N-CSRS 1 sr63024eea.htm THE EUROPEAN EQUITY FUND, INC.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number: 811-04632

 

The European Equity Fund, Inc.

(Exact Name of Registrant as Specified in Charter)

 

875 Third Avenue

New York, NY 10022-6225

(Address of Principal Executive Offices) (Zip Code)

 

Registrant’s Telephone Number, including Area Code: (212) 454-4500

 

Diane Kenneally

100 Summer Street

Boston, MA 02110

(Name and Address of Agent for Service)

 

Date of fiscal year end: 12/31
   
Date of reporting period: 6/30/24

 

Item 1. Reports to Stockholders.
   
  (a)

June
30,
2024
Semiannual
Report
to
Shareholders
The
European
Equity
Fund,
Inc.
Ticker
Symbol:
EEA
Contents
2
The
European
Equity
Fund,
Inc.
The
brand
DWS
represents
DWS
Group
GmbH
&
Co.
KGaA
and
any
of
its
subsidiaries
such
as
DWS
Distributors,
Inc.
which
offers
investment
products
or
DWS
Investment
Management
Americas,
Inc.
and
RREEF
America
L.L.C.
which
offer
advisory
services.
NOT
FDIC/NCUA
INSURED
NO
BANK
GUARANTEE
MAY
LOSE
VALUE
NOT
A
DEPOSIT
NOT
INSURED
BY
ANY
FEDERAL
GOVERNMENT
AGENCY
4
Letter
to
the
Shareholders
9
Performance
Summary
11
Schedule
of
Investments
17
Statement
of
Assets
and
Liabilities
18
Statement
of
Operations
19
Statements
of
Changes
in
Net
Assets
20
Financial
Highlights
22
Notes
to
Financial
Statements
29
Report
of
Annual
Meeting
of
Stockholders
30
Additional
Information
The
European
Equity
Fund,
Inc.
3
The
Fund
seeks
long-term
capital
appreciation
through
investment
primarily
in
equity
and
equity-linked
securities
of
issuers
domiciled
in
Europe.
Investments
in
funds
involve
risks,
including
the
loss
of
principal.
The
shares
of
most
closed-end
funds,
including
the
Fund,
are
not
continuously
offered.
Once
issued,
shares
of
closed-end
funds
are
bought
and
sold
in
the
open
market.
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.
This
Fund
is
diversified
and
primarily
focuses
its
investments
in
equity
securities
of
issuers
domiciled
in
Europe,
thereby
increasing
its
vulnerability
to
developments
in
that
region.
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
or
in
a
particular
geographical
region
will
generally
be
more
volatile
than
a
fund
that
invests
more
broadly.
The
United
States,
the
European
Union
(EU),
the
United
Kingdom,
and
other
countries
have
imposed
sanctions
in
response
to
the
Russian
military
and
other
actions
in
recent
years.
Russia,
in
turn,
has
imposed
sanctions
targeting
Western
individuals,
businesses
and
products.
The
various
sanctions
have
adversely
affected,
and
may
continue
to
adversely
affect,
not
only
the
Russian
economy
but
also
the
economies
of
many
countries
in
Europe,
and
the
imposition
of
further
sanctions
may
materially
adversely
affect
the
value
of
securities
in
the
Fund’s
portfolio.
War,
terrorism,
sanctions,
economic
uncertainty,
trade
disputes,
public
health
crises,
natural
disasters,
climate
change
and
related
geopolitical
events
have
led
and,
in
the
future,
may
lead
to
significant
disruptions
in
U.S.
and
world
economies
and
markets,
which
may
lead
to
increased
market
volatility
and
may
have
significant
adverse
effects
on
the
Fund
and
its
investments.
Letter
to
the
Shareholders
(Unaudited)
4
The
European
Equity
Fund,
Inc.
Dear
Shareholder,
For
the
six-month
period
ended
June
30,
2024,
the
total
return
of
the
European
Equity
Fund,
Inc.
(the
“Fund”)
in
U.S.
dollars
(USD)
was
3.89%
based
on
net
asset
value
and
4.61%
based
on
market
price.
During
the
same
period,
the
return
of
the
Fund’s
benchmark,
the
MSCI
Europe
Index,
was
5.81%.
1
The
Fund’s
discount
to
net
asset
value
averaged
17.19%
for
the
period
from
January
1,
2024
to
June
30,
2024,
compared
with
13.66%
for
the
same
period
a
year
earlier.
While
the
journey
was
somewhat
uneven,
European
equities
as
gauged
by
the
benchmark
MSCI
Europe
Index
closed
both
the
first
and
second
quarters
of
2024
at
new
all-time
highs.
After
essentially
treading
water
during
January,
market
returns
were
positive
for
both
February
and
March.
The
second
quarter
saw
increased
volatility,
as
a
modest
decline
in
April
was
followed
by
a
strong
May
before
some
gains
were
given
back
in
June.
The
most
important
story
in
the
first
quarter
was
that
global
economic
data
kept
surprising
on
the
upside,
which
raised
hopes
that
a
“soft
landing”
was
still
on
the
horizon.
In
this
vein,
eurozone
growth
held
steady
in
the
quarter
in
contrast
to
initial
expectations
for
a
small
decline.
In
addition,
purchasing
manager
indices
(PMIs)
for
the
region
continued
to
rise,
with
the
flash
eurozone
composite
PMI
for
March
reaching
a
nine-
month
high
of
49.9.
During
the
second
quarter,
financial
markets
focused
on
several
risks
to
the
benign,
soft-landing
outlook.
While
equities
again
advanced
over
the
three
months,
performance
leadership
remained
narrow
and
mostly
driven
by
companies
with
the
largest
market
capitalizations.
Moreover,
sovereign
bonds
struggled
as
investors
priced
in
reduced
expectations
for
central
bank
rate
cuts
over
the
second
half
of
2024,
even
as
the
European
Central
Bank
delivered
its
first
rate
cut
since
the
pandemic.
Geopolitical
risks
were
also
in
focus,
including
the
potential
for
widening
conflict
in
the
Middle
East.
In
June,
French
assets
sold
off
after
President
Macron
announced
a
snap
legislative
election.
As
the
quarter
drew
to
a
close,
there
were
growing
signs
of
weakness
in
global
economic
data.
The
flash
eurozone
composite
PMI,
which
had
reached
a
high
of
52.2
for
May,
declined
to
50.9
for
June.
The
European
Equity
Fund,
Inc.
5
From
a
sector
perspective,
information
technology
was
the
top
performer
within
the
benchmark,
in
large
part
due
to
optimism
around
artificial
intelligence,
particularly
after
chipmaker
Nvidia
released
its
first
quarter
earnings
report
in
May.
Healthcare
posted
the
second
most
significant
advance,
driven
by
large-capitalization
pharmaceutical
stocks
such
as
AstraZeneca
PLC,
Novo
Nordisk
A/S
and
Novartis
AG
which
rose
after
strong
first
quarterly
earnings
reports
and
on
excitement
around
product
innovations.
Performance
for
the
financials
sector
was
supported
by
higher
inflation
expectations
and
the
prospect
of
interest
rates
staying
higher
for
a
prolonged
period.
Finally,
industrials
also
outperformed
the
broader
benchmark,
mostly
on
the
strength
of
defense
and
aerospace
stocks.
Sectors
that
lagged
within
the
benchmark
included
consumer
discretionary
as
automakers
confronted
softer
demand
and
uncertainty
with
respect
to
China,
while
growth
slowed
in
the
luxury
goods
segment.
In
addition,
sectors
that
benefit
from
lower
interest
rates
suffered
declines
as
central
bank
rate
cut
expectations
were
pushed
back,
most
notably
utilities
and
to
a
lesser
degree
consumer
staples
and
real
estate.
With
respect
to
the
Fund’s
performance,
positioning
in
industrials
weighed
most
heavily
on
return
relative
to
the
benchmark.
Individual
stocks
that
detracted
the
most
included
Germany-domiciled
logistics
operator
Deutsche
Post
AG
and
industrial
and
specialty
chemicals
distributor
Brenntag
SE.
Positions
in
the
Danish
transport
and
logistics
services
company
DSV
A/S
and
German
airline
Deutsche
Lufthansa
AG
also
registered
declines.
Sector
Diversification
(As
a
%
of
Equity
Securities)
6/30/24
12/31/23
Financials
20%
21%
Industrials
16%
16%
Health
Care
16%
14%
Consumer
Discretionary
10%
11%
Information
Technology
10%
9%
Communication
Services
8%
8%
Materials
7%
8%
Consumer
Staples
5%
6%
Energy
5%
5%
Utilities
3%
2%
100%
100%
6
The
European
Equity
Fund,
Inc.
Positioning
in
consumer
discretionary
also
constrained
return,
most
notably
holdings
of
German
athletic
apparel
manufacturer
Puma
SE.
This
drag
on
relative
performance
was
partially
offset
by
positions
in
German
athletic
apparel
company
adidas
AG
and
in
U.K.
caterer
Compass
Group
PLC.
On
the
positive
side,
positioning
in
healthcare
proved
additive
to
relative
performance,
with
contributions
led
by
the
Fund’s
long-standing
position
in
Danish
pharmaceutical
company
Novo
Nordisk
A/S,
which
has
seen
its
results
boosted
by
the
expanding
uptake
of
GLP-1
drugs
for
weight
loss.
Market
Outlook
From
a
macroeconomic
perspective,
we
are
maintaining
our
eurozone
2024
inflation
forecast
of
2.5%,
down
from
2.9%
at
the
end
of
2023,
as
well
as
a
decline
to
2.3%
in
2025.
We
expect
U.K.
inflation
to
come
down
to
2.5%
in
2024
and
to
2.3%
in
2025
as
well.
We
anticipate
that
the
eurozone
economy
will
continue
to
see
a
gradual
acceleration
from
Ten
Largest
Equity
Holdings
at
June
30,
2024
(34.4%
of
Net
Assets)
Country
Percent
1
.
Novo
Nordisk
A/S
Denmark
7.0%
2
.
ASML
Holding
NV
Netherlands
5.0%
3
.
HSBC
Holdings
PLC
United
Kingdom
3.6%
4
.
Allianz
SE
(Registered)
Germany
2.9%
5
.
Deutsche
Telekom
AG
(Registered)
Germany
2.9%
6
.
CRH
PLC
United
States
2.8%
7
.
TotalEnergies
SE
France
2.8%
8
.
AXA
SA
France
2.6%
9
.
Swedbank
AB
Sweden
2.4%
10
.
Compass
Group
PLC
United
Kingdom
2.4%
Portfolio
holdings
and
characteristics
are
subject
to
change
and
not
indicative
of
future
portfolio
composition.
For
more
details
about
the
Fund’s
investments,
see
the
Schedule
of
Investments
commencing
on
page
11.
For
additional
information
about
the
Fund,
including
performance,
dividends,
presentations,
press
releases,
market
updates,
daily
NAV
and
shareholder
reports,
please
visit
dws.com.
The
European
Equity
Fund,
Inc.
7
low
levels,
rising
from
0.7%
growth
in
2024
to
1.1%
in
2025.
In
our
view,
the
European
Central
Bank
is
likely
to
keep
interest
rates
in
restrictive
territory
following
its
initial
rate
cut
in
June,
with
three
further
decreases
and
a
target
overnight
lending
rate
of
3%
at
the
end
of
June
2025.
While
the
Bank
of
England
held
rates
steady
at
its
June
meeting,
if
the
United
Kingdom's
wage
and
service
price
inflation
moderate
as
expected,
we
could
see
a
total
of
four
rate
cuts
by
March
of
2025.
With
respect
to
corporate
earnings,
a
strong
first
quarter
reporting
season
led
by
the
information
technology,
industrials,
and
healthcare
sectors
supports
an
outlook
for
growth
to
resume
in
2024
and
increase
in
future
years.
As
for
our
sector
strategy,
we
think
the
stabilization
of
purchasing
manager
surveys
at
positive
levels
means
we
should
see
increased
demand
for
capital
goods
as
inventory
levels
are
reduced.
Within
financials,
we
have
taken
profits
on
some
bank
positions
on
the
view
that
interest
rates
have
peaked
and
are
ultimately
headed
lower.
Finally,
we
have
reduced
exposure
to
materials
as
a
source
of
cash
after
the
sector’s
recent
strong
performance.
In
closing,
we
very
much
regret
to
report
the
recent
passing
of
Walter
C.
Dostmann,
who
served
as
a
Director
of
the
Fund
since
2015.
He
made
valuable
contributions
to
the
success
of
the
Fund
through
his
wise
counsel
as
a
Director
and
service
on
committees
of
the
Board,
including
as
Chairman
of
the
Audit
and
Advisory
Committees.
Sincerely,
Juan
Barriobero
de
la
Pisa
Portfolio
Manager
Hepsen
Uzcan
Interested
Director,
President
and
Chief
Executive
Officer
8
The
European
Equity
Fund,
Inc.
The
views
expressed
in
the
preceding
discussion
reflect
those
of
the
portfolio
management
team
generally
through
the
end
of
the
period
of
the
report
as
stated
on
the
cover
.
The
management
team’s
views
are
subject
to
change
at
any
time
based
on
market
and
other
conditions
and
should
not
be
construed
as
recommendations.
Past
performance
is
no
guarantee
of
future
results.
Current
and
future
portfolio
holdings
are
subject
to
risk.
1
The
MSCI
Europe
Index
tracks
the
performance
of
15
developed
markets
in
Europe.
MSCI
indices
are
calculated
using
closing
local
market
prices
and
translate
into
U.S.
dollars
using
the
London
close
foreign
exchange
rates.
Index
returns
do
not
reflect
any
fees
or
expenses
and
it
is
not
possible
to
invest
directly
in
the
MSCI
Europe
Index.
Performance
Summary
June
30,
2024
(Unaudited)
The
European
Equity
Fund,
Inc.
9
All
performance
shown
is
historical,
assumes
reinvestment
of
all
dividend
and
capital
gain
distributions,
and
does
not
guarantee
future
results.
Investment
return
and
net
asset
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
dws.com
for
the
most
recent
performance
of
the
Fund.
Fund
specific
data
and
performance
are
provided
for
informational
purposes
only
and
are
not
intended
for
trading
purposes.
Growth
of
an
Assumed
$10,000
Investment
Yearly
periods
ended
June
30
The
growth
of
$10,000
is
cumulative.
Average
Annual
Total
Returns
as
of
6/30/24
6-Month
‡
1-Year
5-Year
10-Year
Net
Asset
Value
(a)
3.89%
9.17%
7.87%
4.83%
Market
Price
(a)
4.61%
6.45%
7.09%
4.10%
MSCI
Europe
Index
(b)
5.81%
11.68%
7.13%
4.16%
10
The
European
Equity
Fund,
Inc.
a
Total
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
during
each
period.
Each
figure
includes
reinvestments
of
income
and
capital
gain
distributions,
if
any,
at
market
prices
pursuant
to
the
dividend
reinvestment
plan.
Total
returns
based
on
net
asset
value
and
market
price
will
differ
depending
upon
the
level
of
any
discount
from
or
premium
to
net
asset
value
at
which
the
Fund’s
shares
trade
during
the
period.
Expenses
of
the
Fund
include
investment
advisory
and
administration
fees
and
other
fund
expenses.
Total
returns
shown
take
into
account
these
fees
and
expenses.
The
annualized
expense
ratio
of
the
Fund
for
the
six
months
ended
June
30,
2024
was
1.49%.
b
The
MSCI
Europe
Index
tracks
the
performance
of
15
developed
markets
in
Europe.
MSCI
indices
are
calculated
using
closing
local
market
prices
and
translate
into
U.S.
dollars
using
the
London
close
foreign
exchange
rates.
Index
returns
do
not
reflect
any
fees
or
expenses
and
it
is
not
possible
to
invest
directly
in
the
MSCI
Europe
Index.
‡
Total
returns
shown
for
periods
less
than
one
year
are
not
annualized.
Net
Asset
Value
and
Market
Price
As
of
6/30/24
As
of
12/31/23
Net
Asset
Value
$    
10.75
$    
10.39
Market
Price
$
8.98
$
8.62
Prices
and
Net
Asset
Value
fluctuate
and
are
not
guaranteed.
Distribution
Information
Per
Share
Six
Months
as
of
6/30/24:
Income
Distribution
$    
0.04
Distributions
are
historical,
not
guaranteed
and
will
fluctuate.
Distributions
do
not
include
return
of
capital
or
other
non-income
sources.
Schedule
of
Investments
as
of
June
30,
2024
(Unaudited)
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
The
European
Equity
Fund,
Inc.
11
Shares
Value
($)
Common
Stocks
95.8%
Germany
22.7%
Air
Freight
&
Logistics
1.5%
Deutsche
Post
AG
27,152
1,099,438
Diversified
Telecommunication
Services
2.9%
Deutsche
Telekom
AG
(Registered)
83,257
2,094,648
Health
Care
Providers
&
Services
1.3%
Fresenius
SE
&
Co
KGaA*
30,534
912,155
Independent
Power
&
Renewable
Electricity
Producers
1.2%
RWE
AG
26,621
911,355
Insurance
2.9%
Allianz
SE
(Registered)
7,564
2,103,202
Interactive
Media
&
Services
1.3%
Scout24
SE
144A
12,092
922,508
Machinery
2.0%
Daimler
Truck
Holding
AG
17,444
694,754
Knorr-Bremse
AG
9,357
714,856
1,409,610
Multi-Utilities
1.2%
E.ON
SE
65,340
857,995
Passenger
Airlines
0.7%
Deutsche
Lufthansa
AG
(Registered)
81,593
499,207
Pharmaceuticals
1.5%
Merck
KGaA
6,583
1,091,558
Semiconductors
&
Semiconductor
Equipment
1.2%
Infineon
Technologies
AG
23,718
871,822
Software
1.7%
SAP
SE
6,182
1,255,383
Textiles,
Apparel
&
Luxury
Goods
2.0%
adidas
AG
3,033
724,719
Puma
SE
16,346
750,857
1,475,576
Trading
Companies
&
Distributors
1.3%
Brenntag
SE
13,880
936,367
Total
Germany
(Cost
$15,410,675)
16,440,824
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
12
The
European
Equity
Fund,
Inc.
Shares
Value
($)
France
17.7%
Beverages
0.7%
Pernod
Ricard
SA
3,677
499,186
Building
Products
2.0%
Cie
de
Saint-Gobain
SA
19,060
1,483,103
Construction
&
Engineering
1.6%
Vinci
SA
11,305
1,191,707
Insurance
3.6%
AXA
SA
56,414
1,847,883
SCOR
SE
28,500
722,523
2,570,406
IT
Services
0.9%
Capgemini
SE
3,101
617,030
Media
1.2%
Vivendi
SE
85,716
896,037
Oil,
Gas
&
Consumable
Fuels
2.8%
TotalEnergies
SE
30,148
2,013,482
Personal
Care
Products
1.4%
L'Oreal
SA
2,239
983,746
Pharmaceuticals
1.6%
Sanofi
SA
12,217
1,177,361
Textiles,
Apparel
&
Luxury
Goods
1.9%
LVMH
Moet
Hennessy
Louis
Vuitton
SE
1,769
1,352,617
Total
France
(Cost
$11,695,915)
12,784,675
United
Kingdom
14.6%
Banks
3.6%
HSBC
Holdings
PLC
302,012
2,610,535
Commercial
Services
&
Supplies
0.9%
Rentokil
Initial
PLC
115,540
673,495
Hotels,
Restaurants
&
Leisure
2.4%
Compass
Group
PLC
63,078
1,722,045
Media
1.3%
Informa
PLC
83,569
903,920
Oil,
Gas
&
Consumable
Fuels
1.8%
Shell
PLC
36,870
1,320,644
Pharmaceuticals
1.8%
AstraZeneca
PLC
8,552
1,335,544
Professional
Services
2.0%
RELX
PLC
31,571
1,452,055
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
The
European
Equity
Fund,
Inc.
13
Shares
Value
($)
Trading
Companies
&
Distributors
0.8%
Ashtead
Group
PLC
8,718
582,007
Total
United
Kingdom
(Cost
$7,472,555)
10,600,245
Netherlands
10.3%
Automobiles
1.0%
Stellantis
NV
36,346
719,309
Banks
3.0%
ABN
AMRO
Bank
NV
(CVA)
144A
67,370
1,108,070
ING
Groep
NV
65,131
1,113,954
2,222,024
Entertainment
1.3%
Universal
Music
Group
NV
30,562
909,717
Semiconductors
&
Semiconductor
Equipment
5.0%
ASML
Holding
NV
3,463
3,577,765
Total
Netherlands
(Cost
$3,872,122)
7,428,815
Switzerland
8.4%
Chemicals
2.7%
DSM-Firmenich
AG
9,121
1,032,045
Sika
AG
(Registered)
3,153
902,160
1,934,205
Food
Products
2.0%
Nestle
SA
(Registered)
13,981
1,426,563
Pharmaceuticals
1.9%
Roche
Holding
AG
5,062
1,405,016
Semiconductors
&
Semiconductor
Equipment
1.0%
STMicroelectronics
NV
18,529
731,911
Textiles,
Apparel
&
Luxury
Goods
0.8%
Cie
Financiere
Richemont
SA
''A''
(Registered)
3,520
549,205
Total
Switzerland
(Cost
$6,801,141)
6,046,900
Denmark
8.2%
Air
Freight
&
Logistics
1.2%
DSV
A/S
5,609
860,108
Pharmaceuticals
7.0%
Novo
Nordisk
A/S
''B''
34,990
5,056,759
Total
Denmark
(Cost
$1,766,731)
5,916,867
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
14
The
European
Equity
Fund,
Inc.
Shares
Value
($)
Sweden
4.2%
Banks
2.4%
Swedbank
AB
''A''
85,000
1,749,889
Machinery
1.8%
Atlas
Copco
AB
''A''
68,091
1,280,310
Total
Sweden
(Cost
$2,024,768)
3,030,199
United
States
2.8%
Construction
Materials
2.8%
CRH
PLC
(Cost
$1,354,353)
(a)
27,092
2,018,884
Spain
2.7%
Banks
2.2%
Banco
Santander
SA
345,506
1,603,193
Specialty
Retail
0.5%
Industria
de
Diseno
Textil
SA
7,236
359,446
Total
Spain
(Cost
$1,698,960)
1,962,639
Italy
2.6%
Banks
1.6%
Intesa
Sanpaolo
SpA
309,588
1,151,412
Beverages
1.0%
Davide
Campari-Milano
NV
76,418
722,526
Total
Italy
(Cost
$1,871,645)
1,873,938
Ireland
1.6%
Containers
&
Packaging
1.6%
Smurfit
Kappa
Group
PLC
(Cost
$1,428,553)
26,343
1,174,223
Total
Common
Stocks
(Cost
$55,397,418)
69,278,209
Preferred
Stocks
1.7%
Germany
1.7%
Automobiles
1.7%
Porsche
Automobil
Holding
SE
12,572
568,606
Volkswagen
AG
5,686
642,155
1,210,761
Total
Germany
(Cost
$2,520,052)
1,210,761
Total
Preferred
Stocks
(Cost
$2,520,052)
1,210,761
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
The
European
Equity
Fund,
Inc.
15
Shares
Value
($)
Cash
Equivalents
2.2%
DWS
Central
Cash
Management
Government
Fund,
5.36%
(Cost
$1,594,556)
(b)
1,594,556
1,594,556
%
of
Net
Assets
Value
($)
Total
Investment
Portfolio
(Cost
$59,512,026)
99.7
72,083,526
Other
Assets
and
Liabilities,
Net
0.3
242,
648
Net
Assets
100.0
72,326,
174
A
summary
of
the
Fund’s
transactions
with
affiliated
investments
during
the
period
ended
June
30,
2024
are
as
follows:
Net
Change
Value
($)
at
12/31/2023
Purchases
Cost
($)
Sales
Proceeds
($)
Net
Real-
ized
Gain/
(Loss)
($)
in
Unreal-
ized
Appreci-
ation/
(Depreci-
ation)
($)
Income
($)
Capital
Gain
Distri-
butions
($)
Number
of
Shares
at
6/30/2024
Value
($)
at
6/30/2024
Securities
Lending
Collateral
0.0%
DWS
Government
&
Agency
Securities
Portfolio
''DWS
Government
Cash
Institutional
Shares'',
5.24%
(b)
(c)
–
0(d)
–
–
–
10,582
–
–
–
Cash
Equivalents
2.2%
DWS
Central
Cash
Management
Government
Fund,
5.36%
(b)
1,250,300
5,782,859
5,438,603
–
–
44,088
–
1,594,556
1,594,556
1,250,300
5,782,859
5,438,603
–
–
54,670
–
1,594,556
1,594,556
*
Non-income
producing
security.
(a)
CRH
PLC
is
domiciled
in
United
States
and
is
listed
on
the
London
Stock
Exchange.
(b)
Affiliated
fund
managed
by
DWS
Investment
Management
Americas,
Inc.
The
rate
shown
is
the
annualized
seven-day
yield
at
period
end.
(c)
Represents
cash
collateral
held
in
connection
with
securities
lending.
Income
earned
by
the
Fund
is
net
of
borrower
rebates.
(d)
Represents
the
net
increase
(purchases
cost)
or
decrease
(sales
proceeds)
in
the
amount
invested
in
cash
collateral
for
the
period
ended
June
30,
2024.
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
16
The
European
Equity
Fund,
Inc.
For
purposes
of
its
industry
concentration
policy,
the
Fund
classifies
issuers
of
portfolio
securities
at
the
industry
sub-group
level.  Certain
of
the
categories
in
the
above
Schedule
of
Investments
consist
of
multiple
industry
sub-groups
or
industries.
(e)
See
Schedule
of
Investments
for
additional
detailed
categorizations
.
144A:
Securities
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
may
be
resold
in
transactions
exempt
from
registration,
normally
to
qualified
institutional
buyers.
CVA:
Credit
Valuation
Adjustment.
Fair
Value
Measurements
Various
inputs
are
used
in
determining
the
value
of
the
Fund’s
investments.
These
inputs
are
summarized
in
three
broad
levels.
Level
1
includes
quoted
prices
in
active
markets
for
identical
securities.
Level
2
includes
other
significant
observable
inputs
(including
quoted
prices
for
similar
securities,
interest
rates,
prepayment
speeds
and
credit
risk).
Level
3
includes
significant
unobservable
inputs
(including
the
Fund’s
own
assumptions
in
determining
the
fair
value
of
investments).
The
level
assigned
to
the
securities
valuations
may
not
be
an
indication
of
the
risk
associated
with
investing
in
those
securities.
The
following
is
a
summary
of
the
inputs
used
as
of
June
30,
2024
in
valuing
the
Fund’s
investments.
For
information
on
the
Fund’s
policy
regarding
the
valuation
of
investments,
please
refer
to
the
Security
Valuation
section
of
Note
A
in
the
accompanying
Notes
to
Financial
Statements.
Assets
Level
1
Level
2
Level
3
Total
Common
Stocks
and/or
Other
Equity
Investments
(e)
Germany
$
17,651,585
$
—
$
—
$
17,651,585
France
12,784,675
—
—
12,784,675
United
Kingdom
10,600,245
—
—
10,600,245
Netherlands
7,428,815
—
—
7,428,815
Switzerland
6,046,900
—
—
6,046,900
Denmark
5,916,867
—
—
5,916,867
Sweden
3,030,199
—
—
3,030,199
United
States
2,018,884
—
—
2,018,884
Spain
1,962,639
—
—
1,962,639
Italy
1,873,938
—
—
1,873,938
Ireland
1,174,223
—
—
1,174,223
Short-Term
Instruments
(e)
1,594,556
—
—
1,594,556
Total
$
72,083,526
$
—
$
—
$
72,083,526
Statement
of
Assets
and
Liabilities
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
The
European
Equity
Fund,
Inc.
17
as
of
June
30,
2024
(Unaudited)
Assets
Investments
in
non-affiliated
securities,
at
value
(cost
$57,917,470)
$
70,488,970
Investment
in
DWS
Central
Cash
Management
Government
Fund
(cost
$1,594,556)
1,594,556
Foreign
currency,
at
value
(cost
$209,847)
205,877
Receivable
for
investments
sold
242,972
Dividends
receivable
49,650
Foreign
taxes
recoverable
261,503
Interest
receivable
8,096
Other
assets
30,547
Total
assets
72,882,171
Liabilities
Payable
for
investments
purchased
360,256
Investment
advisory
fee
payable
39,443
Payable
for
Directors'
fees
and
expenses
31,943
Administration
fee
payable
12,137
Accrued
expenses
and
other
liabilities
112,218
Total
liabilities
555,997
Net
assets
$
72,326,174
Net
Assets
Consist
of
Distributable
earnings
(gain)
11,225,692
Paid-in
capital
61,100,482
Net
assets
$
72,326,174
Net
Asset
Value
Net
assets
value
per
share
($72,326,174
÷
6,727,389
shares
of
common
stock
issued
and
outstanding,
$.001
par
value,
80,000,000
shares
authorized)
$
10.75
Statement
of
Operations
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
18
The
European
Equity
Fund,
Inc.
for
the
six
months
ended
June
30,
2024
(Unaudited)
Net
Investment
Income
Income:
Dividends
(net
of
foreign
withholding
taxes
of
$257,645)
$
1,826,421
Income
distributions
—
DWS
Central
Cash
Management
Government
Fund
44,088
Securities
lending
income,
net
of
borrower
rebates
10,582
Total
investment
income
1,881,091
Expenses:
Investment
advisory
fee
232,714
Administration
fee
71,604
Custody
and
accounting
fee
23,722
Services
to
shareholders
7,320
Reports
to
shareholders
and
shareholder
meeting
expenses
24,073
Directors'
fees
and
expenses
51,142
Legal
fees
58,693
Audit
and
tax
fees
27,664
NYSE
listing
fee
11,820
Insurance
10,029
Miscellaneous
14,569
Net
expenses
533,350
Net
investment
income
1,347,741
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
from:
Investments
1,927,317
Foreign
currency
(1,857)
Net
realized
gain
(loss)
1,925,460
Change
in
net
unrealized
appreciation
(depreciation)
on:
Investments
(685,642)
Foreign
currency
(15,607)
Change
in
net
unrealized
appreciation
(depreciation)
(701,249)
Net
gain
(loss)
1,224,211
Net
increase
(decrease)
in
net
assets
resulting
from
operations
$
2,571,952
Statements
of
Changes
in
Net
Assets
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
The
European
Equity
Fund,
Inc.
19
Increase
(Decrease)
in
Net
Assets
Six
Months
Ended
June
30,
2024
(Unaudited)
Year
Ended
December
31,
2023
Operations:
Net
investment
income
(loss)
  $
1,347,741
  $
1,012,254
Net
realized
gain
(loss)
1,925,460
(2,131,341)
Change
in
net
unrealized
appreciation
(depreciation)
(701,249)
12,986,615
Net
increase
(decrease)
in
net
assets
resulting
from
operations
2,571,952
11,867,528
Distributions
to
shareholders
(253,842)
(1,174,079)
Fund
share
transactions:
Net
proceeds
from
reinvestment
of
distributions
270,954
272,836
Shares
repurchased
(1,039,072)
(1,007,771)
Net
increase
(decrease)
in
net
assets
from
Fund
share
transactions
(768,118)
(734,935)
Total
increase
(decrease)
in
net
assets
1,549,992
9,958,514
Net
assets
at
beginning
of
period
70,776,182
60,817,668
Net
assets
at
end
of
period
  $
72,326,174
  $
70,776,182
Other
Information
Shares
outstanding
at
beginning
of
period
6,813,832
6,902,996
Shares
issued
from
reinvestment
of
distributions
31,877
32,196
Shares
repurchased
(118,320)
(121,360)
Shares
outstanding
at
end
of
period
6,727,389
6,813,832
Financial
Highlights
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
20
The
European
Equity
Fund,
Inc.
Six
Months    
Ended
6/30/24
Years
Ended
December
31,  
(Unaudited)  
2023
2022
2021
2020
2019
Per
Share
Operating
Performance
Net
asset
value,
beginning
of
period
$
10.39
$
8.81
$
11.95
$
12.09
$
10.73
$
9.04
Income
(loss)
from
investment
operations:
Net
investment
income
(loss)
a
.20
.15
.16
.15
.10
.15
Net
realized
and
unrealized
gain
(loss)
on
investments
and
foreign
currency
.18
1.58
(2.40)
1.11
1.38
2.03
Total
from
investment
operations
.38
1.73
(2.24)
1.26
1.48
2.18
Less
distributions
from:
Net
investment
income
(.04)
(.17)
(.29)
(.11)
(.13)
(.13)
Net
realized
gains
–
–
(.58)
(1.39)
(.07)
(.39)
Total
distributions
(.04)
(.17)
(.87)
(1.50)
(.20)
(.52)
Dilution
in
net
asset
value
from
dividend
reinvestment
(.01)
(.01)
(.10)
–
(.01)
(.01)
Increase
resulting
from
share
repurchases
.03
.03
.07
.10
.09
.04
Net
asset
value,
end
of
period
$
10.75
$
10.39
$
8.81
$
11.95
$
12.09
$
10.73
Market
value,
end
of
period
$
8.98
$
8.62
$
7.50
$
10.37
$
10.40
$
9.38
Total
Investment
Return
for
the
Period
b
Based
upon
market
value
(%)
4.61
**
17.27
(19.12)
15.23
13.28
28.29
Based
upon
net
asset
value
(%)
3.89
**
20.33
c
(17.55)
c
14.22
15.12
25.48
Financial
Highlights
(continued)
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
The
European
Equity
Fund,
Inc.
21
Six
Months    
Ended
6/30/24
Years
Ended
December
31,  
(Unaudited)  
2023
2022
2021
2020
2019
Ratios
to
Average
Net
Assets
Total
expenses
before
expense
reductions
(%)
1.49
*
1.55
1.57
1.28
1.30
1.33
Total
expenses
after
expense
reductions
(%)
1.49
*
1.
45
1.
4
7
1.28
1.30
1.33
Net
investment
income
(%)
1.87
**
1.50
1.66
1.16
.93
1.51
Portfolio
turnover
(%)
11
**
13
25
57
25
60
Net
assets
at
end
of
period
($
thousands)
72,326
70,776
60,818
81,109
87,186
81,254
a
Based
on
average
shares
outstanding
during
the
period.
b
Total
investment
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
during
each
period.
Each
figure
includes
reinvestments
of
dividend
and
capital
gain
distributions,
if
any.
These
figures
will
differ
depending
upon
the
level
of
any
discount
from
or
premium
to
net
asset
value
at
which
the
Fund's
shares
trade
during
the
period.
c
Total
return
would
have
been
lower
had
certain
expenses
not
been
reduced.
*
Annualized.
**
Not
annualized.
22
The
European
Equity
Fund,
Inc.
Notes
to
Financial
Statements
(Unaudited)
A.
Accounting
Policies
The
European
Equity
Fund,
Inc.
(the
“Fund”)
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”)
and
was
incorporated
in
Delaware
on
April
8,
1986
as
a
diversified,
closed-end
management
investment
company.
Investment
operations
commenced
on
July
23,
1986.
The
Fund
reincorporated
in
Maryland
on
August
29,
1990
and,
on
October
16,
1996,
the
Fund
changed
from
a
diversified
to
a
non-
diversified
company.
The
Fund
became
a
diversified
fund
on
October
31,
2008.
The
preparation
of
financial
statements
in
accordance
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(“U.S.
GAAP”)
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
and
disclosures
in
the
financial
statements.
Actual
results
could
differ
from
those
estimates.
The
Fund
qualifies
as
an
investment
company
under
Topic
946
of
Accounting
Standards
Codification
of
U.S.
GAAP.
The
following
is
a
summary
of
significant
accounting
policies
followed
by
the
Fund
in
the
preparation
of
its
financial
statements.
Security
Valuation.
The
Fund
calculates
its
net
asset
value
(“NAV”)
per
share
for
publication
at
the
close
of
regular
trading
on
Deutsche
Börse
XETRA,
normally
at
11:30
a.m.,
New
York
time.
The
Fund’s
Board
has
designated
DWS
International
GmbH
(the
“Advisor”)
as
the
valuation
designee
for
the
Fund
pursuant
to
Rule
2a-5
under
the
1940
Act.
The
Advisor’s
Pricing
Committee
(the
“Pricing
Committee”)
typically
values
securities
using
readily
available
market
quotations
or
prices
supplied
by
independent
pricing
services
(which
are
considered
fair
values
under
Rule
2a-5).
The
Advisor
has
adopted
fair
valuation
procedures
that
provide
methodologies
for
fair
valuing
securities.
Various
inputs
are
used
in
determining
the
value
of
the
Fund’s
investments.
These
inputs
are
summarized
in
three
broad
levels.
Level
1
includes
quoted
prices
in
active
markets
for
identical
securities.
Level
2
includes
other
significant
observable
inputs
(including
quoted
prices
for
similar
securities,
interest
rates,
prepayment
speeds
and
credit
risk).
Level
3
includes
significant
unobservable
inputs
(including
the
Fund’s
own
assumptions
in
determining
the
fair
value
of
investments).
The
level
assigned
to
the
securities
valuations
may
not
be
an
indication
of
the
risk
or
liquidity
associated
with
investing
in
those
securities.
Equity
securities
are
valued
at
the
most
recent
sale
price
or
official
closing
price
reported
on
the
exchange
(U.S.
or
foreign)
or
over-the-counter
market
on
which
they
trade
prior
to
the
time
of
valuation.
Securities
for
which
no
sales
are
reported
are
valued
at
the
calculated
mean
between
The
European
Equity
Fund,
Inc.
23
the
most
recent
bid
and
asked
quotations
on
the
relevant
market
or,
if
a
mean
cannot
be
determined,
at
the
most
recent
bid
quotation.
Equity
securities
are
generally
categorized
as
Level
1.
Investments
in
open-end
investment
companies
are
valued
and
traded
at
their
NAV
each
business
day
and
are
categorized
as
Level
1.
Purchased
options
are
generally
valued
at
the
settlement
prices
established
each
day
on
the
exchange
on
which
they
are
traded
and
are
categorized
as
Level
1.
Securities
and
other
assets
for
which
market
quotations
are
not
readily
available
or
for
which
the
above
valuation
procedures
are
deemed
not
to
reflect
fair
value
are
valued
in
a
manner
that
is
intended
to
reflect
their
fair
value
as
determined
in
accordance
with
procedures
approved
by
the
Board
and
are
generally
categorized
as
Level
3.
In
accordance
with
the
Fund’s
valuation
procedures,
factors
considered
in
determining
value
may
include,
but
are
not
limited
to,
the
type
of
the
security;
the
size
of
the
holding;
the
initial
cost
of
the
security;
the
existence
of
any
contractual
restrictions
on
the
security’s
disposition;
the
price
and
extent
of
public
trading
in
similar
securities
of
the
issuer
or
of
comparable
companies;
quotations
or
evaluated
prices
from
broker-dealers
and/or
the
appropriate
stock
exchange
(for
exchange-traded
securities);
an
analysis
of
the
company’s
or
issuer’s
financial
statements;
an
evaluation
of
the
forces
that
influence
the
issuer
and
the
market(s)
in
which
the
security
is
purchased
and
sold;
and,
with
respect
to
debt
securities,
the
maturity,
coupon,
creditworthiness,
currency
denomination,
and
the
movement
of
the
market
in
which
the
security
is
normally
traded.
The
value
determined
under
these
procedures
may
differ
from
published
values
for
the
same
securities.
Disclosure
about
the
classification
of
the
fair
value
measurements
is
included
in
a
table
following
the
Fund’s
Schedule
of
Investments.
Securities
Transactions
and
Investment
Income.
Investment
transactions
are
accounted
for
on
a
trade
date
plus
one
basis
for
daily
NAV
calculation.
However,
for
financial
reporting
purposes,
investment
security
transactions
are
reported
on
trade
date.
Interest
income
is
recorded
on
the
accrual
basis.
Dividend
income
is
recorded
on
the
ex-dividend
date
net
of
foreign
withholding
taxes.
Certain
dividends
from
foreign
securities
may
be
recorded
subsequent
to
the
ex-dividend
date
as
soon
as
the
Fund
is
informed
of
such
dividends.
Realized
gains
and
losses
from
investment
transactions
are
recorded
on
an
identified
cost
basis.
Proceeds
from
litigation
payments,
if
any,
are
included
in
net
realized
gain
(loss)
for
investments.
Securities
Lending.
National
Financial
Services
LLC
(Fidelity
Agency
Lending),
as
lending
agent,
lends
securities
of
the
Fund
to
certain
financial
institutions
under
the
terms
of
its
securities
lending
agreement.
During
24
The
European
Equity
Fund,
Inc.
the
term
of
the
loans,
the
Fund
continues
to
receive
dividends
generated
by
the
securities
and
to
participate
in
any
changes
in
their
market
value.
The
Fund
requires
the
borrowers
of
the
securities
to
maintain
collateral
with
the
Fund
consisting
of
either
cash
or
liquid,
unencumbered
assets
having
a
value
at
least
equal
to
the
value
of
the
securities
loaned.
When
the
collateral
falls
below
specified
amounts,
the
securities
lending
agent
will
use
its
best
effort
to
obtain
additional
collateral
on
the
next
business
day
to
meet
required
amounts
under
the
securities
lending
agreement.
During
the
six
months
ended
June
30,
2024,
the
Fund
invested
the
cash
collateral
into
a
joint
trading
account
in
affiliated
money
market
funds,
including
DWS
Government
&
Agency
Securities
Portfolio,
managed
by
DWS
Investment
Management
Americas,
Inc.
DWS
Investment
Management
Americas,
Inc.
receives
a
management/administration
fee
(0.13%
annualized
effective
rate
as
of
June
30,
2024)
on
the
cash
collateral
invested
in
DWS
Government
&
Agency
Securities
Portfolio.
The
Fund
receives
compensation
for
lending
its
securities
either
in
the
form
of
fees
or
by
earning
interest
on
invested
cash
collateral
net
of
borrower
rebates
and
fees
paid
to
a
securities
lending
agent.
Either
the
Fund
or
the
borrower
may
terminate
the
loan
at
any
time
and
the
borrower,
after
notice,
is
required
to
return
borrowed
securities
within
a
standard
time
period.
There
may
be
risks
of
delay
and
costs
in
recovery
of
securities
or
even
loss
of
rights
in
the
collateral
should
the
borrower
of
the
securities
fail
financially.
If
the
Fund
is
not
able
to
recover
securities
lent,
the
Fund
may
sell
the
collateral
and
purchase
a
replacement
investment
in
the
market,
incurring
the
risk
that
the
value
of
the
replacement
security
is
greater
than
the
value
of
the
collateral.
The
Fund
is
also
subject
to
all
investment
risks
associated
with
the
reinvestment
of
any
cash
collateral
received,
including,
but
not
limited
to,
interest
rate,
credit
and
liquidity
risk
associated
with
such
investments.
The
Fund
had
no
securities
on
loan
at
June
30,
2024.
Foreign
Currency
Translation.
The
books
and
records
of
the
Fund
are
maintained
in
United
States
dollars.
Assets
and
liabilities
denominated
in
foreign
currency
are
translated
into
United
States
dollars
at
the
prevailing
exchange
rates
at
period
end.
Purchases
and
sales
of
investment
securities,
income
and
expenses
are
translated
at
the
rate
of
exchange
prevailing
on
the
respective
dates
of
such
transactions.
Net
realized
and
unrealized
gains
and
losses
on
foreign
currency
transactions
represent
net
gains
and
losses
between
trade
and
settlement
dates
on
securities
transactions,
the
acquisition
and
disposition
of
foreign
currencies,
and
the
difference
between
the
amount
of
net
investment
income
accrued
and
the
U.S.
dollar
amount
actually
received.
The
portion
of
both
realized
and
unrealized
gains
and
losses
on
investments
that
results
from
fluctuations
in
foreign
currency
exchange
The
European
Equity
Fund,
Inc.
25
rates
is
not
separately
disclosed
but
is
included
with
net
realized
and
unrealized
gain/appreciation
and
loss/depreciation
on
investments.
At
June
30,
2024,
the
exchange
rate
was
EUR
€1.00
to
USD
$1.07.
Contingencies.
In
the
normal
course
of
business,
the
Fund
may
enter
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Fund’s
maximum
exposure
under
these
arrangements
is
unknown,
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund
that
have
not
yet
occurred.
However,
based
on
experience,
the
Fund
expects
the
risk
of
loss
to
be
remote.
Taxes.
The
Fund’s
policy
is
to
comply
with
the
requirements
of
the
Internal
Revenue
Code
of
1986,
as
amended,
which
are
applicable
to
regulated
investment
companies,
and
to
distribute
all
of
its
taxable
income
to
its
shareholders.
Additionally,
the
Fund
may
be
subject
to
taxes
imposed
by
the
governments
of
countries
in
which
it
invests.
Such
taxes
are
generally
based
on
income
and/or
capital
gains
earned
or
repatriated.
Estimated
tax
liabilities
on
certain
foreign
securities
are
recorded
on
an
accrual
basis
and
are
reflected
as
components
of
interest
income
or
net
change
in
unrealized
gain/loss
on
investments.
Tax
liabilities
realized
as
a
result
of
security
sales
are
reflected
as
a
component
of
net
realized
gain/loss
on
investments.
At
December
31,
2023,
the
Fund
had
a
net
tax
basis
capital
loss
carryforward
of
approximately
$3,891,000,
which
may
be
applied
against
realized
net
taxable
capital
gains
indefinitely,
including
short-term
losses
($1,624,000)
and
long-term
losses
(2,267,000).
At
June
30,
2024,
the
aggregate
cost
of
investments
for
federal
income
tax
purposes
was
$59,512,021.
The
net
unrealized
appreciation
for
all
investments
based
on
tax
cost
was
$12,571,505.
This
consisted
of
aggregate
gross
unrealized
appreciation
for
all
investments
for
which
there
was
an
excess
of
value
over
tax
cost
of
$20,048,758
and
aggregate
gross
unrealized
depreciation
for
all
investments
for
which
there
was
an
excess
of
tax
cost
over
value
of
$7,477,253.
The
Fund
has
reviewed
the
tax
positions
for
the
open
tax
years
as
of
December
31,
2023
and
has
determined
that
no
provision
for
income
tax
and/or
uncertain
tax
positions
is
required
in
the
Fund’s
financial
statements.
The
Fund’s
federal
tax
returns
for
the
prior
three
fiscal
years
remain
open
subject
to
examinations
by
the
Internal
Revenue
Service.
Dividends
and
Distributions
to
Shareholders.
The
Fund
records
dividends
and
distributions
to
its
shareholders
on
the
ex-dividend
date.
The
timing
and
character
of
certain
income
and
capital
gain
distributions
are
determined
annually
in
accordance
with
United
States
federal
income
tax
regulations,
which
may
differ
from
accounting
principles
generally
26
The
European
Equity
Fund,
Inc.
accepted
in
the
United
States
of
America.
These
differences
primarily
relate
to
restructuring
of
certain
securities.
The
Fund
may
utilize
a
portion
of
the
proceeds
from
capital
share
repurchases
as
a
distribution
from
net
investment
income
and
realized
capital
gains.
As
a
result,
net
investment
income
(loss)
and
net
realized
gain
(loss)
on
investment
transactions
for
a
reporting
period
may
differ
significantly
from
distributions
during
such
period.
Accordingly,
the
Fund
may
periodically
make
reclassifications
among
certain
of
its
capital
accounts
without
impacting
the
NAV
of
the
Fund.
The
tax
character
of
current
year
distributions
will
be
determined
at
the
end
of
the
current
fiscal
year.
B.
Investment
Advisory
and
Administration
Agreements
The
Fund
is
party
to
an
Investment
Advisory
Agreement
with
DWS
International
GmbH
(“DWSI”).
The
Fund
also
has
an
Administration
Agreement
with
DWS
Investment
Management
Americas,
Inc.
(“DIMA”).
DWSI
and
DIMA
are
affiliated
companies.
Under
the
Investment
Advisory
Agreement
with
DWSI,
DWSI
directs
the
investments
of
the
Fund
in
accordance
with
its
investment
objectives,
policies
and
restrictions.
DWSI
determines
the
securities,
instruments
and
other
contracts
relating
to
investments
to
be
purchased,
sold
or
entered
into
by
the
Fund.
The
Investment
Advisory
Agreement
provides
DWSI
with
a
fee,
computed
weekly
and
payable
monthly,
at
the
annual
rate
of
0.65%
of
the
Fund’s
average
weekly
net
assets
up
to
and
including
$100
million,
and
0.60%
of
such
assets
in
excess
of
$100
million.
Accordingly,
for
the
six
months
ended
June
30,
2024,
the
fee
pursuant
to
the
Investment
Advisory
Agreement
aggregated
$232,714
and
was
equivalent
to
an
annualized
rate
of
0.65%
of
the
Fund’s
average
weekly
net
assets.
Under
the
Administration
Agreement
with
DIMA,
DIMA
provides
certain
fund
administration
services
to
the
Fund.
The
Administration
Agreement
provides
DIMA
with
an
annual
fee,
computed
weekly
and
payable
monthly,
of
0.20%
of
the
Fund’s
average
weekly
net
assets.
C.
Transactions
with
Affiliates
DWS
Service
Company
(“DSC”),
an
affiliate
of
DIMA,
is
the
transfer
agent,
dividend-paying
agent
and
shareholder
service
agent
of
the
Fund.
Pursuant
to
a
sub-transfer
agency
agreement
between
DSC
and
SS&C
GIDS,
Inc.
(“SS&C”),
DSC
has
delegated
certain
transfer
agent
and
dividend-paying
agent
functions
to
SS&C.
DSC
compensates
SS&C
out
of
the
fee
it
receives
from
the
Fund.
For
the
six
months
ended
June
30,
2024,
The
European
Equity
Fund,
Inc.
27
the
amount
charged
to
the
Fund
by
DSC
included
in
the
Statement
of
Operations
under
“Services
to
shareholders”
aggregated
$5,986,
of
which
$986
is
unpaid.
Under
an
agreement
with
the
Fund,
DIMA
is
compensated
for
providing
certain
pre-press
and
regulatory
filing
services
to
the
Fund.
For
the
six
months
ended
June
30,
2024,
the
amount
charged
to
the
Fund
by
DIMA
included
in
the
Statement
of
Operations
under
“Reports
to
shareholders
and
shareholder
meeting
expenses”
aggregated
$4,419,
of
which
all
is
unpaid.
Deutsche
Bank
AG,
the
majority
shareholder
in
the
DWS
Group,
and
its
affiliates
may
receive
brokerage
commissions
as
a
result
of
executing
agency
transactions
in
portfolio
securities
on
behalf
of
the
Fund,
that
the
Board
determined
were
effected
in
compliance
with
the
Fund’s
Rule
17e-1
procedures.
For
the
six
months
ended
June
30,
2024,
Deutsche
Bank
did
not
receive
brokerage
commissions
from
the
Fund.
Certain
Officers
of
the
Fund
are
also
officers
of
DIMA.
The
Fund
pays
each
Director
who
is
not
an
“interested
person”
of
DIMA
or
DWS
International
GmbH
retainer
fees
plus
specified
amounts
for
attended
board
and
committee
meetings.
The
Fund
may
invest
cash
balances
in
DWS
Central
Cash
Management
Government
Fund,
which
is
managed
by
DIMA.
The
Fund
indirectly
bears
its
proportionate
share
of
the
expenses
of
DWS
Central
Cash
Management
Government
Fund.
DWS
Central
Cash
Management
Government
Fund
does
not
pay
DIMA
an
investment
management
fee.
DWS
Central
Cash
Management
Government
Fund
seeks
maximum
current
income
to
the
extent
consistent
with
stability
of
principal.
D.
Portfolio
Securities
Purchases
and
sales
of
investment
securities,
excluding
short-term
investments,
for
the
six
months
ended
June
30,
2024
were
$7,420,038
and
$8,397,897,
respectively.
E.
Capital
During
the
six
months
ended
June
30,
2024
and
the
year
ended
December
31,
2023,
the
Fund
purchased
118,320
and
121,360
of
its
shares
of
common
stock
on
the
open
market
at
a
total
cost
of
$1,039,071
and
$1,007,771
($8.78
and
$8.30
average
per
share),
respectively.
The
average
discount
of
these
purchased
shares,
comparing
the
purchase
price
to
the
NAV
per
share
at
the
time
of
purchase,
was
16.88%
and
14.74%,
respectively.
28
The
European
Equity
Fund,
Inc.
During
the
six
months
ended
June
30,
2024
and
the
year
ended
December
31,
2023,
the
Fund
issued
for
dividend
reinvestment
31,877
and
32,196
shares,
respectively.
The
average
discount
of
these
issued
shares,
comparing
the
issue
price
to
the
NAV
per
share
at
the
time
of
issuance,
was
17.28%
and
13.00%,
respectively.
F.
Share
Repurchases
On
July
29,
2022,
the
Fund
announced
that
the
Board
of
Directors
approved
an
extension
of
the
current
repurchase
authorization
permitting
the
Fund
to
repurchase
up
to
708,104
shares
during
the
period
from
August
1,
2022
through
July
31,
2023.
The
Fund
repurchased
222,279
shares
between
August
1,
2022
and
July
31,
2023.
On
July
28,
2023,
the
Fund
announced
that
the
Board
of
Directors
approved
an
extension
of
the
current
repurchase
authorization
permitting
the
Fund
to
repurchase
up
to
687,213
shares
during
the
period
from
August
1,
2023
through
July
31,
2024.
The
Fund
repurchased
169,141
shares
between
August
1,
2023
and
June
30,
2024.
On
July
25,
2024,
the
Fund
announced
that
the
Board
of
Directors
approved
an
extension
of
the
current
repurchase
authorization
permitting
the
Fund
to
continue
to
purchase
outstanding
shares
of
its
common
stock
in
open-market
transactions
over
the
twelve-month
period
from
August
1,
2024
through
July
31,
2025.
Repurchases
will
be
made
when
the
Fund’s
shares
trade
at
a
discount
to
net
asset
value
(“NAV”)
and
such
purchases
are
deemed
to
be
in
the
best
interests
of
the
Fund.
The
amount
and
timing
of
the
repurchases
will
be
at
the
discretion
of
DIMA,
the
Funds’
administrator,
and
subject
to
market
conditions
and
investment
considerations.
There
can
be
no
assurance
that
the
Fund’s
repurchases
will
reduce
the
spread
between
the
market
price
of
the
Fund’s
shares
referred
to
below
and
its
NAV
per
share.
Monthly
updates
concerning
the
Fund’s
repurchase
program
are
available
on
its
Web
site
at
dws.com
.
G.
Concentration
of
Ownership
From
time
to
time,
the
Fund
may
have
a
concentration
of
several
shareholder
accounts
holding
a
significant
percentage
of
shares
outstanding.
Investment
activities
of
these
shareholders
could
have
a
material
impact
on
the
Fund.
At
June
30,
2024,
there
were
three
shareholders
that
held
approximately
28%,
10%
and
5%,
respectively,
of
the
outstanding
shares
of
the
Fund.
Report
of
Annual
Meeting
of
Stockholders
(Unaudited)
The
European
Equity
Fund,
Inc.
29
The
Annual
Meeting
of
Stockholders
(the
“Meeting”)
of
The
European
Equity
Fund,
Inc.
was
held
on
June
27,
2024.
At
the
close
of
business
on
May
2,
2024,
the
record
date
for
the
determination
of
stockholders
entitled
to
vote
at
the
Meeting,
there
were
issued
and
outstanding
6,752,709
shares
of
the
Fund’s
common
stock,
each
share
being
entitled
to
one
vote,
constituting
all
of
the
Fund’s
outstanding
voting
securities.
At
the
Meeting,
the
holders
of
5,484,849
shares
of
the
Fund’s
common
stock
were
represented
in
person
or
by
proxy,
constituting
a
quorum.
At
the
Meeting,
the
following
matters
were
voted
upon
by
the
stockholders.
The
resulting
votes
are
presented
below:
1.
To
elect
two
(2)
Class
I
Directors,
each
to
serve
for
a
term
of
three
years
and
until
his
or
her
successor
is
elected
and
qualifies.
The
other
Directors
of
the
Fund
whose
terms
continued
after
the
Meeting
are
Ms.
Fiona
Flannery,
Dr.
Holger
Hatje,
Mr.
Bernhard
Koepp
and
Dr.
Wolfgang
Leoni.
2.
To
ratify
the
appointment
by
the
Audit
Committee
and
the
Board
of
Directors
of
Ernst
&
Young
LLP,
an
independent
public
accounting
firm,
as
independent
auditors
for
the
fiscal
year
ending
December
31,
2024.
3.
To
approve
a
stockholder
proposal
asking
the
Fund
to
take
steps
to
declassify
the
Board
of
Directors
of
the
Fund.
In
light
of
the
vote
on
the
stockholder
proposal,
which
is
an
advisory
proposal,
the
Board
of
Directors
intends
to
carefully
evaluate
the
declassification
of
the
Fund's
Board
of
Directors.
Number
of
Votes:
For
Withheld
Ms.
Hepsen
Uzcan
5,307,271
177,578
Mr.
Christian
M.
Zügel
5,156,447
328,403
Number
of
Votes:
For
Against
Abstain
5,337,810
103,847
43,192
Number
of
Votes:
For
Against
Abstain
3,305,999
717,234
174,986
Additional
Information
30
The
European
Equity
Fund,
Inc.
Automated
Information
Lines
DWS
Closed-End
Fund
Info
Line
(800)
349-4281
Web
Site
dws.com
Obtain
fact
sheets,
financial
reports,
press
releases
and
webcasts
when
available.
Written
Correspondence
DWS
Attn:
Secretary
of
the
DWS
Funds
100
Summer
Street
Boston,
MA
02110
Legal
Counsel
Sullivan
&
Cromwell
LLP
125
Broad
Street
New
York,
NY
10004
Dividend
Reinvestment
Plan Agent
SS&C
GIDS,
Inc.
333
W.
11th
Street,
5th
Floor
Kansas
City,
MO
64105
Shareholder
Service
Agent
and
Transfer
Agent
DWS
Service
Company
P.O.
Box
219066
Kansas
City,
MO
64121-9066
(800)
437-6269
Custodian
Brown
Brothers
Harriman
&
Company
50
Post
Office
Square
Boston,
MA
02110
Independent
Registered
Public
Accounting
Firm
Ernst
&
Young
LLP
200
Clarendon
Street
Boston,
MA
02116
Proxy
Voting
A
description
of
the
Fund’s
policies
and
procedures
for
voting
proxies
for
portfolio
securities
and
information
about
how
the
Fund
voted
proxies
related
to
its
portfolio
securities
during
the
most
recent
12-month
period
ended
June
30
is
available
on
our
Web
site
—
dws.com/en-us/resources/proxy-voting
or
on
the
SEC’s
Web
site
—
sec.gov.
To
obtain
a
written
copy
of
the
Fund’s
policies
and
procedures
without
charge,
upon
request,
call
us
toll
free
at
(800)
437-6269.
The
European
Equity
Fund,
Inc.
31
Portfolio
Holdings
Following
the
Fund’s
fiscal
first
and
third
quarter-end,
a
complete
portfolio
holdings
listing
is
posted
on
dws.com,
and
is
available
free
of
charge
by
contacting
your
financial
intermediary,
or
if
you
are
a
direct
investor,
by
calling
(800)
728-3337.
In
addition,
the
portfolio
holdings
listing
is
filed
with
the
SEC
on
the
Fund’s
Form
N-PORT
and
will
be
available
on
the
SEC’s
Web
site
at
sec.gov.
Additional
portfolio
holdings
for
the
Fund
are
also
posted
on
dws.com
from
time
to
time.
Please
see
the
Fund’s
current
prospectus
for
more
information.
Investment
Management
DWS
International
GmbH,
which
is
part
of
DWS
Group,
is
the
investment
advisor
for
the
Fund.
DWS
International
GmbH
provides
a
full
range
of
investment
advisory
services
to
both
institutional
and
retail
clients.
DWS
International
GmbH
is
a
direct,
wholly
owned
subsidiary
of
DWS
Group.
DWS
Group
is
a
global
organization
that
offers
a
wide
range
of
investing
expertise
and
resources,
including
hundreds
of
portfolio
managers
and
analysts
and
an
office
network
that
reaches
the
world's
major
investment
centers.
This
well-resourced
global
investment
platform
brings
together
a
wide
variety
of
experience
and
investment
insight
across
industries,
regions,
asset
classes
and
investing
styles.
Open
Market
Purchases
by
the
Fund
Notice
is
hereby
given
in
accordance
with
Section
23(c)
of
the
Investment
Company
Act
of
1940
that
the
Fund
may
purchase
at
market
prices
from
time
to
time
shares
of
its
common
stock
in
the
open
market.
Voluntary
Cash
Purchase
Program
and
Dividend
Reinvestment
Plan
The
Fund
offers
shareholders
a
Voluntary
Cash
Purchase
Program
and
Dividend
Reinvestment
Plan
(“Plan”)
which
provides
for
optional
cash
purchases
and
for
the
automatic
reinvestment
of
dividends
and
distributions
payable
by
the
Fund
in
additional
Fund
shares.
Plan
participants
may
invest
as
little
as
$100
in
any
month
and
may
invest
up
to
$36,000
annually.
The
Plan
allows
current
shareholders
who
are
not
already
participants
in
the
Plan
and
first
time
investors
to
enroll
in
the
Plan
by
making
an
initial
cash
deposit
of
at
least
$250
with
the
plan
agent.
Share
purchases
are
combined
to
receive
a
beneficial
brokerage
fee.
A
brochure
is
available
by
writing
or
telephoning
the
transfer
agent:
DWS
Service
Company
P.O.
Box
219066
Kansas
City,
MO
64105
Tel.:
1-800-437-6269
NYSE
Symbol
EEA
Nasdaq
Symbol
XEEAX
CUSIP
Number
298768102
Notes
Notes
Notes
There
are
three
closed-end
funds
investing
in
European
equities
advised
and
administered
by
wholly
owned
subsidiaries
of
the
DWS
Group:
The
Central
and
Eastern
Europe
Fund,
Inc.
—
investing
primarily
in
equity
or
equity-linked
securities
of
issuers
domiciled
in
Central
and
Eastern
Europe
(with
normally
at
least
80%
in
securities
of
issuers
domiciled
in
countries
in
Central
and
Eastern
Europe).
The
European
Equity
Fund,
Inc.
—
investing
primarily
in
equity
or
equity-linked
securities
of
issuers
domiciled
in
Europe
(with
normally
at
least
80%
in
securities
of
issuers
domiciled
in
Europe).
The
New
Germany
Fund,
Inc.
—
investing
primarily
in
equity
or
equity-linked
securities
of
middle
market
German
companies
with
up
to
20%
in
other
Western
European
companies
(with
no
more
than
15%
in
any
single
country).
Please
consult
your
broker
for
advice
on
any
of
the
above
or
call
1-800-437-6269
for
shareholder
reports.
875
Third
Avenue
New
York,
NY
10022
EEA-3
R-028303-13
(8/24)

   
  (b) Not applicable
   
Item 2. Code of Ethics.
   
  Not applicable
   
Item 3. Audit Committee Financial Expert.
   
  Not applicable
   
Item 4. Principal Accountant Fees and Services.
   
  Not applicable
   
Item 5. Audit Committee of Listed Registrants.
   
  Not applicable
   
Item 6. Investments.
   
  Not applicable
   
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.
   
  Not applicable
   
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
   
  Not applicable
   
Item 9. Proxy Disclosures for Open-End Management Investment Companies.
   
  Not applicable
   
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
   
  Not applicable
   
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
   
  Not applicable
   
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
   
  Not applicable
   
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
   
  Not applicable
   
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
   

Period

(a)

Total Number of

Shares Purchased

(b)

Average Price Paid

per Share

(c)

Total Number of

Shares Purchased as

Part of Publicly Announced

Plans or Programs

(d)

Maximum Number of

Shares that May Yet Be

Purchased Under the

Plans or Programs

         
January 1 through January 31 19,000  $                   8.54 19,000 617,392
February 1 through February 29 27,000  $                   8.60 27,000 590,392
March 1 through March 31 21,449  $                   8.95 21,449 568,943
April 1 through April 30 25,551  $                   8.72 25,551 543,392
May 1 through May 31 3,500  $                   9.00 3,500 539,892
June 1 through June 30 21,820  $                   9.09 21,820 518,072
         
Total 118,320  $                   8.78 118,320  
           
On July 28, 2023, the Fund announced that the Board of Directors approved an extension of the current repurchase authorization permitting the Fund to repurchase up to 687,213 shares during the period from August 1, 2023 through July 31, 2024. The Fund repurchased 169,141 shares between August 1, 2023 and June 30, 2024.
         
On July 25, 2024, the Fund announced that the Board of Directors approved an extension of the current repurchase authorization permitting the Fund to continue to purchase outstanding shares of its common stock in open-market transactions over the twelve-month period from August 1, 2024 through July 31, 2025.

 

   
Item 15. Submission of Matters to a Vote of Security Holders.
   
  There were no material changes to the procedures by which stockholders may recommend nominees to the Fund’s Board.  The Nominating and Governance Committee will consider nominee candidates properly submitted by stockholders in accordance with applicable law, the Fund's Articles of Incorporation or By-laws, resolutions of the Board and the qualifications and procedures set forth in the Nominating and Governance Committee Charter and this proxy statement. The Nominating and Governance Committee's Charter requires that a stockholder or group of stockholders seeking to submit a nominee candidate (i) must have beneficially owned at least 5% of the Fund's common stock for at least two years, (ii) may submit only one nominee candidate for any particular meeting of stockholders, and (iii) may submit a nominee candidate for only an annual meeting or other meeting of stockholders at which directors will be elected. The stockholder or group of stockholders must provide notice of the proposed nominee pursuant to the requirements found in the Fund's By-laws.  Generally, this notice must be received not less than 90 days nor more than 120 days prior to the first anniversary of the date of mailing of the notice for the preceding year's annual meeting. Such notice shall include the specific information required by the Fund's By-laws. The Nominating and Governance Committee will evaluate nominee candidates properly submitted by stockholders on the same basis as it considers and evaluates candidates recommended by other sources.
   
Item 16. Controls and Procedures.
   
  (a) The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
   
  (b) There have been no changes in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.
   
   
Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
   
  Not applicable
   
Item 18. Recovery of Erroneously Awarded Compensation.
   
  Not applicable
   
Item 19. Exhibits
   
  (a)(1) Not applicable
   
  (a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.
   
  (b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Registrant: The European Equity Fund, Inc.
   
   
By:

/s/Hepsen Uzcan

Hepsen Uzcan

Principal Executive Officer

   
Date:  8/29/2024

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Registrant: The European Equity Fund, Inc.

 

By:

/s/Hepsen Uzcan

Hepsen Uzcan

Principal Executive Officer

   
Date: 8/29/2024
   
   
   
By:

/s/Diane Kenneally

Diane Kenneally

Principal Financial Officer

   
Date: 8/29/2024