Investor profile Risk-tolerant Currency of sub-fund EUR
Sub-fund manager Deutsche Asset Management Investment GmbH
Performance benchmark DJ Stoxx Europe Small 200 TR EUR
Reference portfolio (risk benchmark) DJ Stoxx Europe Small 200 TR EUR
Leverage effect 2 times the value of the investment sub-fund’s assets
Calculation of the NAV per share Each bank business day in Luxembourg
Order acceptance All subscription, redemption and exchange orders are placed on the basis of an unknown net asset value per share. Orders received by the Transfer Agent at or before 4:00 PM Luxembourg time (CET) on a valuation date are processed on the basis of the net asset value per share on that valuation date. Orders received after 4:00 PM
Luxembourg time (CET) are processed on the basis of the net asset value per share on the next valuation date. Value date In a purchase, the equivalent value is debited three bank business days after issue of the shares. The equivalent
value is credited three bank business days after redemption of the shares. The value date for purchase and re- demption orders of certain currencies may deviate by one day from the value date as specified in the description of share classes in the general section of the Sales Prospectus.
Fractional shares Up to three places after the decimal point
Expense cap Not to exceed 15% of the Management Company fee
* For additional costs, see Article 12 in the general section of the Sales Prospectus.
** 3% based on the gross investment corresponds approx. to 3.09% based on the net investment. *** 5% based on the gross investment corresponds approx. to 5.26% based on the net investment.
Share class Currency of Front-end load Management Service Fee p.a. Taxe d’abonnement Launch date share class (payable by the investor) Company Fee p.a. (payable by the sub-fund)* (payable by the sub-fund)
(payable by the sub-fund)*
LC EUR up to 5%*** up to 1.5% 0% 0.05% January 16, 2006
LD EUR up to 5%*** up to 1.5% 0% 0.05% January 16, 2006
NC EUR up to 3%** up to 2% 0.2% 0.05% January 16, 2006
FC EUR 0% up to 0.75% 0% 0.05% January 16, 2006
ID EUR 0% up to 0.65% 0% 0.01% December 30, 2009
For the sub-fund with the name Deutsche Invest I European Small Cap, the following provisions shall apply in addition to the terms contained in the general section of the Sales Prospectus.
Investment policy
1. The main investment objective of the sub- fund Deutsche Invest I European Small Cap is to achieve an above average return by invest- ing in a portfolio of small-sized companies in the European markets.
2. At least 70% of the sub-fund’s assets are invested in shares and other equity securi- ties of small-sized companies registered in a European country, or in companies that con- duct their principal business activity in Europe or which, as holding companies, hold primarily interests in companies registered in Europe.
3. Up to 30% of the sub-fund’s assets may be invested in:
a) shares and other equity securities of companies of any size from around the world that do not fulfil the requirements of the preceding paragraph;
b) interest-bearing securities, as well as convertible bonds, convertible deben- tures and warrant-linked bonds that are
issued by companies according to (2) or (a) above, and which are denominated in any freely convertible currency;
c) short-term deposits, money market instru- ments and bank balances.
4. Small-sized companies as defined in (2) above are companies included in a market index for small-sized companies (e.g. STOXX-Europe- Small-200 Index) or companies that have a comparable market capitalization.
5. Instead of direct investments in accordance with (2) and (3) above, the sub-fund’s assets may also be invested in index certificates on equity indices whose underlying instru- ments are investments in accordance with (2) or (3) above. The index certificates must be sufficiently diversified for the market to which they refer, be representative and be published. The index certificates are securi- ties issued on the capital markets, and their terms of issue guarantee that index cer- tificate prices are generally governed by the performance of the shares contained in the respective index. These index certificates track the performance of the index to a large extent or even entirely. As index certificates do not have any leverage effect, they do not have any speculative potential.
6. In addition, techniques and instruments based on securities may be employed on behalf of the sub-fund’s assets if this is done for the purpose of efficient portfolio manage- ment of the sub-fund.
7. In compliance with Article 2 B. of the general section of the Sales Prospectus, the sub-fund may use derivative techniques to achieve the investment objective and implement the investment strategy, including in particular – but not limited to – forwards, futures, single- stock futures, options or equity swaps.
The sub-fund’s investments in contingent con- vertibles shall be limited to 10% of the sub-fund’s net asset value.
In addition, the sub-fund’s assets may be invested in all other permissible assets specified in Article 2 of the general section of the Sales Prospectus, including the assets mentioned in Article 2 A. of the general section of the Sales Prospectus.
Risk Management
The relative Value-at-Risk (VaR) approach is used to limit market risk in the sub-fund.
In addition to the provisions of the general sec- tion of the Sales Prospectus, the potential market Due to its composition and the techniques applied by its fund management, the sub-fund is subject to markedly increased volatility, which means that the price per share may be subject to substantial downward or upward fluctuation, even within short periods of time. The sub-fund is therefore only suitable
for experienced investors who are familiar with the opportunities and risks of volatile investments and who are in a position to temporarily bear substantial losses.
risk of the sub-fund is measured using a refer- ence portfolio that does not contain derivatives (“risk benchmark”).
Leverage is not expected to exceed twice the value of the investment sub-fund’s assets. The leverage effect is calculated using the sum of notional approach (absolute (notional) amount of each derivative position divided by the net pres- ent value of the portfolio). However, the disclosed expected level of leverage is not intended to be an additional exposure limit for the sub-fund.
Investment in shares of target funds
In addition to the information in the general section of the Sales Prospectus the following is applicable to this sub-fund:
When investing in target funds associated to the sub-fund, the part of the management fee attrib- utable to shares of these target funds is reduced by the management fee/all-in fee of the acquired target funds, and as the case may be, up to the full amount (difference method).