Not for circulation. For use by advisors only.

Not to be distributed to end-investors.

China: Amidst markets uncertainty… Still a

worthy asset class? 4th October 2011

Deutsche Asset Management: Business divisions

Clients Clients

Products Products

Clients

Products

Clients

Products

Retail

Private Banking

High Net Worth

Institutional

General account assets of insurance companies worldwide

Pension Funds

Foundations and Endowments

Public/Government Funds

Corporates

Mutual Funds

Structured Products

Complex Assets

Hedge Funds and Fund of Funds

Quantitative Strategies

Real Estate

Infrastructure

Private Equity Fund of Funds

Insurance Fixed Income

Strategic Asset Allocation

Asset-Liability Modeling

Multi-Asset Portfolio

Management

Insurance Advisory

Services

Equity

Fixed Income

Hedge Funds and Hedge Fund of Funds

Quantitative Strategies

Liquidity Management

Institutional

High Net Worth

Private Banking

Retail

Retail (AuM EUR 175 bn*)

Alternatives (AuM EUR 46 bn*)

Insurance (AuM EUR 143 bn*)

Institutional (AuM EUR 164 bn*)

AuM EUR 529 bn*

* As of March 2011; Source: Deutsche Asset Management 2

3

Assets in Asia Pacific ex-Japan: by Country

Singapore

Seoul

Mumbai

Taipei

Sydney & Melbourne

EUR 2.0 bn

EUR 3.9 bn

EUR 1.6 bn

EUR 4.0 bn

EUR 0.6 bn

Hong Kong

30% shareholding in Harvest FM

EUR 1.1 bn

Source: DB Group Finance

Serviced AuM for DeAM companies as of June 2011.

* Source: HSBC Trustees / Deutsche Asset Management / State Street as of end August 2011.

Philippines

EUR 1.5 bn

Funds registered in Singapore

Authorized funds Fund sizes

(SGD mio)*

DWS Premier Select Trust 189.05

DWS Lion Bond Fund 283.75

DWS Asia Premier Trust 71.16

DWS Global Themes Equity Fund 34.13

DWS Singapore Equity Fund 71.93

DWS India Equity Fund 351.77

DWS China Equity Fund 490.35

DWS Singapore Small/Mid Cap Fund 5.83

DWS Global Clean Tech Fund 4.65

DWS Asian Small/Mid Cap Fund 16.96

Recognized funds Fund sizes

(USD mio)*

DWS Global Agribusiness 942.60

DWS Noor Precious Metals Sec. Fund 145.21

4

Agenda

Economy Update 1

3 DWS China Equity Fund

2 China Market Outlook

4 Appendix

Global equities sell-off after U.S. rating downgrade and Europe crisis concerns

5

History will mark down the date - August 5th

2011, S&P downgraded the U.S. credit rating

from AAA to AA+.

Moody’s and Fitch also considered that

downgrade would be possible.

Global stock markets slumped after

rating downgrade.

MSCI AC World Index plummeted

5.1% on August 8th, the first trading

day after US downgraded.

Greek / Euro sovereign debt issues

exacerbate the current situation

(Spain, Italy, France)

Source: Bloomberg

Will China be immune?

6

Key concerns:

A slowdown in US and Europe

will impact the export sector in

China

Inflation rate still persistently

high and remains the top

concern for the Chinese

government

Slowdown in Fixed Asset

Investments (FAI)

Risk of asset bubbles forming

i.e. property sector

“Hot money” flows (event

driven and unpredictable)

Local government debt

* Source: UBS research (Aug 2011)

Global GDP Growth Forecast*

% YoY 2011 (F) 2012 (F)

Old New Old New

USA 1.8 1.6 2.3 2.3

Japan -0.4 -0.4 3.5 2.9

Euroland 1.8 1.8 2.0 1.0

UK 1.1 1.1 2.1 1.5

China 9.3 9.0 9.0 8.3

LATAM 4.6 4.6 4.2 4.2

EMEA 4.2 4.5 4.5 3.3

Advanced Economies 1.9 1.8 2.8 2.3

World 3.3 3.3 3.8 3.3

Base case scenario: Slower rate of growth expected.

Despite the concerns, China will still stand out from the

rest of the countries in terms of absolute GDP growth

What do these international brands have in common?

7

Luxury brands listing in Hong Kong to tap

the growing wealth segment indicative

of rising consumption demand

Positive signs for Chinese equities

1. Signals to turn positive for China’s market – Money supply in check

M2 bottomed when M2 met the target …

and stock market rose subsequently

… as it happened in 2004

Source: WIND, Harvest Global Investments Ltd.

10

12

14

16

18

20

22

Jan 04 Mar 04 May 04 Jul 04 Sep 04 Nov 04 Dec 04

20

21

22

23

24

25

26

27

28M2 YoY growth

MSCI China (RHS)

(%)

M1, M2 and loan growth falling in-line as money tightening policies are introduced to curb inflation

9

0%

5%

10%

15%

20%

25%

30%

35%

Jan 0

3

Jan 0

4

Jan 0

5

Jan 0

6

Jan 0

7

Jan 0

8

Jan 0

9

Jan 1

0

Jan 1

1

0

20

40

60

80

100

120

MSCI CN - RHS

M2 YoY

Possible uptrend in the Chinese stock market after M2 reaches the target

2. Valuations appear attractive

Source: Bloomberg as of 31st August 2011.

Figures obtained for P/E and P/B Ratios are for a period 1st September 2011 to 31st August 2011 10

40

PB

ratio

PE

ratio

Price to Earning (P/E) Ratio of the Chinese markets Price to Book (P/B) Ratio of the Chinese markets

Potential upside for China equities – from a historical standpoint

MSCI China (as of 31st August 2011)

Current: 8.95

10 yr avg: 14.67

0

5

10

15

20

25

30

35

Se

p-0

1

Ap

r-02

No

v-0

2

Ju

n-0

3

Ja

n-0

4

Au

g-0

4

Ma

r-05

Oct-

05

Ma

y-0

6

De

c-0

6

Ju

l-07

Feb-0

8

Sep-0

8

Ap

r-09

No

v-0

9

Ju

n-1

0

Ja

n-1

1

Au

g-1

1

P/E ratio

LT average

MSCI China (as of 31st August 2011)

Current: 1.82

10 yr avg: 2.19

0

1

2

3

4

5

6

Se

p-0

1

Ap

r-02

No

v-0

2

Ju

n-0

3

Ja

n-0

4

Au

g-0

4

Ma

r-05

Oct-

05

Ma

y-0

6

De

c-0

6

Ju

l-07

Feb-0

8

Se

p-0

8

Ap

r-09

No

v-0

9

Ju

n-1

0

Ja

n-1

1

Au

g-1

1

P/B ratio

LT average

3. Inflows into emerging markets holding up

Source: Datastream, HSBC, Harvest Global Investments Ltd. 11

Confidence in China remains?

4. China is an increasingly important contributor to world GDP, yet still “under-invested” by global investors

MSCI AC World Index World Economy (in PPP terms)

No. of Stocks Weight Distribution of World

GDP in 2010

% Contribution to

World GDP Growth

2000-2008

Emerging Markets (Total) 2785 13.63 50.2 70.7

China 454 2.34 16.3 29.3

India 372 1.15 5.3 7.3

Latin America 250 2.99 8.0 7.3

Russia and other CIS 56 0.79 4.4 7.3

Developed Markets

(Total) 6270 86.37 49.8 29.3

USA 2590 43.12 18.3 9.8

EU-15* 1330 20.44 17.7 9.8

Japan 1158 8.64 5.6 2.4

AC World Index (Total)/

World Economy 9055 100.00 100.0 100.0

Source: MSCI Barra (as of 31 Dec 2010), the Conference Board, Russell Investments, iFAST Compilations

*EU-15 includes Austria, Belgium, Germany, Denmark, Spain, Finland, France, United Kingdom, Greece, Ireland, Italy, Luxembourg, Netherlands,

Portugal and Sweden.

12

What do these Chinese companies have in common?

13

For illustrative purpose only.

This does not constitute as a recommendation to buy or sell any of the securities mentioned

What do these Chinese companies have in common?

14

“Chinese” versions of western Information

Technology products and services

For illustrative purpose only.

This does not constitute as a recommendation to buy or sell any of the securities mentioned

5. Economy remains well-supported

15

a) Slower GDP growth, but overall level remains high

b) Inflation remains above 5% but expected to peak in July/ August

c) Timely governmental intervention: Property policy is working

d) Export and consumption levels are stable

e) Rising income levels contribute to increasing consumption

f) 12th Five year plan sets out new investment opportunities

Source: Harvest Global Investments Ltd.

a. GDP growth decreases, but overall level remains high

Source: WIND, Harvest Fund Management

1Q GDP growth was lower than that from 4Q, but the overall level is not considered low.

We expect investment to drop modestly in 2Q and 3Q, consumption to remain stable, trade surplus

will rise, and GDP growth is to be lower than 1Q.

Purchasing Managers Index (PMI) was 50.9 in August, which remained above the expanding

threshold of 50.

16

35

40

45

50

55

60

65

PMI

11.9

10.3 9.6 9.8 9.7 9.5 9.6

8.4 8.0

10Q1 10Q2 10Q3 10Q4 11Q1 11Q2(E)

GDP, YOY % GDP, Quarter to Quarter %

GDP Growth (2010-2011) Purchasing Managers Index (PMI)

b. Inflation remains above 5% but expected to peak in Q3

Source: WIND, CRR, Datastream, CLSA Asia-Pacific Markets, Harvest Global Investments Ltd. 17

In 2Q, CPI remained relatively high on rising food prices, high base effect and imported inflation.

We expect CPI to fall after July / August but to remain modestly high for the whole year.

M1 is a leading indicator for CPI: credit tightening reduces overheating in the economy

CPI growth %

5.5

Jan 10

Base effect CPI, YoY %

0

5

10

15

20

25

30

35

40

45

(4)

(2)

0

2

4

6

8

10

1998 2000 2002 2004 2006 2008 2010 2012

CPI YoY (LHS)

M1 YoY (leading by 12M)

(%) (%)

CPI Growth (2010 - 2011) CPI & M1 levels

May 10 Sept 10 Jan 11 May 11 July 11E Sept 11E

c. Government is reactive to property prices - policies are working

Source: WIND, CLSA Asia-Pacific Markets, Datastream; Harvest Global Investments Ltd. 18

(0.8)

(0.6)

(0.4)

(0.2)

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

Nov 0

7

Jan 0

8

Mar

08

May 0

8

Jul 08

Sep 0

8

Nov 0

8

Jan 0

9

Mar

09

May 0

9

Jul 09

Sep 0

9

Nov 0

9

Jan 1

0

Mar

10

May 1

0

Jul 10

Sep 1

0

Nov 1

0

Jan 1

1

MoM home price increase % (nationals avg of 72 cities)

Tighter HBR applied

to 35 cities; property

tax launched in SH

and CQ (-)

Sales tax

reduction, stamp

duty excluded (+)

Gov't tightened

downpayment

requirement for 2nd

mortgage (-)

First introduction of

Home-buying restriction

(HBR) in Beijing; strict

mortgage policy (-)

HBR implemented to 14

cities; stricter mortgage

policy nationwide (-)

c. Social housing to support government investments

19

-2

-1

0

1

2

3

4

5

6

7

Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11

-10

-5

0

5

10

15

20

25

30%MoM

%YoY (RHS)

(%MoM) (%YoY)

经济适用房

Source: China Realty Research, CLSA Chris Wood

20 Source: CLSA, Harvest Global Investments Ltd.

0

5

10

15

20

25

Jan-0

1

May-0

1

Sep-0

1

Jan-0

2

May-0

2

Sep-0

2

Jan-0

3

May-0

3

Sep-0

3

Jan-0

4

May-0

4

Sep-0

4

Jan-0

5

May-0

5

Sep-0

5

Jan-0

6

May-0

6

Sep-0

6

Jan-0

7

May-0

7

Sep-0

7

Jan-0

8

May-0

8

Sep-0

8

Jan-0

9

May-0

9

Sep-0

9

Jan-1

0

May-1

0

Sep-1

0

Jan-1

1

May-1

1

(%)

(40)

(20)

-

20

40

60

Jan-0

1

May-0

1

Sep-0

1

Jan-0

2

May-0

2

Sep-0

2

Jan-0

3

May-0

3

Sep-0

3

Jan-0

4

May-0

4

Sep-0

4

Jan-0

5

May-0

5

Sep-0

5

Jan-0

6

May-0

6

Sep-0

6

Jan-0

7

May-0

7

Sep-0

7

Jan-0

8

May-0

8

Sep-0

8

Jan-0

9

May-0

9

Sep-0

9

Jan-1

0

May-1

0

Sep-1

0

Jan-1

1

May-1

1

d. Export may taper off but consumption levels are stable

Trade surplus increased slightly in 2Q,

partly due to Japan earthquake.

Retails sales YoY

Export value YoY (%)

Retail sales growth trend – Rising wages

We expect both income and

private consumption to rise over

the years

e. Income and consumption growth expected to pick up

Discretionary consumption will be the biggest beneficiary

Increasingly affluent middle class

Higher spending on other goods and

services as the household income

increases

Discretionary consumption will be

the largest beneficiary

Source: Credit Suisse; Harvest Global Investments Ltd. 21

30

40

50

60

70

80

1992 1994 1996 1998 2000 2002 2004 2006 2008 2010E 2012E 2014E

% o

f G

DP

Wage Other Income Private Consumption

0

5

10

15

20

25

30

35

40

45

0 5,000 10,000 15,000 20,000 25,000

Monthly household income (Rmb)

Foo

d co

nsum

ptio

n as

% o

f inc

ome

Growth driver: Strong auto sales as domestic demand improves

In 2009 China sold more cars (10.3 Mio) than US and turns into largest auto market

22 Source: Morgan Stanley, HSBS Halbis 2009, Bloomberg 2010

China auto sales und penetration rate 2000 – 2009

Auto sales in million.

10.3

5.7 5.3

2.5 3.1

4.2

1.9 1.1 0.7 0.6

0.8% 0.9% 1.1% 1.3% 1.6%

2.0% 2.4%

2.9%

5.1%

0.7%

0

4

8

12

2000 2001 2002 2003 2004 2005 006 2007 2008 2009 0.0%

2.0%

4.0%

6.0%

Penetration Rate (per 100 household)

Unit sales (LHS) Penetration rate (RHS)

Highlights of 12th five-year plan

5-year

plan Period Announced Theme

Benefited

sectors

12th 2011 -

2015

TBC Mar-11

NPC

- Inclusive growth, focusing on income growth for low-income groups.

- Using energy efficiency as the lever to upgrade the value chain.

- Develop 7 new strategic industries.

- Boost domestic consumption, including tourism, media, etc.

- Continue the urbanization development.

Consumer,

Internet,

Tourism, New

Energy

11th 2006-

2010 Oct-05

- Fully implement the "Scientific Development theory" by President Hu

Jintao and develop harmonious society.

- Maintain stable and fast economic growth.

- Optimize the economic structure.

- Strengthen the local branding and intellectual property development.

- Enhance the international competitiveness of Chinese enterprise.

- Improve industrial production efficiency and lower resources consumption.

- Accelerate the urbanization development.

Consumer, IT,

Property

10th 2001-

2005 Oct-00

- Accelerate the modernization of society and further improve the economic

development.

- Strengthen the service sector development. Increase the weighting of

service sector in GDP and employment.

- Enhance the IT and telecommunication network development.

- Strengthen the infrastructure in water resources, transportation and

energy sectors.

- Develop the western part of China.

- Actively promote urbanization.

Telecom,

Transport

infrastructure,

Energy

Source: Harvest Global Investment 23

Market Outlook – Long Term

Overall market will

likely grow in line

with China’s GDP

growth while alpha

strategy (stock and

sector selection)

will likely matter

more

Drivers for long term:

• China’s weighting in the global index

weightings set to increase from current

low base

• Unleash of domestic liquidity and forex

reserve via QDII

• Further income growth and productivity

gain will drive demand upgrade

• Structural shift from export, investment

to consumption

• Low system debt level and high

savings ratio means room for further

leverage and investment

• Government will have the political will

for stimulus if necessary

Chinese Equity – A Worthy Separate Asset Class!

Secular growth

industries such

as consumption,

service and

healthcare will

likely deliver

alpha

24 Source: Harvest Global Investments Ltd.

Fund Update

26

DWS China Equity Fund: Fund facts

Investment Objective*: To achieve capital appreciation in the

medium to long term by investing in a diversified portfolio of

equity and equity-related securities issued by entities listed/to be

listed on stock exchanges of China, including Hong Kong;

entities organised or domiciled in China or of entities which have

significant assets, business, production activities, trading or

business interest in China.

Dealing currencies: SGD / USD

Subscription: Cash / CPS-OA / SRS

Fund Size^ (as of Aug 2011): SGD 490.35 million

Morningstar Rating** (as of Aug 2011):

Launch date: 04th January 2005

Management fee*: 1.5% p.a.

Benchmark: MSCI China Total Return Index

Awards:

The Edge-Lipper Fund Awards: Best Equity China Fund 3-Years

for 3 years (2008, 2009, 2010)

Recommendation: The Fund is recommended by

Fundsupermart.com (China equity)

*Please refer to the prospectus for details on the investment objective and the fees involved. ^Source: HSBC Trustees. **Source: Morningstar.

Year to Year Returns (%)

DWS China Equity Fund Calendar year performance (as of 30th September 2011)

2005 2006 2007 2008 2009 2010 2011

DWS China Equity (%) 19.66 73.74 64.87 (47.61) 64.45 (7.26) (21.54)

MSCI China (%) 18.78 64.34 52.93 (52.08) 55.56 (6.51) (25.19)

Outperformance(%) 0.88 9.40 11.94 4.47 8.89 (0.74) 3.65

Source: Bloomberg as of 30th September 2011. Performances are in SGD and on bid-bid basis. Past performance is not indicative of future performance

27

-0.6

-0.4

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

2005* 2006 2007 2008 2009 2010 2011^

DWS China Equity Fund MSCI China Index

DWS China Equity Fund Performance since inception (as of 30th September 2011)

28

+114.90%

+55.64%

Common based returns

DWS China

Equity Fund

Performance

since inception:

4th January 2005

Source: Bloomberg as of 30th September 2011. Performance in SGD and on bid-bid basis. Rebased at inception date: 04th January 2005 = 100. Past performance is not

necessarily indicative of future performance.

50

100

150

200

250

300

350

400

Ja

n-0

5

Ma

y-0

5

Se

p-0

5

Ja

n-0

6

Ma

y-0

6

Se

p-0

6

Ja

n-0

7

Ma

y-0

7

Se

p-0

7

Ja

n-0

8

Ma

y-0

8

Se

p-0

8

Ja

n-0

9

Ma

y-0

9

Se

p-0

9

Ja

n-1

0

Ma

y-1

0

Se

p-1

0

Ja

n-1

1

Ma

y-1

1

Se

p-1

1

DWS China Equity Fund MSCI China Index

Average Returns (annualized)

Standard Deviation (annualized)

DWS China Equity Fund Risk return comparison (as of 31st August 2011)

1 Year (%) 2 Years (%) 3 Years (%) 5 Years (%) Since Inception (%)

DWS China Equity 13.33 14.73 23.38 27.00 24.60

MSCI China 13.75 13.66 24.80 29.78 27.07

1 Year (%) 3 Years (%) 5 Years (%) Since Inception (%)

DWS China Equity -7.71 1.07 11.16 17.08

MSCI China -11.37 -2.17 6.42 13.03

Outperformance 3.66 3.24 4.74 4.05

Source: Harvest Global Investments Ltd., Gross of fees in SGD as of 31st August 2011, NAV publication date: 4th January 2005

Past performance is not indicative of future performance

Deutsche Asset Management (Asia) Limited (“DeAM Asia”) appointed Harvest Global Investments Limited as the sub-manager of DWS China Equity Fund (the “Fund”) with effect from 1

September 2009. Performance before 1 September 2009 refers to that of the Fund managed by DeAM Asia. The investment objective of the Fund remains the same and is managed by

the same management team with similar investment policies and strategies 29

DWS China Equity Fund Portfolio holdings (as of 31st August 2011)

Source: Harvest Global Investments Ltd., as of 31st August 2011 30

China Mobile Ltd. Telecommunication 8.39

Industrial & Commercial Bank of China Ltd. Financials 7.80

China Construction Bank Corp. Financials 6.04

CNOOC Ltd. Energy 4.99

PetroChina Co. Ltd. Energy 4.08

China Merchants Bank Co. Ltd. Financials 3.96

China Pacific Insurance (Grp) Financials 3.84

China Telecom Gorp. Ltd. Telecommunication 3.01

China Coal Energy Company Ltd. Energy 2.89

Ping An Insurance Co. Financials 2.83

For illustrative purpose only. Holdings are subject to change without notice

This does not constitute as a recommendation to buy or sell any of the securities mentioned

Principal holdings (%)

Importance of in-depth China knowledge and local expertise: Harvest Global Investments (HGI): Sub-manager of the DWS China Equity Fund

31 Source: Harvest Fund Management Ltd,, Harvest Global Investments Ltd. as of 30th June 2011.

The industry rank as of 30th June 2011 by Z-Ben Advisors.

In-depth knowledge of the China

market

2nd largest fund management

company

The largest amongst 36 Sino-Foreign

JV asset management companies in

China

To develop best-in-class investment

management platform for China and

Asia equities

A winning formula for managing China

Equities

Strengths of the DWS & Harvest

partnership:

Deutsche Asset Management (Asia)

Limited

China Credit Trust Co. , Ltd

Lixin Investment Co., Ltd

Harvest Fund Management Co. Ltd

(HFM)

Harvest Global Investments Limited

(HGI)

30%

40%

30%

100%

立信投资

One of the largest in-house research platforms for China

Harvest Investment/Research Team* (100+ Professionals)

Equity Investment

Research

Fixed-Income

Investment

Research

Other Research Trading Compliance &

Risk Management

Investment & Research

Professionals

33 Fund Managers

36 Sector Analysts

6 Fund Managers

5 Credit Analysts

7 Macro and

Quantitative

Analysts

21 Traders

(6 Portfolio

Controllers)

10 Compliance

Officers

3 Risk Managers

Average Industry

Experience (yrs)

7 8 4 5 4

Average Experience

at Harvest (yrs)

3 3 3 3 3

Hong Kong

Andrew TAN

(Head & Deputy CIO)

+ 3 PMs

Risk Management Team

[Wayne BI (Head)]* Chinese Equities Team Asia Equities Team

Trading Team

[Darren LIU (Head)]*

PR China

Beijing

TeamYiqian JIANG (Head)

+ 3 PMs (HK) + 2PMs (CH)

+ 1 Analyst (CH)

1 Risk ManagerTrading 2 Traders

CIO

Janice DAI*

* Based in Beijing with Harvest Fund Management Co., Ltd. 32

Industry recognition for the fund management team in 2010 – Harvest Global Investments Ltd. (HGI)

Performance / Greater China Region / Five years

Winner: Harvest Global Investments Ltd. managing DWS China Equity Fund

Hong Kong / Best Offshore China Fund House

Winner: Harvest Global Investments Ltd

33 Source: Harvest Global Investments Ltd.

Fund Awards

Best fund over 3 years – Equity China Best fund over 3 years – Equity China

2008 2009

Best fund over 3 years – Equity China

2010

34

Portfolio Positioning

DWS China Equity Fund Sector allocation as of 31st August 2011

Source: Harvest Global Investments Ltd. as of 31st August 2011, Benchmark: MSCI China Total 36

For illustrative purpose only. Holdings are subject to change without notice

Top 3 overweights

Consumer discretionary

Health Care

Utilities

0.00%

6.85%

34.05%

18.76%

5.56%

6.48%

6.03%

1.95%

13.47%

0.80%

6.04%

7.19%

1.81%

33.39%

14.11%

2.79%

4.91%

5.75%

2.30%

13.53%

2.31%

11.90%

0% 5% 10% 15% 20% 25% 30% 35% 40%

[Cash]

Industrials

Financials

Energy

Consumer Staples

Materials

Information Technology

Utilities

Telecommunication …

Health Care

Consumer Discretionary Portfolio Weight Benchmark Weight

(%)

Portfolio positioning

37 Source: Harvest Global Investments Ltd. as of 31st July 2011. Subject to change without notice.

We overweight:

Consumer discretionary (focusing on inflation beneficiaries especially

retailers with strong same-store-sales growth).

Information Technology (positive on Internet and IT servicing companies

which provide strong secular growth with little policy risk).

Healthcare (focusing on companies with leading, innovative products

which are less affected by price control by government).

We underweight:

Financials (life insurance premium growth slower-than-expected; property policies will

continue to be implemented).

Industrials (slower industrial production in China in the near term as well as slower overseas

demand).

Consumer staples (margin pressure as costs are rising while government restricts the

increase in product prices; rich valuation).

For illustrative purpose only.

This does not constitute as a recommendation to buy or sell any of the securities mentioned

Why invest in the DWS China Equity Fund?

38

1. Participate in the Chinese growth story

• Strong economic growth: Stable real consumption and

continued infrastructure growth through social housing

and hydraulic engineering projects will support the

economic growth.

• 12th Five Year Plan: Sustainable growth for key

industries

• Pro-active government measures: Diminishing

concerns over an over-heating economy and a hard-

lending scenario

• The Chinese consumer: Growing middle-class with a

high spending power

• Attractive equity market: Current Price / Earnings (P/E)

ratio of the Chinese market is below the long term

average1

2. Domestic advantage: Local research teams with in-depth

knowledge of the domestic equity markets and sector

trends

3. Award-winning fund: Best fund over 3 years (2008, 2009,

2010)

Appendix

Potential systematic risks to the Chinese economy

Source: BofA Merrill Lynch Global Research, Oct 2011, DeAM analysis 40

Impact to Chinese

economy

Sluggish US

economic growth

European debt

crisis

Sharp decline in

China’s exports

Loose monetary

policy

Persistently high

inflation

Potential default of

local government

debt

Bank’s balance

sheet under stress

Capital flight

Potential government measures:

Fiscal / Monetary policy

RMB appreciation / depreciation

China has both the political will and

fiscal capacity for stimulus if needed

Investing into China: The different share classes of Chinese companies

Source: Chinadaily, Citywire; illustrations by Deutsche Asset Management

A Share B Share H Share Red Chips S Chips

Listed on Shanghai

Shenzhen

Shanghai

Shenzhen

Hong Kong

(Chinese

companies)

Hong Kong

(Overseas

incorporated state-

owned or state-

controlled

enterprises)

Singapore

Stock

Exchange

Currency

traded in Renminbi

Shanghai (USD)

Shenzhen (HKD) HKD HKD SGD

Available for

sale to

Domestic Chinese

residents

Qualified foreign

institutions (QFII

scheme)

Non Chinese

residents

Residents with

appropriate foreign

currency dealing

accounts

No resident

restrictions

No resident

restrictions

No

restriction

Examples Bank of China Huaxin Cement

Sinopec

Shanghai

Petrochemical

Lenovo Yanlord

Land

41

Fund Managers

42

Jiang Yiqian, Director / Harvest Global Investments Ltd.

Ms. Jiang joined Harvest in September 2009 and is responsible for all Chinese equity investment

activities. Prior to Harvest, she worked at Deutsche Asset Management in Hong Kong for 9 years

as a portfolio manager for Chinese equities. Her previous experience includes 3 years as an

assistant manager of Shanghai International Asset Management (HK) Co., Ltd and 2 years in the

Shanghai B share market for Shanghai Shenyin Securities (currently known as Shenyin

Wanguo). Ms. Jiang graduated from Shanghai University of Finance and Economics with a degree

in Finance. She also holds an MBA in International Banking and Finance from the University of

Birmingham, UK.

Michael Huashen Yu, CFA, Portfolio Manager- Harvest Global Investment Ltd.

Michael Yu joined Harvest in May 2010. He starts co-managing the DWS Invest Chinese Equities

since September 2010 and is also responsible for China market strategy and China model portfolio.

Michael has 12 years of industry experience and 7 years of investment experience. Prior to

Harvest, Michael worked for Invesco (HK), managing the pooled HK and China Fund as well as

institutional mandates for 3 years. He also worked for China International Capital Corporation (HK)

and Cornerstone Asset Management in Canada. He had spent 5 years as a senior loan officer with

China Construction Bank. Michael holds a Master of Business Administration degree from the

University of Toronto and a Master of Finance degree from the Xiamen University. He is a holder of

the Chartered Financial Analyst designation.

Source: Harvest as at September 2010

Appendix: Investment Philosophy & Process

Investment Philosophy

Investment philosophy and core competence

We believe that markets (especially for emerging markets) are not always efficient. We believe

that fundamental bottom-up research with top-down sector allocation, coupled with strict risk

management provide the most reliable method to generate alpha on a consistent basis.

Our core competence lies in our ability to conduct in-depth, effective bottom-up fundamental

research and sector analysis

44

Investment Process

Our investment process is a close mapping to reflect our investment philosophy:

Investment process can be defined by the following 4 steps: information gathering, information analysis,

portfolio construction and risk control/compliance /trading.

We are totally committed to research. We are convinced that over the long term market prices are oriented

on “fundamental values”. For this reason, we follow an investment process that is based on our own, in-

house, fundamental evaluation of each individual stock. The functions of research analysis and portfolio

management are combined. Portfolio managers are responsible for research and stock selection within

their areas of responsibility.

Macro Research

Strategy Research

Equity Research

Sector Research

Quantitative Research

Daily Meeting

Weekly Meeting

Monthly Sector Meeting

Quarterly Strategy Meeting

Inve

stm

en

t Ta

rge

t

Ris

k M

an

age

me

nt D

ep

t

Tra

de

Portfolio

Risk Manager

Investment Committee

1. Information Collection

2. Information Analysis

3. Decision Making and Portfolio Construction

Portfolio

Construction

4. Trade and Risk Management

Fund Manager

45

Disclaimer

This is for information purposes only and is not the basis for any contract to deal in any security or instrument, or for Deutsche Asset Management (Asia) Limited (“DeAM”) or its affiliates to enter into or arrange any type of transaction as a consequence of any information contained. This shall not be construed as the making of any offer or invitation to anyone in any jurisdiction in which such offer is not authorised or in which the person making such offer is not qualified to do so or to anyone to whom it is unlawful to make such an offer.

The forecasts provided are based upon our opinion of the market as at this date and are subject to change, dependent on future changes in the market. Any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the future or likely performance. Investments are subject to risks, including possible loss of principal amount invested. The value of shares/ units and their derived income may fall as well as rise. Past performance or any prediction or forecast is not necessarily indicative of future performance. No assurance is given that the investment objective or the targets will be met. This document does not constitute investment advice or recommendation and was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it. Investors should study all relevant information and consider whether the investment is appropriate for them. DeAM or its affiliates may hold positions in the securities referred. The investment schemes referred are not obligations of, deposits in, or guaranteed by DeAM or any of its affiliates.

As permitted under the Directives of the European Parliament and of the Council of 21st January 2002 relating to the undertakings for collective investment in transferable securities (“UCITS”), derivatives transactions may be used as part of the investment strategy of the investment schemes and not merely for efficient portfolio management and hedging purposes. Investors should consider the investment policy of that investment scheme and its associated risk profile as disclosed in the Singapore Prospectus.

You are not authorised to redistribute this document in any jurisdiction in which such distribution is prohibited, nor qualified to make any offer, representation or contract on behalf of DeAM or its affiliates. Although the information was compiled from sources believed to be reliable, no liability for any error or omission is accepted by DeAM or its affiliates or any of their directors or employees. The information and opinions contained may also change.

All third party data (such as MSCI, S&P & Bloomberg) are copyrighted by and proprietary to the provider.

DWS is the brand name of mutual funds offered by Deutsche Asset Management (Asia) Limited (Reg. No. 198701485N).

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