WHY RESPONSIBLE INVESTING MATTERS

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1 Deutsche Asset Management WHY RESPONSIBLE INVESTING MATTERS September 2017 For Qualified Investors (Art. 10 Para. 3 of the Swiss Federal Collective Investment Schemes Act (CISA))/ For Professional Clients (MiFID Directive 2004/39/EC Annex II) only. For institutional investors only. Further distribution of this material is strictly prohibited.

2 Enabling our clients to invest in a sustainable future by incorporating Environmental, Social and Governance factors into our global investment process across asset classes. Nicolas Moreau Global Head of Deutsche Asset Management and Member of the Management Board of Deutsche Bank As a client centric asset manager, we are focused on combining our global investment expertise with our active engagement in local and global Responsible Investing initiatives. Today Deutsche Asset Management is managing assets across a wide range of sustainable products that cover the entire ESG spectrum from screening strategies, sustainable investment funds, ESG real estate assets and social finance innovations. CIO FOR RESPONSIBLE INVESTMENTS THEMATIC RESEARCH SUSTAINABILITY OFFICE ESG DEDICATED TAILORED SOLUTIONS ESG INTEGRATION SUSTAINABLE INVESTMENTS CORPORATE GOVERNANCE ESG ENGINE OUR EXPERTISE IN RESPONSIBLE INVESTING 1. Coporate Governance Over 20 years of experience in Corporate Governance. One of the strongest supporters for climate change related shareholder proposals at company AGMs 2. Thematic Research Widely recognised meta-study conducted together with the University of Hamburg on ESG and corporate financial performance 3. ESG Engine Our proprietary fintech solution for ESG data and analysis. 4. ESG Integration Since 2007 integration of ESG practices into the investment process. 5. Green Climate Fund As part of Deutsche Bank s accreditation by the Green Climate Fund Deutsche Asset Management is going to develop the Universal Green Energy Access program, a fund that brings clean energy to half a million people and small businesses in Africa. 6. Sustainable Investments Our Sustainable Investment business mobilizes public and private capital to generate a return on investment and positive social and environmental outcomes for society. In 2017, we celebrate the 20th anniversary of our first microfinance fund, which has helped millions of entrepreneurs in over 50 emerging economies improve their lives while creating investment returns. 7. Real Estate Achieved Green Stars from Global Real Estate Sustainability Benchmark (GRESB) on five direct real estate portfolios in 2016.

3 OUR PHILOSOPHY Along with our dedicated active ownership activities, the integration of ESG factors is crucial to the fulfilment of our fiduciary duty. We believe that responsible investing can improve capital allocation decisions and enhance financial market stability. OUR PRINCIPLES We are guided by local and global multistakeholder initiatives and international standards, such as the UN Global Compact, the OECD Guidelines for Multinational Corporations, Convention on Cluster Munitions and CERES. OUR APPROACH We work with all business divisions to advance ESG integration in line with client interests, business-specific goals and tools to enhance risk-adjusted returns. We strive to improve corporate governance across our holdings. Exercising our voting rights and pursuing active involvement in shareholder meetings are key responsibilities for us. OUR RESPONSIBLE INVESTING ROOTS 2007 Start of ESG integration into investment process 2011 ESG Directive for Portfolio Managers bn of certified green buildings in real estate asset management 1994 First active participation Hoechst AGM Participation in China s Green Finance Committee Founding of ESG Thematic Research Team 1997 First investment bank to create a microfinance fund (DBMDF) 2008 Signatory of PRI 2013 International Proxy Voting Guidelines 2016 ESG Thematic Research Team publishes 1st report Signatory of G20 investor letter Roll-out of Portfolio Manager ESG training Source: Deutsche Asset Management (September 2017). No assurance can be given that investment objectives will be achieved Petra Pflaum appointed as CIO for Responsible Investments

4 THE E, S AND G LANDSCAPE ENVIRONMENTAL SOCIAL GOVERNANCE Issues relating to the condition and functioning of the natural environment and all natural systems e.g. climate change, resource/waste management, carbon emissions, green products Issues relating to the rights, well-being and interests of society and people e.g. human rights, health and safety, labour management relations, freedom of association Issues relating to the management and oversight of companies e.g. business ethics, board diversity/independence, remuneration, anti-bribery and anticorruption policies A FAST-DEVELOPING INVESTMENT SPACE More than 1,700 investment managers, asset owners and service providers are signatories to the Principles for Responsible Investment (PRI), a UN supported global investor initiative to enhance the integration of ESG factors in investment management globally. These signatories are responsible for US$68,4 trillion in assets under management.1 The number of carbon and ESG disclosure initiatives and requirements globally has increased from 90 to 365 in the past 10 years.2 Trillions of Euros needed to meet international climate and sustainability goals. Morningstar now publishes ESG portfolio scores for funds. Strong academic evidence and investor experience highlight the financial benefits of ESG.3 SRI Assets by Region $1.09bn Canada 49.0% $8.72bn USA 32.7% $6.57bn $0.73bn Growth over period $12.04bn Europe 11.7% $0.15bn $10.77bn Asia 15.7% $0.05bn Australia/ NZ 247.5% $0.52bn $0.04bn SRI Assets 2014 SRI Assets Source: Principles for Responsible Investment (PRI) (data as of April 2017). 2 Principles for Responsible Investment (PRI), MSCI Global Guide To Responsible Investment Regulation (December 2016). 3 Deutsche Asset Management Investment GmbH, University of Hamburg ESG and Corporate Financial Performance (December 2015); University of Oxford and Arabesque Partners From the stockholder to the stakeholder, How sustainability can drive financial performance (March 2015). Source: 2016 Global Sustainable Investment Review (March 2017). Note: Asset values are expressed in billion. Asia ex Japan 2014 assets are represented in US dollars based on the exchange rates at year-end All of 2014 assets, as well as all 2016 assets, are converted to USD based on exchange rates at year-end PRI: COMMITMENTS OF GLOBAL INVESTORS PRI signatories assets under management (US$ trillion) The six Principles for Responsible Investment (PRI) were developed under the leadership of the United Nations. Deutsche Asset Management was among the first signatories, confirming its commitment in AUM ($ US trillion) The Principles aim to encourage: 1. Incorporation of ESG issues into investment analysis and decision-making processes. 2. Active ownership and incorporation of ESG issues into ownership policies and practices. 3. Provision of appropriate disclosure on ESG issues by the entities in which signatories invest. 4. Promotion of acceptance and implementation of the Principles within the investment industry. 5. Working together to enhance effectiveness in implementing the Principles. 6. Reporting of activities and progress towards implementing the Principles. April 2006 April signatories represent USD 68.4 trillion of AuM s in ESG Number of Signatories Source: Principles for Responsible Investment (PRI) (data as of April 2017). No assurance can be given that investment objectives will be achieved.

5 HOW WE APPROACH ESG OUR ESG PILLARS ESG Engine The proprietary Deutsche Asset Management ESG engine is an in-house software solution that analyzes, assesses and ranks corporations as well as sovereigns on a wide range of ESG indicators. It aggregates data from seven leading ESG agencies (Ethix, MSCI, Oekom, RepRisk, Sigwatch, Sustainalytics, Tru- Cost) and relevant non-governmental organizations and consolidates the input into a unique scoring system. The multi- facet, multi-factor approach generates an objective 360 assessment which enables us to deliver value to our clients - first by forging client-tailored ESG solutions that follow dedicated guidelines and second by embedding ESG information into our overarching investment process. Corporate Governance Active ownership promotes better policies and practices. These, in turn, can lead to better performance. With more than 20 years of experience in this field, we view corporate governance as a crucial element of our fiduciary duty and an integral part of our investment process. We engage with companies around the world and ensure that investors voices are heard through the power of proxy voting. We also participate in national and international working groups and contribute to the shaping of codes and regulations, including at EU level. Thematic ESG Research Research is the first step of identifying, assessing and measuring risks in portfolios, often it is the first port of call for many investors weighing the potential of responsible investing. Our Thematic Research Team produces state-of-the-art ESG studies and reports. Its work provides a sophisticated snapshot of the various global trends and factors driving the continued growth of responsible investing ranging from climate change and renewables to regulations and microfinance and serves as a catalyst for innovations in sustainable finance. The team collaborates with experts in academia and across the wider ESG industry. OUR APPROACH TO ESG INTEGRATION Based on the responsible investment strategies defined by the Global Sustainable Investment Alliance1, there are four approaches that we use to integrate ESG into our investment processes. We aim to employ each to best effect across a variety of asset classes. PASSIVE Our flexible approach helps clients to meet their specific ESG goals across the full range of investment solutions. CORE ESG ACTIVITIES ACTIVE MULTI ASSET ESG INVESTMENT STRATEGIES ALTERNATIVES ESG integration The systematic and explicit in clusion by investment ma nagers of environmental, social and governance factors. Active ownership The use of shareholder power to influence corporate behavior. ACTIVE EQUITY ACTIVE FIXED INCOME 1. Positive/Best-In-Class Screening Investment in sectors, companies or projects selected for positive ESG performance relative to industry peers 2. Norms-Based Screening Screening of investments against minimum standards of business practice based on international norms 3. Negative/Exclusionary Screening The exclusion from a fund or portfolio of certain sectors, companies or practices based on specific ESG criteria 4. Sustainability Themed/Impact Investing 2 Investment in themes or assets specifically related to sustainability and targeted investments, typically made in private markets and aimed at solving social or environmental problems Combination of 1-4 A mix of various investment strategies 1 Source: GSIA definitions of sustainable investment, 2016 Global Sustainable Investment Review. 2 No sustainability themed / Impact investing strategy within fixed income. No assurance can be given that investment objectives will be achieved.

6 CLIMATE CHANGE THE BIGGEST THREAT TODAY Top 5 Global Risks in Terms of Impact 1st 2nd 3rd 4th 5th 2007 Asset price collapse Retrenchment from globalization Interstate and civil wars Pandemics Oil price shock 2008 Asset price collapse Retrenchment from globalization (developed) Slowing Chinese economy (<6%) Oil and gas price spikes Pandemics 2009 Asset price collapse Retrenchment from globalization (developed) Oil and gas price spikes Chronic disease Fiscal crises 2010 Asset price collapse Retrenchment from globalization (developed) Oil price spikes Chronic disease Fiscal crises 2011 Fiscal crises Climate change Geopolitical conflict Asset price collapse Extreme energy price volatility 2012 Major systematic financial failure Water supply crises Food shortage crises Chronic fiscal imbalance Extreme energy and agriculture price volatitilty 2013 Major systematic financial failure Water supply crises Chronic fiscal imbalance Diffusion of weapons of mass destruction Failure of climate change mitigation and adaption 2014 Fiscal crises Climate change Water crises Unemployment and under employment Critical informa tion infrastructure breakdown 2015 Water crises Rapid and massive spread of infectious diseases Weapons of mass destruction Interstate conflict with regional consequences Failure of climate change mitigation and adaption 2016 Failure of climate change mitigation and adaption Weapons of mass destruction Water crises Large-scale involuntary migration Severe energy price shock 2017 Weapons of mass destruction Extreme weather events Water crises Major natural disasters Failure of climate change mitigation and adaption Environmental Economic Geopolitical Societal Technological Source: World Economic Forum "The matrix of top 5 risks from 2007 to 2017". HOW WE ARE RESPONDING Uniquely placed to mitigate climate change Deutsche Asset Management has successfully led Deutsche Bank s accreditation process for the Green Climate Fund and has now received approval for the first GCF investment in a Deutsche Asset Management fund for renewable energy. Launched in 2010 by the 194 countries party to the United Nations Framework Convention on Climate Change, the GCF was created to support developing nations in their efforts to respond to the challenges posed by global warming. Innovators in sustainable real estate Deutsche Asset Management has grown its green-label real estate assets under management to almost US$11 billion. Our recent ESG-led initiatives have included reducing energy use across our portfolio of US offices by 3%. We have also invested US$2.3 million in energy-efficiency projects in the US, resulting in a 23% return on investments over the course of a year. Cutting-edge thematic research Deutsche Asset Management is committed to producing state-of-the-art ESG research in collaboration with leading experts from academia and industry. One of our most recent reports, Measures to Address Climate Risk, examines the physical and regulatory risks from climate change and how the transition to a low-carbon economy represents a major investment opportunity. As a result, we have helped to create a first of a kind climate risk index (focused on Asia) which includes data on physical climate risk. Voting for a more secure future Deutsche Asset Management topped the table when Bloom - berg Business Week ranked the world s asset managers on their voting in response to climate-change-related proposals at corporate shareholder meetings in For the past several years, we have had very high levels of support (higher than most other asset managers) for AGM votes related to climate change at US companies. Shaping the policy debate Deutsche Asset Management plays an active role in the global debate around climate change. In 2016 we attended a UN-backed summit, sponsored a series of events celebrating the 10th anniversary of the Principles for Responsible Investment and participated in a meeting with Chancellor Angela Merkel s chief economic adviser to discuss green finance policy plans for Germany s G20 presidency.

7 HOW TO ANSWER THE UN GLOBAL COMPACT THE UNITED NATIONS' SDGS AND HOW WE CONTRIBUTE The United Nations Sustainable Development Goals (SDGs) are a key element of the UN s Global Compact. They were defined in direct response to the major environmental, social and governance challenges facing humanity. Our Sustainable Investment Funds currently contribute to the majority of the 17 SDGs by investing in the likes of clean-tech projects in the developing world (SDG 7), micro-enterprises (SDG 8) and energy efficiency and renewables in the public sector (SDG 13). 1 NO POVERTY 2 ZERO HUNGER 3 GOOD HEALTH AND WELL- BEING 4 QUALITY EDUCATION 5 GENDER EQUALITY 6 CLEAN WATER AND SANITATION 7 AFFORDABLE AND CLEAN ENERGY 8 DECENT WORK AND ECONOMIC GROWTH 9 INDUSTRY, INNOVATION AND INFRA- STRUCTURE 10 REDUCED INEQUA- LITIES 11 SUSTAIN- ABLE CITIES AND COM- MUNITIES 12 RESPONSIBLE CONSUMPTION AND PRODUCTION 13 CLIMATE ACTION 14 LIFE BELOW WATER 15 LIFE ON LAND 16 PEACE AND JUSTICE STRONG INSTITUTIONS PARTNER SHIPS 17 FOR THE GOALS Source: United Nations WE CAN SHOW THAT THERE IS A POSITIVE IMPACT A meta-study on ESG conducted by Deutsche Asset Management and the University of Hamburg has become a cornerstone of the case for responsible investing. The authors of ESG and Corporate Financial Performance: Mapping the Global Landscape 1 examined more than 2,200 empirical studies written since the 1970s and concluded: More than 50% demonstrated a significantly positive relationship between ESG factors and corporate financial performance Less than 10% demonstrated a negative relationship Environmental, social & governance categories and their relationship to corporate financial performance Positive Negative E 58.7% 4.3% S 55.1% 5.1% Neutral Positive Negative 62.3% 9.2% ESG 35.3% 7.1% 1Source: Friede, Busch, Bassen (December 2015). Past performance is not indicative of future performance. No assurance can be given that investment objectives will be achieved. Sample of vote-count studies with identifiable ESG categories in 644 studies. G Find out more at deutscheam.com

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Before making an investment decision, investors need to consider, with or without the assistance of an investment adviser, whether the investments and strategies described or provided by Deutsche Bank, are appropriate, in light of their particular investment needs, objectives and financial circumstances. Furthermore, this document is for information/discussion purposes only and does not constitute an offer, recommendation or solicitation to conclude a transaction and should not be treated as giving investment advice. Deutsche Bank does not give tax or legal advice. Investors should seek advice from their own tax experts and lawyers, in considering investments and strategies suggested by Deutsche Bank. Investments with Deutsche Bank are not guaranteed, unless specified.

10 As of: 09/2017 This marketing communication is intended for professional clients only. Deutsche Asset Management represents the asset management activities conducted by Deutsche Bank AG or any of its subsidiaries. Clients will be provided Deutsche Asset Management products or services by one or more legal entities that will be identified to clients pursuant to the contracts, agreements, offering materials or other documentation relevant to such products or services. This document has been prepared without consideration of the investment needs, objectives or financial circumstances of any investor. Before making an investment decision, investors need to consider, with or without the assistance of an investment adviser, whether the investments and strategies described or provided by Deutsche Asset Management, are appropriate, in light of their particular investment needs, objectives and financial circumstances. Furthermore, any report or analysis within this document is shown for information/ discussion/illustrative purposes and does not constitute an offer, recommendation or solicitation to conclude a transaction and should not be treated as giving investment advice. The information contained in this document does not constitute investment advice. All opinions and estimates herein, including forecast returns, reflect our judgment on the date of this report and are subject to change without notice and involve a number of assumptions which may not prove valid. Investments are subject to various risks, including market fluctuations, regulatory change, possible delays in repayment and loss of income and principal invested. The value of investments can fall as well as rise and you may not recover the amount originally invested at any point in time. Furthermore, substantial fluctuations of the value of the investment are possible even over short periods of time. This publication contains forward looking statements. Forward looking statements include, but are not limited to assumptions, estimates, projections, opinions, models and hypothetical performance analysis. The forward looking statements expressed constitute the author s judgment as of the date of this material. Forward looking statements involve significant elements of subjective judgments and analyses and changes thereto and/or consideration of different or additional factors could have a material impact on the results indicated. Therefore, actual results may vary, perhaps materially, from the results contained herein. No representation or warranty is made by Deutsche Asset Management Investment GmbH as to the reasonableness or completeness of such forward looking statements or to any other financial information contained herein. The terms of any investment will be exclusively subject to the detailed provisions, including risk considerations, contained in the Offering Documents. When making an investment decision, you should rely on the final documentation relating to the transaction and not the summary contained herein. This document may not be reproduced or circulated without our written authority. The manner of circulation and distribution of this document may be restricted by law or regulation in certain countries, including the United States. Past performance is not an indication of future results. Nothing contained herein shall constitute any representation or warranty as to future performance. Further information is available upon investor s request. Deutsche Asset Management Investment GmbH does not give tax or legal advice. Investors should seek advice from their own tax experts and lawyers, in considering investments and strategies suggested by Deutsche Asset Management Investment GmbH. Deutsche Asset Management Investment GmbH Stand: