Semi Annual Report - DWS Investments

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THE CENTRAL EUROPE, RUSSIA AND TURKEY FUND, INC.NOTES TO FINANCIAL STATEMENTS — APRIL 30, 2013 (unaudited) (continued)required to conduct a tender offer if its shares trade at anaverage discount to NAV of more than 10% during the applicabletwelve-week measurement period. The firstmeasurement period commenced on September 10, 2012and expired on November 30, 2012. During the measurementperiod the Fund’s shares traded at an average discountto NAV of 10.18%. Therefore, the Fund conducteda tender offer which commenced on February 11, 2013and expired on March 12, 2013. The Fund accepted654,331 tendered shares (which represented 5% of theFund’s outstanding shares of common stock) at a priceequal to 98% of the NAV per share as of the close of theregular trading session of the New York Stock Exchangeon March 13, 2013. Approximately 9,528,823 shares ofcommon stock, or approximately 73% of the Fund’s commonshares outstanding, were tendered through the expirationdate. Because the offer was oversubscribed, not allof the tendered shares were accepted for payment by theFund. Under the final pro-ration calculation, approximately7% of the tendered shares were accepted for payment.The shares accepted for payment received cash at arepurchase price of $36.82, per share, which was equal to98% of the NAV per share on March 13, 2013.The second measurement period commenced on March 25,2013 and expired on June 14, 2013. During the measurementperiod the Fund’s shares traded at an average discountto NAV of 10.16%. The Fund will therefore conduct a tenderoffer for up to 5% of its outstanding shares at a price equalto 98% of NAV. The commencement of the tender offer forthe Fund is expected to occur on or about August 12, 2013.NOTE 9. CHANGE IN INVESTMENT OBJECTIVE ANDCHANGE IN NAME OF THE FUNDAt a Special Meeting of Stockholders held on April 19,2013, Stockholders approved changing the Fund’sinvestment objective from “seeking long-term capitalappreciation through investment primarily in equity andequity-linked securities of issuers domiciled in CentralEurope and Russia” to “seeking long-term capital appreciationthrough investment primarily in equity or equitylinkedsecurities of issuers domiciled in Central Europe,Russia and Turkey.” Stockholders also approved a changein the Fund’s corresponding fundamental investment policyto provide that, “under normal circumstances, the Fund willinvest at least 80% of its net assets (plus borrowings usedfor investment purposes) in securities of issuers domiciledin Central Europe, Russia and Turkey.” Consequently, theFund is now able to invest in securities of issuers domiciledin Turkey to a greater extent than previously.Effective as of the close of business on April 26, 2013, theFund’s name was changed to “The Central Europe, Russiaand Turkey Fund, Inc.” There were no changes to theFund’s ticker symbol on the New York Stock Exchange orthe CUSIP number for its shares. No action was required bystockholders relating to this change.NOTE 8. CONCENTRATION OF OWNERSHIPFrom time to time, the Fund may have a concentration ofseveral shareholder accounts holding a significant percentageof shares outstanding. Investment activities of theseshareholders could have a material impact on the Fund. AtApril 30, 2013, there were three shareholders that held approximately28%, 16% and 7%, respectively, of the outstandingshares of the Fund.25
THE CENTRAL EUROPE, RUSSIA AND TURKEY FUND, INC.STATEMENT OF INVESTMENT OBJECTIVE, POLICIES AND INVESTMENT RESTRICTIONS(unaudited)Investment Objective. The investment objective of The Central Europe, Russia and Turkey Fund, Inc. (the “Fund”) is toseek long-term capital appreciation through investment primarily in equity or equity-linked securities of issuers domiciledin Central Europe, Russia and Turkey. The term “Central Europe” includes, for this purpose, Republic of Albania, Republicof Austria, Republic of Belarus, Republic of Bosnia and Herzegovina, Republic of Bulgaria, Republic of Croatia, CzechRepublic, Republic of Estonia, Federal Republic of Germany, Republic of Hungary, Republic of Latvia, Grand Duchy ofLiechtenstein, Republic of Lithuania, former Yugoslav Republic of Macedonia, Republic of Moldova, Republic of Poland,Romania, Slovak Republic, State Union of Serbia and Montenegro, Republic of Slovenia, Swiss Confederation, andUkraine.Current interest and dividend income is not an objective of the Fund. No assurance can be given that the Fund will be ableto achieve its investment objective.Under normal circumstances, the Fund will invest at least 80% of its net assets (plus borrowings used for investment purposes)in the securities of issuers domiciled in Central Europe, Russia and Turkey. The Fund may also invest in equity orequity-linked securities of issuers domiciled elsewhere in Europe. The term “Europe” includes the countries of CentralEurope, as well as the Kingdom of Belgium, Republic of Cyprus, Kingdom of Denmark, Republic of Finland, Republic ofFrance, Hellenic Republic (“Greece”), Republic of Iceland, Republic of Ireland, Italian Republic, Grand Duchy ofLuxembourg, Republic of Malta, Kingdom of the Netherlands, Kingdom of Norway, Republic of Portugal, Kingdom ofSpain, Kingdom of Sweden, Republic of Turkey and United Kingdom of Great Britain and Northern Ireland. Any futurecountry or countries (or other political entity) formed by combination or division of the countries comprising CentralEurope or Europe shall also be deemed to be included within the term “Central Europe” or “Europe,” respectively.An issuer is deemed to be domiciled in a country or region if: (1) it is organized under the laws of that country, or a countrywithin that region, or maintains its principal place of business in that country or region, (2) it derives 50% or more of itsannual revenues or profits from goods produced or sold, investments made or services performed in that country or region,or has 50% or more of its assets in that country or region, in each case as determined in good faith by the Fund’s investmentadviser, or (3) its equity securities are traded principally in that country or region.The Fund’s investment objective and the investment policies described above are fundamental and may be changedonly by the approval of a majority of the Fund’s outstanding voting securities. Under the Investment Company Act of 1940,as amended (the “1940 Act”), a “majority” means 67% of the Fund’s shares present at a meeting of its stockholders if theowners of more than 50% of the shares of the Fund then outstanding are present in person or by proxy or, if lower, morethan 50% of the Fund’s outstanding shares. The Fund refers to this approval voting level as a “majority vote.” The Fundwill not trade in securities for short-term gain.For purposes of the above policies and for the policies and practices described below, all percentage limitations apply onlyimmediately after a transaction, and any subsequent change in any applicable percentage resulting from changing valueswill not require elimination of any security or other asset from the Fund’s portfolio.Unless otherwise stated, the other investment policies described below are non-fundamental and may be changed by theBoard of Directors (the “Board”) without a stockholder vote.26
Page 1 and 2: SUMMARY OF GENERAL INFORMATIONTHE F
Page 4 and 5: LETTER TO THE SHAREHOLDERS (continu
Page 6 and 7: FUND FACTS AND DIVIDEND AND CAP GAI
Page 8 and 9: INTERVIEW WITH PORTFOLIO MANAGEMENT
Page 10 and 11: DIRECTORS OF THE FUND (continued)Te
Page 12 and 13: DIRECTORS OF THE FUND (continued)Te
Page 14 and 15: THE CENTRAL EUROPE, RUSSIA AND TURK
Page 34: THE CENTRAL EUROPE, RUSSIA AND TURK

Semi Annual Report - DWS Investments

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