Attachment Q.77E

0n June 6, 2005, Robert H. Daniels, an alleged shareholder of the Fund, filed a putative class action complaint on behalf of all Fund shareholders against the Fund and its Directors, in the Circuit Court for Baltimore City, Maryland. This litigation arises out of an attempt in 2005 by a shareholder of the Fund to nominate and elect directors who were not qualified as Directors pursuant to the Fund’s director qualification bylaw, which sets forth certain eligibility requirements for directors, including a requirement of relevant

experience and country knowledge consistent with the Fund’s strategy of investment in German companies.  Mr. Daniels seeks declaratory and injunctive relief, as well as attorneys’ fees, experts’ fees and costs.

On July 12, 2005, the Fund and its Directors removed the case to the United States District Court for the District of Maryland. On August 26, 2005, the Fund and its directors filed a motion to dismiss the complaint on various grounds.  On March 29, 2006, the judge denied the motion to dismiss and litigation moved to the document discovery and deposition stage. On March 21, 2007, the Fund and itsdirectors moved for summary judgment dismissing the action.

On July 23, 2007, the Board of Directors approved theterms of a settlement of the action. The settlement dismissedthe litigation without a change to the bylaws.Pursuant to thesettlement and an agreement with the shareholdergroup that sought to nominatecompeting directorsin 2005 and subsequent years, the Fund would conduct anin-kind tender offer for 20% of the Fund’s outstandingshares of common stock at 96% of netasset value per share.

The Fund’s obligation to conduct the tender offer, as well asthe other terms of the settlement, became effective whenthe final judgment and order was entered by the Court onOctober 15, 2007. The Fund commenced the tender offeron December 21, 2007.