STOCK TITAN

The Central and Eastern Europe Fund, Inc., The European Equity Fund, Inc., and The New Germany Fund, Inc. Announce Extension of Share Repurchases

Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Negative)
Tags

The Central and Eastern Europe Fund (NYSE: CEE), The European Equity Fund (NYSE: EEA), and The New Germany Fund (NYSE: GF) have extended their share repurchase programs for another 12 months, from August 1, 2024, through July 31, 2025. This continuation allows each fund to buy back its common stock in open-market transactions when shares trade at a discount to net asset value (NAV).

The Boards of Directors retain the discretion to initiate tender offers during this period. These decisions aim to be accretive to each Fund's NAV and are subject to market conditions. The funds focus on investments in Central and Eastern Europe, Europe, and Germany respectively, which may increase their vulnerability to regional developments and market volatility.

Il Fondo per l'Europa Centrale e Orientale (NYSE: CEE), il Fondo Azionario Europeo (NYSE: EEA) e il Nuovo Fondo Germania (NYSE: GF) hanno esteso i loro programmi di riacquisto di azioni per ulteriori 12 mesi, dall'1 agosto 2024 al 31 luglio 2025. Questa continuazione consente a ciascun fondo di riacquistare le proprie azioni ordinarie in transazioni sul mercato aperto quando le azioni vengono scambiate a un prezzo inferiore al valore netto degli attivi (NAV).

Le Direzioni mantengono la facoltà di avviare offerte pubbliche di acquisto durante questo periodo. Queste decisioni mirano ad essere accretive al NAV di ciascun fondo e sono soggette alle condizioni di mercato. I fondi si concentrano su investimenti nell'Europa Centrale e Orientale, in Europa e in Germania, rispettivamente, il che potrebbe aumentare la loro vulnerabilità agli sviluppi regionali e alla volatilità del mercato.

El Fondo de Europa Central y del Este (NYSE: CEE), el Fondo de Renta Variable Europeo (NYSE: EEA) y el Nuevo Fondo de Alemania (NYSE: GF) han ampliado sus programas de recompra de acciones por 12 meses más, desde el 1 de agosto de 2024 hasta el 31 de julio de 2025. Esta continuación permite a cada fondo recomprar sus acciones ordinarias en transacciones en el mercado abierto cuando las acciones se negocian con descuento respecto al valor neto de los activos (NAV).

Los Consejos de Administración conservan la discreción de iniciar ofertas públicas de adquisición durante este período. Estas decisiones tienen como objetivo ser acretivas al NAV de cada fondo y están sujetas a las condiciones del mercado. Los fondos se centran en inversiones en Europa Central y del Este, Europa y Alemania, respectivamente, lo que puede aumentar su vulnerabilidad a los desarrollos regionales y a la volatilidad del mercado.

중앙 및 동유럽 펀드 (NYSE: CEE), 유럽 주식 펀드 (NYSE: EEA), 그리고 새로운 독일 펀드 (NYSE: GF)는 자사주 매입 프로그램을 2024년 8월 1일부터 2025년 7월 31일까지 추가로 12개월 연장하였습니다. 이러한 계속적인 조치는 각 펀드가 순자산가치(NAV)에 비해 주식이 할인된 가격으로 거래될 때 자사 보통주를 매입할 수 있도록 합니다.

이사회는 이 기간 동안 공개 매수 제안 시작에 대한 재량권을 유지합니다. 이러한 결정은 각 펀드의 NAV에 긍정적 영향을 주기 위한 것이며, 시장 상황에 따라 달라질 수 있습니다. 이들 펀드는 각각 중앙 및 동유럽, 유럽, 독일에 대한 투자에 집중하고 있으며, 이는 지역적인 발전과 시장 변동성에 대한 취약성을 증가시킬 수 있습니다.

Le Fonds d'Europe Centrale et de l'Est (NYSE: CEE), le Fonds d'Actions Européennes (NYSE: EEA) et le Nouveau Fonds d'Allemagne (NYSE: GF) ont étendu leurs programmes de rachat d'actions pour 12 mois supplémentaires, du 1er août 2024 au 31 juillet 2025. Cette continuation permet à chaque fonds de racheter ses actions ordinaires lors de transactions sur le marché ouvert lorsque les actions se négocient à un prix inférieur à la valeur nette des actifs (NAV).

Les Conseils d'Administration conservent la discrétion d'initier des offres publiques d'achat durant cette période. Ces décisions visent à être accréditives au NAV de chaque Fonds et sont soumises aux conditions du marché. Les fonds se concentrent sur des investissements en Europe Centrale et de l'Est, en Europe et en Allemagne respectivement, ce qui peut accroître leur vulnerabilité aux développements régionaux et à la volatilité du marché.

Der Zentral- und Osteuropafonds (NYSE: CEE), der Europäische Aktienfonds (NYSE: EEA) und der Neue Deutschlandfonds (NYSE: GF) haben ihre Aktienrückkaufprogramme um weitere 12 Monate verlängert, vom 1. August 2024 bis zum 31. Juli 2025. Diese Fortsetzung ermöglicht es jedem Fonds, seine Stammaktien in offenen Markttransaktionen zurückzukaufen, wenn die Aktien mit einem Abschlag zum Nettoinventarwert (NAV) gehandelt werden.

Die Vorstände behalten sich das Ermessen vor, während dieses Zeitraums Übernahmeangebote zu initiieren. Diese Entscheidungen sollen zu jedem Fonds' NAV beitragen und unterliegen den Marktbedingungen. Die Fonds konzentrieren sich jeweils auf Investitionen in Zentral- und Osteuropa, Europa und Deutschland, was ihre Verwundbarkeit gegenüber regionalen Entwicklungen und Marktschwankungen erhöhen kann.

Positive
  • Extension of share repurchase programs for 12 months, potentially supporting share prices
  • Repurchases to be made when shares trade at a discount to NAV, potentially benefiting existing shareholders
  • Purchases will be accretive to each Fund's NAV, potentially increasing shareholder value
Negative
  • Funds are vulnerable to regional economic and political risks in Europe
  • Non-diversified nature of some funds increases potential risk
  • Ongoing geopolitical tensions and sanctions affecting Russian investments may impact fund performance

NEW YORK--(BUSINESS WIRE)-- The Central and Eastern Europe Fund, Inc. (NYSE: CEE), The European Equity Fund, Inc. (NYSE: EEA), and The New Germany Fund, Inc. (NYSE: GF) (each, a “Fund,” and collectively, the “Funds”) each announced today that its Board of Directors has approved an extension of the current repurchase authorization permitting open market share repurchase program for an additional twelve-month period. Each Fund may continue to purchase outstanding shares of its common stock in open-market transactions over the twelve-month period from August 1, 2024 through July 31, 2025 when the Fund’s shares trade at a discount to net asset value (“NAV”) and such purchases are deemed to be in the best interests of the Fund. The amount and timing of the repurchases will be at the discretion of DWS Investment Management Americas, Inc., the Funds’ administrator, and subject to market conditions and investment considerations. Purchases will be made at prices that will be accretive to each Fund’s NAV.

The authorization of the extension of the Funds’ repurchase programs follows the current repurchase programs, which commenced on August 1, 2023 through July 31, 2024. Results of repurchases under each Fund’s program appear in the Fund’s shareholder reports.

In addition, each Fund announced that its Board continues to reserve its discretion to determine if it would be appropriate to initiate a tender offer during the twelve-month period from August 1, 2024 through July 31, 2025. Each Board intends to continue to consider this matter on a regular basis.

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 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 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 Europe, thereby increasing its vulnerability to developments in that region. The New Germany Fund, Inc. is diversified and primarily focuses its investments in Germany, thereby increasing its vulnerability to developments in that country.

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

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, the United States and other countries have imposed sanctions on Russia in response to Russian military and other actions in recent years. These sanctions have adversely affected Russian individuals, issuers and the Russian economy. Russia, in turn, has imposed sanctions targeting Western individuals, businesses and products. The various sanctions have adversely affected, and may continue to adversely affect, not only the Russian economy, but also the economies of many countries in Europe, including countries in Central and Eastern Europe. In the case of the Central and Eastern Europe Fund, Inc., Russia’s invasion of Ukraine has materially adversely affected, and may continue to materially adversely affect, the value and liquidity of the Fund’s portfolio.

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
© 2024 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-101973-1) (07/24)

For additional information:

DWS Press Office (212) 454-4500

Shareholder Account Information (800) 294-4366

DWS Closed-End Funds (800) 349-4281

Source: DWS Investment Management Americas, Inc.

FAQ

What is the new timeline for the share repurchase programs of CEE, EEA, and GF?

The share repurchase programs for CEE, EEA, and GF have been extended for 12 months, from August 1, 2024, through July 31, 2025.

Under what conditions will CEE, EEA, and GF repurchase shares?

The funds will repurchase shares when they trade at a discount to net asset value (NAV) and when such purchases are deemed to be in the best interests of the Fund.

How might the share repurchase program affect CEE's stock price?

The share repurchase program for CEE may potentially support its stock price by allowing the fund to buy back shares when they trade at a discount to NAV, which could be accretive to the fund's NAV.

What are the main risks associated with investing in CEE?

The main risks of investing in CEE include its non-diversified nature, exposure to foreign securities, emerging market volatility, and potential impacts from geopolitical events and sanctions affecting Central and Eastern European markets.

The European Equity Fund, Inc.

NYSE:EEA

EEA Rankings

EEA Latest News

EEA Stock Data

56.91M
6.75M
0.1%
56.56%
0.04%
Asset Management
Financial Services
Link
United States of America
Frankfurt am Main