EFTA Document EFTA01459674

8 EM Equities Will the EM Giants Awaken? Disappearing Growth Premium 7.0% 6.0% -1 5.0% -, 4.0% - - 3.0% • 2.0% 1 il t 10r% -1.0% • -2.0% -3.0% 4003 1005 2006 3007 4008 1010 2011 3012 4013 1Q15 r 16° 140 120 f 100 111110 IIIIII Average EM Growth Premium (LHS) (AVG) Average EM Growth Premium (LHS) MSCI EM (local) - S&P 500 Index (RHS) Emerging market equities have benefitted from superior economic growth over the developed markets in recent years. However, that growth premium has been eliminated and has resulted in emerging market equities lagging developed market equities. Footnotes: Data as of 3O15. Booms: Bloomberg Finance LP, FabtSet, Detilsche Rank Wealth Managernerd Deutsche Bank Wealth Manaoement 80 ',40 pa Earnings Growth Premium Gone 500 400 300 200 100 0 -100 -200 Peak EM Earnings '96 '97 '98 '99 DO '01 '02 '03 D4 '05 '06 '07 D8 '09 '10 '1 '12 '13 '14 '15 - (INDEX) S&P 500 EPS (LTM) ua MSCI EM USD PM. • S&P 500 Price) - (INDEX) MSCI EM EPS (LTM) Peak U.S. Earnings Emerging markets experienced several years of an earnings growth premium over the U.S. However, the collapse in commodity prices and lackluster economic growth in EM has resulted in the earnings growth premium collapsing. As a result, the U.S. has been outperforming the emerging markets. Foolnotes: Data as of Deconber 31. 2015 Sourte FactSet, Clealsche Sank Wealth Management 22 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL PROT1 DB-SDNY-0 120283 PROT0