March 27, 2007

Deutsche Bank launches FX Index to Benchmark Market

Deutsche Bank has today launched the DB Currency Return (DBCR) Index, the first foreign exchange index that captures long term systematic returns in currency markets. The DBCR replicates the three most widely employed FX strategies – carry, momentum and valuation - and wraps them into a single non-discretionary, rule based index. The DBCR represents the first investable benchmark for currency markets. Unlike bonds and equities, currencies have primarily been accessed via managed funds rather than indices.

The DBCR is backed by extensive research and mimics global currency returns. Deutsche Bank’s ground breaking research has demonstrated that currency markets can offer inherent excess returns, or beta, because the motivations of market participants vary. Profit-seekers benefit as a result of the large percentage of investors using FX markets for purposes other than profit.

To date, investing in actively managed currency funds have been the only means by which investors could benefit from the three strategies that represent the inherent returns of currency markets. The DBCR provides the first ever attempt to deliver beta directly to investors in the form of a benchmark index. Deutsche Bank believes this will encourage greater use of the highly liquid foreign exchange market for investors seeking diversification from equities and bonds or simply absolute returns.

Kevin Rodgers, Global Head of Complex Risk for FX and Commodities at Deutsche Bank commented: “Foreign exchange has been seen as an alternative asset class in the past, partly because of the absence of a widely followed benchmark. However, we believe FX is a compelling asset class in its own right and the DBCR index, which provides a benchmark, is an important development in this market.”

Deutsche Bank has led the development of FX indices, beginning with the launch of the DBFXIs, the first suite of tradeable indices that enabled clients and market professionals to establish positions in currencies without having to select specific currency pairs. This was followed by the launch of the DB Dynamic Carry Index (2002) and the DB Currency Harvest Indices (2005). To support the launch of DBCR, Deutsche Bank has also launched the DB Currency Momentum Index and the DB Currency Valuation Index in March 2007.

Pricing for the DBCR index is available on Bloomberg (DBCREUI Index) or on DBIQ. The index can be purchased in USD or EUR. It is accessible to all institutional and retail investors and options are also available.

For further information, please call:

Deutsche Bank

Michelle Gathercole    (44 20) 7545 4249
Press and Media Relations

Sarah Yates  (44 20) 7547 2603
Press and Media Relations

About Deutsche Bank

Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With EUR 1,126 billion in assets and 68,849 employees in 73 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.