NEW YORK, July 29, 2016 /PRNewswire/ -- Western
Investment LLC ("Western Investment"), which together with certain
affiliates and other members of its group, beneficially owns over
5% of the outstanding shares of common stock of each of Deutsche
Multi-Market Income Trust (NYSE: KMM) ("KMM") and Deutsche
Strategic Income Trust (NYSE: KST) ("KST," and together with KMM,
the "Deutsche Funds"), commented today on the recent financial
issues that have been plaguing Deutsch Bank AG ("Deutsche Bank"),
the parent of Deutsche Investment Management Americas, Inc.
("DIM"), the Investment Manager of the Deutsche Funds.
According to Bloomberg and other news sources, Deutsche Bank,
at one time a leading global bank, is suffering
financially. Recent reports indicate that Deutsche Bank's
second quarter results showed that net income fell to almost
zero. Deutsche Bank is in the midst of a major restructuring
and news sources are suggesting that thousands more jobs may need
to be cut. On top of this, Deutsche Bank's stock price has
fallen precipitously and its discount to book value is
the steepest in at least 15 years. This comes on the
heels of reports from BBC News earlier this month that the
International Monetary Fund (IMF) thinks Deutsche Bank is the
riskiest of the big banks, highlighting its poor capital
ratio. Deutsche Bank has been engaging in significant cost
cutting as part of its restructuring efforts. Additionally,
CEO John Cryan, in a letter
indicated that "If this weak economic environment persists, we will
need to be still more ambitious in our restructuring."
Western Investment is concerned that Deutsche Bank's weak
performance may have caused the market to question the bank's
viability, as well as that this cost-cutting may have a severe
adverse impact on DIM's ability to properly manage the Deutsche
Funds. Western Investment believes that the most prudent
action for the boards of trustees of the Deutsche Funds (the
"Boards") to take, consistent with their fiduciary duties, is to
terminate the Deutsche Funds and make liquidating distributions to
shareholders by the end of 2016, consistent with Deutsche High
Income Trust (NYSE: KHI) ("KHI"), which is being terminated, with a
liquidating distribution to be paid to shareholders in 2016.
KHI is a similar DIM-managed closed-end fund. Western
Investment is concerned that the troubles plaguing Deutsche Bank
may lead to a wider discount to net book value and therefore a
destruction of value for the shareholders of the Deutsche
Funds. Western Investment believes that it is incumbent upon
the Boards to take the necessary action to limit this negative
impact by acting now to terminate the Deutsche Funds by 2016 year
end.
The Deutsche Funds earlier this month announced that they would
be terminated by the end of 2018. However, Western Investment urges
the Boards, given the dire situation at Deutsche Bank, to
accelerate the planned termination of the Deutsche Funds so that it
is completed by the end of 2016. Western Investment sees no
reason why shareholders of the Deutsche Funds should not be treated
equivalently to KHI shareholders.
Deutsche Bank's stock closed yesterday at $13.25, a 91.7% decline from its high of
$159.59 in 2007.
CONTACT:
Arthur D. Lipson
Western Investment LLC
(801) 942-7803
CERTAIN INFORMATION CONCERNING THE
PARTICIPANTS
Western Investment ("Western Investment"), together with the
other participants named herein (collectively, the "Western Group")
intends (i) to make a preliminary filing with the Securities and
Exchange Commission (the "SEC") of a proxy statement and an
accompanying proxy card to be used to solicit votes for the
election of its nominees and certain business proposals at the 2016
Annual Meeting of Shareholders (the "KMM Annual Meeting") of
Deutsche Multi-Market Income Trust, a Massachusetts business trust ("KMM") and (ii)
to make a preliminary filing with the SEC of a proxy statement and
an accompanying proxy card to be used to solicit votes for the
election of its nominees and certain business proposals at the 2016
Annual Meeting of Shareholders (the "KST Annual Meeting") of
Deutsche Strategic Income Trust, a Massachusetts business trust ("KST").
The participants in the proxy solicitation at KMM and KST are:
Western Investment Hedged Partners L.P., a Delaware limited partnership ("WIHP"), Western
Investment Total Return Partners L.P., a Delaware limited partnership ("WITRP"),
Western Investment LLC, a Delaware
limited liability company ("WILLC"), Arthur
D. Lipson, Benchmark Plus Institutional Partners, L.L.C., a
Delaware limited liability company
("BPIP"), Benchmark Plus Management, L.L.C., a Delaware limited liability company ("BPM"),
Robert Ferguson, Neil R. Chelo and Matthew S. Crouse.
THE WESTERN GROUP STRONGLY ADVISES ALL SHAREHOLDERS OF KMM AND
KST TO READ THE RESPECTIVE PROXY STATEMENT AND OTHER PROXY
MATERIALS WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION, INCLUDING INFORMATION RELATING TO THE
PARTICIPANTS IN SUCH PROXY SOLICITATION. SUCH PROXY
STATEMENTS AND OTHER PROXY MATERIALS WITH RESPECT TO KMM AND KST,
WHEN FILED, WILL BE AVAILABLE AT NO CHARGE ON THE SEC'S WEB SITE AT
HTTP://WWW.SEC.GOV. IN ADDITION, THE PARTICIPANTS IN THE
SOLICITATION WILL PROVIDE COPIES OF DEFINITIVE PROXY MATERIALS,
WITHOUT CHARGE, UPON REQUEST.
As of the close of business on July 28,
2016, WIHP beneficially owned 591,309 shares of common
stock, $0.01 par value (the "KMM
Common Stock"), of KMM. As of the close of business on
July 28, 2016, WITRP beneficially
owned 403,680 shares of KMM Common Stock. As of the close of
business on July 28, 2016, WILLC
directly owned 900 shares of KMM Common Stock and as the general
partner of WIHP and WITRP may be deemed the beneficial owner of the
(i) 591,309 shares of KMM Common Stock owned by WIHP and (ii)
403,680 shares of KMM Common Stock owned by WITRP. As of the
close of business on July 28, 2016,
Mr. Lipson directly owned 9,713 shares of KMM Common Stock and as
the managing member of WILLC, may be deemed the beneficial owner of
the (i) 900 shares of KMM Common Stock owned by WILLC, (ii) 591,309
shares of KMM Common Stock owned by WIHP and (iii) 403,680 shares
of KMM Common Stock owned by WITRP. As of the close of
business on July 28, 2016, BPIP
beneficially owned 266,223 shares of KMM Common Stock. BPM,
as the managing member of BPIP, may be deemed the beneficial owner
of the 266,223 shares of KMM Common Stock owned by BPIP. Mr.
Ferguson, as a managing member of BPM, may be deemed the beneficial
owner of the 266,223 shares of KMM Common Stock owned by
BPIP. As of the close of business on July 28, 2016, Mr. Chelo, did not beneficially
own any shares of KMM Common Stock. As of the close of
business on July 28, 2016, Mr.
Crouse, did not beneficially own any shares of KMM Common
Stock.
As of the close of business on July 28,
2016, WIHP beneficially owned 106,722 shares of common
stock, $0.01 par value (the "KST
Common Stock"), of KST. As of the close of business on July 28, 2016, WITRP beneficially owned 89,368
shares of KST Common Stock. As of the close of business on
July 28, 2016, WILLC directly owned
900 shares of KST Common Stock and as the general partner of WIHP
and WITRP may be deemed the beneficial owner of the (i) 106,722
shares of KST Common Stock owned by WIHP and (ii) 89,368 shares of
KST Common Stock owned by WITRP. As of the close of business
on July 28, 2016, Mr. Lipson, as the
managing member of WILLC, may be deemed the beneficial owner of the
(i) 900 shares of KST Common Stock owned by WILLC, (ii) 106,722
shares of KST Common Stock owned by WIHP and (iii) 89,368 shares of
KST Common Stock owned by WITRP. As of the close of business
on July 28, 2016, BPIP beneficially
owned 61,427 shares of KST Common Stock. BPM, as the managing
member of BPIP, may be deemed the beneficial owner of the 61,427
shares of KST Common Stock owned by BPIP. Mr. Ferguson, as a
managing member of BPM, may be deemed the beneficial owner of the
61,427 shares of KST Common Stock owned by BPIP. As of the
close of business on July 28, 2016,
Mr. Chelo, did not beneficially own any shares of KST Common
Stock. As of the close of business on July 28, 2016, Mr. Crouse, did not beneficially
own any shares of KST Common Stock.
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SOURCE Western Investment LLC