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Underlying
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DBLCI-MR Plus(TM) Total Return Index combines the approach of the DBLCI-MR(TM)
Total Return (the "Underlying Index") to investing in commodities markets with a
momentum strategy that seeks to protect returns from downturns in the
commodities market. On each monthly rebalancing date, the proportion of the
Index invested in the Underlying Index is determined based on the Underlying
Index performance over the previous twelve months.
The Underlying Index is composed of futures contracts on six commodities --
crude oil, heating oil, aluminum, gold, wheat and corn.
[] Captures returns from two sources: spot return and roll yield.
[] Broad exposure to commodities as an asset class.
[] Frees the investor from the mechanics of futures trading (e. g. , contract
rolling and physical delivery).
[] Applies a mean reversion adjustment which reduces the weighting of
expensive commodities while increasing the weighting of cheap commodities,
according to a rule based mechanism.
The weighting of each commodity in the Underlying Index depends on the deviation
of the commodity's price from its long-term average. If the short-term moving
average of a commodity rises significantly above its long-term moving average,
the weighting of such commodity in the Underlying Index will be reduced and vice
versa. Both the Index and Underlying Index are described in more detail in
underlying supplement no. 2
(http://www.sec.gov/Archives/edgar/data/1159508/000119312509200288/d424b21.pdf).
DBLCI-MR(TM) Total Return Allocation History (through December 20, 2010)
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DBLCI-MR Plus(TM) Total Return Allocation History (through December 20, 2010)
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Risks
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[] The securities are not principal protected, and therefore, investors may
lose part or all of their initial investment.
[] The inclusion of an Adjustment Factor reduces the payment at Maturity or
upon Early Redemption.
[] The DBLCI-MR Plus(TM) Total Return Index has limited performance history.
Publication of the DBLCI-MR Plus(TM) Total Return Index began in June 2007
and historical or retrospectively-calculated performance of the DBLCI-MR
Plus(TM) Total Return Index should not be relied on to predict future
performance.
[] Market prices of the commodities comprising the Underlying Index may
fluctuate rapidly based on numerous factors, including but not limited to,
changes in supply and demand relationships, weather, trends in agriculture
and trade, fiscal, monetary and exchange control programs, domestic and
foreign political and economic events and policies, disease, pestilence,
technological developments and changes in interest rates. These factors may
affect the values of the related contracts reflected in the Underlying
Index and therefore the value of your securities in varying ways.
[] A commodity hedging disruption event could result in the early acceleration
of the securities. We have the right (but not the obligation) to repurchase
the securities prior to maturity if legal or regulatory restrictions
prevent us from hedging our obligations under the securities.
[] An investment in the securities is subject to the credit of the Issuer.
Risks (continued)
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[] The payout on the securities is linked to the value of the DBLCI-MR
Plus(TM) Total Return Index on a specific valuation date. Therefore, a
temporary decline in value around the date of Maturity or Early Redemption
could greatly affect the holder's return.
[] A liquid secondary market for the securities is not guaranteed and may be
limited. The Issuer may, but is not obligated to, purchase securities in
the open market by tender offer or private agreement.
[] Potential conflicts of interest exist because the Issuer, the calculation
agent for the securities and the sponsor of the DBLCI-MR Plus(TM) Total
Return Index and some of its components are the same legal entity.
[] For further risk considerations, please refer to accompanying term sheet
no. 1048R, underlying supplement no. 2, product supplement R (including the
section entitled "Risk Factors"), the prospectus supplement, and the
prospectus.
[] Significant aspects of the U. S. federal income tax treatment of the
securities are uncertain, and the Internal Revenue Service, or a court
might not accept the tax consequences described in the accompanying term
sheet no. 1048R.
[] We expect to pay a portion of the Adjustment Factor as a commission on a
quarterly basis to brokerage firms, which may include DBSI, and their
affiliates, whose clients purchase securities in this offering and who
continue to hold their securities. We expect that the brokerage firm
through which you hold your securities will pay a portion of these
commissions to your broker. As a result of these arrangements, the
brokerage firm through which you hold your securities and your broker may
have economic interests that are different than yours. For more information
about the payment of these commissions, see "Supplemental Underwriting
Information (Conflicts of Interest)" in the accompanying term sheet no.
1048R.
Important Information and Disclosures
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[] This snapshot does not contain all the terms and conditions relevant to the
securities. This snapshot must be read in conjunction with the accompanying
term sheet no. 1048R, prospectus supplement, prospectus, underlying
supplement no. 2 and product supplement R. This snapshot does not purport
to summarize all of the conditions, representations, warranties, and other
provisions relevant to the securities.
[] We have sent you this document in our capacity as a potential counterparty
acting at arm's length. We are not acting as your financial adviser or in a
fiduciary capacity in respect of this proposed transaction or any other
transaction with you unless otherwise expressly agreed by us in writing.
Prospective investors should understand and discuss with their professional
tax, legal, accounting and other advisors the effect of a transaction they
may enter into.
[] Before entering into any transaction, you should take steps to ensure that
you understand and have made an independent assessment of the
appropriateness of the transaction in light of your own objectives and
circumstances, including the possible risks and benefits of entering into
such transaction. You should also consider making such independent
investigations as you consider necessary or appropriate for such purposes.
[] The past performance of securities, indices or other instruments referred
to herein does not guarantee or predict future performance.
[] The securities involve risk, which may include interest rate, commodity,
currency, credit, political, liquidity, time value, and market risk and are
not suitable for all investors. For further risk considerations, please
refer to the accompanying term sheet no. 1048R, prospectus supplement,
prospectus, underlying supplement no. 2 and product supplement R, including
the section entitled "Risk Factors".
[] The securities are not insured or guaranteed by the Federal Deposit
Insurance Corporation (FDIC) or any other U. S. governmental agency.
[] We or our affiliates, or persons associated with us or such affiliates,
may: maintain a long or short position in securities referred to herein, or
in related futures or options, purchase or sell, make a market in, or
engage in any other transaction involving such securities, and earn
brokerage or other compensation.
[] "Deutsche Bank" means Deutsche Bank AG and its affiliated companies, as the
context requires. Deutsche Bank Private Wealth Management refers to
Deutsche Bank's wealth management activities for high-net-worth clients
around the world. Deutsche Bank Alex. Brown is a division of Deutsche Bank
Securities Inc.
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