THE SWISS
HELVETIA
FUND, INC.
www.swz.com
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, NY 10020
1-888-SWISS-00
(212) 332-2760
http://www.swz.com
QUARTERLY REPORT
FOR THE PERIOD ENDED
SEPTEMBER 30, 2001
THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Directors and Officers
Paul Hottinguer
CHAIRMAN AND
CHIEF EXECUTIVE OFFICER
Eric R. Gabus
VICE CHAIRMAN (NON OFFICER)
Alexandre de Takacsy
DIRECTOR
Claude Frey
DIRECTOR
Baron Hottinger
DIRECTOR
Claude Mosseri-Marlio
DIRECTOR
Didier Pineau-Valencienne*
DIRECTOR
Stephen K. West, Esq.*
DIRECTOR
Samuel B. Witt III, Esq.**
DIRECTOR
Rodolphe E. Hottinger
PRESIDENT AND
CHIEF OPERATING OFFICER
Rudolf Millisits
SENIOR VICE PRESIDENT
Philippe Comby
VICE PRESIDENT
Sharon Kanovsky
VICE PRESIDENT
Edward J. Veilleux
VICE PRESIDENT AND TREASURER
Paul R. Brenner, Esq.
SECRETARY
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* AUDIT COMMITTEE MEMBER
** AUDIT COMMITTEE CHAIRMAN
The Investment Advisor
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, London, Geneva, 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.
Net Asset Value is calculated daily by 6:00 P.M. (Eastern Standard 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.
INVESTMENT ADVISOR
Hottinger Capital Corp.
1270 Avenue of the Americas
Suite 400
New York, New York 10020
(212) 332-7930
ADMINISTRATOR
Investment Company Capital Corp.
CUSTODIAN
Swiss American Securities Inc.
TRANSFER AGENT
PFPC,Inc.
P.O. Box 43027
Providence, RI 02940-3027
(800) 331-1710
LEGAL COUNSEL
Paul R. Brenner, Esq. and
Salans Hertzfeld Heilbronn
Christy & Viener
INDEPENDENT AUDITORS
Deloitte & Touche LLP
1
THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders
MACRO-ECONOMIC DEVELOPMENTS
The economies of the United States and Western Europe continue to deal with
a sharp decline in capital expenditures. This situation was created by
adjustments that were necessary to absorb excess capacity. The excess capacity
came from the misallocation of capital reinforced by the financial market bubble
of 1999 and early 2000. The deflating of this bubble is now affecting consumer
confidence and spending mainly because of the negative wealth effect of a
slumping stock market and the increasing unemployment rate.
The dramatic events of September 11th have accelerated the slowdown in the
economy. However, the global economy will get much more help from both central
bankers and governments. While this will probably not prevent questions of weak
or negative GDP growth, it will allow the economy to repair itself. Mostly, it
should prevent a big surge in risk premiums that would paralyze all economical
initiatives from the private sector.
The disruptions of the September 11th attack and the need to increase
security and redundancies in the economy (back-up systems) should, in the short
run, reduce economic output and productivity. However, the massive amount of
liquidity injected into Europe and the United States, where real returns on Fed
fund rates are now close to zero, will allow consumer and corporate balance
sheets to be restructured, and will keep the longer term prospects of the
economy intact.
In the meantime, it will be difficult for most companies to generate cash
flow. They are confronted with deflation in prices paid for goods and services.
The necessity to maintain infrastructure while capacity utilization is low, and
the downsizing of the labor force are resulting in massive cash and non-cash
changes. In addition, financing is more difficult despite the lower Fed funds
rate. This is due to the tightening of credit standards and the tendency of
spreads between corporate debt and risk free rates to widen.
For Europe, the debate over how to revive the economy is complex. On the
monetary policy side, the European Central Bank (ECB) feels that it can not
respond to political pressure to reduce interest rates without damaging its
credibility. As a result, it is dragging its feet in the process of relaxing
monetary policy. Moreover, the ECB is more focused on inflation than on economic
growth targets. On the fiscal policy side, European leaders, even though some of
them face elections next year, can not increase spending in the face of income
tax revenues falling without endangering the Stability Pact. All of this is
resulting in slower action than in the U.S. and is posing some additional risk
to the European economies and their ability to keep the euro in a tight price
range against the U.S. dollar.
2
THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Letter to Stockholders (continued)
THE SWISS ECONOMY
The most immediate impact of September 11th was the upside pressure on the
Swiss franc because of its status as a safe haven. The Swiss national bank
reacted immediately, by twice lowering its target rates by 50 basis points each
on September 17th and September 24th. The bank mentioned that the rise of the
Swiss franc against the euro, in the face of worsening global economic
conditions, was detrimental to the country's export oriented economy. Before the
September 11th tragedy, the Swiss industry in particular had witnessed a
significant slowdown, especially in new orders, as foreign demand weakened.
Capital investment has been weak and is expected to remain so. While private
consumption was expected to contribute positively to economic growth before
September 11th, the attack's resulting impact on consumer confidence will
certainly change this picture. Expectations for the Gross Domestic Product have
been revised downward. For 2001 the consensus is now close to 1.2% growth and
for 2002 it is around 1.8%. Inflation on the other hand showed an impressive
decline in August bringing the year-over-year change to just 1.1%. The sharp
decline of energy prices and the strengthening of the Swiss currency during the
later part of September should reduce it further.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
Currency Exchange Rates--
Normalized from 12/29/00
EU: 3.5% CHF: 0.6%
EU CHF
1-Jan 1.0004 0.9996
2-Jan 0.9905 0.9921
3-Jan 1.0158 1.0127
4-Jan 0.9928 0.9953
5-Jan 0.9851 0.9919
8-Jan 0.9958 0.9992
9-Jan 0.9993 1.002
10-Jan 1.0061 1.0114
11-Jan 0.9903 1.0012
12-Jan 0.991 1.0048
15-Jan 1.0007 1.015
16-Jan 1 1.0139
17-Jan 1.0074 1.0197
18-Jan 0.9997 1.0056
19-Jan 1.0091 1.0168
22-Jan 1.0043 1.0127
23-Jan 1.0074 1.0161
24-Jan 1.0207 1.0284
25-Jan 1.0198 1.0253
26-Jan 1.0198 1.0248
29-Jan 1.0278 1.0287
30-Jan 1.0172 1.022
31-Jan 1.0065 1.0151
1-Feb 1.0042 1.0138
2-Feb 1.0067 1.0208
5-Feb 1.0056 1.0178
6-Feb 1.0126 1.0266
7-Feb 1.0153 1.0273
8-Feb 1.0275 1.0372
9-Feb 1.02 1.031
12-Feb 1.0113 1.0264
13-Feb 1.0238 1.036
14-Feb 1.0269 1.0371
15-Feb 1.0413 1.0501
16-Feb 1.0303 1.0409
19-Feb 1.0231 1.0355
20-Feb 1.0343 1.045
21-Feb 1.0358 1.0469
22-Feb 1.043 1.0511
23-Feb 1.0273 1.0392
26-Feb 1.0348 1.0475
27-Feb 1.0273 1.0418
28-Feb 1.0207 1.0354
1-Mar 1.0132 1.0247
2-Mar 1.0074 1.0213
5-Mar 1.0152 1.0258
6-Mar 1.0096 1.0237
7-Mar 1.0142 1.0285
8-Mar 1.0104 1.0246
9-Mar 1.0106 1.0257
12-Mar 1.0146 1.0284
13-Mar 1.0301 1.0442
14-Mar 1.0343 1.048
15-Mar 1.0505 1.0639
16-Mar 1.05 1.061
19-Mar 1.0476 1.0587
20-Mar 1.0366 1.0479
21-Mar 1.0515 1.0615
22-Mar 1.0602 1.0693
23-Mar 1.0593 1.0681
26-Mar 1.0515 1.0639
27-Mar 1.0547 1.066
28-Mar 1.0633 1.0718
29-Mar 1.0687 1.0723
30-Mar 1.0753 1.0818
2-Apr 1.0722 1.0772
3-Apr 1.0503 1.0564
4-Apr 1.0462 1.0525
5-Apr 1.0512 1.0577
6-Apr 1.0426 1.05
9-Apr 1.0513 1.0573
10-Apr 1.0606 1.0656
11-Apr 1.0617 1.061
12-Apr 1.0561 1.0596
13-Apr 1.0614 1.0634
16-Apr 1.0603 1.0638
17-Apr 1.0669 1.0726
18-Apr 1.067 1.0757
19-Apr 1.0504 1.0569
20-Apr 1.0449 1.0521
23-Apr 1.0519 1.0592
24-Apr 1.0542 1.0636
25-Apr 1.0504 1.0595
26-Apr 1.0435 1.057
27-Apr 1.0571 1.0703
30-Apr 1.0603 1.0756
1-May 1.056 1.0715
2-May 1.0546 1.0715
3-May 1.0593 1.0757
4-May 1.0562 1.0731
7-May 1.0589 1.0751
8-May 1.0652 1.0813
9-May 1.0636 1.0802
10-May 1.0696 1.0815
11-May 1.077 1.087
14-May 1.0785 1.0872
15-May 1.073 1.0826
16-May 1.0676 1.0768
17-May 1.0678 1.0795
18-May 1.0696 1.0813
21-May 1.0752 1.085
22-May 1.0893 1.0971
23-May 1.1003 1.1049
24-May 1.1005 1.1035
25-May 1.0948 1.1012
28-May 1.0958 1.1031
29-May 1.1019 1.1053
30-May 1.1003 1.1039
31-May 1.1152 1.1159
1-Jun 1.1123 1.1142
4-Jun 1.1147 1.1142
5-Jun 1.1039 1.1027
6-Jun 1.1119 1.1135
7-Jun 1.1079 1.1117
8-Jun 1.1084 1.1129
11-Jun 1.1191 1.1205
12-Jun 1.1045 1.11
13-Jun 1.1022 1.1092
14-Jun 1.0931 1.0987
15-Jun 1.0949 1.1019
18-Jun 1.0951 1.1037
19-Jun 1.1039 1.1108
20-Jun 1.1028 1.1073
21-Jun 1.1031 1.1034
22-Jun 1.0992 1.1004
25-Jun 1.0973 1.0979
26-Jun 1.0917 1.0949
27-Jun 1.0965 1.0962
28-Jun 1.1167 1.1174
29-Jun 1.1104 1.1123
2-Jul 1.1119 1.1142
3-Jul 1.1112 1.1142
4-Jul 1.1139 1.1158
5-Jul 1.1271 1.1285
6-Jul 1.1122 1.1128
9-Jul 1.1091 1.114
10-Jul 1.1026 1.1042
11-Jul 1.0977 1.097
12-Jul 1.1044 1.0992
13-Jul 1.103 1.0982
16-Jul 1.1062 1.0999
17-Jul 1.0968 1.0881
18-Jul 1.0792 1.0687
19-Jul 1.0826 1.0722
20-Jul 1.0822 1.0716
23-Jul 1.0848 1.0759
24-Jul 1.0787 1.0696
25-Jul 1.0697 1.0635
26-Jul 1.0741 1.0675
27-Jul 1.0744 1.0677
30-Jul 1.0784 1.072
31-Jul 1.0756 1.0716
1-Aug 1.07 1.0631
2-Aug 1.0669 1.0608
3-Aug 1.0659 1.0595
6-Aug 1.0697 1.0615
7-Aug 1.0741 1.066
8-Aug 1.0708 1.0607
9-Aug 1.0565 1.0484
10-Aug 1.0552 1.0516
13-Aug 1.0515 1.0508
14-Aug 1.0437 1.0418
15-Aug 1.0314 1.0314
16-Aug 1.0342 1.0348
17-Aug 1.0267 1.0282
20-Aug 1.0309 1.0306
21-Aug 1.0267 1.0266
22-Aug 1.0309 1.0325
23-Aug 1.0303 1.0312
24-Aug 1.0312 1.0333
27-Aug 1.0342 1.0348
28-Aug 1.0326 1.032
29-Aug 1.0373 1.0362
30-Aug 1.029 1.0268
31-Aug 1.0333 1.0315
3-Sep 1.0388 1.037
4-Sep 1.0605 1.0567
5-Sep 1.0634 1.0589
6-Sep 1.0525 1.0477
7-Sep 1.0388 1.0385
10-Sep 1.0498 1.0481
11-Sep 1.0324 1.0195
12-Sep 1.0398 1.0303
13-Sep 1.0348 1.0228
14-Sep 1.0239 1.0068
17-Sep 1.0195 0.9958
18-Sep 1.0168 0.9914
19-Sep 1.0173 0.9897
20-Sep 1.0162 0.9841
21-Sep 1.0304 0.9801
24-Sep 1.0279 0.9914
25-Sep 1.0216 0.9855
26-Sep 1.0212 0.9927
27-Sep 1.0267 1.0009
28-Sep 1.0345 1.0058
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
Currency Exchange Rates--
Normalized from 6/29/01
EU: -6.8% CHF: -9.6%
EU CHF
2-Jul 1.0014 1.0016
3-Jul 1.0007 1.0016
4-Jul 1.0032 1.0031
5-Jul 1.0151 1.0145
6-Jul 1.0016 1.0004
9-Jul 0.9988 1.0014
10-Jul 0.993 0.9926
11-Jul 0.9886 0.9862
12-Jul 0.9946 0.9882
13-Jul 0.9933 0.9873
16-Jul 0.9962 0.9888
17-Jul 0.9878 0.9782
18-Jul 0.972 0.9607
19-Jul 0.975 0.9639
20-Jul 0.9746 0.9634
23-Jul 0.977 0.9672
24-Jul 0.9715 0.9616
25-Jul 0.9633 0.9561
26-Jul 0.9673 0.9597
27-Jul 0.9676 0.9599
30-Jul 0.9712 0.9637
31-Jul 0.9687 0.9634
1-Aug 0.9637 0.9557
2-Aug 0.9608 0.9536
3-Aug 0.96 0.9525
6-Aug 0.9633 0.9543
7-Aug 0.9673 0.9584
8-Aug 0.9643 0.9536
9-Aug 0.9515 0.9425
10-Aug 0.9503 0.9454
13-Aug 0.947 0.9446
14-Aug 0.94 0.9366
15-Aug 0.9289 0.9272
16-Aug 0.9314 0.9303
17-Aug 0.9246 0.9244
20-Aug 0.9285 0.9265
21-Aug 0.9246 0.9229
22-Aug 0.9285 0.9282
23-Aug 0.9279 0.9271
24-Aug 0.9287 0.929
27-Aug 0.9314 0.9303
28-Aug 0.93 0.9278
29-Aug 0.9342 0.9316
30-Aug 0.9268 0.9231
31-Aug 0.9306 0.9273
3-Sep 0.9355 0.9323
4-Sep 0.9551 0.95
5-Sep 0.9577 0.952
6-Sep 0.9479 0.9419
7-Sep 0.9355 0.9336
10-Sep 0.9454 0.9422
11-Sep 0.9298 0.9165
12-Sep 0.9365 0.9263
13-Sep 0.9319 0.9195
14-Sep 0.9221 0.9051
17-Sep 0.9181 0.8953
18-Sep 0.9158 0.8912
19-Sep 0.9162 0.8897
20-Sep 0.9152 0.8847
21-Sep 0.928 0.8811
24-Sep 0.9257 0.8912
25-Sep 0.92 0.886
26-Sep 0.9197 0.8924
27-Sep 0.9246 0.8998
28-Sep 0.9316 0.9042
3
THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders (continued)
REVIEW OF THE SWISS MARKET
The year-to-date performance of the Swiss market (-27.32% in Swiss francs
and -27.22% in U.S. dollars) was one of the best performers within Western
Europe. From June-September the return of the Swiss Performance Index was
-18.40% in Swiss francs and -9.75% in U.S. dollars as compared to -14.98% for
the Standard & Poor's 500 Index in U.S. dollars. The Swiss market's failure to
show its expected defensive nature in the current environment can be attributed
to company-specific factors. Poor execution and bad strategic choices have been
exacerbated by harsh economic conditions. Companies that showed this type of
characteristic last year have suffered even more this year. The prime examples
are Zurich Financial Services and ABB each of which lost more than 60% of its
value. In addition, Sairgroup was on the brink of bankruptcy at the end of the
quarter after a long history of setbacks and failed diversification. The Swiss
Helvetia Fund has had no exposure in Sairgroup for over a year and very limited
exposure to Zurich Financial and ABB, which were disposed of toward the end of
August.
The other explanation for the performance of the Swiss market was the
setbacks experienced by Novartis and Roche in their efforts, like a lot of other
pharmaceutical companies in the world, to bring new drugs to the market to make
up for expiring patents. This phenomenon was in part attributable to much
increased FDA scrutiny.
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SWISS PERFORMANCE INDEX FOR THE QUARTER YEAR TO DATE
SWISS PERFORMANCE IN SWISS FRANCS (7/1/01-9/28/01) (AS OF 9/28/01)
--------------------------------------------------------------------------------
SWISS PERFORMANCE INDEX (18.40)% (27.32)%
FOODS (9.87)% (7.63)%
UTILITIES (11.43)% (6.38)%
INSURANCE (30.25)% (44.54)%
MISCELLANEOUS SERVICES (27.03)% (30.33)%
BUILDING MATERIALS & CONSTRUCTION (20.91)% (25.54)%
CHEMICALS & PHARMACEUTICALS (9.06)% (19.77)%
RETAILERS (34.88)% (41.88)%
BANKS (16.70)% (20.36)%
ELECTRONICS & ELECTRICAL ENGINEERING (49.00)% (62.38)%
MISCELLANEOUS INDUSTRIES (34.12)% (52.47)%
TRANSPORTATION (39.68)% (58.65)%
MACHINERY (27.77)% (42.38)%
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
SPI, SPI Large Caps, SPI Mid & Small Caps
(Year to Date as of 9/28/01, Normalized)
SPI SPI Small Co. SPI Med Co. SPI Large Co.
-27.32% -28.48% -42.28% -24.68%
29-Dec-00 100 100 100 100
5-Jan-01 98.24 99.03 98.47 98.17
12-Jan-01 96.8 99.05 99.51 96.26
19-Jan-01 97.04 101.14 101.04 96.23
26-Jan-01 98.85 101.42 100.56 98.48
2-Feb-01 98.43 101.37 99.73 98.12
9-Feb-01 97.57 100.95 98.8 97.26
16-Feb-01 95.69 99.76 97.82 95.21
23-Feb-01 93.75 98.09 94.63 93.47
2-Mar-01 92.52 96.83 91.98 92.48
9-Mar-01 92.61 97.17 93.26 92.36
16-Mar-01 87.48 94.68 87.95 87.18
23-Mar-01 83.01 91.96 85.3 82.35
30-Mar-01 88.1 91.86 88.6 87.91
6-Apr-01 85.71 90.84 86.12 85.49
13-Apr-01 89.08 90.96 87.83 89.24
20-Apr-01 89.15 91.13 88.5 89.21
27-Apr-01 89.12 91.25 88.25 89.22
4-May-01 90.62 91.87 89.58 90.77
11-May-01 92.54 92.21 90.62 92.9
18-May-01 93.99 92.7 91.14 94.54
25-May-01 94.23 92.88 90.49 94.93
1-Jun-01 92.63 92.18 89.18 93.25
8-Jun-01 93 92.55 89.89 93.56
15-Jun-01 90.46 91.76 87.36 90.96
22-Jun-01 88.19 90.55 84.12 88.83
29-Jun-01 89.07 91.3 84.37 89.82
6-Jul-01 86.06 89.28 81.56 86.74
13-Jul-01 85.48 87.45 79.6 86.44
20-Jul-01 85.27 87.12 78.51 86.39
27-Jul-01 83.28 86.26 76.92 84.29
3-Aug-01 84.6 86.65 78.56 85.58
10-Aug-01 81.74 85.17 76.43 82.56
17-Aug-01 82.02 84.6 75.26 83.12
24-Aug-01 82.43 84 74.25 83.8
31-Aug-01 80.78 82.99 73 82.07
7-Sep-01 76.91 80.23 68.86 78.21
14-Sep-01 69.44 75.6 62.44 70.46
21-Sep-01 63.09 69.74 56.39 64.06
28-Sep-01 72.68 71.52 57.72 75.32
4
THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders (continued)
COMPANY NEWS AND CORPORATE ACTIONS
SAIRGROUP
Swissair, the airline of Sairgroup found itself unable to operate following
the sharp depletion in its cash position and its equity following a long
struggle with its participation in money losing European regional airlines. This
situation was made unbearable after the terrorist attacks on September 11th. The
Swissair debacle can be expected to impact the banking, tourism and
transportation sectors. In the banking sector, UBS estimated its exposure to
Sairgroup to total Sfr 200 million while Credit Suisse placed its credit
exposure to Sairgroup at Sfr 238 million in unsecured loans and Sfr 151 million
in loans secured by aircraft. Both banks will be engaged in a proposed
restructuring plan, which will increase their exposure to the airline. According
to this proposed plan, UBS and Credit Suisse Group are to buy over 70% of
Crossair (Sairgroup's profitable subsidiary) for approximately Sfr 260 million.
In addition, the banks are to provide Swissair with a bridge loan of Sfr 250
million, and Crossair with capital commitments and a working capital injection
of up to Sfr 850 million. Of these amounts, UBS is to provide 51% and Credit
Suisse is to provide the other 49%.
ZURICH FINANCIAL
The company announced plans to sell $4 billion of assets during the year.
Zurich recently sold New York-based Scudder Management to Deutsche Bank AG for
$2.5 billion. The company also plans to sell its reinsurance unit.
At the end of the third quarter, the Swiss exchange introduced a planned
free-float methodology in the context of general index revision. The company
that was most negatively affected by the change in weightings in the Swiss
Market Index was Serono, which went from 1.86% to 0.59% of the index. The
companies that were most positively affected were UBS, which went from 12.37% to
13.14% of the index and Novartis which went from 23.78% to 24.25%. These changes
affect the Fund's benchmark, the broad Swiss Performance Index, in the same
magnitude.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
SPI: -27.55% S&P 500: -20.39% NASDAQ: -39.2%
29-Dec-00 0 0 0
1-Jan-01 0 0 0
2-Jan-01 0 -2.8 -7.23
3-Jan-01 0.38 2.08 5.92
4-Jan-01 0.39 1 3.9
5-Jan-01 -0.84 -1.65 -2.54
8-Jan-01 -1.52 -1.81 -3.02
9-Jan-01 -2.28 -1.44 -1.18
10-Jan-01 -3.66 -0.48 2.18
11-Jan-01 -2.75 0.54 6.89
12-Jan-01 -3.42 -0.1 6.32
15-Jan-01 -4.25 -0.1 6.32
16-Jan-01 -4.37 0.53 6
17-Jan-01 -3.99 0.75 8.6
18-Jan-01 -2.52 2.15 12.07
19-Jan-01 -4.07 1.74 12.14
22-Jan-01 -4.14 1.77 11.64
23-Jan-01 -3.96 3.1 14.98
24-Jan-01 -4.5 3.39 15.74
25-Jan-01 -4.05 2.88 11.49
26-Jan-01 -3.72 2.69 12.59
29-Jan-01 -3.69 3.4 14.9
30-Jan-01 -3 4.12 14.9
31-Jan-01 -2.64 3.55 12.25
1-Feb-01 -2.75 4.12 12.66
2-Feb-01 -3.34 2.3 7.71
5-Feb-01 -2.44 2.67 7.01
6-Feb-01 -3.33 2.52 7.87
7-Feb-01 -3.11 1.68 5.58
8-Feb-01 -5.34 1.05 3.73
9-Feb-01 -4.87 -0.29 0.04
12-Feb-01 -5.1 0.89 0.8
13-Feb-01 -5.85 0.02 -1.71
14-Feb-01 -6.75 -0.18 0.87
15-Feb-01 -7.47 0.64 3.36
16-Feb-01 -7.77 -1.26 -1.8
19-Feb-01 -7.37 -1.26 -1.8
20-Feb-01 -8.96 -2.97 -6.13
21-Feb-01 -9.68 -4.76 -8.13
22-Feb-01 -10 -4.95 -9.1
23-Feb-01 -9.86 -5.47 -8.39
26-Feb-01 -9.67 -3.81 -6.53
27-Feb-01 -9.17 -4.54 -10.6
28-Feb-01 -8.35 -5.89 -12.87
1-Mar-01 -9.16 -5.79 -11.59
2-Mar-01 -9.41 -6.33 -14.25
5-Mar-01 -9.11 -5.77 -13.23
6-Mar-01 -8.56 -4.82 -10.74
7-Mar-01 -9.07 -4.19 -9.95
8-Mar-01 -9.22 -3.97 -12.18
9-Mar-01 -9.71 -6.35 -16.87
12-Mar-01 -11.45 -10.39 -22.11
13-Mar-01 -13.06 -9.04 -18.41
14-Mar-01 -14.9 -11.39 -20.13
15-Mar-01 -15.29 -10.87 -21.4
16-Mar-01 -17.64 -12.62 -23.42
19-Mar-01 -17.95 -11.08 -20.98
20-Mar-01 -17.28 -13.22 -24.77
21-Mar-01 -19.26 -14.77 -25.87
22-Mar-01 -23.99 -15.12 -23.14
23-Mar-01 -21.94 -13.43 -21.88
26-Mar-01 -19.11 -12.45 -22.3
27-Mar-01 -18.96 -10.21 -20.12
28-Mar-01 -19.53 -12.39 -24.9
29-Mar-01 -19.23 -12.8 -26.25
30-Mar-01 -18.02 -11.86 -25.46
2-Apr-01 -19.34 -12.95 -27.78
3-Apr-01 -20.08 -15.95 -32.23
4-Apr-01 -19.95 -16.18 -33.62
5-Apr-01 -18.53 -12.51 -27.69
6-Apr-01 -18.1 -14.24 -30.31
9-Apr-01 -17.13 -13.54 -29.28
10-Apr-01 -17.27 -11.19 -24.98
11-Apr-01 -15.99 -11.38 -23.08
12-Apr-01 -15.71 -10.04 -20.54
13-Apr-01 -15.71 -10.04 -20.54
16-Apr-01 -15.71 -10.33 -22.64
17-Apr-01 -17.03 -9.41 -22.09
18-Apr-01 -15.73 -5.88 -15.76
19-Apr-01 -15.46 -4.7 -11.6
20-Apr-01 -14.89 -5.52 -12.36
23-Apr-01 -16.45 -6.93 -16.58
24-Apr-01 -15.6 -8.06 -18.31
25-Apr-01 -16.13 -6.6 -16.56
26-Apr-01 -16.12 -6.15 -17.56
27-Apr-01 -16.79 -4.74 -15.91
30-Apr-01 -16.21 -5.01 -14.26
1-May-01 -16.21 -3.71 -12.16
2-May-01 -15.1 -3.63 -10.03
3-May-01 -16.28 -5.05 -13.04
4-May-01 -15.3 -3.68 -11.21
7-May-01 -14.41 -3.91 -11.93
8-May-01 -15.19 -4.08 -10.91
9-May-01 -15.73 -4.5 -12.62
10-May-01 -14.63 -4.51 -13.74
11-May-01 -14.63 -5.23 -14.61
14-May-01 -15.21 -4.97 -15.64
15-May-01 -14.07 -4.93 -15.49
16-May-01 -13.32 -2.21 -12.21
17-May-01 -12.89 -1.94 -11.11
18-May-01 -13.17 -1.66 -10.9
21-May-01 -12.96 -0.07 -6.57
22-May-01 -13.7 -0.34 -6.24
23-May-01 -13.91 -1.88 -9.09
24-May-01 -13.91 -1.56 -7.53
25-May-01 -14.41 -2.73 -8.78
28-May-01 -14.6 -2.73 -8.78
29-May-01 -15.16 -3.48 -11.84
30-May-01 -15.6 -4.97 -15.53
31-May-01 -17.13 -4.37 -14.47
1-Jun-01 -16.7 -4 -12.89
4-Jun-01 -16.7 -3.51 -12.63
5-Jun-01 -15.5 -2.25 -9.48
6-Jun-01 -15.96 -3.27 -10.12
7-Jun-01 -15.93 -2.74 -8.25
8-Jun-01 -16.31 -3.66 -10.23
11-Jun-01 -17.2 -4.46 -12.02
12-Jun-01 -17.84 -4.35 -12.06
13-Jun-01 -16.96 -5.41 -14.01
14-Jun-01 -17 -7.07 -17.15
15-Jun-01 -17.54 -7.48 -17.78
18-Jun-01 -17.95 -7.93 -19.4
19-Jun-01 -19.13 -7.62 -19.23
20-Jun-01 -19.7 -6.81 -17.67
21-Jun-01 -19.17 -5.75 -16.55
22-Jun-01 -19.78 -6.64 -17.52
25-Jun-01 -19.24 -7.15 -16.87
26-Jun-01 -20.25 -7.29 -16.31
27-Jun-01 -21 -7.72 -15.9
28-Jun-01 -21.05 -6.56 -13.84
29-Jun-01 -19.97 -6.7 -12.39
2-Jul-01 -19.38 -5.76 -12.9
3-Jul-01 -20.01 -5.92 -13.21
4-Jul-01 -20.74 -5.92 -13.21
5-Jul-01 -22.24 -7.06 -15.67
6-Jul-01 -22.57 -9.22 -18.75
9-Jul-01 -22.67 -8.6 -17.84
10-Jul-01 -22.87 -9.91 -20.43
11-Jul-01 -22.96 -10 -20.05
12-Jul-01 -22.29 -7.87 -15.85
13-Jul-01 -22.14 -7.3 -15.48
16-Jul-01 -22.01 -8.31 -17.74
17-Jul-01 -22.17 -7.39 -16.19
18-Jul-01 -20.91 -7.9 -18.26
19-Jul-01 -19.59 -7.34 -17.03
20-Jul-01 -20.18 -7.66 -17.73
23-Jul-01 -20.54 -9.17 -19.38
24-Jul-01 -21.62 -10.65 -20.57
25-Jul-01 -22.5 -9.21 -19.55
26-Jul-01 -22.64 -8.26 -17.99
27-Jul-01 -22.04 -8.03 -17.74
30-Jul-01 -21.58 -8.13 -18.19
31-Jul-01 -21.42 -7.62 -17.81
1-Aug-01 -20.06 -7.25 -16.14
2-Aug-01 -19.49 -6.87 -15.37
3-Aug-01 -19.93 -7.34 -16.22
6-Aug-01 -19.94 -8.4 -17.52
7-Aug-01 -20.28 -8.1 -17.78
8-Aug-01 -20.24 -9.68 -20.27
9-Aug-01 -20.75 -9.67 -20.39
10-Aug-01 -21.98 -9.15 -20.67
13-Aug-01 -20.98 -9.06 -19.62
14-Aug-01 -19.38 -9.4 -20.34
15-Aug-01 -19.12 -10.05 -22.19
16-Aug-01 -19.5 -9.77 -21.72
17-Aug-01 -20.08 -11.27 -24.29
20-Aug-01 -20.76 -10.55 -23.71
21-Aug-01 -19.88 -11.63 -25.74
22-Aug-01 -20.32 -11.01 -24.57
23-Aug-01 -20.95 -11.25 -25.26
24-Aug-01 -20.13 -9.5 -22.27
27-Aug-01 -19.71 -9.94 -22.45
28-Aug-01 -20.59 -11.29 -24.37
29-Aug-01 -21.7864 -12.26 -25.25
30-Aug-01 -21.7333 -13.75 -27.34
31-Aug-01 -21.7123 -13.4 -26.78
3-Sep-01 -23.326 -13.4 -20.34
4-Sep-01 -23.9727 -13.45 -28.19
5-Sep-01 -24.2224 -13.52 -28.66
6-Sep-01 -24.9713 -15.45 -30.82
7-Sep-01 -25.8611 -17.03 -31.55
10-Sep-01 -27.7842 -16.51 -31.24
11-Sep-01 -30.7154 -16.51 -35.94
12-Sep-01 -30.0337 -16.51 -35.94
13-Sep-01 -29.0328 -16.51 -35.94
14-Sep-01 -31.0389 -16.51 -35.94
17-Sep-01 -28.5875 -20.59 -35.94
18-Sep-01 -29.0718 -21.05 -36.93
19-Sep-01 -29.1839 -22.32 -38.03
20-Sep-01 -32.5409 -24.73 -40.34
21-Sep-01 -35.8309 -26.17 -42.27
24-Sep-01 -32.5986 -23.29 -39.18
25-Sep-01 -30.2618 -22.61 -39.09
26-Sep-01 -29.6441 -22.99 -40.61
27-Sep-01 -29.3718 -22.1 -40.74
28-Sep-01 -27.5452 -20.39 -39.2
5
THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Letter to Stockholders (continued)
IMPACT OF SEPTEMBER 11TH
Obviously the insurance and reinsurance companies are among the most
affected by the WTC event.
Before the September 11th attack, Zurich Financial Services had already
reduced earnings estimates twice in the quarter, citing weakness in fund
management and life insurance businesses due to slumping equity markets. The
company has recently increased its estimate of losses related to the September
11th incident to between $700 and $900 million, its largest insurance loss ever,
at 1.6% of annual premiums.
Swiss Re estimates its losses from the World Trade Center disaster to be
approximately $1.2 billion, twice its initial estimate. Before September 11th,
first-half profits fell 55% due to significantly weaker performance in
investments, and a 74% decline in income.
SWZ PERFORMANCE DISCUSSION
The defensive posture of Swiss Helvetia Fund allowed it to outperform the
index during the third quarter. Its return was -16.9% in Swiss francs and -7.4%
in U.S. dollars. The year-to-date performance, given in the following table,
shows the Fund was able to close the negative performance gap it had with the
Swiss Performance Index.
The Fund's portfolio has stayed defensive with pharmaceuticals and food now
comprising 45% of the portfolio. Some adjustments had been made before the
September 11th attack, including reduction in exposure to mid cap insurance
companies and Zurich Financial (due to an expected deterioration in investment
income and lower net asset values). The mid cap growth sector has been further
reduced because of much higher risk due to questions about management capability
and experience in managing down cycles, price pressures and difficulty in
digesting recent acquisitions with direct exposure to telecom spending.
Management believes that the U.S. market's valuation is still high by historical
standards, especially since the high growth--low inflation period of the economy
seems to be over for a long period. Management expects the Swiss market to be
impacted by a correction in the U.S. market even though its valuations are more
favorable.
--------------------------------------------------------------------------------
THROUGH 9/28/01 THREE
YEAR TO ONE YEARS
DATE YEAR ANNUALIZED
--------------------------------------------------------------------------------
SWZ TOTAL RETURN BASED ON NAV
(SWISS FRANCS) (27.86)% (26.83)% 4.41%
SPI TOTAL RETURN
(SWISS FRANCS) (27.32)% (24.67)% 3.43%
SWZ TOTAL RETURN BASED ON NAV
(USD) (27.76)% (21.99)% (0.90)%
SWZ TOTAL RETURN BASED ON
MARKET PRICE (USD) (26.59)% (18.03)% (0.91)%
SPI TOTAL RETURN
(USD) (27.22)% (19.69)% (1.83)%
S&P 500 TOTAL RETURN
(USD) (21.15)% (27.53)% (0.12)%
6
THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Letter to Stockholders (concluded)
The mid and small capitalization companies suffered more than the large
companies. Not only do their stocks have much lower and more erratic trading
volume but in an adverse economic environment, they also tend to experience a
bigger price multiple contraction because their smaller asset base makes it more
challenging for them to reduce costs in a significant way.
OUTLOOK
Management believes the current valuation of the Swiss market, based on
2002 expectations, gives a comfortable cushion against downside risk. A large
move in the currency (especially a sharp depreciation of the U.S. dollar due to
higher government debt), a further correction in the value of U.S. financial
assets to more historic levels, and macro-economic uncertainty could negatively
impact Swiss securities. Management believes that despite the potential for very
slow growth or even synchronized global recession, the current expansion in the
monetary base and most probably in fiscal policy will eventually stop the
contraction in global output.
STOCK REPURCHASE PROGRAM
During the first three quarters of 2001, the Fund repurchased 395,800
shares, at an average price of $13.88 and an average discount of 17.43%. This
program enhanced stockholders value by $1,164,617. During the same period, the
discount was between 12.95% and 19.76%, finishing the third quarter at -17.78%.
Sincerely,
/S/ PAUL HOTTINGUER
---------------
Paul Hottinguer
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
/S/ RODOLPHE HOTTINGER
------------------
Rodolphe Hottinger
PRESIDENT AND CHIEF OPERATING OFFICER
September 30, 2001
7
THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Schedule of Investments September 30, 2001
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
--------------------------------------------------------------------------------
COMMON STOCKS -- 83.84%
BANKS -- 12.91%
1,100 BANK SARASIN & CO.
REGISTERED SHARES $ 1,902,317 0.63%
Specializes in investment advisor services
and portfolio management for private and
institutional customers in Europe.1
(cost $731,876)
423,000 CREDIT SUISSE GROUP
REGISTERED SHARES 14,766,451 4.84
A global operating financial group.1,2
(cost $7,676,656)
5,500 JULIUS BAER HOLDINGS AG
BEARER SHARES 1,636,237 0.53
Banking group specializing in asset
management, investment consulting
and securities trading.1
(cost $586,911)
7,000 OZ HOLDING
BEARER SHARES 497,374 0.16
Provides brokerage and banking services,
specializing in Swiss futures and options.1
(cost $637,887)
435,000 UBS LTD.
REGISTERED SHARES 20,318,814 6.64
Product of the merger of Basel-based
Swiss Bank Corp. and Zurich-based Union
Bank of Switzerland. The group operates
globally and has three core business units:
UBS Switzerland, UBS Asset Management
and UBS Warburg.1,2
(cost $8,162,640)
19,000 VONTOBEL HOLDING AG
BEARER SHARES 334,569 0.11
Provides investment, banking and
consulting services to private and
institutional customers.1
(cost $682,252)
------------ ------
39,455,762 12.91
No. of of Net
Shares Security Value Assets
--------------------------------------------------------------------------------
BIOTECHNOLOGY -- 1.72%
7,000 SERONO SA
BEARER SHARES $ 5,276,491 1.72%
Develops and markets
biotechnology products.1,2
(cost $5,098,415)
------------ ------
5,276,491 1.72
BUILDING CONTRACTORS AND MATERIALS -- 1.04%
17,000 HOLCIM LTD.
REGISTERED SHARES 3,193,080 1.04
Produces and markets various
building materials, in addition to
providing consulting and engineering
services in all areas of the cement
manufacturing process.1
(cost $3,032,281)
------------ ------
3,193,080 1.04
CHEMICALS -- 2.21%
2,250 GURIT-HEBERLEIN AG
BEARER SHARES 1,369,324 0.45
European market leader for wind screen
bonding systems, ski based and
optically pure thermoplastic sheeting
for the auto industry.1
(cost $2,223,639)
8,600 LONZA AG
REGISTERED SHARES 4,888,477 1.60
Produces chemicals, plastics,
and energy.1,2
(cost $5,049,384)
2,523 SIKA FINANZ LTD.
BEARER SHARES 497,273 0.16
Leading producer of construction
chemicals.1
(cost $614,614)
------------ ------
6,755,074 2.21
8
THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Schedule of Investments (continued) September 30, 2001
(Unaudited)
Percent
No. of of Net
Shares Security Value Assets
--------------------------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
ELECTRICAL ENGINEERING & ELECTRONICS -- 7.51%
4,055 BELIMO AUTOMATION AG
REGISTERED SHARES $ 1,052,271 0.35%
World market leader in damper and
volume control actuators for
ventilation and air conditioning
equipment.1
(cost $1,259,329)
5,720 DISETRONIC HOLDING LTD.
REGISTERED SHARES 3,622,490 1.18
Develops, manufactures and markets
infusion (insulin pumps) and
injection systems.
(cost $4,714,352)
14,249 KABA HOLDING AG
REGISTERED SHARES 3,231,006 1.06
Provides mechanical and electronic
security systems.1
(cost $3,545,760)
6,000 LEICA GEOSYSTEMS AG
REGISTERED SHARES 1,019,462 0.33
Manufactures surveying and mapping
equipment. Produces devices
that capture and process
spatial data.1
(cost $1,657,638)
270,000 LOGITECH INTERNATIONAL SA
REGISTERED SHARES 6,222,428 2.03
Manufactures personal computer input
devices, as well as producing trackballs,
desktop publishing programs and
related software.1,2
(cost $6,208,715)
No. of of Net
Shares Security Value Assets
--------------------------------------------------------------------------------
ELECTRICAL ENGINEERING & ELECTRONICS -- (CONTINUED)
40,800 PHONAK HOLDING LTD.
REGISTERED SHARES $ 927,674 0.30%
Designs and produces wireless analog
and digital hearing aids and miniaturized
voice communications systems.1
(cost $1,231,500)
5,400 SAIA-BURGESS ELECTRONICS HOLDING AG
REGISTERED SHARES 1,401,298 0.46
Develops and produces switches, motors and
programmable control devices. The company's
products are mainly used in the automobile,
heating & air conditioning and
telecommunications industries.1
(cost $1,485,298)
5,263 SCHAFFNER HOLDING LTD.
REGISTERED SHARES 1,040,568 0.34
Develops, manufactures and markets
electrical components and test
equipment in the area of EMC (Electro
Magnetic Compatibility).1
(cost $1,469,991)
51,176 TECAN GROUP, LTD.
REGISTERED SHARES 3,161,940 1.03
Manufactures and distributes components
and complete solutions for the
automation of laboratory processes.1
(cost $2,381,484)
18,000 THE SWATCH GROUP, LTD.
BEARER SHARES 1,301,205 0.43
Manufactures watches, watch
components and microelectronics.
Produces machine tools for scientific,
medical and industrial use.1
(cost $1,179,095)
------------ ------
22,980,342 7.51
9
THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Schedule of Investments (continued) September 30, 2001
(Unaudited)
No. of of Net
Shares Security Value Assets
--------------------------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
FOOD & LUXURY GOODS -- 14.96%
300 LINDT & SPRUNGLI AG
REGISTERED SHARES $ 1,640,408 0.54%
Major manufacturer of premium
Swiss chocolates.1
(cost $1,196,399)
207,000 NESTLE LTD.
REGISTERED SHARES 44,124,189 14.42
Largest food and beverage
processing company in the world.1,2
(cost $12,427,540)
------------ ------
45,764,597 14.96
INSURANCE -- 4.27%
30,000 BALOISE HOLDING AG
REGISTERED SHARES 2,150,139 0.71
Medium-sized insurer active in all
sectors of insurance.1
(cost $151,739)
111,000 SCHWEIZERISCHE RUCKVERSICHERUNGS-
GESELLSCHAFT (SWISS REINSURANCE
COMPANY)
REGISTERED SHARES 10,904,541 3.56
Second largest reinsurance company
in the world.1,2
(cost $2,665,770)
------------ ------
13,054,680 4.27
MACHINERY -- 1.18%
2,650 SCHINDLER HOLDING AG
REGISTERED SHARES 3,618,474 1.18
One of the world's largest elevator
companies and a leading Swiss
machinery enterprise.1
(cost $3,510,746)
------------ ------
3,618,474 1.18
No. of of Net
Shares Security Value Assets
--------------------------------------------------------------------------------
MISCELLANEOUS INDUSTRIES -- 0.72%
750 DAETWYLER HOLDING INC.
BEARER SHARES $ 968,489 0.32%
Manufactures cable, rubber and
plastic products, steel tubing,
pharmaceutical packaging and
industrial components.1
(cost $1,249,175)
12,465 HUBER & SUHNER AG
REGISTERED SHARES 770,158 0.25
Manufactures a wide range of products,
extending from cables for energy and
electrical transmission to special products
such as rubber.1
(cost $843,798)
11,025 KOMAX HOLDING AG
REGISTERED SHARES 459,460 0.15
Seller of wire processing machines.
Most important markets are the car,
household appliance, telecommunications
and electronics industries.1
(cost $415,378)
------------ ------
2,198,107 0.72
MISCELLANEOUS MEDICAL SERVICES -- 0.12%
546 GALENICA HOLDING LTD.
Manufactures and distributes 371,084 0.12
prescription and over-the-counter
drugs, toiletries and hygiene products.1
(cost $490,462)
------------ ------
371,084 0.12
MISCELLANEOUS SERVICES -- 1.83%
64,500 ADECCO SA
BEARER SHARES 2,195,829 0.72
Leading personnel and temporary
employment company.1
(cost $2,001,578)
10
THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Schedule of Investments (concluded) September 30, 2001
(Unaudited)
No. of of Net
Shares Security Value Assets
--------------------------------------------------------------------------------
COMMON STOCKS -- (CONCLUDED)
MISCELLANEOUS SERVICES -- (CONTINUED)
1,800 COMPAGNIE FINANCIERE RICHEMONT AG
BEARER SHARES $ 3,393,142 1.11%
Investment company with principal
interests in luxury goods and tobacco.1
(cost $1,500,228)
------------ ------
5,588,971 1.83
PHARMACEUTICALS -- 31.21%
1,580,000 NOVARTIS AG
REGISTERED SHARES 61,794,254 20.20
Life science group created by the
consolidation of Sandoz and Ciba-Geigy.
Manufactures health care products for
use in a broad range of medical fields,
as well as agricultural products. The
second largest pharmaceutical entity
in the world.1,2
(cost $21,636,239)
470,000 ROCHE HOLDINGS LTD.
Dividend Rights Certificates 33,685,511 11.01
Worldwide pharmaceutical company.1,2
(cost $10,193,328)
------------ ------
95,479,765 31.21
No. of of Net
Shares Security Value Assets
--------------------------------------------------------------------------------
RETAILERS -- 0.64%
1,900 JELMOLI HOLDING AG
BEARER SHARES $ 1,960,457 0.64%
Operates a network of retail/service
outlets throughout Switzerland, including
local dry cleaners, auto body shops,
opticians, interior decorators, travel
agencies, restaurants, pharmacies
and retailers.1
(cost $1,405,702)
------------ ------
1,960,457 0.64
TELECOMMUNICATIONS -- 2.74%
29,750 SWISSCOM AG
REGISTERED SHARES 8,381,835 2.74
Operates public telecommunication
networks and offers network
application services.1,2
(cost $7,948,970)
------------ ------
8,381,835 2.74
TRANSPORTATION -- 0.78%
61,200 KUEHNE & NAGEL INTERNATIONAL LTD.
Operates sea freight, land and rail 2,401,112 0.78
transportation businesses and
warehousing and distribution facilities.1
(cost $3,195,246)
------------ ------
2,401,112 0.78%
TOTAL COMMON STOCKS
(cost $130,462,015) $256,479,831 83.84%
OTHER ASSETS IN EXCESS OF LIABILITIES 49,448,123 16.16
------------ ------
NET ASSETS $305,927,954 100.00%
============ ======
--------------------------------------------------------------------------------
1 NON-INCOME PRODUCING SECURITY FOR THE THREE MONTH PERIOD ENDED
SEPTEMBER 30, 2001.
2 ONE OF THE TEN LARGEST PORTFOLIO HOLDINGS.
11