0 STRICTLY CONFIDENTIAL DB Absolute Return Strategies An Essential Part of the Picture Chris Hancock, Vice President

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STRICTLY CONFIDENTIAL

DB Absolute Return StrategiesAn Essential Part of the Picture

Chris Hancock, Vice Presidentwww.db.com/ars

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Important Note

Investments in hedge funds are speculative and include a high degree of risk. Investors could lose their entire investment. Hedge funds are suitable only for persons who can lose their entire investment. Prospective investors should carefully consider these risks before investing. An investment in the Fund involves a high degree of risk and is suitable only for sophisticated investors. No assurance can be given that the investment objective will be achieved or that an investor will receive a return of all or part of his or her investment, and investment results may vary substantially over any given time period. An investment is not a deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency or by Deutsche Bank AG, its affiliates, or subsidiaries.

Depending on the currency of the Fund, investors may be subject to currency exchange risks which may have an adverse effect on the value, price or income returns of the investment.

This material is intended for information purposes only, does not constitute investment advice, or a recommendation, or an offer or solicitation, and is not the basis for any contract to purchase or sell any security, or other instrument, or for Deutsche Bank AG to enter into or arrange any type of transaction as a consequence of any information contained herein.

Although the information herein has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Opinions and estimates involve a number of assumptions which may not prove valid and may be changed without notice. Performance comparisons may not take into account any transaction costs, commissions or personal taxes. Past performance is no guarantee of future results and no assurance can be given that any structure described herein would yield favorable investment results or that the Fund’s investment objectives will be achieved or that the investor will receive a return of all or part of their investment.

The Fund may not be a suitable investment for you and could involve important legal, financial, fiscal and tax consequences and investment risks, which should be discussed with your professional adviser. For more information, including a discussion of investment risks, please request an Offering Memorandum from your Deutsche Bank AG or Deutsche Asset Management representative. An investment should only be made after review of the Offering Memorandum and following consultation with your independent financial adviser. The information herein is qualified in its entirety by the information in the Fund’s Offering Memorandum.

We or our affiliates or persons associated with us, may maintain a long or short position in securities referred to herein, or in related futures or options, purchase or sell, make a market in, or engage in any other transaction involving such securities, and earn brokerage or other compensation in respect of the foregoing.

For the information of investors in the United States of America:None of the interests of the Fund has been or will be registered under the US Securities Act of 1933, as amended (the ‘1933 Act’) or the securities laws of any U.S. state. Such interests may only be offered or sold directly or indirectly in the United States or to any US person in reliance on exemptions from the 1933 Act and such laws. In addition, the Fund has not been and will not be registered as an investment company under the US Investment Company Act of 1940, as amended.

For the information of investors in the United Kingdom:The Fund is an unregulated collective investment scheme in the United Kingdom. The promotion of Funds in the United Kingdom is restricted by Section 238 of the Financial Services and Markets Act 2000 ("FSMA"). Units may only be offered or sold by an authorised person in the United Kingdom by means of the prospectus and in accordance with section 238 of the Financial Services and Markets Act 2000, the Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes - Exemptions), Order 2001 and Chapter 3 of the Conduct of Business Sourcebook of the Financial Services Authority. Except as described above no document, including this document, issued in connection with the Units in the United Kingdom may be issued or passed on in the United Kingdom to any person, other than to persons to whom the document may otherwise lawfully be issued, unless that person is of a kind described in the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001.

For the information of investors from other jurisdictions:This Fund is not registered for public distribution in Germany or any other jurisdiction and should not be offered to German residents or citizens or persons in other jurisdictions except under circumstances that are in compliance with applicable laws and regulations. Availability of the Fund may be limited by applicable law in certain jurisdictions and none of this document and any related material may be distributed or published in any jurisdiction, except under circumstances that will result in compliance with applicable laws and regulations. Further limitations on the availability of the Fund may be imposed.


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Hedge Fund Boutique within Deutsche Bank

Dedication DB ARS has built a specialized hedge fund business We have over 130 employees located in 7 locations around world $8.9 billion in hedge fund assets under management

Experience Ten years in the hedge fund business Our senior management team of 6 professionals each has an average

of 17 years experience with the firm Senior analysts in FoF team each have an average 8 years experience

in hedge funds

Alignment of interests Compensation structure tied to performance Portion of compensation each year for senior DB ARS individuals is

comprised of DB ARS hedge funds and Deutsche Bank sharesStatistics as of April 2004 unless otherwise noted

DB ARS is the dedicated fiduciary hedge fund group within Deutsche Bank

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Why Hedge Funds?

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Why Hedge Funds?

Portfolio benefits: We believe that hedge funds should be part of every qualified investor’s diversified portfolio due to their historically: Attractive risk-adjusted returns1

Low volatility1 Low correlation with traditional asset classes1

Unconstrained investing: DB Absolute Return Strategies (DB ARS) believes the most attractive risk-adjusted returns come from unconstrained investing and it is our view that hedge funds are the investment vehicle that best capture this value

Talented managers: Hedge funds are attracting top investment talent. Investors can benefit from specialist expertise managing personal capital alongside investor funds2

1 Past performance is not an indication of future results

2 No assurance can be given that the investment objective will be met or than an investor will receive a return of all or part of his or her initial capital, and investment results may vary substantially over any given time period.

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Performance Characteristics

Performance Summary(January 1996 – December

2004)

Correlations

EACM HedgeFund Index

GlobalEquities Hedged in USD

GlobalBonds Hedged in USD

1.00

0.58

0.07

1.00

-0.18 1.00

EACM Hedge

Fund index

Global Bonds

Hedged in USD

Return

Standard Deviation

Sharpe Ratio

9.40%

4.38%

1.25

5.76%

15.08%

0.12

7.04%

3.06%

1.02

Hedge Funds vs. Global Stock and Bond Indices (January 1996- December 2004)

Global Equitie

s Hedge

d in USD

Source of raw data: BloombergPast performance is not necessarily indicative of future results. The EACM Hedge Fund index (EACM100® Index - Onshore Funds) is an equally-weighted unmanaged composite of unaudited performance information provided by 100 private investment funds chosen by EACM to represent five broad investment strategies and certain “niche” sub-strategies. Global equities represents the Morgan Stanley Capital International Hedged (MSCI World) Index, an unmanaged global equities index based on share prices of companies representative of the market structure of 22 developed market countries in North America, Europe and the Asia/Pacific Region. Global bonds represents JP Morgan Global Government Bond Hedged Index, an unmanaged index comprised of government bonds from 13 developed countries. Hedged indices seek to neutralize the effects of currency fluctuations.

Each

In

dex =

1,0

00 a

s o

f 1

/ 1/1

99

6

500

1000

1500

2000

2500

JAN-96

APR-96

AUG-96

DEC-96

APR-97

AUG-97

DEC-97

APR-98

AUG-98

DEC-98

APR-99

AUG-99

DEC-99

APR-00

AUG-00

DEC-00

APR-01

AUG-01

DEC-01

APR-02

AUG-02

DEC-02

APR-03

AUG-03

DEC-03

APR-04

AUG-04

DEC-04

EACM 100 Index Global Equities Hedged in USD Global Bonds Hedged in USD

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Hedge Funds: The Myth...

Myth: all hedge funds are “risky”, all hedge funds have:

High risk and high return More volatility than traditional investments High leverage

Past industry events have created a perception that all hedge funds

are considered “risky”

Plus a general belief that the bull stock market in the late 1980s

and 1990s would continue, which minimized interest in non-traditional

investing

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Hedge Funds: The Reality...

The truth is that:

Hedge funds were developed decades ago by managers seeking to reduce market risk

More than 6,0001 hedge funds exist today

Most are small, avoid both publicity and making noise in the markets

Many are not risky and can be an appropriate investment for conservative investors

Many are not highly leveraged and seek to profit from low-risk arbitrage strategies (not from a directional view only)

1 Source: Hedge Fund Research, Inc. as of December 31, 2003.

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Traditional Investment Funds vs. Hedge Funds

Typical Characteristics

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Typical Hedge Fund Characteristics

1) Pooled investment vehicle

2) Usually has an absolute return objective

3) Allows the manager to be active on both the long and short sides of the market and to take advantage of a wide array of financial instruments and techniques

4) Compensates the manager with performance-related fees

5) Hedge fund managers often invest a significant portion of their personal wealth in the funds they manage

6) Attracts some of the industry’s top talent

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Global Estimated Growth of Hedge Fund Assets*

$38,910$58,370

$95,720

$185,750

$256,720

$456,430$487,580

$536,060

$57,407

$91,431

$4,406

$54,847

$20,353$46,544

$99,436

$374,770$367,560

$622,304

$817,492

$167,360$167,790

$8,463

$75,084

$14,698

($1,141)

$36,918$27,861

($50,000)

$50,000

$150,000

$250,000

$350,000

$450,000

$550,000

$650,000

$750,000

$850,000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Assets

(In

$M

M)

Estimated Assets Net Asset Flow

1990 - 2003

* Source: Hedge Fund Research, Inc. as of December 31, 2003.

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Source: The Money Market Directory, Hedgeworld, AIMA, NABUCO, annual reports and Berstein analysis. All figures are estimates.

MIT 30%Yale University 27%Columbia University 22% Cornell University 20% Princeton 18%Stanford 15% University of North Carolina 14% Stanford University 12%Colgate University 12% Harvard University 12%Amherst College 10%University of Pittsburgh 10% Norfolk County Retirement System 10% Oklahoma Firefighters Retirement System 8%Virginia Retirement System 6%Northwestern Memorial Hospital 5%University of Tennessee 5%

US Institutional Allocations to Hedge Funds

As of December 31st, 2002

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* Adding the EACM Hedge Fund Index while proportionately decreasing S (Stocks: S&P 500 Index) and B (Bonds: Lehman Aggregate Bond Total Return Index) and holding C (Cash: 90-day US Libor) constant. The EACM Hedge Fund Index (EACM100- Onshore Funds) is an equally-weightd unmanaged composite of unaudited performance provided by 100 private investment funds chosen by EACM to represent five broad investment strategies and certain “niche” sub-strategies. S&P 500 is an unmanaged index of common stock prices. Lehman Aggregate Total Return Index is an unmanaged index comprised of approximately 6,000 publicly traded US bonds that is generally considered to be representative of US bond activity. Index returns assume reinvestment of dividends. Portfolio allocations shown above were created by DB ARS and are an illustration of different types of investment objectives and are not representative of actual portfolios. Allocations may fluctuate due to market conditions and are subject to change. No assurance can be given that an investor will receive a return of all or part of his or her initial capital and investment results can fluctuate substantially over any given time period.

** EACM Hedge Fund Index Inception: January 1, 1996

Source: DB Absolute Return Strategies, EACM, S&P, Lehman Brothers, Bloomberg,

Adding hedge funds to “traditional” portfolios* **

The Efficient Frontier with Hedge Funds

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Fund of Funds vs. Single Manager Funds Fund of Funds

Potential Advantages

•Speed and lower implementation costs

•Ease of diversification

•Reduced manager, market and event risk

•Access to top1 managers

•Professional management and oversight

Potential Disadvantages

•Difficult to meet precise needs

•Generally less liquidity than a single manager fund

•Additional layer of fees

Single Manager Funds

Potential Advantages

•Address highly specific needs of an investor’s portfolio

•Ability to tailor liquidity, fees and diversification to investor’s needs

•Potential for better transparency

Potential Disadvantages

•Extensive resources (time money and people) required to research, identify, evaluate and monitor portfolio

•Adequate diversification requires large financial commitment due to high minimums

1. Based on DB Absolute Return Strategies’ evaluation of the persistence of the manager’s performance, volatility of returns and quality of personnel and operations. Final selection of managers considers correlations with other managers, liquidity, potential for investment strategy and other factors

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Why Invest in a Fund of Funds?

Diversification of alpha1 sources and risk

Reduced risk and ability to generate consistent returns2

Professional research and portfolio management

Exposure to closed managers that the FoF already owns

Access to a large number of hedge fund managers with a relatively modest capital commitment

1 Performance that is attributable to manager skill, not overall market behavior.

2 No assurance can be given that the investment objective will be met or that an investor will receive a return of all or part of his or her initial capital, and investment results may vary substantially over any given time period. Source of statement: DB Absolute Return Strategies’ calculations using Evaluation Associates Capital Markets, Inc. index data (EACM100) for period January 1996 to December 2004.

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Hedge Fund UniverseA variety of sectors and strategies are available which provide differentways to allocate risk and generate potential returns

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Thank you

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The returns in this period’s report reflect the most current data at the time of printing. Some underlying managers amend their returns after we have reported these monthly numbers. These amendments may be due to repricing adjustments or receipt of more accurate data, among other things, and are reflected in the next period’s report.

Index definitionsUS Equities is represented by the S&P 500 (Standard & Poor's Composite Stock Index), an unmanaged index that tracks the performance of 500 large US companies.US Bonds is represented by the Lehman Aggregate Bond Total Return Index, an unmanaged index comprised of approximately 6,000 publicly traded US bonds that is generally considered to be representative of US bond activity. Index returns assume reinvestment of dividends.HFRI Fund of Funds Index is an equally-weighted, unmanaged index comprised of domestic and offshore hedge Fund of Funds.

“Deutsche Bank” means Deutsche Bank AG and its affiliated companies. Deutsche Bank Private Wealth Management refers to Deutsche Bank’s wealth management activities for high-net-worth clients around the world.

DB Absolute Return StrategiesDB Absolute Return Strategies represents the absolute return strategy activities of Deutsche Bank AG and certain of its subsidiaries and affiliates.For the information of investors in the United States of America:None of the interests of the Fund has been or will be registered under the US Securities Act of 1933, as amended (the ‘1933 Act’) or the securities laws of any U.S. state. Such interests may only be offered or sold directly or indirectly in the United States or to any US person in reliance on exemptions from the 1933 Act and such laws. In addition, the Fund has not been and will not be registered as an investment company under the US Investment Company Act of 1940, as amended.

For Deutsche Asset Management investors in the United KingdomIssued by Deutsche Asset Management Limited, One Appold Street London EC2A 2UU which is regulated by FSA in the conduct of its investment business in the UK. For Private Banking investors in the United Kingdom© 2005. The information herein is issued by Deutsche Bank AG London, 1 Great Winchester Street, London, EC2N 2EQ. All rights reserved. Deutsche Bank AG London is regulated by the FSA for the conduct of investment business in the United Kingdom and is a member of The London Stock Exchange.For investors in AustraliaThe Fund has not been registered with the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth) (the "Corporations Act"). Investors are not subject to protection provided under the provisions of the Corporations Act dealing with registered managed investment schemes. Any offers or interests in the Fund will only be made where such offers or interests do not require disclosure under Part 6D.2 or Part 7.9 of the Corporations Act. This means that investment in the Fund is only available to persons who satisfy the professional and sophisticated investor exemptions under s708, or the wholesale investor exemptions under s761G, of the Corporations Act. Interests in the Fund do not represent deposits or other liabilities of Deutsche Bank AG or of any other member of the Deutsche Bank AG Group. You should be aware that your holdings of securities in the Fund may be subject to investment risk, including possible delays in repayment and loss of income and principal invested. Member companies of the Deutsche Bank AG Group do not guarantee the performance of the Fund or the repayment of capital invested.

Important Information

Documents

0 STRICTLY CONFIDENTIAL DB Absolute Return Strategies An Essential Part of the Picture Chris Hancock, Vice President