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ISSUER FREE WRITING PROSPECTUS Registration Statement No. 333-137902
Filed Pursuant to Rule 433 Dated: June 23, 2009
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Index Snapshot - Deutsche Bank Balanced Currency HarvestTM (USD) Index
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- ------- The Index Benefits -----------------------------------------------------
This index offers:
o The potential to invest in and benefit from a single strategy relating to
currencies.
o Exposure to ten G-10 and ten Emerging Market currencies.
o Long-term returns that provide diversification from traditional asset
classes such as equities and bonds.
o Automatic and rule-based quarterly rebalancing.
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- ------- The Index Approach -----------------------------------------------------
o The DB Balanced Currency Harvest (USD) Index (the "Index") seeks to
generate returns by capturing the interest rate differential or "carry"
between diversified baskets of high-yielding and low-yielding currencies.
See "The Index Rules".
o The Index strategy is based on the view that foreign currency forward
rates are generally poor predictors of future foreign currency spot rates,
and that currencies that trade at a forward discount often outperform
currencies that trade at a forward premium.
o The strategy reflected in the Index takes the view that by taking long
positions in high-yielding currencies and short positions in low-yielding
currencies, an investor's gain from interest rate differentials in the
high-yielding jurisdictions will exceed any potential losses from currency
rate risk.
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- ------- The Index Strategy -----------------------------------------------------
o Every 3 months rank eligible currencies by their 3-month interest rates
(See "Eligible Currencies").
o Determine the Index Currencies based upon the Index Rules.
o Transact 3-month currency forward trades in those Index Currencies.
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Deutsche Bank AG has filed a registration statement (including a prospectus)
with the Securities and Exchange Commission, or SEC, for the offering to which
this snapshot relates. Before you invest, you should read the prospectus in
that registration statement and the other documents relating to such offering
that Deutsche Bank AG has filed with the SEC for more complete information
about Deutsche Bank AG and the offering. You may obtain these documents without
cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively,
Deutsche Bank AG, any agent or any dealer participating in the offering will
arrange to send you the prospectus, prospectus supplement, product supplement,
term sheet and this snapshot if you so request by calling toll-free
1-800-311-4409. The Deutsche Bank Balanced Currency Harvest (USD) Index is an
intellectual property of Deutsche Bank AG. Deutsche Bank Balanced Currency
Harvest (USD) Index is a trade mark of Deutsche Bank AG. Deutsche Bank AG
reserves all the rights, including copyright, to the Index.
- ------- The Index Rules --------------------------------------------------------
The Index, recomposed every quarter, reflects the value of notional long and
short 3-month foreign exchange forward positions in certain foreign currencies
against the U.S. dollar. Positions are equally weighted.
Long Basket "The High Yielders"
2 G-10 and 3 other highest yielding Eligible Currencies
Short Basket "The Low Yielders"
2 G-10 and 3 other lowest yielding Eligible Currencies
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- ------- Eligible Currencies* ---------------------------------------------------
G-10 Emerging Market
Australian Dollar Brazilian Real
British Pound Czech Koruna
Canadian Dollar Hungarian Forint
Euro Korean Won
Japanese Yen Mexican Peso
New Zealand Dollar Polish Zloty
Norwegian Krone Singapore Dollar
Swedish Krona South African Rand
Swiss Franc Taiwanese Dollar
U.S. Dollar Turkish Lira
*as of 6/12/09- the next scheduled recomposition is expected to occur on
September 9, 2009
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- ------- The Index Composition (Index Currencies)* ------------------------------
Long Basket: Australian Dollar, New Zealand Dollar, Brazilian Real, Turkish
Lira and Hungarian Forint
Short Basket: Japanese Yen, Swiss Franc, US Dollar, Taiwanese Dollar, and
Swiss Franc
*as of 6/12/09- the next scheduled recomposition is expected to occur on
September 9, 2009
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Index Snapshot - Deutsche Bank Balanced Currency HarvestTM (USD) Index
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- ------- Historic Index Level (9/19/00 - 6/22/09) -------------------------------
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- ------- Annual Index Performance (9/19/00 - 6/12/09) ---------------------------
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The above charts are for illustrative purposes only and do not purport to
predict future performance of the Index or securities relating to the Index.
The Index was launched on December 19, 2005. All prospective investors should
be aware that no actual investment that allowed a tracking of the performance
of the Index was possible at anytime prior to December 19, 2005. In addition,
the currencies comprising the Index at particular dates in the above graphs are
extremely likely to be different from the currencies comprising the Index on or
after the date of this snapshot.
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Past performance - including any performance based on retrospective
calculations - is not necessarily indicative of future results.
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- -------- Risk Considerations ---------------------------------------------------
o THE RISK OF INVESTING IN CURRENCIES CAN BE SUBSTANTIAL - The prices of the
currencies which comprise the Index may be affected by numerous market
factors, including events in the equity markets, the bond market and the
foreign exchange market, fluctuations in interest rates, and world
economic, political and regulatory events. A rise in the value of one
currency may be offset by a fall in the value of one or more of the other
currencies comprising the Index.
o STRATEGY RISK - The strategy reflected in the Index takes the view that by
taking long positions in high-yielding currencies and short positions in
low-yielding currencies, an investor's gain from interest rate
differentials in the high-yielding jurisdictions will exceed any potential
losses from currency rate risk. The Index Sponsor provides no assurance
that this expectation is or will remain valid. Various market factors and
circumstances at any time and over any period could cause and have in the
past caused investors to become more risk averse to high-yielding
currencies. Such risk aversion is greater with respect to the non-G10
currencies, which may be volatile and subject to large fluctuations,
devaluations, exchange controls and inconvertibility, which would
negatively affect the value of the Index and securities relating to this
snapshot.
o GAINS IN COMPONENTS OF THE INDEX MAY BE OFFSET BY LOSSES IN OTHER
INDEX COMPONENTS -The Index is composed of multiple currency positions and
therefore a positive return in one position may be offset, in whole or in
part, by a negative return of a lesser, equal or greater magnitude in
another position, resulting in an aggregate Index return equal to or less
than zero.
o CURRENCY MARKETS MAY BE HIGHLY VOLATILE - Currency markets may be highly
volatile, particularly in relation to emerging or developing nations'
currencies and, in certain market conditions, also in relation to
developed nations' currencies. Significant changes, including changes in
liquidity and prices, can occur in such markets within very short periods
of time. Foreign currency rate risks include, but are not limited to,
convertibility risk and market volatility and potential interference by
foreign governments through regulation of local markets, foreign
investment or particular transactions in foreign currency. These factors
may affect the values of the components reflected in the Index and the
value of securities relating to this snapshot in varying ways, and
different factors may cause the values of the Index components and the
volatility of their prices to move in inconsistent directions at
inconsistent rates.
o LEGAL AND REGULATORY RISKS - Legal and regulatory changes could adversely
affect currency rates. In addition, many governmental agencies and
regulatory organizations are authorized to take extraordinary actions in
the event of market emergencies. It is not possible to predict the effect
of any future legal or regulatory action relating to currency rates, but
any such action could cause unexpected volatility and instability in
currency markets with a substantial and adverse effect on the performance
of the Index and, consequently, the value of securities relating to this
snapshot.
o THE CURRENCY PRICES REFLECTED IN THE INDEX ARE SUBJECT TO EMERGING
MARKETS' POLITICAL AND ECONOMIC RISKS - The Index components include
emerging market countries, which are more exposed to the risk of swift
political change and economic downturns than their industrialized
counterparts. Indeed, in recent years, many emerging market countries have
undergone significant political, economic and social change. In many
cases, far-reaching political changes have resulted in constitutional and
social tensions and, in some cases, instability and reactions against
market reforms. With respect to any emerging or developing nation, there
is the possibility of nationalization, expropriation or confiscation,
political changes, government regulation and social instability. There can
be no assurance that future political changes will not adversely affect
the economic conditions of an emerging or developing market nation.
Political or economic instability is likely to have an adverse effect on
the performance of the Index, and, consequently, the return on securities
relating to this snapshot.
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(12/07) 53018
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