2003 Media Releases

Deutsche Bank today announces the launch of 3 new instalment warrants. The Growth Basket and Defensive Basket Strategy Instalments are designed to offer investors leverage into a diversified portfolio of shares based on specific investment strategies, offering the potential to outperform the market. The Gold Basket Instalment gives investors leveraged exposure to gold through a diversified portfolio of gold shares, a metal which is currently experiencing increased investor demand and superior market performance.

“We have designed these basket instalments to provide a price and liquidity advantage for our clients. By purchasing these stocks as a basket we are able to pass through a 7% price benefit to investors on our Growth and Defensive Basket Instalments as compared to the price investors would pay for buying individual instalments over each stock. This is because by purchasing instalments as a basket, volatility levels are lower which means lower costs for the investor. Hence investors are immediately 7% better off than if they had purchased the individual instalments over the underlyings.” said David Sarkis, Head of Global Equity Derivatives Structured Products and Trading, Deutsche Bank.

Growth Strategy Instalment Warrants

The Growth Strategy Instalments aim to provide investors with leverage into stocks that have the potential to outperform within an appreciating or rising equity market. The stocks have been identified, by Deutsche Bank strategists, as having either a combination of strong or accelerating earnings growth, or as a company that is likely to have a higher risk growth base.

Commenting on these new products, Pia Cooke, Sales & Trading, Equity Derivatives, Deutsche Bank said, “The Growth Strategy Instalments are designed for those investors who are more bullish about the equity market, and believe the market may be in a recovery phase. Our strategists believe the stocks included in this basket all offer greater potential for outperformance if the market rises, and provide an interesting opportunity for investors”.

Defensive Strategy Instalment Warrants

Defensive strategies tend to represent a relatively risk averse investment style, and are a popular strategy for investors during periods of market uncertainty. The stocks within the Defensive Strategy Instalment have been identified by Deutsche Bank strategists as having a combination of high income, capital preservation and low underlying risk.

Commenting on these instalments, Pia Cooke said, “Investors who are still uncertain about the market direction will be interested in these instalments. Defensive strategies typically generate the strongest relative returns in a flat or falling market and/or when investor uncertainty and risk aversion is high. By investing in these instalments, investors can continue to generate high levels of income/yield, whilst potentially preserving their capital base. A wise strategy if you feel uncertain about the equity market’s recovery”.

Gold Basket Instalment Warrants

Deutsche Bank’s Gold Basket Instalments offer investors access to a basket of four gold stocks, giving them leveraged exposure to gold and offering good levels of liquidity in a basket of fairly illiquid individual stocks. The Gold Basket Instalments also present the opportunity for investors to diversify into an asset class which is becoming increasingly attractive.

David Sarkis says, “The price of gold has broken through an important technical resistance level of $US374 / oz, which Deutsche Bank analysts see as the potential start of another rising cycle. This, combined with increased investor demand for gold, US Dollar instability, decreased hedging by producers and reduced mine supply could set the stage for a further rise in the gold price beyond $US400/oz and as high as $US450 over the coming 12-18 months.”

Tom Murphy, Head of Investment Research, Private Wealth Management, Deutsche Bank, believes “The market environment at present is unusual, because sophisticated investors are buying gold and equities at the same time. Traditionally, gold investment has been the destination of capital flight from equities. Clearly, gold exposure has now become an insurance vehicle that effectively enables investors to take larger positions in shares, while not ignoring the possibility of future market shocks”.

He further comments, “Gold, like inflation-linked bonds, offers investors an effective instrument to diversify away some of the portfolio risk of an unexpected inflation spike. Even investors who are not particularly bullish on gold per se can benefit from its investment characteristics in their portfolios”

David Sarkis further points out that, “The gold basket offers a 5% price advantage, relative to individual instalments, due to lower volatility levels on the basket, and in addition provides liquidity to offshore stocks that typically have wide spreads and are difficult to trade locally. This is an excellent example of Deutsche Bank using it's offshore access and risk management capability to add value to its clients making these products well priced for a “set and forget” portfolio strategy.”

For a copy of the Offering Circular or for further information, please see Deutsche Bank’s warrants website at #

Further information

Sue Mathews, Communications & Marketing
(61 2) 9258 2792

Notes to Editors

Growth Strategy Instalment Warrants

ASX Code: GRWIDH Loan Amount $245

Defensive Instalment Warrants

ASX Code: DFEIDH Loan Amount $230

Gold Basket Instalment Warrants

ASX Code: GUSIDH Loan Amount $60

Deutsche Instalments may be purchased or subscribed for. Subscription may only be made on an application form attached to the Offering Circular.

These warrants have an annual 12 month roll over at 15 June. They are Highly Leveraged Deutsche Instalments with a loan amount of between 80% and 100% of the price of the underlying security at the time the loan amount is determined.