EFTA01459023.pdf

'cc Mee pouilient rec:e. The ee.14CluS lenvirtmere eerie hghts Assee•dies pertInctives Americas b, ra31.6 1441torencuon Commodities Alternatives 1.0% Portfolio 10.e% Equities Our asset-class allocation in a balanced t0^3 28 portfolio _2o% Traditional asset classes Within the core part of our balanced portfolio, we cover traditional liquid assets such as equities, fixed income and commodities. The chart shows how we would currently design a balanced portfolio, including alternative asset classes.' Fixed income Equities siinastrxt weight II Equities Equities have recovered from their end-September lows. Further Developed markets 400% modest gains are possible although periods of volatility are likely. United Suites 26.5% A strong U.S. dollar could however prove a headwind for U.S. Europe 12.0% equities, whore valuations are already quite high. As a result we have a regional preference for European and Japanese equities, Japan 5.6% despite continuing concerns about the impact of slower Chinese 2.0% Pacific ex Japan growth. Earnings expectations for emerging-market equities still need to be revised down to more realistic levels. Within Emerging Markets 4.0% emerging-market equities, we continue to prefer Asia ex Japan Asia ex Japan 3.0% over Latin America Latin America 1.0% Fixed income a Fixed income Central-bank-policy divergence will remain very important, IN credit 2.5% through its impact both on yields and exchange rates. Even alter Sovereigns 31.6% the Fed rate hike, we believe U.S Treasury yields will increase Emerging markets 2.0% only modestly but the differential between them and core a Eurozone government bonds will remain high. U.S investment- Cash 3 0% grade debt may appear to offer an interesting risk-return trade- Commodities off, particularly for non-U. S. investors hoping to benefit from Commodities 1.0% U.S.-dollar appreciation. Investor attitudes to U.S. high-yield debt will depend on default-rate expectations, with sure high- Alternatives yield perhaps seen as offering lower potential rewards but also Alternatives 10.0% less risk. a Commodities Oil prices have fallen back recently towards their summer lows Sources'. Regional Investment Committee (RIC), and we believe that any recovery is likely to be slow and modest. Deutsche Asset & Wealth Management Investment Despite evidence of falling U.S. production, the global oil market GmbH, Deutsche Bank Trust Company Americas; still appears to be in oversupply. A Fed rate hike is likely to create as of 11/16/2015. headwinds for the gold price and any price gains as a result of This allocation may not be suitable for all investors. geopolitical developments are likely to be temporary. U.S: strength is also expected to create further difficulties for oil, gold Past performance is not indicative of future returns. and other commodity prices. For these reasons we stay cautious No assurance can be given that any forecast, investment on commodities as an asset class. objectives and/or expected returns will be achieved. Allocations are subject to change without notice. Forecasts are based on assumptions, estimates, Alternative investments are dealt with separately in the opinions and hypothetical models that may prove to be next chapter. Alternatives aro not suitable for all clients. incorrect. :<® rat,— co V0.4,14ax0c4a.E.100, 1Ormnito 2015 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0119223 CONFIDENTIAL SDNY_GM_00265407 EFTA01459023