DWS Infrastruktur Europa

Fund commentary

Investment rationale

DWS Infrastruktur Europa is an open-ended infrastructure fund investing in unlisted European infrastructure projects. The displayed AC class (DE000DWSE213) has a minimum initial investment of EUR 25 million; the manager’s EUR 50 access illustration concerns retail access through the RC class. The fund targets regular income, an attractive risk-adjusted return and a stable annual distribution, with a recommended holding period of 5 years and a statutory minimum holding period of 24 months. In the PRIIP document, the AC share class is classified in risk class 3 on a 1-to-7 scale, indicating medium-low risk. Based on its focus on operating infrastructure assets, long-term contractual cash flows and portfolio diversification characteristics, the fund is positioned as a distinct real-assets allocation within a medium- to long-term portfolio for investors who can bear a partial or total loss of capital and have advanced knowledge and/or experience.

Investment strategy

The fund is actively managed and is not managed with reference to a benchmark. Its investment objective is to generate regular income, an attractive risk-adjusted return and a stable annual distribution through investments in infrastructure project companies, potentially with an admixture of real estate. Regionally, investments may be made at selected locations in EU and EEA member states and, very selectively, in European countries outside the EU/EEA; the portfolio at 30 June 2026 focused on operating solar and wind projects in Germany, Spain, Sweden and Finland. Sector-wise, the documents state a focus on renewable energy, especially hydropower, wind, solar, geothermal and biomass, while the broader infrastructure opportunity set also includes energy transmission and storage, transport and logistics, digital infrastructure, utilities and social infrastructure; borrowings of up to 30% of the market value of directly held real estate plus short-term borrowings up to 10% of fund assets are permitted, and some borrowing may also be used at project-company level. The fund distributes annually, the fund currency is EUR, and units can generally be redeemed only after a 24-month minimum holding period and with 12 months' notice, with two redemption dates per calendar year.

Investment philosophy

• The investment universe is European infrastructure project companies, with the June 2026 portfolio focused on assets already in operation and a sector emphasis on renewable energy projects.

• DWS states that it applies a highly selective screening process, with only about 5% of the projects analysed annually reaching the final round.

• Portfolio cash-flow quality is anchored in fixed-price or contracted revenues, including power purchase agreements, feed-in tariffs under the Renewable Energy Sources Act (EEG), and contracts with the public sector.

• As of 30 June 2026, the fund had seven investments across four countries, with portfolio exposure shown as 40.0% solar power, 35.0% wind energy and 25.0% liquidity, and around 330 MW of installed power.

• Fund management is continuously assessing further investments in battery storage, transport, digital infrastructure and social infrastructure, while the documented framework also includes minimum holding periods, notice periods and stated borrowing limits.

Management team

The named fund manager is Dr. Peter Brodehser. In the report he is identified specifically as Fund manager of DWS Infrastruktur Europa and provides the manager commentary marking the fund's three-year milestone.

The asset manager

The fund is launched and managed by DWS Grundbesitz GmbH, which is the capital management company and a member of the DWS Group. DWS is the brand under which DWS Group GmbH & Co. KGaA and its subsidiaries operate their business. DWS Grundbesitz GmbH is based at Mainzer Landstraße 11–17, 60329 Frankfurt am Main, Germany. The fund overview states assets under management of EUR 501.3 million for DWS Infrastruktur Europa as of 30 June 2026.

Performance analysis

Source: manager factsheet dated 30 June 2026. At that date, the portfolio was centered on operating solar and wind assets in Germany, Spain, Sweden and Finland, and the fund notes that the combination of both technologies creates a more balanced electricity generation profile because their production patterns complement each other across times of day and seasons. The portfolio was focused on the energy sector, while the management team was evaluating additional opportunities in battery storage, transport, digital infrastructure and social infrastructure. The stated portfolio objective is to maintain a balanced combination of return potential, risk management and sustainable income generation.

Strengths

The fund's distinguishing feature is its open-ended structure giving investors access to unlisted European infrastructure projects with a minimum initial investment of EUR 25 million for the displayed AC class. The retail RC class has a one-share minimum and is the route associated with the manager’s EUR 50 access illustration. At 30 June 2026, its portfolio was concentrated in operating renewable-energy infrastructure with contracted or regulated revenue sources such as PPAs and EEG feed-in tariffs, which differentiates it from listed infrastructure strategies. The selection process is described as highly selective, with only around 5% of analysed projects reaching the final round. The fund also combines this private-markets exposure with regular annual distributions and a meaningful liquidity allocation of 25.0% at 30 June 2026.

Risks

The PRIIP document assigns the AC share class a summary risk indicator of 3 out of 7, described as medium-low risk, assuming a 5-year holding period. The documents identify dependence on infrastructure market developments, valuation risk, interest-rate risk, exchange-rate risk and risks from currency hedging transactions as drivers of possible declines in unit value. Liquidity risk is significant because units are subject to a 24-month minimum holding period and a 12-month notice period, with only two redemption dates per calendar year, and the management company may suspend redemptions or limit them in exceptional circumstances. Additional named risks include risks arising from investments in infrastructure project companies, credit risk, default risk, restricted availability/special price change risk, risks from direct real-estate investments where used, and potential depositor loss exposure if cash held with the custodian or other banks is not fully covered by deposit protection schemes.