Deutsche bank presentation deck citywire hong kong


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Deutsche bank presentation deck citywire hong kong

  1. 1. Deutsche Bank ETFsDeutsche Bank ETFs IntroductionAnson Chowanson.chow@db.comDatum 2010 DB Blue template
  2. 2. Deutsche Bank ETFso More than 200 ETFs listed on 10 stock exchanges1o 2nd Largest ETF provider in Europe with over USD 40 billion in assets1o Leading market maker and broker (number 1 ETF Broker in Europe in 2011 2)o Largest ETF provider in Singapore and Hong Kong in terms of product offering3Source: (1) Deutsche Bank ETF website (; (2) Deutsche Bank Research (3) HKEX and SGX website 24 December 2012 Anson Chow
  3. 3. Growth of the ETF Market Worldwide Global ETF asset by region |ETFs | Global | Source: Deutsche Bank Research, data as of 26 September, 2012 34 December 2012Datum Anson Chow 2010 DB Blue template
  4. 4. Why ETF Now? The opportunity set explained by macro timing is at all-time highs — Globally, stock-selection opportunity used to account for approximately 80% of the total opportunity set, but now it falls to around 40%. In the US, stock-selection opportunity also drops to 50%, from about 70% prior to 2008 financial crisis. — The opportunity set explained by macro timing (e.g., country selection, industry rotation, and style timing) is close to all-time highs.Global – decomposition of opportunities US – decomposition of opportunities 100% 100% 90% 90% 80% 80% 70% 70% Relative OpportunityRelative Opportunity 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-89 Jan-91 Jan-93 Jan-95 Jan-97 Jan-99 Jan-01 Jan-03 Jan-05 Jan-07 Jan-09 Jan-11 Stock-specific Country Style Industry Currency Stock-specific Market Style Industry Source: Bloomberg Finance LP, Compustat, Haver, IBES, Russell, S&P, Thomson Reuters, Worldscope, Deutsche Bank Quantitative Strategy 4 4 December 2012 Anson Chow
  5. 5. DB ETF   Green – Annual GDP Growth expected to increase and maintain  at above 5% in 2013      Yellow – GDP Growth   expected to increase by  1% or more in 2013  compared to 2012 (but   stay below 5% GDP  growth)    Red – Drop in GDP growth expected in 2013 compared to 2012  Source: Deutsche Bank Research (Emerging Markets Monthly – 19 July 2012) 54 December 2012 Anson Chow
  6. 6. Taxation Factors• Asia based investors buying a US-listed ETF may subject to a dividend withholding tax of up to 30%• Non-US citizens holding US assets, including listed securities, may also be subject to estate tax of up to 35% on valuations (to be paid within nine months of the date of death, otherwise a 50% late penalty is imposed.)• Majority of ETF providers in Asia have platforms set up in jurisdictions (Luxembourg, France, HK/SG) which are not subject to the US tax The above is a general description. Investors are invited to consult their own independent tax advisors if they are in doubt about their tax situation. 64 December 2012 Anson Chow
  7. 7. Rules for the selection of the Collateral Basketsecurities— Types of collateral used — OECD equities — Investment grade bonds (government and corporate)— Rules for collateral inclusion: — Diverse - min of 30 securities and max weighting of no more than 4% per issuer — Liquid – position cannot exceed a maximum 5 days average daily traded volume— Haircuts/margin applied: — Ranges from 100% for certain government bonds to 120% for certain equities— Ongoing monitoring by investment manager, custodian and collateral manager— Valued on each business day independently by the administrator— Transparent - publication of collateral and swap exposures on website Rules employed on ETFs are over and above that required under UCITS and Luxembourg lawSource: 74 December 2012Datum 2010 DB Blue template Anson Chow
  8. 8. DB ETF website collateral publication Collateral detail MTM daily with details including: *Security Typee,b *Countrye,b *Sectore *Exchange Listinge *FX Exposuree,b * Index Exposuree •Credit Ratingb * Detail of each componente,b E – Equity B - BondSource: 84 December 2012Datum 2010 DB Blue template Anson Chow
  9. 9. DB ETFs to offer replication choice on majorbenchmark indices— Deutsche Bank ETFs, is launching a new initiative that aims to provide investors with the choice of direct or indirect tracking of major equity benchmarks.— In a first for the ETF industry, buyers of Deutsche Bank ETFs will be able to invest in line with their replication preference for certain ETFs tracking the German, US, Japanese, British, and Eurozone equity markets.— ETFs are designed to track market performance by matching as closely as possible the movements of indices. Indirect replication – also known as swap-based or synthetic replication – involves the ETF entering an agreement with a counterparty to provide the returns of the index being tracked. With direct replication products, the ETF invests directly in all or a subset of the securities that constitute the index.— The direct replication products will initially be listed in Europe and might be cross- listed in Asia in a second stage subject to authorities‟ approval.Source: Deutsche Bank ETFs Press Release, 19 Nov 2012 94 December 2012Datum 2010 DB Blue template Anson Chow
  10. 10. Important Information © 2012 Deutsche Bank AG This presentation contains a short summary description of the above mentioned ETFs and is for discussion purposes only. A complete description of the funds is in the respective and most recent prospectus of the above mentioned ETFs. This presentation is not for distribution to, or for the attention of, US or Canadian persons. Without limitation, this presentation does not constitute an offer or a recommendation to enter into any transaction. When making an investment decision, you should rely solely on the final documentation and any prospectus relating to the transaction and not this summary. Investment strategies involve numerous risks. Prospective investors or counterparties should discuss with their professional tax, legal, accounting and other adviser(s) the effect of any transaction they may enter into, including the possible risks and benefits of such transaction and should ensure that they fully understand the transaction and have made an independent assessment of the appropriateness of such transaction in the light of their own objectives and circumstances. In no way should Deutsche Bank be deemed to be holding itself out as a financial adviser or a fiduciary of the recipient hereof. Deutsche Bank may make a market or trade in instruments economically related to fund units or derivatives mentioned herein, and/or have investment banking or other relationships with issuers of the relevant securities. Deutsche Bank actively manages various risks, and on occasion may deal in securities mentioned in this document or in related instruments during the period between your receipt of this fact sheet and the award of any order. Whilst Deutsche Bank‘s trading or hedging activities are not intended to have any significant impact upon prices, its dealings could affect the prices you pay or receive for transactions in related securities or fund units. Deutsche Bank, and its current and future subsidiaries, parents, affiliates, divisions, officers, directors, agents and/or employees, disclaim all liability with respect to this document and the information herein, and are not liable for any errors or omissions, or for any damages howsoever arising from any reliance placed thereon, save as required by applicable laws and regulations. A full description of the terms and conditions of all sub-funds are included in the prospectus of and II. You can get the full and the simplified prospectus of each sub-fund of at , 49, avenue J.F. Kennedy, L-1855 Luxembourg, R.C.S. Luxembourg D-119 899. Deutsche Bank AG is authorised under German Banking Law (competent authority: BaFin – Federal Financial Supervising Authority) and is regulated by the Financial Services Authority for the conduct of investment business in the United Kingdom. The registered address of Deutsche Bank AG, London Branch, is Winchester House, 1 Great Winchester Street, London EC2N 2DB. 10Datum 2010 DB Blue template