EFTA01459671.pdf

Global Inflation Germination, Examination & Protection The A, B and Cs of Mall REITs* Under-Owned by Investors 115 1 110 1 REIT Weighting 105 Estimated Category Underweight 100 Mutual Funds Benchmark 4 951 90 Mid-Cap Growth 1.2% 1.6% $1 billion 26% 85 I difference Small Growth 1.9% 2.7% $1 billion 80 I Mid-Cap Blend 4.7% 6.8% $5 billion 75 Small Blend 5.9% 8.6% S6 billion 70 -.- Small Value 6.6% 14.6% $8 billion • Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Large Growth 0.6% 1.4% $10 billion A Average B/C Average Mid-Cap Value 5.3% 12.5% $16 billion Large Value 1.5% 4.1% $23 billion Footnotes. Data as of December 31. 2015. 'See A. B, C explanation on final page. Source. FactSet: Deutsche Bank Wealth Management. Large Blend 1.4% 2.8% $25 billion Selectivity Important Selectivity is important when investing in REITs. For 50% -I 2015 Total Return example, A class mall REITS outperformed B/C class by -26% in 2015. In addition, self storage rose —40% while the broad REIT Index was up only —3% in 2015. The Raymond James REIT team produced the above 2 estimates showing how underweight broader equity cc cc mutual fund managers are to REITs relative to their 1 .2 a respective benchmarks. The $95 billion estimate equates to over 10% of the REIT Index market capitalization. Footnotes: Data as of December 31. 2015 FT.SEiNAREtT Equity Indices. Footnotes. Time period As of June 30, 2015 Source: FactSet, Deutsche Bank Wealth Management Source- Deutsche Bank Wlealth Management Dow jones, R•e,vrnond arrleS, S&P Deutsche Bank Wealth Mon Bement 14 CONFIDENTIAL — PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0 120275 CONFIDENTIAL SDNY_GM_00266459 EFTA01459671