DWS Global Commodities Stock Fund, Inc., a closed-end fund (NYSE: GCS), announced today that ISS Governance Services, a division of RiskMetrics Group ("RMG") and a leading independent proxy advisory firm, has recommended that shareholders vote for the Fund's slate of director nominees and not for the nominees proposed by dissident shareholder Western Investment, LLC.
RMG is recommending that shareholders use the WHITE proxy card to vote in favor of current board members: Paul K. Freeman, William McClayton, William N. Searcy, Jr., Robert Wadsworth and Rebecca W. Rimel. The Fund will hold its annual shareholders meeting at 10:30 a.m. Eastern Time on Monday, October 13, 2008, at the New York Marriott East Side, 525 Lexington Avenue, New York, New York.
In reaching its decision to support the Fund's nominees, RMG noted:
". . . since inception, the Fund has outperformed its peer group on both a NAV total return basis and on a market total return basis through August 31, 2008. The Fund's NAV has outperformed its benchmark by 4.62% since inception on a cumulative return basis. Furthermore, between July 31, 2007 and July 31, 2008, the Fund outperformed its benchmark by 3.32%."
In commenting on Western Investment's proposal, RMG observed:
"Given the costs and consequences of converting to an ETF, ETN or open-end Fund, the board should only recommend this action in the face of compelling circumstances, such as if there were serious concerns about the continuing viability of the Fund as a suitable longer-term investment for shareholders. RMG does not believe that these circumstances are present in the case of the Fund."
"Despite the Fund's current market price discount to NAV, RMG believes that the Fund's performance, coupled with the board's actions to narrow the discount and the complications of converting the Fund to an ETF or ETN, justifies retaining the Fund's closed-end structure as in the best interests of shareholders. RMG believes that the presence of a discount should not, by itself, necessitate the drastic step of converting the Fund into an ETF or ETN. As such, RMG recommends that shareholders support the Fund's nominees."
After hearing from each side, RMG concluded that the Fund's performance coupled with the Board's actions to narrow the discount and the complications of converting the Fund to an ETF or ETN justifies retaining the Fund's closed-end structure as in the best interests of shareholders and that the presence of any discount did not necessitate the "drastic step" of converting to an ETF or an ETN. For these reasons, RMG recommends that shareholders use the Fund's WHITE proxy card to vote FOR the Board's nominees.
RiskMetrics Group is widely recognized as a leading independent proxy advisory firm. Its recommendations are relied upon by hundreds of major institutional investment firms, mutual funds and other fiduciaries throughout the country.
Shareholders of record at the close of business on August 26, 2008 may vote by proxy, telephone or internet by following the instructions on their proxy card. Shareholders of record who have questions should contact the Fund's proxy solicitor, Georgeson Inc., at (800) 905-7281.
For more information on GCS, please contact a representative at (800) 349-4281 or visit us on the web at www.dws-investments.com for updated information on the Fund.
DWS Global Commodities Stock Fund, Inc. (NYSE: GCS) is a non-diversified, closed-end investment company currently invested in equity and commodities-linked securities of companies in commodities-related industries or issuers whose value is tied to the price of certain commodities or commodities-related indexes or parts of indices. The investment objective of the Fund is capital appreciation with total return as a secondary objective. The fund's benchmark is a blended index comprised of 20% Goldman Sachs Commodities Index (GSCI), 40% MSCI World Energy Index and 40% MSCI World Materials Index.
IMPORTANT INFORMATION
Shares of closed-end funds, unlike open-end funds, typically 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.
Certain statements contained in this release are 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," 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. The Fund and Fund management do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
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. Fund shares are not FDIC-insured and are not deposits or other obligations of, or guaranteed by, any bank. Fund shares involve investment risk, including possible loss of principal.
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 Asset Management, which is the marketing name in the US for the asset management activities of Deutsche Bank AG, Deutsche Bank Trust Company Americas, Deutsche Investment Management Americas Inc. and DWS Trust Company. Copyright © 2008 DWS Investments Distributors, Inc. (R-7442-1 10/08)