Investment Strategy

The Capital Protected ChinaOpportunity Receipt is a clearly defined, transparent investment giving investors access to an exciting equity market with growth potential. Investors also receive principal protection on their initial investment provided the Receipts are held until the last Valuation Date and the Completion Amount and Holder Expenses are paid.

Investors purchase their Capital Protected ChinaOpportunity Receipts in AUD and receive exposure to the performance of the ChinaOpportunity™ Euro Price Return Index. The ChinaOpportunity™ Euro Price Return Index reflects the price return performance of thirty stocks selected and rebalanced quarterly from a broad, tradable Chinese stock universe. Investors receive settlement based on the AUD/EUR exchange rate locked in on the Issue Date. Hence investors are not exposed to AUD/EUR currency risk but will be exposed to other currency risk since the currencies by which the Index Constituents are traded and quoted are different to that of the Index.

The Capital Protected ChinaOpportunity Receipt is a capital protected product structured so that if investors hold the investment until the last Valuation Date and complete (i.e. lodge a valid Completion Notice and pay the Completion Amount and any Holder Expenses), the minimum Physical Settlement Value of the deliverable parcel received will be equal to the Issue Price. Following delivery, investors are able to retain exposure to a basket of Chinese shares within the ChinaOpportunity™ Euro Price Return Index. If investors fail to lodge a valid Completion Notice, they will be deemed to have directed Deutsche Bank to sell the Physical Settlement Portfolio on their behalf as Sale Trustee. Investors will receive a minimum cash payment amount equal to the Issue Price less Completion Amount and Holder Expenses as well as the amount (if any) by which the Physical Settlement Value exceeds the Issue Price.