Strategic and tactical allocations
Proposed allocations for taxable client (where hedge funds are suitable)
Income Growth & ircome Growth. Maximum Growth
Strategic Tactical Strategic Tactical Strategic Tactical Strategic Tactical
CRAMS 49.0% 67.0% 64.5%
U.S. Large Cap 15.0% 15.0% 23.5% 23.5% 33.0% 33.0% 42.0% 42.0%
U.S. Small Cap 2.0% 1.5% 2.5% 2.0% 3.5% 3.0% 4.0% 3.0%
EAFE 11.5% 11.0% 17.0% 16.0% 22.5% 21.5% 29.0% 27.5%
European 7.5% 7.0% 11.5% 10.5% 150% 14.0% 20.0% 18.5%
Japan 2.5% 2.5% 3.0% 3.0% 4.5% 4.5% 5.5% 5.5%
Pacific ex-Japan 1.5% 1.5% 2.5% 2.5% 3.0% 3.0% 3.5% 3.5%
Emerging Market 4.0% 3.5% 6.0% 5.5% 8.0% 7.0% 9.5% 8.5%
Core Emir Mkts Equity 2.0% 3.5% 4.5% 5.5%
Erna Mkls Asia Equity 1.5% 2.0% 2.5% 3.0%
Frxtsi Income & Cash 58 5,s 40.5% 24.0% 7.0%
Municipal Bonds 50.5% 50.5% 32.0% 32.0% 16.0% 16.0%
High Yield Bonds 2.0% 3.0% 2.0% 3.0% 2.0% 3.0% 2.5% 4.0%
Intl Bonds- Hedged
Emerging Market Bonds 2.0% 2.5% 2.5% 3.0% 2.0% 2.5% 2.5% 3.5%
TIPS 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%
Cash 2.0% 3.0% 2.0% 3.5% 2.0% 4.0% 2.0% 4.5%
Z2521==l1
Hedge Funds
90%
7.0% 7.0%
1O5%
8.5% 8.5%
9.0%
7.0% 7.0%
8.5%
6.0% 6.0%
Non-dlrectional HF 5.0% 5.0% 4.5% 4.5% 3.0% 3.0%
Directional HF 2.0% 2.0% 4.0% 4.0% 4.0% 4.0% 6.0% 6.0%
Cornmodkies 2.0% 1.0% 2.0% 1.0% 2.0% 1.0% 2.5% 1.0%
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Source. internal sources. Last asset aecication change was 'i015 and is reviewed monthly Allocation reocrnmentionoris we subject to change without notice. The 'strategic allocation'
represents our longer term outlook on ponfollo &vete/tic-4bn and serves as a frame of reference for our short-term tactical adjustments for U.S. clients Actual portfolio 00111DOSbOri and performance will
vary within the strategic range based upon active market judgments. altering the allocation and adjusting withn asset classes Neither this Allocation Table nos any of its contends may be used for any
purpose without the consent and knowledge of Deutsche Bardt It may not be reproduced or circulated without our mitten atthority
The asset allocations desubed herein are formulated by the Regional Investment Commfitee unthin Wealth Management(RIG, and rnay ilifize the following asset class components' tr.S large core
equity. U.S. small cap equity, Japan equity. Europe equity. Pacific ex-Japan equity. emerging markets equity. U S fixed income. U.S. Pugh-yield bonds, international bonds. emerging market bonds.
municipal bands. Treasury Inflation Protected Securities, hedge funds. Real Estate Investmerl Trusts. commodities, and cash The RIC currently recognizes four basic investment strategies. Income,
Growth & Income. Gratrth. and Mmennen Growth. The strategy selected is based upon the indnedual investor's objectives and risk tolerance. Your selected portfolio muss® determine the specific allocation
to the asset classes represented by these vehicles
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