Hottinger Capital Corp Decides to Vote Against Swiss Helvetia Fund Proposal

  Hottinger Capital Corp Decides to Vote Against Swiss Helvetia Fund Proposal

Business Wire

NEW YORK -- June 24, 2014

Hottinger Capital Corp (“HCC”), a stockholder of the Swiss Helvetia Fund, Inc.
(the “Fund”), today announced that it would be voting against theproposals to
approve an Investment Advisory Agreement and a Sub-Advisory Agreement with
Schroder Investment Management North America (“Schroder”) and an affiliate of
Schroder which stockholders are being asked to consider at the upcoming Annual
Meeting of Stockholders on June 27, 2014. The decision to vote against the
proposal is primarily because:

1.Voting against the proposal and retaining HCC at its proposed new fee will
result in an annual savings of approximately $745,000 compared to the Schroder
proposal for investors in the Fund.

HCC, which is the current investment manager of the Fund, has proposed a
significantly lower management fee for the Fund if it is retained as
investment advisor. As noted in the Fund’s recent proxy amendment, “the fee
rate proposed by HCC would reduce the annual investment advisory fees payable
by the Fund below the fee rate currently proposed by Schroders by
approximately $745 thousand (based on the Fund’s net assets of December 31,
2013 and assuming that amount remained constant for a year).” This reduction
in fees is an important element of HCC’s most recent proposal made to the Non
Interested Directors of the Board of the Fund and HCC would be willing to
continue providing investment management services to the Fund on this basis if
stockholders vote against appointment of Schroder as the investment manager.
HCC’s proposal also included HCC absorbing the cost of the compliance officer
resulting in additional annual savings to the Fund. We believe that this
significant savings in fees, coupled with HCC performance history, strongly
suggest that it is in our best interest as an investor in the Fund to retain
HCC instead of approving Schroders as the adviser to the Fund.

2. The Swiss banking regulators, on June 13, 2014, approved a recapitalization
of the parent of HCC such that any concerns about its capitalization should be

As part of the recapitalization, the ownership of the HCC parent changed in
certain respects. Some investors decreased their percentage ownership in the
parent and certain new investors were added. The new shareholder have
ownership interests ranging from 3.85% to 19.23%. Although the changes in
ownership percentages could trigger a “change of control” under the Investment
Company Act of 1940, such a change of control is a fairly common occurrence
and can be dealt with by Board approval of an interim investment advisory
agreement followed by shareholder approval of the agreement through a
shareholder proxy statement. Because such a proxy statement would be paid for
by HCC or its parent there is little down side to investors of this change of
control. To the contrary, we believe that the recapitalization and change of
control are reasons to retain HCC and vote against the proposal to hire

About Hottinger Capital Corp

Hottinger Capital Corp is an affiliate of Groupe Banque Hottinger & Cie SA.


For any information about this press release:
Hottinger Capital Corp
Ruedi Millisits, 212-332-7930
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