EFTA Document EFTA01364388

Liquid Alternatives for Diversification 'Liquid Alternatives' have recently emerged as a source of portfolio diversification, providing returns previously associated only with hedge funds. — Liquid Alternatives are attractive to investors that are constrained from making substantial allocations to HFs due to liquidity. — Academic research has shown that a significant portion of HF returns are not manager-specific alpha and are systematically replicable. — This is Risk Premia / Alternative Beta, which are low-cost, systematic, liquid alternative investments - DB CB&S is a market leader in the Risk Premia space with over 12bn USD strategy AUM raised in the past three years. - Some of the world's largest and most sophisticated investors are leading the way in this space. 1 Hedge Fund Returns "Replicable Alpha" (aka Risk Premia / Alternative Beta) Traditional Beta CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL SDNY_GM_00201105 DB-SDNY-0054921 EFTA01364388