N-CSRS 1 sr63025eea.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: 6/30/2025

 

Item 1. Reports to Stockholders.
   
  (a) Not applicable

June
30,
2025
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
30
Report
of
Annual
Meeting
of
Stockholders
31
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,
2025,
the
total
return
of
the
European
Equity
Fund,
Inc.
(the
“Fund”)
in
U.S.
dollars
(USD)
was
21.59%
based
on
net
asset
value
and
26.05%
based
on
market
price.
During
the
same
period,
the
return
of
the
Fund’s
benchmark,
the
MSCI
Europe
Index,
was
23.05%.
1
The
Fund’s
discount
to
net
asset
value
averaged
16.48%
for
the
period
from
January
1,
2025
to
June
30,
2025,
compared
with
17.19%
for
the
same
period
a
year
earlier.
The
first
quarter
saw
Europe
make
a
remarkable
pivot
towards
significantly
higher
defense
spending
following
the
late-February
German
elections
and
a
shift
in
European
Commission
policy
to
allow
increased
defense
spending
without
triggering
deficit
rules.
In
the
wake
of
Germany’s
election,
chancellor-designee
Merz
proposed
a
German/European
investment
plan
with
the
focus
on
infrastructure
and
defense,
while
promising
to
reduce
Germany’s
bureaucratic
burden.
March
saw
the
German
parliament
approve
a
€500
billion
infrastructure
fund,
leading
to
a
broad-based
improvement
in
expectations
for
economic
activity
across
Europe.
The
prospect
of
accelerated
growth
had
a
significant
impact
on
European
assets,
sending
both
the
region’s
equities,
most
notably
aerospace
and
defense
stocks,
and
the
bellwether
10-year
German
bund
yield,
higher.
Sentiment
was
further
boosted
in
the
quarter
as
the
European
Central
Bank
(ECB)
delivered
quarter-point
rate
cuts
at
both
its
January
and
March
meetings,
taking
the
deposit
rate
down
to
2.50%.
The
second
quarter
was
tumultuous,
as
the
announcement
in
early
April
of
much
higher-than-expected
U.S.
tariffs
led
to
a
sharp
decline
across
global
equity
markets.
This
was
soon
followed
by
a
strong
rally
triggered
by
a
90-day
delay
in
the
implementation
of
planned
tariffs
to
provide
a
window
for
the
U.S.
to
negotiate
with
its
trading
partners.
Fears
of
a
U.S.
recession
eased
in
May
on
positive
employment
data
and
a
mutual
lowering
of
tariffs
between
the
U.S.
and
China.
Oil
prices
made
a
significant
move
higher
beginning
in
early
May
on
geopolitical
tensions
as
Israel
struck
Iranian
nuclear
facilities,
before
easing
late
in
the
quarter
on
Iran’s
muted
response
to
the
U.S.
bombing
of
key
nuclear
sites.
Growing
concerns
about
the
U.S.
fiscal
situation,
reflected
in
the
downgrading
of
U.S.
debt
The
European
Equity
Fund,
Inc.
5
by
Moody's
Ratings,
pressured
long-term
bond
yields
higher
globally
while
the
euro
strengthened
significantly
against
the
U.S.
dollar.
Despite
the
backdrop
of
macroeconomic
and
geopolitical
uncertainty,
broadly
resilient
economic
data
in
both
the
U.S.
and
Europe
supported
positive
equity
market
performance
in
the
quarter.
The
ECB
once
again
implemented
a
pair
of
25
basis
point
rate
decreases
over
the
quarter,
leaving
the
deposit
rate
at
2.00%.
In
sector
terms,
positive
contributions
to
the
Fund’s
performance
relative
to
the
benchmark
were
led
by
an
overweight
to,
and
stock
selection
within,
financials.
Most
notably,
exposure
to
European
banks,
which
benefited
from
a
steepening
of
the
yield
curve
and
which
were
trading
at
attractive
valuations
compared
to
their
global
peers,
proved
additive.
Conversely,
an
underweight
to
industrials
and
overweight
to
materials
weighed
most
heavily
on
relative
performance,
while
selection
within
both
sectors
also
detracted.
In
particular,
a
lack
of
exposure
to
defense
stocks
within
industrials
constrained
return.
On
an
individual
stock
level,
within
financials,
Dutch
bank
ABN
AMRO
Bank
NV
(2.3%)
and
French
bank
Societe
Generale
SA
(2.3%)
were
among
the
leading
contributors,
along
with
French
insurer
AXA
SA
(3.3%).
Sentiment
around
Fresenius
SE
&
Co
KGaA
(2.9%),
a
German
healthcare
conglomerate
with
a
leading
kidney
treatment
franchise,
has
been
boosted
by
successful
turnaround
initiatives
and
a
simplification
of
its
business
structure.
Finally,
Germany-based
Scout24
SE
(1.9%)
hosts
a
digital
real
estate
transaction
platform.
The
company
has
been
highly
innovative
in
Sector
Diversification
(As
a
%
of
Equity
Securities)
6/30/25
12/31/24
Financials
27%
23%
Industrials
17%
15%
Health
Care
13%
15%
Communication
Services
10%
9%
Information
Technology
7%
8%
Consumer
Discretionary
6%
11%
Materials
6%
8%
Utilities
6%
3%
Consumer
Staples
4%
4%
Energy
4%
4%
100%
100%
6
The
European
Equity
Fund,
Inc.
creating
an
ecosystem
addressing
renters,
home
buyers
and
commercial
real
estate
investors,
strengthening
its
pricing
power
along
the
way.
The
principal
negative
contributors
were
German
defense-related
names
such
as
Rheinmetall
AG*
and
Rolls-Royce
Holdings
plc*
in
which
the
Fund
was
not
invested,
along
with
a
lack
of
exposure
to
German
engineering
and
technology
conglomerate
Siemens
AG*.
In
addition,
overweight
positions
in
German
athletic
wear
company
Puma
SE*
and
Irish
paper-
based
packaging
manufacturer
Smurfit
Westrock
plc*
detracted
following
profit
warnings
by
both
companies.
Market
Outlook
We
expect
that
trade
deals
to
be
negotiated
over
the
coming
months
will
moderate
the
eventual
tariff
burden
versus
the
announcements
of
early
April.
The
cost
of
re-shoring
the
production
of
drugs,
cars
and
semiconductors
to
the
U.S.
will
soon
become
visible
in
quarterly
earnings
reports.
There
is
the
potential
for
a
period
of
global
economic
stagnation
driven
by
heightened
uncertainty,
less-efficient
manufacturing,
higher
costs
across
global
supply
chains
and
rising
U.S.
inflation.
Ten
Largest
Equity
Holdings
at
June
30,
2025
(28.1%
of
Net
Assets)
Country
Percent
1
.
HSBC
Holdings
PLC
United
Kingdom
3.5%
2
.
ASML
Holding
NV
Netherlands
3.4%
3
.
AXA
SA
France
3.3%
4
.
Fresenius
SE
&
Co
KGaA
Germany
2.9%
5
.
Novo
Nordisk
A/S
Denmark
2.8%
6
.
SAP
SE
Germany
2.6%
7
.
Allianz
SE
(Registered)
Germany
2.6%
8
.
Novartis
AG
Switzerland
2.
4
%
9
.
Shell
PLC
United
Kingdom
2.3%
10
.
SSE
PLC
United
Kingdom
2.3%
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
Our
base-case
scenario
is
that
investors
are
likely
to
look
past
a
quarter
or
two
of
weaker
earnings
as
long
as
the
expectation
remains
that
tariffs
will
be
negotiated
down
and
that
long-term
U.S.
Treasury
yields
will
not
move
sharply
higher.
European
equities
still
appear
attractively
valued
by
historical
standards
and
relative
to
other
markets.
In
addition,
the
region’s
improving
purchasing
manager
indices
are
likely
to
attract
inflows
from
overseas
investors.
More
broadly,
we
expect
European
equities
to
trade
at
a
narrowing
discount
to
U.S.
equities
as
global
investors
look
for
alternatives
to
U.S.
assets.
The
Fund
is
diversified
across
structural
growth
narratives
trading
at
higher
multiples
and
attractively
valued
areas
of
the
market,
most
notably
banks
with
respect
to
the
latter
category.
While
European
banks
have
seen
sizable
outperformance
and
valuations
in
that
sector
are
somewhat
less
compelling
than
previously,
they
remain
less
expensive
than
their
global
peers
and
the
macro
environment
still
favors
the
sector.
The
Fund
remains
overweight
communication
services
as
we
expect
consolidation
and
declining
capital
expenditures
to
support
earnings
growth
and
free
cash
flow
in
the
sector.
We
have
reduced
exposure
to
consumer
discretionary
as
tariffs
may
weigh
on
global
growth
and
lead
to
higher
inflation,
with
a
negative
impact
on
consumer
confidence.
Lastly,
on
May
9,
2025,
Mr.
Christian
M.
Zügel
retired
from
the
Fund's
Board.
The
Board
thanks
Mr.
Zügel
for
his
excellent
service
for
many
years
to
the
Fund.
Sincerely,
Juan
Barriobero
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.
Percentages
in
parentheses
are
based
on
the
Fund's
net
assets
as
of
June
30,
2025
.
*
Not
held
at
June
30,
2025.
Other
Information
-
Announcement
of
Portfolio
Manager
Change
As
previously
announced,
Hansjoerg
Pack
became
the
Fund’s
portfolio
manager
on
July
1,
2025,
replacing
Juan
Barriobero,
who
became
the
Fund’s
deputy
portfolio
manager
at
that
time,
replacing
Frank
Kuemmet.
Mr.
Pack
joined
DWS
in
1997
and
has
extensive
portfolio
management
experience,
including
multiple
global
equity
strategies
with
significant
exposure
to
European
markets.
He
also
has
experience
in
managing
funds
with
significant
allocations
to
German
small
and
mid-cap
equity
securities,
including
DWS
Aktien
Strategie
Deutschland
(with
current
net
assets
of
over
EUR
2
billion)
from
2016
to
the
present.
Mr.
Pack
received
a
BA
in
Business
Administration
from
Sheffield
Hallam
University;
a
Master's
Degree
in
Economics
("Diplom-Volkswirt")
from
University
of
Duisburg-
Essen;
and
is
a
CEFA
-
Certified
European
Financial
Analyst.
Performance
Summary
June
30,
2025
(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
6/30/25
6-Month
‡
1-Year
5-Year
10-Year
Net
Asset
Value
(a)
21.59%
14.25%
10.52%
6.91%
Market
Price
(a)
26.05%
16.11%
10.81%
6.15%
MSCI
Europe
Index
(b)
23.05%
18.38%
12.38%
6.78%
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,
2025
was
1.46%.
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
6/30/25
As
of
12/31/24
Net
Asset
Value
$    
12.05
$    
9.94
Market
Price
$    
10.23
$    
8.14
Prices
and
Net
Asset
Value
fluctuate
and
are
not
guaranteed.
Distribution
Information
Per
Share
Six
Months
as
of
6/30/25:
Income
Distribution
$    
0.03
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,
2025
(Unaudited)
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
The
European
Equity
Fund,
Inc.
11
Shares
Value
($)
Common
Stocks
97.4%
Germany
23.2%
Aerospace
&
Defense
1.7%
MTU
Aero
Engines
AG
3,124
1,382,703
Diversified
Telecommunication
Services
1.0%
Deutsche
Telekom
AG
(Registered)
22,175
805,844
Electrical
Equipment
1.8%
Siemens
Energy
AG*
13,035
1,499,854
Health
Care
Providers
&
Services
2.9%
Fresenius
SE
&
Co
KGaA
46,685
2,338,018
Independent
Power
&
Renewable
Electricity
Producers
1.0%
RWE
AG
18,682
776,677
Insurance
2.6%
Allianz
SE
(Registered)
5,157
2,082,226
Interactive
Media
&
Services
1.9%
Scout24
SE
144A
11,365
1,561,610
Machinery
2.1%
Daimler
Truck
Holding
AG
17,444
822,231
Knorr-
Bremse
AG
9,357
900,868
1,723,099
Multi-Utilities
2.3%
E.ON
SE
101,509
1,861,104
Passenger
Airlines
1.1%
Deutsche
Lufthansa
AG
(Registered)
103,843
874,879
Semiconductors
&
Semiconductor
Equipment
1.3%
Infineon
Technologies
AG
24,189
1,025,066
Software
2.6%
SAP
SE
6,979
2,114,031
Textiles,
Apparel
&
Luxury
Goods
0.9%
adidas
AG
3,261
757,447
Total
Germany
(Cost
$13,160,997)
18,802,558
France
20.7%
Banks
2.3%
Societe
Generale
SA
32,674
1,861,391
Chemicals
1.9%
Air
Liquide
SA
7,319
1,504,122
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
12
The
European
Equity
Fund,
Inc.
Shares
Value
($)
Construction
&
Engineering
1.9%
Vinci
SA
10,591
1,554,677
Diversified
Telecommunication
Services
1.8%
Orange
SA
95,991
1,454,692
Electrical
Equipment
2.0%
Schneider
Electric
SE
6,013
1,593,167
Hotels,
Restaurants
&
Leisure
0.9%
Accor
SA
14,679
763,555
Insurance
4.9%
AXA
SA
54,014
2,641,046
SCOR
SE
40,074
1,317,580
3,958,626
Oil,
Gas
&
Consumable
Fuels
1.5%
TotalEnergies
SE
19,869
1,214,675
Personal
Care
Products
1.7%
L'Oreal
SA
3,224
1,373,622
Pharmaceuticals
0.9%
Sanofi
SA
7,452
718,859
Textiles,
Apparel
&
Luxury
Goods
0.9%
Hermes
International
SCA
280
755,341
Total
France
(Cost
$13,887,532)
16,752,727
United
Kingdom
17.7%
Banks
3.5%
HSBC
Holdings
PLC
232,688
2,811,230
Capital
Markets
1.5%
London
Stock
Exchange
Group
PLC
8,144
1,186,663
Electric
Utilities
2.3%
SSE
PLC
75,132
1,884,801
Hotels,
Restaurants
&
Leisure
1.6%
Compass
Group
PLC
37,562
1,269,610
Interactive
Media
&
Services
1.2%
Auto
Trader
Group
PLC
144A
88,147
995,630
Media
1.1%
Informa
PLC
83,569
922,624
Oil,
Gas
&
Consumable
Fuels
2.3%
Shell
PLC
54,481
1,906,045
Pharmaceuticals
2.2%
AstraZeneca
PLC
12,683
1,758,550
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
The
European
Equity
Fund,
Inc.
13
Shares
Value
($)
Professional
Services
2.0%
RELX
PLC
30,100
1,623,619
Total
United
Kingdom
(Cost
$10,136,453)
14,358,772
Switzerland
9.1%
Chemicals
2.1%
DSM-
Firmenich
AG
8,220
870,589
Sika
AG
(Registered)
3,153
853,104
1,723,693
Food
Products
1.6%
Nestle
SA
(Registered)
13,373
1,324,198
Pharmaceuticals
4.4%
Novartis
AG
(Registered)
15,802
1,908,904
Roche
Holding
AG
4,948
1,606,033
3,514,937
Textiles,
Apparel
&
Luxury
Goods
1.0%
Cie
Financiere
Richemont
SA
''A''
(Registered)
4,396
825,251
Total
Switzerland
(Cost
$7,650,095)
7,388,079
Netherlands
9.0%
Aerospace
&
Defense
1.0%
Airbus
SE
3,854
801,620
Banks
3.4%
ABN
AMRO
Bank
NV
(CVA)
144A
67,370
1,837,168
ING
Groep
NV
39,554
864,482
2,701,650
Financial
Services
1.2%
Adyen
NV
144A*
557
1,018,545
Semiconductors
&
Semiconductor
Equipment
3.4%
ASML
Holding
NV
3,463
2,753,417
Total
Netherlands
(Cost
$4,248,480)
7,275,232
Denmark
4.1%
Air
Freight
&
Logistics
1.3%
DSV
A/S
4,543
1,087,434
Pharmaceuticals
2.8%
Novo
Nordisk
A/S
''B''
32,396
2,239,723
Total
Denmark
(Cost
$1,524,711)
3,327,157
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
14
The
European
Equity
Fund,
Inc.
Shares
Value
($)
Italy
4.0%
Banks
2.2%
Intesa
Sanpaolo
SpA
309,588
1,776,938
Electrical
Equipment
1.8%
Prysmian
SpA
20,331
1,432,338
Total
Italy
(Cost
$2,394,805)
3,209,276
Norway
3.1%
Banks
1.9%
DNB
Bank
ASA
55,589
1,528,487
Diversified
Telecommunication
Services
1.2%
Telenor
ASA
62,407
965,149
Total
Norway
(Cost
$1,914,630)
2,493,636
Sweden
2.5%
Banks
1.2%
Swedbank
AB
''A''
37,067
973,239
Entertainment
1.3%
Spotify
Technology
SA*
1,372
1,045,903
Total
Sweden
(Cost
$1,399,764)
2,019,142
Spain
2.2%
Banks
2.2%
Banco
Santander
SA
(Cost
$929,050)
220,714
1,819,893
United
States
1.8%
Construction
Materials
1.8%
CRH
PLC
(Cost
$777,447)
(a)
15,690
1,442,870
Total
Common
Stocks
(Cost
$58,023,964)
78,889,342
Preferred
Stocks
0.6%
Germany
0.6%
Automobiles
0.6%
Porsche
Automobil
Holding
SE
(Cost
$1,267,155)
12,572
496,994
Cash
Equivalents
1.5%
DWS
Central
Cash
Management
Government
Fund,
4.37%
(Cost
$1,243,123)
(b)
1,243,123
1,243,123
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
The
European
Equity
Fund,
Inc.
15
%
of
Net
Assets
Value
($)
Total
Investment
Portfolio
(Cost
$60,534,242)
99.5
80,629,459
Other
Assets
and
Liabilities,
Net
0.5
423,241
Net
Assets
100.0
81,052,700
A
summary
of
the
Fund’s
transactions
with
affiliated
investments
during
the
period
ended
June
30,
2025
are
as
follows:
Net
Change
Value
($)
at
12/31/2024
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
6/30/2025
Value
($)
at
6/30/2025
Securities
Lending
Collateral
0.0%
DWS
Government
&
Agency
Securities
Portfolio
''DWS
Government
Cash
Institutional
Shares'',
4.25%
(b)
(c)
263,920
–
263,920
(d)
–
–
7,545
–
–
–
Cash
Equivalents
1.5%
DWS
Central
Cash
Management
Government
Fund,
4.37%
(b)
1,828,248
6,962,288
7,547,413
–
–
32,565
–
1,243,123
1,243,123
2,092,168
6,962,288
7,811,333
–
–
40,110
–
1,243,123
1,243,123
*
Non-income
producing
security.
(a)
CRH
PLC
is
incorporated
in
Ireland
and
is
listed
on
the
New
York
Stock
Exchange
and
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,
2025.
144A:
Securities
exempt
from
registration
under
Rule
144A
under
the
Securities
Act
of
1933.
These
securities
may
be
resold
in
transactions
exempt
from
registration,
normally
to
qualified
institutional
buyers.
CVA:
Credit
Valuation
Adjustment.
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
16
The
European
Equity
Fund,
Inc.
(e)
See
Schedule
of
Investments
for
additional
detailed
categorizations
.
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.
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,
2025
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
$
19,299,552
$
—
$
—
$
19,299,552
France
16,752,727
—
—
16,752,727
United
Kingdom
14,358,772
—
—
14,358,772
Switzerland
7,388,079
—
—
7,388,079
Netherlands
7,275,232
—
—
7,275,232
Denmark
3,327,157
—
—
3,327,157
Italy
3,209,276
—
—
3,209,276
Norway
2,493,636
—
—
2,493,636
Sweden
2,019,142
—
—
2,019,142
Spain
1,819,893
—
—
1,819,893
United
States
1,442,870
—
—
1,442,870
Short-Term
Instruments
(e)
1,243,123
—
—
1,243,123
Total
$
80,629,459
$
—
$
—
$
80,629,459
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,
2025
(Unaudited)
Assets
Investments
in
non-affiliated
securities,
at
value
(cost
$59,291,119)
$
79,386,336
Investment
in
DWS
Central
Cash
Management
Government
Fund
(cost
$1,243,123)
1,243,123
Foreign
currency,
at
value
(cost
$166,738)
171,644
Dividends
receivable
41,067
Foreign
taxes
recoverable
331,682
Interest
receivable
4,385
Other
assets
26,515
Total
assets
81,204,752
Liabilities
Investment
advisory
fee
payable
42,714
Administration
fee
payable
13,148
Payable
for
Directors'
fees
and
expenses
312
Accrued
expenses
and
other
liabilities
95,878
Total
liabilities
152,052
Net
assets
$
81,052,700
Net
Assets
Consist
of
Distributable
earnings
(gain)
19,973,276
Paid-in
capital
61,079,424
Net
assets
$
81,052,700
Net
Asset
Value
Net
assets
value
per
share
($81,052,700
÷
6,725,724
shares
of
common
stock
issued
and
outstanding,
$.001
par
value,
80,000,000
shares
authorized)
$
12.05
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,
2025
(Unaudited)
Net
Investment
Income
Income:
Dividends
(net
of
foreign
withholding
taxes
of
$294,483)
$
1,676,407
Income
distributions
—
DWS
Central
Cash
Management
Government
Fund
32,565
Securities
lending
income,
net
of
borrower
rebates
7,545
Total
investment
income
1,716,517
Expenses:
Investment
advisory
fee
236,924
Administration
fee
72,899
Custody
and
accounting
fee
25,208
Services
to
shareholders
8,262
Reports
to
shareholders
and
shareholder
meeting
expenses
22,863
Directors'
fees
and
expenses
48,308
Legal
fees
56,687
Audit
and
tax
fees
27,512
NYSE
listing
fee
11,771
Insurance
12,954
Miscellaneous
12,660
Net
expenses
536,048
Net
investment
income
1,180,469
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
from:
Investments
1,207,500
Foreign
currency
15,455
Net
realized
gain
(loss)
1,222,955
Change
in
net
unrealized
appreciation
(depreciation)
on:
Investments
11,983,782
Foreign
currency
43,642
Change
in
net
unrealized
appreciation
(depreciation)
12,027,424
Net
gain
(loss)
13,250,379
Net
increase
(decrease)
in
net
assets
resulting
from
operations
$
14,430,848
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,
2025
(Unaudited)
Year
Ended
December
31,
2024
Operations:
Net
investment
income
(loss)
  $
1,180,469
  $
1,232,994
Net
realized
gain
(loss)
1,222,955
1,965,023
Change
in
net
unrealized
appreciation
(depreciation)
12,027,424
(5,164,845)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
14,430,848
(1,966,828)
Distributions
to
shareholders
(199,754)
(1,198,572)
Fund
share
transactions:
Net
proceeds
from
reinvestment
of
distributions
221,984
270,954
Shares
repurchased
–
(1,282,114)
Net
increase
(decrease)
in
net
assets
from
Fund
share
transactions
221,984
(1,011,160)
Total
increase
(decrease)
in
net
assets
14,453,078
(4,176,560)
Net
assets
at
beginning
of
period
66,599,622
70,776,182
Net
assets
at
end
of
period
  $
81,052,700
  $
66,599,622
Other
Information
Shares
outstanding
at
beginning
of
period
6,700,209
6,813,832
Shares
issued
from
reinvestment
of
distributions
25,515
31,877
Shares
repurchased
–
(145,500)
Shares
outstanding
at
end
of
period
6,725,724
6,700,209
Financial
Highlights
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
20
The
European
Equity
Fund,
Inc.
Six
Months    
Ended
6/30/25
Years
Ended
December
31,  
(Unaudited)  
2024
2023
2022
2021
2020
Per
Share
Operating
Performance
Net
asset
value,
beginning
of
period
$
9.94
$
10.39
$
8.81
$
11.95
$
12.09
$
10.73
Income
(loss)
from
investment
operations:
Net
investment
income
(loss)
a
.
18
.18
.15
.16
.15
.10
Net
realized
and
unrealized
gain
(loss)
on
investments
and
foreign
currency
1.97
(.48)
1.58
(2.40)
1.11
1.38
Total
from
investment
operations
2.15
(.30)
1.73
(2.24)
1.26
1.48
Less
distributions
from:
Net
investment
income
(.03)
(.18)
(.17)
(.29)
(.11)
(.13)
Net
realized
gains
–
–
–
(.58)
(1.39)
(.07)
Total
distributions
(.03)
(.18)
(.17)
(.87)
(1.50)
(.20)
Dilution
in
net
asset
value
from
dividend
reinvestment
(.01)
(.01)
(.01)
(.10)
–
(.01)
Increase
resulting
from
share
repurchases
–
.04
.03
.07
.10
.09
Net
asset
value,
end
of
period
$
12.05
$
9.94
$
10.39
$
8.81
$
11.95
$
12.09
Market
value,
end
of
period
$
10.23
$
8.14
$
8.62
$
7.50
$
10.37
$
10.40
Total
Investment
Return
for
the
Period
b
Based
upon
market
value
(%)
26.05
**
(3.64)
17.27
(19.12)
15.23
13.28
Based
upon
net
asset
value
(%)
21.59
**
(2.38)
20.33
c
(17.55)
c
14.22
15.12
Financial
Highlights
(continued)
The
accompanying
notes
are
an
integral
part
of
the
financial
statements.
The
European
Equity
Fund,
Inc.
21
Six
Months    
Ended
6/30/25
Years
Ended
December
31,  
(Unaudited)  
2024
2023
2022
2021
2020
Ratios
to
Average
Net
Assets
Total
expenses
before
reductions
(%)
1.46
*
1.49
1.55
1.57
1.28
1.30
Total
expenses
after
reductions
(%)
1.46
*
1.49
1.
4
5
1.
4
7
1.28
1.30
Net
investment
income
(%)
1.60
**
1.71
1.50
1.66
1.16
.93
Portfolio
turnover
(%)
24
**
23
13
25
57
25
Net
assets
at
end
of
period
($
thousands)
81,053
66,600
70,776
60,818
81,109
87,186
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
company
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.
Subsequent
events,
if
any,
through
the
date
that
the
financial
statements
were
issued
have
been
evaluated
in
the
preparation
of
the
financial
statements.
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.
Operating
Segment.
The
Fund
adopted
FASB
Accounting
Standards
Update
2023-07,
Segment
Reporting
(Topic
280)
-
Improvements
to
Reportable
Segment
Disclosures
(“ASU
2023-07”).
ASU
2023-07
impacts
financial
statement
disclosures
only
and
does
not
affect
the
Fund’s
financial
position
or
the
results
of
its
operations.
An
operating
segment
is
defined
in
Topic
280
as
a
component
of
a
public
entity
that
engages
in
business
activities
from
which
it
may
recognize
revenues
and
incur
expenses,
has
operating
results
that
are
regularly
reviewed
by
the
public
entity’s
chief
operating
decision
maker
(“CODM”)
to
make
decisions
about
resources
to
be
allocated
to
the
segment
and
assess
its
performance,
and
has
discrete
financial
information
available.
The
President
and
Chief
Executive
Officer
acts
as
the
Fund’s
CODM.
The
Fund
represents
a
single
operating
segment,
as
the
CODM
monitors
the
operating
results
of
the
Fund
as
a
whole,
and
the
Fund’s
long-term
strategic
asset
allocation
is
pre-determined
in
accordance
with
the
terms
of
its
investment
objective,
investment
policies
and
principal
risks,
based
on
a
defined
investment
strategy
that
is
executed
by
the
Fund’s
portfolio
managers
as
a
team.
The
financial
information
in
the
form
of
the
Fund’s
portfolio
composition,
total
returns,
expense
ratios
and
changes
in
net
asset
(i.e.,
changes
in
net
assets
resulting
from
operations),
which
are
used
by
the
CODM
to
assess
the
segment’s
performance
versus
the
Fund’s
comparative
benchmarks
and
to
make
resource
allocation
decisions
for
the
Fund’s
single
segment,
is
consistent
The
European
Equity
Fund,
Inc.
23
with
that
presented
within
the
Fund’s
financial
statements.
Segment
assets
are
reflected
on
the
accompanying
statement
of
assets
and
liabilities
as
“total
assets”
and
results
of
operations
and
significant
segment
expenses
are
listed
on
the
accompanying
statement
of
operations.
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
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
24
The
European
Equity
Fund,
Inc.
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
securities
lending
agent,
lends
securities
of
the
Fund
to
certain
financial
institutions
under
the
terms
of
its
securities
lending
agreement.
During
the
term
of
the
loans,
the
Fund
continues
to
receive
interest
and
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
cash
and/
or
securities
issued
or
guaranteed
by
the
U.S.
Government,
its
agencies
or
instrumentalities
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
efforts
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,
2025,
the
Fund
invested
the
cash
collateral,
if
any,
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,
2025)
on
the
cash
collateral
invested
in
DWS
Government
&
Agency
Securities
The
European
Equity
Fund,
Inc.
25
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.
As
of
June
30,
2025
the
Fund
had
no
securities
on
loan.
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
rates
is
not
separately
disclosed
but
is
included
with
net
realized
and
unrealized
gain/appreciation
and
loss/depreciation
on
investments.
At
June
30,
2025,
the
exchange
rate
was
EUR
€1.00
to
USD
$1.17.
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.
Tax
Information.
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.
26
The
European
Equity
Fund,
Inc.
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,
2024,
the
Fund
had
a
net
tax
basis
capital
loss
carryforward
of
approximately
$1,990,000,
which
may
be
applied
against
realized
net
taxable
capital
gains
indefinitely,
including
short-term
losses
($1,639,000)
and
long-term
losses
($351,000).
At
June
30,
2025,
the
aggregate
cost
of
investments
for
federal
income
tax
purposes
was
$60,541,716.
The
net
unrealized
appreciation
for
all
investments
based
on
tax
cost
was
$20,087,743.
This
consisted
of
aggregate
gross
unrealized
appreciation
for
all
investments
for
which
there
was
an
excess
of
value
over
tax
cost
of
$23,757,296
and
aggregate
gross
unrealized
depreciation
for
all
investments
for
which
there
was
an
excess
of
tax
cost
over
value
of
$3,669,553.
The
Fund
files
tax
returns
with
the
Internal
Revenue
Service,
the
State
of
New
York,
and
various
other
states.
Specific
to
U.S.
federal
and
state
taxes,
generally,
each
of
the
tax
years
in
the
four-year
period
ended
December
31,
2024,
remains
subject
to
examination
by
taxing
authorities.
Specific
to
foreign
countries
in
which
the
Fund
invests,
all
open
tax
years
remain
subject
to
examination
by
taxing
authorities
in
the
respective
jurisdictions.
The
open
tax
years
vary
by
each
jurisdiction
in
which
the
Fund
invests.
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
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.
The
European
Equity
Fund,
Inc.
27
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,
2025,
the
fee
pursuant
to
the
Investment
Advisory
Agreement
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,
2025,
the
amount
charged
to
the
Fund
by
DSC
included
in
the
Statement
of
Operations
under
“Services
to
shareholders”
aggregated
$5,962,
of
which
$1,962
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,
2025,
the
amount
charged
to
the
Fund
by
DIMA
included
in
the
Statement
of
Operations
under
“Reports
to
shareholders
and
shareholder
meeting
expenses”
aggregated
$834,
of
which
$284
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
28
The
European
Equity
Fund,
Inc.
Board
determined
were
effected
in
compliance
with
the
Fund’s
Rule
17e-1
procedures.
For
the
six
months
ended
June
30,
2025,
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.
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,
2025
were
$18,253,525
and
$17,538,180,
respectively.
E.
Capital
During
the
six
months
ended
June
30,
2025,
the
Fund
did
not
purchase
any
shares
of
its
common
stock.
During
the
year
ended
December
31,
2024,
the
Fund
purchased
145,500
of
its
shares
of
common
stock
on
the
open
market
at
a
total
cost
$1,282,114
($8.81
average
per
share).
The
average
discount
of
these
purchased
shares,
comparing
the
purchase
price
to
the
NAV
per
share
at
the
time
of
purchase,
was
16.89%.
During
the
six
months
ended
June
30,
2025
and
the
year
ended
December
31,
2024,
the
Fund
issued
for
dividend
reinvestment
25,515
and
31,877
shares,
respectively.
The
average
discount
of
these
issued
shares,
comparing
the
issue
price
to
the
NAV
per
share
at
the
time
of
issuance,
was
17.39%
and
17.28%,
respectively.
F.
Share
Repurchases
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
177,321
shares
between
August
1,
2023
and
July
31,
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
The
European
Equity
Fund,
Inc.
29
transactions
over
the
twelve-month
period
from
August
1,
2024
through
July
31,
2025.
The
Fund
repurchased
19,000
shares
between
August
1,
2024
and
June
30,
2025.
On
July
25,
2025,
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,
2025
through
July
31,
2026.
The
Fund
did
not
repurchase
shares
between
December
1,
2024
and
June
30,
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,
2025,
there
were
three
shareholders
that
held
approximately
26%,
10%
and
6%,
respectively,
of
the
outstanding
shares
of
the
Fund.
Report
of
Annual
Meeting
of
Stockholders
(Unaudited)
30
The
European
Equity
Fund,
Inc.
The
Annual
Meeting
of
Stockholders
(the
“Meeting”)
of
The
European
Equity
Fund,
Inc.
was
held
on
June
30,
2025.
At
the
close
of
business
on
May
16,
2025,
the
record
date
for
the
determination
of
stockholders
entitled
to
vote
at
the
Meeting,
there
were
issued
and
outstanding
6,725,724
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
5,274,402
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
II
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
Mr.
Bernhard
Koepp,
Dr.
Wolfgang
Leoni
and
Ms.
Hepsen
Uzcan.
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,
2025.
3.
To
adopt
Articles
of
Amendment
to
the
Fund’s
charter
to
eliminate
the
classification
of
the
Board
of
Directors.
Number
of
Votes
For
Withheld
Ms.
Fiona
Flannery
5,016,825
257,574
Dr.
Holger
Hatje
5,074,113
200,285
Number
of
Votes
For
Against
Abstain
5,066,858
171,871
35,673
Number
of
Votes
For
Against
Abstain
3,712,536
131,594
22,294
Additional
Information
The
European
Equity
Fund,
Inc.
31
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.
32
The
European
Equity
Fund,
Inc.
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
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-028303-14
(8/25)

   
  (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.
   

 

Portfolio Manager Disclosure:

 

As of the date of this report, the following individual handles the day-to-day management of the Fund.

 

Juan Barriobero de la Pisa, CFA, CESGA, Director, Senior Portfolio Manager Equity and Portfolio Manager of the Fund

  • DWS Head of Spanish Equities from 2007-2019 and Executive Member of the Board at DWS Spain 2016-2018.
  • Joined DWS in 1999 and the Fund in 2020.
  • Degree in European Economic Sciences (ICADE E4), University Pontificia de Comillas.

 

Hansjoerg Pack*, Director, Senior Portfolio Manager Equity and Portfolio Manager of the Fund

·Joined DWS in 1997 and the Fund in 2025.
·BA in Business Administration from Sheffield Hallam University; Master's Degree in Economics ("Diplom-Volkswirt") from University of Duisburg-Essen; CEFA - Certified European Financial Analyst.

 

* Hansjoerg Pack replaced Juan Barriobero de la Pisa as portfolio manager of the Fund effective July 1, 2025.

 

Compensation of Portfolio Managers

 

The Advisor and its affiliates are part of DWS. The brand DWS represents DWS Group GmbH & Co. KGaA (“DWS Group”) and any of its subsidiaries such as DWS Investment Management Americas, Inc. and RREEF America L.L.C. which offer advisory services. DWS seeks to offer its investment professionals competitive short-term and long-term compensation based on continuous, above average, fund performance relative to the market. This includes measurement of short and long-term performance against industry and portfolio benchmarks. As employees of DWS, portfolio managers are paid on a total compensation basis, which includes Fixed Pay (base salary) and Variable Compensation, as set forth below. The compensation information below is provided as of the Fund’s most recent semi-annual report dated June 30, 2025.

 

·Fixed Pay (FP) is the key and primary element of compensation for the majority of DWS employees and reflects the value of the individual’s role and function within the organization.  It rewards factors that an employee brings to the organization such as skills and experience, while reflecting regional and divisional (i.e. DWS) specifics. FP levels play a significant role in ensuring competitiveness of the Advisor and its affiliates in the labor market, thus benchmarking provides a valuable input when determining FP levels.

 

·Variable Compensation (VC) is a discretionary compensation element that enables DWS Group to provide additional reward to employees for their performance and behaviors, while reflecting DWS Group’s affordability and financial situation. VC aims to:

 

oRecognize that every employee contributes to the DWS’s success through the franchise component of Variable Compensation (Franchise Component), and
oReflect individual performance, investment performance, behaviours and culture through discretionary individual VC (Individual Component).

 

Employee seniority as well as divisional and regional specifics determine which VC elements are applicable for a given employee and the conditions under which they apply.  Both Franchise and Individual Components may be awarded in shares or other share-based instruments and other deferral arrangements.

 

·VC can be delivered via cash, restricted equity awards, and/or restricted incentive awards or restricted compensation. Restricted compensation may include:
onotional fund investments
orestricted equity, notional equity,
orestricted cash,
oor such other form as DWS may decide in its sole discretion

 

·VC comprises a greater proportion of total compensation as an employee’s seniority and total compensation level increase. Proportion of VC delivered via a long-term incentive award, which is subject to performance conditions and forfeiture provisions, will increase significantly as the amount of the VC increases. 

 

·Additional forfeiture and claw back provisions, including complete forfeiture and claw back of VC may apply in certain events if an employee is designated a Material Risk Taker.

 

·For key investment professionals, in particular, a portion of any long-term incentives will be in the form of notional investments aligned, where possible, to the funds they manage.

 

In general, each of the Advisor and its advisory affiliates seek to offer their investment professionals competitive short-term and long-term compensation based on continuous, above average, fund performance relative to the market. This includes measurement of short and long-term performance against industry and portfolio benchmarks. To evaluate their investment professionals in light of and consistent with the compensation principles set forth above, the Advisor and its affiliates review investment performance for all accounts managed in relation to the appropriate Morningstar peer group universe with respect to a fund, iMoneyNet peer group with respect to a money market fund or relevant benchmark index(es) set forth in the governing documents with respect to each other account type.  The ultimate goal of this process is to evaluate the degree to which investment professionals deliver investment performance that meets or exceeds their clients’ risk and return objectives. When determining total compensation, the Advisor and its affiliates consider a number of quantitative, qualitative and other factors:

 

-Quantitative measures (e.g. one-, three- and five-year pre-tax returns versus the appropriate Morningstar peer group universe for a fund, or versus the appropriate iMoneyNet peer group for a money market fund or relevant benchmark index(es) set forth in the governing documents with respect to each other account type, taking risk targets into account) are utilized to measure performance.
-Qualitative measures (e.g. adherence to, as well as contributions to, the enhancement of the investment process) are included in the performance review.
-Other factors (e.g. non-investment related performance, teamwork, adherence to compliance rules, risk management and "living the values" of the Advisor and its affiliates) are included as part of a discretionary component of the review process, giving management the ability to consider additional markers of performance on a subjective basis.
-Furthermore, it is important to note that DWS Group functions within a controlled environment based upon the risk limits established by DWS Group’s Risk division, in conjunction with DWS Group management. Because risk consideration is inherent in all business activities, performance assessment factors in an employee’s ability to assess and manage risk.

Fund Ownership of Portfolio Managers

The following table shows the dollar range of Fund shares owned beneficially and of record by each member of the Fund’s portfolio management team as well as in all US registered Funds advised by DWS International GmbH as a group (the “Family of Funds”), including investments by their immediate family members sharing the same household and amounts invested through retirement and deferred compensation plans. This information is provided as of the Fund’s most recent semi-annual report dated June 30, 2025.

 

Name of
Portfolio Manager

Dollar Range of

Fund Shares Owned

 Dollar Range of All in the Family of Funds Shares Owned
Juan Barriobero de la Pisa - -
Hansjoerg Pack - $100,001 - $500,000
     

Conflicts of Interest

In addition to managing the assets of the Fund, the Fund’s portfolio managers may have responsibility for managing other client accounts of the Advisor or its affiliates. The tables below show, for each portfolio manager, the number and asset size of (1) SEC registered investment companies (or series thereof) other than the Fund, (2) pooled investment vehicles that are not registered investment companies and (3) other accounts (e.g., accounts managed for individuals or organizations) managed by each portfolio manager. Total assets attributed to each portfolio manager in the tables below include total assets of each account managed by them, although the manager may only manage a portion of such account’s assets. For Funds subadvised by subadvisors unaffiliated with DWS International GmbH, total assets of Funds managed may only include assets allocated to the portfolio manager and not the total assets of each Fund managed. The tables also show the number of performance-based fee accounts, as well as the total assets of the accounts for which the advisory fee is based on the performance of the account. This information is provided as of the Fund’s most recent semi-annual report dated June 30, 2025.

 

Other SEC Registered Investment Companies Managed:

 

Name of Portfolio Manager Number of  Registered Investment Companies Total Assets of Registered Investment Companies Number of Investment Company Accounts with Performance Based Fee Total Assets of Performance- Based Fee Accounts
Juan Barriobero de la Pisa - - - -
Hansjoerg Pack 1 $216,329,865 - -
         
         
         

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Pooled Investment Vehicles Managed:

 

Name of Portfolio Manager Number of Pooled Investment Vehicles Total Assets of Pooled Investment Vehicles  Number of Pooled Investment Vehicle Accounts with Performance-Based Fee Total Assets of Performance- Based Fee Accounts
Juan Barriobero de la Pisa 1 $63,661,443 - -
Hansjoerg Pack 2 $2,611,088,747 - -
         

 

 

Other Accounts Managed:

 

Name of Portfolio Manager Number of Other Accounts Total Assets of Other Accounts Number of Other Accounts with Performance- Based Fee Total Assets of Performance- Based Fee Accounts
Juan Barriobero de la Pisa - - - -
Hansjoerg Pack - - - -
         
         
         

 

In addition to the accounts above, an investment professional may manage accounts in a personal capacity that may include holdings that are similar to, or the same as, those of the Funds. The Advisor or Subadvisor, as applicable, has in place a Code of Ethics that is designed to address conflicts of interest and that, among other things, imposes restrictions on the ability of portfolio managers and other “access persons” to invest in securities that may be recommended or traded in the Funds and other client accounts.

 

Real, potential or apparent conflicts of interest may arise when a portfolio manager has day-to-day portfolio management responsibilities with respect to more than one fund or account, including the following:

 

·Certain investments may be appropriate for the Fund and also for other clients advised by the Advisor and their affiliates, including other client accounts managed by the Fund’s portfolio management team. Investment decisions for the Fund and other clients are made with a view to achieving their respective investment objectives and after consideration of such factors as their current holdings, availability of cash for investment and the size of their investments generally. A particular security may be bought or sold for only one client or in different amounts and at different times for more than one but less than all clients. Likewise, because clients of the Advisor and their affiliates may have differing investment strategies, a particular security may be bought for one or more clients when one or more other clients are selling the security. The investment results achieved for the Fund may differ from the results achieved for other clients of the Advisor and their affiliates. In addition, purchases or sales of the same security may be made for two or more clients on the same day. In such event, such transactions will be allocated among the clients in a manner believed by the Advisor and their affiliates to be most equitable to each client, generally utilizing a pro rata allocation methodology. In some cases, the allocation procedure could potentially have an adverse effect or positive effect on the price or amount of the securities purchased or sold by the Fund. Purchase and sale orders for the Fund may be combined with those of other clients of the Advisor and their affiliates in the interest of achieving the most favorable net results to the Fund and the other clients.

 

·To the extent that a portfolio manager has responsibilities for managing multiple client accounts, a portfolio manager will need to divide time and attention among relevant accounts. The Advisor and their affiliates attempt to minimize these conflicts by aligning its portfolio management teams by investment strategy and by employing similar investment models across multiple client accounts.
·In some cases, an apparent conflict may arise where the Advisor has an incentive, such as a performance-based fee, in managing one account and not with respect to other accounts it manages. The Advisor and its affiliates will not determine allocations based on whether it receives a performance-based fee from the client. Additionally, the Advisor has in place supervisory oversight processes to periodically monitor performance deviations for accounts with like strategies.
·The Advisor and its affiliates and the investment team of each Fund may manage other mutual funds and separate accounts on a long only or a long-short basis. The simultaneous management of long and short portfolios creates potential conflicts of interest including the risk that short sale activity could adversely affect the market value of the long positions (and vice versa), the risk arising from sequential orders in long and short positions, and the risks associated with receiving opposing orders at the same time. The Advisor has adopted procedures that it believes are reasonably designed to mitigate these and other potential conflicts of interest. Included in these procedures are specific guidelines developed to provide fair and equitable treatment for all clients whose accounts are managed by each Fund’s portfolio management team. The Advisor and the portfolio management team have established monitoring procedures, a protocol for supervisory reviews, as well as compliance oversight to ensure that potential conflicts of interest relating to this type of activity are properly addressed.

 

The Advisor is owned by the DWS Group, a multinational global financial services firm that is a majority owned subsidiary of Deutsche Bank AG. Therefore, the Advisor is affiliated with a variety of entities that provide, and/or engage in commercial banking, insurance, brokerage, investment banking, financial advisory, broker-dealer activities (including sales and trading), hedge funds, real estate and private equity investing, in addition to the provision of investment management services to institutional and individual investors. Since Deutsche Bank AG, its affiliates, directors, officers and employees (the “Firm”) are engaged in businesses and have interests in addition to managing asset management accounts, such wide ranging activities involve real, potential or apparent conflicts of interest. These interests and activities include potential advisory, transactional and financial activities and other interests in securities and companies that may be directly or indirectly purchased or sold by the Firm for its clients’ advisory accounts. The Advisor may take investment positions in securities in which other clients or related persons within the Firm have different investment positions. There may be instances in which the Advisor and its affiliates are purchasing or selling for their client accounts, or pursuing an outcome in the context of a workout or restructuring with respect to, securities in which the Firm is undertaking the same or differing strategy in other businesses or other client accounts. These are considerations of which advisory clients should be aware and which will cause conflicts that could be to the disadvantage of the Advisor and its affiliate’s advisory clients, including the Fund. The Advisor has instituted business and compliance policies, procedures and disclosures that are designed to identify, monitor and mitigate conflicts of interest and, as appropriate, to report them to a Fund’s Board.

 

   
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 0  $                        -    0 n/a
February 1 through February 29 0  $                        -    0 n/a
March 1 through March 31 0  $                        -    0 n/a
April 1 through April 30 0  $                        -    0 n/a
May 1 through May 31 0  $                        -    0 n/a
June 1 through June 30 0  $                        -    0 n/a
         
Total 0  $                        -    0  
           
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.
         
On July 25, 2025, 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, 2025 through July 31, 2026. The Fund did not repurchase shares between December 1, 2024 and June 30, 2025.
 
Repurchases will be made when the Fund’s shares trade at a discount to net asset value and such purchases are deemed to be in the best interests of the Fund.

 

   
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: 8/29/2025

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

By:

/s/Hepsen Uzcan

Hepsen Uzcan

Principal Executive Officer

   
Date: 8/29/2025
   
   
   
By:

/s/Diane Kenneally

Diane Kenneally

Principal Financial Officer

   
Date: 8/29/2025