DWS Internationale Renten TypO - Sales Prospectus September 1, 2018

 
 
DWS Investment GmbH




DWS Internationale Renten TypO
Sales Prospectus
including Terms and Conditions of Investment
September 1, 2018
DWS Investment GmbH currently manages the following investment undertakings
(As of September 1, 2018):
Investment undertakings compliant with the UCITS Directive
Albatros Fonds                                      DWS Euroland Strategie (Renten)                   DWS Top World
Barmenia Renditefonds DWS                           DWS Europe Dynamic                                DWS TRC Deutschland
Basler-Aktienfonds DWS                              DWS European Opportunities                        DWS TRC Global Growth
Basler-International DWS                            DWS Eurovesta                                     DWS TRC Top Asien
Basler-Rentenfonds DWS                              DWS Financials Typ O                              DWS TRC Top Dividende
Best Managers Concept I                             DWS Flexizins Plus                                DWS US Equities Typ O
Bethmann Aktien Nachhaltigkeit                      DWS German Equities Typ O                         DWS US Growth
Bethmann Nachhaltigkeit                             DWS German Small/Mid Cap                          DWS Vermögensbildungsfonds I
Bethmann Nachhaltigkeit Defensiv Ausgew.            DWS Global Growth                                 DWS Vermögensbildungsfonds R
Bethmann Stiftungsfonds                             DWS Global Hybrid Bond Fund                       DWS Zürich Invest Aktien Schweiz
CD Capital Global                                   DWS Global Natural Resources Equity Typ O         DWS Zunkunftsressourcen
CSR Bond Plus                                       DWS Global Small/Mid Cap                          Dynamic Europe Balance
DeAM-Fonds BKN-HR                                   DWS Global Water                                  E.ON Aktienfonds DWS
DeAM-Fonds PVZ 1                                    DWS Health Care Typ O                             E.ON Rentenfonds DWS
DeAM-Fonds STRATAV European Strategy 1              DWS Internationale Renten Typ O                   Euro Agg One
DeAM-Fonds WOP 2                                    DWS Inter-Renta                                   FOS Performance und Sicherheit
DEGEF-Bayer-Mitarbeiter-Fonds                       DWS Investa                                       FOS Rendite und Nachhaltigkeit
DWS Akkumula                                        DWS-Merkur-Fonds 1                                FOS Strategie-Fonds Nr. 1
DWS Aktien Schweiz                                  DWS Nomura Japan Growth                           Fürst Fugger Privatbank Wachstum
DWS Aktien Strategie Deutschland                    DWS Qi Europa Balanced                            Global Agg One
DWS Balance                                         DWS Qi European Equity                            Gottlieb Daimler Aktienfonds DWS
DWS Balance Portfolio E                             DWS Qi Eurozone Equity                            LEA-Fonds DWS
DWS Biotech                                         DWS Qi Exklusiv Renten Chance                     Löwen-Aktienfonds
DWS BondEuroPlus                                    DWS Qi Extra Bond Total Return                    Multi-Index Equity Fund
DWS Concept DJE Globale Aktien                      DWS Qi LowVol Europe                              Noris-Fonds
DWS Concept GS&P Food                               DWS Qi NonEuroQualitätsanleihen                   Noris-Rendite-Fonds
DWS Convertibles                                    DWS Smart Industrial Technologies                 Renten Strategie K
DWS Covered Bond Fund                               DWS Stiftungsfonds                                Strategiekonzept I
DWS Defensiv                                        DWS Technology Typ O
DWS Defensiv Portfolio 1                            DWS Telemedia Typ O
DWS Deutschland                                     DWS Top Asien
DWS Dynamic                                         DWS Top Dividende
DWS Dynamik Opportunities                           DWS Top Europe
DWS Emerging Markets Typ O                          DWS Top Portfolio Offensiv

Alternative Investment Funds (AIFs)
Argentos Sauren Dynamik-Portfolio                   DWS Strategieportfolio IV                         PWM US Dynamic Growth (USD)
Argentos Sauren Stabilitäts-Portfolio               DWS Vorsorge AS (Dynamik)                         Vermögensmanagement Chance
Capital Growth Fund                                 DWS Vorsorge AS (Flex)                            Vermögensmanagement Rendite
DWS Sachwerte                                       FFPB Substanz                                     ZinsPlus

In addition, the Company currently manages 189 investment undertakings for institutional investors.
Contents


 2     Sales Prospectus – General Section
 2     Notice regarding the sales prospectus
 2     Selling restrictions
 2     Most important legal implications of the contractual relationship
 3     General principles
 4     Management Company
 4     Depositary
 8     Risk warnings
13     Investment principles and limits
17     Securities lending transactions
17     Repurchase agreements
17     Choice of counterparty
18     Collateral strategy
19     Borrowing
19     Leverage
19     Valuation
20     Sub-funds
20     Units
21     Costs
22     Determination of income
23     Liquidation, transfer and merger of the fund
24     Outsourcing
26     Fair treatment of investors / Handling of conflicts of interest
27     Auditor
27     Payments to investors / Distribution of reports and other information
27     Service providers

28     Sales Prospectus – Special Section

32     Terms and Conditions of Investment
32		   General Terms and Conditions of Investment
37     Special Terms and Conditions of Investment
		     DWS Internationale Renten Typ O

40     Summary of tax regulations of importance to investors




                                                                               1
Sales Prospectus – General section


Notice regarding the                                  not be offered or sold in the United States or to or    “reporting financial institution” or as a “non-­
sales prospectus                                      for the account of U.S. persons. Subsequent             reporting financial institution.” IGAs are agree-
                                                      transfers of units in or into the United States or to   ments between the United States of America
The purchase and sale of units of investment          U.S. persons are prohibited. Prospective investors      and other countries regarding the implementa-
funds discussed in this sales prospectus takes        may be required to declare that they are not U.S.       tion of FATCA requirements. The Federal Repub-
place on the basis of the respective applicable       persons and that they are not acquiring units on        lic of Germany signed a Model 1 agreement with
versions of the sales prospectus, the key             behalf of, or for resale to, U.S. persons. U.S.         the United States on May 31, 2013. The associ-
investor information document and the                 persons are persons who are citizens or perma-          ated implementing regulation came into force on
General Terms and Conditions of Investment            nent residents of the United States and/or subject      July 29, 2014. The fund must therefore comply
in conjunction with the Special Terms and             to taxation in the United States. Partnerships or       with the provisions of such a German IGA from
Conditions of Investment. The General Terms           corporations established under the laws of the          that date forward.
and Conditions of Investment and the Special          United States, or those of any state, territory or
Terms and Conditions of Investment are                possession of the United States, can also be U.S.       The Management Company will continuously
annexed to this sales prospectus.                     persons.                                                examine the extent of the requirements imposed
                                                                                                              on it by FATCA and, in particular, the German
The sales prospectus, together with the key           In cases when the Company receives knowledge            IGA. It may, among other things, become neces-
investor information document, the most               that a unitholder is a U.S. person or holds units       sary in this context for the Management Com-
recently published annual report and any              for the account of a U.S. person, the Company           pany to require all investors to submit the neces-
semiannual report published after the annual          may demand the immediate return of the units            sary documents to prove their tax residency in
report, must be provided free of charge to            to the Company at the last determined net asset         order to make it possible to determine on that
persons interested in purchasing a unit of this       value per unit.                                         basis whether they must be classified as speci-
investment fund. Such interested persons                                                                      fied U.S. persons.
must additionally be informed about the most          Investors that are considered “restricted per-
recent net asset value of the investment fund.        sons” as defined in Rule 2790 of the National           Investors and intermediaries acting on behalf of
                                                      Association of Securities Dealers in the United         investors should take note that, according to the
Information or statements other than those            States (NASD Rule 2790) must report their               applicable principles of the fund, units cannot be
contained in the sales prospectus must not            holdings in the investment fund to the Company          offered or sold for the account of U.S. persons
be provided. Any purchase and sale of units           without delay.                                          and that subsequent transfers of units to U.S.
on the basis of information or statements not                                                                 persons are prohibited. If units are held by a U.S.
contained in the sales prospectus or in the           This sales prospectus may be used for sales             person as the beneficial owner, the Management
key investor information document shall be at         purposes only by persons who have express               Company may, at its discretion, enforce a com-
the exclusive risk of the purchaser. The sales        written authorization from the Company (granted         pulsory redemption of the units in question.
prospectus is supplemented by the most                directly or indirectly via authorized sales agents)     Investors should additionally take note that the
recent annual report and by any semiannual            to do so. Declarations or representations by third      definition of “specified” U.S. persons within the
report published after the annual report.             parties that are not contained in this sales pro-       meaning of the FATCA provisions encompasses
                                                      spectus or in the documentation have not been           a broader range of investors than the current
This sales prospectus consists of a general           authorized by the Company.                              definition of U.S. persons.
section and a special section. The general
section contains general regulations on the           These documents are available to the public at
type of investment fund discussed in this             the registered office of the Company.                   Most important legal
sales prospectus. Special, partly restrictive                                                                 implications of the contractual
and specific regulations for the relevant             Foreign Account Tax Compliance Act –                    relationship
investment fund are set forth in the special          “FATCA”
section.                                              The provisions of the Foreign Account Tax Compli-       By purchasing units, the investor becomes a joint
                                                      ance Act (generally known as “FATCA”) are part of       owner, on a fractional basis, of the assets held
                                                      the Hiring Incentives to Restore Employment Act         by this fund. The investor has no control over the
Selling restrictions                                  (the “HIRE Act”), which came into force in the          assets. The units do not convey voting rights.
                                                      United States in March 2010. These provisions of
The units of this investment fund that have been      U.S. law serve to combat tax evasion by U.S.            The contractual relationship and all pre-contrac-
issued may be offered for sale or sold to the         citizens. Accordingly, financial institutions outside   tual relationships between DWS Investment
public only in countries where such an offer or       of the United States (“foreign financial institu-       GmbH and the investor are governed by German
such a sale is permissible. Unless the Company,       tions” or “FFIs”) are obliged to make annual            law. The location of the registered office of
or a third party authorized by it, has obtained       disclosures to the U.S. Internal Revenue Service        DWS Investment GmbH shall be the place of
permission to do so from the local regulatory         (“IRS”), on financial accounts held directly or         jurisdiction for any legal claims on the part of the
authorities, this sales prospectus does not           indirectly by “specified” U.S. persons. In general,     investor against D­ WS Investment GmbH arising
constitute a solicitation to purchase investment      for FFIs that do not meet this reporting obligation,    from this contractual relationship. Investors who
fund units, nor may this sales prospectus be          a withholding tax deduction of 30% is applied to        are consumers
used for the purpose of soliciting the purchase of    certain income from U.S. sources. The provision is      (see definition below) and who reside in another
investment fund units.                                being implemented gradually in the period               EU country may also bring a legal claim before a
                                                      between July 1, 2014, and 2017.                         competent court in their country of residence. All
DWS Investment GmbH and/or this investment                                                                    publications and advertising documentation must
fund are not, and will not be, registered under the   In principle, non-U.S. funds such as this fund          be prepared in German or accompanied by a
United States Investment Company Act of 1940,         have FFI status and must conclude an FFI agree-         translation into German. DWS Investment GmbH
as amended. The units of this investment fund are     ment with the IRS if they are not classified as         may declare translations of the sales prospectus
not, and will not be, registered under the United     “FATCA-compliant” or, provided an applicable            into the languages of those countries where
States Securities Act of 1933, as amended, or         Model 1 intergovernmental agreement (“IGA”) is          units of the fund may be offered for sale to the
under the securities laws of any state of the         in effect, do not meet the requirements of the          public to be binding. Otherwise, in the event of
United States of America. Accordingly, units will     IGA applicable to their home country either as a        discrepancies between the German version of



2
the sales prospectus and any translation, the         General principles                                  Additional information on risk management
German version shall always prevail. In addition,                                                         investment limitation for the fund, risk manage-
DWS Investment GmbH will communicate with             The investment fund (the fund)                      ment methods and the latest developments
its investors entirely in ­German. In the case of     This investment fund (hereinafter “fund”) is a      concerning risks and returns of the most import-
disputes, consumers may contact the invest-           collective investment undertaking (hereinafter      ant categories of assets, as well as on the
ment funds ombudsman’s office (“Ombudsstelle          “investment undertaking”), which collects           composition of the portfolio structure, are avail-
für Investmentfonds”) at BVI Bundesverband            capital from a number of investors in order to      able from the Company in electronic or written
Investment und Asset Management e.V.,                 invest it according to a defined investment         form.
the responsible consumer arbitration office.          policy for the benefit of those investors. The
DWS Investment GmbH participates in dispute           fund is an investment undertaking pursuant to       Moreover, investors may obtain supplementary
resolution proceedings before this arbitration        Directive 2009/65/EC of the European Parlia-        information on what is known as the “target
office.                                               ment and of the Council of July 13, 2009, on        market” and on the product costs arising from
                                                      the coordination of laws, regulations and admin-    implementation of the provisions of Directive
The office can be contacted at:                       istrative provisions relating to Undertakings for   2014/65/EU of the European Parliament and of
Büro der Ombudsstelle des BVI                         Collective Investment in Transferable Securities,   the Council on markets in financial instruments
(Office of the Ombudsman)                             which was most recently amended by Directive        and amending Directive 2002/92/EC and Direc-
Bundesverband Investment und                          2014/91/EU of the European Parliament and of        tive 2011/61/EU (hereinafter “MiFID II Directive”
Asset Management e.V.                                 the Council of July 23, 2014, amending Direc-       or “MiFID II”), and that the Company provides to
Unter den Linden 42                                   tive 2009/65/EC on the coordination of laws,        the sales agents. These are also available in
10117 Berlin, Germany                                 regulations and administrative provisions relat-    writing from the Company.
Tel.: +49 (0)30 - 6449046-0                           ing to Undertakings for Collective Investment in
Fax: +49 (0)30 - 6449046-29                           Transferable Securities as regards depositary       If the Company provides additional information
E-mail: info@ombudsstelle-investmentfonds.de          functions, remuneration policies and sanctions,     on the composition of the fund portfolio or its
www.ombudsstelle-investmentfonds.de                   (hereinafter “UCITS”) as defined by the German      performance to individual investors, it will simul-
                                                      Investment Code (hereinafter “KAGB”). It is         taneously make this information available to all
Consumers are natural persons who invest in the       managed by DWS Investment GmbH (herein­             investors in the fund free of charge upon
fund for a purpose that is primarily related to       after the “Company”). The Company invests the       request.
neither their commercial activity nor their inde-     capital deposited with it in its own name for the
pendent professional activity, meaning that they      collective account of the investors in the form     Terms and Conditions of Investment
trade for private purposes.                           of investment funds pursuant to the principle of    and amendments thereto
                                                      risk-spreading in assets permitted under the        The text of the Terms and Conditions of Invest-
In the case of disputes arising from the applica-     KAGB, but separate from its own assets.             ment is annexed to this sales prospectus in this
tion of the provisions of the German Civil Code                                                           document. The Terms and Conditions of Invest-
concerning distance selling contracts involving       The assets in which the Company may invest          ment may be amended by the Company. Amend-
financial services, the contact is the arbitration    investor monies, and the provisions to be com-      ments to the Terms and Conditions of Invest-
office of the Deutsche Bundesbank.                    plied with when so doing, are stated in the KAGB    ment require the approval of BaFin. Amendments
                                                      and associated regulations, and in the Terms and    to the fund’s investment principles additionally
The office can be contacted at:                       Conditions of Investment, which govern the legal    require the consent of the Company’s supervi-
Deutsche Bundesbank                                   relationship between the investors and the          sory board. Amendments to the fund’s invest-
Schlichtungsstelle (Arbitration Office)               Company. The Terms and Conditions of Invest-        ment principles are only permitted on the condi-
P.O. Box 11 12 32                                     ment contain a general section and a special        tion that the Company makes an offer to
60047 Frankfurt/Main, Germany                         section (“General Terms and Conditions of           investors either to redeem their units at no
E-mail: schlichtung@bundesbank.de                     Investment” and “Special Terms and Conditions       additional cost prior to the amendments taking
www.bundesbank.de                                     of Investment”). Terms and Conditions of Invest-    effect or to exchange their units, free of charge,
                                                      ment for an investment undertaking must be          for units of investment undertakings having
In the case of disputes relating to sales contracts   approved by the German Federal Financial Super-     comparable investment principles, provided such
or service contracts concluded by electronic          visory Authority (hereinafter “BaFin”) prior to     investment undertakings are managed by the
means, consumers may also contact the                 their application. The fund is not part of the      Company or by another entity belonging to its
EU’s online dispute resolution platform               Company’s insolvency assets.                        group of companies.
(www.ec.europa.eu/consumers/odr). The follow-
ing e-mail can be used as the contact address for     Sales documentation and disclosure of               Any proposed amendments shall be announced
DWS Investment GmbH: info@dws.com. The                information on risk management and                  in the Bundesanzeiger (Federal Gazette) and, in
platform itself is not a dispute resolution office,   sales information in accordance with                addition, in a business publication or daily news-
but instead merely puts the parties into contact      MiFID II                                            paper with sufficient circulation, or on the Inter-
with a competent national arbitration office.         The sales prospectus, the key investor informa-     net at deutscheam.com. If the amendments
                                                      tion document and the Terms and Conditions of       relate to fees and expense reimbursements that
The right of recourse to the courts shall not be      Investment, as well as the most recent annual       may be charged to the fund or if they involve the
affected by dispute resolution proceedings.           and semiannual reports, are available free of       investment principles of the fund or significant
                                                      charge from the Company. The text of the Terms      investor rights, investors shall additionally be
                                                      and Conditions of Investment is annexed to this     informed on paper or in electronic format
                                                      sales prospectus. They can also be viewed on        (so-called “durable medium”) by the institutions
                                                      the Internet at deutscheam.com.                     maintaining their custody accounts. This informa-
                                                                                                          tion shall include the material content of the
                                                                                                          proposed amendments and their background, the
                                                                                                          rights of investors in connection with the amend-
                                                                                                          ments, as well as a notice indicating where and
                                                                                                          how more information can be obtained.




                                                                                                                                                            3
The earliest date on which amendments shall          The Company has accounted for the professional          consistent with the KAGB and the Terms and
come into force is on the day following their        liability risks that arise from the management of       Conditions of Investment. If this is the case,
publication. Amendments to the provisions            investment undertakings that do not comply with         it must grant its consent to such investment;
concerning fees and reimbursement of expenses        the UCITS Directive, so-called Alternative Invest-   –– Ensuring that the income of the fund is used
shall come into force no earlier than three          ment Funds (hereinafter “AIFs”), and which are          as provided for by the KAGB and Terms and
months after their publication unless an earlier     due to professional negligence by its governing         Conditions of Investment,
date has been specified with the consent of          bodies or employees, with own funds in the           –– Monitoring borrowing by the Company for
BaFin. Amendments to the fund’s current invest-      amount of at least 0.01% of the value of all AIF        the account of the fund and, where required,
ment principles shall likewise take effect no        portfolios under management; this amount shall          consenting to such borrowing in cases other
earlier than three months after their                be reviewed and adjusted annually. These own            than short-term overdrafts that resulted
announcement.                                        funds are included in the disclosed liable equity       solely from delayed credits of incoming
                                                     capital.                                                payments,
                                                                                                          –– Ensuring that collateral for securities loans
Management Company                                                                                           has been provided in a legally valid manner
                                                     Depositary                                              and is available at all times.
Company name, legal form
and registered office                                Identity of the Depositary                           Sub-custody and conflicts of interest
The Company is an asset management company           The credit institution State Street Bank Interna-    The Company has received the functions and
as defined by the KAGB founded on May 22,            tional GmbH, whose registered office is located      information outlined in this section “Sub-custody
1956, in the legal form of a company with limited    at Brienner Straße 59, 80333 Munich, Germany,        and conflicts of interest” from the Depositary and
liability (Gesellschaft mit beschränkter Haftung;    has assumed the function of Depositary for the       thus relies on the timely provision of complete and
GmbH). The Company’s name is DWS Investment          fund. The Depositary is a credit institution under   correct data and information by the Depositary.
GmbH (prior to September 2018: Deutsche Asset        German law. Its principal activities consist of
Management Investment GmbH). The Company             depository and custodial services.                   The Depositary has appointed State Street Bank &
has its registered office at Mainzer Landstraße                                                           Trust Company, with its registered office at Copley
11–17, 60329 Frankfurt/Main, Germany, and is         Functions of the Depositary                          Place 100, Huntington Avenue, Boston, Massachu-
registered in Part B of the Commercial Register of   The KAGB provides for a separation of the duties     setts 02116, United States, as its global depositary
the Frankfurt/Main Local Court under the number      of management and custody for investment             (hereinafter “Global Depositary”) to hold foreign
HRB 9135.                                            funds. The Depositary is a credit institution and    assets in custody. The Global Depositary in turn
                                                     keeps the fund’s assets in blocked custody and       has delegated the custody duties to various
The Company is authorized to manage UCITS            cash accounts. For assets that cannot be held in     sub-depositaries domiciled in the countries listed
according to article 1 (2) in conjunction with       custody, the Depositary checks whether these         below so that the foreign assets may be held in
articles 192 et seq. KAGB, ’Mixed’ investment        assets belong to the investment fund or whether      custody in the relevant countries.
undertakings according to articles 218 et seq.       the Management Company has acquired owner-
KAGB, ’Other’ investment undertakings accord-        ship of these assets and keeps records on this.      In the countries below, the Global Depositary has
ing to articles 220 et seq. KAGB and retirement      The Depositary monitors whether the Company’s        delegated the custody of the assets to the sub-­
investment funds according to article 347 KAGB       use of the assets is in compliance with the          depositaries listed:
in conjunction with article 87 of the Investment     provisions of the KAGB and the Terms and
Act in the version applicable until July 21, 2013,   Conditions of Investment. The investment of
as well as open-ended domestic institutional         assets in bank balances at another credit institu-
AIFs with fixed terms and conditions of invest-      tion, as well as the use of such bank balances,
ment according to article 284 KAGB that invest in    are permissible only with the consent of the
the assets named in article 284 (1) and (2) KAGB     Depositary. The Depositary must grant its con-
with the exception of the assets named in            sent if such investment or use of assets is
article 284 (2) (e) and (f) KAGB. In addition, the   consistent with the Terms and Conditions of
Company is authorized to manage EU invest-           Investment and the provisions of the KAGB.
ment undertakings or foreign AIFs whose per-
missible assets correspond to those for domes-       The Depositary additionally has the following
tic investment undertakings.                         duties, in particular:

Management and supervisory board                     –– Issuing and redeeming units of the fund;
For further information on the management of the     –– Ensuring that the issue and redemption of
Company and the composition of its supervisory          units, as well as the determination of the net
board, please consult the final section of this         asset value per unit, comply with the provi-
document.                                               sions of the KAGB and the Terms and Condi-
                                                        tions of Investment;
Equity capital and additional                        –– Ensuring that, for transactions conducted for
own funds                                               the collective account of the investors,
The Company has capital stock in the amount of          custody of the equivalent value is taken
EUR 115 million (as of: December 31, 2017). The         within the customary time limits, and that
liable equity capital of the Company amounts to         the income of the fund is used in accordance
EUR 183,2 million (as of December 31, 2017).            with the provisions of the KAGB and the
                                                        Terms and Conditions of Investment. The
                                                        Depositary must further review whether the
                                                        use of blocked cash accounts or blocked
                                                        custody accounts at another credit institution,
                                                        a securities firm or another depositary is




4
Name of sub-depositary                                Country                  Registered office   Conflicts of interest*

HSBC Bank Egypt S.A.E.                             Egypt                       Cairo               Variant 1
Raiffeisen Bank sh.a.                              Albania                     Tirana              Variant 1
Citibank N.A.                                      Argentina                   Buenos Aires        Variant 1
The Hongkong and Shanghai Banking Corporation Ltd. Australia                   Sydney              Variant 1
HSBC Bank Middle East Ltd.                         Bahrain                     Al Seef             Variant 1
Standard Chartered Bank                            Bangladesh                  Dhaka               Variant 1
Deutsche Bank AG, Netherlands                      Belgium                     Amsterdam           Variant 2
(operated by the Amsterdam branch
with support from the Brussels branch)
via Standard Chartered Bank                        Benin                       Abidjan             Variant 1
Côte d’Ivoire SA		                                                             (Côte d’Ivoire)
HSBC Bank Bermuda Ltd.                             Bermuda                     Hamilton            Variant 1
UniCredit Bank d.d.                                Bosnia and Herzegovina      Sarajevo            Variant 1
Standard Chartered Bank Botswana Ltd.              Botswana                    Gaborone            Variant 1
Citibank, N.A.                                     Brazil                      São Paulo           Variant 1
Citibank Europe plc, Bulgaria branch               Bulgaria                    Sofia               Variant 1
UniCredit Bulbank AD                               Bulgaria                    Sofia               Variant 1
via Standard Chartered Bank                        Burkina Faso                Abidjan             Variant 1
Côte d’Ivoire S.A.		                                                           (Côte d’Ivoire)
Itaú CorpBanca S.A.                                Chile                       Santiago de Chile   Variant 1
HSBC Bank (China) Company Ltd.                     China                       Shanghai            Variant 1
China Construction Bank Corporation                China                       Beijing             Variant 1
The Hongkong and Shanghai Banking Corporation Ltd. China                       Hong Kong           Variant 1
Citibank N.A.                                      China                       Hong Kong           Variant 1
Standard Chartered Bank (Hong Kong) Ltd.           China                       Hong Kong           Variant 1
Clearstream Banking S.A.                           Clearstream                 Luxembourg          Variant 1
Banco BCT S.A.                                     Costa Rica                  San José            Variant 1
Skandinaviska Enskilda Banken AB (publ), Sweden    Denmark                     Copenhagen          Variant 1
Nordea Bank AB (publ) (operated by                 Denmark                     Copenhagen          Variant 1
Nordea Bank Danmark AB (publ) branch, Sweden)
Deutsche Bank AG                                   Germany                     Eschborn            Variant 2
State Street Bank International GmbH               Germany                     Munich              Variant 1
Standard Chartered Bank                            Côte d’Ivoire               Abidjan             Variant 1
Côte d’Ivoire S.A.		                                                           (Côte d’Ivoire)
AS SEB Pank                                        Estonia                     Tallinn             Variant 1
Euroclear Bank S.A./N.V.                           Euroclear                   Brussels            Variant 1
Skandinaviska Enskilda Banken AB (publ), Sweden    Finland                     Helsinki            Variant 1
(operated by the Helsinki branch)
Nordea Bank AB (publ) Sweden (operated by          Finland                     Helsinki            Variant 1
Nordea Bank AB (publ) branch, Finland)
Deutsche Bank AG                                   France                      Amsterdam           Variant 2
(operated by the Amsterdam branch)
JSC Bank of Georgia                                Georgia                     Tbilisi             Variant 1
Standard Chartered Bank Ghana Ltd.                 Ghana                       Accra               Variant 1
BNP Paribas Securities Services S.C.A.             Greece                      Athens              Variant 1
via Standard Chartered Bank                        Guinea-Bissau               Abidjan             Variant 1
Côte d’Ivoire S.A.		                                                           (Côte d’Ivoire)
Standard Chartered Bank (Hong Kong) Ltd.           Hong Kong                   Hong Kong           Variant 1
Deutsche Bank AG                                   India                       Mumbai              Variant 2
The Hongkong and Shanghai Banking Corporation Ltd. India                       Mumbai              Variant 1
Deutsche Bank AG                                   Indonesia                   Jakarta             Variant 2
State Street Bank and Trust Company,               Ireland                     Edinburgh           Variant 1
United Kingdom branch
Landsbankinn hf.                                   Iceland                     Reykjavik           Variant 1
Bank Hapoalim B.M.                                 Israel                      Tel Aviv            Variant 1
Deutsche Bank S.p.A.                               Italy                       Milan               Variant 2
Scotia Investments Jamaica Ltd.                    Jamaica                     Kingston            Variant 1
Mizuho Bank Ltd.                                   Japan                       Tokyo               Variant 1
The Hongkong and Shanghai Banking Corporation Ltd. Japan                       Tokyo               Variant 1
Standard Chartered Bank                            Jordan                      Amman               Variant 1
State Street Trust Company Canada                  Canada                      Toronto             Variant 1
HSBC Bank Middle East Ltd.                         Qatar                       Doha                Variant 1
JSC Citibank Kazakhstan                            Kazakhstan                  Almaty              Variant 1
Standard Chartered Bank Kenya Ltd.                 Kenya                       Nairobi             Variant 1
Cititrust Colombia S.A. Sociedad Fiduciaria        Colombia                    Bogotá, D.C.        Variant 1
Deutsche Bank AG                                   Korea (Republic of Korea)   Seoul               Variant 2



                                                                                                                            5
Name of sub-depositary                               Country                   Registered office   Conflicts of interest*

The Hongkong and Shanghai Banking Corporation Ltd. Korea (Republic of Korea)   Seoul               Variant 1
Privredna Banka Zagreb d.d.                        Croatia                     Zagreb              Variant 1
Zagrebacka Banka d.d.                              Croatia                     Zagreb              Variant 1
HSBC Bank Middle East Ltd.                         Kuwait                      Safat               Variant 1
AS SEB banka                                       Latvia                      Riga                Variant 1
AB SEB bankas                                      Lithuania                   Vilnius             Variant 1
Standard Bank Ltd.                                 Malawi                      Blantyre            Variant 1
Deutsche Bank (Malaysia) Berhad                    Malaysia                    Kuala Lumpur        Variant 2
Standard Chartered Bank Malaysia Berhad            Malaysia                    Kuala Lumpur        Variant 1
via Standard Chartered Bank                        Mali                        Abidjan             Variant 1
Côte d’Ivoire S.A.		                                                           (Côte d’Ivoire)
Citibank Maghreb                                   Morocco                     Casablanca          Variant 1
The Hongkong and Shanghai Banking Corporation Ltd. Mauritius                   Ebène (CyberCity)   Variant 1
Banco Nacional de México S.A.                      Mexico                      Mexico City         Variant 1
Standard Bank Namibia Ltd.                         Namibia                     Windhoek            Variant 1
The Hongkong and Shanghai Banking Corporation Ltd. New Zealand                 Auckland            Variant 1
Deutsche Bank AG                                   Netherlands                 Amsterdam           Variant 2
via Standard Chartered Bank                        Niger                       Abidjan             Variant 1
Côte d’Ivoire S.A.		                                                           (Côte d’Ivoire)
Stanbic IBTC Bank Plc.                             Nigeria                     Lagos               Variant 1
Skandinaviska Enskilda Banken AB (publ) Sweden     Norway                      Oslo                Variant 1
Nordea Bank AB (publ) Sweden (operated by          Norway                      Oslo                Variant 1
Nordea Bank AB (publ) branch, Norway)
HSBC Bank Oman S.A.O.G.                            Oman                        Seeb                Variant 1
UniCredit Bank Austria AG                          Austria                     Vienna              Variant 1
Deutsche Bank AG                                   Austria                     Vienna              Variant 2
Citibank N.A.                                      Panama                      Panama City         Variant 1
Deutsche Bank AG                                   Pakistan                    Karachi             Variant 2
Citibank del Perú S.A.                             Peru                        Lima                Variant 1
Deutsche Bank AG                                   Philippines                 Makati City         Variant 2
Bank Handlowy w Warszawie S.A.                     Poland                      Warsaw              Variant 1
Bank Polska Kasa Opieki SA                         Poland                      Warsaw              Variant 1
Deutsche Bank AG (operated by                      Portugal                    Amsterdam           Variant 2
the Amsterdam branch with support
from the Lisbon branch)
Citibank, N.A.                                     Puerto Rico                 San Juan            Variant 1
Citibank Europe plc, Dublin – Romania branch       Romania                     Bucharest           Variant 1
AO Citibank                                        Russia                      Moscow              Variant 1
Standard Chartered Bank Zambia Plc                 Zambia                      Lusaka              Variant 1
HSBC Saudi Arabia Ltd.                             Saudi Arabia                Riyadh              Variant 1
Skandinaviska Enskilda Banken AB (publ)            Sweden                      Stockholm           Variant 1
Nordea Bank AB (publ)                              Sweden                      Stockholm           Variant 1
UBS Switzerland AG                                 Switzerland                 Zurich              Variant 1
Credit Suisse (Switzerland) Ltd.                   Switzerland                 Zurich              Variant 1
via Standard Chartered Bank                        Senegal                     Abidjan             Variant 1
Côte d’Ivoire S.A.		                                                           (Côte d’Ivoire)
UniCredit Bank Serbia JSC                          Serbia                      Belgrade            Variant 1
Stanbic Bank Zimbabwe Ltd.                         Zimbabwe                    Harare              Variant 1
Citibank N.A.                                      Singapore                   Singapore           Variant 1
United Overseas Bank Ltd.                          Singapore                   Singapore           Variant 1
UniCredit Bank Czech Republic and Slovakia, a.s.   Slovak Republic             Bratislava          Variant 1
UniCredit Banka Slovenija d.d.                     Slovenia                    Ljubljana           Variant 1
Deutsche Bank S.A.E.                               Spain                       Madrid              Variant 2
The Hongkong and Shanghai Banking Corporation Ltd. Sri Lanka                   Colombo             Variant 1
UniCredit Bank d.d.                                Republika Srpska (Bosnia)   Sarajevo            Variant 1
FirstRand Bank Ltd.                                South Africa                Johannesburg        Variant 1
Standard Bank of South Africa Ltd.                 South Africa                Johannesburg        Variant 1
Standard Bank Swaziland Ltd.                       Swaziland                   Mbabane             Variant 1
Deutsche Bank AG                                   Taiwan                      Taipei              Variant 2
Standard Chartered Bank (Taiwan) Ltd.              Taiwan                      Taipei              Variant 1
Standard Chartered Bank Tanzania Ltd.              Tanzania                    Dar es Salaam       Variant 1
Standard Chartered Bank (Thai)                     Thailand                    Bangkok             Variant 1
Public Company Ltd.
via Standard Chartered Bank                        Togo                        Abidjan             Variant 1
Côte d’Ivoire S.A.		                                                           (Côte d’Ivoire)
Československá obchodni banka, a.s.                Czech Republic              Prague              Variant 1



6
Name of sub-depositary                                               Country                           Registered office                       Conflicts of interest*

UniCredit Bank Czech Republic and Slovakia, a.s.                     Czech Republic                    Prague                                  Variant 1
Union Internationale de Banques                                      Tunesia                           Tunis                                   Variant 1
Citibank A.Ş.                                                        Turkey                            Istanbul                                Variant 1
Deutsche Bank, A.Ş.                                                  Turkey                            Istanbul                                Variant 2
Standard Chartered Bank Uganda Ltd.                                  Uganda                            Kampala                                 Variant 1
PJSC Citibank                                                        Ukraine                           Kiev                                    Variant 1
UniCredit Bank Hungary Zrt.                                          Hungary                           Budapest                                Variant 1
Citibank Europe plc Magyarországi Fióktelepe                         Hungary                           Budapest                                Variant 1
Banco Itaú Uruguay S.A.                                              Uruguay                           Montevideo                              Variant 1
State Street Bank and Trust Company                                  United States                     Boston                                  Variant 1
Citibank N.A.                                                        Venezuela                         Caracas                                 Variant 1
HSBC Bank Middle East Ltd.                                           United Arab                       Dubai                                   Variant 1
		                                                                   Emirates – (ADX)
State Street Bank and Trust Company,                                 United Kingdom                    Edinburgh                               Variant 1
United Kingdom branch
HSBC Bank (Vietnam) Ltd.                                             Vietnam                           Ho Chi Minh City                        Variant 1
BNP Paribas Securities Services S.C.A.                               Cyprus                            Athens                                  Variant 1
(operated by the Athens branch)
*   Variant 1: No conflicts of interest are identified. Potential conflicts of interest would be mitigated by the configuration of the depositary/sub-depositary contract.
    Variant 2: The sub-depositary is a company affiliated with the Management Company.

Additional information
The list of sub-depositaries is current as of the date indicated on the title page of this sales prospectus. Upon request, the Company will provide investors
with the most up-to-date information on the Depositary and its obligations, as well as on the sub-depositaries and on any possible and actual conflicts of
interest in connection with the activity of the Depositary or the sub-depositaries. An updated list of sub-depositaries can also be found on the Internet at
http://www.deutscheam.com/Legal-Resources.




In addition to keeping actual custody of foreign           are therefore kept separate from the division that                    –– Transfer of information within the
assets at the foreign sub-depositary according to          has an additional vote in lending decisions (“Back                        company on a strict “need to know”
the laws and customs of the respective country of          Office”). This separation also applies to the func-                       basis
custody, the foreign sub-depositary additionally           tions that monitor and communicate risks (“Risk                       –– Access rights to information and
provides for the redemption of interest, dividend          Controlling”) and the functions responsible for                           physical access rights to company
and income coupons, and for the redemption of              settlement and control of lending transactions and                        departments For instance, the techni-
securities repayable at maturity. Furthermore, the         settlement and control of trading transactions.                           cal systems in place currently ensure
sub-depositary forwards information on corporate           According to information disclosed to the Com-                            that the provision of fund administra-
actions relating to the foreign securities held in         pany, depositary operations are also completely                           tion insourcing services is completely
custody.                                                   separate from the business units that provide                             separate from depositary services.
                                                           services associated with collateral management,                  –– Guidelines on wall crossing
According to the Depositary, actual and potential          for example for securities lending transactions             2.   Separate monitoring of relevant persons
conflicts of interest arising in relation to the           (“Collateral Management Services”), and carrying            3.   No detrimental dependencies in the compen-
Global Depositary at the first sub-depositary level        out fund administration insourcing activities (“KVG              sation system
are handled in conformity with the law. For more           Backoffice Insourcing”). In cases where the duties          4.   No detrimental influence by employees on
information, refer to the explanations below.              of the asset management company are insourced,                   other employees
                                                           the “division solution” as defined in BaFin Circular        5.   Avoidance of giving an employee responsibil-
The Depositary has informed the Company that               08/2015 (WA) on the Tasks and Duties of the                      ity for various activities which, if carried out
it handles conflicts of interest as summarized             Depositary or BaFin Circular 01/2017 (WA) on the                 simultaneously, may give rise to conflicts of
below:                                                     Minimum Requirements on Risk Management for                      interest
                                                           Investment Companies (KAMaRisk) has been                    6.   As a last resort, notification of the affected
The Depositary’s Compliance department is                  implemented with regard to spatial and personnel                 clients of conflicts of interest not sufficiently
tasked with the function of the “independent               as well as functional and hierarchical separation,               avoidable or controllable.
bodies” required in accordance with arti-                  according to the Depositary.
cle 70 (2), sentence 4, KAGB or article 85 (2),                                                                        Liability of the Depositary
sentence 4, KAGB.                                          As per information provided to the Company, the             The Depositary is generally responsible for all
                                                           Depositary’s Conflict of Interest Policy covers the         assets held in custody by it, or by another institu-
The schedule of responsibilities and the organiza-         full range of conflict of interest issues from both         tion with its consent. In the case of a loss of
tional structure of the Depositary comply with the         the WpHG perspective and the depositary per-                such an asset, the Depositary is liable to the
statutory and regulatory requirements according            spective, and prescribes the use of various meth-           fund and its investors, unless such loss is attrib-
to information provided to the Company and, in             ods to prevent conflicts of interest. A short sum-          utable to events beyond the influence of the
particular, satisfy the requirement for preventing         mary of these is provided below:                            Depositary. For losses that are not losses of
conflicts of interest. The division that initiates                                                                     assets, the Depositary is generally only liable if it
lending transactions and has a vote in lending             1. Control of information flow:                             has failed to meet its obligations pursuant to the
decisions (“Front Office”) and the “Trading”                  –– Guidelines for Chinese Walls and their                provisions of the KAGB and if such failure was at
division up to and including the management level                management                                            least negligent.



                                                                                                                                                                             7
Risk warnings                                            Suspension of the redemption of units                  units are removed from the investor’s custody
                                                         The Company may suspend the redemption of              account after completion of the liquidation
Before making any decision to purchase units             units under exceptional circumstances that make        proceedings.
of the fund, investors should read carefully             a suspension appear necessary when taking into
the following risk warnings together with the            consideration the interests of investors. Excep-       Transfer of all the assets of the fund to another
other information contained in this sales                tional circumstances by this definition can be, for    open-ended retail investment undertaking (merger)
prospectus, and give due consideration to                example, economic or political crises, exception-      The Company can transfer all the assets of the
them when making their investment decision.              ally extensive redemption requests, the closing        fund to another UCITS. In this case, the investor
The occurrence of one or more of these risks             of exchanges or markets, trading constraints or        can (i) return his units, (ii) retain his units and
by itself or in combination with other circum-           other factors that adversely affect the determina-     consequently become an investor of the receiv-
stances can adversely affect the performance             tion of the net asset value per unit. In addition,     ing UCITS or (iii) exchange his units for units of
of the fund, or of the assets held in the fund,          BaFin may order that the Company suspend the           an open-ended retail investment undertaking
and may consequently have an adverse effect              redemption of units if that is necessary in the        having comparable investment principles, pro-
on the net asset value per unit. If the investor         interests of the investors or the public. The          vided the Company or an entity affiliated with it
sells units of the fund on a date at which the           investor cannot return units during such periods.      manages such an investment undertaking having
prices of the assets contained in the fund               The net asset value per unit can fall even when        comparable investment principles. The same
have fallen in relation to the date at which the         the redemption of units is suspended, as would         applies if the Company transfers all the assets of
units were purchased, the investor will get              be the case if the Company were forced to sell         another open-ended retail investment undertak-
back none or less than the full amount of the            assets below market value during a suspension          ing into the fund. The investor must therefore, in
capital invested in the fund.                            of the redemption of units. The net asset value        the context of the transfer, make a new invest-
                                                         per unit after resumption of the redemption of         ment decision prematurely. Income taxes may
The investor could lose part or even all of the          units can be lower than the net asset value per        be incurred when returning the units. In an
capital invested in the fund. Appreciation of            unit before suspension of redemption.                  exchange of units for units of an investment
capital cannot be guaranteed. The investor’s                                                                    undertaking having comparable investment
risk is limited to the sum invested. There is no         A suspension without subsequent resumption of          principles, the investor may be charged income
obligation to make subsequent payments in                the redemption of units can lead directly to a         taxes if, for instance, the value of the units
addition to the capital invested by the inves-           liquidation of the investment fund, as is the case     received is higher than the value of the old units
tor. Aside from the risks and uncertainties              when the Company terminates its management             at the time of purchase.
described in what follows, or elsewhere in the           of the fund and the right to manage the fund is
sales prospectus, the performance of the fund            transferred to the Depositary for the purpose of       Transfer of the fund to another asset
might also be adversely affected by various              liquidating the fund. For the investor, this entails   management company
other risks and uncertainties that are cur-              the risk that the planned holding period might         The Company may transfer the right to manage
rently unknown. The order in which the                   not be realized, and that significant portions of      and dispose of the fund to another asset manage-
following risks are listed shall not be con-             the capital invested might not be available for an     ment company. The fund remains unchanged by
strued as an indication either of the probabil-          indefinite period of time or may be lost entirely.     such transfer, as does the position of the investor.
ity of their occurrence or of the scope or                                                                      The investor must, however, decide in the context
significance of the occurrence of particular             Amendment of the investment policy and of the          of the transfer whether the new asset manage-
risks.                                                   Terms and Conditions of Investment                     ment company can be considered just as suitable
                                                         The Company can change the Terms and Condi-            as the previous one. If the investor does not wish
Risks of investing in the fund                           tions of Investment with the approval of BaFin.        to remain invested in the fund under the new
In the following, the risks typically associated         A change in the Terms and Conditions of Invest-        management, the units held by the investor must
with an investment in a UCITS are presented.             ment can also change regulations affecting the         be returned. Income taxes may be incurred in this
These risks can have an adverse effect on the            investor. For instance, by changing the Terms and      case.
net asset value per unit, on the capital invested        Conditions of Investment, the Company can
by the investor and on the investor’s planned            change the fund’s investment policy or increase        Profitability and fulfillment of the investor’s
holding period for the fund investment.                  the costs to be charged to the fund. The Com-          investment objectives
                                                         pany can additionally change the investment            No assurance can be given that the investor will
Fluctuation of the fund’s net asset value per unit       policy within the statutorily and contractually        achieve the desired investment performance. The
The net asset value per unit is calculated as the        permissible investment spectrum, and thus              net asset value per unit of the fund can fall and
value of the fund divided by the number of units         without changing the Terms and Conditions of           lead to investor losses. There are no guarantees
in circulation. The value of the fund is equal to        Investment and without BaFin approval. This can        from the Company or from third parties concern-
the sum of the market values of all assets held in       result in a change to the risk associated with the     ing a particular minimum payment commitment
the fund, less the market values of all liabilities of   fund.                                                  upon redemption or a particular investment
the fund. The fund’s net asset value per unit is                                                                performance of the fund. An initial sales charge
thus dependent on the assets held in the fund            Liquidation of the fund                                paid in a purchase of units, or a redemption fee
and on the amount of the fund’s liabilities. If the      The Company has the right to terminate its man-        paid in a sale of units, can additionally reduce or
value of these assets declines, or if the value of       agement of the fund. After termination of man-         even completely consume the performance of an
the liabilities rises, the fund’s net asset value per    agement, the Company can completely liquidate          investment, particularly in the case of a short
unit falls.                                              the fund. After a six-month period of notice, the      investment period. Investors could receive back
                                                         right to manage and dispose of the fund passes to      an amount that is lower than the amount origi-
Impact of tax aspects on individual results              the Depositary. For the investor, this entails the     nally invested.
The tax treatment of income from capital assets          risk that the holding period planned by the inves-
depends on the individual circumstances of the           tor will not be realized. When the fund passes to
respective investor, and may be subject to               the Depositary, taxes other than German income
change in the future. The investor should consult        taxes may be imposed on the fund. Income taxes
his personal tax advisor on investor-specific            may be imposed on the investor when the fund
issues – giving particular consideration to the
personal tax situation.



8
Risk of negative performance                             Risk of price changes in equities                      at the time the provision was created. Secondly,
of the fund (market risk)                                Equities are known to be subject to strong price       the new rule about the dividend date could lead
The risks described below can affect the perfor-         fluctuations and thus also to the risk of price        to a sharper divergence between the buying and
mance of the fund or of the assets held in the           declines. These price fluctuations are particularly    selling prices of the equities concerned than
fund, and can thus also adversely affect the net         influenced by the issuing company’s earnings           would otherwise been the case, which may
asset value per unit and the capital invested by         performance and by developments in the indus-          result in more unfavorable market conditions
the investor.                                            try and in the overall economy. The confidence of      overall.
                                                         market participants in the particular company can
Risk of change in value                                  affect price performance as well. This is espe-        Tax law applicable beginning January 1, 2018
The assets in which the Company invests for              cially true for companies whose shares have only       From January 1, 2018, onward, the fund is
the account of the fund are subject to risks.            been admitted to an exchange or other organized        partially subject to corporate income tax on its
Losses of value can thus occur if the market             market for a shorter period of time; even slight       domestic income from equity investments and
value of the assets falls in relation to the pur-        changes in estimates can trigger strong price          on other domestic income, in the sense of the
chase price, or if spot and forward prices               movements in the shares of such companies.             limited income tax liability, not including gains on
develop differently.                                     If a particular stock has a low proportion of          the sale of ownership interests in corporations.
                                                         shares that trade freely and are owned by many         The tax rate is 15%. Therefore, the 45-day rule
Risk of negative interest on deposits                    shareholders (the so-called “free float”), even        described above is no longer required to be
The Company invests liquid assets of the fund            smaller buy and sell orders for that stock can         observed from this date forward. An exception
with the Depositary or other banks for the               have a strong impact on the market price, thus         applies to unit classes for tax-privileged investors
account of the fund, whereby the deposits earn           leading to higher price fluctuations.                  and in the context of the procedure for reimburs-
interest at customary market rates. Depending                                                                   ing certain investor groups for corporate income
on the development of the interest rate policy of        Tax law applicable through December 31, 2017           tax incurred at fund level (additional details in II.
the respective central banks – in particular of the      On July 26, 2016, the Investment Tax Reform            1. under “Tax law applicable beginning January 1,
European Central Bank, the Federal Reserve               Act was promulgated, which, among other                2018” in the summary of tax regulations of
(“Fed”), the Bank of England and/or the Swiss            things, amended the Investment Tax Act and             importance to investors (with unlimited tax
National Bank – and depending on the respective          the Income Tax Act. In order to avoid tax              liability in Germany)). In the aforementioned
currency of the fund or of the unit class, short-        arrangements (so-called cum/cum transactions),         cases, if the 45-day rule is not observed, the tax
term, medium-term and even long-term deposits            a regulation under this law provides that a            exemption or reimbursement of tax on domestic
can attract negative interest.                           definitive capital gains tax is charged on divi-       income from equity investments is not granted.
                                                         dends of German shares and income from                 For tax-privileged investors, such cases result in a
Capital-market risk                                      German dividend rights similar to equities. In         definitive tax liability of 15% on the German
The price or market performance of financial             contrast to the main body of this law, this            gross dividend.
instruments depends, in particular, on the               regulation entered into force retroactively on
performance of the capital markets, which in             January 1, 2016. It can be summarized as               Risk of changes in interest rates
turn are affected by the overall economic situa-         follows: In a change from previous regulations,        Investing in fixed-rate securities is associated
tion worldwide and by the general economic               under certain conditions the gross dividends of        with the possibility that the level of market
and political environment in individual countries.       German funds are to be charged a definitive            interest rates existing at the time a security is
Risks relating to general economic conditions can        German investment income tax of 15% on the             issued will change. If market interest rates rise in
be posed by uncertainty about economic growth            fund entry side. This is to be the case if German      comparison with the interest rates at the time of
in the most important industrial and emerg-              equities and German dividend rights similar to         the issue, the prices for fixed-interest securities
ing-market countries and its impact on the global        equities are not held by the fund for 45 days          will fall as a rule. If, on the other hand, the mar-
economy, as well as by the sovereign debt.               without interruption within a period of 45 days        ket interest rate falls, the price of fixed-rate
Capital market risks can arise from the interest         before and after the investment income was             securities will rise. This price trend means that
rate levels prevailing in an investment environ-         payable (= 91-day period) and the minimum risk         the current return on a fixed-rate security is
ment and their potential impact (on bond yields,         of changes in value was not at 70% throughout          roughly equivalent to the current market interest
for example). The capital markets are directly and       that entire 45-day period (“45-day rule”). An          rate. However, these price fluctuations vary
indirectly influenced by the measures taken by           obligation to directly or indirectly pay the invest-   according to the (residual) term to maturity of the
different central banks (e.g., interest rate adjust-     ment income to another person (e.g., through           fixed-rate securities. Fixed-rate securities with
ments, expansive or restrictive monetary policy,         swaps, securities lending transactions, repur-         shorter maturities are generally associated with
programs for purchases and sales of securities)          chase agreements) also results in the levy of          lower price risks than fixed-rate securities with
and their interactions. This can affect the liquidity,   the investment income tax.                             longer maturities. Conversely, fixed-rate securi-
return and market risks of the fund.                                                                            ties with shorter maturities generally have lower
Risks relating to the political environment              In this context, hedging or forward transactions       returns than longer-term fixed-rate securities.
include, for example, uncertainties about the            that directly or indirectly hedge the risk arising     Due to their short terms not exceeding 397 days,
development of the European Union, uncertain-            from German equities or German dividend rights         money market instruments tend to be associated
ties concerning upcoming elections and refer-            similar to equities may be detrimental. Hedging        with lower price risks. In addition, the interest
enda, and uncertainties relating to developments         transactions on value and price indices are            rates of different interest-related financial instru-
in (potential) crisis regions.                           considered to be indirect hedges. The hedging          ments denominated in the same currency and
Irrational factors such as sentiment, opinions and       transactions may also be detrimental if related        with similar residual terms to maturity can
rumors can also have an effect on general price          parties participate in the fund.                       perform differently.
performance, particularly on an exchange. Fluctu-
ations of market prices and values can also be           This can give rise to various risks. It cannot be
attributable to changes in interest rates, the price     ruled out that the unit price of a fund turns out to
of commodities such as oil, exchange rates or            be relatively lower if provisions are created for a
the creditworthiness of an issuer of financial           possible tax liability of the fund. Even if the tax
instruments.                                             liability does not arise and therefore provisions
                                                         are reversed, a relatively higher unit price may
                                                         not benefit investors who participated in the fund



                                                                                                                                                                   9
Risk of price changes in convertible                  –– It may not be possible to buy or sell the           Risks associated with the acceptance
and warrant-linked bonds                                 assets underlying the derivatives at a favor-       of collateral
Convertible and warrant-linked bonds securitize          able time; conversely, it may be necessary to       The Company receives collateral for derivative
the right to convert the bond into stock, or to          buy or sell them at an unfavorable time.            transactions, securities lending transactions and
acquire stock. The change in the value of convert-    –– Using derivatives can result in potential           repurchase agreements. The management of this
ible and warrant-linked bonds is thus dependent          losses that are not foreseeable under certain       collateral requires the deployment of systems
on the price performance of the underlying stock.        circumstances and which may even exceed             and the definition of certain processes. The
The performance risk of the underlying stocks            the initial margins paid.                           failure of these processes as well as human or
can therefore also have an effect on the perfor-                                                             system failure at the Company or external third
mance of the convertible or warrant-linked bond.      The following risks can occur in over-the-counter      parties in connection with the management of
Warrant-linked bonds that give the issuer the         (“OTC”) transactions:                                  collateral may result in the risk that the collateral
right to issue to the investor a predetermined                                                               could depreciate or no longer be sufficient to
number of shares instead of paying back a             –– There may be no organized market, and it            fully cover the Company’s claim to delivery or
principal amount (reverse convertibles) are              may therefore be difficult or impossible for        retransfer with respect to the counterparty.
dependent on the price of the corresponding              the Company to sell the financial instruments
stock to a greater extent.                               acquired in the OTC market for the account          Risk in securitization positions with no retention
                                                         of the fund.                                        The fund may acquire securities backed by loans
Risks associated with derivative transactions         –– Given the individual nature of agreements,          (loan securitization positions) issued after Janu-
The Company may enter into derivative transac-           back-to-back transactions (closing of position)     ary 1, 2011, only if the lender retains an interest
tions for the fund. Buying and selling options, as       may be difficult or impossible, or may entail       in the securitization of at least 5% and complies
well as the conclusion of futures contracts or           substantial costs.                                  with other requirements. The Company is there-
swaps, involves the following risks:                                                                         fore obligated to initiate corrective measures in
                                                      Risks in securities lending transactions               the interests of the investors if loan securitiza-
–– Price changes in the underlying can cause a        If the Company grants a loan of securities for the     tions issued after this date fail to meet these EU
   decrease in the value of the option or future.     account of the fund, it transfers the securities to    standards. As part of these corrective measures,
   If the value decreases to a total loss, the        a borrower, which returns securities of the same       the Company may be forced to sell such loan
   Company may be forced to allow the rights          kind, quantity and quality at the end of the           securitization positions. Given the legal require-
   acquired to expire. Changes in the value of        transaction (securities loan). For the duration of     ments for banks, fund companies and possibly
   the asset underlying a swap can also result in     the transaction, the Company has no right to use       insurance companies in the future as well, there
   losses for the fund.                               lent securities. If the security loses value during    is a risk that the Company will not be able to sell
–– The leverage effect of options may alter the       the transaction and the Company wants to               such loan securitization positions held in the
   value of the fund’s assets more strongly than      dispose of the security altogether, it must termi-     fund, or will be able to do so only with deep
   the direct purchase of underlyings would. The      nate the lending transaction and await the cus-        discounts or after very long delays.
   risk of loss may not be determinable when          tomary settlement cycle, which can result in a
   entering into the transaction.                     risk of loss for the fund.                             Inflation risk
–– There may be no liquid secondary market for                                                               All assets are subject to a risk of devaluation
   a specific instrument at a particular point in     Risks in repurchase agreements                         through inflation. This is also true for the assets
   time. In that case, it may not be possible to      If the Company sells securities under a repur-         held in the fund. The rate of inflation can exceed
   close a derivative position under certain          chase agreement, it undertakes to buy them             the growth rate of the fund.
   circumstances.                                     back at the end of the agreement term in return
–– The purchase of options entails the risk that      for a premium. The repurchase price and the            Currency risk
   the call options are not exercised because         premium to be paid by the seller at the end of         Assets of the fund can be invested in a currency
   the prices of the underlyings do not change        the term is set when the agreement is entered          other than the fund currency. The fund receives
   as expected, meaning that the fund loses the       into. If the securities sold under a repurchase        the income, repayments and proceeds of such
   option premium it paid. If options are sold,       agreement should lose value during the term of         investments in that other currency. If the value of
   there is the risk that the fund may be obli-       the agreement, and if the Company wanted to            that currency falls in relation to the fund cur-
   gated to buy assets at a price that is higher      sell them to limit the losses of value, it can do so   rency, the value of such investments, and thus
   than the current market price, or obliged to       only by exercising the right of early termination.     also the value of the fund’s assets, is reduced.
   deliver assets at a price that is lower than the   Early termination of the agreement can entail
   current market price. In that case, the fund       financial losses for the fund. It is also possible     Concentration risk
   suffers a loss amounting to the price differ-      that the premium payable at the end of the term        If investment is concentrated on particular
   ence less the option premium received.             will turn out to be higher than the income the         assets or markets, the fund becomes particu-
–– In futures contracts, there is a risk that the     Company generated through reinvestment of the          larly heavily dependent on the performance of
   Company will be obligated, for the account of      cash received.                                         these assets or markets.
   the fund, to bear the difference between the       If the Company buys securities under a repur-
   price underlying the contract when it was          chase agreement, it must sell them back at the         Risks associated with investment in
   entered into and the market price when the         end of an agreement term. The repurchase price         investment fund units
   transaction is closed or matures. That would       is set when the agreement is entered into.             The risks entailed in investment undertakings
   result in losses for the fund. The risk of loss    Securities bought under a repurchase agreement         whose units are acquired for the fund (so-called
   is not determinable when entering into the         serve as collateral for providing the liquidity to     “target funds”) are closely linked to the risks
   futures contract.                                  the counterparty. The fund does not benefit from       inherent in the individual assets contained in
–– Any necessary back-to-back transactions            any increases in the value of the securities.          these target funds, and in the investment strate-
   (closing of position) incur costs.                                                                        gies pursued by these target funds. However,
–– Forecasts made by the Company about the                                                                   since the managers of the individual target funds
   future development of underlying assets,                                                                  operate independently of one another, it is also
   interest rates, prices and currency markets                                                               possible that several target funds will be engaged
   may turn out to be incorrect in retrospect.                                                               in similar or mutually opposing investment strate-
                                                                                                             gies. This can result in a cumulative effect of



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