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Banks (Finance)

Deutsche Bank Settlements Do Not Impact Funds

Strategic Insights

— 2 min read

Deutsche Asset & Wealth Management International GmbH, the investment advisor for several Deutsche Bank funds, has clarified that recent settlements involving the bank do not impact the performance of the funds or their ability to provide services. The settlements, worth $775 million in total, were reached to resolve allegations of interest rate manipulation and benchmark rigging. The funds, including the Central Europe, Russia and Turkey Fund, Inc., The European Equity Fund, Inc., and The New Germany Fund, Inc., have not been implicated in the settlements and continue to operate as usual.

Key Takeaways:

  • The Central Europe, Russia and Turkey Fund, Inc., The European Equity Fund, Inc., and The New Germany Fund, Inc. were not involved in the Deutsche Bank settlements related to interest rate manipulation and benchmark rigging.
  • Deutsche Asset & Wealth Management International GmbH, the investment advisor for the funds, has stated that the settlements will not have a material impact on the funds or their ability to perform services.
  • The funds will continue to operate as usual, with the Central Europe, Russia and Turkey Fund, Inc. seeking long-term capital appreciation through investment in equity or equity-linked securities of issuers in Central Europe, Russia, and Turkey.
  • The European Equity Fund, Inc. seeks long-term capital appreciation through investment in equity or equity-linked securities of companies in countries that are members of the European Union.
  • The New Germany Fund, Inc. seeks capital appreciation primarily through investment in equity or equity-linked securities of small and mid-cap German companies.
  • The funds are not continuously offered and shares are traded on the open market, with prices determined by a number of factors beyond the control of the fund.
  • Investments in the funds involve risk, including international investing risks such as currency fluctuations, political and economic changes, and market risks.

Statistics:

  • Total value of settlements: $775 million ($150 million for DB Group Services (UK) Ltd. and $625 million for Deutsche Bank AG)
  • Number of funds involved: 3 (Central Europe, Russia and Turkey Fund, Inc., The European Equity Fund, Inc., and The New Germany Fund, Inc.)
  • Market capitalization of funds: not specified
  • Total assets under management: not specified
  • Geographic regions invested in: Central Europe, Russia, Turkey, and European Union countries
  • Time period affected: ongoing Russian military intervention in the Ukraine and related sanctions

Sources:

  • Deutsche Asset & Wealth Management International GmbH press release
  • Central Europe, Russia and Turkey Fund, Inc. prospectus
  • European Equity Fund, Inc. prospectus
  • New Germany Fund, Inc. prospectus
  • SEC filing (not specified)
  • Bloomberg (not specified)
  • Reuters (not specified)
  • Deutsche Bank AG press release (April 23, 2015)

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