The Central and Eastern Europe Fund, Inc., The European Equity Fund, Inc., and The New Germany Fund, Inc. Make Yearly Distribution Announcements
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Insights
The declaration of distributions by The Central and Eastern Europe Fund, Inc. (CEE), The New Germany Fund, Inc. (GF) and The European Equity Fund, Inc. (EEA) represents a significant event for shareholders and potential investors. These distributions, which include net investment income and are devoid of capital gains for the current period, can affect investor sentiment and fund valuation. The choice offered to CEE and EEA shareholders to receive distributions in stock or cash provides flexibility and may influence the liquidity and market price of the funds' shares.
Furthermore, the funds' investment strategies and regional focus, particularly in volatile areas like Central and Eastern Europe, carry inherent risks that are exacerbated by geopolitical tensions, such as the conflict between Russia and Ukraine. Sanctions and counter-sanctions can have material impacts on asset values and market stability. The funds' concentration in specific geographical regions or market segments can lead to increased volatility compared to more diversified funds.
Investors should consider the potential for trading at a discount to net asset value (NAV), which is common among closed-end funds and assess how market dynamics, such as the ongoing geopolitical tensions and economic sanctions, may affect the funds' NAV and discount/premium to NAV. The long-term implications include the potential for both increased risk and return, depending on the resolution of the current conflicts and economic conditions in the targeted investment regions.
The performance and stability of funds specializing in emerging markets, such as CEE, are closely tied to the political and economic developments within those regions. The ongoing conflict between Russia and Ukraine, along with the imposition of sanctions, has already had detrimental effects on the region's markets and economies. These developments can lead to increased market volatility and may significantly affect the liquidity and valuation of the funds' portfolios.
Investors in these funds should be aware of the high level of risk associated with emerging markets, which can offer high rewards but also come with the potential for substantial losses. The funds' concentration in specific areas makes them sensitive to regional issues, which can have a disproportionate impact on performance. Monitoring the evolving geopolitical landscape and economic sanctions is crucial for assessing the long-term viability and risk profile of investments in these funds.
From a risk management perspective, the funds' strategies necessitate a thorough understanding of the risks associated with investing in specific regions, particularly in light of current geopolitical tensions. The non-diversification of CEE and the regional concentration of all funds increase their vulnerability to region-specific events. This can result in higher volatility and potential for losses, which must be carefully managed.
Investors and fund managers should employ robust risk assessment and mitigation strategies, considering factors such as currency fluctuations, political and economic changes and market risks. The ability to predict and manage these risks can significantly affect the funds' performance. Continuous monitoring of geopolitical events and their impacts on investments is necessary to adapt strategies in a timely manner and protect the funds' portfolios.
Details for each Fund’s 2023 yearly December distributions are as follows:
Declaration- 12/19/2023 Ex-Date- 12/28/2023 Record- 12/29/2023 Payable- 1/26/2024
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Fund
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Ticker
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Net Investment
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Short-Term
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Long-Term
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Total
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The Central and Eastern Europe Fund, Inc. |
CEE |
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The New Germany Fund, Inc. |
GF |
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The European Equity Fund, Inc. |
EEA |
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For more information on each Fund, including the most recent month-end performance, visit www.dwsfunds.com or call (800) 349-4281.
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 Central and Eastern Europe Fund, Inc. is non-diversified and can take larger positions in fewer issues, increasing its potential risk. Investing in foreign securities, particularly of emerging markets, 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. This fund is non-diversified and can take larger positions in fewer issues, increasing its potential risk.
The European Equity Fund, Inc. is diversified and primarily focuses its investments in equity securities of issuers domiciled in
The New Germany Fund, Inc. is diversified, and primarily focuses its investments in
The shares of most closed-end funds, including the Funds, 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. In the case of The Central and
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 Funds and their investments.
The European Union,
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
www.dws.com
Tel (800) 621-1148
© 2023 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-099096 -1) (12/23)
View source version on businesswire.com: https://www.businesswire.com/news/home/20231219347727/en/
For additional information:
DWS Press Office (212) 454-4500
Shareholder Account Information (800) 294-4366
DWS Closed-End Funds (800) 349-4281
Source: DWS
FAQ
What are the distribution details for The Central and Eastern Europe Fund, Inc. (CEE) for 2023?
How will The New Germany Fund, Inc. (GF) distribute its 2023 yearly December distributions?
What are the distribution details for The European Equity Fund, Inc. (EEA) for 2023?
Where can I find more information about the funds?
What are the risks associated with investing in foreign securities for the Central and Eastern Europe Fund, Inc. (CEE)?
What are the risks associated with investing in Germany for The New Germany Fund, Inc. (GF)?
What are the risks associated with investing in Europe for The European Equity Fund, Inc. (EEA)?
