2007 Media Releases

Investing In Climate Change - An Asset Management Perspective

NEW YORK: Deutsche Bank’s Asset Management division today published a white paper aimed at positioning the firm and its clients for the challenges and opportunities presented by climate change.

The paper, "Investing in Climate Change - An Asset Management Perspective", investigates climate change-related investment opportunities in a focus list of sectors and themes and offers key ideas to approach investing in climate change. It suggests that any analytical approach should be based around a thorough understanding of four themes - government regulation, carbon prices, competition and reputational factors, and new technologies.

The report was authored by the firm’s recently appointed Climate Change Strategist and co-ordinator of its Climate Change Investment Committee, Mark Fulton. His responsibilities include creating a co-ordinated strategic plan to address investment opportunities presented by climate change, working with each of the Asset Management businesses (DWS Investments, RREEF Alternative Investments, Deutsche Asset Management) to develop specific products, and co-ordinating the firm’s Climate Change Committee.

"These initiatives are designed to strengthen Asset Management’s position as a leader in the rapidly developing market for climate change products, where we have already raised nearly €6 billion in assets under management," said Kevin Parker, Global Head of Deutsche Asset Management and a Member of the Deutsche Bank Group Executive Committee. "We believe the shift away from a carbon-based economy is a megatrend that will shape the asset management industry for many years. We expect return opportunities in sectors like renewable energy, water and agribusiness will justify dedicated strategies, and we believe climate change will be an important consideration for investment decisions."

"Governments are creating investable markets, and in doing that are establishing implicit and explicit carbon prices, which in the long run will be key to determining which technologies are viable in addressing climate change," said Fulton. "Companies and investors are quickly realising that climate change is not merely a social, political or moral issue, but an economic and business issue as well. This is translating into a wave of investment and innovation."

The white paper highlights investor choices in climate change investment strategies according to their relative environment focus and risk levels. These strategies include: carbon trading, forestry, infrastructure, clean and renewable technologies, diversified climate change strategies, agribusiness, commodities and ESG (Environmental, Social and Governance) strategies.

"From our analysis we found that for at least the next decade, climate change will affect sectors and stocks as a complex and enduring economic force, which should lead to market inefficiencies and the potential for significant alpha opportunities for retail and institutional," added Fulton.

DWS Investments, the global retail asset management business of Deutsche Bank, has already established a substantial presence in climate-related strategies and continues to look for further opportunities. DWS Investments’ specific climate change strategies seek to invest in industries and companies that are involved in both the mitigation of, and the adaptation to, climate change.

DWS Global Climate Change Fund in Australia

Deutsche Bank rebranded its Australian retail asset management business as DWS Investments on 8 October 2007, in line with its global retail asset management business. As part of this initiative, the business launched some specialist global funds under the new brand name - the DWS Climate Change Fund and the DWS Global Small Companies Fund. The DWS Global Climate Change Fund invests in listed companies around the world with profitable business models based on climate change, or which have made substantial progress in seeking environmentally friendly solutions, and/or implementing them. The DWS Global Climate Change Fund is available for a minimum investment of A$25,000.

Further information on the DWS Global Climate Change Fund is available at www.dwsinvestments.com.au.

To access a copy of the white paper, Investing In Climate Change - An Asset Management Perspective, please visit www.dwsinvestments.com.au.

For further information, please call:

Camilla Anderson 02 8258 1311, 0410 518 740
Kristin Silva 0411 110 953