EFTA02479416

From: jeffrey E. <[email protected]> Sent: Monday, April 9, 2018 6:34 PM To: Paul Barrett Subject: Re: FW: Why you should invest in Saudi Arabia no On Mon, Apr 9, 2018 at 2:04 PM, Paul Barrett wrote: Hi Jeffrey Any thoughts on the Saudi stock market? They are mak=ng a big deal of the MSCI inclusion. I personally don't like the l=ng term outlook given where the world is headed with electric vehicles and=more efficient energy consumption. Paul Barrett Alpha Group Capital LLC 142 W 57th Street, 11th Floor,=New York, NY 10019 =/span> From: Martin Zeman Sent: Monday, April 09, 2018 12:33 PM To: Paul Barrett Cc: Stewart Oldfield • = ; Subject: Why you should invest in Saudi Arabia Paul, >; Xavier Avila EFTA_R1_01595056 EFTA02479416 Further to our call on Saudi stocks:</=> See attached a 2-pager on the recent announcement fr=m our research: • Saudi Arabia included in FTSE Secondary EM Index to happen in 5 stages, =rom March-19 to Dec-19 • This could translate to inflow= of $4.5bn into their equity market * We estimate Sabic=to get $727M, Al Rajhi $504M, National Commercial Bank $385M (see table in=the attached pdf) • MSCI EM decision announced in June 2018 • If t=ey get in -> $39bn inflows and the actual inclusion would happen in Jun= 2019 • These flows are already happening now: $619M in=lows in Jan-18 (highest on record); $=64M in Feb-18 Read this article on Bloomberg about what happens to=the stock market once the actual inclusion happens. History shows that the=biggest appreciation happens in the run-up to these inclusions so we have =bout 12-18 months. https://www.bloomberg.com/news/articles/2018-04-01/=wbr>saudi-arabian-emerging-market-status-comes- with-sobering-his=ory chttps://www.bloomberg.com/news/articles/2=18-04-01/saudi-arabian-emerging-market-status- comes-with-sobering-history> </=pan> And I think this one is an interesting read:<=> http://time.com/longf=rm/mohammed-bin-salman/ <http://time=com/longform/mohammed-bin-salman/> DB facilitates two ways to invest:</=> 1/ Via Participatory Notes — fully funded=/u> 2/ Equity Swaps — 2x leverage, ISDA needed. 3/ We charge 50bps for trading, the funding on the e=uity swap is Libor + 150bps 2 EFTA_R1_01595057 EFTA02479417 This communication may contain confidential and/or privileged information. =f you are not the intended recipient (or have received this communication =n error) please notify the sender immediately and destroy this communicati=n. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidde=. Please refer to ht=ps://db.com/disclosures chttps://db.com/disclosures> for additional EU corporate and regulatory dis=losures. Deutsche Bank does not render legal or tax advice, and the information cont=ined in this communication should not be regarded as such. =AO please note The information contained i= this communication is confidential, may be attorney-client privileged,=may constitute inside information, and is intended only for the use =f the addressee. It is the property of JEE Unauthorized use, disclos=re or copying of this communication or any part thereof is strictly pro=ibited and may be unlawful. If you have received this communication =n error, please notify us immediately by return e-mail or by e-mail to =a href="mailto:[email protected]" target="_blank">jeevacation@gmai=.com, and destroy this communication and all copies thereof, inc=uding all attachments. copyright -all rights reserved 3 EFTA_R1_01595058 EFTA02479418