PORTFOLIO MANAGEMENT

The Fund is actively managed by DWS Investment GmbH (DWS, the Investment Manager), with guidance from the Fund’s Investment Committee. The Investment Manager has been given full discretion in the investment and reinvestment of the assets of each Fund, provided that it complies with the Fund's investment objective, policies and restrictions in exercising that discretion.  The Fund's asset allocation shall be determined solely by the Investment Manager.  Accordingly, the exposure of the Fund to individual issuers, instruments or markets shall be determined from time to time solely by the Investment Manager.  The investment process to be adopted by the Investment Manager will be influenced by the prevailing global macro-economic outlook.  The Investment Manager considers it possible to deliver consistent positive returns from a portfolio comprised largely of the debt securities of Central American countries (with the balance in those countries that have a relationship with CABEI in South America, the Caribbean and in Mexico) by adopting a focused, active top down macro-economic process. The Investment Manager places a strong emphasis on assessing top down fundamental factors affecting debt markets, such as current geo-political issues, inflation, economic growth, interest rates, employment, budget imbalances, supply/demand and bond issuance. 

The Investment Committee is responsible for making recommendations to the Investment Manager concerning geographic asset allocation and assessment of risks in the Central American and other financial markets and financial instruments for investment by the Fund. The Committee consists of four members, two from the Investment Manager and two from the Promoter.

INVESTMENT OBJECTIVE

The Fund's objective is to generate a high real rate of return for investors by investing primarily in debt securities of issuers located in Central America.  The Fund seeks to achieve this objective by investing primarily in a diversified portfolio of fixed and floating rate securities issued by sovereign issuers, their agents and instrumentalities, corporate issuers, supranational issuers, quasi-governmental issuers, and any other issuer deemed fit for investment by the Investment Manager.  With the exception of permitted investments in unlisted securities or in units of open-ended collective schemes, investment will be restricted to those stock exchanges and markets (Regulated Markets) listed in the Prospectus of the Fund.

Subject to investment restrictions identified in the Prospectus of the Fund, there will be no limit to the amount or proportion invested in the issuers of any one country and there will be no sectoral bias.  The Fund will generally be diversified by country, currency and issuer but may hold concentrated positions in currencies, countries and issuers from time to time.   In addition, there is no restriction with respect to the currency of denomination of any of the securities in which the Fund may invest. 

The Fund may invest more than 30% of its Net Asset Value in securities which are below investment grade and may invest more than 20% of its Net Asset Value in emerging markets and accordingly investment in the Portfolio should not constitute a substantial portion of an investor's investment portfolio and may not be an appropriate for all investors. Investors should also be aware of the potential for high volatility within the Fund.

The Fund will invest in debt securities of varying maturities which may be investment grade or below investment grade or which may not be rated. Rated securities will typically have a rating of B- or better (Fitch or S&P) or B3 or better (Moody's) at the time of acquisition by the Portfolio. Any investment in unrated securities will be confined to securities which, in the opinion of the Investment Manager, are of comparable quality to investment grade securities at the time of acquisition by the Portfolio.