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9 May 2017

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Date9 May 2017

Deutsche BankMarkets Research

House View Portfolio - Adjusting thecourseHouse View Update as of May 5th 2017Six months after the US-elections, and with the French presidential electionbehind us, we continue to favor equities over fixed income, and remain outof commodities. However we have made some significant adjustment withinspecific asset class allocations to adjust for equity market differences, anddevelopments on the credit and rates space. More specifically, we take a morebalanced approach to risk in developed equity markets, and a more targetedapproach in EM. While shortening duration, and adding credit risk in debtmarkets.

Our HVP is up 30.4% since its launch on Oct 2, 2012, and 8.2% higher sincethe last rebalancing on Nov 18, 2017. In the meantime, our multi-asset-classbenchmark is 12.4% up since the launch of our HVP, and 6.7% up since the lastrebalance, respectively.

Portfolio Updates and New MembershipWe maintained our strategic asset allocation with 70% allotted to equities, 20%to fixed income, and 10% to alternatives via FX. Within equities, we reduced ourallocation to the US (50% to 35%), and increased our Intl equities allocation from20% to 35% via a 25% exposure to Europe and 10% exposure to EM Asia. In theUS, we exited US Broad (-25%), Utilities (-5%), Banks (-10%), and Biotech/Pharma(-10%); and added Mega Cap (+20%), Mega Cap with Tech tilt (+10%), and USFinancials (+5%). In fixed income, we swapped our 15% IG Credit exposure forshort HY Credit, and kept the 5% to Inflation. In alternatives we maintained the10% USD allocation.

Figure 1: New House View Portfolio*

Direction Type

DIA 0.17% 20% Long Core Equity Mega Cap

QQQ 0.20% 10% Long Core Equity Mega Cap Tech Tilt

XLF 0.14% 5% Long Satellite Equity US Financials

VGK 0.10% 25% Long Core Equity Europe

EEMA 0.49% 10% Long Satellite Equity EM Asia

SJNK 0.40% 15% Long Core Credit Short High Yield

TIP 0.20% 5% Long Satellite Inflation US TIPs

UUP 0.80% 10% Long Core FX Long USD

ExposurePosition

WeightAsset

Class

Source: Deutsche Bank. *Target Weights. See Figure 2 for old basket and change details

Sebastian Mercado, CFA

Strategist

+1-212-250-8690

Deutsche Bank Securities Inc.

Deutsche Bank does and seeks to do business with companies covered in its research reports. Thus, investors should beaware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should considerthis report as only a single factor in making their investment decision. DISCLOSURES AND ANALYST CERTIFICATIONSARE LOCATED IN APPENDIX 1.MCI (P) 083/04/2017.

Distributed on: 09/05/2017 05:57:07 GMT

0bed7b6cf11c

mailto:[email protected]

9 May 2017


Table Of Contents

The House View Portfolio ................................................. 3House View: Don't dismiss inflation .............................................................. 3Portfolio Commentary ..................................................................................... 3Performance Analysis ..................................................................................... 6Summary of closed & changed portfolio positions ........................................ 7Product Commentary ..................................................................................... 8Portfolio constituents correlations ................................................................ 15

ETF Standard Comparison ............................................. 16

Page 2 Deutsche Bank Securities Inc.

9 May 2017


The House View PortfolioHouse View: Don't dismiss inflation 1

Politics remain a key focus for markets, but the latest developments in Europe arepositive. In France, the first round of the presidential election ruled out the leastmarket-friendly outcome, and although eurosceptic Marine Le Pen is in the run-offas expected, polls suggest reformist Macron should win. The snap election calledin Britain for June is a material positive game-changer for Brexit negotiations.

Beyond politics, focus has been on fading conviction in so-called Trump trades –higher inflation expectations and interest rates and buoyant risk assets – followingspeed bumps on the US domestic agenda and increased geopolitical tension.

But with global macro momentum solid – though off recent highs – and globalgrowth expected to pick-up next year and approach 4% in 2018, do not dismissinflation risks, especially in the US. Indeed the macro backdrop comforts the viewthat we are past peak central bank easing. The Fed will likely raise rates twicemore this year and announce the start of the unwind of its balance sheet. TheECB is on track to announce a taper of its quantitative easing programme laterthis year, but the tone at the April meeting should still be quite cautious.

We have revisited our currency views. The snap UK election caused us to increaseour sterling forecast but did not alter our medium-term bearish stance. We stillexpect the euro to break parity but the sequencing of the ECB's tightening policiesis key: a shift toward rate rises rather than a withdrawal of quantitative easingwould be bullish for the euro. In rates, we expect bond yields to climb beyondnear-term election risk. In credit we expect the low default environment to persist.We see valid counters to the consensus view that European equities shouldoutperform US equities.

Portfolio Commentary

After about 5 months of US-centered markets, other markets around the worldbegan to catch up as the Trump-trade began to lose some steam, and otherregions started to look more attractive following the post-election rally in the USmarket.

At the end of Q1, DB's Global Asset Allocation Strategist 2 remained overweightequities, underweight bonds and cash, moved commodities from neutral tounderweight, and remained neutral to the dollar. In addition, he pointed out thatthe valuation premium for US equities relative to the rest of the world was atthe top of its historical band, while demand-supply still remained supportive.Therefore he moved US equities from overweight to neutral. While, at thesame time, tactically moving European equities from under- to overweight; andremaining underweight Japan, and overweight EM, particularly EM Asia.

1 Taken from "The House View: Don't dismiss inflation" published on April 25, 2017 by Deutsche BankResearch

2 Chadha, Binky. "Have Confidence And Markets Run Ahead?", published on March 28, 2017 by DeutscheBank's Global Asset Allocation team.

Deutsche Bank Securities Inc. Page 3

9 May 2017


Within the US market they still remain overweight exposure to cyclical growth(Industrials and Consumer Discretionary); long Technology pointing out thatbetter growth and rising payouts are not priced in yet; short rates exposure (longFinancials/short Consumer Staples and Utilities); neutral Energy where stocks arealready pricing in much lower oil prices; and neutral Health Care despite cheapvaluation given the political overhang.

On the other hand, macro data surprises turning negative bode for neutral equitypositioning. While there are also valid counters to the European equity strengthconsensus view.

On the Fixed Income front, we expect higher rates both in the US and in Europe aswe get deeper in a rate normalization cycle, and slow down quantitative easing,respectively. While, on the credit front we expect defaults to remain low and,therefore provide a supportive environment for High Yield Credit.

In view of these recent developments, we have decided to maintain the highlevel asset class allocations with Equity at a 70%, Fixed Income at a 20%, andAlternatives at a 10%. However, within each asset class we have made significantchanges to accommodate our portfolio to the current environment.

Figure 2: House View Portfolio Change Details

Old New Direction Type

DIA 0.17% 0% 20% Long Core Equity Mega Cap

VTI 0.04% 25% 0% Long Core Equity US Broad

QQQ 0.20% 0% 10% Long Core Equity Mega Cap Tech Tilt

IBB 0.47% 10% 0% Long Satellite Equity US Biotech/Pharma

XLF 0.14% 0% 5% Long Satellite Equity US Financials

KBWB 0.35% 10% 0% Long Satellite Equity US Banks

XLU 0.14% 5% 0% Long Satellite Equity US Utilities

VGK 0.10% 0% 25% Long Core Equity Europe

EEMA 0.49% 0% 10% Long Satellite Equity EM Asia

VXUS 0.11% 20% 0% Long Core Equity Global ex US

SJNK 0.40% 0% 15% Long Core Credit Short High Yield

LQD 0.15% 15% 0% Long Core Credit Inv. Grade

TIP 0.20% 5% 5% Long Satellite Inflation US TIPs

UUP 0.80% 10% 10% Long Core FX Long USD

Weight Position Asset

ClassExposure

Source: Deutsche Bank, Bloomberg Finance LP. Highlighted fields are portfolio updates Red: wgt decrease. Green: wgt increase. Gray: ETF update

Within Equities we have decided to reduce the US equity allocation from 50%to 35% of the portfolio. In addition, within US equities we decided to tilt ourportfolio towards Mega Caps and the following sectors: Consumer Discretionary,Industrials, Technology, and Financials. In fact, our combination of 3 ETFsprovided us with an additional 18% in our preferred sectors relative to the S&P 500index (based on ETF weights), and a clear tilt towards Financials, and Technology.


9 May 2017


Figure 3: US Equity Allocation aggregate sector exposuresPortfolio Allocation

Sector / Ticker DIA QQQ XLF Agg. Alloc SPYAgg. Alloc

vs. SPY

Consumer Discretionary 15.1% 21.9% 14.9% 12.4% 2.5%

Consumer Staples 6.7% 5.8% 5.5% 9.2% -3.7%

Energy 6.2% 3.5% 6.3% -2.7%

Financials 16.8% 100.0% 23.9% 14.2% 9.7%

Health Care 12.8% 11.0% 10.5% 13.9% -3.5%

Industrials 20.6% 2.2% 12.4% 10.2% 2.3%

Information Technology 17.6% 58.0% 26.6% 22.7% 4.0%

Materials 2.6% 1.5% 2.8% -1.3%

Real Estate 0.0% 2.9% -2.9%

Telecommunication Services 1.5% 1.0% 1.2% 2.2% -1.1%

Utilities 0.0% 3.1% -3.1%

Agg. Alloc SPYAgg. Alloc

vs. SPY

Overweight 77.9% 59.5% 18.4%

Neutral 16.6% 28.1% -11.5%

Underweight 5.5% 12.3% -6.8%

Source: Deutsche Bank, Bloomberg Finance LP.

Still in Equities, but outside the US, we decided to increase our exposure from20% to 35%, broken down by a 25% allocation to European equities, and a 10%allocation to EM Asian equities. In both cases we adopted a diversified approachboth in terms of market capitalization and geographic diversification.

Within Fixed Income we decided to swap our exposure to Investment GradeCredit for an allocation of the same weight (15%) to Short High Yield Credit inan attempt to reduce rate risk and take advantage of furthering potential spreadcompression. Moreover, we maintained our 5% allocation to Inflation exposurevia TIPs to account for the potential risk for higher inflation on the back of above-trend growth and other pressures, such as from the job market.

Finally, in Alternatives we maintained our 10% allocation to the USD despiterecent pressure, as we still see a case for a strong dollar.

Figure 4: Target Asset Class and Equity allocations

0%

10%

20%

30%

40%

50%

60%

70%

80%

Equity Fixed Income Alternatives

Previous Current

0%

10%

20%

30%

40%

50%

60%

North America Europe Japan Asia ex JP

Previous Current

0%

10%

20%

30%

40%

50%

60%

US DM Intl EM

Previous Current

Source: Deutsche Bank


9 May 2017


Performance Analysis

At a headline level, we compare the performance of our HVP against theperformance of Global equities and of a multi-asset-class benchmark. The Global 3

equities benchmark is represented by ACWI which tracks the MSCI All CountryWorld index, while the multi-asset-class benchmark represents a basket of Globalequity (ACWI), US fixed income (BND), and commodity (DBC) exposures withthe following weights: 50%, 30%, and 20%, respectively. Our HVP is up 30.4%since its Oct 2012 launch, while ACWI and the multi-assetclass benchmark havegained 53.1% and 12.4% during the same period, respectively. The multi assetclass benchmark has been the least volatile with annualized volatility of 8.0%,compared to 10.3% for our HVP and 13.1% for ACWI, since inception.

Figure 5: Portfolio performance since launch

90.0

100.0

110.0

120.0

130.0

140.0

150.0

160.0

Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17

No

rmaliz

ed

Le

ve

l

(10

0)

House View Port. ACWI Bnchmk

Source: Deutsche Bank, FactSet, Performance corresponds to Total Returns and it does not include transaction costs

Since the last rebalancing date on Nov 18, 2016, the HVP advanced 8.2% vs.a 6.7% gain for the benchmark. Most asset classes saw positive performanceduring this period, with the exception of Commodities and a long position on theUSD. More specifically, our portfolio saw strong performance and contributionsfrom the positions in Global ex US equities, and US Broad equities, while USUtilities were also a strong performer.

Figure 6: Performance by position

-5% 0% 5% 10% 15% 20%

Fixed Income (BND)

Comdty (DBC)

Equity (ACWI)

FX Long USD (UUP)

US Tips (TIP)

IG Credit (LQD)

Eq. Global Ex US (VXUS)

Eq. US Bio/Pharma (IBB)

Eq. US Banks (KBWB)

Eq. US Utilities (XLU)

Eq. US Broad (VTI)

Performance

Bnchm

rk

Ho

use V

iew

Po

rt.

Source: Deutsche Bank, FactSet. Total Return performance from Nov 18, 2016 to May 5, 2017

Figure 7: Performance contribution by position

-2.0% 0.0% 2.0% 4.0% 6.0% 8.0%

Fixed Income (BND)

Comdty (DBC)

Equity (ACWI)

FX Long USD (UUP)

US Tips (TIP)

IG Credit (LQD)

Eq. Global Ex US (VXUS)

Eq. US Bio/Pharma (IBB)

Eq. US Banks (KBWB)

Eq. US Utilities (XLU)

Eq. US Broad (VTI)

Performance

Contribution

Ho

use V

iew

Po

rt.

Bnchm

rk

Source: Deutsche Bank, FactSet. Total Return performance from Nov 18, 2016 to May 5, 2017

3 Since Nov 1, 2013 we have changed the equity benchmark from US Equities (S&P 500 – SPY) to GlobalEquities (MSCI All Country World Index – ACWI). The House View Portfolio is a global multi-asset-classportfolio; therefore a Global equity benchmark is more appropriate than a US-centric one.


9 May 2017


Summary of closed & changed portfolio positions

Figure 8: Details for closed & changed positions (most recent changes on top)

Ticker ExposureOpen

Weight

Close

Weight

Weight

ChangeOPEN CLOSED Exit/Chg Performance

VTI US Broad 25.0% 0.0% -25.0% 18-Nov-16 5-May-17 Full 10.54%

XLU US Utilities 5.0% 0.0% -5.0% 18-Nov-16 5-May-17 Full 13.69%

KBWB US Banks 10.0% 0.0% -10.0% 18-Nov-16 5-May-17 Full 8.80%

IBB US Biotech/Pharma 10.0% 0.0% -10.0% 18-Nov-16 5-May-17 Full 4.06%

VXUS Global ex US 20.0% 0.0% -20.0% 18-Nov-16 5-May-17 Full 16.82%

LQD Credit - Investment Grade 15.0% 0.0% -15.0% 30-Jun-16 5-May-17 Full -0.65%

USMV US LC Min Vol 15.0% 0.0% -15.0% 9-Feb-16 18-Nov-16 Full 12.22%

EFAV Equity - DM Intl Min Vol 20.0% 0.0% -20.0% 30-Jun-16 18-Nov-16 Full -7.05%

XLU US Utilities 10.0% 5.0% -5.0% 9-Feb-16 18-Nov-16 Partial 1.82%

IEF Rates - Intermediate UST 20.0% 0.0% -20.0% 9-Feb-16 18-Nov-16 Full -3.22%

IAU Cmdty - Gold 15.0% 0.0% -15.0% 30-Jun-16 18-Nov-16 Full -8.86%

UUP FX - Long USD 5.0% 10.0% 5.0% 9-Feb-16 18-Nov-16 Increase 5.05%

KBWB US Banks 5.0% 0.0% -5.0% 9-Feb-16 30-Jun-16 Full 9.77%

EFAV Equity - DM Intl Min Vol 25.0% 20.0% -5.0% 9-Feb-16 30-Jun-16 Partial 8.77%

IAU Cmdty - Gold 10.0% 15.0% 5.0% 9-Feb-16 30-Jun-16 Increase 11.34%

LQD Credit - Investment Grade 10.0% 15.0% 5.0% 7-Oct-15 30-Jun-16 Increase 7.70%

QQQ Equity - US Large Caps 15.0% 0.0% -15.0% 7-Oct-15 9-Feb-16 Full -8.54%

XLU US Utilities 5.0% 10.0% 5.0% 7-Oct-15 9-Feb-16 Increase 8.26%

DXJ Equity - Japan 15.0% 0.0% -15.0% 29-Jul-14 9-Feb-16 Full -3.04%

DBEU Europe 25.0% 0.0% -25.0% 7-Oct-15 9-Feb-16 Full -13.17%

EPI Equity - India 5.0% 0.0% -5.0% 5-Jan-15 9-Feb-16 Full -19.56%

FXI Equity - China 5.0% 0.0% -5.0% 12-Jun-15 9-Feb-16 Full -39.60%

IEF Rates - Intermediate UST 10.0% 20.0% 10.0% 7-Oct-15 9-Feb-16 Increase 3.35%

UUP FX - Long USD 10.0% 5.0% -5.0% 6-Mar-13 9-Feb-16 Partial 10.85%

QQQ Equity - US Large Caps 20.0% 15.0% -5.0% 12-Jun-15 7-Oct-15 Partial -2.41%

KBWB US Banks 7.5% 0.0% -7.5% 12-Jun-15 7-Oct-15 Full -9.24%

IBB US Biotech/Pharma 5.0% 0.0% -5.0% 12-Jun-15 7-Oct-15 Full -15.41%

XLU US Utilities 2.5% 5.0% 2.5% 12-Jun-15 7-Oct-15 Increase 4.06%

DBEU Europe 20.0% 25.0% 5.0% 12-Jun-15 7-Oct-15 Increase -5.45%

HYG Credit - High Yield 10.0% 0.0% -10.0% 5-Jan-15 7-Oct-15 Full -0.64%

QQQ Equity - US Large Caps 25.0% 20.0% -5.0% 5-Jan-15 12-Jun-15 Partial 7.46%

BBH US Biotech 5.0% 0.0% -5.0% 29-Jul-14 12-Jun-15 Full 35.54%

XRT US Retail 5.0% 0.0% -5.0% 5-Jan-15 12-Jun-15 Full 5.97%

XLU US Utilities 5.0% 2.5% -2.5% 5-Jan-15 12-Jun-15 Partial -8.50%

HEDJ Eurozone 10.0% 0.0% -10.0% 5-Jan-15 12-Jun-15 Full 17.37%

ASHR China 5.0% 0.0% -5.0% 5-Jan-15 12-Jun-15 Full 47.28%

KBWB US Banks 5.0% 7.5% 2.5% 29-Jul-14 12-Jun-15 Increase 13.10%

QQQ Equity - US Large Caps 15.0% 25.0% 10.0% 29-Jul-14 5-Jan-15 Increase 5.64%

EUFN Equity - European Fin. 5.0% 0.0% -5.0% 31-Oct-13 5-Jan-15 Full -9.24%

EWG Equity - Germany 5.0% 0.0% -5.0% 29-Jul-14 5-Jan-15 Full -12.15%

EWP Equity - Spain 5.0% 0.0% -5.0% 29-Jul-14 5-Jan-15 Full -17.51%

EZU Equity - Eurozone 5.0% 0.0% -5.0% 29-Jul-14 5-Jan-15 Full -13.74%

FXI Equity - China 7.5% 0.0% -7.5% 29-Jul-14 5-Jan-15 Full 2.70%

GMF Equity - EM Asia Pacific 5.0% 0.0% -5.0% 29-Jul-14 5-Jan-15 Full -4.19%

EPI Equity - India 7.5% 5.0% -2.5% 29-Jul-14 5-Jan-15 Partial -0.60%

Source: Deutsche Bank, FactSet. Performance corresponds to Total Returns


9 May 2017


Figure 9: Details for closed & changed positions (cont)

Ticker ExposureOpen

Weight

Close

Weight

Weight

ChangeOPEN CLOSED Exit/Chg Performance

PCY Credit - EM Debt 5.0% 0.0% -5.0% 29-Jul-14 5-Jan-15 Full -2.54%

VTIP Inflation - Short Term TIPs 5.0% 0.0% -5.0% 29-Jul-14 5-Jan-15 Full -2.69%

QDF Equity - US Divs. 15.0% 0.0% -15.0% 14-Feb-14 29-Jul-14 Full 8.66%

QQQ Equity - US Large Caps 20.0% 15.0% -5.0% 14-Feb-14 29-Jul-14 Partial 8.55%

EWG Equity - Germany 10.0% 5.0% -5.0% 14-Feb-14 29-Jul-14 Partial -3.15%

EZU Equity - Eurozone 15.0% 5.0% -10.0% 14-Feb-14 29-Jul-14 Full 0.18%

JNK Credit - HY Debt 5.0% 0.0% -5.0% 14-Feb-14 29-Jul-14 Full 2.78%

BKLN Credit - Senior Loans 5.0% 0.0% -5.0% 14-Feb-14 29-Jul-14 Full 1.25%

DXJ Equity - Japan 10.0% 15.0% 5.0% 14-Feb-14 29-Jul-14 Increase 8.64%

FXI Equity - China 5.0% 7.5% 2.5% 14-Feb-14 29-Jul-14 Increase 16.13%

JNK Credit - HY Debt 10.0% 5.0% -5.0% 3-May-13 14-Feb-14 Partial 2.64%

MCHI Equity - China 7.5% 0.0% -7.5% 28-Nov-12 14-Feb-14 Full 3.94%

IVV Equity - US Large Caps 20.0% 0.0% -20.0% 7-Feb-13 14-Feb-14 Full 24.40%

VGT Equity - US Technology 5.0% 0.0% -5.0% 3-May-13 14-Feb-14 Full 23.25%

BKLN Credit - Senior Loans 10.0% 5.0% -5.0% 7-Feb-13 14-Feb-14 Partial 4.03%

VIG Equity - US Divs. 20.0% 0.0% -20.0% 3-May-13 14-Feb-14 Full 10.68%

DXJ Equity - Japan 7.5% 10.0% 2.5% 3-May-13 14-Feb-14 Increase -0.32%

XLF Equity - US Financials 5.0% 0.0% -5.0% 3-May-13 31-Oct-13 Full 9.97%

IVV Equity - US Large Caps 25.0% 15.0% -10.0% 7-Feb-13 13-Aug-13 Partial 13.49%

MCHI Equity - China 10.0% 7.5% -2.5% 28-Nov-12 3-May-13 Partial 3.00%

SDY Equity - US Divs. 25.0% 0.0% -25.0% 7-Feb-13 3-May-13 Full 9.71%

HYS Credit - High Yield 10.0% 0.0% -10.0% 7-Feb-13 3-May-13 Full 2.98%

IVV Equity - US Large Caps 35.0% 25.0% -10.0% 7-Feb-13 3-May-13 Partial 7.33%

IAU Cmdty - Gold 5.0% 0.0% -5.0% 1-Oct-12 6-Mar-13 Full -10.93%

FXE FX - EURUSD 5.0% 0.0% -5.0% 1-Oct-12 6-Mar-13 Full 0.64%

DVY Equity - US Divs. 20.0% 0.0% -20.0% 1-Oct-12 7-Feb-13 Full 5.74%

USMV Equity - US Low Vol. 25.0% 0.0% -25.0% 1-Oct-12 7-Feb-13 Full 4.10%

PCY Credit - EM Debt 10.0% 0.0% -10.0% 1-Oct-12 7-Feb-13 Full 0.40%

JNK Credit - HY Debt 10.0% 0.0% -10.0% 1-Oct-12 7-Feb-13 Full 3.33%

IAU Cmdty - Gold 15.0% 5.0% -10.0% 1-Oct-12 7-Feb-13 Partial -5.96%

FXE FX - EURUSD 10.0% 5.0% -5.0% 1-Oct-12 7-Feb-13 Partial 3.81%

DVY Equity - US Divs. 25.0% 20.0% -5.0% 1-Oct-12 28-Nov-12 Partial -0.87%

IAU Cmdty - Gold 20.0% 15.0% -5.0% 1-Oct-12 28-Nov-12 Partial -3.24%

Source: Deutsche Bank, FactSet. Performance corresponds to Total Returns

Product Commentary

US Equity ExposureWe looked for products that could provide a good fit for our desired marketcapitalization and sector tilt. More specifically, we looked for ETFs that couldprovide exposure to Mega Caps along with a sector bias favoring ConsumerDiscretionary, Industrials, Financials, and Technology, while reducing exposureto Consumer Staples, and Utilities. At the same time, we considered liquidityand cost levels that would allow large trades and low on-going fees. Most broadsector market-cap weighted US equity ETFs would not provide our intendedaggregate US exposure, therefore we analyzed six ETFs that provide alternativemethodologies to the traditional market cap benchmarks. We consider all of thesecandidates as investable and portfolio-worthy products, however some adjustbetter to the designs of our portfolio (See Figure 10 for details).

For example, QQEW, and QQQE both track the NASDAQ-100 index using an equalweighting approach. QQQE is cheaper, but QQEW is larger and with slightly better


9 May 2017


liquidity. Both provide an alternative to the overly-concentrated QQQ (NASDAQ100 index). However, we were not able to obtain our intended aggregate exposureby themselves or when blending them with other ETFs, and the costs were higherthan our cost target (

9 May 2017


geographic, market cap, and single company exposure; with good liquidity at alow cost (See Figure 12 for more details).

HEDJ, EZU, and FEZ are all Eurozone focus, therefore we passed on them. HEDJoffers a currency hedged alternative, EZU offers traditional market cap access,while FEZ offers a lower cost Mega Cap access to EU companies.

On the European front, IEV provides traditional market cap access with the highestprice tag (60bps). DBEU provides currency hedged access to Europe, howeverwe were not looking at implementing currency views outside our Long USDposition. IEUR is a good alternative for a cheap core access to Europe at 10bps,and diversified exposure, however liquidity is still developing relative to otherproducts.

Finally, VGK met all of our sought criteria, providing diversified access to marketcap segments and countries, at a low cost of 10bps, and with established liquiditynot only for buy-and-hold positions, but also for tactical trading. In fact, the on-exchange liquidity, bid/ask spreads, options activity, short interest activity, andinstitutional ownership all suggest that VGK is the ETF more likely to be utilizedfor non-investment short term purposes for European equities.

EM Asian Equity ExposureThere are two good candidates for regional exposure offering access to EM Asia.Both are very similar in terms of size (>$300m), and liquidity. But they have onebig difference: South Korea. EEMA includes South Korea, and GMF doesn't. Inour case we wanted to have the diversification benefits that came from addingSouth Korea to the EM Asian exposure, therefore we chose EEMA (See Figure13 for details).

Short Duration High Yield Credit ExposureThere are three very good alternatives to implement a short duration HY creditexposure. SJNK, SHYG, and HYS all have valid attributes to be considered in anyinvestors' portfolio. SJNK and SHYG both follow a passive strategy and come at alower expense ratio of 40bps and 30bps, respectively; while HYS follows an activestrategy and comes with a higher price tag of 55bps. SJNK and HYS have moreliquid profiles, relative to SHYG. And despite the similarities in portfolio metrics,HYS has a higher yield, and spread; followed by SJNK and SHYG; while durationrisk is somewhat similar among them. Given a combination of liquidity, cost, andportfolio metrics we decided to use SJNK in the HVP (See Figure 14 for additionaldetails)

In addition to these three ETFs, we also feature two High Yield Credit ETFs withinterest rate-hedge. These products (HYHG, HYGH) offer the traditional creditexposure of HY Corporate ETFs, while hedging the rate risk by using interest rateswaps. These could also be considered as viable options to get access to highyield credit with shorter duration risk (in this case actually hedged).


9 May 2017


Figure 10: Product comparison for US Equity Exposure

Ticker SPY DIA QQQ QQEW QQQE BFOR XRLV

Focus Large Cap Mega CapTech tilt ex

Financials

Tech Tilt +

Equal Wgt

Tech Tilt +

Equal Wgt

Fundamental +

Equal Wgt

Ex Rate

SensitiveIssuer SSGA SSGA PowerShares First Trust Direxionshares ALPS PowerShares

Index Family S&P Dow Jones NASDAQ NASDAQ NASDAQ Barron's S&P

TER 0.09% 0.17% 0.20% 0.60% 0.35% 0.65% 0.25%

AUM $MM 234,182 16,327 49,897 512 129 197 120

20D ADV $MM 18,730.8 580.4 2,716.4 3.7 1.0 0.4 0.5

Implied Liquidity $MM 10,316 2,870 1,057 601 607 7 995

Total Liquidity $MM 29,047 5,586 1,637 605 608 7 996

5D Bid/Ask Spread $ 0.01 0.01 0.01 0.03 0.08 0.09 0.03

5D Bid/Ask Spread bps 0.4 0.6 0.7 6.1 20.9 24.8 8.7

Short Int as % Shr. Out 18.2% 7.2% 13.9% 0.6% 0.4% 0.2% 0.3%

Option Not. Volume $MM 66,505.4 610.4 6,845.9 0.0 0.0 0.0 -

Option Not. Open Int. $MM 540,271.8 8,841.7 61,140.4 - 1.2 0.0 -

Ownership SPY DIA QQQ QQEW QQQE BFOR XRLV

# of Institutional Owners 1798 481 936 61 28 31 36

Institutional 75% 33% 41% 52% 17% 33% 67%

Retail 25% 67% 59% 48% 83% 67% 33%

Top 5 Inst. Investor Types SPY DIA QQQ QQEW QQQE BFOR XRLV

1 Inv. Adv. (29%) Inv. Adv. (15%) Inv. Adv. (15%) PB/WM (28%) Inv. Adv. (11%) PB/WM (29%) Inv. Adv. (61%)

2 PB/WM (16%) PB/WM (12%) PB/WM (11%) Inv. Adv. (24%) PB/WM (3%) Inv. Adv. (2%) PB/WM (4%)

3 Broker (12%) Broker (3%) MF (5%) Broker (1%) Broker (3%) Broker (2%) MF (2%)

4 HF (6%) HF (1%) Broker (4%) HF (0%) Arbitrage (0%) HF (0%) Broker (1%)

5 MF (6%) MF (1%) HF (3%) HF (0%)

Exposure by Market Cap SPY DIA QQQ QQEW QQQE BFOR XRLV

Large Cap 99.7% 99.9% 99.8% 99.0% 98.9% 39.5% 100.0%

Mid Cap 0.2% 0.1% 1.0% 1.0% 25.5%

Small Cap 34.7%

Exposure by Sectors SPY DIA QQQ QQEW QQQE BFOR XRLV

Consumer Discretionary 12.4% 15.1% 21.9% 26.9% 26.9% 21.4% 13.4%

Consumer Staples 9.2% 6.7% 5.8% 4.9% 4.9% 3.3% 8.2%

Energy 6.3% 6.2% 3.6% 1.0%

Financials 14.2% 16.8% 17.5% 16.8%

Health Care 13.9% 12.8% 11.0% 19.3% 19.3% 13.0% 14.1%

Industrials 10.2% 20.6% 2.2% 6.7% 6.7% 13.6% 25.1%

Information Technology 22.7% 17.6% 58.0% 40.1% 40.1% 20.8% 16.0%

Materials 2.8% 2.6% 5.5% 3.8%

Real Estate 2.9% 0.5% 0.8%

Telecommunication Services 2.2% 1.5% 1.0% 2.0% 2.0% 1.0%

Utilities 3.1% 0.5%

Concentration SPY DIA QQQ QQEW QQQE BFOR XRLV

Total # of Holdings 506 31 107 107 108 401 100

Top 1 3.8% 7.4% 11.9% 1.3% 1.3% 0.4% 1.5%

Top 5 11.6% 30.6% 37.5% 5.9% 5.9% 1.8% 7.0%

Top 10 19.0% 53.1% 51.8% 11.4% 11.4% 3.4% 13.2%

Top 10 Holdings SPY DIA QQQ QQEW QQQE BFOR XRLV

1 AAPL (3.8%) GS (7.4%) AAPL (11.9%) VRTX (1.3%) VRTX (1.3%) TPIXX (0.4%) JNJ (1.5%)

2 MSFT (2.6%) MMM (6.5%) MSFT (8.2%) TSLA (1.2%) TSLA (1.2%) MDXG (0.4%) MMM (1.4%)

3 AMZN (1.8%) BA (6.0%) AMZN (6.9%) LRCX (1.2%) LRCX (1.2%) AKRX (0.4%) RSG (1.4%)

4 FB (1.7%) UNH (5.6%) FB (5.5%) ILMN (1.1%) ILMN (1.1%) HOFT (0.3%) WM (1.4%)

5 XOM (1.7%) IBM (5.2%) GOOG (5.0%) WDC (1.1%) WDC (1.1%) LMAT (0.3%) MCD (1.3%)

6 JNJ (1.6%) HD (5.1%) GOOGL (4.3%) PYPL (1.1%) PYPL (1.1%) GRUB (0.3%) ALL (1.3%)

7 BRK.B (1.5%) AAPL (4.8%) CMCSA (2.8%) CERN (1.1%) CERN (1.1%) ILG (0.3%) KO (1.3%)

8 JPM (1.5%) MCD (4.7%) INTC (2.7%) ISRG (1.1%) ISRG (1.1%) ROG (0.3%) MMC (1.2%)

9 GOOGL (1.4%) JNJ (4.0%) CSCO (2.6%) JD (1.1%) JD (1.1%) FIVE (0.3%) BRK.B (1.2%)

10 GOOG (1.3%) TRV (3.9%) AMGN (1.9%) AMZN (1.1%) AMZN (1.1%) SCSS (0.3%) UPS (1.2%)

Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of May 4th 2017 or latest available. Inv. Adv.: Investment Adviser; PB/WM: Private Bank/Wealth Management; HF: Hedge Fund;PF: Pension Fund; MF: Mutual Fund.


9 May 2017


Figure 11: Product comparison for US Equity Financials Exposure

Ticker XLF VFH IYF FXO FNCL RYF PFI

Focus Large Cap Market Access Market Access Multi Factor Market Access Equal Wgt Momentum

Issuer SSGA Vanguard BlackRock First Trust Fidelity Guggenheim PowerShares

Index Family S&P MSCI Dow Jones AlphaDEX MSCI S&P DWA

TER 0.14% 0.10% 0.43% 0.70% 0.08% 0.40% 0.60%

AUM $MM 22,830 5,740 1,734 1,005 827 285 87

20D ADV $MM 1,894.1 63.0 56.1 10.6 6.6 8.8 0.4

Implied Liquidity $MM 1,457 864 2,314 372 456 595 148

Total Liquidity $MM 3,351 927 2,370 383 463 604 149

5D Bid/Ask Spread $ 0.01 0.01 0.01 0.02 0.02 0.06 0.08


Short Int as % Shr. Out 9.5% 0.2% 6.9% 3.8% 0.0% 0.7% 3.8%

Option Not. Volume $MM 444.8 0.9 0.5 0.0 0.0 - -

Option Not. Open Int. $MM 11,276.0 19.8 16.9 - 0.9 - -

Ownership XLF VFH IYF FXO FNCL RYF PFI


Institutional 66% 49% 53% 64% 32% 51% 81%

Retail 34% 51% 47% 36% 68% 49% 19%

Top 5 Inst. Investor Types XLF VFH IYF FXO FNCL RYF PFI

1 Inv. Adv. (29%) Inv. Adv. (37%) Inv. Adv. (31%) PB/WM (34%) Inv. Adv. (26%) Inv. Adv. (40%) Inv. Adv. (65%)

2 PB/WM (16%) PB/WM (9%) PB/WM (12%) Inv. Adv. (28%) PB/WM (6%) PB/WM (10%) PB/WM (14%)

3 HF (8%) MF (2%) Broker (7%) Broker (2%) Broker (1%) HF (0%) Broker (1%)

4 Broker (6%) Broker (1%) MF (2%) MF (1%) Fam. Of. (0%) Broker (0%) MF (0%)

5 PF (5%) Ins. Co. (1%) HF (1%) HF (0%) Ins. Co. (0%) HF (0%)

Exposure by Market Cap XLF VFH IYF FXO FNCL RYF PFI

Large Cap 99.6% 87.6% 91.5% 76.6% 87.7% 98.2% 65.5%

Mid Cap 0.2% 7.7% 7.8% 23.2% 7.7% 1.7% 24.6%

Small Cap 4.5% 0.5% 0.0% 4.6% 9.8%

Exposure by Industries XLF VFH IYF FXO FNCL RYF PFI

Banks 44.9% 45.9% 32.3% 16.4% 46.3% 25.5% 53.7%

Capital Markets 19.8% 18.8% 14.0% 15.5% 18.8% 31.0% 10.8%

Consumer Finance 5.1% 5.1% 3.6% 6.1% 5.1% 7.2% 1.9%

Diversified Fin. Srvcs 11.1% 6.3% 7.0% 1.1% 6.3% 3.0%

Insurance 18.9% 20.8% 15.2% 25.4% 20.4% 33.1% 27.8%

Mortgage REITs 1.6% 4.9% 1.6% 1.8%

Thrifts & Mort. Fin. 1.4% 0.7% 1.4% 1.0%

Non-Financials 0.0% 0.0% 26.3% 29.7% 0.0% 0.0% 2.9%

Concentration XLF VFH IYF FXO FNCL RYF PFI


Top 1 10.8% 8.9% 6.8% 1.0% 8.8% 1.7% 4.7%

Top 5 43.8% 33.6% 27.6% 5.1% 33.5% 8.3% 21.3%

Top 10 55.9% 43.7% 38.5% 10.1% 43.6% 16.4% 35.4%

Top 10 Holdings XLF VFH IYF FXO FNCL RYF PFI

1 BRK.B (10.8%) JPM (8.9%) BRK.B (6.8%) LPLA (1.0%) JPM (8.8%) NAVI (1.7%) FITB (4.7%)

2 JPM (10.6%) WFC (7.5%) JPM (6.7%) AIZ (1.0%) WFC (7.4%) MCO (1.7%) UNM (4.6%)

3 WFC (8.5%) BAC (6.7%) WFC (5.3%) FAF (1.0%) BAC (6.8%) STT (1.6%) OZRK (4.2%)

4 BAC (8.2%) BRK.B (5.8%) BAC (5.1%) RE (1.0%) BRK.B (5.8%) AIZ (1.6%) JPM (4.1%)

5 C (5.7%) C (4.8%) V (3.7%) SQ (1.0%) C (4.8%) WLTW (1.6%) HBAN (3.8%)

6 GS (2.9%) USB (2.5%) C (3.6%) TROW (1.0%) USB (2.5%) XL (1.6%) PFG (3.3%)

7 USB (2.8%) GS (2.3%) MA (2.4%) NAVI (1.0%) GS (2.3%) CBOE (1.6%) PRU (3.1%)

8 CB (2.2%) AIG (1.8%) GS (1.8%) CXW (1.0%) CB (1.8%) AFL (1.6%) ETFC (2.7%)

9 MS (2.1%) CB (1.8%) USB (1.8%) FNF (1.0%) AIG (1.8%) ALL (1.6%) MKTX (2.5%)

10 AXP (2.0%) AXP (1.7%) CB (1.4%) TRU (1.0%) AXP (1.7%) IVZ (1.6%) WAL (2.5%)



9 May 2017


Figure 12: Product comparison for European Equity Exposure

Ticker VGK IEV DBEU IEUR HEDJ EZU FEZ

Geo Focus Europe Europe Europe Europe Eurozone Eurozone Eurozone

Strategy Focus Cheap Core Market Access FX Hedged Cheap Core FX Hedged Market Access Mega Cap

Issuer Vanguard BlackRock Deutsche AM BlackRock WisdomTree BlackRock SSGA

Index Family FTSE S&P MSCI MSCI WisdomTree MSCI STOXX

TER 0.10% 0.60% 0.45% 0.10% 0.58% 0.48% 0.29%

AUM $MM 12,367 2,739 2,668 2,073 9,872 10,675 3,504

20D ADV $MM 213.5 24.0 35.9 15.6 110.3 268.1 184.3

Implied Liquidity $MM 191 2,213 2,513 219 385 744 1,633

Total Liquidity $MM 404 2,237 2,549 235 495 1,012 1,817

5D Bid/Ask Spread $ 0.01 0.01 0.01 0.02 0.01 0.01 0.01


Short Int as % Shr. Out 2.1% 1.2% 1.4% 0.4% 1.5% n.a. 7.4%

Option Not. Volume $MM 20.4 0.1 0.0 - 10.3 1.3 107.0

Option Not. Open Int. $MM 810.2 7.0 - - 340.3 35.8 3,536.1

Ownership VGK IEV DBEU IEUR HEDJ EZU FEZ


Institutional 49% 40% 60% 72% 47% 25% 38%

Retail 51% 60% 40% 28% 53% 75% 62%

Top 5 Inst. Investor Types VGK IEV DBEU IEUR HEDJ EZU FEZ

1 Inv. Adv. (28%) PB/WM (18%) Inv. Adv. (33%) Inv. Adv. (59%) Inv. Adv. (24%) Inv. Adv. (17%) Inv. Adv. (16%)

2 PB/WM (12%) Inv. Adv. (17%) PB/WM (18%) PB/WM (12%) PB/WM (18%) PF (7%) PB/WM (13%)

3 MF (2%) PF (2%) Broker (6%) Broker (1%) Broker (2%) HF (0%) Broker (6%)

4 Broker (2%) MF (1%) Ins. Co. (1%) MF (0%) MF (2%) MF (0%) MF (3%)

5 Foun/Endo. (1%) Broker (1%) MF (0%) Ins. Co. (0%) PF (1%) PB/WM (0%) HF (1%)

Exposure by Market Cap VGK IEV DBEU IEUR HEDJ EZU FEZ

Large Cap 87.4% 98.2% 99.1% 88.1% 96.1% 98.8% 99.7%

Mid Cap 7.3% 1.0% 0.9% 8.0% 3.2% 0.6% 0.0%

Small Cap 3.3% 3.3% 0.6%

Exposure by Country VGK IEV DBEU IEUR HEDJ EZU FEZ

United Kingdom 24.7% 24.3% 24.1% 24.7% 4.1% 3.2% 3.0%

Switzerland 13.7% 14.9% 14.6% 13.8% 1.3% 0.2%

Germany 13.9% 14.3% 14.9% 14.3% 25.0% 29.0% 32.9%

France 14.6% 15.5% 16.1% 14.9% 27.2% 31.6% 36.0%

Netherlands 5.9% 6.4% 6.7% 6.4% 8.9% 8.2% 6.6%

Spain 5.2% 5.3% 5.4% 5.3% 19.3% 10.6% 10.9%

Sweden 4.9% 4.6% 4.5% 5.0%

Italy 3.7% 3.4% 3.1% 3.6% 1.6% 6.0% 4.6%

Other Europe Non-EU 5.9% 3.7% 3.8% 4.0%

Other Eurozone 6.0% 5.4% 5.3% 6.1% 12.5% 10.4% 5.7%

Other 1.2% 1.5% 1.6% 1.4% 0.7% 0.0%

Exposure by Sectors VGK IEV DBEU IEUR HEDJ EZU FEZ

Consumer Discretionary 11.3% 10.7% 11.0% 11.3% 18.2% 13.9% 11.4%

Consumer Staples 12.5% 14.0% 13.9% 12.7% 16.0% 10.5% 10.8%

Energy 6.3% 7.0% 6.7% 6.2% 1.0% 5.1% 6.2%

Financials 19.6% 20.6% 20.8% 19.8% 14.5% 20.4% 22.5%

Health Care 12.2% 13.1% 12.9% 12.3% 9.5% 8.0% 10.4%

Industrials 14.4% 13.3% 13.4% 14.6% 18.8% 15.2% 14.5%

Information Technology 4.6% 4.0% 4.5% 5.2% 7.8% 7.5% 6.9%

Materials 7.9% 7.9% 8.0% 7.9% 8.4% 8.3% 6.3%

Real Estate 2.3% 1.1% 1.4% 2.4% 1.7% 0.9%

Telecommunication Services 3.6% 3.9% 4.0% 3.7% 5.6% 4.4% 5.2%

Utilities 3.4% 3.6% 3.5% 3.4% 0.2% 4.5% 4.6%

Concentration VGK IEV DBEU IEUR HEDJ EZU FEZ


Top 1 2.5% 2.9% 2.7% 2.4% 5.6% 2.7% 4.7%

Top 5 9.3% 11.1% 10.1% 9.0% 25.3% 12.4% 21.0%

Top 10 15.1% 17.9% 16.4% 14.6% 43.8% 22.7% 37.6%

Top 10 Holdings VGK IEV DBEU IEUR HEDJ EZU FEZ

1 NESN VX (2.5%) NESN VX (2.9%) NESN VX (2.7%) NESN VX (2.4%) TEF SM (5.6%) FP FP (2.7%) FP FP (4.7%)

2 ROG VX (1.9%) NOVN VX (2.4%) ROG VX (2.1%) ROG VX (1.9%) BBVA SM (5.6%) SAN FP (2.6%) SIE GR (4.5%)

3 NOVN VX (1.9%) ROG VX (2.2%) NOVN VX (2.0%) NOVN VX (1.7%) SIE GR (4.8%) SIE GR (2.6%) SAN FP (4.3%)

4 HSBA LN (1.7%) HSBA LN (2.0%) HSBA LN (1.9%) HSBA LN (1.6%) SAN SM (4.8%) BAYN GR (2.3%) BAYN GR (3.8%)

5 BATS LN (1.3%) BATS LN (1.5%) BATS LN (1.4%) BATS LN (1.3%) SAN FP (4.4%) SAP GR (2.3%) SAP GR (3.8%)

6 RDSA LN (1.2%) FP FP (1.5%) FP FP (1.3%) FP FP (1.2%) ABI BB (4.3%) SAN SM (2.2%) SAN SM (3.6%)

7 FP FP (1.2%) RDSA LN (1.4%) RDSA LN (1.3%) RDSA LN (1.1%) DAI GR (4.2%) BAS GR (2.1%) BAS GR (3.4%)

8 BP/ LN (1.2%) SAN FP (1.3%) SIE GR (1.3%) SAN FP (1.1%) UNA NA (3.7%) ALV GR (2.0%) ABI BB (3.3%)

9 SIE GR (1.1%) SIE GR (1.3%) SAN FP (1.2%) SIE GR (1.1%) MC FP (3.3%) UNA NA (2.0%) ALV GR (3.2%)

10 RDSB LN (1.1%) BP/ LN (1.3%) BP/ LN (1.2%) BP/ LN (1.1%) BAYN GR (3.0%) ABI BB (2.0%) UNA NA (3.1%)



9 May 2017


Figure 13: Product comparison for EM Asia Equity ExposureTicker GMF EEMA

Issuer SSGA BlackRock

Index Family S&P MSCI

TER 0.49% 0.49%

AUM $MM 342 333

20D ADV $MM 1.7 1.5

Implied Liquidity $MM 0 486

Total Liquidity $MM 2 487

5D Bid/Ask Spread $ 0.20 0.16

5D Bid/Ask Spread bps 22.7 26.5

Short Int as % Shr. Out 1.4% 0.3%

Option Not. Volume $MM 0.0 0.0

Option Not. Open Int. $MM 0 0

Ownership GMF EEMA

# of Institutional Owners 74 38

Institutional 49% 41%

Retail 51% 59%

Top 5 Inst. Investor Types GMF EEMA

1 PB/WM (25%) PB/WM (20%)

2 Inv. Adv. (19%) Broker (10%)

3 Broker (4%) Inv. Adv. (9%)

4 MF (1%) MF (1%)

5 HF (0%) Ins. Co. (1%)

Exposure by Country GMF EEMA

Large Cap 79.1% 89.4%

Mid Cap 11.2% 9.0%

Small Cap 9.3% 1.4%

Exposure by Country GMF EEMA

China 42.7% 36.2%

South Korea 21.3%

Taiwan 22.1% 17.2%

India 18.1% 12.3%

Malaysia 4.3% 3.5%

Thailand 4.2% 3.1%

Indonesia 4.1% 3.6%

Philippines 2.3% 1.7%

Hong Kong 1.8% 0.7%

Other 0.5% 0.6%

Concentration GMF EEMA

Total # of Holdings 743 555

Top 1 5.6% 6.1%

Top 5 18.0% 22.8%

Top 10 25.4% 30.6%

Top 10 Holdings GMF EEMA

1 700 HK (5.6%) 005930 KS (6.1%)

2 BABA US (4.1%) 700 HK (5.5%)

3 TSM US (3.9%) 2330 TT (5.0%)

4 939 HK (2.4%) BABA US (4.0%)

5 941 HK (2.0%) 939 HK (2.1%)

6 2317 TT (1.7%) 941 HK (2.0%)

7 1398 HK (1.6%) 2317 TT (1.6%)

8 BIDU US (1.6%) BIDU US (1.5%)

9 HDFC IN (1.3%) 1398 HK (1.5%)

10 RIGD LI (1.2%) 3988 HK (1.2%)

Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of May 4th 2017 or latest available. Inv. Adv.: Investment Adviser; PB/WM:Private Bank/Wealth Management; HF: Hedge Fund; PF: Pension Fund; MF: Mutual Fund.


9 May 2017


Figure 14: Product comparison for Short Duration HY Credit ExposureTicker SJNK SHYG HYS HYHG HYGH

FocusShort Duration

HY

Short Duration

HY

Short Duration

HY

Interest Rate

Hedged HY

Interest Rate

Hedged HY

Issuer SSGA BlackRock PIMCO ProShares BlackRock

Index Family BBG Barclays iBoxx Active Citigroup iBoxx

TER 0.40% 0.30% 0.55% 0.50% 0.55%

AUM $MM 3,759 2,450 1,879 136 217

20D ADV $MM 47.6 18.7 48.7 1.2 1.3

5D Bid/Ask Spread $ 0.01 0.02 0.05 0.30 0.04

5D Bid/Ask Spread bps 3.7 3.6 5.1 43.4 4.6

Short Int as % Shr. Out 0.1% 0.2% 7.7% n.a. 0.2%

Option Not. Volume $MM 0.0 - 0.0 - -

Option Not. Open Int. $MM 0.7 - 1.3 - -

Ownership SJNK SHYG HYS HYHG HYGH

# of Institutional Owners 224 115 207 n.a. n.a.

Institutional 72% 84% 67% n.a. n.a.

Retail 28% 16% 33% n.a. n.a.

Top 5 Inst. Investor Types SJNK SHYG HYS HYHG HYGH

1 Inv. Adv. (58%) Inv. Adv. (79%) Inv. Adv. (41%) n.a. n.a.

2 PB/WM (13%) PB/WM (5%) Broker (14%) n.a. n.a.

3 PF (1%) Broker (0%) PB/WM (9%) n.a. n.a.

4 Broker (1%) HF (0%) MF (2%) n.a. n.a.

5 MF (1%) MF (0%) HF (0%) n.a. n.a.

Portfolio Characteristics SJNK SHYG HYS HYHG HYGH

Yield-to-Worst 6.3 5.36 6.82 5.8 5.34

Modified Duration 2.06 2.15 2.24 Hedged Hedged

Option-Adj-Spread (bps) 473 364 518 365 326

Credit Quality (BBG) B+ B+ B+ B+ B+

Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of May 4th 2017 or latest available. Inv. Adv.: Investment Adviser; PB/WM:Private Bank/Wealth Management; HF: Hedge Fund; PF: Pension Fund; MF: Mutual Fund.

Portfolio constituents correlations

Pair-wise correlations within the HVP provide a high level idea of the potentialdiversification benefits of the portfolio constituents.

Figure 15: Correlations for HVP constituents and main asset classes

EquityReal

Estate

Fixed

IncomeComdty Crncy

DIA QQQ XLF VGK EEMA SJNK TIP UUP SPY VNQ BND DBC UUP

DIA 1.00 0.96 0.38 -0.24 0.31 -0.13

QQQ 0.81 1.00 0.90 0.37 -0.07 0.19 -0.14

XLF 0.84 0.59 1.00 0.80 0.15 -0.51 0.23 0.03

VGK 0.74 0.70 0.62 1.00 0.78 0.27 -0.12 0.35 -0.52

EEMA 0.62 0.68 0.41 0.67 1.00 0.68 0.36 0.12 0.34 -0.34

SJNK 0.65 0.67 0.51 0.65 0.65 1.00 0.73 0.43 0.06 0.43 -0.21

TIP -0.10 -0.01 -0.32 -0.02 0.20 0.12 1.00 -0.04 0.34 0.83 0.13 -0.36

UUP -0.13 -0.14 0.03 -0.52 -0.34 -0.21 -0.36 1.00 -0.15 -0.13 -0.35 -0.24 1.00

1 Year

Daily

Correl.

Portfolio Constituents

Source: Deutsche Bank, FactSet. As of 5 May 2017


9 May 2017


ETF Standard ComparisonThis section presents standard performance and fee & expense information aboutall the ETFs mentioned in the present report.

Figure 16: Average Annual Total Returns#

Average Annual Total ReturnsData as of Mar 31, 2017

Ticker NameInception

Date One Year Five Year Ten Year

Since

Inception Prospectus available at

ETFs

BBH VanEck Vectors Biotech ETF 12/21/2011 15.21% 22.05% n.a. 25.99% www.vaneck.com

BKLN PowerShares Senior Loan Portfolio 3/3/2011 7.26% 3.38% n.a. 3.18% www.invescopowershares.com

DVY iShares Select Dividend ETF 11/7/2003 15.17% 13.97% 6.29% us.ishares.com

DXJ WisdomTree Japan Hedged Equity Fund 6/16/2006 17.44% 11.61% 1.87% www.wisdomtree.com

EPI WisdomTree India Earnings Fund 2/22/2008 25.59% 5.69% n.a. 0.47% www.wisdomtree.com

EUFN iShares MSCI Europe Financials ETF 2/3/2010 17.66% 5.94% n.a. 1.57% us.ishares.com

EWG iShares MSCI Germany ETF 3/18/1996 14.06% 6.70% 2.41% us.ishares.com

EWP iShares MSCI Spain Capped ETF 3/18/1996 16.85% 5.15% -1.27% us.ishares.com

EZU iShares MSCI Eurozone ETF 7/31/2000 12.31% 6.54% -0.46% us.ishares.com

FXI iShares China Large-Cap ETF 10/8/2004 16.45% 3.63% 3.24% us.ishares.com

GMF SPDR S&P Emerging Asia Pacific ETF 3/23/2007 18.50% 5.38% 5.87% www.spdrs.com

HYS PIMCO 0-5 Year High Yield Corporate Bond Index

ETF6/17/2011 14.34% 5.43% n.a. 5.44% www.pimco.com

IVV iShares Core S&P 500 ETF 5/19/2000 17.11% 13.24% 7.46% us.ishares.com

JNK SPDR Barclays High Yield Bond ETF 12/4/2007 14.81% 4.92% n.a. 5.78% www.spdrs.com

KBWB PowerShares KBW Bank Portfolio 11/1/2011 45.89% 15.04% n.a. 19.71% www.invescopowershares.com

MCHI iShares MSCI China ETF 3/31/2011 18.94% 5.04% n.a. 1.74% us.ishares.com

PCY PowerShares Emerging Markets Sovereign Debt

Portfolio10/11/2007 8.18% 5.76% n.a. 7.05% www.invescopowershares.com

QDF FlexShares Quality Dividend Index Fund 12/19/2012 16.71% n.a. n.a. 14.95% www.flexshares.com

QQQ PowerShares QQQ 3/10/1999 22.48% 15.80% 12.76% www.invescopowershares.com

SDY SPDR S&P Dividend ETF 11/15/2005 14.01% 14.04% 8.00% www.spdrs.com

VTIP Vanguard Short-Term Inflation-Protected Securities

ETF10/16/2012 1.59% n.a. n.a. 0.23% www.vanguard.com

USMV iShares Edge MSCI Min Vol USA ETF 10/20/2011 10.88% 13.43% n.a. 14.66% us.ishares.com

VGT Vanguard Information Technology ETF 1/30/2004 25.37% 14.28% 11.01% www.vanguard.com

VIG Vanguard Dividend Appreciation ETF 4/27/2006 13.14% 11.37% 7.60% www.vanguard.com

XLF Financial Select Sector SPDR Fund 12/22/1998 32.35% 15.19% 0.10% www.spdrs.com

UUP PowerShares DB US Dollar Index Bullish Fund 2/20/2007 5.71% 3.42% 0.58% www.invescopowershares.com

XRT SPDR S&P Retail ETF 6/22/2006 -7.23% 7.90% 8.27% www.spdrs.com

XLU Utilities Select Sector SPDR Fund 12/22/1998 6.92% 11.92% 6.48% www.spdrs.com

HEDJ WisdomTree Europe Hedged Equity Fund 12/31/2009 24.20% 12.25% n.a. 8.39% www.wisdomtree.com

HYG iShares iBoxx $ High Yield Corporate Bond ETF 4/11/2007 13.40% 5.29% n.a. 5.64% us.ishares.com

ASHR Deutsche X-trackers Harvest CSI 300 China A-

Shares ETF11/6/2013 2.92% n.a. n.a. 8.89% etfus.deutscheawm.com

DBEU Deutsche X-trackers MSCI Europe Hedged Equity

ETF10/1/2013 20.60% n.a. n.a. 8.16% etfus.deutscheawm.com

IBB iShares Nasdaq Biotechnology ETF 2/9/2001 12.75% 19.15% 14.71% us.ishares.com

LQD iShares iBoxx $ Investment Grade Corporate Bond

ETF7/26/2002 2.64% 4.02% 5.47% us.ishares.com

IEF iShares 7-10 Year Treasury Bond ETF 7/26/2002 -2.60% 2.30% 5.24% us.ishares.com

EFAV iShares Edge MSCI Min Vol EAFE ETF 10/20/2011 2.82% 7.80% n.a. 8.14% us.ishares.com

VTI Vanguard Total Stock Market ETF 5/31/2001 18.07% 13.14% 7.69% us.ishares.com

TIP iShares TIPS Bond ETF 12/5/2003 1.36% 0.85% 4.10% us.ishares.com

DIA SPDR Dow Jones Industrial Average ETF 1/20/1998 19.69% 11.97% 7.93% www.spdrs.com

VGK Vanguard FTSE Europe ETF 3/10/2005 9.94% 5.95% 1.01% www.vanguard.com

EEMA iShares MSCI Emerging Markets Asia ETF 2/9/2012 17.43% 4.06% n.a. 3.63% us.ishares.com

SJNK SPDR Bloomberg Barclays Short Term High Yield

Bond ETF3/15/2012 14.86% 4.35% n.a. 4.30% www.spdrs.com

Indices*

SPTR S&P United States 500 Total Return 17.17% 13.30% 7.51%

NDUEACWF MSCI AC World Daily TR Net USD 15.04% 8.37% 4.00%

LBUSTRUU Barclays US Aggregate TR Value Un-hedged USD 0.44% 2.34% 4.27%

Notes: Since Inception performance data is provided for those ETFs which do not have full 10 Year performance history.

Performance calculations are based on total returns (i.e. reinvested dividends). Price utilized corresponds to ETF NAV. *Index

returns do not reflect deductions for fees, expenses, or taxes.

Source: Deutsche Bank, Bloomberg Finance LP. Additional information can be found in the prospectus for each fund at their respective Issuer’s ETF websites


9 May 2017


#Performance data quoted represents past performance. Past performance is nota guarantee of future results and current performance may be higher or lowerthan performance quoted. Investment returns and principal value will fluctuateand shares when sold or redeemed, may be worth more or less than their originalcost.

Figure 17: Fees and Expenses

Data as of most current prospectus

Ticker NameProspectus

Date

Manage-

ment Fee

Distribution

and Service

(12b-1) Fees

Other

Expenses

Acquired

Fund Fees

and

Expenses

Total

Annual

Fund

Operating

Expenses

Fee

Waiver

Total Annual

Fund Operating

Expenses After

Fee Waiver

ETFs

BBH VanEck Vectors Biotech ETF 2/1/2017 0.35% None 0.05% None 0.40% 0.05% 0.35%

BKLN PowerShares Senior Loan Portfolio 2/24/2017 0.65% None None 0.01% 0.66% 0.01% 0.65%

DVY iShares Select Dividend ETF 9/1/2016 0.39% None None None 0.39% None 0.39%

DXJ WisdomTree Japan Hedged Equity Fund 8/1/2016 0.48% None None None 0.48% None 0.48%

EPI WisdomTree India Earnings Fund 8/1/2016 0.83% None 0.01% None 0.84% None 0.84%

EUFN iShares MSCI Europe Financials ETF 12/1/2016 0.48% None None None 0.48% None 0.48%

EWG iShares MSCI Germany ETF 12/30/2016 0.48% None None None 0.48% None 0.48%

EWP iShares MSCI Spain Capped ETF 12/30/2016 0.48% None None None 0.48% None 0.48%

EZU iShares MSCI Eurozone ETF 12/30/2016 0.48% None None None 0.48% None 0.48%

FXI iShares China Large-Cap ETF 12/1/2016 0.74% None None None 0.74% None 0.74%

GMF SPDR S&P Emerging Asia Pacific ETF 1/31/2017 0.49% None None None 0.49% None 0.49%

HYS PIMCO 0-5 Year High Yield Corporate Bond Index ETF 10/31/2016 0.55% None None None 0.55% None 0.55%

IVV iShares Core S&P 500 ETF 8/1/2016 0.04% None None None 0.04% None 0.04%

JNK SPDR Bloomberg Barclays High Yield Bond ETF 10/31/2016 0.40% None None None 0.40% None 0.40%

KBWB PowerShares KBW Bank Portfolio 2/24/2017 0.35% None None None 0.35% None 0.35%

MCHI iShares MSCI China ETF 12/30/2016 0.64% None None None 0.64% None 0.64%

PCY PowerShares Emerging Markets Sovereign Debt Portfolio 2/24/2017 0.50% None None None 0.50% None 0.50%

QDF FlexShares Quality Dividend Index Fund 3/1/2017 0.37% None 0.01% None 0.38% 0.01% 0.37%

QQQ PowerShares QQQ 1/31/2017 0.06% None 0.14% None 0.20% None 0.20%

SDY SPDR S&P Dividend ETF 10/31/2016 0.35% None None None 0.35% None 0.35%

VTIP Vanguard Short-Term Inflation-Protected Securities ETF 1/26/2017 0.05% None 0.02% None 0.07% None 0.07%

USMV iShares Edge MSCI Min Vol USA ETF 12/1/2016 0.15% None None None 0.15% None 0.15%

VGT Vanguard Information Technology ETF 12/22/2016 0.09% None 0.01% None 0.10% None 0.10%

VIG Vanguard Dividend Appreciation ETF 5/25/2016 0.08% None 0.01% None 0.09% None 0.09%

XLF Financial Select Sector SPDR Fund 1/31/2017 0.04% 0.04% 0.06% None 0.14% None 0.14%

UUP PowerShares DB US Dollar Index Bullish Fund 3/10/2017 0.75% 0.05% None None 0.80% None 0.80%

XRT SPDR S&P Retail ETF 10/31/2016 0.35% None None None 0.35% None 0.35%

XLU Utilities Select Sector SPDR Fund 1/31/2017 0.04% 0.04% 0.06% None 0.14% None 0.14%

HEDJ WisdomTree Europe Hedged Equity Fund 8/1/2016 0.58% None None None 0.58% None 0.58%

HYG iShares iBoxx $ High Yield Corporate Bond ETF 7/1/2016 0.50% None None None 0.50% None 0.50%

ASHR Deutsche X-trackers Harvest CSI 300 China A-Shares ETF 9/30/2016 0.65% None None None 0.65% None 0.65%

DBEU Deutsche X-trackers MSCI Europe Hedged Equity ETF 9/30/2016 0.45% None None None 0.45% None 0.45%

IBB iShares Nasdaq Biotechnology ETF 8/1/2016 0.47% None None None 0.47% None 0.47%

LQD iShares iBoxx $ Investment Grade Corporate Bond ETF 7/1/2016 0.15% None None None 0.15% None 0.15%

IEF iShares 7-10 Year Treasury Bond ETF 7/1/2016 0.15% None None None 0.15% None 0.15%

EFAV iShares Edge MSCI Min Vol EAFE ETF 12/1/2016 0.32% None None None 0.32% 0.12% 0.20%

VTI Vanguard Total Stock Market ETF 4/27/2017 0.04% None None None 0.04% None 0.04%

TIP iShares TIPS Bond ETF 3/1/2017 0.20% None None None 0.20% None 0.20%

DIA SPDR Dow Jones Industrial Average ETF 2/14/2017 0.06% None 0.11% None 0.17% None 0.17%

VGK Vanguard FTSE Europe ETF 2/24/2017 0.08% None 0.02% None 0.10% None 0.10%

EEMA iShares MSCI Emerging Markets Asia ETF 12/30/2016 0.49% None None None 0.49% None 0.49%

SJNK SPDR Bloomberg Barclays Short Term High Yield Bond ETF 10/31/2016 0.40% None None None 0.40% None 0.40%

Notes: You may also incur usual and customary brokerage commissions when buying or selling shares of the Funds, which are not reflected in the fees above. Fee waivers are

temporary. Fund prospectus should be consulted for additional details.

Source: You may also incur usual and customary brokerage commissions when buying or selling shares of the Funds, which are not reflected in the fees above. Fee waivers are temporary. Fundprospectus should be consulted for additional details.


9 May 2017


Appendix 1

Important Disclosures

*Other information available upon request

*Prices are current as of the end of the previous trading session unless otherwise indicated and are sourced fromlocal exchanges via Reuters, Bloomberg, and other vendors. Other information is sourced from Deutsche Bank, subjectcompanies, and other sources. For disclosures pertaining to recommendations or estimates made on securities other thanthe primary subject of this research, please see the most recently published company report or visit our global disclosurelook-up page on our website at http://gm.db.com/ger/disclosure/DisclosureDirectory.eqsr. Aside from within this report,important conflict disclosures can also be found at https://gm/db.com/equities under the "Disclosures Lookup" and "Legal"tabs. Investors are strongly encouraged to review this information before investing.

Analyst Certification

The views expressed in this report accurately reflect the personal views of the undersigned lead analyst(s). In addition,the undersigned lead analyst(s) has not and will not receive any compensation for providing a specific recommendationor view in this report. Sebastian Mercado

Hypothetical Disclaimer

Backtested, hypothetical or simulated performance results have inherent limitations. Unlike an actual performancerecord based on trading actual client portfolios, simulated results are achieved by means of the retroactive applicationof a backtested model itself designed with the benefit of hindsight. Taking into account historical events the backtestingof performance also differs from actual account performance because an actual investment strategy may be adjustedany time, for any reason, including a response to material, economic or market factors. The backtested performanceincludes hypothetical results that do not reflect the reinvestment of dividends and other earnings or the deduction ofadvisory fees, brokerage or other commissions, and any other expenses that a client would have paid or actually paid.No representation is made that any trading strategy or account will or is likely to achieve profits or losses similar tothose shown. Alternative modeling techniques or assumptions might produce significantly different results and prove tobe more appropriate. Past hypothetical backtest results are neither an indicator nor guarantee of future returns. Actualresults will vary, perhaps materially, from the analysis.

Equity Rating Key Equity rating dispersion and banking relationships

Buy: Based on a current 12- month view of total share-holderreturn (TSR = percentage change in share price from currentprice to projected target price plus pro-jected dividend yield ) ,we recommend that investors buy the stock.Sell: Based on a current 12-month view of total share-holderreturn, we recommend that investors sell the stock.Hold: We take a neutral view on the stock 12-months out and,based on this time horizon, do not recommend either a Buyor Sell.

Newly issued research recommendations and target pricessupersede previously published research.

Regulatory Disclosures


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9 May 2017


1.Additional InformationInformation on ETFs is provided strictly for illustrative purposes and should not be deemed an offer to sell or asolicitation of an offer to buy shares of any fund that is described in this document. Consider carefully any fund'sinvestment objectives, risk factors, and charges and expenses before investing. This and other information can be foundin the fund's prospectus. Prospectuses about db X-trackers funds and Powershares DB funds can be obtained by calling1-877-369-4617 or by visiting www.DBXUS.com. Read prospectuses carefully before investing. Past performance is notnecessarily indicative of future results. Investing involves risk, including possible loss of principal. To better understandthe similarities and differences between investments, including investment objectives, risks, fees and expenses, it isimportant to read the products' prospectuses. Shares of ETFs may be sold throughout the day on an exchange throughany brokerage account. However, shares may only be redeemed directly from an ETF by authorized participants, in verylarge creation/redemption units. Transactions in shares of ETFs will result in brokerage commissions and will generatetax consequences. ETFs are obliged to distribute portfolio gains to shareholders. Deutsche Bank may be an issuer,advisor, manager, distributor or administrator of, or provide other services to, an ETF included in this report, for which itreceives compensation. db X-trackers and Powershares DB funds are distributed by ALPS Distributors, Inc. The opinionsexpressed are those of the authors and do not necessarily reflect the views of DB, ALPS or their affiliates.

Aside from within this report, important conflict disclosures can also be found at https://gm.db.com/equities under the"Disclosures Lookup" and "Legal" tabs. Investors are strongly encouraged to review this information before investing.


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Additional Information?The information and opinions in this report were prepared by Deutsche Bank AG or one of its affiliates (collectively"Deutsche Bank"). Though the information herein is believed to be reliable and has been obtained from public sourcesbelieved to be reliable, Deutsche Bank makes no representation as to its accuracy or completeness.

If you use the services of Deutsche Bank in connection with a purchase or sale of a security that is discussed in this report,or is included or discussed in another communication (oral or written) from a Deutsche Bank analyst, Deutsche Bank mayact as principal for its own account or as agent for another person.

Deutsche Bank may consider this report in deciding to trade as principal. It may also engage in transactions, for itsown account or with customers, in a manner inconsistent with the views taken in this research report. Others withinDeutsche Bank, including strategists, sales staff and other analysts, may take views that are inconsistent with those takenin this research report. Deutsche Bank issues a variety of research products, including fundamental analysis, equity-linkedanalysis, quantitative analysis and trade ideas. Recommendations contained in one type of communication may differfrom recommendations contained in others, whether as a result of differing time horizons, methodologies or otherwise.Deutsche Bank and/or its affiliates may also be holding debt or equity securities of the issuers it writes on. Analysts arepaid in part based on the profitability of Deutsche Bank AG and its affiliates, which includes investment banking, tradingand principal trading revenues.

Opinions, estimates and projections constitute the current judgment of the author as of the date of this report. They donot necessarily reflect the opinions of Deutsche Bank and are subject to change without notice. Deutsche Bank providesliquidity for buyers and sellers of securities issued by the companies it covers. Deutsche Bank research analysts sometimeshave shorter-term trade ideas that are consistent or inconsistent with Deutsche Bank's existing longer term ratings. Tradeideas for equities can be found at the SOLAR link at http://gm.db.com. A SOLAR idea represents a high conviction beliefby an analyst that a stock will outperform or underperform the market and/or sector delineated over a time frame of noless than two weeks. In addition to SOLAR ideas, the analysts named in this report may from time to time discuss withour clients, Deutsche Bank salespersons and Deutsche Bank traders, trading strategies or ideas that reference catalystsor events that may have a near-term or medium-term impact on the market price of the securities discussed in this report,which impact may be directionally counter to the analysts' current 12-month view of total return or investment return asdescribed herein. Deutsche Bank has no obligation to update, modify or amend this report or to otherwise notify a recipientthereof if any opinion, forecast or estimate contained herein changes or subsequently becomes inaccurate. Coverage andthe frequency of changes in market conditions and in both general and company specific economic prospects make itdifficult to update research at defined intervals. Updates are at the sole discretion of the coverage analyst concerned or ofthe Research Department Management and as such the majority of reports are published at irregular intervals. This reportis provided for informational purposes only and does not take into account the particular investment objectives, financialsituations, or needs of individual clients. It is not an offer or a solicitation of an offer to buy or sell any financial instrumentsor to participate in any particular trading strategy. Target prices are inherently imprecise and a product of the analyst’sjudgment. The financial instruments discussed in this report may not be suitable for all investors and investors must maketheir own informed investment decisions. Prices and availability of financial instruments are subject to change withoutnotice and investment transactions can lead to losses as a result of price fluctuations and other factors. If a financialinstrument is denominated in a currency other than an investor's currency, a change in exchange rates may adverselyaffect the investment. Past performance is not necessarily indicative of future results. Unless otherwise indicated, pricesare current as of the end of the previous trading session, and are sourced from local exchanges via Reuters, Bloombergand other vendors. Data is sourced from Deutsche Bank, subject companies, and in some cases, other parties.

The Deutsche Bank Research Department is independent of other business areas divisions of the Bank. Details regardingour organizational arrangements and information barriers we have to prevent and avoid conflicts of interest with respectto our research is available on our website under Disclaimer found on the Legal tab.??Macroeconomic fluctuations often account for most of the risks associated with exposures to instruments that promiseto pay fixed or variable interest rates. For an investor who is long fixed rate instruments (thus receiving these cash flows),increases in interest rates naturally lift the discount factors applied to the expected cash flows and thus cause a loss.


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9 May 2017


The longer the maturity of a certain cash flow and the higher the move in the discount factor, the higher will be theloss. Upside surprises in inflation, fiscal funding needs, and FX depreciation rates are among the most common adversemacroeconomic shocks to receivers. But counterparty exposure, issuer creditworthiness, client segmentation, regulation(including changes in assets holding limits for different types of investors), changes in tax policies, currency convertibility(which may constrain currency conversion, repatriation of profits and/or the liquidation of positions), and settlement issuesrelated to local clearing houses are also important risk factors to be considered. The sensitivity of fixed income instrumentsto macroeconomic shocks may be mitigated by indexing the contracted cash flows to inflation, to FX depreciation, or tospecified interest rates – these are common in emerging markets. It is important to note that the index fixings may -- byconstruction -- lag or mis-measure the actual move in the underlying variables they are intended to track. The choice of theproper fixing (or metric) is particularly important in swaps markets, where floating coupon rates (i.e., coupons indexed toa typically short-dated interest rate reference index) are exchanged for fixed coupons. It is also important to acknowledgethat funding in a currency that differs from the currency in which coupons are denominated carries FX risk. Naturally,options on swaps (swaptions) also bear the risks typical to options in addition to the risks related to rates movements.??Derivative transactions involve numerous risks including, among others, market, counterparty default and illiquidity risk.The appropriateness or otherwise of these products for use by investors is dependent on the investors' own circumstancesincluding their tax position, their regulatory environment and the nature of their other assets and liabilities, and as such,investors should take expert legal and financial advice before entering into any transaction similar to or inspired by thecontents of this publication. The risk of loss in futures trading and options, foreign or domestic, can be substantial. As aresult of the high degree of leverage obtainable in futures and options trading, losses may be incurred that are greaterthan the amount of funds initially deposited. Trading in options involves risk and is not suitable for all investors. Priorto buying or selling an option investors must review the "Characteristics and Risks of Standardized Options”, at http://www.optionsclearing.com/about/publications/character-risks.jsp. If you are unable to access the website please contactyour Deutsche Bank representative for a copy of this important document.?

Participants in foreign exchange transactions may incur risks arising from several factors, including the following: ( i)exchange rates can be volatile and are subject to large fluctuations; ( ii) the value of currencies may be affected bynumerous market factors, including world and national economic, political and regulatory events, events in equity anddebt markets and changes in interest rates; and (iii) currencies may be subject to devaluation or government imposedexchange controls which could affect the value of the currency. Investors in securities such as ADRs, whose values areaffected by the currency of an underlying security, effectively assume currency risk.?

Unless governing law provides otherwise, all transactions should be executed through the Deutsche Bank entity in theinvestor's home jurisdiction. Aside from within this report, important conflict disclosures can also be found at https://gm.db.com/equities under the "Disclosures Lookup" and "Legal" tabs. Investors are strongly encouraged to review thisinformation before investing.??United States: Approved and/or distributed by Deutsche Bank Securities Incorporated, a member of FINRA, NFA and SIPC.Analysts located outside of the United States are employed by non-US affiliates that are not subject to FINRA regulations.

Germany: Approved and/or distributed by Deutsche Bank AG, a joint stock corporation with limited liability incorporatedin the Federal Republic of Germany with its principal office in Frankfurt am Main. Deutsche Bank AG is authorized underGerman Banking Law and is subject to supervision by the European Central Bank and by BaFin, Germany’s FederalFinancial Supervisory Authority.

United Kingdom: Approved and/or distributed by Deutsche Bank AG acting through its London Branch at WinchesterHouse, 1 Great Winchester Street, London EC2N 2DB. Deutsche Bank AG in the United Kingdom is authorised by thePrudential Regulation Authority and is subject to limited regulation by the Prudential Regulation Authority and FinancialConduct Authority. Details about the extent of our authorisation and regulation are available on request.??Hong Kong: Distributed by Deutsche Bank AG, Hong Kong Branch.??


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9 May 2017


India: Prepared by Deutsche Equities India Pvt Ltd, which is registered by the Securities and Exchange Board of India (SEBI)as a stock broker. Research Analyst SEBI Registration Number is INH000001741. DEIPL may have received administrativewarnings from the SEBI for breaches of Indian regulations.

Japan: Approved and/or distributed by Deutsche Securities Inc.(DSI). Registration number - Registered as a financialinstruments dealer by the Head of the Kanto Local Finance Bureau (Kinsho) No. 117. Member of associations: JSDA, TypeII Financial Instruments Firms Association and The Financial Futures Association of Japan. Commissions and risks involvedin stock transactions - for stock transactions, we charge stock commissions and consumption tax by multiplying thetransaction amount by the commission rate agreed with each customer. Stock transactions can lead to losses as a resultof share price fluctuations and other factors. Transactions in foreign stocks can lead to additional losses stemming fromforeign exchange fluctuations. We may also charge commissions and fees for certain categories of investment advice,products and services. Recommended investment strategies, products and services carry the risk of losses to principaland other losses as a result of changes in market and/or economic trends, and/or fluctuations in market value. Beforedeciding on the purchase of financial products and/or services, customers should carefully read the relevant disclosures,prospectuses and other documentation. "Moody's", "Standard & Poor's", and "Fitch" mentioned in this report are notregistered credit rating agencies in Japan unless Japan or "Nippon" is specifically designated in the name of the entity.Reports on Japanese listed companies not written by analysts of DSI are written by Deutsche Bank Group's analysts withthe coverage companies specified by DSI. Some of the foreign securities stated on this report are not disclosed accordingto the Financial Instruments and Exchange Law of Japan. Target prices set by Deutsche Bank's equity analysts are basedon a 12-month forecast period.

Korea: Distributed by Deutsche Securities Korea Co.?

South Africa: Deutsche Bank AG Johannesburg is incorporated in the Federal Republic of Germany (Branch RegisterNumber in South Africa: 1998/003298/10).??Singapore: by Deutsche Bank AG, Singapore Branch or Deutsche Securities Asia Limited, Singapore Branch (One RafflesQuay #18-00 South Tower Singapore 048583, +65 6423 8001), which may be contacted in respect of any matters arisingfrom, or in connection with, this report. Where this report is issued or promulgated in Singapore to a person who is not anaccredited investor, expert investor or institutional investor (as defined in the applicable Singapore laws and regulations),they accept legal responsibility to such person for its contents.

Taiwan: Information on securities/investments that trade in Taiwan is for your reference only. Readers shouldindependently evaluate investment risks and are solely responsible for their investment decisions. Deutsche Bank researchmay not be distributed to the Taiwan public media or quoted or used by the Taiwan public media without written consent.Information on securities/instruments that do not trade in Taiwan is for informational purposes only and is not to beconstrued as a recommendation to trade in such securities/instruments. Deutsche Securities Asia Limited, Taipei Branchmay not execute transactions for clients in these securities/instruments.??Qatar: Deutsche Bank AG in the Qatar Financial Centre (registered no. 00032) is regulated by the Qatar Financial CentreRegulatory Authority. Deutsche Bank AG - QFC Branch may only undertake the financial services activities that fall withinthe scope of its existing QFCRA license. Principal place of business in the QFC: Qatar Financial Centre, Tower, WestBay, Level 5, PO Box 14928, Doha, Qatar. This information has been distributed by Deutsche Bank AG. Related financialproducts or services are only available to Business Customers, as defined by the Qatar Financial Centre RegulatoryAuthority.

Russia: This information, interpretation and opinions submitted herein are not in the context of, and do not constitute,any appraisal or evaluation activity requiring a license in the Russian Federation.

?Kingdom of Saudi Arabia: Deutsche Securities Saudi Arabia LLC Company, (registered no. 07073-37) is regulated bythe Capital Market Authority. Deutsche Securities Saudi Arabia may only undertake the financial services activities thatfall within the scope of its existing CMA license. Principal place of business in Saudi Arabia: King Fahad Road, Al OlayaDistrict, P.O. Box 301809, Faisaliah Tower - 17th Floor, 11372 Riyadh, Saudi Arabia.??


9 May 2017


United Arab Emirates: Deutsche Bank AG in the Dubai International Financial Centre (registered no. 00045) is regulatedby the Dubai Financial Services Authority. Deutsche Bank AG - DIFC Branch may only undertake the financial servicesactivities that fall within the scope of its existing DFSA license. Principal place of business in the DIFC: Dubai InternationalFinancial Centre, The Gate Village, Building 5, PO Box 504902, Dubai, U.A.E. This information has been distributed byDeutsche Bank AG. Related financial products or services are only available to Professional Clients, as defined by theDubai Financial Services Authority.

Australia: Retail clients should obtain a copy of a Product Disclosure Statement (PDS) relating to any financial productreferred to in this report and consider the PDS before making any decision about whether to acquire the product. Pleaserefer to Australian specific research disclosures and related information at https://australia.db.com/australia/content/research-information.html??Australia and New Zealand: This research is intended only for "wholesale clients" within the meaning of the AustralianCorporations Act and New Zealand Financial Advisors Act respectively.?

Additional information relative to securities, other financial products or issuers discussed in this report is available uponrequest. This report may not be reproduced, distributed or published without Deutsche Bank's prior written consent.??Copyright © 2017 Deutsche Bank AG


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Equity Research

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Equity Research

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Equity Derivatives Research

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