Investor profile Risk-tolerant Currency of sub-fund EUR
Sub-fund manager Deutsche Asset & Wealth Management Investment GmbH, Deutsche Asset Management (UK) Limited and Deutsche Asset Management (Hong Kong) Limited.
The Management Company entered into an investment management agreement with Deutsche Asset & Wealth Management Investment GmbH, Frankfurt/Main. Furthermore, Deutsche Asset & Wealth Management Invest- ment GmbH, Frankfurt/Main, entered into a sub-investment management agreement with Deutsche Asset Management (UK) Limited, London and Deutsche Asset Management (Hong Kong) Limited under its supervision, control and responsibility, and at its own expense.
Performance benchmark MSCI EM (Emerging Markets) Reference portfolio (risk benchmark) MSCI EM (Emerging Markets)
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 that is also an exchange trading day in Hong Kong
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 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 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.
**** The Management Company may, at its discretion, partially or completely dispense with the dilution adjustment.
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% March 29, 2005
LD EUR up to 5%*** up to 1.5% 0% 0.05% March 29, 2005
NC EUR up to 3%** up to 2% 0.2% 0.05% March 29, 2005
FC EUR 0% up to 0.75% 0% 0.05% March 29, 2005
USD LC USD up to 5%*** up to 1.5% 0% 0.05% November 20, 2006
USD FC USD 0% up to 0.75% 0% 0.05% November 20, 2006
PFC EUR 0% up to 1.6% 0% 0.05% May 26, 2014
For the sub-fund with the name Deutsche Invest I Global Emerging Markets Equities, the following provisions shall apply in addition to the terms contained in the general section of the Sales Prospectus.
Investment policy
The objective of the investment policy of Deutsche Invest I Global Emerging Markets Equities is to achieve an above average return.
At least 70% of the sub-fund’s assets are invested in equities of companies registered in Emerging Markets countries or companies that conduct their principal business activity in Emerging Markets countries or which, as hold- ing companies, hold primarily interest in compa- nies registered in Emerging Markets countries. A company is viewed as having its principal business activity in emerging-market countries
if a significant part of its earnings or revenues is generated there.
Emerging-market countries are defined as all those countries considered by the International Monetary Fund, the World Bank, the International Finance Corporation (IFC) or one of the large global investment banks as non-developed indus- trial countries at the time of the investment.
At present, the emerging countries most sig- nificant for the sub-fund are mostly, but not exclusively, located in Asia, eastern Europe and South America and include, among others, Brazil, China, India, Indonesia, Korea, Malaysia, Mexico, Russia, South Africa, Taiwan, Thailand and Turkey.
If investments are effected in countries that do not yet possess a regulated market, these secu-
rities shall be considered as unlisted financial instruments.
In compliance with Article 2 B. of the general sec- tion of the Sales Prospectus, the sub-fund may use derivative techniques to achieve the investment objective and implement the investment strat- egy, including in particular – but not limited to – forwards, futures, single-stock futures, options or equity swaps.
Investments in the securities mentioned above may also be made through Global Deposi- tory Receipts (GDRs, only 1:1 instruments, no embedded derivatives included, i.e. no leverage) listed on recognized exchanges and markets, or through American Depository Receipts (ADRs, only 1:1 instruments, no embedded derivatives included, i.e. no leverage) issued by top-rated international financial institutions.
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.
Dilution adjustment PFC:
(payable by the shareholder)**** A dilution adjustment of up to 3% based on the gross redemption amount may be charged. Please see the general section for further explanation.
Placement fee PFC:
The fund may invest more than 10% of the sub- fund’s assets in securities that are traded on the Moscow Exchange (MICEX-RTS).
A maximum of 30% of the sub-fund’s assets may be invested in equities, stock certificates, participation and dividend right certificates, con- vertible bonds and equity warrants of issuers that do not fulfill the requirements of the preceding paragraphs.
Up to 30% of the sub-fund’s assets may be invested in short-term deposits, money market instruments and bank balances. Notwithstand- ing the investment limit of 10% specified in Article 2 B. (i) concerning investments in shares of other Undertakings for Collective Investment in Securities and/or other collective investment undertakings as defined in A. (e), an investment limit of 5% shall apply to this sub-fund.
The following investment restriction applies to the sub-fund due to a possible registration in Korea:
The sub-fund must invest more than 70% of the net assets in non-Korean Won-denominated assets.
In addition, the sub-fund’s assets may be invested in all other permissible assets speci- fied in Article 2, including the assets mentioned in Article 2 A. (j) of the general part of the Sales Prospectus.
Specific risks
The exchanges and markets of emerging-market countries are subject to substantial fluctuations. The opportunities afforded by an investment are therefore countered by substantial risks. Politi- cal changes, restrictions on currency exchange, exchange monitoring, taxes, limitations on for- eign capital investments and capital repatriation etc. can also affect investment performance.
Detailed information concerning custody and reg- istration risks in Russia is provided in the general section of the Sales Prospectus.
German Taxation
Taxation bases to be calculated in accordance with article 5 (1) of the German Investment Tax Act (Investmentsteuergesetz) are not determined for the PFC share class. For investors who are without limitation subject to taxation in Germany, the regulations of so-called non-transparent taxa- tion are therefore applicable (see Summary of tax regulations of importance to the investor). Due to potentially undesirable consequences of non- transparent taxation, the above-mentioned share classes are in principle neither intended nor suit- able for investors who are without limitation sub- ject to taxation in Germany.
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 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).