EFTA01458600

Mee pouitent roc:* The bras ICIUDS levenmere eerie hghts Atlit44/35 prspnctivos b,ratioht, 1441torencuon Kkel Portfolio Our asset-class allocation in a balanced portfolio Traditional asset classes Within the core part of our balanced portfolio, we cover traditional liquid assets such as equities, fixed income and commodities. The chart shows how we would currently design a balanced portfolio, including alternative asset classes.' ■ Equities We stay generally positive on developed market equities, where returns could reach low double-digit levels one 12-month horizon. However, we are now in a mature market phase and periods of high volatility are likely as valuations return to historical levels. This means that tactical changes in allocations may be necessary. We are much more cautious on emerging markets, with Asian markets affected by their trading links with China. Latin American equities are likely to fare worse, due in part to problems surrounding Brazil. Fixed income When the Fed starts to raise rates, most likely in December, core yields will rise- if not by very much. European and Japanese bond markets will remain we€l-supported by accommodative policy from ECB and Bank of Japan (BOJ). We are cautious on U.S. investment grade but continue to see opportunities in high yield. Emerging-market bonds may offer high levels of carry but this will be accompanied by increased risk, at least in the short term, making a highly selective approach essential. Emerging markets' increased levels of U.S.-dollar•denominated debt are a concern. ■Commodities Oil prices are forecast to increase from current low levels, but only slowly - we forecast a price of $55 per barrel WTI on a 12-month horizon. Demand for oil has so far proved resilient to slower emerging-markets growth, but the market remains in oversupply, although there are already signs that U.S. shale output could moderate. Gold is likely to trade in a tight range determined by U.S.•dollar strength: its "safe haven" appeal would be boosted by a prolonged period of market turmoil. We see only limited opportunities in commodities, so keep portfolio allocations at low levels. ' Alternative investments aro dealt with separately in the next chapter. Alternatives are not suitable for all clients. it trione CO \1/4 4.1krt.gat E*Y-361OCtotw 2015 Americas Commodities 1.0% Fixed income Equities Developed markets ▪ United States Europe Alternatives EagritfAi might 460% 26.5% 12.0% II Japan • Pacific ex Japan 5.6% 2.0% Emerging Markets 4.0% Asia ox Japan Latin Amenca Fixed income II Credit • Sovereigns Emerging markets 3.0% 1.0% 2.6% 31.6% 2.0% Cash Commodities X Commodities Alternatives X Alternatives 30% 1.0% 10.0.1O Sources. Regional Investment Committee (RIC), Deutsche Asset & Wealth Management Investment GmbH, Deutsche Bank Trust Company Americas, as of 9124/15 This allocation may not be suitable for all investors. Past performance is not indicative of future returns. No assurance can be given that any forecast, investment objectives and/or expected returns will be achieved. Allocations are subject to change without notice. Forecasts are based on assumptions, estimates, opinions and hypothetical models that may prove to be incorrect. CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0118583 CONFIDENTIAL SDNY_GM_00264767 EFTA01458600