RiskMetrics Group Recommends Vote 'AGAINST' DWS RREEF Real Estate Fund, Inc. Liquidation Proposal
11 5월 2009 - 9:30PM
PR Newswire (US)
BOULDER, Colo., May 11 /PRNewswire/ -- Source: The Susan L. Ciciora
Trust -- RiskMetrics Group, the world's largest independent proxy
advisory firm, recommends that holders of DWS RREEF Real Estate
Fund, Inc. (NYSE:SRQ) vote "AGAINST" the liquidation proposal (Item
1) at the upcoming special meeting of stockholders to be held May
20, 2009. The recommendation to vote "Against" SRQ's liquidation
proposal was provided by RiskMetrics Group's Proxy Advisory
Services (formerly Institutional Shareholder Services, or ISS), the
global industry leader in providing comprehensive proxy research to
some of the world's largest and most important financial
institutions. RiskMetrics Group covers over 40,000 stockholder
meetings every year and issues recommendations for stockholders on
voting their proxies for various management proposals. In their
review, RiskMetrics concluded that "In view of Horejsi's superior
management of DNY, a similar closed-end real estate fund, RMG
believes that the Trust through its affiliation with Horejsi may be
able to effectuate change that is critical to improving the
performance of the Fund, rather than liquidating the Fund during
poor market conditions. What is more, shareholders would have the
opportunity to approve the election of the Trust's board members
and appointment of Horejsi as investment manager of the Fund at
subsequent shareholder meetings. Given that the Fund's NAV has
declined substantially in the last one year, which is reflected in
its one-star Morningstar ranking, the downside risk of not
supporting the liquidation proposal seems limited. Moreover,
dissidents stated intention of conducting a proxy contest and
appointing Horejsi as the investment manager, who has a proven
track record at DNY, provides a viable alternative to the
liquidation proposal. As such, RMG does not believe the Fund's
liquidation proposal warrants shareholder support. Vote AGAINST
Item 1."* Stewart R. Horejsi, representative for the Susan L.
Ciciora Trust which is engaged in a proxy fight with SRQ against
their liquidation proposal, stated: "This recommendation by
RiskMetrics Group vindicates our position that SRQ's liquidation
proposal is not in the best interests of stockholders. With this
recommendation we are encouraged that stockholders will finally be
able to assert control over their investment in SRQ." Mr. Horejsi
added: "We believe that this recommendation sends a strong signal
to SRQ's board of directors that their management decisions to date
have not made sense; the Trust has received much support from
fellow stockholders against the liquidation proposal and we believe
that the board of directors should initiate a meaningful dialogue
with the Trust." The Trust is the largest stockholder of SRQ,
owning 16.5% of the outstanding shares of SRQ. The Trust has been
an active and vocal investor in the Fund and, on February 5, 2009,
sent a letter to SRQ and its board of directors proposing, among
other things, termination of SRQ's investment advisers, a new slate
of directors, and better corporate governance standards and other
ideas to enhance stockholder value. Copies of the letters were
filed with the Securities and Exchange Commission and can be viewed
on their website at http://www.sec.gov/. No meaningful response was
provided by the SRQ board of directors and, given that the board
has very little incentive to manage the Fund due to its members'
lack of any ownership, the Trust decided that it should bring the
substantial experience and skill of its affiliated registered
investment advisers to the table and offer a better alternative to
SRQ's stockholders. *Permission to use quotation neither sought nor
obtained. DATASOURCE: The Susan L. Ciciora Trust CONTACT: Joel L.
Terwilliger of The Susan L. Ciciora Trust, +1-303-442-2156
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