DWS Investments and the Board of Directors of the DWS Funds
announced a series of initiatives designed to enhance the liquidity
of shareholders’ investments and to reduce the trading discounts
for three closed-end funds: DWS Dreman Value Income Edge Fund,
Inc. (NYSE: DHG), DWS Global High Income Fund, Inc. (NYSE:
LBF), and DWS RREEF World Real Estate Fund, Inc. (NYSE:
DRP).
DHG - Tender Offer, Enhanced Repurchase
Program, and Investment Strategy Change
The Board has authorized DHG to conduct an issuer self-tender
offer to purchase up to 25% of its outstanding common shares for
cash at a price per share equal to 99% of its NAV as of the close
of trading on the New York Stock Exchange (“NYSE”) on the day after
the date on which the offer expires. Subject to the exercise by the
Board of its fiduciary duties, the tender offer is expected to
commence on or before October 22, 2010.
The Board has also approved a program for DHG to purchase its
own shares on the open market from December 1, 2010 until May 31,
2011 during times whenever the fund’s common shares are trading on
the NYSE at a discount to net asset value per share (“NAV”) in
excess of 5%, up to a maximum of 2% of its total outstanding common
shares per month. This enhanced repurchase program is in addition
to the previously announced one-year extension of DHG’s existing
repurchase program, under which the fund is permitted to purchase
an aggregate of up to 5% of its outstanding shares over the period
from December 1, 2010 until November 30, 2011. Because repurchases
by a fund are subject to legal limitations, DHG may not be able to
reach the 2% monthly limits.
Lastly, the Board has approved a change to DHG’s investment
objective, and related changes to DHG’s investment strategy and
investment policies, to reflect an increased emphasis on seeking a
higher yield. This shift to a pure high-yield strategy, from DHG’s
current approach of income plus an equity hedge strategy, is
intended to improve yield and to reposition the fund within a
category that has historically traded at relatively low discounts
or at premiums. In connection with the strategy change, DHG will
change its name to “DWS High Income Opportunities Fund, Inc.” and
its investment objective to provide that the fund “seeks high
current income with a secondary objective of total return.” In
connection with the strategy change, the Board has also voted to
terminate DHG’s Sub-Advisory Agreement with Dreman Value Management
LLC and has agreed to transition portfolio management to the fund’s
investment advisor, Deutsche Investment Management Americas Inc.
(“DIMA”), more specifically to DIMA’s High Yield group lead by Gary
Russell. The above-described changes in the fund’s investment
objective, investment strategy and related investment policies, and
portfolio management team are currently intended to take effect in
December 2010. Shareholders will receive more detailed information
regarding these changes in the fund’s upcoming annual report for
the fiscal year ended September 30, 2010.
LBF – Tender Offer and Change in
Stockholder Meeting Date
The Board has authorized LBF to conduct a tender offer on
identical terms to that of DHG, described above. LBF will offer to
purchase up to 25% of its outstanding common shares for cash at a
price of 99% of the fund’s NAV as of the close of trading on the
NYSE on the day after the date on which the offer expires. Subject
to the Board’s exercise of its fiduciary duties, the tender offer
is expected to commence on or before October 22, 2010.
Under the terms of a Liquidity Program and Standstill Agreement
that DIMA has entered into with Western Investment LLC (“Western”),
an insurgent shareholder in a number of DWS closed-end funds, and
certain parties associated with Western, Western has agreed to
withdraw its proposals for action at LBF’s upcoming Annual Meeting
of Stockholders. In anticipation of the uncontested nature of the
upcoming meeting and the need to revise previously filed proxy
materials, the Board has moved the meeting date to October 28, 2010
at 10:00 a.m. at the offices of Deutsche Asset Management, 345 Park
Avenue, New York, New York 10154. The previously announced record
date remains effective, and holders of record of shares of common
stock of the Fund at the close of business on August 13, 2010 are
entitled to vote at the meeting and any adjournments or
postponements thereof. The Board will continue to monitor LBF’s
discount to NAV and may consider such other actions that might be
appropriate for the fund in the future.
DRP - Merger into DWS RREEF Global Real
Estate Securities Fund
The Board has approved in principle a plan to merge DRP with and
into DWS RREEF Global Real Estate Securities Fund, an open-end
investment company and series of DWS Advisor Funds that is managed
by the same investment manager, sub-adviser and portfolio
management team as DRP. The Board expects to recommend that
shareholders vote in favor of the merger, which would allow
shareholders to maintain their investments in a similarly managed
portfolio that offers them daily liquidity for their shares at net
asset value (subject to any applicable redemption fee). Completion
of the proposed merger is subject to a number of conditions and
other factors, including final Board approval and approval by
shareholders. The merger is expected to close on or before March 1,
2011.
As noted above, certain of the above-described initiatives are
in accordance with a Liquidity Program and Standstill Agreement
recently entered into by and among DIMA, Western, and certain
parties associated with Western. Under that agreement, Western
agreed to withdraw its shareholder proposals and refrain from
insurgent activities with respect to the DWS closed-end funds
through October 31, 2015. DWS Investments anticipates that Western
will file a copy of the agreement with the Securities and Exchange
Commission as an exhibit to its Schedule 13D.
For more information visit www.dws-investments.com or call (800)
349-4281.
DWS Dreman Value Income Edge Fund, Inc. (DHG) is subject to
investment risk. Short sales - which involve selling
borrowed securities in anticipation of a price decline, then
returning an equal number of the securities at some point in the
future - could magnify losses and increase volatility. Any fund
that concentrates in a particular segment of the market will
generally be more volatile than a fund that invests more broadly.
Bond investments are subject to interest-rate and credit risks.
When interest rates rise, bond prices generally fall. Credit risk
refers to the ability of an issuer to make timely payments of
principal and interest. Investments in lower-quality and non-rated
securities present greater risk of loss than investments in
higher-quality securities. Stocks may decline in value. Investing
in derivatives entails special risks relating to liquidity,
leverage and credit that may reduce returns and/or increase
volatility. Leverage results in additional risks and can
magnify the effect of any losses.
DWS RREEF World Real Estate Fund, Inc. (DRP) is subject to
investment risk. Any fund that concentrates in a particular segment
of the market will generally be more volatile than a fund that
invests more broadly. There are special risks associated with an
investment in real estate, including credit risk, interest rate
fluctuations and the impact of varied economic conditions.
Investing in derivatives entails special risks relating to
liquidity, leverage and credit that may reduce returns and/or
increased volatility. Leverage results in additional risks and can
magnify the effect of any losses. Investing in foreign securities,
particularly those of emerging markets, presents certain risks,
such as currency fluctuations, political and economic changes, and
market risks.
DWS Global High Income Fund, Inc. (NYSE: LBF) is a
non-diversified closed-end management investment company.
The Fund’s primary investment objective is to seek high current
income as its primary objective and capital appreciation as a
secondary objective through investment principally in global income
securities. Bond investments are subject to interest-rate
and credit risks. When interest rates rise, bond prices generally
fall. Credit risk refers to the ability of an issuer to make timely
payments of principal and interest. Investing in foreign
securities, particularly those of emerging markets, presents
certain risks, such as currency fluctuations, political and
economic changes, and market risks. This fund is non-diversified
and can take larger positions in fewer issues, increasing its
potential risk. Leverage results in additional risks and can
magnify the effect of any losses.
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 the 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.
This announcement is not a recommendation, an offer to
purchase or a solicitation of an offer to sell shares of any fund.
None of the funds has commenced any self-tender offer described in
this press release. Upon commencement of each tender offer, the
applicable fund will file with the Securities and Exchange
Commission a tender offer statement on Schedule TO and related
exhibits, including an offer to purchase, letter of transmittal,
and other related documents. Shareholders of each such fund should
read the offer to purchase and the tender offer statement on
Schedule TO and related exhibits when such documents are filed and
become available, as they will contain important information about
that fund’s tender offer. Shareholders can obtain these documents
when they are filed and become available free of charge from the
Securities and Exchange Commission’s website at
www.sec.gov.
The foregoing is not an offer to sell, nor a solicitation of
an offer to buy, shares of any fund, nor is it a solicitation of
any proxy. For more information regarding the funds, or to receive
a free copy of materials filed with the SEC, including a
prospectus/proxy statement relating to a proposed merger (and
containing important information about fees, expenses and risk
considerations), once a registration statement relating to such
merger has been filed with the SEC and becomes effective,
shareholders can visit the SEC’s website
(http://www.sec.gov). Please read any applicable
prospectus/proxy statement carefully before making any investment
decisions.
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
DWS Investments is part of Deutsche Bank’s Asset Management
division and, within the US, represents the retail asset management
activities of Deutsche Bank AG, Deutsche Bank Trust Company
Americas, Deutsche Investment Management Americas Inc. and DWS
Trust Company. (R-19286-1 10/10)
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