EFTA01386137.pdf

Important notes The asset allocations described herein are formulated by the Regional Investment Committee within Wealth Management (RIC) and may utilize the following asset class components: U.S. large cap equity. U.S. small cap equity, Japan equity, Europe equity. Pacific ex-Japan equity. emerging markets eqUity. U.S. fixed income, U.S. high-yield bonds. international bonds, emerging market bonds, municipal bonds. Treasury Inflation Protected Securities, hedge funds. Real Estate Investment Trusts, commodities. and cash. RIC currently recognizes four basic investment strategies: Income. Growth & Income. Growth, and Maximum Growth. The strategy selected is based upon the individual investor's objectives and risk tolerance. Your selected portfolio will determine the specific allocation to the asset classes represented by the vehicles described herein. Please note returns for the large cap equity portion are represented by the Quality Growth Composite. Implementation vehicles and asset allocations are determined by the WM Regional Investment Committee (RIC) and are change subject at their discretion. Results presented herein do not represent the results of actual trading using client assets. The returns shown in this document are model returns and do not reflect Deutsche Bank management fees or other expenses that may be incurred in the actual management of an account. If such fees and expenses were deducted, the results would be lower. Please be advised of the limitations inherent in using model results. Accounts managed according to the Model may perform differently over the same time period depending on the size of the account. restrictions, the amount of the transaction and related costs, the inception date of the account and other factors. Actual clients may experience returns that are more or less than those of the Model. These model returns do not reflect the impact that material economic factors may have had on our decision-making. Model returns are not indicative of future results: there is always the potential for loss as well as for profit. These returns should not be considered indicative of the skill of the advisor. The CIO Strategy model portfolios commenced on 111/05. The model returns reflected herein were achieved by calculating monthly weighted-average returns using actual tactical allocations and vehicles beginning 1/01/05. The model returns presented are used to portray what the CIO Strategies performance would have been during the period if client assets had been invested in these CIO Strategies securities recommendations. Deutsche Bank will continue to employ tactical strategy allocation and rebalancing techniques and therefore the portfolio allocation will change dynamically as market conditions warrant. Please refer to the CIO Strategies marketing information for a description of the methodology used to select investments. The standard fee schedule generally applied to accounts invested in this strategy is as follows: 1.20% on the first $2 million: 0.65% on the next $3 million: 0.60% on the next $5 million: and 0.45% on the balance. Actual investment advisory fees incurred by clients may vary. Blended benchmarks are comprised of indices representing the broad asset classes utilized by the Regional Investment Committee. Blended benchmark returns are calculated and rebalanced monthly. A current list of the allocation weights and components in the blended benchmark can be found below. A complete list of historical allocation weights and components is available upon request. Getch more Maximum &rtiTh Gate.Oars et-ittelier AR-coats Alctaiori U.S. Large Cap Equity S&P 500 Index 150% 235% 330% 420% U S Sinai Cap Equity Russel 2000 Index 20% 2.5% 35% 4.0% Wotan Etsity MSCI Europe Index (net of Atoning tares) 75% 115% t5.0% 20.0% Japan Equity MSCI Japan Index (net of nithokling taxes) 25% 3.0% 4.5% 5.5% Pa:fic ex-Japan Equity MSCI Pacific Free ex-Japan Index (net of OlhcicIng taxes) 1.5% 25% 3.0% 3.5% Emaging Market Equity MSC' Emerging Markets Index (net of nitticking lama) 4.0% 6.0% 60% 9.5% klunktial Bends Barclays MunktelSbabIntermedate Index 50.5% 320% 16.0% U.S. High Yield Bonds Menill LsicNB0A ligh Yield Master II lobe 20% 2.0% 20% 2.5% Internatnal Bonds Cidgroup tihedged Nce•U.S. Wald Gat Scud Index TreasuryHaim Protected Securiies Bard:* U.S. TIPS Index 20% 200% 2.00% Emerging Make* Dett JPMagan GBI Emerring Markets Index • Unhedged 20% 2.5% 2.00% 2.5% Hedge Funds Ifni Fund of Funds Index 7.0% 8.5% 7.0% 6.0% Commotbas COD Mended Commcdies Index 2.4% 200% 2.00% 2.50% Cash nAcceyNet Maley Funds (AI) Trot-Free Average 200% 200% 200% 2.00% Deutsche Asset ,f zah Ma nage 11 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0087701 CONFIDENTIAL SDNY_GM_00233885 EFTA01386137