July 13, 2005

Deutsche Bank publishes its Fourth Annual Alternative Investment Survey

Over 650 investment firms worldwide, representing two-thirds of the industry's total assets, participate in the industry's largest comprehensive hedge fund investor survey

Deutsche Bank today announced the results of its Fourth Annual Alternative Investment Survey conducted in the first half of 2005. Over 1000 representatives from 650 institutions, including pensions, endowments, foundations, family offices and high net worth individuals, funds of funds, insurance companies, banks and consultants participated in this year's survey.

"We asked investors what they thought the average return would be in the hedge fund industry across all strategies and 68% of them feel the industry will return between 6 - 8% this year," said John Dyment, Global Head of Hedge Fund Capital Group at Deutsche Bank. "We analyzed current trends and strategies regarding risk management, fees, performance predictions and asset flows for the survey. Our analysis confirms that the overall health and enthusiasm of the hedge fund industry is not a concern for most survey respondents."

Highlights of Deutsche Bank's 2005 Alternative Investment Survey:

· Investors rank the best performing investment strategy for 2005 - 35% rank long/short equity as the top performing strategy and 22% rank Macro strategies as a top performer.

· Multi-strategy hedge funds are emerging as one of the top investment choices for 2005, with investors selecting it because of their ability to move allocations of assets between strategy classes in a dynamic market.

· Investors predict Asia, excluding China and Japan, will be the top performing region of 2005. With investment focus on China over the last few years, investors feel the surrounding countries will offer greater opportunities.

· While investors continue to reduce their exposure in convertible arbitrage, 16% indicated they will add to their convertible exposure when the market bottoms and the massive redemption cycle ends.

· Investors are becoming increasingly resistant to lock-up periods. In 2004, 68% of investors would only invest in managers with lock-ups of one year or less; in 2005, this number rose to 77%.

· European investors are more active investors than their North American counterparts, making more allocations than North Americans, though North American investments are larger on average.

· For the fourth year, the three "P's", Performance, Pedigree and Philosophy are the leading selection criteria for hedge funds.

· Pensions, endowments and foundations are making investment decisions more quickly, with half making allocation decisions in six months or less. Once in, they consistently hold their investments longer than any other investment class.

· Investors are diversifying their allocations to more managers, with the average fund of fund or family office holding investments with 20-100 different hedge fund managers.


For further information, please call:

Michele Agostinho 001-212-250-4864
Media Relations


About Deutsche Bank

With Euro 901 billion in assets and 64,500 employees, Deutsche Bank offers unparalleled financial services in 74 countries throughout the world. Deutsche Bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.

Deutsche Bank ranks among the global leaders in corporate banking and securities, transaction banking, asset management, and private wealth management, and has a significant private and business banking franchise in Germany and other selected countries in Continental Europe.