EFTA01458001.pdf

pcdtemis Faro MI' IND Pc iwa itTeoc!, If. !ler i14/1?is Asuslets paspxtios Pmfulo He.X1Wit•Wil 404$ •— Thry EUR investment grade Rides U.S. Treasuries (2..yrmir) • Despite the ECB's quantitative-easing measures. corporates' risk premiums hove widened for a couple of months, due to U.S. Treasuries (10-year) 0 uncertainties over Greece. Premiums should narrow again in U.S. Treasuries (30-year) • .4. line with the receding "Grexit" probability. Another problem could be pent-up issuance although the primary market has U.K. Gilts (10.ywn) • kept cairn of late Eurozonc, periphery • • • 0 Commodities German Blinds 12-year) Otw) State!. German Bunds (10-year) O ti We remain underweight on commodities. Many commodities Japanese government bonds (2-year) • still suffer from stowing Chinese demand, compounding the difficulties associated with expanded production capacities. The Japanese government bonds (10-year) • supply of oil could increase even further after the conclusion of the nuclear deal with Iran which provides for the lifting of economic sanctions. U.S. investment grade U.S. high yiekl The tactical view (one to three months) EUR investment grade' Equity indices: • positive view FUR high yield' • neutral view Asia credit • negative view Fixed income and exchange rates: Emerging.rnadtet credit • .• •The fixed-income sector or the exchange rate is expected to Sewn turd ispeciatuo,, perform) well Covered bonds' •We expect to see a sideways trend •We anticipate a decline in prices in the fixed-income sector or U.S. municipal bonds in the exchange rate U.S. mortgage-backed securities The traffic lights' history is shown in the small graphs. Cur ronac4; A circled traffic light indicates that there is a commentary on EUR vs. USD • la the topic. USD vs. JPY • The strategic view up to June 2016 FUR vs. GBP • la Equity indices, exchange rates and alternative investments: EUR vs. JPY • The avows signal whether we expect to see an upward trend (I), a sideways trend (e) or a downward trend N for the GBP vs. USD • Si particular equity index, exchange rate or alternative asset class Fixed income: For sovereign bonds, it denotes rising yields, -• unchanged 'a no market sovereigns • yields and ti falling yields. For corporates, securitized / Alter native3 ,1111111111$11111111111:111111111111111111111111111111111.11111111111.11111111111 specialties and emerging-market bonds, the arrows depict the option-adjusted spread over U.S. Treasuries, if not stated • differently. Or depicts an expected widening of the spread.. a COMITIOCII0 Os sideways spread trend and N, a spread reduction. Real estate (listed) • The arrows' colors illustrate the return opportunities for Real estate (non-listed) • long-only investors. %it, positive return potential for long-only investors Hedge funds • -.limited return opportunity as well as downside risk Private Equity' • -• lair high downside risk for long-only investors 'as of 7/21/15 Further explanations can be found in the glossary. Past performance is not indicative of future returns. No assurance can be given that any forecast, investment Spread over German Bunds objectives and/or expected returns will be achieved. Allocations 2These traffic-light indicators are only meaningful for existing are subject to change without notice. Forecasts are based on private-equity portfolios assumptions, estimates, opinions and hypothetical models that Source: Deutsche Asset & Wealth Management Investment may prove to be incorrect. GmbH 'ors I Az-Icet*x. eirtic-n ) Awsi t=149:::•••••• 0 a CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0117748 CONFIDENTIAL SDNY_GM_00263932 EFTA01458001