The Central Europe, Russia and Turkey 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”) announced
today that the recent settlements involving Deutsche Bank AG and DB
Group Services (UK) Ltd. (described below) (the “Settlements”) do not
involve the Funds, Deutsche Asset & Wealth Management International
GmbH, Deutsche Investment Management Americas Inc., or any of their
affiliates that provide services to the Funds (the “DB Service
Providers”). The DB Service Providers have informed the Funds that,
subject to the receipt of a permanent exemptive order (described below),
the DB Service Providers believe the Settlements will not have any
material impact on the Funds or on the ability of the DB Service
Providers to perform services for the Funds.
Deutsche Asset & Wealth Management International GmbH (the “Advisor”),
with headquarters at Mainzer Landstrasse 178-190, 60327 Frankfurt am
Main, Germany, is the investment advisor for the Funds. The Advisor is
an indirect wholly owned subsidiary of Deutsche Bank AG. Deutsche
Investment Management Americas Inc. (the “Administrator”), with
headquarters at 345 Park Avenue, New York, NY 10154, is the
administrator for the Funds.
On April 23, 2015, Deutsche Bank AG announced that it had reached an
agreement with the United States Department of Justice to resolve an
investigation concerning claims that its indirect wholly owned
subsidiary, DB Group Services (UK) Ltd., engaged in a scheme to defraud
counterparties to interest rate derivatives trades executed on its
behalf by manipulating benchmark interest rates to which the
profitability of those trades was tied. Pursuant to its plea agreement
(the “Plea Agreement”) with the Department of Justice, DB Group Services
(UK) Ltd. entered a plea of guilty to one count of wire fraud in the
U.S. District Court for the District of Connecticut (the “District
Court”) in violation of federal law related to the conduct (the
“Conduct”) described in the Plea Agreement and agreed (i) to work with
Deutsche Bank AG in fulfilling the obligations described in the
undertakings given by Deutsche Bank AG in connection with resolving
investigations by certain other U.S. and non-U.S. regulatory agencies
that have addressed the Conduct; (ii) to continue to cooperate fully
with the Department of Justice and any other law enforcement or
government agency designated by the Department of Justice in a manner
consistent with applicable law and regulations; and (iii) to pay a fine
of $150 million. The DB Service Providers and DB Group Services (UK)
Ltd. expect that the District Court will enter a judgment against DB
Group Services (UK) Ltd. that will require remedies that are materially
the same as those set forth in the Plea Agreement.
The events leading up to the guilty plea did not arise out of the
investment advisory or investment company management or administration
activities of Deutsche Bank AG or its affiliates, including the Advisor
and the Administrator.
In addition, Deutsche Bank AG entered into a deferred prosecution
agreement (the “Deferred Prosecution Agreement”) with the Department of
Justice on April 23, 2015 relating to submissions of London Interbank
Offered Rate for U.S. Dollar and certain other benchmark interest rates.
In the Deferred Prosecution Agreement, Deutsche Bank AG has agreed,
among other things, (i) to continue to cooperate fully with the
Department of Justice and any other law enforcement or government agency
designated by the Department of Justice until the conclusion of all
investigations and prosecutions arising out of the conduct described in
the Deferred Prosecution Agreement; (ii) to retain an independent
compliance monitor for three years, subject to extension or, at the sole
discretion of the Department of Justice, early termination, to be
selected by the Department of Justice from among qualified candidates
proposed by Deutsche Bank AG; (iii) to further strengthen its internal
controls as recommended by the monitor as well as required by certain
other U.S. and non-U.S. regulatory agencies that have addressed the
misconduct described in the Deferred Prosecution Agreement; and (iv) to
the payment of $625 million. Deutsche Bank AG has also agreed to
settlement agreements with other U.S. and foreign regulators relating to
these matters.
As a result of the Plea Agreement, absent an order from the Securities
and Exchange Commission (the “SEC”), the Advisor and its affiliates
would not be able to continue to provide investment advisory services to
the Funds. The SEC has granted a temporary order to permit the Advisor
or its affiliates to provide investment advisory and underwriting
services to registered investment companies. The Advisor and its
affiliates have submitted an application for a permanent order; however,
there is no assurance that the SEC will grant a permanent order.
For more information on the Funds, including their most recent month-end
performance, visit www.dws-investments.com
or call (800) 349-4281 or 00-800-2287-2750 from outside the US.
Important Information
The Central Europe, Russia and Turkey Fund, Inc. is a
non-diversified, closed-end investment company seeking long term capital
appreciation through investment primarily in equity or equity-linked
securities of issuers domiciled in Central Europe, Russia and Turkey.
Because the Fund is non-diversified, it can take larger positions in
fewer issues, increasing its potential risk. 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 European Equity Fund, Inc. is a diversified, closed-end
investment company seeking long-term capital appreciation through
investment primarily in equity or equity-linked securities of companies
domiciled in countries that are members of the European Union.
The New Germany Fund, Inc. is a diversified, closed-end investment
company seeking capital appreciation primarily through investment in
equity or equity-linked securities of small and mid-cap German companies.
The Fund may invest up to 35% of its assets in large-cap German
companies and up to 20% in other Western European companies.
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. There can be no assurance that the Funds’ discount
management program will be effective in reducing the Funds’ market
discounts.
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 U.S. market. Additionally, each
of the Funds focuses its investments in certain geographical regions,
thereby increasing its vulnerability to developments in those regions
and potentially subjecting the Funds’ shares to greater price
volatility. Some funds have more risk than others. These include funds,
such as the Funds, 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).
The European Union, the United States and other countries have
imposed sanctions on Russia as a result of the ongoing Russian military
intervention in the Ukraine. These sanctions have adversely
affected Russian individuals, issuers and the Russian economy, and
Russia, in turn, has imposed sanctions targeting Western individuals,
businesses and products, including food 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 Germany. Potential developments in the Ukraine,
and the continuation of current sanctions or the imposition of
additional sanctions, may materially adversely affect the value or
liquidity of the Funds’ portfolios.
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.
NOT FDIC/ NCUA INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
NOT
A DEPOSIT • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
Deutsche Asset & Wealth Management represents the asset management and
wealth management activities conducted by Deutsche Bank AG or any of its
subsidiaries. Clients will be provided Deutsche Asset & Wealth
Management products or services by one or more legal entities that will
be identified to clients pursuant to the contracts, agreements, offering
materials or other documentation relevant to such products or services. (R-38246-1
4/15)
Copyright Business Wire 2015