May 23, 2007

Deutsche Bank launches new index to replicate hedge fund returns

Deutsche Bank is pleased to announce the introduction of a new proprietary index - the db Absolute Return ßeta Index {dbARß} which seeks to replicate hedge fund beta through a rigorously tested, passive investment process born from quantitative research.

dbARß does not invest in any hedge funds or fund of funds, but replicates the performance of fund of hedge funds through a proprietary algorithm that calculates the appropriate asset weighting, long or short, across a number of liquid asset classes.

The dbARß Index outperforms other beta replication indices and other investable fund indices because it replicates the return of hedge funds before fees. Furthermore by replicating fund of hedge fund indices rather than single manager indices, dbARß is more representative of the whole industry as many of the top tier hedge funds  are also captured in these indices.

Stephane Farouze, Managing Director and Global Head of Fund Derivatives comments “It is a natural evolution of a maturing hedge fund industry that beta products will be introduced to compliment active alpha managers. I believe that the db Absolute Return ßeta Index is superior to the other hedge fund replication products due to its unique construction methodology in adding back the hedge fund fee structure, and as a result its superior performance.”

dbARß can be accessed via a variety of products including UCITS III Funds, certificates and notes, and is available in a number of different formats from principal protected to leveraged to suit investors’ specific requirements.

dbARß is the latest in the line of Deutsche Bank’s highly successful institutional research models which seek to extract investment returns across various asset classes.

For further information, please call:

Deutsche Bank

Michelle Gathercole    (44 20) 7545 4249
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 73,114 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.