497 1 ss020108mega.txt SAI STICKER Supplement to the currently effective Statements of Additional Information ("SAIs") of the funds/portfolios noted below:
DWS Alternative Asset Allocation Plus Fund DWS International Value Opportunities Fund DWS U.S. Bond Index Fund DWS Balanced Fund DWS Investments VIT Funds DWS Value Builder Fund DWS California Tax-Free Income Fund DWS Equity 500 Index VIP DWS Variable Series I DWS Climate Change Fund DWS RREEF Real Estate Securities VIP DWS Bond VIP DWS Commodity Securities Fund DWS Small Cap Index VIP DWS Capital Growth VIP DWS Communications Fund DWS Japan Equity Fund DWS Global Opportunities VIP DWS Core Fixed Income Fund DWS Large Cap Value Fund DWS Growth & Income VIP DWS Core Plus Allocation Fund DWS Large Company Growth Fund DWS Health Care VIP DWS Core Plus Income Fund DWS Latin America Equity Fund DWS International VIP DWS Disciplined Long/Short Growth Fund DWS LifeCompass Income Fund DWS Variable Series II DWS Disciplined Long/Short Value Fund DWS LifeCompass Protect Fund DWS Balanced VIP DWS Disciplined Market Neutral Fund DWS LifeCompass Retirement Fund DWS Blue Chip VIP DWS Dreman Concentrated Value Fund DWS LifeCompass 2015 Fund DWS Conservative Allocation VIP DWS Dreman High Return Equity Fund DWS LifeCompass 2020 Fund DWS Core Fixed Income VIP DWS Dreman Mid Cap Value Fund DWS LifeCompass 2030 Fund DWS Davis Venture Value VIP DWS Dreman Small Cap Value Fund DWS LifeCompass 2040 Fund DWS Dreman High Return Equity VIP DWS EAFE(R) Equity Index Fund DWS Lifecycle Long Range Fund DWS Dreman Small Mid Cap Value VIP DWS Emerging Markets Equity Fund DWS Managed Municipal Bond Fund DWS Global Thematic VIP DWS Emerging Markets Fixed Income Fund DWS Massachusetts Tax-Free Fund DWS Government & Agency Securities VIP DWS Enhanced S&P 500 Index Fund DWS New York Tax-Free Income Fund DWS Growth Allocation VIP DWS Equity 500 Index Fund DWS RREEF Global Real Estate Securities Fund DWS High Income VIP DWS Equity Income Fund DWS RREEF Real Estate Securities Fund DWS International Select Equity VIP DWS Equity Partners Fund DWS Short Duration Fund DWS Janus Growth & Income VIP DWS Europe Equity Fund DWS Short-Term Municipal Bond Fund DWS Large Cap Value VIP DWS Floating Rate Plus Fund DWS Small Cap Value Fund DWS Mid Cap Growth VIP DWS Global Bond Fund DWS S&P 500 Index Fund DWS Moderate Allocation VIP DWS Global Opportunities Fund DWS Target 2008 Fund DWS Small Cap Growth VIP DWS Global Thematic Fund DWS Target 2010 Fund DWS Strategic Income VIP DWS Gold & Precious Metals Fund DWS Target 2011 Fund DWS Technology VIP DWS Health Care Fund DWS Target 2012 Fund DWS Turner Mid Cap Growth VIP DWS High Income Plus Fund DWS Target 2013 Fund DWS High Yield Tax Free Fund DWS Target 2014 Fund DWS Intermediate Tax/AMT Free Fund DWS Technology Fund DWS International Fund DWS International Select Equity Fund
The information below replaces the disclosure - applicable to portfolio managers who are employees of Deutsche Investment Management Americas Inc. (the "Advisor") and its affiliates - in the "Compensation of Portfolio Managers" section in the currently effective SAIs of the listed funds/portfolios. Portfolio managers are eligible for total compensation comprised of base salary and discretionary incentive compensation. Base Salary - Base salary generally represents a smaller percentage of portfolio managers' total compensation than discretionary incentive compensation. Base salary is linked to job function, responsibilities and financial services industry peer comparison through the use of extensive market data surveys. Discretionary Incentive Compensation - Generally, discretionary incentive compensation comprises a greater proportion of total compensation as a portfolio manager's seniority and compensation levels increase. Discretionary incentive compensation is determined based on an analysis of a number of factors, including among other things, the performance of Deutsche Bank, the performance of the Asset Management division, and the employee's individual contribution. In evaluating individual contribution, management will consider a combination of quantitative and qualitative factors. A portion of the portfolio manager's discretionary incentive compensation may be delivered in long-term equity programs (usually in the form or Deutsche Bank equity) (the "Equity Plan"). Top performing portfolio managers may earn discretionary incentive compensation that is a multiple of their base salary. o The quantitative analysis of a portfolio manager's individual performance is based on, among other factors, performance of all of the accounts managed by the portfolio manager (which includes the fund and any other accounts managed by the portfolio manager) over a one-, three-, and five-year period relative to the appropriate Morningstar and Lipper peer group universes and/or benchmark index(es) with respect to each account. Additionally, the portfolio manager's retail/institutional asset mix is weighted, as appropriate for evaluation purposes. Generally the benchmark index used is a benchmark index set forth in the fund's prospectus to which the fund's performance is compared. Additional or different appropriate peer group or benchmark indices may also be used. Primary weight is given to pre-tax portfolio performance over three-year and five-year time periods (adjusted as appropriate if the portfolio manager has served for less than five years) with lesser consideration given to portfolio performance over a one-year period. The increase or decrease in a fund's assets due to the purchase or sale of fund shares is not considered a material factor. o The qualitative analysis of a portfolio manager's individual performance is based on, among other things, the results of an annual management and internal peer review process, and management's assessment of overall portfolio manager contributions to investor relations, the investment process and overall performance (distinct from fund and other account performance). Other factors, including contributions made to the investment team, as well as adherence to Compliance Policies and Procedures, Risk Management procedures, the firm's Code of Ethics and "living the values" of the Advisor are also factors. The quantitative analysis of a portfolio manager's performance is given more weight in determining discretionary incentive compensation that the qualitative portion. Certain portfolio managers may also participate in the Equity Plan. The amount of equity awarded under the long-term equity programs is generally based on the individual's total compensation package and may comprise from 0% to 30% of the total compensation award. As discretionary incentive compensation increases, the percentage of compensation awarded in Deutsche Bank equity also increases. Portfolio managers may receive a portion of their equity compensation in the form of shares in the proprietary mutual funds that they manage or support. Please Retain This Supplement for Future Reference February 1, 2008 2