DB MarketTrac Plus

S&P 500 INDEX enhanced yield

The Model seeks to track the index benchmark of securities and derivatives that the Adviser believes, in combination, should have similar daily return characteristics as the daily return of the S&P 500 Index with an enhanced higher yield using leveraged and hedged indexed ETF's. Also, the underlying strategy is designed to reflect the total return performance that generally correspond to the price and yield (before fees and expenses) of the BofA Merrill Lynch Core Plus Fixed Rate Preferred Securities Index (the "underlying index") and the Wells Fargo® Hybrid and Preferred Securities ex Financials Index (the "Preferred Securities Index"). It also seeks to mitigate the interest rate risk of a portfolio composed of high yield corporate bonds by tracking the performance of the Citi High Yield (Treasury Rate-Hedged) Index (the "index"). The index is comprised of (a) long positions in USD-denominated high yield corporate bonds ("high yield bonds") and (b) short positions in U.S. Treasury notes or bonds ("Treasury Securities") of, in aggregate, approximate equivalent duration to the high yield bonds..


The DB MarketTrac Plus is generally non-diversified and entails certain risks, including risk associated with the use of derivatives (swap agreements, futures contracts and similar instruments), imperfect benchmark correlation, leverage and market price variance, all of which can increase volatility and decrease performance. There is no guarantee the DB MarketTrac Plus will achieve its investment objective.


To ensure appropriate allocation, the Adviser reviews the Portfolio each month and scales the asset classes up or down based on the well-researched market views.