"Central Europe & Russia Fund (NYSE: CEE) is a closed-end fund that invests in Central and Eastern Europe, Russia, and Turkey," says global investment expert Nick Lanyi.

In his industry-leading High Yield International, the advisors explains, "The fund's diversification, high yield and top-notch management team make it the best high-income play on the region today." Plus, he adds, "Now is a particularly great time to invest in these regions." Indeed, he remains strongly bullish on Russia, rgardless of any concerns expressed by political pundits regarding Russia's elections.

"The fund's largest country allocation (about 50% of assets) actually is to Russia, not Eastern Europe. I consider that a plus, because it gives investors exposure to Eastern Europe's strengths, but with the valuable ballast of an accompanying investment in Russia's natural resources sector.

"Prominent Russian natural resource firms Lukoil, Gazprom, and Norilsk Nickel account for about a quarter of the fund's total assets. With the prices of energy and mining commodities in a long-term uptrend, a large natural resources stake could come in handy in a volatile market.

"CEE is managed by a team at Deutsche Bank, Germany's largest bank and one of the world's most respected
financial institutions. Through its diverse operations, Deutsche Bank is a major financial player in Eastern
Europe, as Germany is the primary financial gateway to the west for Eastern European companies.

"Ralf Oberbannscheidt is the lead portfolio manager; he has worked with Deutsche Bank's asset-management
unit since 1999.

"CEE pays an annual dividend, along with capital-gains distributions. The dividend payout has risen significantly over the past few years. Even so, CEE's regular dividend alone would not qualify the fund as a high-yield investment -- it would result in a yield of only about 2%.

"However, CEE tends to pay very high capital-gains distributions annually -- and they have risen sharply
in the past three years. When a fund's capital-gains distributions are irregular, I don't like to consider
them as part of the dividend yield calculation.

"In this case, it makes sense to do so because they make up the lion's share of CEE's annual payout
and are likely to continue to be hefty in the coming years. Even if CEE's portfolio doesn't continue
to soar, the fund has embedded capital gains that it's likely to take as Obberbannscheidt and his
team rotate the portfolio.

"Based on the current price, the fund's total distribution in 2007 amounts to an incredible 21.1% yield. While
I can't guarantee that the 2008 payout will be quite as large, I'm confident CEE's total distribution
will generate a double-digit yield in 2008 and remain significant going forward.

"CEE is well-positioned to benefit from continued economic growth in Russia and Eastern Europe in the coming years. Russia is extraordinarily rich in natural resources -- oil, natural gas and metals like nickel. It's also a key supplier of these resources to the European market.

"Russian gas accounts for more than 50% of Germany's supply and more than 90% of supply in Hungary. Therefore, Russia benefits from growth across the EU in terms of greater sales of such vital commodities. Of course, Russia is also a key supplier for such commodities into the fast-growing Asian markets.

"Outside of energy and natural resources, one of CEE's largest bets is on financial services. That's part of the reason it has taken a hit in recent weeks, and it could add to volatility going forward as the global credit markets remain embroiled in the U.S. subprime-mortgage fiasco.

"But the recent price declines in these stocks combined with the Federal Reserve's aggressive rate cuts raises my confidence that the Eastern European financial sector's upside potential may be greater than its downside risk at this point. CEE also has major stakes in the region's telecommunications companies, which tend to pay high, dependable yields.

"Meanwhile, the fund also holds roughly 10% of its assets in Turkey. The nation is not yet part of the EU, but it is heading in that direction -- making it a good bet for continued economic stability and increased accounting transparency in the coming years. Turkey's progress in those areas has already been a boon to its stock market, which has soared in recent years.

"As a well-diversified, expertly managed play on Russia and Eastern Europe, with hefty exposure to natural resources, CEE represents a great value after the January stock market swoon. Its huge distribution in 2007 may inflate the apparent yield somewhat, but I expect the 2008 distribution to produce a double-digit yield based on the current price."