

You will be issued a stock certificate upon request.

IS THERE ANY CHARGE TO PARTICIPATE IN THE PLAN?

There is no charge to participants for reinvesting dividends or
distributions. PFPC's fee for handling the reinvestment of dividends and
distributions will be paid by the Fund. There will be no brokerage charge to
stockholders for shares issued directly by the Fund as a result of dividends or
distributions payable either in stock or cash. Each participant, however, will
pay a pro rata share of brokerage commissions incurred with respect to PFPC's
open market purchases in connection with the reinvestment of dividends or
distributions.

HOW CAN I DISCONTINUE MY PARTICIPATION IN THE PLAN?

You may terminate your account under the Plan by notifying your broker or
PFPC in writing. Upon termination, you will receive a certificate for the number
of shares held in the Plan.

WHERE CAN I DIRECT MY QUESTIONS AND CORRESPONDENCE?

Questions and correspondence concerning the Plan should be directed to:

PFPC, Inc.
P.O. Box 43027
Providence, RI 02940-3027
1-800-331-1710

A SWISS THE SWISS
INVESTMENTS -------------------
FUND HELVETIA
-------------------
FUND, INC.
-------------------
www.swz.com

THE SWISS HELVETIA FUND, INC.
EXECUTIVE OFFICES
The Swiss Helvetia Fund, Inc.
1270 Avenue of the Americas ANNUAL REPORT
Suite 400 FOR THE YEAR ENDED
New York, NY 10020 DECEMBER 31, 2002
1-888-SWISS-00
(212) 332-2760
http://www.swz.com