the germany funds

Fund Performance

The Germany Funds

June 28. 2010

Annual Shareholder Meeting

2

Important Notes: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 net asset value. The price of the fund's shares is determined by a number of factors. several of which are beyond the control of the fund. Therefore. the fund cannot predict whether its shares will trade at. below or above net asset value.

Past results of the markets as discussed in this presentation are not necessarily indicative of future performance of those markets.

The Central Europe and Russia Fund, Inc. (CEE) is subject to investment risks. The fund is non-diversified and 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.

References to securities. transactions and holdings should not be considered a recommendation to purchase or sell a particular security and there is no assurance. as of the date of publication. that the securities remain in the portfolio. Additionally. it is noted that the securities or transactions referenced do not represent all of the securities purchased. sold or recommended during the period referenced and there is no guarantee as to the future profitability of any of the securities identified and discussed herein. We or our affiliates or persons associated with us. or such affiliates (associated persons) may maintain a long or short position in securities referred to herein. or in related futures or options; purchase or sell. make a market in. or engage in any other transaction involving such securities. and earn brokerage or other compensation in respect of the foregoing.

3

Important definitions S&P 500 is an index that represents the US equity market in general. NASDAQ 100 is an index that tracks the includes 100 of the largest domestic and international non-

financial securities listed on The Nasdaq Stock Market based on market capitalization. FTSE 100 is an index representing the 100 most highly capitalised UK companies listed on the

London Stock Exchange. DAX is a total rate of return index of 30 selected German blue chip stocks traded on the Frankfurt

Stock Exchange. CAC is a market-capitalization-weighted index of the 40 most actively traded stocks on the Paris

Bourse. TOPIX (Tokyo Price Index) is an index that measures stock prices on the Tokyo Stock Exchange. HANG SENG is a market capitalization-weighted stock market index in Hong Kong and is the main

indicator of the overall market performance in Hong Kong. China A-Share refers to an index that measures the performance of companies listed on the

Shanghai Stock Exchange. A-shares are quoted in yuan, and are only available to foreign investment through a qualified program.

MSCI Emerging Markets Europe Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the emerging market countries of Europe.

Index performance includes reinvestment of all distributions and does not reflect fees or expenses. It is not possible to invest directly in an index.

4

Important definitions

ISM refers to the Institute for Supply Management. CPI (Consumer Price Index) is a standard measure of inflation. GDP (Gross Domestic Product) is a measure of a country's overall

economic output. EPS (Earnings Per Share) is the portion of a company's profit

allocated to each outstanding share of common stock. Beta is a quantitative measure of the volatility of a given mutual fund,

or portfolio, relative to the overall market. Spot market price of a commodity, a security or a currency is the

price that is quoted for immediate (spot) settlement (payment and

delivery).

5

Overview of Management SetupRainer Vermehren. Portfolio Manager•Portfolio manager for Emerging Markets Equity: Frankfurt •Joined DWS in 1997 after 3 years of experience as assistant to fund manager in Latin American equities at Morgan Stanley. New York •BA from University of Maryland; MBA from Fordham University

The Germany Funds

Updated: May 2010

6

Development of global markets

Source: BloombergAs of June 2010

LAST % 3M % 6M % 12M % 2Yr % 3Yr % 5Yr % 6M change

S&P 500 1.118 -2,8 1,2 22,4 -14,5 -25,9 -7,1 1

NASDAQ 100 1.913 -0,3 5,4 30,9 -0,1 -0,8 25,4 2

MEXICO 5.420 2,6 7,5 45,1 -7,0 -17,1 86,9 3

BRAZIL 3.274 -4,6 -2,3 30,2 -20,2 16,2 188,7 4

FTSE 100 5.251 -6,2 0,1 21,9 -5,8 -19,7 4,2 5

DAX 6.217 5,1 6,0 30,0 -4,4 -21,0 36,5 6

CAC 3.687 -5,1 -3,7 15,9 -17,2 -38,1 -11,5 7

SWITZERLAND 6.447 -5,4 0,1 20,2 -7,8 -29,4 3,5 8

AUSTRIA 2.428 -5,3 -0,9 18,3 -39,8 -50,1 -19,3 9

RUSSIA 752 -6,5 -2,0 31,1 -49,4 -34,9 51,4 10

TURKEY 832.736 8,7 11,2 56,3 45,7 17,2 91,1 11

POLAND 1.617 -1,8 1,2 26,7 -10,1 -35,6 8,5 12

TOPIX 885 -4,9 1,2 -1,8 -33,5 -49,6 -22,8 13

HANG SENG 8.903 -5,1 1,8 17,2 -10,7 -7,2 30,9 14

KOREA 487 3,9 5,8 31,4 4,3 2,4 77,8 15

SINGAPORE 1.573 -1,0 2,4 24,8 -7,0 -23,7 31,2 16

CHINA A-SHARE 2.667 -17,4 -18,9 -10,3 -2,0 -34,2 213,4 17

TAIWAN 266 -3,9 -3,2 20,0 -11,2 -23,3 3,3 18

INDIA 711 0,9 7,3 26,7 22,4 22,0 148,8 19

1,2

5,4

7,5

-2,3

0,1

6,0

-3,7

0,1

-0,9

-2,0

11,2

1,2

1,2

1,8

5,8

2,4

-18,9

-3,2

7,3

S&P 500

NASDAQ 100

MEXICO

BRAZIL

FTSE 100

DAX

CAC

SWITZERLAND

AUSTRIA

RUSSIA

TURKEY

POLAND

TOPIX

HANG SENG

KOREA

SINGAPORE

CHINA A-SHARE

TAIWAN

INDIA

7

Growth and inflation forecasts

As of April 26, 2010

Source: DB Global Markets Research

2008 2009 2010e 2011e 2008 2009 2010e 2011e

Global 2.7 -1.1 4.3 4.0 5.3 1.2 3.2 2.9

US 0.4 -2.4 3.8 3.6 3.8 -0.3 2.0 1.9

Japan -0.7 -5.2 2.8 0.9 1.4 -1.4 -1.2 -0.6

Euroland 0.6 -4.0 1.1 1.2 3.3 0.3 1.3 1.3

Germany 1.4 -5.0 2.0 1.3 2.8 0.2 0.9 1.0

0.0

Asia (ex Japan) 6.9 5.6 8.1 7.5 6.4 0.7 4.6 4.0

EMEA 4.3 -5.5 3.9 4.3 12.6 7.8 7.6 6.6

Latin America 4.3 -2.7 4.3 3.7 9.6 6.4 9.7 8.8

GDP growth (%) CPI (%)

8

Economic environment – macro themes

– Europe:

• Fiscal Crisis – north vs. south – core vs. periphery

• Austerity measures gaining pace – slowed growth

• EUR weakness – vs. US Dollar and Japanese Yen

• Industrial Production suggests recovery (exports)

– USA

• Recession ended in July 2009

• Steady recovery underway

– Emerging Markets

• GDP growth powering on

• Driving global demand

• China’s oil imports rose 29% YoY in 2010 YTD

9

Investment Strategy

– End of Q1 data confirm a sustainable global expansion

– Rising profits and asset prices are prompting firms to turn towards growth strategies (including new hires)

– The sovereign debt crisis particularly in the Eurozone will stay with us for many years to come

– The differentiating factor between the Eurozone debt problem and the US/UK debt problem is the ability/willingness to print money

– Central banks delaying the necessary hikes due to negative sovereign debt dynamics (Q4 2010?) prolongation of the liquidity rally, New asset bubbles building.

– Due to expected earnings growth of 15% - 20% (2011) the valuation of Equities is still very cheap (S&P 500, DAX 30 and Hang Seng indices all have PE’s around 12)

10

Investment Themes at DWS – in broad terms

Last Year's Investment Themes:

– Cyclicals

– Small and Mid-Cap stocks

– Sectors: Cyclicals, Energy, Industrials, Materials, Oil Service

– Regions: Emerging Markets.

Current Investment Themes:

– Defensives / High dividend payers

– Large Cap stocks

– Sectors: Industrials, Pharma, Staples, Telecoms and Utilities

– Regions: Emerging Markets, Core Developed

11

The Central Europe and Russia Fund

Robert Kalin. CFA. Managing Director Portfolio manager for Emerging Markets Equity: Frankfurt Joined the company in June 2001 after 12 years of industry experience. Prior experience included advisor to Zurich Investment 1998 -2001; fund manager at Corus Funds 1996-1997; analyst at Value Line 1993-1995; Trading representative at Calvert Securities Corporation 1989-1993.BSc in Economics and Computer Science from State University of New York at Plattsburgh

12

Average Annual Total Returns as of 5/31/10 Market Value Net Asset Value Benchmark*

1-Year 25.62 34.22 20.53

3-year -9.16 -8.85 -10.06

5-year 9.46 11.44 7.57

10-year 12.50 11.75 8.46 Life of fund 7.96 8.89

n/a

Cumulative Returns as of 5/31/10 Market Value Net Asset Value Benchmark*

YTD -5.33 -5.86 -6.97

1- Month -14.09 -12.63 -12.82

3 month -2.56 -0.83 -2.55

Inception date 3/6/90 3/6/90 n/aTotal return based on net asset value reflects changes in the fund’s net asset value during each period. Total return based on market value reflects changes in market value. Each figure assumes that dividends and capital gains. if any. were reinvested. These figures will differ depending on the level of any discount from or premium to NAV at which the fund’s shares traded during the period. Returns during part or all of the periods shown reflect a fee and/or expense waiver. Without this waiver. returns would have been lower and any rankings/ratings might have been less favorable. If a voluntary fee waiver is applicable. it may be terminated or adjusted at any time without notice. *The benchmark is MSCI Emerging Markets Europe Index. See slide #3 for index definitions. Index returns assume reinvestment of distributions and do not reflect fees or expenses. It is not possible to invest directly in an index.

Performance information

All performance shown is historical. assumes reinvestment of all dividend and capital gain distributions. and does not guarantee future results. Investment return and principal value fluctuate with changing market conditions. so that. when sold. shares may be worth more or less than the original cost. Current performance may be lower or higher than the performance data quoted. Please visit www.ceefund.com or call (800)GERMANY and speak to a representative to obtain the fund’s most recent performance.

Performance (in % USD)

The Central Europe and Russia Fund (CEE)

13

Top 10 Holdings

Stock Industry Weight

Lukoil Oil Energy 9.2%

Gazprom ADR Energy 9.0%

SberBank Rossiyskoy Financials 8.9%

JSC MMC Norilsk Nickel Materials 6.1%

Novatek Energy 6.0%

Neft. Komp. Rosneft Energy 4.0%

Gazprom Energy 3.3%

Turkiye Garanti Bankasi Financials 2.6%

Bank Polski (PKO) Financials 2.6%

CEZ Utilities 2.3%

Updated: May 2010


14

Industry Sector Breakdown1

Updated: May 2010

Relative Weights

Portfolio Weight % Overweight / Underweight in %


1 MSCI Emerging Markets Europe Index Sector Scheme. See slide #3 for index definition.

Consumer Disc.; 2,0

Consumer Staples; 1,8

Energy; 38,5

Financials; 23,3

Health Care; 0,0

Industrials; 4,2

Information Tech.; 0,0

Materials; 13,4

Telecom Services; 12,4

Utilities; 4,4 -6,0 -4,0 -2,0 0,0 2,0 4,0 6,0

Telecom Services

Materials

Industrials

Consumer Disc.

Information Tech.

Health Care

Energy

Utilities

Consumer Staples

Financials

15

Country Breakdown

Updated: May 2010

Relative Weights

Portfolio Weight % Overweight / Under in %


-6,0 -4,0 -2,0 0,0 2,0 4,0 6,0

RU - Russia

Other

TR - Turkey

CZ - Czech

HU - Hungary

PL - Poland

CZ; 2,8HU; 2,7

PL; 8,2

RU; 66,5

TR; 16,3

Other; 3,6

16

Investment Themes


Last Year's Investment Themes:

– Banks in Turkey / Exporters in Russia

– Commodity price hikes – Metals

– Government sponsored growth initiatives

Current Investment Themes:

– Consumption in Russia – domestics driving recovery

– Coking Coal – demand continuing to rise;

– Energy – Oil supply reduction, inventory draw-downs, higher prices;

– Infrastructure Spending in Turkey – driving GDP growth

– IPOs

17

Russian consumption – key factor of short-term recovery and long-term growth

Investment slump was one of the key reasons for the 2009 recession, but private consumption will drive the recovery

Retail sales resumed growth in 2010 supported by resilient income expansion as investment continued to contract

Source: Bloomberg. Unicredit. April 2010

5,6%

-7,9%

3,4%5,0%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

-23%

-18%

-13%

-8%

-3%

3%

8%

13%

2008F 2009 2010F 2011F

% re

al c

hg

.

Real GDP (r.s.)Export (l.s.)Private consumption (l.s.)Investment (l.s.)

% re

al c

hg

.

-26,0%

-21,0%

-16,0%

-11,0%

-6,0%

-1,0%

4,0%

9,0%

14,0%

19,0%

Jan 08Mar 08May 08 Jul 08 Sep 08Nov 08Jan 09Mar 09May 09 Jul 09 Sep 09Nov 09Jan 10

Real wages (l.s.) Retail trade (l.s.) Investment

% c

hg

. y-o

-y


Wages / Retail / Investment GDP / Exports / Consumption

18

Coking coal – demand continues to riseQuarterly pricing allows for frequent price increases

Russian coking coal output is still below pre-crisis levels

Global crude steel production is almost at pre-crisis levels, driven by China

Steel prices still underperform coking coal and iron ore prices…

Source: Unicredit, April 2010

Shift to quarterly pricing system allowed for quicker and more frequent coking coal price increases

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10

Co

kin

g c

oa

l o

utp

ut

in R

us

sia

, '0

00

ton

s

Raspadskaya Mechel Evraz Sibuglemet Severstal Belon Other

$0

$50

$100

$150

$200

$250

$300

Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10

US

D/t

GZh, FCA USD/t Zh, FCA USD/t KO, FCA USD/t

0

20

40

60

80

100

120

140

Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10

Cru

de

ste

el

ou

tpu

t, m

n t

on

s

China Japan EU US Russia India Other

-100%

-50%

0%

50%

100%

150%

200%

Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10

Re

lati

ve

pe

rfo

rma

nc

e,

%

CIS billet Iron ore concentrate Coking coal (GZh)


19

Energy – Novatek vs. Gazprom: stay with growth

0

10

20

30

40

50

60

70

2002 2004 2006 2008 2010E 2012E 2014E 2016E

bcm

400420440460480500520540560580

bcm

Novatek production, bcm (l.s.) Gazprom production, bcm (r.s.)

0

50

100

150

200

250

300

350

400

450

500

1Q 2Q 3Q 4Q 1Q09 2Q09 3Q09 4Q09E 1Q10E

US

D p

er 1

000

cm

Zeebrugge price per 1000 cm (converted)

Gazprom sales price, per 1000 cm

Performance is historical and does not guarantee future results.Source: Unicredit. April 2010


Production – Novatek vs. Gazprom Prices –

20

Infrastructure spending – Turkish GDP to outperform the region

Source: Unicredit, April 2010

100

125

150

175

200

225

250

Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10

ENKA INSAAT (rebased)

TEKFEN HOLDING (rebased)

ISE100 INDEX (rebased)

-15

-10

-5

0

5

10

15

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Real GDP growth (yoy, %)

Enka Indaat and Tekfen may potentially benefit from higher infrastructure spending

Turkish GDP forecasts


21

IPO's in 2010 – potential headwind mounting

* IPOs/SPOs in Poland. Russia excluding restricted stocks Source: Unicredit. Bloomberg. IFR. Mergermarket;We limited shown IPO pipelines to the transactions with estimated vale

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Dec-96 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09

0

50

100

150

200

250

300

350

400

450

500

EMEA IPO Deal Volume (USDmn) MSCI EMEA Index

2010 level!?

Comparison of EMEA IPO deal volume vs. the MSCI EMEA index

Poland* Sector EUR mnTauron Utilities 2,000PGE Utilities 2,000Polkomtel Telecoms 1,750PZU Insurance 1,250BRE Banks 500Warsaw Stock Financial 350Bogdanka Metals 350TPSA Telecoms 250AVG IT 250Black Red W. Retail 250TU Europe Insurance 100Kulczyk Oil Oil & Gas N/A

Turkey Sector EUR mnZiraat Bank Banking 1,800Halkbank Banking 1,300Turk Telekom Telecom 1,300Vakifbank Banking 1,000IGDAS Gas 1,000Emlak REIT Real estate 700Kuveyt Turk Financial 200Pegasus Aviation 50

Russia* Sector EUR mnSUEK Coal 1,100Prof Media Media 650Sovcomflot Shipping 600LenSpetsSMU Construction 200Victoria Retail 200Kuzbass Fuel Mining 200Russian Sea GroupFood 175Ilyushin Finans Aerospace 175

EUR 20bn= $27bn


Fund Performance

The Germany Funds

June 28. 2010

Annual Shareholder Meeting

Fund Performance

Fund's share price discount to net asset value and trend line

Discount trend EEA

E

E

A -30

-25

-20

-15

-10

-5

0

5

10

Jan-

04

Apr-0

4

Jul-0

4

Oct-0

4

Jan-

05

Apr-0

5

Jul-0

5

Oct-0

5

Jan-

06

Apr-0

6

Jul-0

6

Oct-0

6

Jan-

07

Apr-0

7

Jul-0

7

Oct-0

7

Jan-

08

Apr-0

8

Jul-0

8

Oct-0

8

Jan-

09

Apr-0

9

Jul-0

9

Oct-0

9

Jan-

10

Apr-1

0

Discount Trend Linear (Discount Trend)

All performance is historical, assumes reinvestment of all dividend and capital gain distributions, and does not guarantee future results. Investment return and principal value fluctuate with changing market conditions so that, when sold, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Please visit www.dws-investments.com for the fund’s most recentperformance.

Fund Performance


Discount trend GF

-30

-25

-20

-15

-10

-5

0

5

10

Jan-

04

Apr-0

4

Jul-0

4

Oct-0

4

Jan-

05

Apr-0

5

Jul-0

5

Oct-0

5

Jan-

06

Apr-0

6

Jul-0

6

Oct-0

6

Jan-

07

Apr-0

7

Jul-0

7

Oct-0

7

Jan-

08

Apr-0

8

Jul-0

8

Oct-0

8

Jan-

09

Apr-0

9

Jul-0

9

Oct-0

9

Jan-

10

Apr-1

0



Fund Performance


Discount trend CEE

-30

-25

-20

-15

-10

-5

0

5

10

Jan-

04

Apr-0

4

Jul-0

4

Oct-0

4

Jan-

05

Apr-0

5

Jul-0

5

Oct-0

5

Jan-

06

Apr-0

6

Jul-0

6

Oct-0

6

Jan-

07

Apr-0

7

Jul-0

7

Oct-0

7

Jan-

08

Apr-0

8

Jul-0

8

Oct-0

8

Jan-

09

Apr-0

9

Jul-0

9

Oct-0

9

Jan-

10

Apr-1

0



26

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. The Central Europe and Russia Fund, Inc. (CEE) is subject to investment risks. The fund is non-diversified and 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. (EEA) and the New Germany Fund, Inc. (GF) are subject to investment risks. 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.

IMPORTANT – PLEASE NOTE

27

This presentation 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.

The sources. opinions and forecasts expressed are as of June 28, 2010. There is no guarantee that the views opinions and forecasts expressed herein will come to pass. This information is subject to change at any time based upon market and other conditions and should be construed as a recommendation for any specific security. Past performance does not guarantee future results.

For Further Information please call Investor Services at 800-GERMANYOrvisit us on the web at www.germanyfund.com

This presentation is provided for informational purposes only and is not intended for trading purposes. R-18018-1 (6/10)

IMPORTANT – PLEASE NOTE (continued)

NOT FDIC/NCUA INSURED MAY LOSE VALUE NO BANK GUARANTEE NOT A DEPOSITNOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

the germany funds

Documents