Performance - Share Class USD LC(USD)
(in % of fundvolume) Portfolio Breakdown
Emerging markets corporates
84.2
Emerging markets sovereigns
10.2
Corporate Bonds 2.8
Cash equivalents 2.7
Gross weighting, not adjusted for any positions in derivatives. Deutsche Invest I China Bonds was down
0.82% in May, partially affected by the 1.52% CNH depreciation. China’s growth momentum stabilized in May with the official
Manufacturing PMI being unchanged at 50.1. The non-manufacturing PMI declined slightly to 53.1 in May from 53.5 in Apr. The CNH depreciated about 1.5% against USD amid an upcoming potential Fed rate hike. FX reserves edged down slightly to $3.19trn. The central bank announced further details regarding the opening of the onshore interbank bond market to foreign investors. This could trigger about $155bn of capital inflows as global bond investors adjust their portfolios and would be a positive signal for CNH over the medium term. We expect the government to keep expansionary fiscal policies and prudent monetary policy to support growth. Primary dim sum bond issuance picked up in May with CNH11.5bn in May, up from CNH8.7bn in Apr. Many foreign banks issued dim sum bonds mainly through private placements. Given the lower funding cost onshore, Chinese corporates didn’t issue any CNH bonds offshore over the month. USD new issuance was active with $21.76bn in May, up from $8.2bn in Apr.
Fund Management's Comment
Investment Ratio (in % of fundvolume) 97.3 Bonds
2.7 Cash and other assets
Breakdown by Rating (in % of bond holdings)
AA 5.6
A 16.2
BBB 58.6
BB 10.2
B 9.4
The presentation of the structure of the bond credit ratings is based on both internal and external ratings.
Morningstar Overall Rating™:
Ratings
«««
Lipper Leaders:(As at: 29/04/2016)
Deutsche Invest I China Bonds
Bond Funds - Emerging Markets/ High Yield Corporate Bonds
As at 31/05/2016 May 2016
Investment Policy
Deutsche Invest I China Bonds offers investors the opportunity to participate in the performance of the Chinese Renminbi. In keeping with this orientation, the Fund’s currency positions are nearly all in Renminbi. Bond investments are made in Chinese issuers in Renminbi (or hedged in RMB) and in global issuers in RMB. The focus is on bonds with good to very good credit ratings.
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Portfolio Analysis
Fund Data
Morningstar Style-Box™
Credit Quality High Medium LowInterest Rate Sensitivity
Low Medium High
Morningstar Category™
RMB Bond (in %)Performance
Past performance is no indication of current or future performance, and the performance data do not take account of the commissions and costs incurred on the issue and redemption of units.
Fund
1 m 1 y 3 y 5 y s. Launch Ytd. 3 y Ø 5 y Ø 2012 2013 2014 2015 Cumulative Performance (in %) - Share Class USD LC(USD)
-0.9 -2.4 5.0 -- 15.5 2.8 1.6
USD -- 7.6 6.1 1.1 -1.8
1.4 -4.0 22.9 -- 48.4 1.0 7.1
EUR -- 5.0 2.1 14.1 9.3
The information regarding this product is based on USD. For this reason, the performance in Euros of this product may rise or fall on the basis of currency fluctuations.
Note: The key terms are explained in the glossary.
Further Characteristics (3 years) - Share Class USD LC(USD)
Volatility 5.74% Maximum Drawdown -5.89% VAR (99%/10 days) 3.65%
--Alpha Beta -- Tracking Error
--Correlation Coefficient
--Information Ratio
--Sharpe Ratio 0.25
Deutsche Invest I China Bonds
Bond Funds - Emerging Markets/ High Yield Corporate Bonds
As at 31/05/2016 May 2016
(in % of fundvolume) Breakdown by Country (Bonds)
China
93.5
Hong Kong 2.8
Gross weighting, not adjusted for any positions in derivatives.
(in % of fundvolume) Largest Individual Holdings
Jinchuan Group 14/17.07.17 6.7
China City Construct International 14/03.07.17 5.2
Greenland Hong Kong Holding 14/23.01.18 5.0
China Electronics 14/16.01.17 Reg S 4.8
Panda Funding Investment 13/17.12.16 4.7
Deutsche Invest II China High Income Bonds USD FC 4.6
Maikun Investment 14/06.06.17 4.0
Dawn Victor 15/05.06.18 3.6
Unican 14/18.09.17 MTN 3.5
China Life Insurance 15/03.07.2075 3.4
Total 45.5
(in % of fundvolume) Breakdown by Currency
Offshore Renminbi 100.9
United States dollar -0.9
Incl. forward exchange transactions, negative and positive figures reflect expected currency developments.
Portfolio Analysis
Key Figures regarding the Fund's Assets
Yield (in %) 6.0 Current Interest Rate (in %) 4.9
1.7 Modified Duration
Duration (in years) 1.7 Maturity (in years) 1.9
76 Average Rating
Number of Bonds BBB
1 m 1 y 3 y 5 y s. Launch Ytd. 3 y Ø 5 y Ø 2012 2013 2014 2015
Cumulative Performance (in %)
-1.0 -3.5 3.6 -- 7.3 2.2 1.2 CHF FCH(CHF) -- -- 6.2 1.2 -2.5 -1.0 -3.8 2.2 -- 5.6 2.1 0.7 CHF LCH(CHF) -- -- 5.6 0.7 -3.0 -0.9 -2.7 5.2 -- 16.1 2.5 1.7 FCH(EUR) -- 7.7 6.4 1.5 -1.8 -- -- -- -- -- -- --FDH(EUR)*** -- -- -- -- ---0.9 -2.6 -- -- 2.9 2.6 --IDH(EUR) -- -- -- 1.7 -1.7 -1.0 -3.1 3.7 -- 13.3 2.3 1.2 LCH(EUR) -- 7.1 5.8 0.9 -2.3 -1.0 -3.1 3.7 -- 13.4 2.3 1.2 LDH(EUR) -- -- 5.9 0.9 -2.2 1.5 -4.3 -- -- 25.2 0.3 --NC(EUR) -- -- -- 14.7 9.1 -1.0 -3.5 2.4 -- 11.6 2.2 0.8 NCH(EUR) -- -- 5.4 0.5 -2.6 -1.0 -3.6 -- -- -0.6 2.2 --NDH(EUR) -- -- -- -- -2.7 0.7 4.0 14.2 -- 15.5 3.3 4.5 RMB FC(CNY) -- -- -- 3.8 4.5 0.7 3.7 12.7 -- 13.9 3.0 4.1 RMB LC(CNY) -- -- -- 3.4 4.2 -- -- -- -- -- -- --SEK FCH(--SEK)*** -- -- -- -- ---- -- -- -- -- -- --SEK LCH(--SEK)*** -- -- -- -- ---0.8 -1.9 6.6 -- 18.4 3.0 2.1 USD FC(USD) -- 8.1 6.7 1.6 -1.3 -- -- -- -- -- -- --USD FCH (P)(--USD)*** -- -- -- -- ---0.9 -2.4 5.0 -- 15.5 2.8 1.6 USD LC(USD) -- 7.6 6.1 1.1 -1.8 -- -- -- -- -- -- --USD LCH (P)(--USD)*** -- -- -- -- ---- -- -- -- -- -- --USD LDH (P)(--USD)*** -- -- -- -- ---- -- -- -- -- -- --USD LDMH (P)(--USD)* -- -- -- --
--***The presentation of performance occurs after a period of at least one year following launch of the Fund / unit class.
2 / 7 Page
Hardstrasse 201 CH-8021 Zurich Tel.: +41 58 111 77 00 Fax: +41 58 111 71 00 P.O. Box
Deutsche Bank (Switzerland) Ltd
Address
E-Mail: [email protected] Internet: www.deutschefunds.ch
Deutsche Invest I China Bonds
Bond Funds - Emerging Markets/ High Yield Corporate Bonds
As at 31/05/2016 May 2016
¹ Based on the gross investment.
Because of its composition or the techniques used by its managers, the fund features a high level of volatility. In other words, unit prices may fluctuate significantly in either direction within short periods of time.
The collective investment scheme referred to in this document is a fund under German or Luxembourg law that is licensed for public distribution in Switzerland. Information on the domicile is available in the general fund information.
Prospective investors can obtain a copy of the current sales prospectus, including the terms of contract or management regulations, the articles of association, the Key investor document and the annual and semi-annual report free of charge from the representative and paying agent in Switzerland, Deutsche Bank (Suisse) SA, Geneva, and its branches in Zurich and Lugano.
Note
Fund Data
Portfolio Manager Thomas Kwan Assets 504.1 Mio. USD
Portfolio Manager since 01/04/2012 Fund Currency USD
Portfolio Management Company Harvest Global Investments Limited, Hong Kong Launch Date 16/08/2011
Portfolio Management Location Hong Kong Fiscal Year End 31/12/2016
Management Company Deutsche Asset Management S.A. Investor profile Risk-tolerant
Legal Structure SICAV Fund Domicile Luxembourg
Custodian State Street Bank, Lux.
3 / 7 Page
Share Classes
Earnings Front-end Load ¹ up to Redemption Price Management Fee Running costs / TER Minimum Invest-ment Amount ISIN Code Swiss Sec.
No. Share Class Cur. plus performance-related fee LU0813328357 20135787 Accumulation 400,000 CHF FCH CHF 0.00% 107.30 0.600% 0.69% (1) --LU0813327896 20135788 Accumulation --CHF LCH CHF 3.00% 105.57 1.100% 1.18% (1) --LU0632808951 13665727 Accumulation 400,000 FCH EUR 0.00% 116.14 0.600% 0.70% (1) --LU0740831374 22737715 Distribution 400,000 FDH EUR 0.00% 101.71 0.600% 0.74% (2) --LU0982747312 23056691 Distribution 25,000,000 IDH EUR 0.00% 94.04 0.400% 0.47% (1) --LU0632805262 13656797 Accumulation --LCH EUR 3.00% 113.32 1.100% 1.19% (1) --LU0740830996 18310141 Distribution --LDH EUR 3.00% 100.89 1.100% 1.20% (1) --LU0616855887 22141486 Accumulation --NC EUR 1.50% 125.24 1.400% 1.61% (1) --LU0740831614 18310178 Accumulation --NCH EUR 1.50% 111.56 1.400% 1.59% (1) --LU0740832000 22737716 Distribution --NDH EUR 1.50% 93.10 1.400% 1.59% (1) --LU0813328860 20755624 Accumulation 400,000 RMB FC CNY 0.00% 115.45 0.600% 0.68% (1) --LU0813328787 20755622 Accumulation --RMB LC CNY 3.00% 113.92 1.100% 1.17% (1) --LU1322112480 30640900 Accumulation 4,000,000 SEK FCH SEK 0.00% 998.68 0.600% 0.74% (2) --LU1322112563 30640950 Accumulation --SEK LCH SEK 3.00% 996.41 1.100% 1.32% (2) --LU0616856778 13665725 Accumulation 400,000 USD FC USD 0.00% 118.35 0.600% 0.66% (1) --LU1322112647 30642290 Accumulation 400,000 USD FCH (P) USD 0.00% 100.18 0.600% 0.74% (2) --LU0616856422 13665705 Accumulation --USD LC USD 3.00% 115.45 1.100% 1.16% (1) --LU1360450164 31764822 Accumulation --USD LCH (P) USD 3.00% 101.89 1.100% 1.32% (2) --LU1322112720 30641487 Distribution --USD LDH (P) USD 3.00% 99.33 1.100% 1.32% (2) --LU1322112993 30642209 Distribution --USD LDMH (P) USD 3.00% 98.18 1.100% 1.32% (2)
--(1) The Total Expense Ratio (TER) generally includes all expense items charged to the Fund apart from transaction costs and performance fees. If the Fund invests a substantial part of its assets in target funds, the costs of the respective funds and payments received by them will also be taken into account. The Fund incurred the total expenses listed here in its last financial year which ended on 31/12/2015. They are subject to change from year to year.
(2) The Total Expense Ratio (TER) generally includes all expense items charged to the Fund apart from transaction costs and performance fees. The total expenses listed here represent an estimate since the Fund was launched on (FDH:31/08/2015, SEK FCH:01/12/2015, SEK LCH:01/12/2015, USD FCH (P):01/12/2015, USD LCH (P):29/02/2016, USD LDH (P):01/12/2015, USD LDMH (P):01/12/2015). Actual expenses will be calculated and published once the first financial year has ended. The annual report for each financial year will contain the expense details with their precise calculation.
Legal Disclaimer
Investor profile: Risk-tolerant
The Fund is intended for the risk-tolerant investor who, in seeking investments that offer targeted opportunities to maximize returns, can tolerate the unavoidable, and occasionally substaintial, fluctuations in the values of speculative investments. The high risks from volatility, as well as high credit risks, make it probable that the fund will lose value from time to time, and expectations of high returns and tolerance of risk are offset by the possibility of incurring significant losses of capital invested.
Please note that the information from Morningstar, FERI and Lipper Leaders relates to the previous month. Morningstar Overall Rating™
© [2016] Morningstar Inc. All rights reserved. The information contained herein (1) is copyright protected for Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not guaranteed to be accurate, complete or up-to-date. Neither Morningstar nor its content providers are responsible for any damages or losses that may arise from use of this information. Past performance does not guarantee future performance.
Lipper Leaders
© 2016 Lipper - Thomson Reuters Lipper. All rights reserved. Any copying, republication or redistribution of Lipper content is expressly prohibited without the prior written consent of Lipper. Neither Lipper, other members of the Thomson Reuters group, nor its data providers shall be liable for any errors or delays in the content or for any actions taken in reliance thereon. Lipper performance rankings are calculated using data available at the time of calculation and may not represent all the funds tracked by Lipper. The presentation of performance data does not constitute a recommendation to buy or sell a fund or an investment recommendation for a specific market segment. Lipper analyzes the past performance of funds. Past results are no guarantee for the future performance of an investment fund. Lipper and the Lipper logo are registered trademarks of Thomson Reuters.
Lipper Leaders Rating System - Ratings from 1 (lowest) to 5 (highest)
First digit = Total Return; second digit = Consistent Return; third digit = Preservation; fourth digit = Expense General information
When the custodian sets the price on the last trading day of the month there can be a difference of up to ten hours between the times at which the fund price and the benchmark are calculated. In the event of strong market movements during this period, this may result in the over- or understatement of the Fund's performance relative to the benchmark at the end of the month (this is referred to as the "pricing effect").
Subscriptions can only be made and units held in accordance with the terms set out in the current version of the sales prospectus or Key investor document. Deutsche Asset Management publications may only be reproduced or published with the express written consent of Deutsche Bank AG or any of its subsidiaries. The information contained in this document is intended solely as a product description and does not constitute investment advice, an offer or a solicitation. The applicable fund agreement and/or the contractual conditions or management regulations, the prospectus or the corresponding Key investor document or, if applicable, the annual and half-yearly reports, shall form the sole binding basis for the purchase of units in a collective investment scheme.
The collective investment schemes indicated in this document are contractual funds under law that are licensed for distribution in Switzerland.
Prospective investors in funds can obtain the sales prospectus, the Key investor document and the annual and semi-annual reports free of charge from the representative and paying agent in Switzerland, Deutsche Bank (Suisse) SA, Geneva and its branches in Zurich and Lugano.
For detailed information on the related risks, please consult the sales prospectus and the Key investor document. The information contained therein is based on our assessment of the present legal and tax environment. The views and opinions presented here represent the most recent estimates of Deutsche Bank AG or any of its subsidiaries and are subject to change at any time without prior notice.
Units issued in a collective investment scheme may only be offered for sale or purchase in jurisdictions where the sale or purchase thereof is permitted. Accordingly, the US Securities Act of 1933 in its current form contains a prohibition on units in this collective investment scheme, and as such, they may not be offered, sold or distributed in the United States to US citizens or residents of the United States.
Subsequent transfers of units within the US or to US citizens or residents are also prohibited. This document may not be brought into circulation in the US. Representative and paying agent in Switzerland:
Deutsche Bank (Suisse) SA Place des Bergues 3 CH-1201 Geneva
and its branches in Zurich and Lugano [email protected]
www.deutschefunds.ch General Risk Warnings
Any investment in units of a collective investment scheme entails or is associated with equity market, bond market, exchange rate, interest rate, credit, volatility and political risks. Each of these risks may appear in connection with other risks. A brief description of some of these risk factors is provided below.
• Equity funds: market, sector and company-specific price increases • Bond funds: decline in yields or price increases on the bond markets and/or a decrease in spreads on higher-interest securities • Currency-exchange gains, if applicable
• Equity funds: market, sector and company-specific price decreases • Bond funds: increase in yields or price decreases on the bond markets and/or an increase in spreads on higher-interest securities
• Country risk, issuer, counterparty creditworthiness and default risk • Use of derivative financial instruments, if applicable
• Currency-exchange risks, if applicable
• The unit price may at any time fall below the purchase price at which the customer acquired the unit.
Legal Disclaimer
Prospective investors should have previous experience with the financial instruments that are in use in the specified investment policy. Investors should fully understand the risks associated with investments in fund units and only make investment decisions after consulting with their legal, tax, financial or other advisors in regards to (i) the suitability of an investment in units in view of their personal tax and financial position and/or other circumstances; (ii) the information contained in this prospectus; (iii) the investment policy of the collective investment scheme; and (iv) the risks associated with the investment under the planned investment policy presented by the collective investment scheme .
Please note that investments in collective investment schemes entail both opportunities on the upside and risks on the downside. Units of collective investment schemes are securities and as such their value fluctuates with the rise and fall in the value of the underlying assets. The value of the units may accordingly rise above or fall below the purchase price. No guarantee therefore is given that the objectives of the investment policy will be achieved.
