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Achieving more together

ComStage ETFsThe best ideas are often the simplest ComStage ETFs

Product Information


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Content

The best ideas are often the simplest 4

Investment aim 5

History 6

Strategic asset allocation 8

Full replication or swap 10

Dividends 11

Cost efficiency 12

Transparency 13

Creditworthiness 14

Leveraged and short ETFs 15

Savings plans 16

Flexibility 16

Buying and trading hours 17

Help in reading the website 18

Looking ahead 20

Conclusions 21

General risk factors 22

Glossary 23

Disclaimer 26


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4 | The best ideas are often the simplest

The best ideas are oftenthe simplest

Our ComStage ETFs are full of great ideas. The diversification advantages of

investment funds, the flexibility of shares, low tracking error, low costs and the

automatic inclusion of dividends through the use of total return indices this is what

ComStage ETFs offer you. Our ETFs are particularly popular with private investors

who have a long-term investment horizon. Institutional participants put their faith in

our expertise and dependability.

ComStage is the ETF platform of Commerzbank in Luxembourg. The Bank has been

marketing exchange traded funds (ETFs) under this name since September 2008.


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Investment aim | 5

Investment aimSimply replicate the index

As well as the opportunity to build up wealth

through the use of classic mutual funds or

certificates, investors are increasingly turning

to investment funds traded on the stock

market, known internationally as exchange

traded funds (ETFs). These funds aim to

replicate the performance of the chosen index

as closely as possible. The composition of the

fund is meant to ensure there is as little

deviation from this as possible. The aim of an

ETF, therefore, is not to outperform the

benchmark, but to achieve a performance

which matches that of the underlying index as

closely as possible.

DAX 30 vs. EURO STOXX 50

Performance of the indices (standardised)

Source: Reuters. As of: July 30, 2010.

Past performance is no guarantee for fu ture performance.

A long-term investment in major market

indicators such as the DAX 30 or

EURO STOXX 50 has proven to be extremely

successful in the past. Since 1988, the

DAX has recorded a rise of 8.37 per cent p. a.

while the EURO STOXX 50 recorded growth

of 6.56 per cent p. a. (as at 30 July 2010).

DAX 30 performance index

EURO STOXX 50 price index

0

200

400

600

800

1,000

1988 1990 1994 1998 2000 2002 2006 20081992 1996 2004 2010


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6 | History

HistoryIt started in the USA

ETFs are becoming increasingly popular.

The first ETFs carried the label Made in

USA and were listed on the American Stock

Exchange in New York in 1993. Institutional

investors in particular were quickly won over

by the numerous positive product

characteristics. Among these investors were

insurance companies, pension funds and

investment companies. By the end of June

2010 there were 2,252 ETFs listed throughout

the world managing assets worth around

EUR 801 billion.

ETF AuM worldwide

in EUR billion

Source: Steinbeis-Hochschule Berlin, Research Center for

Financial Services. A s of: June 30, 2010.

0

200

300

700

800

900

2002 2003 2006 20082004 2010

600

500

400

100

2005 2007 2009


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History | 7

Europe

ETFs were first introduced to Europe in

April 2000. The market developed rapidly

from the initial six ETFs managing EUR 723

mill ion to a vast range of 961 products com-

bining AuM of EUR 170.3 bill ion by the end

of June 2010.

Germany

The German ETF market continous to exhibit

very dynamic growth since its infancy. From

EUR 4.8 billion in 2002, the AuM climbed to

EUR 155.4 bill ion in June 2010. In Germany,

investors can now choose from over 776

ETFs.

Number of ETFs in Germany and Europe

Assets under Management in Germany and Europe

Source: Steinbeis-Hochschule Berlin, Research Center for Financial Services.

As of: 30 June 2010.

Source: Steinbeis-Hochschule Berlin, Research Center for Financial Services.

As of: 30 June 2010.

Number of ETFs in Germany

Number of ETFs in Europe

0

200

800

1,000

1,200

2002 2003 2006 20082004 2010

600

400

2005 2007 2009

0

40

60

140

160

200

2002 2003 2006 20082004 2010

120

100

80

20

2005 2007 2009

180

AuM in Germany

AuM in Europe


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8 | Strategic asset allocation

Strategic asset allocationDeciding on the right tactics

There are many different philosophies and

investment aims. Investors can now choose

from a wide range of investment instruments

for a large number of investment strategies.

At the start of any investment, however, a

decision has to be taken on the right asset

classes. Studies show that the performance of

a portfolio largely depends on selecting the

right asset classes and markets. Asset

allocation therefore has the biggest effect on

the investment performance.

In addition, it is necessary to correct ly assess

ones personal expectations of profit and the

risk associated with investment. Investors

should therefore take all the available financialproducts into account when planning to invest.

Importance of asset allocation in portfolio

performance

Only 10 per cent of portfolio perfor mance is not determined by

the selection of a class of investment.

Source: Steinbeis-Hochschule Berlin, Research Center forFinancial Ser vices.

Asset allocation

Choice of security

Market timing

Other

5%

2% 3%

90%


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Strategic asset allocation | 9

Investment can be managed actively or pas-

sively. Act ively managed funds, for instance,

have the objective of achieving a yield on the

investment which will exceed the performance

of a benchmark index. To do this, fund

managers analyse the markets and endeavour

to actively improve the fund by picking the

right stocks.

In the 1970s, economists, such as Nobel

laureate William Sharpe, were able to

demonstrate that, on average, fund managers

cannot outperform their benchmarks by

managing a portfolio act ively. Few fund man-

agers are capable of beating the index in the

long term after allowing for fees.

There are many different indices for investors

to choose from. In general, it is a good idea to

note whether it is a total return index

(dividend payments by companies held in the

index are taken into account, e. g. DAX 30,

MDAX), or whether it is a price index which

does not take dividend payments into account

(e. g. Dow Jones Industrial AverageSM, Nikkei

225).

Since 2008, the importance of passively

managed investment funds in Germany has

significantly increased. According to a

forecast by the Steinbeis-Hochschule Berlin,

the share of ETFs in an average portfolio wil l

increase from 8 per cent to 12 per cent.

Portion of active and passive investment

funds (Germany)


Financial Services.

Bonds

Active

investment funds

Shares

Certificates

ETFs

Remainder

9%

17%

10%

7%

33%

24%


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10 | Full replication oder swap

Full replication or swapReplicating the index precisely

Swap method

In swap ETFs, the fund assets are invested in

transferable securities, for example in shares

or bonds (collateral portfolio). In addition, a

swap is entered into with a bank. This is used

to exchange the performance of the basic

portfolio for that of the index to be replicated.

The combination of the collateral portfolio and

swap ensures that the ETF follows the indexperformance as closely as possible. The clear

advantage of swap ETFs lies in the more

accurate index tracking compared with

full-replication ETFs. This means that index

adjustments do not have to be made at fund

level, but remain the task of the swap partner

which is obliged by the swap contract to pay

the exact index performance to the fund.

In principle, there are two ways of tracking an index as closely

as possible: the swap method which is used in the vast majority of

ComStage ETFs, and the full replication method.

Full replication method

In full replication ETFs, the shares of the

index being replicated are bought according

to the weighting of the index. A ful l

replication ETF on the DAX will thus contain

exactly 30 shares whi le one on the

EUROSTOXX50 will contain exactly 50shares. Should the composition of an index

alter for instance as the result of a merger or because a company no longer satisfies

the criteria for remaining on the index, the

full replication ETF will imitate this change

by exchanging the shares concerned. As well

as an investment in the index components, a

full replication ComStage ETF may use

derivative instruments and techniques as well

to imitate the index and optimise the

portfolio. Ful l Replication ComStage ETFs

carry the acronym FR.


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Dividends | 11

DividendsThere is clearly more to be had

In the case of total return indices, any

dividend payments made will be included in

the calculation of the index and will therefore

increase the index level. On 5 August 2010,

the dividend yield related to the DAX 30 was

approx. 3.05 per cent p. a. (source: Bloomberg).

By contrast, the dividend is not included in

the calculat ion of the index where price

indices are concerned.

The advantage of ComStage ETFs: The

investor profits from taking into account any

dividend payments, and it is irrelevant

whether it is a total return index or a price

index. As a rule, the outcome is that a

ComStage ETF based on a price index willperform better than the underlying index

itself.

Historical performance of the DAX 30

in points

Source: Bloomberg. As of: 30. June 2010.

The total return index clearly outp erforms the price index because of the increase in value from the reinvestment of dividends.

Past price trends offer no guarantee of future performance.

DAX 30 total return index

DAX 30 price index

0

2,000

4,000

6,000

8,000

10,000

1988 1990 1994 1998 2000 2002 2006 20081992 1996 2004 2010

ComStage ETFs based on a total return index

bear the acronym TR (Total Return) or

TRN (Total Return Net).


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12 | Cost efficiency

In comparison with actively managed funds,

the costs of ETFs are substantially less. An

ETF fund manager does not have to deal with

analysing the fundamentals, technical

analysis or timing aspects, greatly saving on

costs.

ETFs are offered through the stock market

without a front-end load. Only the normal

transaction costs of securities transactions

are charged. As a rule, the management fee

for ETFs is as low as 0.15 per cent to 0.90 per

cent per p. a. Even lower management fees are

charged for ComStage ETFs: between 0.10

and a maximum 0.65 per cent (as at August

2010). All the important information, such asthe flat-rate fees and the current buying and

selling prices, can be found on the Internet at

www.comstage.de.

Cost efficiencyLess is more

The level of regular fees has a serious impact

on investment performance, part icularly

when it is a long-term investment. This is

clear from the example of a one-off invest-

ment of EUR 1,000 in the DAX 30. This

comparison is based on actual DAX 30

performance between 31 December 1987

and 30 July 2010.

With an investment in an actively managed

fund investing in leading German equities,

the final result in EUR 4,904.64, a llowing for

fees of 1 per cent p. a. By contrast, lower fees

of only 0.12 per cent p. a. would have led to a

higher final amount of EUR 5,983.53 if invest-

ing in a ComStage DAX

ETF.

DAX 30 ETF vs. actively managed funds in German blue chips

standardised

Source: Bloomberg. As of: 3 0 July 2010.

Past performance offers no guarantee of future perf ormance.

DAX 30 ETF

actively managed fund

0

2,000

4,000

6,000

8,000

10,000

1988 1990 1994 1998 2000 2002 2006 20081992 1996 2004 2010


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Transparency | 13

TransparencyKeeping things in perspective

The aim of ETFs is to track the performance

of a benchmark index as accurately as possi-

ble. By contrast to the classic investment

fund, they are usually managed passively.

The fund manager of an ETF therefore does

not attempt to achieve better performance

than the underlying index through active

stock picking.

In Germany, it was primarily institutional

investors who established ETFs as an

investment product. Professionals really

appreciate the high degree of transparency

they offer. Whilst in the classic mutual fund,

the portfolio balance can be accessed only at

the end of the quarter, with an ETF the

investor can access the current index compo-

sition at all times. The required information

on the current composition of the index. All

the salient information can be downloaded

via the index provider and from the website

www.comstage.de. This secures a high level

of transparency. The performance of an ETF

is dependant on the performance of the

underlying index. In addition, market makers

provide buying and selling prices for each

trading day and enable an ETF to be traded at

any time. Therefore, the investor can react

immediately to the current market situation.


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14 | Creditworthiness

CreditworthinessA solid foundation

Counterparty risk

Depending on how the market develops, the

swap may entail a claim for the ETF on the

swap partner, because in relative terms the

index may develop better than the collateral

portfolio. If, due to insolvency, the swap

partner is then unable to meet its obligations

toward the ETF, this may result in losses for

the ETF. However, to protect the investor this

so-called counterparty risk is limited to a

maximum of 10 per cent of the fund assets

because of legal requirements.

ComStage ETFs even go one step further. If,

due to the development of the market, a claim

arises on the swap partner on behalf of the

fund, this will be secured by the depositing

of securities. The value of the securities will

generally exceed the funds claims, so that

there is a situation of over-collateralisation.

Counterparty r isk in the case of ComStage

ETFs is thereby excluded as in the case of

fully replicating ETFs.


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Leveraged and short ETFs | 15

Participate in index performance, with

leverage

ComStage ETF EUROSTOXX50 DailyLeverage is based on the index of the same

name. Price changes on the EUROSTOXX50price index are augmented on a daily basis

by a leverage effect of 2 in the strategic

index, the EUROSTOXX50 Daily Leverage.A positive change in the EUROSTOXX50Daily price index leads to roughly a posit ive

performance of the EUROSTOXX50 DailyLeverage Index which is leveraged on a daily

basis by a factor of 2, and vice versa. This

relationship is not maintained over a longer

period.

Leveraged and short ETFs

or profit from falling index rates

But even during negative market phases

positive earnings can be achieved with the

ComStage ETF EUROSTOXX50 Daily ShortGR. If the investor wishes to participate in the

market trend when index levels are fal ling,

he should invest in the ComStage ETF

EUROSTOXX50 Daily Short GR. A negativemovement of the EUROSTOXX50 Index willlead on a daily basis to a positive change and

a positive movement of the EUROSTOXX50Index will lead to a negative change in the

EUROSTOXX50 Daily Short GR Index of anapproximately equal percentage. This

relationship is not maintained over a longer

period. As well as benefiting from the likeli-hood of falling levels the Short ETF can also

be used for short-term hedging of an existing

securities portfolio.

Just use the right leverage. Minus also has a positive side


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16 | Savings plans and Flexibility

Savings plansA simple step-by-step way of investing

Fund-based savings plans using ComStage ETFs make it possible to

invest even small sums inexpensively in the major national and

international indices on a regular basis. Through the systematic and

flexible building of savings with a long-term plan you create the basis

for achieving individual investment objectives. One important aspect

of fund-based savings plans is that they can be frozen, paid out or

adjusted easily at any time. The saver can therefore invest according to

his or her personal needs.

Selected discount brokers offer savings plans which are based on

ComStage ETFs. More information regarding ETF savings plans can

be obtained at the website www.comstage.de/en under the menu item

ETF Savings Plans.

FlexibilityAvailable all the time

For investors, the ability to trade during the day is of great impor-tance. In classic investment funds, the unit price for which the investor

is able to buy or redeem the units at the fund company is determined

only once a day. As a rule, orders must be given long before the price

is determined. In this respect investors cannot react flexibly to the

expectations of the market during the trading day. The required

degree of flexibility can be offered only by liquid trading through the

secondary market. Although various classic investments are also

traded at stock exchanges, the bid/offer spreads are relatively high

and liquidity can be very low. By contrast, ETFs can be traded at low

bid/offer spreads on the stock market continuously. Market makers

ensure there is liquidity and calculate what is termed an iNAV

which provides an indication of the ETF value at any time. ETFs

can therefore be traded like shares.


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Buying and trading hours | 17

Buying and trading hoursYou just need to know

ComStage ETFs can be acquired via var ious

routes. They can be traded through the stock

exchanges via ETF Best in Stuttgart and

Frankfurt (floor trading) between 9 a. m. and

8 p. m. Xetra from 9 a. m. to 5.30 p. m.), as

well as over-the-counter (OTC) direct with

Commerzbank between 8 a. m. and 10 p. m.

With orders given via the stock market,

investors have the option to arrange buy and

sell points by setting individual limits, i. e.

particular price levels, without the need for

constant monitoring. By contrast, investors

using OTC trading can conclude the intended

transact ion in real time. This way of placing

orders also dispenses with the normal bro-

kers fee charged for stock transactionsorders.

Many discount brokers and direct banks now

offer their customers the possibility of deal-

ing direct with the market maker as part of

live trading OTC via the Internet.

Commerzbank is the market maker for Com-

Stage ETFs. This service can be utilised

through the following banks:

brokerjet (direct trading) comdirect bank (live trading) Commerzbank (branches) Cortal Consors (broking/ordering off-

the-floor) DAB bank (DAB trading by the second) direktanlage.at (direct trading) e*trade (direct trading) fimatex (direct trading) flatex (direct trading) ING-DiBa (direct trading)

maxblue (direct trading) S Broker (direct trading) sino (direct trading) Swissquote (off-exchange direct trading) tradejet (direct trading)


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18 | Help in reading the website

Help in reading the websiteFind out more online

Via www.comstage.de Internet users may, for

example, use a chart tool to examine the chart

for any ETF and the associated index. It is also

possible to adjust the historical prices variably

to a second preview chart depending on

requirements.

Commerzbank provides broad, clear information for investors

about ComStage through the Exchange Traded Funds (ETF) internet

platform.

At a glance, investors find price and fund

information with important ratios, such as the

current status of the indicative net asset value

or the level of tracking error.


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Help in reading the website | 19

1 Indicative net asset value (iNAV)

The iNav gives an indication of the value of a

unit in the fund (ETF). During trading hours

it is calculated at least once per minute.

2 Net asset value (NAV)

The assets of a fund are expressed by the net

asset value of all investments. The assets are

added up once a day, the liabil ities are sub-

tracted from this figure and the total divided

by the number of units in circulation.

3 Reinvestment

In the case of reinvestment funds the profits

from securit ies (interest rates, dividends,

sales proceeds) are invested to increase

value.

4 Total expense ratio (TER)

The total expense ratio (TER) expresses the

annual costs and fees incurred each year as a

percentage of the average fund volume

5 Tracking error

The tracking error shows to what extent the

ETF differs from the benchmark (here

0.0173 per cent deviation of ComStage ETF

DAX TR from the DAX 30 level).

12

3

4

5


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20 | Looking forward

Looking forwardThoroughly convincing - about the future too!

A study conducted by the well-known Stein-

beis-Hochschule Berlin predicts the following

trends for the development of ETFs in

Germany:

As well as institutional investors, private

investors are increasingly making use of

ETFs to build their assets. The volume of ETFs listed in Germany is

likely to rise from todays (June 2010) level

of around EUR 155.4 billion to between

EUR 325 billion and EUR 419 billion in

2015. Actively managed investments wil l

lose much of the funds invested by 2015, at

the same time the share of passively

managed investment classes will riseaccordingly.

ETFs are also increasingly used for

pension provision. Funds of funds and standardised asset

management companies will increase their

allocations to ETFs. Structured products will in future be

issued in an ETF wrapper.

Forecast: Growth of the ETF market in

Germany until 2015

AuM in EUR billion


Financial Services. As of: 30 June 2010.

0

100

150

350

400

450

2015e

300

250

200

50

2005 2007 2009

Pessimistic estimateOptimistic estimate


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Conclusions | 21

ConclusionsTo the point

ETFs offer high transparency. The

composition of the indexes underlying

the ETFs is clear. During trading hours at the stock

exchange, transparent secondary market

trading at current prices is conducted. ETFs cause lower regular fees compared

with classic investment funds. In the case

of the ComStage ETFs these amount to

between 0.10 and 0.65 per cent p. a. (valid

as at August 2010).

No front-end load is charged when pur-

chasing ETFs on the secondary market.

When buying and selling ETFs on the

secondary market, the investor is charged

only the costs resulting from the differ-

ence between the buying and selling price

of the market maker (the bid/offer spread)

and the individual transaction costs

(commission) of the investors bank.


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22 | General risk factors

General risk factors

The statutory and regulatory provisions

apply to collateral provided to the company

by counterparties in connection with

securities lending, repurchase agreements

and OTC transactions in order to minimise

the counterparty risk. It is possible that

individual items of collateral may have lost

value at the time of sale or have become

totally worthless by the time of sale. The

securities underlying the index may be

traded in a different currency to the

investors own currency. In such cases,

currency losses may have a negative

impact on the investment outcome from

the investors viewpoint.

ComStage ETFs provide no capital guaran-

tee. They are linked to an index whose

development may be positive or negative.

Therefore, the value of units in the fund

can rise or fal l. The net asset value of the

units in the fund in particular may fall

below the buying price at any time, mean-

ing a capital loss in the event of sale. In

really unfortunate circumstances (for

example in the case of a loss in value

among all index components

as a result of the market situation) there

may be a total loss of the capital invested. To achieve efficient management of the

portfolio, financial instruments and tech-

niques are employed to link the fundsvalue to the performance of the index.

Careful use of these financial instruments

and techniques is generally an advantage,

but also entails risks as a result of the

special structure of derivatives and the

mechanisms found in derivative markets.


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Glossary | 23

Equity fund Equity funds largely use the investors deposit to acquire shares from listed companies.

Through the shares the fund, and so also the investors, have a direct participation in the

success of a company. An equity fund involves the purchase of shares in part icular sectors

as well as different countries.

Actively managed

funds

Investment funds whose composition the fund management follows, checks and a lters in line

with the market circumstances. Through its selection of shares, for example, the fund manage-

ment aims to achieve a higher risk-adjusted yield for the actively managed portfolio than the

risk-adjusted benchmark yield.

Asset allocation

(portfolio

structuring)

The decision made by the investor as to which assets he or she should include in the portfolio

and how they are weighted. In tactical asset allocation it is important to choose the right time.

The investor observes the market indicators and on this basis decides what weighting to allo-

cate to the individual asset groups within the port folio. If conditions change, the weighting will

also change, i. e. portfolio structuring.

Front-end load The front-end load is a one-off payment by the purchaser of fund units to the seller in return for

advice and the sale. The front-end load is not standard, but will differ depending on the fund.

For equity funds it may be as much as 5 per cent and for bond funds up to 3 per cent of the

redemption price.

Benchmark The benchmark (= measure of comparison) denotes important reference assets which function

as a comparison to the investors own investments or to the performance of investment funds.

The benchmark can often be a market index such as the DAX 30 or S&P 500 index. Active

fund management always has the aim of beating th is benchmark index. Passively managed

funds such as ETFs have the aim of performing exactly like the benchmark

Dividends Unlike the holder of fixed-income securities, the shareholder has no claim to receive a fixedrate of interest, but instead has a claim to the proportion devolving to him or her in the case of

a division of the port ion of the net income intended for distribution by the number of shares of

the company.

Exchange traded

funds (ETFs)

These comprise index-linked funds that are traded on the stock market. Unl ike actively man-

aged funds, the fund manager does not endeavour to beat the underlying benchmark index

through the optimal selection of shares. Instead, exchange traded funds replicate the respec-

tive benchmark index as exactly as possible. Consequence: the performance of the fund runs

parallel to that of the index.

Glossary


24/28

24 | Glossary

Taxation of funds Like classic investment funds, ETFs constitute special assets which are subject to the taxation

rules relating to funds. This means that the principle of transparency generally also applies to

ETFs. For example, as the so-called ordinary income of the ETF, distributed or retained

dividends are taxable at the t ime of distribution or reinvestment at the EFTs year-end in the

case of private investors who are fully l iable for taxation in Germany. There is an exception for

SWAP ETFs, because they achieve synthetic earnings and are only liable for taxation when the

fund units are sold.

GR gross return The suffix GR in the name of the ETF signifies that the ETF index is a gross return index.

Gross interest and gross dividends are al lowed for in calculating the index.

Index adjustment The companies contained in an index are reviewed at regular intervals or special occasions to

establish whether they sti ll meet the cr iteria for inclusion within the index (e. g. market value,

share liquidity). If they do not, these companies are replaced by others which do.

Index tracking Index tracking means the most accurate replication of a capital market index as possible by aportfolio of securit ies. When following an appropriate investment policy, this is based on the

concept that a specific selection of shares, for example, cannot achieve a higher yield than is

expressed by the level of the index.

Price index A price index is exclusively oriented to the price development of the index components. In

contrast to the total return index, the price markdown associated with a dividend payment is

treated like a fall in the share price. Price indexes therefore lose value compared with the total

return index when dividends are distributed.

Liquidity A liquid market al lows a rapid, effective entry and exit at the respective current market rate.

The possibility of entering and liquidating positions quick ly is provided by the large number of

market players willing to buy and sell or by market making.

Market makers The market maker has the task of providing binding prices on request and thus of being con-

stantly available as a market partner during stock exchange hours. He either sells or buys

immediately from his own holdings or seeks a counterparty for the transaction; th is often takes

just seconds.

NAV

(net asset value)

The market value of a unit of a fund equals its asset value. In funds which do not charge selling

fees, the asset value, market price and issue price are identical: they represent the price payable

by the investor for a unit of the fund. Most funds charge the asset value each day after market

close by valuing all the securities they hold at the closing rate and adding to all other assets they

hold, such as cash, etc., deducting al l liabilit ies and dividing the total (total net assets - total net

market value) by the number of unit cert ificates outstanding.


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Glossary | 25

iNAV

(indicative net

asset value)

The indicative net asset value (iNAV) is ca lculated continuously and represents the actual va lue

of an ETFs in real t ime. This is calculated on the basis of the portfolio which is published daily.

NR Net return

index

The suffix NR in the name of the ETF signifies that the ETF index is a net return index. Net

dividends/interest are included in the calculation of the index after deducting withholding tax.

TRN Total return

net index

The suffix TRN signifies that the ETF index is a total return net index. A performance

index (total return net index, TRN) measures the increase in value of capital investments.

When calculating the index, capital changes and dividend distributions are included after

deducting withholding tax.

TR Total return

index

The suffix TR in the name of the ETF signifies that the ETF index is a performance index

(total return index, TR). A performance index measures the increase in value of capital invest-

ments. When calculating the performance index, capital changes and dividend distributions

are included after deducting withholding tax.

Special assets A fund constitutes special assets, i. e. the money deposited by the investors is managed sepa-

rately from the operating assets of the fund company

Tracking error The tracking error records how much a fund is deviating from the specified benchmark.

Administrative fee Synonym for management fee. This is the payment received by the fund company for managing

a fund. The level of management fee is shown in the sales prospectus and the information

published about the fund (e. g. the website). The fee is not charged direct to the investor but to

the fund assets.

Interim profit Interim profit refers to the payments contained in the sell ing or redemption price for collected

or accrued interest that has not been dist ributed or reinvested by the fund and which thereforehas not yet become taxable for the investor. The intention is that the ComStage ETFs should

have an interim profit of zero.


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26 | Disclaimer

Disclaimer

This document is solely for distribution to customers of Commerzbank AG who have their

residence in Germany.

This flyer provides only some information on the fund units indicated here, such as the under-

lying index, key fund figures (underlying, subscription ratio) and trading information (securi-

ties ID number (WKN), stock market listing). This is insufficient information on which to base

an investment decision. Therefore, such decisions should be made solely on the basis of the

detailed and simplified sales prospectuses, and not on this overview. Furthermore, investors

are advised to consult their tax, financia l, legal or other advisors prior to acquir ing units in the

ETF described here and to clar ify any potential economic or tax consequences of acquiring

such units individually. The particular fund is not recommended, sold or advertised by the

sponsor of the index, nor does the sponsor deliver other assurances regarding the fund. In

addition, the sponsor of the index mentioned here does not provide any assurances or guaran-

tees whatsoever with regard to results achieved through use of its index and/or index level on a

particular day, or in any other respect.

Commerzbank shall not assume any responsibility relating to this publication or the informa-

tion contained therein, or for any errors or omissions, or for any losses arising from trust

placed in the information in any way, subject to the laws and provisions in force. Commerzbank

shall act as market maker for the fund units indicated, or trade with financial instruments

associated economically with fund units or derivatives. Commerzbanks trading and/or hedg-

ing activities may influence price trends in relation to transactions conducted in fund units.

Any change in the regulatory situation for ComStage ETFs may affect the investment policy and

derivative techniques used for the purpose of achieving the investment objectives. Such legal

changes may affect the value of fund units.

ComStage ETF is registered in the Grand Duchy of Luxembourg. The sales prospectuses for

ComStage ETFs feature a comprehensive description of the conditions governing the funds. Youmay obtain the detailed sales prospectus, the simplified sales prospectuses, the Articles of Asso-

ciation and the current annual and semi-annual reports free of charge from the following agents: Germany: Commerzbank AG, Kaiserstrae 16 (Kaiserplatz),

60311 Frankfurt am Main agiert als Informationsstelle; Austria: Erste Bank der sterreichischen Sparkassen AG, Graben 21,

A-1010 Wien agiert a ls Zah lstelle und steuerlicher Vertreter in sterreich; Switzerland: Commerzbank AG, Frankfurt am Main, Zurich Branch, Utoquai 55, CH-8034

Zrich agiert als Zahlstelle und Vertreter in der Schweiz und Luxembourg: Verwaltungsgesellschaft Luxemburg: Commerz Derivatives Funds Solutions

S.A., 25, rue Edward Steichen, 2540 Luxemburg.

As of: Apri l 20, 2011


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ComStage ETFs | Easy Transparent Fair

Commerzbank AG

Corporates & Markets

Equity Markets & Commodities

Mainzer Landstrasse 153

60327 Frankfurt

Tel.: 069 / 136-4 33 33

Fax: 069 /136-4 75 95

E-Mail: [email protected]

Internet: www.comstage.de/en

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