The Central and Eastern Europe Fund, Inc. Announces the Rescission of the Previously Announced Change to the Fund’s Benchmark

Rhea-AI Summary

The Central and Eastern Europe Fund, Inc. (NYSE: CEE) has decided not to switch its benchmark from the MSCI Emerging Markets Eastern Europe Index to a custom blend, following their Board of Directors' assessment. The Fund will continue using the MSCI Emerging Markets Eastern Europe Index as its benchmark. However, the Board will still advocate for stockholder approval regarding the change in the concentration policy focusing on energy sector investments at the upcoming Annual Meeting of Stockholders.

Positive

• Retention of MSCI Emerging Markets Eastern Europe Index as the benchmark provides stability.
• Continued advocacy for stockholder approval suggests active governance.

Negative

• Potential concerns among investors regarding the concentration in the energy sector.

NEW YORK--(BUSINESS WIRE)-- The Central and Eastern Europe Fund, Inc. (NYSE: CEE) (the “Fund”) announced today that its Board of Directors determined not to proceed with the previously announced change of the benchmark index for the Fund from the MSCI Emerging Markets Eastern Europe Index to a custom blend of the MSCI Germany Index, 24% weight, the MSCI Austria Index, 4% weight, MSCI Switzerland Index, 12% weight, and the MSCI Emerging Markets Eastern Europe Index, 60% weight, contingent on stockholder approval of the removal of the Fund’s policy to concentrate its investments in the energy sector. Accordingly, the Fund will retain the MSCI Emerging Markets Eastern Europe Index as the benchmark index for the Fund. The Board of Directors determined that it will continue to recommend stockholder approval at the Fund’s Annual Meeting of Stockholders of the proposal to change the Fund’s concentration policy.

For more information on the Fund, visit www.dwsfunds.com or call (800) 349-4281.

IMPORTANT INFORMATION

Closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed-end funds are sold in the open market through a stock exchange. Shares of closed-end funds frequently trade at a discount to net asset value. The price of the fund’s shares is determined by a number of factors, several of which are beyond the control of the fund. Therefore, the fund cannot predict whether its shares will trade at, below or above net asset value.

The Fund is non-diversified and can take larger positions in fewer issues, increasing its potential risk, and also concentrates its investments in the energy sector. Investing in foreign securities presents certain risks, such as currency fluctuations, political and economic changes, and market risks. Emerging markets tend to be more volatile and less liquid than the markets of more mature economies, and generally have less diverse and less mature economic structures and less stable political systems than those of developed countries. Any fund that focuses in a particular segment of the market or region of the world will

The shares of most closed-end funds, including the Fund, are not continuously offered. Once issued, shares of closed-end funds are bought and sold in the open market through a stock exchange. Shares of closed-end funds frequently trade at a discount to net asset value. The price of a fund’s shares is determined by a number of factors, several of which are beyond the control of the fund. Therefore, a fund cannot predict whether its shares will trade at, below, or above net asset value.

War, terrorism, sanctions, economic uncertainty, trade disputes, public health crises and related geopolitical events have led, and, in the future, may lead to significant disruptions in US and world economies and markets, which may lead to increased market volatility and may have significant adverse effects on the fund and its investments.

This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.

Certain statements contained in this release may be forward-looking in nature. These include all statements relating to plans, expectations, and other statements that are not historical facts and typically use words like “expect,” “anticipate,” “believe,” “intend,” and similar expressions. Such statements represent management’s current beliefs, based upon information available at the time the statements are made, with regard to the matters addressed. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Management does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. The following factors, among others, could cause actual results to differ materially from forward-looking statements: (i) the effects of adverse changes in market and economic conditions; (ii) legal and regulatory developments; and (iii) other additional risks and uncertainties, including public health crises (including the recent pandemic spread of the novel coronavirus), war, terrorism, trade disputes and related geopolitical events.

Past performance is no guarantee of future results.

NOT FDIC/ NCUA INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
NOT A DEPOSIT • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

DWS Distributors, Inc. 222 South Riverside Plaza Chicago, IL 60606-5808 www.dws.com

Tel (800) 621-1148

© 2022 DWS Group GmbH & Co. KGaA. All rights reserved

The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc. which offers investment products or DWS Investment Management Americas, Inc. and RREEF America L.L.C. which offer advisory services. (R-089785-1) (05-2022)

View source version on businesswire.com: https://www.businesswire.com/news/home/20220506005503/en/

For additional information:

DWS Press Office (212) 454-4500

Shareholder Account Information (800) 294-4366

DWS Closed-End Funds (800) 349-4281

Source: The Central and Eastern Europe Fund, Inc.

FAQ

What is the current benchmark index for Central and Eastern Europe Fund (CEE)?

The current benchmark index for Central and Eastern Europe Fund (CEE) is the MSCI Emerging Markets Eastern Europe Index.

Why did the Central and Eastern Europe Fund (CEE) decide not to change its benchmark?

The Fund's Board of Directors decided not to proceed with the change based on their assessment, opting to retain the MSCI Emerging Markets Eastern Europe Index.

Will the Central and Eastern Europe Fund (CEE) change its investment concentration policy?

The Board of Directors will continue to recommend stockholder approval for the proposal to change the Fund's concentration policy at the Annual Meeting.

What is the impact of the energy sector concentration on CEE investments?

The concentration in the energy sector potentially increases risk for investors, as it makes the Fund more susceptible to fluctuations in that sector.