Semi Annual Report by Investment Company Form N CSRS

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

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-05128

The Swiss Helvetia Fund, Inc.
(Exact name of registrant as specified in charter)

c/o U.S. Bank Global Fund Services

615 East Michigan Street

Milwaukee, WI 53202
(Address of principal executive offices) (Zip code)

Andrew Dakos, President and Chief Executive Officer

c/o U.S. Bank Global Fund Services

615 East Michigan Street

Milwaukee, WI 53202
(Name and address of agent for service)

1-800-730-2932

Registrant's telephone number, including area code

Date of fiscal year end: December 31

Date of reporting period: June 30, 2024

Item 1. Reports to Stockholders.

(a)

The Swiss Helvetia Fund, Inc. Executive Offices 615 East Michigan Street Milwaukee, WI 53202 (800) 730-2932

Managed Distribution Policy Disclosure

In May 2018, The Swiss Helvetia Fund, Inc. (the "Fund"), acting pursuant to an SEC exemptive order and with the approval of the Fund's Board of Directors (the "Board"), adopted a managed distribution policy. Under that policy, as resumed by the Board and as currently in effect, the Fund will pay a quarterly distribution stated in terms of a fixed amount of $0.12900 per share of the Fund's common stock, which equates to an annualized distribution rate of 6.00% based on the Fund's net asset value of $8.60 as of October 31, 2023. In accordance with the policy, the Fund distributed on March 31, 2024 and June 30, 2024, $0.12900 per share to stockholders of record on March 18, 2024 and June 18, 2024 respectively.

You should not draw any conclusions about the Fund's investment performance from the amount of the Fund's distribution or from the terms of the Fund's managed distribution policy. The Board reviews the Fund's managed distribution policy periodically and may amend or terminate the managed distribution policy at any time without prior notice to Fund stockholders, which could have an adverse effect on the market price of the Fund's shares.

With each distribution, the Fund will issue a notice to stockholders and a press release which will provide detailed information regarding the amount and composition of the distribution and other related information. The amounts and sources of distributions reported in the notice to stockholders are only estimates, are likely to change over time, and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099- DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. Please refer to "Federal Income Tax and Investment Transactions" under Note 5 of the Notes to Financial Statements for information regarding the tax character of the Fund's distributions. A copy of the Fund's Section 19(a) notices is available on the Fund's website at www.swzfund.com.

The Fund's total return in relation to changes in net asset value is presented in the Financial Highlights.

Management Discussion and Analysis (for the six months ended June 30, 2024)

For the six-month period ended June 30, 2024, The Swiss Helvetia Fund, Inc. (the "Fund"), as measured by the change in value in the Fund's net asset value ("NAV"), increased by +0.9% in US dollars ("USD") on a total return basis. For the same period, the Fund's share price on the New York Stock Exchange increased by +1.6% in USD on a total return basis. This compares with an increase of 2.0% in the Swiss Performance Index (the "Index" or the "SPI") in USD.

Economic environment during the period under review

Global economic review

The European Central Bank cut interest rates but sticky inflation kept some other major central banks on hold.

In July 2023, the US Federal Reserve ("Fed") raised interest rates for the last time in the current cycle, from 5.25 to 5.50 percent, representing the highest level since 2007. There were worries at beginning of this year that the US economy may be overheating and strong economic data evidencing this was greeted negatively by the market. However, hopes of a soft landing for the economy grew as the quarters progressed. Annual US inflation eased slightly to 2.6% in May 2024 from 2.7% in April 2024. The US labor market remained strong with 179,000 jobs added in June, according to the Bureau of Labor Statistics.

The European Central Bank cut interest rates by 25 basis points from 4.0 to 3.75 percent in early June, representing the first decrease since 2019. However, the scope for further cuts may be limited by sticky inflation. Annual inflation in the euro area was 2.6% in May, up from 2.4% in April.

Market environment during the period under review

Global stock markets registered strong gains in Q1 amid a resilient US economy and ongoing enthusiasm around artificial intelligence (AI). Strength in some Asian markets helped emerging market equities outperform developed markets in Q2. Stocks related to AI continued to perform strongly in the second quarter of 2024.

In fixed income, as the first quarter progressed, governmental bond yields adjusted in response to shifting market sentiments and economic indicators. 10-year government bond yields increased across the board. The global government bond markets diverged during the second quarter. Following an initial sharp sell-off in US treasuries, yields peaked towards the end of April and subsequently trended lower.

Worldwide equities, measured by the MSCI World Index, increased +12.0% in USD for the first half of 2024.

With respect to European equities, the MSCI Europe Index increased +9.6% in EUR, and the weakening of EUR had translated into a +6.1% USD increase.

Swiss equities, as measured by the SPI, increased by +9.3% in the first half of 2024 (in CHF, which translates to a +2.0% USD increase). Within Switzerland, small and mid-cap companies, represented by the SPI Extra Index (the "SPIEX"), increased by +4.5% and underperformed large cap companies, represented by the Swiss Market Index Total Return (the "SMIC"), by -6.5%.

Within sectors of the SPI, Industrials showed the strongest performance in the first half of 2024 by increasing +8.4%, followed by Consumer Discretionary (+7.9%), Health Care (+5.9%), Materials (+3.9) and Financials (+3.6%).

IMPORTANT INFORMATION CONCERNING

MANAGEMENT DISCUSSION AND ANALYSIS

Except as otherwise specifically stated, all information and investment team commentary, including portfolio security positions, is as of June 30, 2024. The views expressed in this Management Discussion and Analysis section (the "MD&A") are those of the Fund's portfolio manager and are subject to change without notice. They do not necessarily represent the views of Schroders Investment Management North America Inc. The MD&A contains some forward-looking statements providing current expectations or forecasts of future events; they do not necessarily relate to historical or current facts. There can be no guarantee that any forward-looking statement will be realized. We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events, or otherwise. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The Fund may buy, sell, or hold any security discussed herein, on the basis of factors described herein or the basis of other factors or other considerations. Fund holdings will change from time to time. Current and future portfolio holdings are subject to risk, including geopolitical and other risks.

Performance quoted represents past performance and does not guarantee or predict future results.

Swiss Performance Index for the first half of 2024

Source: Schroders, Blackrock Solutions / Aladdin Explore, as of June 30, 2024. Performance measured as total return in USD. Sectors mentioned should not be viewed as a recommendation to buy/sell. Portfolio composition is subject to change over time. Investors cannot invest directly in the Index or sub-indices.

Performance

The Fund's NAV increased by +0.9% in USD, which underperformed the Index's return, for the period under review.

The MSCI Switzerland Value Index outperformed the MSCI Switzerland Growth Index by +2.6%. Thus, the value bias applied by the Fund's investment adviser was positive during the period. On the other hand, the bias towards small and mid-cap companies was negative as the SMIC outperformed the SPIEX by +6.5%.

In terms of stock picking, the biggest contributors to relative performance came from overweights in Galderma, Swissquote,

OC Oerlikon, R&S Group, Sandoz, Accelleronand Baloise. Other contributors to performance came from underweights in Straumann, Adeccoand UBS.

On the other hand, overweights in Ams-Osram, Tecan, Swatchand SIGas well as our underweights in ABB, Holcim, Swiss Re, Nestle, Novartisand Rochedetracted from relative performance.

The Fund's private equity positions in Aravis Biotechand Spineartpositively contributed to performance.

Portfolio changes

In total, there were 12 purchases and 26 sales of listed equities on a net basis in the first half of 2024. As of June 30, 2024, there were 46 listed companies held by the Fund and 2 direct private equity investments, including one participation in a private equity limited partnership.

New Investments by the Fund

Galderma

Georg Fischer

Straumann

Additions to Existing Investments

AMS

Aryzta

BKW

Helvetia

Kuehne & Nagel

Sandoz

SFS

SIG Combibloc

St. Galler Kantonalbank

Positions Entirely Disposed of

Forbo

Idorsia

Selfrag AG

Reductions in Existing Investments

ABB

Accelleron

Alcon

Baloise

Barry Callebaut

Comet

Compagnie Financiere Richemont

DKSH

Givaudan

Julius Baer

Logitech

Lonza

Medacta

Nestle

Novartis

OC Oerlikon

Partners Group

Roche

Sika

Swiss Life

Swissquote

Tecan

VZ

Zurich Insurance

The Fund established new positions in Galderma, Georg Fischerand Straumann.

Galdermais a leading dermatology specialist which went public on SIX Swiss Exchange on 22 March 2024. The Fund participated in the IPO of Galderma. The business model of Galdermais convincing, and the end markets promise good growth. Normally, one must be cautious with IPOs of private equity-held companies. However, after the announcement of the transaction details, we believe that the transaction took an attractive price according to our valuation model.

Georg Fischeris a quality industrial company. Over the past several years, management has shifted the business focus more towards the attractive segment of piping, giving it less weight towards the automotive industry. We believe that the stock is attractively valued compared to other Swiss industrials.

Straumannis world leading player in the dental replacement and correction market. It has in the past experienced strong growth, and it has diversified its business in terms of applications and geography. The stock price reaction to its first quarter result, where it still grew by 15% organically in constant currency terms, seemed too harsh, which is why a position was established by the Fund after the sell-off.

We sold Forbo, before they reported a disappointing first half result, because the market environment for its two businesses is currently challenging. As a result of declining volumes, some factories ran below capacity. Management has addressed these issues, but we think the company will need more time until profits can grow again.

We sold Idorsia, as it had not made progress in terms of sales of its main products as we had expected.

Outlook

We have revised our global GDP growth forecasts to 2.8% for both this year and next, up from our previous projection for growth of 2.6% this year and 2.7% in 2025. That leaves us above consensus, which means that we expect most major economies to beat expectations on GDP growth over the next eighteen months. Decent GDP growth would also support a continued recovery in the global manufacturing cycle. However, we believe that inflation is also set to be a bit higher at 3.1% this year, due in large part to upside surprises from incoming data in the developed markets, before subsiding to a below consensus of 2.4% in 2025.

Source: Schroders Economics Group, 28 May 2024.

In the US, against a backdrop of robust demand, inflation has been stickier than expected. While steady disinflation is likely - we expect the CPI rate to fall from 3.1% this year to 2.2% next year - we see less room for interest rate cuts. We now expect the Fed to deliver a total of only 75 basis points (bps) of rate cuts through the end of 2025.

The eurozone economy emerged from its shallow recession in Q1 and we now expect GDP to grow by 0.9% this year (up from 0.7%, previously) and 1.8% in 2025 - comfortably above consensus. We also expect that Inflation will be higher this year at 2.3% (up from 2.1%, previously) as incoming data have been more positive than we had assumed. As a result, we expect the European Central Bank (ECB) to proceed with interest rate cuts, delivering an estimated 150 bps of easing starting in June until the end of 2025.

In Switzerland, the Federal Export Group on Business Cycles adjusted GDP growth estimates slightly up to 1.2% in 2024 (previously forecasted to be 1.1%) and left its forecast for 2025 unchanged at 1.7%. In May 2024, inflation in Switzerland reached a level of 1.4% year over year. This favourable inflation rate allowed the Swiss National Bank (SNB) to make the decision to lower interest rates by another 0.25% in June to a total of 1.25%. The SNB's proactive approach demonstrated their commitment to supporting the Swiss economy and ensuring its stability.

The overall environment for equities has improved over the course of the last few quarters in expectation of a more positive GDP growth environment. Swiss equities, in particular, which generate on average between 80-90% of their revenue abroad, benefited from the more positive global growth environment. Many Swiss

companies expressed optimism regarding the demand outlook for the second half of 2024. However, as visibility on the timing of a recovery is still limited for many companies, this could lead to short-term volatility.

Nevertheless, we believe that the path of interest rates could continue to be a more important factor for equity markets than a positive economic environment. The overall market sentiment seems susceptible to directional swings with significant reactions to singular data points on inflation, PMIs and jobs. These swings could mean that factors will continue to be a larger driver of markets than specific company fundamentals

In terms of our investment strategy, we remain focused on the long-term prospects of our holdings and will stick to our balanced positioning with a clear focus on high-quality firms with healthy balance sheets. As started in the last few quarters, we will continue to add to stocks that have experienced temporary setbacks due to minor negative news, whereas the long-term fundamental prospects remain fully intact. We are finding such stocks with such characteristics in various sectors, including the more cyclical segments.

Performance at a glance (unaudited)

Average annual total returns for the Fund's common stock for the periods ended 6/30/2024

Past performance does not predict future performance. The return and value of an investment will fluctuate so that an investor's share, when sold, may be worth more or less than their original cost. The Fund's common stock net asset value ("NAV") return assumes, for illustration only, that dividends and other distributions, if any, were reinvested at the NAV on the ex-dividend date. The Fund's common stock market price returns assume that all dividends and other distributions, if any, were reinvested at the lower of the NAV or the closing market price on the ex-dividend date. NAV and market price returns for the period of less than one year have not been annualized. Returns do not reflect the deduction of taxes that a stockholder could pay on Fund dividends and other distributions, if any, or the sale of Fund shares.

The Swiss Performance Index (SPI) is considered Switzerland's overall stock market index. It comprises practically all of the SIX Swiss Exchange-traded equity securities of companies that are domiciled in Switzerland or the Principality of Liechtenstein. You cannot invest directly in an index.

See Notes to Financial Statements.

See Notes to Financial Statements.

See Notes to Financial Statements.

See Notes to Financial Statements.

See Notes to Financial Statements.