This document is for institutional investors only, and not for retail distributionDeutsche Bankdb-X funds          Smart B...
This document is for institutional investors only, and not for retail distributionTable of contents                       ...
This document is for institutional investors only, and not for retail distributionDeutsche Bankdb-X funds          1. db-X...
This document is for institutional investors only, and not for retail distributiondb-X fundsFunds made by Deutsche Bankdb-...
This document is for institutional investors only, and not for retail distributionBroad range of funds to meet investor de...
This document is for institutional investors only, and not for retail distributiondb-X funds awardsAwards2012           1s...
This document is for institutional investors only, and not for retail distributionDeutsche Bankdb-X funds          2. The ...
This document is for institutional investors only, and not for retail distributionIndustry evolution: emergence of “Smart ...
This document is for institutional investors only, and not for retail distributionWhy do investors look for smart beta?Res...
This document is for institutional investors only, and not for retail distributionSmart Beta and Risk Factors : growing re...
This document is for institutional investors only, and not for retail distributionDeutsche Bankdb-X funds          3. Risk...
This document is for institutional investors only, and not for retail distributionA Risk Factor approach to portfolio cons...
This document is for institutional investors only, and not for retail distributionRisk Factors approach : a high profile t...
This document is for institutional investors only, and not for retail distributionWhat do we mean by Risk Factors?A few te...
This document is for institutional investors only, and not for retail distributionAlternative assets, hedge funds:The trad...
This document is for institutional investors only, and not for retail distributionAlternative assets, hedge funds:The trad...
This document is for institutional investors only, and not for retail distributionRisk Factors expertise within Deutsche B...
This document is for institutional investors only, and not for retail distributionRisk Factors expertise within Deutsche B...
This document is for institutional investors only, and not for retail distributionRisk Factors expertise within Deutsche B...
This document is for institutional investors only, and not for retail distributionEquity Risk Factors identificationExampl...
This document is for institutional investors only, and not for retail distributionEquity Risk Factors identificationExampl...
This document is for institutional investors only, and not for retail distributionA few reasons for Risk Premia, across as...
This document is for institutional investors only, andonly, and not for retail distribution                               ...
This document is for institutional investors only, and not for retail distributionStyle and Market Risk PremiaSimulated Re...
This document is for institutional investors only, and not for retail distributionRisk Factors : a few resultsDiversificat...
This document is for institutional investors only, and not for retail distributionRisk Factors portfolio construction meth...
This document is for institutional investors only, and not for retail distributionRisk factors portfolio construction : th...
This document is for institutional investors only, and not for retail distributionEquity Risk Factors portfolio constructi...
This document is for institutional investors only, and not for retail distributionRisk factors : a new portfolio construct...
This document is for institutional investors only, and not for retail distributionDeutsche Bankdb-X funds          4.Conta...
www.dbxfunds.comOverviewwww.dbxfunds.com is an intuitive andaccessible portal that aims to cater for allyour investment re...
ContactsFund related information                 London      +44 207 547 8699                 Frankfurt   +49 69 910 38808...
Disclaimer This document is intended for discussion purposes only and does not create any legally binding obligations on t...
Upcoming SlideShare
Loading in...5
×

Hampshire db x

634

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
634
On Slideshare
0
From Embeds
0
Number of Embeds
6
Actions
Shares
0
Downloads
23
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Hampshire db x

  1. 1. This document is for institutional investors only, and not for retail distributionDeutsche Bankdb-X funds Smart Beta : an alternative for your portfolio November 2012
  2. 2. This document is for institutional investors only, and not for retail distributionTable of contents Slides1. db-X funds 2-52. The emergence of “Smart Beta” 6-93. Risk Factors: a new portfolio construction paradigm? 10 - 284. Contacts 29 - 32 1
  3. 3. This document is for institutional investors only, and not for retail distributionDeutsche Bankdb-X funds 1. db-X funds Funds made by Deutsche Bank
  4. 4. This document is for institutional investors only, and not for retail distributiondb-X fundsFunds made by Deutsche Bankdb-X funds was established in May 2002 as part of Deutsche Bank’s Markets division andis responsible for developing mutual funds investing in the full range of asset classes.The Markets division of the Corporate and Investment Bank is responsible for the origination,sale, structuring and trading of fixed income, equity, commodity, currency, derivative andenhanced cash products, establishing itself as a global leader in these products by combining itsunique distribution franchise with its pricing, structuring and execution expertise.The db-X funds product range comprises 70 funds with AuM of EUR 9.26 Billion(1). Mostof our funds are UCITS compliant and offer access to DB’s unique proprietary systematicstrategies or to the management of highly regarded external asset managers. Our teamalso has a wealth of expertise in developing tailor-made, cost efficient solutions in orderto support investors in achieving their specific requirements.UCITS has established itself as a quality label among retail and institutional investors, interms of fund management, risk control and investment diversification. We believe that it isvital for independent companies to be involved in all areas of fund operations such as fundmanagement, custody, fund administration and audit to ensure that funds are operated and risk-managed properly. We only work with globally recognised service providers in custody, fundadministration and audit.(1) Source: Deutsche Bank, as of 31 October 2012 3
  5. 5. This document is for institutional investors only, and not for retail distributionBroad range of funds to meet investor demands EUR 9.26 Bio Assets under Management(1) Equity 33.18% Alternative 26.50% Fixed Income 18.22% Commodities 16.12% Multi Assets 4.40% Currency 1.26% Credit 0.32%(1) Source: Deutsche Bank, As of 31 October 2012Deutsche Bankdb-X funds4
  6. 6. This document is for institutional investors only, and not for retail distributiondb-X funds awardsAwards2012 1st HFMWeek 2012 Fund Award: Best UCITS Equity Fund CROCI Sectors Fund 1st UCITS Hedge Awards 2012: Best performing Commodity Fund Hermes Absolute Return Commodity Fund 1st The Hedge Fund Journal Awards 2012 The Leading UCITS Hedge Funds Platform 1st Structured Fund House of the Year Structured Product European Awards 2012 1st UCITS HFS Index Awards 2011: Best Global Macro/CTA Fund dbX Systematic Alpha Index Fund2011 1st The Hedge Fund Journal Awards 2011 The Leading UCITS Hedge Funds Platform st 1 World Finance HF Awards: Best Long Short Equity Fund CROCI Global 130/30 nd 2 Alternative Investments Award PWM CROCI Multi Geld-Magazin: Alternative Investments Award2010 1st (Hedge Funds with a Volatility of up to 5% Category) Dynamic Alternative Portfolio 1st Lipper Fund Awards: Austria Equity Group Large Best Fund Group (3 years) 1st Lipper Fund Awards: Germany Equity Group Large Best Fund Group (3 years) 1st Lipper Fund Awards: Luxembourg Equity Group Large Best Fund Group (3 years)Past Performance is not a reliable indicator of future returns. 5
  7. 7. This document is for institutional investors only, and not for retail distributionDeutsche Bankdb-X funds 2. The emergence of “Smart Beta” November 2012
  8. 8. This document is for institutional investors only, and not for retail distributionIndustry evolution: emergence of “Smart Beta”Smart Beta encompass 3 types of strategies— Factor portfolios, i.e. where the intention is to exploit factors such as momentum, value, growth and leverage, etc.— Rules-based strategies, which, as the name suggests, are based on a subset of an overall market or a reweighting of the broad market.— Strategy Beta, which concentrates more on broader portfolio construction than characteristics. An example is the currently popular strategy that aims to capture the efficacy of low-volatility shares Sector Beta Beta ETFs Country Beta Active Regional Beta Funds Strategy Beta Smart Factor Beta Factor Beta Beta Alpha Alpha Alternatives 1970s 1980s 1990s 2000sDeutsche Bankdb-X funds 7
  9. 9. This document is for institutional investors only, and not for retail distributionWhy do investors look for smart beta?Results from Northern Trust institutional survey (as of June 2012)— Northern Trust engaged Greenwich Associates to interview 121 institutional investors, 41 of which were in Europe.— “Passive investment products” are “increasingly important tools”: — Approximately one-third of respondents say passive products make up more than 40% their assets, and a sizeable number expect to increase allocations. — Approximately 45% of institutions in Europe report that passive funds represent more than 40% of equity and fixed income assets, and approximately 57 % expect to cross that threshold in the next three years.— Nonetheless, traditional indexing has shown some limits : — As institutions ramp up their use of passive strategies, they have begun to examine benchmark construction and 37 % describe themselves as “concerned” or “very concerned” that the standard construction of cap-weighted indices may affect achieving their goals. — Globally, 63 % of participating institutions say that known benchmark inefficiencies should be addressed and removed, a figure that jumps to 78% in Europe.Source : Northern Trust, Invesment & Pensions EuropeDeutsche Bankdb-X funds 8
  10. 10. This document is for institutional investors only, and not for retail distributionSmart Beta and Risk Factors : growing recognitionThe Smart Beta and Risk Factors investment themes are becominghigh profile, with significant press coverageDeutsche Bankdb-X funds 9
  11. 11. This document is for institutional investors only, and not for retail distributionDeutsche Bankdb-X funds 3. Risk Factors : a new portfolio construction paradigm? November 2012
  12. 12. This document is for institutional investors only, and not for retail distributionA Risk Factor approach to portfolio constructionMotivation— Investors are increasingly aware of the need to diversify away from traditional risk premia.— Traditional portfolios of equities and bonds are dominated by equity risk in times of market stress.— Even endowments models (e.g. the “Yale Model”) of seeking diversification through allocation to alternative assets proved ineffective during the most recent financial crisis.— Is true diversification fundamentally unachievable?— Gradually, a new paradigm is emerging – diversification through investment in risk factors : — Old ideas, applied in new ways — Capturing liquid, uncorrelated sources of return — Simple, logical and well documented strategies — Portfolios constructed to maximise diversification benefits.— Some of the world’s most sophisticated and cost-sensitive investors are leading the way.Deutsche Bankdb-X funds 11
  13. 13. This document is for institutional investors only, and not for retail distributionRisk Factors approach : a high profile themeThe first movers Several large European institutions have launched high profile initiatives to re-shape their portfolio allocation to benefit from risk factors returns.  PKA pension, a large Danish  AP2, one of the Swedish  Norges Bank Investment occupational pension fund state pension funds Management, manager of the manager Norwegian state oil fund  Identified systematic risk  Implementing a strategic premia as underlying of many  Began a study of portfolio overhaul of its entire hedge funds – manager were returns in 2008, following investment strategy generating alternative beta equity market losses – rather than alpha identified systematic risk  Unwinding all traditional premia as a meaningful external equity mandates, in  AP2 is now implementing risk diversifier to its large equity favor of a highly diversified premia investments as a beta portfolio portfolio of risk premia transparent, liquid, alternative investments to hedge funds, and a  In the process of diversifier to equities implementing risk factor approach across multiple factorsDeutsche Bankdb-X funds 1211/26/2012 10:53:15 AM 2010 DB Blue template
  14. 14. This document is for institutional investors only, and not for retail distributionWhat do we mean by Risk Factors?A few tentative definitions  A premium generated for  Some Risk Factors  Others represent taking a certain type of represent simple exposure systematic investment in return to the excess return of an assets with certain asset class. characteristics, or trading of related investment to  Persistent source of return  Among these: capture relative value : that can be accessed systematically, also referred  The Equity risk premium,  Equity investment to as risk premium or strategies such as Value, alternative beta  The Credit risk premium Size and Momentum.  Convertible arbitrage, merger arbitrage strategies  Implied/realized volatility strategies.  Carry strategies like FX carry and Rates term structure carry.Deutsche Bankdb-X funds 1311/26/2012 10:53:15 AM 2010 DB Blue template
  15. 15. This document is for institutional investors only, and not for retail distributionAlternative assets, hedge funds:The traditional access to risk premiaHedge Fund risk premia strategies Historical performances 600 S&P 500 Total ReturnThe following strategies are fundamentally DJ Credit Suisse Hedge Fund Indexaiming to access specific risk premia. JPM Global Aggregate Bond Index 500— Merger arbitrage— Volatility trading 400— Convertible arbitrage— Index arbitrage 300While a fund manager’s expertise may enableto achieve superior risk adjusted returns, a 200significant part of the performance of thesestrategies is often due to an exposure to a 100alternative risk premium. 0 Dec-93 Feb-97 Apr-00 Jun-03 Aug-06 Oct-09 Source: Deutsche Bank, Bloomberg, based on historical data from 12/31/1993 to 30/11/2012 Past returns is no guarantee of future performances.Deutsche Bankdb-X funds 1411/26/2012 10:53:15 AM 2010 DB Blue template
  16. 16. This document is for institutional investors only, and not for retail distributionAlternative assets, hedge funds:The traditional access to risk premiaThe well known drawbacks of hedge funds— Market Beta: some hedge fund strategies are inherently correlated to the market, while others have shown reduced diversification benefits in times of market stress.— Cost: the traditional 2/20 fee model is a significant premium for access. “Hedge funds have a fee structure appropriate for true alpha generation while most returns come from systematic risks. We want to get paid for taking risk, not pay for it.” Thomas Franzen, Chief Investment Strategist at AP2 Financial Times, 22 April 2012— Illiquidity: most hedge funds have limited liquidity or gating arrangements.— Transparency: frequent lack of transparency which exposes investors to style drift, potentially leading to concentration risks.— While UCITS rules are a clear step toward increased liquidity and transparency, hedge funds still can be realistically only a relatively small part of an overall portfolio.— By taking a systematic approach instead, it is possible to access parts of hedge funds returns that can be replicated in a liquid, cost effective manner.Deutsche Bankdb-X funds 1511/26/2012 10:53:16 AM 2010 DB Blue template
  17. 17. This document is for institutional investors only, and not for retail distributionRisk Factors expertise within Deutsche BankEquity Quantitative Strategy Group— The genesis of most of Deutsche Bank’s risk factor strategies is the research of the Equity Quantitative Strategy Group.— The group consists of seventeen professionals in the US, Asia and Europe, with additional offshore support.— The DB Quantitative Strategy Group was ranked #1 in both the 2011 All-Europe Institutional Investor Research Survey and the 2011 US Research Institutional Investor Survey.— Both the US and Europe teams have been ranked Top 3 in the Greenwich Survey for 2011.Deutsche Bankdb-X funds 1611/26/2012 10:53:16 AM 2010 DB Blue template
  18. 18. This document is for institutional investors only, and not for retail distributionRisk Factors expertise within Deutsche BankIdentifying risk factorsEach identified Risk Factor is intended to meet several criteria— Explainable : risk premia should have a strong basis for existence— Persistent : there must be a rationale for the persistence of the risk premia— Attractive risk/return profile : each single risk premium must demonstrate good returns characteristics— Unique : when building a diversified portfolio, each risk premium is intended to exhibit low correlations to traditional market beta as well as other risk premia.— Accessible : the risk premium must be accessible at a level of cost that is sufficiently low to avoid dilution of the return.Deutsche Bankdb-X funds 1711/26/2012 10:53:16 AM 2010 DB Blue template
  19. 19. This document is for institutional investors only, and not for retail distributionRisk Factors expertise within Deutsche BankRisk factors implementation and portfolio constructionA disciplined, systematic approach towards simple and robust strategies— The objective is to isolate risk premia that can be : — Fully transparent : each single strategy is fully systematic, relying on well-defined rules — Liquid :strategies are designed to allow cost-efficient entry and exist to investors with no lock-ups — Low cost : a well defined systematic approach allows efficient transaction costs.— Portfolio construction then involves combining a range of theses return generators that are designed to capture different sources of risk premium.— By creating a portfolio of liquid factors it is possible to build a more diversified portfolio, thereby reducing drawdown risk and improving risk- adjusted returns.Deutsche Bankdb-X funds 1811/26/2012 10:53:16 AM 2010 DB Blue template
  20. 20. This document is for institutional investors only, and not for retail distributionEquity Risk Factors identificationExamples of cash factorsA disciplined, systematic approach towards simple and robust strategiesValue — The concept of value investing dates back to the original Fama-Fench paper from 1992 which argues that cheap stocks outperform expensive stocks in the long run. — Traditional examples: Price-to-Earning and Enterprise Value-to-EBITDA ratios, where investment are made into companies that are viewed as cheap.Quality/Profitability — In reporting seasons, earning quantity tend to get most attention – in reality though the quality of earnings is a better gauge of future earnings performance — Accruals – the difference between cash and accounting earnings – are a good measure of earning quality. Accrual earnings are less reliable than cash earnings because they involve subjective judgments regarding the period in which revenues and expenses are recognized. — Academic research (Sloan) has highlighted that earning performance related to accruals exhibits lower persistence than earning attributed to cash flow.Low Beta — Historical long term studies (Baker) show that low volatility and low beta portfolios can offer combination of high average returns couples with low drawdown. — Explanations for structural alpha in low-risk stocks appear to be rooted in irrational investor behavior leading to market inefficiency. — Metrics used to monetize the low risk factor include realized volatility and market beta.Deutsche Bankdb-X funds 1911/26/2012 10:53:16 AM 2010 DB Blue template
  21. 21. This document is for institutional investors only, and not for retail distributionEquity Risk Factors identificationExamples of cash factorsA disciplined, systematic approach towards simple and robust strategiesMomentum — Prior stock returns have been shown to have explanatory power in the cross section of common stock returns – this temporal pattern in prices is referred to as momentum. — Jegadeesh and Titman (1993) show that a strategy that simultaneously buys past winners and sells past losers generates significant abnormal returns over holding periods of 3 to 12 months.Liquidity — Investors expect to be rewarded for taking a risk when investing in illiquid assets — Recent DB research “Solving the Liquidity Puzzle”, January 2011, investigated whether an illiquidity premium exists in the European equity market using a number of popular as well as novel liquidity measures (like the Absolute Return to Turnover Ratio).Size — The Fama-French paper argues that investors have historically received additional returns by investing in stocks of companies with relatively small market capitalization.Growth — Growth investing involves investing in stock whose earning are expected to grow at an above-average rate as compared to the industry or overall market — Examples of measuring growth include 12M trailing EPS growth, Long term EPS growth, P/E vs. 5Y P/E and 12 M trailing dividend growthDeutsche Bankdb-X funds 2011/26/2012 10:53:16 AM 2010 DB Blue template
  22. 22. This document is for institutional investors only, and not for retail distributionA few reasons for Risk Premia, across asset classesCarry, value, momentum everywhereSources of Risk Premia and possible explanations Value Carry Momentum Rational, reflecting compensation Carry trades vulnerable to sharp Reward for priced business cycle risk, for distress risk which materializes negative skew trends in the business cycle drive in weakening economies and/or trends in prices Economic during liquidity crises Overreaction : unpopular value Reward for providing insurance or Extrapolation of past prices and stocks that have done badly are certainty to the market overconfidence oversold and become under- Behavioural priced, to be corrected when Gradual diffusion of firm-specific sentiment improves information across investing public Need for allocation to appear Carry trades often done with leverage Majority of institutional investors are prudent. Risk consideration, VAR, index trackers, while market indices Solvency may prevent investors Highly levered carry portfolios have exhibit some momentum themselves. from accessing cheap assets significant downside risk and need to be properly monitored and risk Investors have low tolerance for managed underperformance, which influences Institutional fund manager to hug their benchmark indices to try to minimize ‘career risk’, becoming closet index trackers Source Deutsche Bank Market Research A new Asset Allocation Paradigm, July 2012 Past performance is not a reliable indicator of future returns. Performance does not include any fees associated with products on the Risk Factors.Deutsche Bankdb-X funds 2111/26/2012 10:53:16 AM 2010 DB Blue template
  23. 23. This document is for institutional investors only, andonly, and not for retail distribution This document is for institutional investors not for retail distributionStyle and Market Risk PremiaSimulated Results Source Deutsche Bank Market Research A new Asset Allocation Paradigm, July 2012 Past performance is not a reliable indicator of future returns. Performance does not include any fees associated with products on the Risk Factors.Deutsche Bankdb-X funds
  24. 24. This document is for institutional investors only, and not for retail distributionStyle and Market Risk PremiaSimulated Results Source Deutsche Bank Market Research A new Asset Allocation Paradigm, July 2012 Past performance is not a reliable indicator of future returns. Performance does not include any fees associated with products on the Risk Factors.Deutsche Bankdb-X funds
  25. 25. This document is for institutional investors only, and not for retail distributionRisk Factors : a few resultsDiversification does matter (simulated results) Source Deutsche Bank Market Research A new Asset Allocation Paradigm, July 2012 Past performance is not a reliable indicator of future returns. Performance does not include any fees associated with products on the Risk Factors.Deutsche Bankdb-X funds
  26. 26. This document is for institutional investors only, and not for retail distributionRisk Factors portfolio construction methodologiesLimitations of Mean Variance Optimization Mean Variance Risk Parity Fixed Weights Optimization Low Stability of portfolio High Portfolio weights are determined as Portfolio weights are Portfolio weights are determined to the combination that maximizes the determined proportionally to be fixed weighted independently of return for a given level of variance the level of realized volatility expected risks or returns If the market data assumptions Risk Parity provides The fixed weights portfolio brings change the mean variance portfolio diversification benefit. Expected some diversification benefits but might be significantly different Returns are not an input for the these are not proportional to the implying a necessary change to asset allocations risks within the portfolio allocations *Deutsche Bankdb-X funds
  27. 27. This document is for institutional investors only, and not for retail distributionRisk factors portfolio construction : the case for Risk Parity3 assets Risk Parity Example  Risk Parity is a dynamic allocation mechanism which determines the weights of underlyings within a portfolio, in such a way that the “risk” is distributed evenly among its components.  “Risk Distribution” is achieved by assigning a lower weight to components with a higher historical volatility; consequently, components with a lower historical volatility will be assigned a higher weight. Portfolio 1 Portfolio 2 Asset Volatility Equal Weight Asset Volatility Risk Parity Weight A 40% 33.3% A 40% 14.3% B 20% 33.3% B 20% 28.6% C 10% 33.3% C 10% 57.1% Equal nominal weights do not ensure equal risk allocation. Risk Parity weights are approximately proportional to the inverse of the volatility of each asset. Given asset A’s high volatility in comparison to assets B and C, asset A’s performance will contribute much more to Therefore, the Risk Parity methodology ensures that the the overall portfolio performance in case of an equally contribution of each asset is evenly distributed amongst weighted portfolio its components.
  28. 28. This document is for institutional investors only, and not for retail distributionEquity Risk Factors portfolio construction : an exampleRisk Parity Portfolio based on several Equity Risk Factors — The chart on the right hand side Risk Parity Portfolio : historical results shows the historical simulated performance of a diversified portfolio of several equity risk factors (“Portfolio”) compared to a long equity investment. — The Portfolio has a risk-parity based allocation, based on the inverse of the one year trailing realised volatility of each factor. — The Portfolio is rebalanced monthly. — In comparison to a long equity investment, the portfolio demonstrates an improved risk-return profile and drawdowns are significantly reduced. Past Performance is not a reliable indicator of future returns. Risk Parity Portfolio is monthly rebalanced. Factors are weighted proportional to inverse of realized volatilities on each rebalancing date. Volatility is calculated with 1 year rolling window with monthly return data. Risk Factor Portfolio contains Low Beta, CROCI Market Neutral, Quality, Momentum, Volatility and Dividends strategies, as calculated by Deutsche Bank. Further details on each Risk Factor available upon request. Performance does not include any fees associated with products on the Portfolio. Deutsche Bank db-X funds 27 11/26/2012 10:53:16 AM 2010 DB Blue template
  29. 29. This document is for institutional investors only, and not for retail distributionRisk factors : a new portfolio construction paradigm?Next steps : implementationLeveraging existing research to build product— Deutsche Bank has developed an extensive framework to help investors in re-considering their existing portfolio allocation.— Several high profile pension funds are now entering in the implementation process, either on their absolute return or traditional equity allocation.— This investment theme has gained a lot of traction among fund investors, looking for either : — Equity allocation replacements, — Absolute return type funds, implementing solid and transparent systematic strategies.Deutsche Bankdb-X funds 2811/26/2012 10:53:16 AM 2010 DB Blue template
  30. 30. This document is for institutional investors only, and not for retail distributionDeutsche Bankdb-X funds 4.Contacts Funds made by Deutsche Bank
  31. 31. www.dbxfunds.comOverviewwww.dbxfunds.com is an intuitive andaccessible portal that aims to cater for allyour investment resource needsAn easy to navigate sitethat enables you to: — find out more about us and our range of funds — access fund specific information and view key performance data — download key fund data and materials — Utilise useful tools that aim to help you analyze your investment choices 30
  32. 32. ContactsFund related information London +44 207 547 8699 Frankfurt +49 69 910 38808 db-X funds Zurich +41 44 227 37520 E-Mail dbx.funds@db.com Website www.dbxfunds.com 31
  33. 33. Disclaimer This document is intended for discussion purposes only and does not create any legally binding obligations on the part of Deutsche Bank AG and/or its affiliates (“DB”). Without limitation, this document does not constitute an offer, an invitation to offer or a recommendation to enter into any transaction. When making an investment decision, you should rely solely on the final documentation relating to the transaction and not the summary contained herein. DB is not acting as your financial adviser or in any other fiduciary capacity with respect to this proposed transaction. The transaction(s) or products(s) mentioned herein may not be appropriate for all investors and before entering into any transaction you should take steps to ensure that you fully understand the transaction and have made an independent assessment of the appropriateness of the transaction in the light of your own objectives and circumstances, including the possible risks and benefits of entering into such transaction. For general information regarding the nature and risks of the proposed transaction and types of financial instruments please go to www.globalmarkets.db.com/riskdisclosures. You should also consider seeking advice from your own advisers in making this assessment. If you decide to enter into a transaction with DB, you do so in reliance on your own judgment. The information contained in this document is based on material we believe to be reliable; however, we do not represent that it is accurate, current, complete, or error free. Assumptions, estimates and opinions contained in this document constitute our judgment as of the date of the document and are subject to change without notice. Any projections are based on a number of assumptions as to market conditions and there can be no guarantee that any projected results will be achieved. Past performance is not a guarantee of future results. This material was prepared by a Sales or Trading function within DB, and was not produced, reviewed or edited by the Research Department. Any opinions expressed herein may differ from the opinions expressed by other DB departments including the Research Department. Sales and Trading functions are subject to additional potential conflicts of interest which the Research Department does not face. DB may engage in transactions in a manner inconsistent with the views discussed herein. DB trades or may trade as principal in the instruments (or related derivatives), and may have proprietary positions in the instruments (or related derivatives) discussed herein. DB may make a market in the instruments (or related derivatives) discussed herein. Sales and Trading personnel are compensated in part based on the volume of transactions effected by them. The distribution of this document and availability of these products and services in certain jurisdictions may be restricted by law. You may not distribute this document, in whole or in part, without our express written permission. DB SPECIFICALLY DISCLAIMS ALL LIABILITY FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL OR OTHER LOSSES OR DAMAGES INCLUDING LOSS OF PROFITS INCURRED BY YOU OR ANY THIRD PARTY THAT MAY ARISE FROM ANY RELIANCE ON THIS DOCUMENT OR FOR THE RELIABILITY, ACCURACY, COMPLETENESS OR TIMELINESS THEREOF. DB is authorised under German Banking Law (competent authority: BaFin - Federal Financial Supervising Authority) and regulated by the Financial Services Authority for the conduct of UK business. © Deutsche Bank AG 2012. All rights reserved.CROCI® DisclaimerDeutsche Bank’s Cash Return On Capital Invested (CROCI®) valuation metric attempts to transform an accounting return to an economic return. Cash flows are calculated onan operating (pre-exceptional) basis and compared to the real (economic) invested capital in a business. The latter may include items such as R&D or brands that cannotappear on a balance sheet under current accounting standards. A judgement on current share price valuation can be made by comparing the current and expected Cash ReturnOn Capital Invested with the true asset multiple of the company, sector or region. CROCI® charts show the results of our calculation and include annual returns, the real investedcapital base on an annualised basis, and the valuation of the company, again on an annualised basis. If you require any further information on our methodology, please contactcroci.valuations@db.com. CROCI® is a registered trade mark of Deutsche Bank AG in certain jurisdictions. Deutsche Bank AG reserves all of its registered and unregisteredtrade mark rights.© Deutsche Bank AG 2012. All rights reserved.Deutsche Bankdb-X funds
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×