Extension of Share Repurchase Programs by Three Funds
The Central and Eastern Europe Fund, Inc. (NYSE: CEE), The European Equity Fund, Inc. (NYSE: EEA), and The New Germany Fund, Inc. (NYSE: GF) announced that their Boards of Directors have approved extending their current share repurchase authorizations. This extension permits each Fund to continue its open-market share repurchase program for an additional twelve months, from August 1, 2024, through July 31, 2025. During this period, each Fund may repurchase its shares when they trade at a discount to net asset value (NAV) and when such purchases are considered beneficial for the Fund.
The timing and amount of repurchases will be determined by DWS Investment Management Americas, Inc., the Funds’ administrator, based on market conditions and investment considerations. The aim is to make repurchases at prices that will be accretive to the Fund’s NAV.
This extension follows the current repurchase programs, which run from August 1, 2023, to July 31, 2024. The results of these repurchases will be detailed in the Funds’ shareholder reports.
Additionally, the Boards of each Fund retain the discretion to initiate a tender offer during the same twelve-month period. The Boards will review this possibility regularly.
Important Information
Closed-end funds differ from open-end funds in that they are not continuously offered; their shares are sold on the open market through stock exchanges after an initial public offering. Shares often trade at a discount to NAV due to various factors beyond the control of the fund.
The Central and Eastern Europe Fund, Inc. is non-diversified, meaning it can hold larger positions in fewer issues, increasing potential risk. Investing in foreign securities entails risks such as currency fluctuations, political and economic changes, and market volatility, especially in emerging markets.
The European Equity Fund, Inc. is diversified and focuses on equity securities of European issuers, increasing its sensitivity to regional developments. The New Germany Fund, Inc. is similarly diversified but concentrates on German investments, heightening its exposure to developments in Germany.
Investing in foreign securities, particularly in emerging markets, carries specific risks like currency fluctuations, political and economic instability, and market volatility. Concentrating investments in specific regions or market segments can also increase volatility.
Geopolitical events, such as wars, terrorism, sanctions, and public health crises, have led and may continue to lead to significant disruptions in global economies and markets, affecting the Funds and their investments.
Sanctions imposed on Russia by the European Union, the United States, and other countries have adversely affected the Russian economy and individuals. In response, Russia has imposed sanctions targeting Western interests. These sanctions have also impacted economies in Central and Eastern Europe. The Central and Eastern Europe Fund, Inc. has been materially affected by Russia’s invasion of Ukraine, which has significantly impacted the value and liquidity of its portfolio.
This press release does not constitute an offer to sell or a solicitation to buy securities and is not applicable where such actions would be unlawful.
Forward-Looking Statements
Certain statements in this release are forward-looking, reflecting management’s current beliefs based on available information. These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Factors such as market and economic conditions, legal and regulatory developments, and geopolitical events could impact results. Management does not undertake any obligation to update these statements in light of new information or future events.
