Criticizes Board’s Failure to Act
Decisively in Light of Stock’s Recent Price
Decline and Increase in Discount to Net Asset Value
Urges Shareholders to Vote for Western’s
Five Highly Qualified Nominees
Western Investment announced today that it has delivered a letter to the
shareholders of DWS Global Commodities Stock Fund, Inc. (NYSE:GCS) in
which it urges shareholders not to be misled by recent public statements
from GCS. The investment manager of GCS is Deutsche Investment
Management Americas Inc., an indirect, wholly owned subsidiary of
Deutsche Bank AG (NYSE: DB).
In the letter Western sets the record straight regarding a number of
self-serving and misleading attacks made by GCS, including the alignment
of Western’s interests with shareholders, GCS’s
abysmal price performance, the $200,000 in annual fees collected by
members of the Board for their services on other funds managed by
Deutsche Investment Management and Western’s
long and proven history of increasing value for shareholders. Western
has nominated Arthur D. Lipson, William J. Roberts, Gary G. Schlarbaum,
Robert A. Wood and Matthew S. Crouse for election at GCS’s
annual meeting, to be held at the New York Marriott East Side, 525
Lexington Avenue, New York, New York 10017, on Monday, October 13, 2008,
at 10:30 a.m. Eastern time.
The full text of the letter follows:
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GCS PRICE PLUMMETS!
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THIS MAY BE YOUR LAST CHANCE TO PROTECT YOUR INVESTMENT!
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VOTE THE GOLD PROXY TODAY!
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Dear Fellow Shareholder:
Western Investment and its affiliates (“Western”)
are the largest shareholders of DWS Global Commodities Stock Fund, Inc.
(the “Fund”). We
are seeking your support to elect our slate of highly qualified and
experienced nominees to the Board of Directors of the Fund. We urge
you to vote your shares today – by following
the instructions for telephonic or internet voting on the enclosed GOLD
proxy card – to elect directors who will be a
true voice for shareholders in the Fund’s
boardroom. Fund shareholders deserve directors who are focused on
making the full value of the Fund’s shares
readily available. You deserve no less.
Since the Fund’s inception, the market has
valued your assets as low as 82 cents on the dollar. This Fund’s
discount has often placed it in the bottom 1% of all publicly traded
closed-end funds. How can the Board tolerate this terrible result? The
Fund has conducted six mandated 5% tender offers, as required in the Fund’s
offering documents because of the Fund’s
abysmal discount to net asset value (“NAV”).
Each time a substantial majority of shareholders have unsuccessfully
tried to sell their shares into the offer. This Board is ignoring
shareholders’ clear desire to sell their
shares at net asset value without being penalized by the Fund’s
significant discount to NAV.
Do not be confused by the Board’s
self-serving and misleading attacks on Western and its nominees.
Consider the facts:
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Western is the Fund’s largest investor –
as of the record date we held over 2.7 million shares, approximately
14.5% of the Fund’s outstanding shares. We
have one goal – to correct the Fund’s
fundamental flaws so that investors receive the full value for their
investment in the Fund. Our interests are aligned with yours –
Western benefits only if all shareholders benefit.
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The Fund has lost nearly half of its value over the past few months.
On May 20, 2008, the Fund’s net asset value
was $23.46 per share. On October 2, 2008, the stock traded as low
as $11.61 per share. Do not believe the Board’s
misleading claims on performance – since
the Fund’s inception, a shareholder’s
true price performance has trailed the Fund’s
self-selected blended benchmark index by over 4.4%, annualized.
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Members of this Board collect on average over $200,000 each in
aggregate annual fees for their service on at least 133 DWS boards. A
DWS subsidiary, Deutsche Investment Management Americas Inc., took in
excess of $2 million in fees from you last year for its service as the
Fund’s investment manager –
fees that are based on assets under management. Ask yourself, in
light of the fees collected by members of the Board and Deutsche
Investment Management, what incentive does this Board have to make
decisions that would reduce assets under management?
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As of October 1, 2008, the Fund’s NAV
discount was over 18%. This discount marks an all-time high. Western
has a long and proven history of successfully increasing value for
shareholders. You can elect directors who will work to reduce the NAV
discount.
Western has suggested a number of viable alternatives for addressing the
Fund’s NAV discount. We believe working to
reduce this steep and persistent NAV discount should be the number one
priority on the Board’s agenda. Selling
shareholders should not be forced to accept 82 cents on the dollar for
the assets their shares represent. That is why we have nominated
five highly qualified nominees who will work with the other members of
the Board to seriously address the NAV discount. We are asking you to
vote the GOLD proxy at the October 13th
Annual Meeting to see that the interests of all Fund shareholders are
represented in the boardroom. Give yourselves true representation in
the Boardroom. Vote your shares today on the GOLD proxy.
Thank you for your support.
Arthur D. Lipson
Western Investment LLC
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IF YOU HAVE ALREADY RETURNED A WHITE PROXY TO THE FUND'S
MANAGEMENT, EITHER DIRECTLY OR OVER THE PHONE OR INTERNET,
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YOU HAVE EVERY RIGHT TO
CHANGE YOUR VOTE.
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IF YOU HAVE ANY QUESTIONS ABOUT
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HOW TO VOTE YOUR GOLD WESTERN INVESTMENT PROXY, PLEASE CONTACT
THE FIRM ASSISTING US IN THIS SOLICITATION:
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INNISFREE M&A INCORPORATED
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TOLL-FREE AT: (877) 687-1873
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BANKS AND BROKERS PLEASE CALL COLLECT:
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212-750-5833
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YOU MAY ALSO CONTACT WESTERN INVESTMENT VIA EMAIL AT
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info@fixmyfund.com
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Innisfree M&A Incorporated
Michael Brinn, 212-750-8253
info@fixmyfund.com