The Central and Eastern Europe Fund, Inc. Provides Further Russia Update

Rhea-AI Summary

The Central and Eastern Europe Fund (NYSE: CEE) announced that its investment adviser, DWS International GmbH, will refrain from making new investments in Russian securities due to worsening conditions affecting Russian issuers. The decision is based on the best interests of fund clients and aims to mitigate risks associated with emerging markets, which are often more volatile. The Fund emphasizes that investments in foreign securities carry risks related to currency fluctuations and political changes.

Positive

• The Fund's decision to avoid new investments in Russian securities may help protect shareholders from potential losses given the deteriorating market conditions.

Negative

• Deteriorating conditions affecting Russian issuers may impact overall fund performance due to increased market volatility.
• Focus on the energy sector could expose the fund to greater risk amidst geopolitical tensions.

NEW YORK--(BUSINESS WIRE)-- The Central and Eastern Europe Fund, Inc. (NYSE: CEE) (the “Fund”) today announced that its investment adviser, DWS International GmbH (“DWSI”), has informed it that, until further notice, and in light of the deteriorating conditions affecting Russian issuers, DWSI believes that it is not in the best interests of its actively managed fund clients (including the Fund) to make new investments in Russian securities. For more information on the Fund, visit www.dwsfunds.com or call (800) 349-4281.

IMPORTANT INFORMATION

Investing in foreign securities, particularly those of emerging markets, presents certain risks, such as currency fluctuations, political and economic changes, and market risks. Any fund that concentrates in a particular segment of the market will generally be more volatile than a fund that invests more broadly.

The Central and Eastern Europe Fund, Inc. 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 generally be more volatile than a fund that invests more broadly.

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.

Investments in funds involve risk. Additional risks of the Fund are associated with international investing, such as currency fluctuations, political and economic changes, market risks, government regulations and differences in liquidity, which may increase the volatility of your investment. Foreign security markets generally exhibit greater price volatility and are less liquid than the US market. Additionally, the Fund focuses its investments in certain geographical regions, thereby increasing its vulnerability to developments in that region and potentially subjecting the Fund’s shares to greater price volatility. Some funds have more risk than others. These include funds, such as the Fund, that allow exposure to or otherwise concentrate investments in certain sectors, geographic regions, security types, market capitalization, or foreign securities (e.g., political, or economic instability, which can be accentuated in emerging market countries).

War (including Russia’s invasion of Ukraine, as discussed above), terrorism, economic uncertainty, trade disputes, public health crises (including the recent pandemic spread of the novel coronavirus) and related geopolitical events could lead to increased market volatility, disruption to US and world economies and markets and may have significant adverse effects on the Funds and their 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-088479) (03-2022)

View source version on businesswire.com: https://www.businesswire.com/news/home/20220302005926/en/

DWS Press Office (212) 454-4500

Shareholder Account Information (800) 294-4366

DWS Closed-End Funds (800) 349-4281

Source: DWS

FAQ

Why is the Central and Eastern Europe Fund (NYSE: CEE) avoiding investments in Russian securities?

The Fund is avoiding new investments in Russian securities due to deteriorating market conditions that could adversely affect its clients.

What are the risks of investing in the Central and Eastern Europe Fund (NYSE: CEE)?

Investing in the Fund involves risks such as currency fluctuations, political changes, and increased volatility due to its focus on emerging markets.

How does the Central and Eastern Europe Fund (NYSE: CEE) manage investment risks?

The Fund, through its adviser DWS International GmbH, assesses market conditions and adjusts investment strategies to protect its clients' interests.