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22 November 2016

US ETF Model Portfolios

North AmericaUnited States

Synthetic Equity & Index Strategy

US ETF ModelPortfolios

Date22 November 2016

Deutsche BankMarkets Research

House View Portfolio - End of YearpositioningHouse View Update as of Nov 18th 2016Readjusting our portfolio allocations by dropping our defensive positioning andembracing a more positive view towards risky assets following US elections.In particular, we favor higher allocation to equities, particularly the US, whilemaintaining some exposure to fixed income via Credit, but away from Rates.In addition, we have also moved completely away from Gold, and added someInflation allocation.

Our HVP is up 20.5% since its launch on Oct 2, 2012, and 5.8% lower since thelast rebalancing on Jun 30, 2016. In the meantime, the equity market (ACWI) andour multi-asset-class benchmark are 35.4% up and 5.3% up since the launch ofour HVP, and 3.2% up and 0.2% down since the last rebal, respectively.

Portfolio Updates and New MembershipWe changed our strategic asset allocation from 45% allotted to equities to70%, from 35% to fixed income to 20%, and from 20% to 10% alternatives viaFX. Within equities, we doubled our allocation to the US (25% to 50%), andmaintained a 20% exposure to Non-US equities including EM as well. In theUS, we reduced Utilities from 10% to 5%, and added 10% to each Banks andBiotech/Pharma, respectively. In fixed income, we exited Rates, maintained IGCredit exposure at 15%, and added 5% to Inflation. In alternatives we fully exitedthe 15% Gold position, and doubled the USD allocation to 10%.

Figure 1: New House View Portfolio*

Direction Type

VTI 0.05% 25% Long Core Equity US Broad

XLU 0.14% 5% Long Satellite Equity US Utilities

KBWB 0.35% 10% Long Satellite Equity US Banks

IBB 0.48% 10% Long Satellite Equity US Biotech/Pharma

VXUS 0.13% 20% Long Core Equity Global ex US

LQD 0.15% 15% Long Core Credit Inv. Grade

TIP 0.20% 5% Long Satellite Inflation US TIPs

UUP 0.80% 10% Long Core FX Long USD

ExposurePosition

WeightAsset

Class

Source: Deutsche Bank. *Target Weights. See Figure 3 for old basket and change details.

Sebastian Mercado, CFA

Strategist

+1-212-250-8690

Deutsche Bank Securities Inc.

Deutsche Bank does and seeks to do business with companies covered in its research reports. Thus, investors should beaware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should considerthis report as only a single factor in making their investment decision. DISCLOSURES AND ANALYST CERTIFICATIONSARE LOCATED IN APPENDIX 1.MCI (P) 057/04/2016.

Distributed on: 22/11/2016 23:09:09 GMT

mailto:[email protected]

22 November 2016


Figure 2: Table of Contents

The House View Porfolio .........................................................................3

House View following US election…………………….. .......................................................3

Portfolio Commentary…………………….. ....................................................... 3

Performance analysis ...................................................................................... 5

Summary of closed & changed portfolio positions ......................................... 7

Product commentary ...................................................................................... 8

Portfolio constituent correlations..................................................................... 10

ETF Standard Comparison. .......................................................................11


22 November 2016


The House View PortfolioHouse View following US election1

That the outcome of the US election was unexpected is an understatement. Fewdared forecast a Trump victory, let alone a Republican sweep. Yet with Trumpheaded to the White House and the Republicans retaining control of both housesof Congress, the US has elected a unified government for the first time since 2008.

Despite criticism of some of Trump’s policies, they could provide a materialboost for growth and, in return, for risk assets, if they are implemented well. Hehas pledged a large fiscal stimulus, ambitious tax cuts and reduced regulation.The fiscal plan would represent the first tangible shift away from the policymix that has prevailed since the crisis -- very accommodative monetary policycompensating for tight fiscal policy -- and that many investors have been hopingfor over the last year.

There is a risk that these policies will not be fully implemented, especially giventhat Trump’s fiscal plans could lead to a larger deficit than Congress will allow.This means that policy uncertainty will prevail for the time being. Moreover, notall of Trump’s proposals may prove positive. The biggest threat to growth is apossible protectionist turn, which could depress global trade and even triggertrade wars.

Markets have so far given the result of Trump's proposals the benefit of the doubt,embracing the potential boost to growth and inflation that could come from ashift in the policy mix. The extent to which this continues will depend on thepolicy signals from the next administration over the coming months. A TrumpPresidency should be positive for the dollar and US equities and should allow forthe continuation of yield curve steepening.

Portfolio Commentary

Following the recent results from the US elections and the potential impact ofthe policies, particularly on the fiscal side, on the economic outlook we havedecided to readjust our portfolio allocations by dropping our defensive positioningand embracing a more positive view towards risky assets. In particular, wefavor higher allocation to equities, particularly the US, while maintaining someexposure to fixed income, but away from rates. In addition, we have also movedcompletely away from gold, and added some Inflation allocation.

1 Taken from "The House View Special: US election a potential game changer" published on 11 Nov 2016by Deutsche Bank Research


22 November 2016


Figure 3: House View Portfolio Change Details

Old New Direction Type

VTI 0.05% 0% 25% Long Core Equity US Broad

USMV 0.15% 15% 0% Long Core Equity US LC Min Vol

XLU 0.14% 10% 5% Long Satellite Equity US Utilities

KBWB 0.35% 0% 10% Long Satellite Equity US Banks

IBB 0.48% 0% 10% Long Satellite Equity US Biotech/Pharma

VXUS 0.13% 0% 20% Long Core Equity Global ex US

EFAV 0.20% 20% 0% Long Core Equity DM Intl

LQD 0.15% 15% 15% Long Core Credit Inv. Grade

TIP 0.20% 0% 5% Long Satellite Inflation US TIPs

IEF 0.15% 20% 0% Long Core Rates Intermediate UST

IAU 0.25% 15% 0% Long Core Comdty Gold

UUP 0.80% 5% 10% Long Core FX Long USD

ExposureWeight Position Asset

Class

Source: Deutsche Bank, Bloomberg Finance LP. Highlighted fields are portfolio updates Red: wgt decrease. Green: wgt increase. Gray: ETF update

More specifically, Equity exposure has been increased to 70% from 45%, FixedIncome allocation has decreased from 35% to 20%, and Alternatives havedecreased from 20% to 10%. Within Equities we doubled the exposure to USequities from 25% to 50%, while we maintained the allocation to Non-US equitiesat 20%, but including some country diversified exposure to EM equities in thenew portfolio. Within US equities, we have adopted a sector bias with a core totalmarket allocation of 25% and satellite sector and industry tilts.

Outside equities, we removed the 20% rates exposure from the portfolio,maintained a 15% Investment Grade credit exposure, and added a 5% allocationto Inflation. Furthermore, we exited the 15% Gold position completely, andincreased the 5% US Dollar allocation to 10%.

US Equity positions: diversify exposure+sector tilts2 We switched the minimum volatility core for a total market diversified core inorder to manifest our increasing appetite for risk. In addition, we also decreasedthe exposure to Utilities, and maintained a 5% exposure to express a positive viewon the sector as a bond substitute alternative. At the same time, we added two10% allocations to Banks and Biotech/Pharma which are expected to benefit fromthe new government policies.

Non-US Equities: cheap access to diversified international exposureWe adopted a diversified approach to international exposure by replacing ourminimum volatility DM position for a market cap weighted allocation acrossmultiple countries and regions in the DM and EM space.

Fixed Income: avoid ratesWe have exited our full rates position on the back of imminent rate hikes anda more likely path for future hikes. At the same time, we have maintained our15% Credit exposure to the IG segment on the back of potential support from aproposed repatriation tax holiday. We have also added a 5% allocation to Inflationon the back of upside pressure driven by growth expectations.

Alternatives: exit gold, add to US DollarWith lower market volatility and two major volatility catalysts (Brexit and USelections) mostly digested and processed by the markets, we see lower safe-

2 More details on US equity sector strategy can be found in "US Equity Insights - Trump: the huge picturefor stocks" published last Fri Nov 18, 2016 by David Bianco


22 November 2016


haven demand for gold going forward and therefore don't see a purpose forit in the portfolio any longer. On the other hand, expected yield curve activitygoing forward supports a strong dollar theme and therefore we have doubled ourportfolio exposure to the greenback to 10%.

Figure 4: Asset Class Allocation

0%

10%

20%

30%

40%

50%

60%

70%

80%

Equity Fixed Income Alternatives

Previous Current

Source: Deutsche Bank

Figure 5: Equity Allocation

0%

10%

20%

30%

40%

50%

60%

US Non-US

Previous Current

Source: Deutsche Bank

Performance Analysis

At a headline level, we compare the performance of our HVP against theperformance of Global2 equities and of a multi-asset-class benchmark. TheGlobal3 equities benchmark is represented by ACWI which tracks the MSCI AllCountry World index, while the multi-asset-class benchmark represents a basketof Global equity (ACWI), US fixed income (BND), and commodity (DBC) exposureswith the following weights: 50%, 30%, and 20%, respectively. Our HVP is up20.5% since its Oct 2012 launch, while ACWI and the multi-assetclass benchmarkhave gained 35.4% and 5.3% during the same period, respectively. The multi assetclass benchmark has been the least volatile with annualized volatility of 8.3%,compared to 10.7% for our HVP and 13.6% for ACWI, since inception.

Figure 6: Portfolio performance since launch

90.0

100.0

110.0

120.0

130.0

140.0

150.0

Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16

No

rmaliz

ed

Le

ve

l

(10

0)

House View Port. ACWI Bnchmk

Source: Deutsche Bank, FactSet, Performance corresponds to Total Returns and it does not include transaction costs

Since the last rebalancing date on Jun 30, 2016, the HVP lost 5.8% vs. a 0.2%loss for the benchmark. Defensive assets sold off strongly, particularly followingthe US election; risk assets, on the other hand, rebounded vigorously. In general,we saw weakness across most of our portfolio which was positioned to face amore volatile environment; DM International equities, Rates, and Gold were themain drags on the House View portfolio removing over 1% each; while the long

3 Since Nov 1, 2013 we have changed the equity benchmark from US Equities (S&P 500 – SPY) to GlobalEquities (MSCI All Country World Index – ACWI). The House View Portfolio is a global multi-asset-classportfolio; therefore a Global equity benchmark is more appropriate than a US-centric one.


22 November 2016


USD position was the only one slightly contributing to the positive side since thelast rebalancing.

Figure 7: Performance by position

-12% -10% -8% -6% -4% -2% 0% 2% 4% 6% 8%

Fixed Income (BND)

Comdty (DBC)

Equity (ACWI)

FX Long USD (UUP)

Gold (IAU)

IG Credit (LQD)

Rates Interm. (IEF)

Eq. DM Intl Min Vol (EFAV)

Eq. US Utilities (XLU)

Eq. US LC Min Vol (USMV)

Performance

Bnchm

rk

Ho

use V

iew

Po

rt.

Source: Deutsche Bank, FactSet. Total Return performance from Jun 30, 2016 to Nov 18, 2016

Figure 8: Performance contribution by position

-1.5% -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0%

Fixed Income (BND)

Comdty (DBC)

Equity (ACWI)

FX Long USD (UUP)

Gold (IAU)

IG Credit (LQD)

Rates Interm. (IEF)

Eq. DM Intl Min Vol (EFAV)

Eq. US Utilities (XLU)

Eq. US LC Min Vol (USMV)

Performance

Contribution

Ho

use V

iew

Po

rt.

Bnchm

rk

Source: Deutsche Bank, FactSet. Total Return performance from Jun 30, 2016 to Nov 18, 2016


22 November 2016


Summary of closed & changed portfolio positions

Figure 9: Details for closed & changed positions (most recent changes on top)

Ticker ExposureOpen

Weight

Close

Weight

Weight

ChangeOPEN CLOSED Exit/Chg Performance

USMV US LC Min Vol 15.0% 0.0% -15.0% 9-Feb-16 18-Nov-16 Full 12.22%

EFAV Equity - DM Intl Min Vol 20.0% 0.0% -20.0% 30-Jun-16 18-Nov-16 Full -7.05%

XLU US Utilities 10.0% 15.0% 5.0% 9-Feb-16 18-Nov-16 Partial 1.82%

IEF Rates - Intermediate UST 20.0% 0.0% -20.0% 9-Feb-16 18-Nov-16 Full -3.22%

IAU Cmdty - Gold 15.0% 0.0% -15.0% 30-Jun-16 18-Nov-16 Full -8.86%

UUP FX - Long USD 5.0% 10.0% 5.0% 9-Feb-16 18-Nov-16 Increase 5.05%

KBWB US Banks 5.0% 0.0% -5.0% 9-Feb-16 30-Jun-16 Full 9.77%

EFAV Equity - DM Intl Min Vol 25.0% 20.0% -5.0% 9-Feb-16 30-Jun-16 Partial 8.77%

IAU Cmdty - Gold 10.0% 15.0% 5.0% 9-Feb-16 30-Jun-16 Increase 11.34%

LQD Credit - Investment Grade 10.0% 15.0% 5.0% 7-Oct-15 30-Jun-16 Increase 7.70%

QQQ Equity - US Large Caps 15.0% 0.0% -15.0% 7-Oct-15 9-Feb-16 Full -8.54%

XLU US Utilities 5.0% 10.0% 5.0% 7-Oct-15 9-Feb-16 Increase 8.26%

DXJ Equity - Japan 15.0% 0.0% -15.0% 29-Jul-14 9-Feb-16 Full -3.04%

DBEU Europe 25.0% 0.0% -25.0% 7-Oct-15 9-Feb-16 Full -13.17%

EPI Equity - India 5.0% 0.0% -5.0% 5-Jan-15 9-Feb-16 Full -19.56%

FXI Equity - China 5.0% 0.0% -5.0% 12-Jun-15 9-Feb-16 Full -39.60%

IEF Rates - Intermediate UST 10.0% 20.0% 10.0% 7-Oct-15 9-Feb-16 Increase 3.35%

UUP FX - Long USD 10.0% 5.0% -5.0% 6-Mar-13 9-Feb-16 Partial 10.85%

QQQ Equity - US Large Caps 20.0% 15.0% -5.0% 12-Jun-15 7-Oct-15 Partial -2.41%

KBWB US Banks 7.5% 0.0% -7.5% 12-Jun-15 7-Oct-15 Full -9.24%

IBB US Biotech/Pharma 5.0% 0.0% -5.0% 12-Jun-15 7-Oct-15 Full -15.41%

XLU US Utilities 2.5% 5.0% 2.5% 12-Jun-15 7-Oct-15 Increase 4.06%

DBEU Europe 20.0% 25.0% 5.0% 12-Jun-15 7-Oct-15 Increase -5.45%

HYG Credit - High Yield 10.0% 0.0% -10.0% 5-Jan-15 7-Oct-15 Full -0.64%

QQQ Equity - US Large Caps 25.0% 20.0% -5.0% 5-Jan-15 12-Jun-15 Partial 7.46%

BBH US Biotech 5.0% 0.0% -5.0% 29-Jul-14 12-Jun-15 Full 35.54%

XRT US Retail 5.0% 0.0% -5.0% 5-Jan-15 12-Jun-15 Full 5.97%

XLU US Utilities 5.0% 2.5% -2.5% 5-Jan-15 12-Jun-15 Partial -8.50%

HEDJ Eurozone 10.0% 0.0% -10.0% 5-Jan-15 12-Jun-15 Full 17.37%

ASHR China 5.0% 0.0% -5.0% 5-Jan-15 12-Jun-15 Full 47.28%

KBWB US Banks 5.0% 7.5% 2.5% 29-Jul-14 12-Jun-15 Increase 13.10%

QQQ Equity - US Large Caps 15.0% 25.0% 10.0% 29-Jul-14 5-Jan-15 Increase 5.64%

EUFN Equity - European Fin. 5.0% 0.0% -5.0% 31-Oct-13 5-Jan-15 Full -9.24%

EWG Equity - Germany 5.0% 0.0% -5.0% 29-Jul-14 5-Jan-15 Full -12.15%

EWP Equity - Spain 5.0% 0.0% -5.0% 29-Jul-14 5-Jan-15 Full -17.51%

EZU Equity - Eurozone 5.0% 0.0% -5.0% 29-Jul-14 5-Jan-15 Full -13.74%

FXI Equity - China 7.5% 0.0% -7.5% 29-Jul-14 5-Jan-15 Full 2.70%

GMF Equity - EM Asia Pacific 5.0% 0.0% -5.0% 29-Jul-14 5-Jan-15 Full -4.19%

EPI Equity - India 7.5% 5.0% -2.5% 29-Jul-14 5-Jan-15 Partial -0.60%

PCY Credit - EM Debt 5.0% 0.0% -5.0% 29-Jul-14 5-Jan-15 Full -2.54%

VTIP Inflation - Short Term TIPs 5.0% 0.0% -5.0% 29-Jul-14 5-Jan-15 Full -2.69%

QDF Equity - US Divs. 15.0% 0.0% -15.0% 14-Feb-14 29-Jul-14 Full 8.66%

QQQ Equity - US Large Caps 20.0% 15.0% -5.0% 14-Feb-14 29-Jul-14 Partial 8.55%

EWG Equity - Germany 10.0% 5.0% -5.0% 14-Feb-14 29-Jul-14 Partial -3.15%

EZU Equity - Eurozone 15.0% 5.0% -10.0% 14-Feb-14 29-Jul-14 Full 0.18%

Source: Deutsche Bank, FactSet. Performance corresponds to Total Returns


22 November 2016


Figure 10: Details for closed & changed positions (cont)

Ticker ExposureOpen

Weight

Close

Weight

Weight

ChangeOPEN CLOSED Exit/Chg Performance

JNK Credit - HY Debt 5.0% 0.0% -5.0% 14-Feb-14 29-Jul-14 Full 2.78%

BKLN Credit - Senior Loans 5.0% 0.0% -5.0% 14-Feb-14 29-Jul-14 Full 1.25%

DXJ Equity - Japan 10.0% 15.0% 5.0% 14-Feb-14 29-Jul-14 Increase 8.64%

FXI Equity - China 5.0% 7.5% 2.5% 14-Feb-14 29-Jul-14 Increase 16.13%

JNK Credit - HY Debt 10.0% 5.0% -5.0% 3-May-13 14-Feb-14 Partial 2.64%

MCHI Equity - China 7.5% 0.0% -7.5% 28-Nov-12 14-Feb-14 Full 3.94%

IVV Equity - US Large Caps 20.0% 0.0% -20.0% 7-Feb-13 14-Feb-14 Full 24.40%

VGT Equity - US Technology 5.0% 0.0% -5.0% 3-May-13 14-Feb-14 Full 23.25%

BKLN Credit - Senior Loans 10.0% 5.0% -5.0% 7-Feb-13 14-Feb-14 Partial 4.03%

VIG Equity - US Divs. 20.0% 0.0% -20.0% 3-May-13 14-Feb-14 Full 10.68%

DXJ Equity - Japan 7.5% 10.0% 2.5% 3-May-13 14-Feb-14 Increase -0.32%

XLF Equity - US Financials 5.0% 0.0% -5.0% 3-May-13 31-Oct-13 Full 9.97%

IVV Equity - US Large Caps 25.0% 15.0% -10.0% 7-Feb-13 13-Aug-13 Partial 13.49%

MCHI Equity - China 10.0% 7.5% -2.5% 28-Nov-12 3-May-13 Partial 3.00%

SDY Equity - US Divs. 25.0% 0.0% -25.0% 7-Feb-13 3-May-13 Full 9.71%

HYS Credit - High Yield 10.0% 0.0% -10.0% 7-Feb-13 3-May-13 Full 2.98%

IVV Equity - US Large Caps 35.0% 25.0% -10.0% 7-Feb-13 3-May-13 Partial 7.33%

IAU Cmdty - Gold 5.0% 0.0% -5.0% 1-Oct-12 6-Mar-13 Full -10.93%

FXE FX - EURUSD 5.0% 0.0% -5.0% 1-Oct-12 6-Mar-13 Full 0.64%

DVY Equity - US Divs. 20.0% 0.0% -20.0% 1-Oct-12 7-Feb-13 Full 5.74%

USMV Equity - US Low Vol. 25.0% 0.0% -25.0% 1-Oct-12 7-Feb-13 Full 4.10%

PCY Credit - EM Debt 10.0% 0.0% -10.0% 1-Oct-12 7-Feb-13 Full 0.40%

JNK Credit - HY Debt 10.0% 0.0% -10.0% 1-Oct-12 7-Feb-13 Full 3.33%

IAU Cmdty - Gold 15.0% 5.0% -10.0% 1-Oct-12 7-Feb-13 Partial -5.96%

FXE FX - EURUSD 10.0% 5.0% -5.0% 1-Oct-12 7-Feb-13 Partial 3.81%

DVY Equity - US Divs. 25.0% 20.0% -5.0% 1-Oct-12 28-Nov-12 Partial -0.87%

IAU Cmdty - Gold 20.0% 15.0% -5.0% 1-Oct-12 28-Nov-12 Partial -3.24%

Source: Deutsche Bank, FactSet. Performance corresponds to Total Returns

Product Commentary

US Broad: total market indexWe looked for a product that could offer broad exposure including all sectors,and all market capitalization segments at low price. In addition, we focused onproducts that could offer a good level of liquidity for trades of institutional size. Wefound three very good products that fit these requirements very well, and for theHouse View portfolio, in particular we have leaned towards the most liquid one(VTI) among the three of them given the investment horizon of our core positions(~1+ year).

Figure 11: US Broad equity candidates

5-Day $ 5-Day bps

VTI CRSP US Total Market Index 0.05% 3,610 67,394 368 5,371 5,739 0.01 1.0

SCHB DJ U.S. Broad Stock Market Index 0.03% 2,000 7,290 43 1,838 1,881 0.02 2.9

ITOT S&P Total Market Index 0.03% 3,703 5,714 34 917 951 0.02 3.1

AUM

$M

20D ADV

$M

Implied

Liq. $M

Total

Liq. $

Avg. Bid/Ask SpreadsTicker TER

# of

HldngsIndex

Source: Deutsche Bank, Bloomberg Finance LP. Data as of Nov 22, 2016.


22 November 2016


US Equity industry tiltsOur analysis for Banks and Health Care positions focused on Large Caps; and inthe case of Health Care, in the Biotech and Pharmaceutical industries. For Banks,we decided to select KBWB which focuses on Large cap Banks and to someextent (~12%) also in Capital Markets, unlike other ETF alternatives which focuson less large cap-heavy or regional bank allocations. Meanwhile, for Health Carewe decided to select IBB which focuses mostly in Biotech companies with a hintof Pharma exposure (~11%) excluding Mega Cap Pharmaceuticals. For additionaldetails on candidates, readers may refer to our latest monthly report4 where wereviewed the different ETF alternatives for Banks and Health Care implementation.

Non-US Equity: Broad diversified exposureFor international equity exposure we sought the most diversified exposureboth in terms of markets and market capitalization. Therefore we focused onETFs offering exposure to Large, Mid, and Small Cap companies among bothdeveloped and emerging markets. Our short list included two large and liquidproducts which offer exposure to the World equity market excluding the US. Weended up leaning towards the vehicle with the most abundant liquidity and tradingefficiency (VXUS), which was not the cheapest, but still very low cost.

Figure 12: Non-US Broad Equity candidates

5-Day $ 5-Day bps

VXUS FTSE Global All Cap ex US 0.13% 6,059 6,208 31 47 78 0.02 4.0

IXUS MSCI All Country World ex US Index 0.11% 3,364 3,172 14 48 62 0.05 9.7

Implied

Liq. $M

Total

Liq. $

Avg. Bid/Ask SpreadsTicker Index TER

# of

Hldngs

AUM

$M

20D ADV

$M

Source: Deutsche Bank, Bloomberg Finance LP. Data as of Nov 22, 2016

InflationWe selected TIP for implementing our Broad Inflation exposure. From the BroadInflation alternatives in the ETF market with over $100m in assets (i.e. TIP, IPE,and SCHP), although at 0.20% it is not the cheapest one, TIP offers liquidity andtrading efficiency second to none. Modified Duration for the TIP ETFs consideredis around 8.

Figure 13: Inflation candidates

5-Day $ 5-Day bps

TIP Bloomberg Barclays Capital US Treasury Inflation Notes Index 0.20% 20,988 281 0.01 1.2

SCHP Bloomberg Barclays Capital US Treasury Inflation Notes Index 0.07% 1,528 18 0.03 6.0

IPE Bloomberg Barclays US Gov Inflation linked Bond Index 0.15% 774 3 0.09 15.2

Avg. Bid/Ask SpreadsTicker Index TER

AUM

$M

20D ADV

$M

Source: Deutsche Bank, Bloomberg Finance LP. Data as of Nov 22, 2016

4 See "US ETF Compass: October recorded $18bn inflows for ETPs despite weak markets" published on10 Nov 2016.


22 November 2016


Portfolio constituents correlations

Pair-wise correlations within the HVP are relatively low and are key inimproving the portfolio’s risk adjusted performance. They expand the investmentopportunity set by providing actual risk/return profile differentiation.

Figure 14: Correlations for HVP constituents and main asset classes

EquityReal

Estate

Fixed

IncomeComdty Crncy

VTI XLU KBWB IBB VXUS LQD TIP UUP SPY VNQ BND DBC UUP

VTI 1.00 1.00 0.64 -0.19 0.42 0.01

XLU 0.34 1.00 0.36 0.61 0.38 0.13 -0.09

KBWB 0.81 -0.01 1.00 0.81 0.32 -0.47 0.33 0.09

IBB 0.70 -0.02 0.62 1.00 0.68 0.32 -0.24 0.20 0.07

VXUS 0.86 0.34 0.71 0.49 1.00 0.86 0.54 -0.18 0.54 -0.24

LQD -0.01 0.38 -0.26 -0.14 -0.01 1.00 -0.02 0.25 0.88 -0.02 -0.12

TIP -0.05 0.34 -0.31 -0.13 -0.04 0.77 1.00 -0.06 0.22 0.80 0.07 -0.18

UUP 0.01 -0.09 0.09 0.07 -0.24 -0.12 -0.18 1.00 0.01 0.02 -0.12 -0.23 1.00

1 Year

Daily

Correl.

Portfolio Constituents

Source: Deutsche Bank, FactSet. As of 18 Nov 2016


22 November 2016


ETF Standard ComparisonThis section presents standard performance and fee & expense information aboutall the ETFs mentioned in the present report.

Figure 15: Average Annual Total Returns#

Average Annual Total ReturnsData as of Sep 30, 2016

Ticker NameInception

Date One Year Five Year Ten Year

Since

Inception Prospectus available at

ETFs

BBH VanEck Vectors Biotech ETF 12/21/2011 0.97% n.a. n.a. 28.08% www.vaneck.com

BKLN PowerShares Senior Loan Portfolio 3/3/2011 5.21% 4.60% n.a. 3.06% www.invescopowershares.com

DVY iShares Select Dividend ETF 11/7/2003 21.74% 16.03% 6.41% us.ishares.com

DXJ WisdomTree Japan Hedged Equity Fund 6/16/2006 -5.91% 10.10% 1.02% www.wisdomtree.com

EPI WisdomTree India Earnings Fund 2/22/2008 10.55% 3.87% n.a. -0.81% www.wisdomtree.com

EUFN iShares MSCI Europe Financials ETF 2/3/2010 -12.51% 5.38% n.a. -0.94% us.ishares.com

EWG iShares MSCI Germany ETF 3/18/1996 8.90% 9.57% 3.48% us.ishares.com

EWP iShares MSCI Spain Capped ETF 3/18/1996 -5.88% 1.05% -0.94% us.ishares.com

EZU iShares MSCI Eurozone ETF 7/31/2000 3.53% 7.49% 0.15% us.ishares.com

FXI iShares China Large-Cap ETF 10/8/2004 9.77% 5.84% 5.51% us.ishares.com

GMF SPDR S&P Emerging Asia Pacific ETF 3/23/2007 17.28% 6.94% n.a. 5.43% www.spdrs.com

HYS PIMCO 0-5 Year High Yield Corporate Bond Index

ETF

6/17/2011 9.84% 6.44% n.a. 5.09% www.pimco.com

IVV iShares Core S&P 500 ETF 5/19/2000 15.37% 16.30% 7.18% us.ishares.com

JNK SPDR Barclays High Yield Bond ETF 12/4/2007 9.48% 6.71% n.a. 5.65% www.spdrs.com

KBWB PowerShares KBW Bank Portfolio 11/1/2011 3.45% n.a. n.a. 15.40% www.invescopowershares.com

MCHI iShares MSCI China ETF 3/31/2011 12.55% 7.66% n.a. 1.06% us.ishares.com

PCY PowerShares Emerging Markets Sovereign Debt

Portfolio

10/11/2007 17.54% 8.12% n.a. 7.78% www.invescopowershares.com

QDF FlexShares Quality Dividend Index Fund 12/19/2012 16.66% n.a. n.a. 14.28% www.flexshares.com

QQQ PowerShares QQQ 3/10/1999 17.86% 19.18% 12.28% www.invescopowershares.com

SDY SPDR S&P Dividend ETF 11/15/2005 24.25% 16.49% 8.06% www.spdrs.com

VTIP Vanguard Short-Term Inflation-Protected Securities

ETF

10/16/2012 2.54% n.a. n.a. 0.14% www.vanguard.com

USMV iShares Edge MSCI Min Vol USA ETF 10/20/2011 17.26% n.a. n.a. 14.86% us.ishares.com

VGT Vanguard Information Technology ETF 1/30/2004 21.94% 17.77% 10.30% www.vanguard.com

VIG Vanguard Dividend Appreciation ETF 4/27/2006 16.24% 13.95% 7.29% www.vanguard.com

XLF Financial Select Sector SPDR Fund 12/22/1998 7.27% 17.17% -1.66% www.spdrs.com

UUP PowerShares DB US Dollar Index Bullish Fund 2/20/2007 -1.83% 2.08% n.a. -0.01% www.invescopowershares.com

XRT SPDR S&P Retail ETF 6/22/2006 -0.40% 14.84% 9.55% www.spdrs.com

XLU Utilities Select Sector SPDR Fund 12/22/1998 17.15% 11.91% 7.68% www.spdrs.com

HEDJ WisdomTree Europe Hedged Equity Fund 12/31/2009 8.62% 11.13% n.a. 6.49% www.wisdomtree.com

HYG iShares iBoxx $ High Yield Corporate Bond ETF 4/11/2007 10.73% 7.10% n.a. 5.56% us.ishares.com

ASHR Deutsche X-trackers Harvest CSI 300 China A-

Shares ETF

11/6/2013 -0.03% n.a. n.a. 9.42% etfus.deutscheawm.com

DBEU Deutsche X-trackers MSCI Europe Hedged Equity

ETF

10/1/2013 7.63% n.a. n.a. 5.44% etfus.deutscheawm.com

IBB iShares Nasdaq Biotechnology ETF 2/9/2001 -4.29% 25.62% 14.86% us.ishares.com

LQD iShares iBoxx $ Investment Grade Corporate Bond

ETF

7/26/2002 9.64% 5.72% 6.03% us.ishares.com

IEF iShares 7-10 Year Treasury Bond ETF 7/26/2002 5.55% 3.21% 5.97% us.ishares.com

EFAV iShares Edge MSCI Min Vol EAFE ETF 10/20/2011 11.32% n.a. n.a. 9.03% us.ishares.com

VTI Vanguard Total Stock Market ETF 5/31/2001 15.31% 16.30% 7.29% us.ishares.com

TIP iShares TIPS Bond ETF 12/5/2003 6.47% 1.79% 4.34% us.ishares.com

Indices*

SPTR S&P United States 500 Total Return 15.43% 16.37% 7.24%

NDUEACWF MSCI AC World Daily TR Net USD 11.96% 10.63% 4.34%

LBUSTRUU Barclays US Aggregate TR Value Un-hedged USD 5.19% 3.08% 4.79%

Notes: Since Inception performance data is provided for those ETFs which do not have full 10 Year performance history.

Performance calculations are based on total returns (i.e. reinvested dividends). Price utilized corresponds to ETF NAV. *Index

returns do not reflect deductions for fees, expenses, or taxes.

Source: Deutsche Bank, Bloomberg Finance LP. Additional information can be found in the prospectus for each fund at their respective Issuer’s ETF websites


22 November 2016


#Performance data quoted represents past performance. Past performance is nota guarantee of future results and current performance may be higher or lowerthan performance quoted. Investment returns and principal value will fluctuateand shares when sold or redeemed, may be worth more or less than their originalcost.

Figure 16: Fees and Expenses

Data as of most current prospectus

Ticker NameProspectus

Date

Manage-

ment Fee

Distribution

and Service

(12b-1) Fees

Other

Expenses

Acquired

Fund Fees

and

Expenses

Total

Annual

Fund

Operating

Expenses

Fee

Waiver

Total Annual

Fund Operating

Expenses After

Fee Waiver

ETFs

BBH VanEck Vectors Biotech ETF 2/1/2016 0.35% None 0.05% None 0.40% 0.05% 0.35%

BKLN PowerShares Senior Loan Portfolio 2/29/2016 0.65% None None None 0.65% None 0.65%

DVY iShares Select Dividend ETF 9/1/2016 0.39% None None None 0.39% None 0.39%

DXJ WisdomTree Japan Hedged Equity Fund 8/1/2016 0.48% None None None 0.48% None 0.48%

EPI WisdomTree India Earnings Fund 8/1/2016 0.83% None 0.01% None 0.84% None 0.84%

EUFN iShares MSCI Europe Financials ETF 12/1/2015 0.48% None None None 0.48% None 0.48%

EWG iShares MSCI Germany ETF 12/31/2015 0.48% None None None 0.48% None 0.48%

EWP iShares MSCI Spain Capped ETF 12/31/2015 0.48% None None None 0.48% None 0.48%

EZU iShares MSCI Eurozone ETF 12/31/2015 0.48% None None None 0.48% None 0.48%

FXI iShares China Large-Cap ETF 12/1/2015 0.73% None None None 0.73% None 0.73%

GMF SPDR S&P Emerging Asia Pacific ETF 1/31/2016 0.49% None None None 0.49% None 0.49%

HYS PIMCO 0-5 Year High Yield Corporate Bond Index ETF 10/31/2016 0.55% None None None 0.55% None 0.55%

IVV iShares Core S&P 500 ETF 8/1/2016 0.04% None None None 0.04% None 0.04%

JNK SPDR Bloomberg Barclays High Yield Bond ETF 10/31/2016 0.40% None None None 0.40% None 0.40%

KBWB PowerShares KBW Bank Portfolio 2/29/2016 0.35% None None None 0.35% None 0.35%

MCHI iShares MSCI China ETF 12/31/2015 0.63% None None None 0.63% None 0.63%

PCY PowerShares Emerging Markets Sovereign Debt Portfolio 2/29/2016 0.50% None None None 0.50% None 0.50%

QDF FlexShares Quality Dividend Index Fund 3/1/2016 0.37% None 0.01% None 0.38% 0.01% 0.37%

QQQ PowerShares QQQ 1/31/2016 0.06% None 0.14% None 0.20% None 0.20%

SDY SPDR S&P Dividend ETF 10/31/2016 0.35% None None None 0.35% None 0.35%

VTIP Vanguard Short-Term Inflation-Protected Securities ETF 1/27/2016 0.06% None 0.02% None 0.08% None 0.08%

USMV iShares Edge MSCI Min Vol USA ETF 12/1/2015 0.15% None None None 0.15% None 0.15%

VGT Vanguard Information Technology ETF 12/22/2015 0.08% None 0.02% None 0.10% None 0.10%

VIG Vanguard Dividend Appreciation ETF 5/25/2016 0.08% None 0.01% None 0.09% None 0.09%

XLF Financial Select Sector SPDR Fund 9/2/2016 0.04% 0.04% 0.06% None 0.14% None 0.14%

UUP PowerShares DB US Dollar Index Bullish Fund 6/20/2016 0.75% 0.05% None None 0.80% None 0.80%

XRT SPDR S&P Retail ETF 10/31/2016 0.35% None None None 0.35% None 0.35%

XLU Utilities Select Sector SPDR Fund 9/2/2016 0.04% 0.04% 0.06% None 0.14% None 0.14%

HEDJ WisdomTree Europe Hedged Equity Fund 8/1/2016 0.58% None None None 0.58% None 0.58%

HYG iShares iBoxx $ High Yield Corporate Bond ETF 7/1/2016 0.50% None None None 0.50% None 0.50%

ASHR Deutsche X-trackers Harvest CSI 300 China A-Shares ETF 9/30/2016 0.65% None None None 0.65% None 0.65%

DBEU Deutsche X-trackers MSCI Europe Hedged Equity ETF 9/30/2016 0.45% None None None 0.45% None 0.45%

IBB iShares Nasdaq Biotechnology ETF 8/1/2016 0.47% None None None 0.47% None 0.47%

LQD iShares iBoxx $ Investment Grade Corporate Bond ETF 7/1/2016 0.15% None None None 0.15% None 0.15%

IEF iShares 7-10 Year Treasury Bond ETF 7/1/2016 0.15% None None None 0.15% None 0.15%

EFAV iShares Edge MSCI Min Vol EAFE ETF 12/1/2015 0.33% None None None 0.33% 0.13% 0.20%

VTI Vanguard Total Stock Market ETF 8/1/2016 0.05% None None None 0.03% None 0.05%

TIP iShares TIPS Bond ETF 3/1/2016 0.20% None None None 0.20% None 0.20%

Notes: You may also incur usual and customary brokerage commissions when buying or selling shares of the Funds, which are not reflected in the fees above. Fee waivers are

temporary. Fund prospectus should be consulted for additional details.

Source: Deutsche Bank, Bloomberg Finance LP


22 November 2016


Appendix 1

Important Disclosures

*Other information available upon request

*Prices are current as of the end of the previous trading session unless otherwise indicated and are sourced fromlocal exchanges via Reuters, Bloomberg, and other vendors. Other information is sourced from Deutsche Bank, subjectcompanies, and other sources. For disclosures pertaining to recommendations or estimates made on securities other thanthe primary subject of this research, please see the most recently published company report or visit our global disclosurelook-up page on our website at http://gm.db.com/ger/disclosure/DisclosureDirectory.eqsr

Analyst Certification

The views expressed in this report accurately reflect the personal views of the undersigned lead analyst(s). In addition,the undersigned lead analyst(s) has not and will not receive any compensation for providing a specific recommendationor view in this report. Sebastian Mercado

Hypothetical Disclaimer

Backtested, hypothetical or simulated performance results have inherent limitations. Unlike an actual performancerecord based on trading actual client portfolios, simulated results are achieved by means of the retroactive applicationof a backtested model itself designed with the benefit of hindsight. Taking into account historical events the backtestingof performance also differs from actual account performance because an actual investment strategy may be adjustedany time, for any reason, including a response to material, economic or market factors. The backtested performanceincludes hypothetical results that do not reflect the reinvestment of dividends and other earnings or the deduction ofadvisory fees, brokerage or other commissions, and any other expenses that a client would have paid or actually paid.No representation is made that any trading strategy or account will or is likely to achieve profits or losses similar tothose shown. Alternative modeling techniques or assumptions might produce significantly different results and prove tobe more appropriate. Past hypothetical backtest results are neither an indicator nor guarantee of future returns. Actualresults will vary, perhaps materially, from the analysis.

Equity rating key Equity rating dispersion and banking relationships

Buy: Based on a current 12- month view of total share-holder return (TSR = percentage change in share pricefrom current price to projected target price plus pro-jecteddividend yield ) , we recommend that investors buy thestock.Sell: Based on a current 12-month view of totalshareholder return, we recommend that investors sell thestockHold: We take a neutral view on the stock 12-months outand, based on this time horizon, do not recommend eithera Buy or Sell.

Newly issued research recommendations and targetprices supersede previously published research.

?Regulatory Disclosures?1.Additional Information?Information on ETFs is provided strictly for illustrative purposes and should not be deemed an offer to sell or asolicitation of an offer to buy shares of any fund that is described in this document. Consider carefully any fund's


http://gm.db.com/ger/disclosure/DisclosureDirectory.eqsr

22 November 2016


investment objectives, risk factors, and charges and expenses before investing. This and other information can be foundin the fund's prospectus. Prospectuses about db X-trackers funds and Powershares DB funds can be obtained by calling1-877-369-4617 or by visiting www.DBXUS.com. Read prospectuses carefully before investing. Past performance is notnecessarily indicative of future results. Investing involves risk, including possible loss of principal. To better understandthe similarities and differences between investments, including investment objectives, risks, fees and expenses, it isimportant to read the products' prospectuses. Shares of ETFs may be sold throughout the day on an exchange throughany brokerage account. However, shares may only be redeemed directly from an ETF by authorized participants, in verylarge creation/redemption units. Transactions in shares of ETFs will result in brokerage commissions and will generatetax consequences. ETFs are obliged to distribute portfolio gains to shareholders. Deutsche Bank may be an issuer,advisor, manager, distributor or administrator of, or provide other services to, an ETF included in this report, for which itreceives compensation. db X-trackers and Powershares DB funds are distributed by ALPS Distributors, Inc. The opinionsexpressed are those of the authors and do not necessarily reflect the views of DB, ALPS or their affiliates.

??Aside from within this report, important conflict disclosures can also be found at https://gm.db.com/equities under the"Disclosures Lookup" and "Legal" tabs. Investors are strongly encouraged to review this information before investing.

?


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Additional Information?The information and opinions in this report were prepared by Deutsche Bank AG or one of its affiliates (collectively"Deutsche Bank"). Though the information herein is believed to be reliable and has been obtained from public sourcesbelieved to be reliable, Deutsche Bank makes no representation as to its accuracy or completeness.

If you use the services of Deutsche Bank in connection with a purchase or sale of a security that is discussed in this report,or is included or discussed in another communication (oral or written) from a Deutsche Bank analyst, Deutsche Bank mayact as principal for its own account or as agent for another person.

Deutsche Bank may consider this report in deciding to trade as principal. It may also engage in transactions, for itsown account or with customers, in a manner inconsistent with the views taken in this research report. Others withinDeutsche Bank, including strategists, sales staff and other analysts, may take views that are inconsistent with those takenin this research report. Deutsche Bank issues a variety of research products, including fundamental analysis, equity-linkedanalysis, quantitative analysis and trade ideas. Recommendations contained in one type of communication may differfrom recommendations contained in others, whether as a result of differing time horizons, methodologies or otherwise.Deutsche Bank and/or its affiliates may also be holding debt or equity securities of the issuers it writes on. Analysts arepaid in part based on the profitability of Deutsche Bank AG and its affiliates, which includes investment banking, tradingand principal trading revenues.

Opinions, estimates and projections constitute the current judgment of the author as of the date of this report. They donot necessarily reflect the opinions of Deutsche Bank and are subject to change without notice. Deutsche Bank providesliquidity for buyers and sellers of securities issued by the companies it covers. Deutsche Bank research analysts sometimeshave shorter-term trade ideas that are consistent or inconsistent with Deutsche Bank's existing longer term ratings. Tradeideas for equities can be found at the SOLAR link at http://gm.db.com. A SOLAR idea represents a high conviction beliefby an analyst that a stock will outperform or underperform the market and/or sector delineated over a time frame of noless than two weeks. In addition to SOLAR ideas, the analysts named in this report may from time to time discuss withour clients, Deutsche Bank salespersons and Deutsche Bank traders, trading strategies or ideas that reference catalystsor events that may have a near-term or medium-term impact on the market price of the securities discussed in this report,which impact may be directionally counter to the analysts' current 12-month view of total return or investment return asdescribed herein. Deutsche Bank has no obligation to update, modify or amend this report or to otherwise notify a recipientthereof if any opinion, forecast or estimate contained herein changes or subsequently becomes inaccurate. Coverage andthe frequency of changes in market conditions and in both general and company specific economic prospects make itdifficult to update research at defined intervals. Updates are at the sole discretion of the coverage analyst concerned or ofthe Research Department Management and as such the majority of reports are published at irregular intervals. This reportis provided for informational purposes only and does not take into account the particular investment objectives, financialsituations, or needs of individual clients. It is not an offer or a solicitation of an offer to buy or sell any financial instrumentsor to participate in any particular trading strategy. Target prices are inherently imprecise and a product of the analyst’sjudgment. The financial instruments discussed in this report may not be suitable for all investors and investors must maketheir own informed investment decisions. Prices and availability of financial instruments are subject to change withoutnotice and investment transactions can lead to losses as a result of price fluctuations and other factors. If a financialinstrument is denominated in a currency other than an investor's currency, a change in exchange rates may adverselyaffect the investment. Past performance is not necessarily indicative of future results. Unless otherwise indicated, pricesare current as of the end of the previous trading session, and are sourced from local exchanges via Reuters, Bloombergand other vendors. Data is sourced from Deutsche Bank, subject companies, and in some cases, other parties.

The Deutsche Bank Research Department is independent of other business areas divisions of the Bank. Details regardingour organizational arrangements and information barriers we have to prevent and avoid conflicts of interest with respectto our research is available on our website under Disclaimer found on the Legal tab.??Macroeconomic fluctuations often account for most of the risks associated with exposures to instruments that promiseto pay fixed or variable interest rates. For an investor who is long fixed rate instruments (thus receiving these cash flows),increases in interest rates naturally lift the discount factors applied to the expected cash flows and thus cause a loss.


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The longer the maturity of a certain cash flow and the higher the move in the discount factor, the higher will be theloss. Upside surprises in inflation, fiscal funding needs, and FX depreciation rates are among the most common adversemacroeconomic shocks to receivers. But counterparty exposure, issuer creditworthiness, client segmentation, regulation(including changes in assets holding limits for different types of investors), changes in tax policies, currency convertibility(which may constrain currency conversion, repatriation of profits and/or the liquidation of positions), and settlement issuesrelated to local clearing houses are also important risk factors to be considered. The sensitivity of fixed income instrumentsto macroeconomic shocks may be mitigated by indexing the contracted cash flows to inflation, to FX depreciation, or tospecified interest rates – these are common in emerging markets. It is important to note that the index fixings may -- byconstruction -- lag or mis-measure the actual move in the underlying variables they are intended to track. The choice of theproper fixing (or metric) is particularly important in swaps markets, where floating coupon rates (i.e., coupons indexed toa typically short-dated interest rate reference index) are exchanged for fixed coupons. It is also important to acknowledgethat funding in a currency that differs from the currency in which coupons are denominated carries FX risk. Naturally,options on swaps (swaptions) also bear the risks typical to options in addition to the risks related to rates movements.??Derivative transactions involve numerous risks including, among others, market, counterparty default and illiquidity risk.The appropriateness or otherwise of these products for use by investors is dependent on the investors' own circumstancesincluding their tax position, their regulatory environment and the nature of their other assets and liabilities, and as such,investors should take expert legal and financial advice before entering into any transaction similar to or inspired by thecontents of this publication. The risk of loss in futures trading and options, foreign or domestic, can be substantial. As aresult of the high degree of leverage obtainable in futures and options trading, losses may be incurred that are greaterthan the amount of funds initially deposited. Trading in options involves risk and is not suitable for all investors. Priorto buying or selling an option investors must review the "Characteristics and Risks of Standardized Options”, at http://www.optionsclearing.com/about/publications/character-risks.jsp. If you are unable to access the website please contactyour Deutsche Bank representative for a copy of this important document.?

Participants in foreign exchange transactions may incur risks arising from several factors, including the following: ( i)exchange rates can be volatile and are subject to large fluctuations; ( ii) the value of currencies may be affected bynumerous market factors, including world and national economic, political and regulatory events, events in equity anddebt markets and changes in interest rates; and (iii) currencies may be subject to devaluation or government imposedexchange controls which could affect the value of the currency. Investors in securities such as ADRs, whose values areaffected by the currency of an underlying security, effectively assume currency risk.?

Unless governing law provides otherwise, all transactions should be executed through the Deutsche Bank entity in theinvestor's home jurisdiction. Aside from within this report, important conflict disclosures can also be found at https://gm.db.com/equities under the "Disclosures Lookup" and "Legal" tabs. Investors are strongly encouraged to review thisinformation before investing.??United States: Approved and/or distributed by Deutsche Bank Securities Incorporated, a member of FINRA, NFA and SIPC.Analysts located outside of the United States are employed by non-US affiliates that are not subject to FINRA regulations.

Germany: Approved and/or distributed by Deutsche Bank AG, a joint stock corporation with limited liability incorporatedin the Federal Republic of Germany with its principal office in Frankfurt am Main. Deutsche Bank AG is authorized underGerman Banking Law and is subject to supervision by the European Central Bank and by BaFin, Germany’s FederalFinancial Supervisory Authority.

United Kingdom: Approved and/or distributed by Deutsche Bank AG acting through its London Branch at WinchesterHouse, 1 Great Winchester Street, London EC2N 2DB. Deutsche Bank AG in the United Kingdom is authorised by thePrudential Regulation Authority and is subject to limited regulation by the Prudential Regulation Authority and FinancialConduct Authority. Details about the extent of our authorisation and regulation are available on request.??Hong Kong: Distributed by Deutsche Bank AG, Hong Kong Branch.??


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India: Prepared by Deutsche Equities India Pvt Ltd, which is registered by the Securities and Exchange Board of India (SEBI)as a stock broker. Research Analyst SEBI Registration Number is INH000001741. DEIPL may have received administrativewarnings from the SEBI for breaches of Indian regulations.

Japan: Approved and/or distributed by Deutsche Securities Inc.(DSI). Registration number - Registered as a financialinstruments dealer by the Head of the Kanto Local Finance Bureau (Kinsho) No. 117. Member of associations: JSDA, TypeII Financial Instruments Firms Association and The Financial Futures Association of Japan. Commissions and risks involvedin stock transactions - for stock transactions, we charge stock commissions and consumption tax by multiplying thetransaction amount by the commission rate agreed with each customer. Stock transactions can lead to losses as a resultof share price fluctuations and other factors. Transactions in foreign stocks can lead to additional losses stemming fromforeign exchange fluctuations. We may also charge commissions and fees for certain categories of investment advice,products and services. Recommended investment strategies, products and services carry the risk of losses to principaland other losses as a result of changes in market and/or economic trends, and/or fluctuations in market value. Beforedeciding on the purchase of financial products and/or services, customers should carefully read the relevant disclosures,prospectuses and other documentation. "Moody's", "Standard & Poor's", and "Fitch" mentioned in this report are notregistered credit rating agencies in Japan unless Japan or "Nippon" is specifically designated in the name of the entity.Reports on Japanese listed companies not written by analysts of DSI are written by Deutsche Bank Group's analysts withthe coverage companies specified by DSI. Some of the foreign securities stated on this report are not disclosed accordingto the Financial Instruments and Exchange Law of Japan. Target prices set by Deutsche Bank's equity analysts are basedon a 12-month forecast period.

Korea: Distributed by Deutsche Securities Korea Co.?

South Africa: Deutsche Bank AG Johannesburg is incorporated in the Federal Republic of Germany (Branch RegisterNumber in South Africa: 1998/003298/10).??Singapore: by Deutsche Bank AG, Singapore Branch or Deutsche Securities Asia Limited, Singapore Branch (One RafflesQuay #18-00 South Tower Singapore 048583, +65 6423 8001), which may be contacted in respect of any matters arisingfrom, or in connection with, this report. Where this report is issued or promulgated in Singapore to a person who is not anaccredited investor, expert investor or institutional investor (as defined in the applicable Singapore laws and regulations),they accept legal responsibility to such person for its contents.

Taiwan: Information on securities/investments that trade in Taiwan is for your reference only. Readers shouldindependently evaluate investment risks and are solely responsible for their investment decisions. Deutsche Bank researchmay not be distributed to the Taiwan public media or quoted or used by the Taiwan public media without written consent.Information on securities/instruments that do not trade in Taiwan is for informational purposes only and is not to beconstrued as a recommendation to trade in such securities/instruments. Deutsche Securities Asia Limited, Taipei Branchmay not execute transactions for clients in these securities/instruments.??Qatar: Deutsche Bank AG in the Qatar Financial Centre (registered no. 00032) is regulated by the Qatar Financial CentreRegulatory Authority. Deutsche Bank AG - QFC Branch may only undertake the financial services activities that fall withinthe scope of its existing QFCRA license. Principal place of business in the QFC: Qatar Financial Centre, Tower, WestBay, Level 5, PO Box 14928, Doha, Qatar. This information has been distributed by Deutsche Bank AG. Related financialproducts or services are only available to Business Customers, as defined by the Qatar Financial Centre RegulatoryAuthority.

Russia: This information, interpretation and opinions submitted herein are not in the context of, and do not constitute,any appraisal or evaluation activity requiring a license in the Russian Federation.

?Kingdom of Saudi Arabia: Deutsche Securities Saudi Arabia LLC Company, (registered no. 07073-37) is regulated bythe Capital Market Authority. Deutsche Securities Saudi Arabia may only undertake the financial services activities thatfall within the scope of its existing CMA license. Principal place of business in Saudi Arabia: King Fahad Road, Al OlayaDistrict, P.O. Box 301809, Faisaliah Tower - 17th Floor, 11372 Riyadh, Saudi Arabia.??


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United Arab Emirates: Deutsche Bank AG in the Dubai International Financial Centre (registered no. 00045) is regulatedby the Dubai Financial Services Authority. Deutsche Bank AG - DIFC Branch may only undertake the financial servicesactivities that fall within the scope of its existing DFSA license. Principal place of business in the DIFC: Dubai InternationalFinancial Centre, The Gate Village, Building 5, PO Box 504902, Dubai, U.A.E. This information has been distributed byDeutsche Bank AG. Related financial products or services are only available to Professional Clients, as defined by theDubai Financial Services Authority.

Australia: Retail clients should obtain a copy of a Product Disclosure Statement (PDS) relating to any financial productreferred to in this report and consider the PDS before making any decision about whether to acquire the product. Pleaserefer to Australian specific research disclosures and related information at https://australia.db.com/australia/content/research-information.html??Australia and New Zealand: This research is intended only for "wholesale clients" within the meaning of the AustralianCorporations Act and New Zealand Financial Advisors Act respectively.?

Additional information relative to securities, other financial products or issuers discussed in this report is available uponrequest. This report may not be reproduced, distributed or published without Deutsche Bank's prior written consent.??Copyright © 2016 Deutsche Bank AG


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Research

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Equity Research

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Equity Research

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Equity Derivatives Research

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US ETF Model Portfolios

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