PowerShares DB US Inflation ETN
PowerShares DB US Deflation ETN
Deutsche Bank AG, London Branch has filed a registration statement (including a
prospectus) with the SEC for the offering to which this communication relates.
Before you invest, you should read the prospectus and other documents filed by
Deutsche Bank AG, London Branch for more complete information about the issuer
and this offering. You may get these documents for free by visiting
powersharesetns.com | www.dbxus.com or EDGAR on the SEC website at www.sec.gov.
Alternatively, you may request a prospectus by calling 800 983 0903 | 877 369
4617, or you may request a copy from any dealer participating in this
Important Risk Considerations:
The ETNs offer investors exposure to the month-over-month performance of their
respective inflation index and the month-over-month returns on the TBill index,
measured from the first calendar day to the last calendar day of each month,
less the investor fee. The inflation indices are intended to rise and fall
based on changes in the market's expectations about future rates of inflation,
and are therefore distinct from the US City Average All Items Consumer Price
Index for All Urban Consumers (the "CPI"), the commonly known consumer price
index, which is used to track current inflation in the United States. Unlike
TIPS, which are intended to provide inflation protection, the ETNs allow
investors to take long or short exposure to changes in the market's
expectations about inflation and do not guarantee any return of principal at
maturity. Investors should consider their investment horizon as well as
potential trading costs when evaluating an investment in the ETNs and should
regularly monitor their holdings of the ETNs to ensure that they remain
consistent with their investment strategies.
The ETNs are senior unsecured obligations of Deutsche Bank AG, London Branch
and payment of the amount due on the ETNs is entirely dependent on Deutsche
Bank AG, London Branch's ability to pay. The rating of Deutsche Bank AG, London
Branch does not address, enhance or affect the performance of the ETNs other
than Deutsche Bank AG, London Branch's ability to meet its obligations. The
ETNs are riskier than ordinary unsecured debt securities and have no principal
protection. Risks of investing in the ETNs include limited portfolio
diversification, full principal at risk, uncertain tax treatment, strategy
risk, trade price fluctuations, illiquidity and credit risk. Investing in the
ETNs is not equivalent to a direct investment in the inflation indices or
components of the inflation indices. The investor fee will reduce the amount of
your return at maturity or upon repurchase of your ETNs even if the value of
the relevant inflation index has increased. If at any
What are the PowerShares DB US Inflation and US Deflation ETNs?
The ETNs are senior unsecured obligations issued by Deutsche Bank AG, London
Branch that are linked to the month-over-month returns, whether positive or
negative, on the DBIQ Duration-Adjusted Inflation Index and the DBIQ
Duration-Adjusted Deflation Index.
The inflation indices aim to track changes in the market's expectations of
future inflation implied by the difference in yields between Treasury
Inflation-Protected Securities (TIPS) and US Treasury bonds with approximately
equivalent terms to maturity. A combination of offsetting short and long
notional positions in TIPS and Treasury Bond Futures is one way in which this
expectation of future inflation may be measured. If the market's expectation of
future inflation increases, TIPS are likely to outperform US Treasury bonds
with approximately equivalent terms to maturity. If the market's expectation of
future inflation decreases, TIPS are likely to underperform US Treasury bonds
with approximately equivalent terms to maturity. Therefore, to gain exposure to
the market's expectation that future inflation will increase, the Inflation
ETNs take a notional long position in TIPS and a notional short position in US
Treasury bonds with approximately equivalent terms to maturity. To gain
exposure to the market's expectation that future inflation will decrease, the
Deflation ETNs take a notional short position in TIPS and a notional long
position in US Treasury bonds with approximately equivalent terms to maturity.
If the daily repurchase value of the securities is above $100.00 for three
consecutive trading days or is below $25.00 for three consecutive trading days,
Deutsche Bank AG, London Branch will automatically effect a 2 for 1 split or a
1 for 2 reverse split of the securities, respectively.
Because the index multiplier remains constant at 0.10 per security, a mandatory
split or reverse split will have the effect of increasing or decreasing an
investor's exposure to the applicable inflation index, respectively.
Investors may redeem the ETNs in blocks of 50,000 securities and multiples of
25,000 securities in excess thereof, subject to the procedures described in the
pricing supplement. Redemptions may include a fee of up to $0.075 for each
security that is redeemed or a fee of up to $0.50 if an investor offers in
excess of 500,000 securities for redemption on any repurchase date.
Benefits and Risks of PowerShares DB US Inflation and US Deflation ETNs
 Relatively low cost
 Intraday access
 Non-principal protected
 Subject to an investor fee
 Limitations on redemption
 Concentrated exposure
 Credit risk of the issuer
 Issuer call right
 Potential lack of liquidity
time the repurchase value of the ETNs is zero, the relevant ETNs will be
accelerated and you will lose your entire investment in such ETNs. An
investment in the ETNs is not suitable for all investors.
The ETNs may be sold throughout the day on NYSE Arca through any brokerage
account. Ordinary brokerage commissions apply. Sales in the secondary market
may result in losses. There are restrictions on the minimum number of units
that you may redeem directly with Deutsche Bank AG, London Branch, as specified
in the applicable pricing supplement.
The ETNs provide concentrated exposure to notional positions in TIPS and US
treasury bond futures contracts. The market value of the ETNs may be influenced
by many unpredictable factors, including, among other things, US government
fiscal policy and monetary policies of the Federal Reserve Board, inflation and
expectations concerning inflation, interest rates, and supply and demand for
TIPS and US Treasury bonds.
PowerShares([R]) is a registered trademark of Invesco PowerShares Capital
Management LLC. Invesco PowerShares Capital Management LLC is an indirect,
wholly owned subsidiary of Invesco Ltd.
Certain marketing services may be provided for these products by Invesco
Distributors, Inc. or its affiliate, Invesco PowerShares Capital Management
LLC. Invesco Distributors, Inc. will be compensated by Deutsche Bank or its
affiliates for providing these marketing services. Neither Invesco
Distributors, Inc. nor Invesco PowerShares is affiliated with Deutsche Bank.
An investor should consider the ETNs' investment objectives, risks, charges and
expenses carefully before investing.
An investment in the ETNs involves risks, including the loss of some or all of
the principal amount. For a description of the main risks, see "Risk Factors"
in the applicable pricing supplement and the accompanying prospectus supplement
Not FDIC Insured -- No Bank Guarantee --May Lose Value This material must be
accompanied or preceded by a prospectus. Before investing, please read the
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