Tax update 2015 Important information to prepare your tax return

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1 Tax update 2015 Important information to prepare your tax return Included in this edition, tax information for the Deutsche funds Tax-exempt income notes Percentage of 2015 tax-exempt income by state U.S. Government percentages Foreign tax credit table Alternative minimum tax Have your tax refund deposited directly to your Deutsche account 1. Enter the routing number on Form 1040, Line 76b Indicate the type of account on Line 76c. X Checking Savings There is no mutual fund account option on the form; please mark the Checking box. 3. Enter your depositor account number, on Line 76d. Include hyphens, but exclude any spaces. 8 7 X X X X X X X X X X X X X X X The Deutsche prefix (see description below) Your fund number [If your fund number is two digits (e.g., 06), please add leading zeros (e.g., 00006)] Your account number The Deutsche prefix 87 should be the first two digits of the number you enter. You ll find your fund and account number on your account statement. This information should be entered into the boxes on IRS Form Although this form instructs you to leave any unused boxes blank, Deutsche Asset & Wealth Management requires you to place zeros in any extra spaces before your fund and account number. 4. Verify account ownership. The account into which you can directly deposit your tax refund must be registered in your name. If you are married filing jointly, the account can be in either name or both names. If the names or tax ID numbers on the account do not match those on your tax return, the IRS may send you a check instead. Multiple accounts If you d like to split your refund into multiple accounts, instead of completing lines 76b and 76d as noted on the left, check the box on line 76a and attach IRS Form 8888 to split the direct deposit of your refund among multiple accounts. Individual retirement accounts (IRA) You can also have your refund deposited directly into a Traditional IRA, Roth IRA, or SEP-IRA. The IRA needs to be opened before a direct deposit can be made. Note that all deposits in IRAs that are received by Deutsche Asset & Wealth Management after January 1, 2016 (up through December 31, 2016) will automatically be deposited as 2016 IRA contributions, unless otherwise noted. A 2015 contribution made after December 31, 2015, must be designated in writing and postmarked by April 18, 2016 for residents of all states except Maine or Massachusetts. If you live in Maine or Massachusetts, you have until April 19, Please refer to Individual Retirement Arrangements (Publication 590) on the Internal Revenue Services Web site (irs.gov) for complete details about contribution limits. For general information concerning IRAs, visit deutschefunds.com.

2 Deutsche funds tax update Single-state tax-free funds The income distributions from Deutsche single-state tax-free funds, such as, Deutsche Massachusetts Tax-Free Fund, Deutsche New York Tax-Free Income Fund, and Deutsche California Tax-Free Income Fund are generally free from income tax in the state in which the fund invests. For the year 2015, Deutsche California Tax-Free Income Fund earned 98.32% of its income from obligations which are exempt from California state income tax with 0.14% attributable to Guam, 1.44% attributable to Puerto Rico and 0.10% attributable to the Virgin Islands. Deutsche Massachusetts Tax-Free Fund earned 95.84% of its income from obligations which are exempt from Massachusetts state income tax with 2.26% attributable to Guam, 1.68% attributable to Puerto Rico and 0.22% attributable to the Virgin Islands. Deutsche New York Tax-Free Fund earned 96.20% of its income from obligations which are exempt from New York state income tax with 0.48% attributable to Guam, 2.30% attributable to Puerto Rico and 1.02% attributable to the Virgin Islands. The amount attributable to your state may be exempt from your 2015 state income tax. In addition, tax-exempt income earned from obligations issued by U.S. territories, such as Puerto Rico, is generally exempt for state purposes. To determine the amount of income earned with respect to a particular state or territory, multiply the percentages shown in the table on page 5 by the total tax-exempt interest reported to you in Box 10 of Form 1099-DIV. If you are a resident of Utah or Indiana who has income from any of the tax-free funds shown on page 5, please consult the Tax Center on our website at deutschefunds.com for special percentages that may apply to you. Please note that individual states may have special rules which restrict pass-through of the exemption for such dividends. For more information about how your state taxes dividends, consult your tax advisor. National tax-free income funds For the Deutsche tax-free funds investing nationally, the table on page 5 shows the percentage of each fund s income dividends derived from securities issued in each state and U.S. territory. What causes a capital gain distribution? Like all bonds, municipal bonds can increase in value when interest rates decline. If selected bonds in which a tax-exempt fund invested were sold at a higher price than the price at which they were originally purchased, it would result in a taxable capital gain. While tax-exempt funds typically attempt to minimize taxable events, there are occasions when gains are taken. This occurs in cases where the portfolio team believes such action is in the best interest of the fund and its shareholders. 2 Tax Update 2015

3 Percentage of income derived from U.S. Government obligations in 2015 Mutual fund dividends derived from certain U.S. Government obligations may be exempt from state income tax depending on where you live. To calculate the amount of ordinary dividends attributable to U.S. Government obligations, multiply the percentages in the table below by the amount in Box 1a of your Form 1099-DIV. Cash Account Trust Government & Agency Securities Portfolio Cash Management Portfolio Cash Reserves Fund, Prime Series Deutsche Money Market Series Cash Management Fund Institutional Cash Reserves Fund Institutional U.S. Government obligation % 47.71% 2.32% 2.60% 2.60% 2.60% Daily Assets Fund (institutional) 0.48% Deutsche Alternative Asset 10.52% Deutsche Core Fixed Income Fund 20.65% Deutsche Core Plus Income Fund 5.96% Deutsche Enhanced Commodity Strategy Fund Deutsche Enhanced Emerging Markets Fixed Income Fund Deutsche Enhanced Global Bond Fund 11.08% 0.02% 4.16% Deutsche Equity 500 Index Fund 0.00% Deutsche Global High Income Fund 0.04% Deutsche Global Income Builder 1.34% Deutsche Global Inflation Fund 82.22% Deutsche GNMA Fund 2.51% Deutsche High Income Fund 0.04% Deutsche LifeCompass 2040 Fund 3.08% Deutsche LifeCompass Retirement Fund Deutsche Limited Maturity Quality Income Fund Deutsche Money Market Prime Series Deutsche Multi-Asset Conservative Deutsche Multi-Asset Global Deutsche Multi-Asset Moderate U.S. Government obligation % 4.74% 1.98% 0.85% 5.37% 6.84% 4.35% Deutsche S&P 500 Index Fund 0.00% Deutsche Select Alternative 5.33% Deutsche Short Duration Fund 2.85% Deutsche Strategic Government Securities Fund Deutsche Unconstrained Income Fund 3.06% 2.40% Deutsche Ultra Short Duration Fund 0.00% Deutsche Ultra-Short Investment Grade Fund 4.57% Deutsche U.S. Bond Index Fund 20.99% Deutsche Variable NAV Money Fund Investors Cash Trust Treasury Portfolio 0.00% 90.40% Note: If your fund is not referenced in this table, it had no income from U.S. Government obligations. Since tax laws vary among different cities and states, please consult your tax advisor about the specific rules in the state in which you pay your taxes. For example, certain states have threshold requirements which may restrict U.S. Government pass-through. Tax Update

4 Foreign tax credit table Depending upon your individual situation, you may need to file IRS Form 1116, which relates to income earned from foreign sources and foreign taxes paid on that income. The accompanying table contains a breakdown of the Deutsche global and international funds that earned foreign income and paid foreign taxes on that income. You are generally not required to complete IRS Form 1116 if: 1. Your only foreign source of income was passive (i.e. dividends, interest, etc.) and was reported to you on Form 1099-DIV or a similar statement; and 2. The total of all your foreign taxes on Form 1099-DIV (Box 6) and similar statements does not exceed $300 ($600 if married filing jointly). Foreign income Shareholders completing Form 1116 for tax year 2015 are not required to report foreign income earned and foreign taxes paid on a country-bycountry basis. To complete Part I of Form 1116, calculate your total income from foreign sources paid by the Fund by multiplying the amount in Box 1a of Form 1099-DIV by the percentage found in the accompanying Foreign Tax table. To complete Part II of Form 1116, your total foreign tax paid by the Fund is the amount shown in Box 6 of your Form 1099-DIV. If you have foreign source qualified dividends (Box 1b of Form 1099-DIV multiplied by the foreign income factor), you may be required to make certain adjustments to your foreign source income calculations before completing IRS Form You do not need to use these tables if you do not file IRS Form Alternative minimum tax If you are subject to the federal alternative minimum tax (AMT), a portion of the dividends from your taxfree income fund may be treated as an item of tax preference in determining your federal AMT liability. The Deutsche funds having AMT income from private activity bonds in 2015 are referenced in the table below. Next to each fund name is the applicable percentage of the 2015 income dividends that are subject to the alternative minimum tax. This amount of AMT income is reported to you in Box 11 of Form 1099-DIV. Foreign tax table for 2015 Foreign income factor Deutsche EAFE Equity Index Fund 84.71% Deutsche Emerging Markets Equity Fund % Deutsche CROCI International Fund 42.40% Deutsche International Value Fund 58.44% Deutsche funds with AMT income in 2015 Percentage of AMT Deutsche Managed Municipal Bond Fund 3.03% Deutsche Massachusetts Tax-Free Fund 3.46% Deutsche Intermediate Tax/AMT Free Fund 0.00% Deutsche Strategic High Yield Tax-Free Fund 8.22% Deutsche New York Tax-Free Income Fund 6.78% Deutsche California Tax-Free Income Fund 3.73% Deutsche Short-Term Municipal Bond Fund 15.40% Cash Account Trust Tax-Exempt Portfolio 16.75% 4 Tax Update 2015

5 Percentage of 2015 tax-exempt income by state State Deutsche Managed Municipal Bond Fund Deutsche Intermediate Tax/AMT Free Fund Deutsche Strategic High Yield Tax-Free Fund Cash Acct. Trust Tax-Exempt Portfolio Deutsche Short- Term Municipal Bond Fund Alabama 0.61% 0.70% 0.07% 0.00% 0.00% Alaska 0.23% 0.46% 0.00% 0.14% 0.51% Arizona 1.50% 3.28% 1.06% 0.33% 4.20% Arkansas 0.04% 0.00% 0.00% 0.00% 0.00% California 17.88% 11.16% 8.70% 11.22% 10.49% Colorado 5.15% 1.22% 1.92% 1.24% 0.17% Connecticut 1.21% 1.01% 3.38% 0.00% 0.00% Delaware 0.00% 0.34% 0.06% 0.15% 0.06% Dist. of Columbia 1.41% 0.44% 0.37% 0.85% 0.18% Florida 6.96% 6.04% 6.67% 1.64% 11.31% Georgia 5.43% 4.76% 3.62% 0.23% 4.89% Guam 0.01% 0.09% 1.14% 0.00% 0.00% Hawaii 0.72% 1.52% 1.70% 0.00% 0.00% Idaho 0.29% 0.00% 0.00% 5.19% 0.06% Illinois 6.88% 5.43% 6.26% 4.52% 7.30% Indiana 1.08% 1.76% 0.37% 7.49% 0.02% Iowa 0.00% 1.33% 0.69% 0.04% 0.03% Kansas 0.38% 1.02% 0.50% 0.52% 0.00% Kentucky 1.12% 0.43% 1.95% 2.42% 0.03% Louisiana 0.76% 0.21% 3.17% 0.02% 0.00% Maine 0.20% 0.67% 0.70% 0.28% 1.04% Maryland 0.12% 1.19% 1.47% 1.20% 3.07% Massachusetts 4.09% 2.72% 3.18% 0.91% 0.66% Michigan 1.66% 2.40% 2.90% 2.83% 3.11% Minnesota 0.42% 0.95% 0.00% 0.60% 0.03% Mississippi 0.60% 1.07% 1.20% 1.44% 2.03% Missouri 0.62% 0.52% 1.05% 0.04% 0.68% Montana 0.00% 0.00% 0.00% 0.00% 0.00% Nebraska 0.07% 0.49% 0.31% 0.00% 1.45% Nevada 0.84% 1.53% 1.62% 0.20% 1.07% New Hampshire 0.26% 0.12% 1.51% 0.08% 0.00% New Jersey 2.42% 2.44% 3.43% 0.00% 1.00% New Mexico 0.00% 0.16% 0.51% 0.00% 0.31% New York 7.37% 7.43% 5.20% 13.74% 5.93% North Carolina 2.08% 2.06% 0.25% 1.60% 1.35% North Dakota 0.25% 0.11% 0.17% 0.00% 0.00% Ohio 2.84% 2.22% 1.45% 4.12% 5.90% Oklahoma 0.66% 0.12% 0.55% 0.00% 0.00% Oregon 0.00% 2.26% 0.00% 1.84% 1.41% Pennsylvania 2.45% 1.77% 4.16% 2.80% 1.28% Puerto Rico 0.97% 0.00% 3.24% 4.54% 0.00% Rhode Island 0.62% 0.34% 0.09% 0.00% 0.00% South Carolina 1.83% 0.68% 1.62% 0.00% 0.23% South Dakota 0.45% 0.00% 0.54% 0.00% 0.66% Tennessee 2.03% 0.48% 2.57% 10.61% 1.41% Texas 11.11% 18.61% 15.47% 6.52% 24.57% Utah 0.01% 0.21% 0.00% 3.05% 0.44% Vermont 0.00% 0.00% 0.00% 0.00% 0.00% Virgin Islands 0.00% 0.10% 0.00% 0.00% 0.00% Virginia 0.40% 0.17% 0.80% 3.31% 1.13% Washington 2.82% 5.94% 2.60% 1.29% 1.49% West Virginia 0.00% 0.09% 0.95% 0.00% 0.00% Wisconsin 1.15% 1.95% 0.83% 2.50% 0.46% Wyoming 0.00% 0.00% 0.00% 0.04% 0.00% Other (Multi State Pools) 0.00% 0.00% 0.00% 0.46% 0.04% Total % % % % %

6 Have additional questions? Our representatives are available to assist you Monday through Friday, 7 a.m. to 7 p.m., Central time by calling (800) For additional information, refer to the 2015 Tax Guide at The Internal Revenue Service (IRS) also offers a number of helpful publications on tax-related topics. Contact the IRS directly at 800-TAX-FORM ( ) or on the Web at Any tax or legal information in this newsletter is merely a summary of our understanding and interpretation of some of the current tax laws and regulations and is not exhaustive. Consult your legal or tax counsel for advice and information concerning your particular situation. Neither Deutsche Asset & Wealth Management nor any of its representatives may give tax or legal advice. Investment products: No bank guarantee Not FDIC insured May lose value Investment products offered through DeAWM Distributors, Inc. Advisory services offered through Deutsche Investment Management Americas, Inc. Deutsche Asset & Wealth Management represents the asset management and wealth management activities conducted by Deutsche Bank AG or any of its subsidiaries. Clients will be provided Deutsche Asset & Wealth Management products or services by one or more legal entities that will be identified to clients pursuant to the contracts, agreements, offering materials or other documentation relevant to such products or services. DeAWM Distributors, Inc. 222 South Riverside Plaza Chicago, IL service@db.com Tel (800) Deutsche Bank AG. All rights reserved. CC (1/16) R