N-CSRS 1 sr22912int.htm DWS INTERNATIONAL FUND sr22912int.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549

FORM N-CSRS

Investment Company Act file number:  811-00642

 
DWS International Fund, Inc.
 (Exact Name of Registrant as Specified in Charter)

345 Park Avenue
New York, NY 10154-0004
 (Address of Principal Executive Offices) (Zip Code)

Registrant’s Telephone Number, including Area Code: (212) 250-3220

Paul Schubert
60 Wall Street
New York, NY 10005
 (Name and Address of Agent for Service)

Date of fiscal year end:
8/31
   
Date of reporting period:
2/29/2012

ITEM 1.
REPORT TO STOCKHOLDERS
   
 
FEBRUARY 29, 2012
Semiannual Report
to Shareholders
 
DWS International Fund
 
 
Contents
4 Performance Summary
7 Portfolio Summary
9 Investment Portfolio
14 Statement of Assets and Liabilities
16 Statement of Operations
17 Statement of Changes in Net Assets
18 Financial Highlights
23 Notes to Financial Statements
33 Information About Your Fund's Expenses
35 Investment Management Agreement Approval
39 Summary of Management Fee Evaluation by Independent Fee Consultant
43 Account Management Resources
45 Privacy Statement
 
This report must be preceded or accompanied by a prospectus. To obtain a summary prospectus, if available, or prospectus for any of our funds, refer to the Account Management Resources information provided in the back of this booklet. We advise you to consider the fund's objectives, risks, charges and expenses carefully before investing. The summary prospectus and prospectus contain this and other important information about the fund. Please read the prospectus carefully before you invest.
 
Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. Investing in foreign securities, particularly those of emerging markets, presents certain risks, such as currency fluctuations, political and economic changes, and market risks. The fund may lend securities to approved institutions. Stocks may decline in value. See the prospectus for details.
 
DWS Investments is part of Deutsche Bank's Asset Management division and, within the U.S., represents the retail asset management activities of Deutsche Bank AG, Deutsche Bank Trust Company Americas, Deutsche Investment Management Americas Inc. and DWS Trust Company.
 
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
 
Performance Summary February 29, 2012 (Unaudited)
Average Annual Total Returns as of 2/29/12
Unadjusted for Sales Charge
6-Month‡
1-Year
3-Year
5-Year
10-Year
Class A
3.83%
-10.11%
16.13%
-5.69%
3.36%
Class B
3.23%
-10.85%
15.21%
-6.43%
2.48%
Class C
3.41%
-10.84%
15.24%
-6.42%
2.54%
Adjusted for the Maximum Sales Charge
          
Class A (max 5.75% load)
-2.14%
-15.28%
13.86%
-6.80%
2.75%
Class B (max 4.00% CDSC)
-0.77%
-13.48%
14.70%
-6.61%
2.48%
Class C (max 1.00% CDSC)
2.41%
-10.84%
15.24%
-6.42%
2.54%
No Sales Charges
          
Class S
4.00%
-9.84%
16.50%
-5.39%
3.69%
Institutional Class
4.08%
-9.73%
16.65%
-5.27%
3.84%
MSCI EAFE Index+
4.13%
-7.45%
19.74%
-2.93%
6.31%
 
‡ Total returns shown for periods less than one year are not annualized.
 
Average Annual Total Returns as of 12/31/11 (most recent calendar quarter end)
Unadjusted for Sales Charge
1-Year
3-Year
5-Year
10-Year
Class A
-16.71%
4.14%
-7.77%
1.88%
Class B
-17.37%
3.32%
-8.50%
1.01%
Class C
-17.35%
3.35%
-8.47%
1.07%
Adjusted for the Maximum Sales Charge
        
Class A (max 5.75% load)
-21.50%
2.10%
-8.86%
1.27%
Class B (max 4.00% CDSC)
-19.81%
2.69%
-8.68%
1.01%
Class C (max 1.00% CDSC)
-17.35%
3.35%
-8.47%
1.07%
No Sales Charges
        
Class S
-16.44%
4.48%
-7.48%
2.20%
Institutional Class
-16.36%
4.60%
-7.36%
2.36%
MSCI EAFE Index+
-12.14%
7.65%
-4.72%
4.67%
 
Performance in the Average Annual Total Returns table above and the Growth of an Assumed $10,000 Investment line graph that follows is historical and does not guarantee future results. Investment return and principal fluctuate so your shares may be worth more or less when redeemed. Current performance may differ from performance data shown. Please visit www.dws-investments.com for the Fund's most recent month-end performance. Fund performance includes reinvestment of all distributions. Unadjusted returns do not reflect sales charges and would have been lower if they had.
 
The gross expense ratios of the Fund, as stated in the fee table of the prospectus dated December 20, 2011 are 1.23%, 2.08%, 2.01%, 0.92% and 0.80% for Class A, Class B, Class C, Class S and Institutional Class shares, respectively, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report.
 
The Fund may charge a 2% fee for redemptions of shares held less than 15 days.
 
Index returns do not reflect any fees or expenses and it is not possible to invest directly into an index.
 
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
 
Growth of an Assumed $10,000 Investment (Adjusted for Maximum Sales Charge)
Yearly periods ended February 29
 
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.75%. This results in a net initial investment of $9,425.
 
The growth of $10,000 is cumulative.
 
Performance of other share classes will vary based on the sales charges and the fee structure of those classes.
 
+ The Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East (EAFE) Index is an unmanaged, capitalization-weighted index that tracks international stock performance in the 21 developed markets of Europe, Australasia and the Far East. The index is calculated using closing local market prices and translates into U.S. dollars using the London close foreign exchange rates.
 
Net Asset Value and Distribution Information
  
   
Class A
    
Class B
    
Class C
    
Class S
    
Institutional Class
  
Net Asset Value:
2/29/12
   $ 41.01     $ 40.69     $ 40.66     $ 41.19     $ 41.01  
8/31/11
   $ 40.49     $ 40.05     $ 39.99     $ 40.73     $ 40.57  
Distribution Information:
Six Months as of 2/29/12:
Income Dividends
   $ .93     $ .63     $ .62     $ 1.05     $ 1.09  
 

Morningstar Rankings — Foreign Large Blend Funds Category as of 2/29/12
Period
Rank
  
Number of Fund Classes Tracked
Percentile Ranking (%)
Class A
1-Year
665
of
803
82
3-Year
643
of
731
88
5-Year
511
of
555
92
10-Year
288
of
320
90
Class B
1-Year
708
of
803
88
3-Year
678
of
731
92
5-Year
527
of
555
94
10-Year
311
of
320
97
Class C
1-Year
707
of
803
88
3-Year
677
of
731
92
5-Year
526
of
555
94
10-Year
309
of
320
96
Class S
1-Year
653
of
803
81
3-Year
634
of
731
86
5-Year
497
of
555
89
10-Year
276
of
320
86
Institutional Class
1-Year
647
of
803
80
3-Year
622
of
731
85
5-Year
494
of
555
89
10-Year
274
of
320
85
 
Source: Morningstar, Inc. Rankings are historical and do not guarantee future results. Rankings are based on total return unadjusted for sales charges with distributions reinvested. If sales charges had been included, rankings might have been less favorable.
 
Portfolio Summary (Unaudited)
 
Ten Largest Equity Holdings at February 29, 2012 (37.3% of Net Assets)
Country
Percent
1. GlaxoSmithKline PLC
Develops, manufactures and markets vaccines and medicines
United Kingdom
6.8%
2. Dassault Systemes SA
Designer, manufacturer and engineer of software products
France
5.3%
3. National Australia Bank Ltd.
An international banking group
Australia
4.3%
4. BOC Hong Kong (Holdings) Ltd.
Provider of financial products and services to retail and corporate customers
Hong Kong
3.6%
5. Snam Rete Gas SpA
Owns and operates Italy's natural gas distribution network
Italy
3.5%
6. TeliaSonera AB
Offers telecommunication services
Sweden
3.4%
7. Zurich Financial Services AG
Issuer of multi-line insurance
Switzerland
3.0%
8. European Aeronautic Defence & Space Co. NV
Manufacturer of military airplanes and equipment
Netherlands
2.6%
9. Royal Dutch Shell PLC
Explores, produces and refines petroleum
Netherlands
2.4%
10. Renault SA
Designs, produces and markets passenger cars
France
2.4%
Portfolio holdings are subject to change.
For more complete details about the fund's investment portfolio, see page 9. A quarterly Fact Sheet is available upon request. Please see the Account Management Resources section on page 43 for contact information.
 
Investment Portfolio as of February 29, 2012 (Unaudited)
   
Shares
    
Value ($)
  
       
Common Stocks 96.0%
  
Australia 9.0%
  
Australia & New Zealand Banking Group Ltd.
     321,000       7,474,853  
BHP Billiton Ltd.
     222,000       8,526,357  
National Australia Bank Ltd.
     1,335,501       33,654,724  
Newcrest Mining Ltd.
     369,223       13,082,733  
Wesfarmers Ltd.
     138,667       4,303,752  
Westpac Banking Corp.
     163,000       3,626,795  
(Cost $73,786,090)
       70,669,214  
Denmark 0.5%
  
Carlsberg AS "B" (Cost $5,230,893)
     48,631       3,812,382  
Finland 2.4%
  
Fortum Oyj
     635,000       15,760,670  
Nokia Corp.
     550,000       2,896,730  
(Cost $18,656,719)
       18,657,400  
France 11.3%
  
Aeroports de Paris
     53,000       4,187,707  
AXA SA
     674,633       10,844,305  
Dassault Systemes SA
     504,000       41,866,737  
Klepierre (REIT)
     123,000       3,902,228  
Renault SA
     360,000       19,036,831  
Schneider Electric SA
     115,274       7,836,150  
Societe Generale
     40,873       1,314,658  
(Cost $90,346,041)
       88,988,616  
Germany 6.9%
  
Adidas AG
     218,000       17,110,544  
Continental AG*
     100,000       9,097,749  
Hannover Rueckversicherung AG (Registered)
     99,000       5,491,789  
Hochtief AG
     26,000       1,814,364  
Lanxess AG
     137,600       10,283,543  
SAP AG
     158,372       10,687,523  
(Cost $55,016,984)
       54,485,512  
Hong Kong 3.6%
  
BOC Hong Kong (Holdings) Ltd. (Cost $29,174,767)
     10,120,000       28,139,923  
Israel 1.3%
  
Bezeq Israeli Telecommunication Corp., Ltd. (Cost $12,039,525)
     6,100,000       10,037,452  
Italy 3.6%
  
Snam Rete Gas SpA (Cost $31,614,102)
     5,790,000       28,006,067  
Japan 21.2%
  
Bridgestone Corp.
     125,000       3,013,919  
Canon, Inc.
     322,000       14,586,014  
Fast Retailing Co., Ltd. (a)
     82,800       17,162,133  
Honda Motor Co., Ltd.
     332,272       12,680,913  
INPEX Corp.
     1,090       7,695,994  
Kawasaki Kisen Kaisha Ltd.
     1,470,000       3,102,009  
Kyushu Electric Power Co., Inc.
     276,000       4,059,334  
Mitsubishi Corp.
     562,724       13,789,827  
Mitsubishi Electric Corp.
     796,000       7,155,639  
Mitsubishi Estate Co., Ltd.
     684,000       12,393,899  
Mitsubishi Heavy Industries Ltd.
     370,000       1,733,763  
Mitsubishi Tanabe Pharma Corp.
     657,000       8,979,602  
Mitsui & Co., Ltd.
     353,000       6,090,678  
Mitsui O.S.K Lines Ltd.
     1,524,625       6,958,221  
Mizuho Financial Group, Inc.
     2,500,000       4,187,989  
Nabtesco Corp.
     198,000       4,591,297  
Nidec Corp.
     153,000       14,454,062  
Nippon Electric Glass Co., Ltd.
     340,000       3,186,461  
Resona Holdings, Inc.
     1,323,000       6,324,644  
Sony Corp.
     184,000       3,934,839  
Sumitomo Mitsui Financial Group, Inc.
     107,000       3,634,476  
Sumitomo Realty & Development Co., Ltd.
     32,000       748,114  
Terumo Corp.
     89,000       4,293,586  
Tokyo Electron Ltd.
     25,000       1,385,835  
Yamada Denki Co., Ltd.
     17,000       1,106,070  
(Cost $175,170,277)
       167,249,318  
Netherlands 8.2%
  
Corio NV (REIT)
     159,000       7,628,341  
European Aeronautic Defence & Space Co. NV
     560,000       20,344,400  
Heineken NV
     200,500       10,571,871  
ING Groep NV (CVA)*
     760,779       6,723,820  
Royal Dutch Shell PLC "B"
     515,000       19,111,484  
(Cost $64,234,726)
       64,379,916  
Norway 1.5%
  
DnB NOR ASA (Cost $12,847,232)
     894,000       11,453,180  
Portugal 0.6%
  
Banco Comercial Portugues SA (Registered)* (a) (Cost $5,028,635)
     21,900,000       4,951,981  
Singapore 4.2%
  
Capitaland Ltd.
     1,990,000       4,866,280  
CapitaMall Trust (REIT)
     4,790,000       6,867,197  
DBS Group Holdings Ltd.
     655,000       7,389,188  
Golden Agri-Resources Ltd.
     24,390,000       14,158,759  
(Cost $31,025,223)
       33,281,424  
Spain 1.0%
  
Red Electrica Corporacion SA (Cost $10,138,615)
     157,000       7,932,076  
Sweden 3.9%
  
Investor AB "B"
     192,000       4,268,522  
TeliaSonera AB
     3,654,000       26,633,703  
(Cost $33,151,518)
       30,902,225  
Switzerland 4.4%
  
Nestle SA (Registered)
     149,000       9,105,329  
Syngenta AG (Registered)*
     6,900       2,252,473  
Zurich Financial Services AG*
     93,900       23,630,373  
(Cost $37,229,486)
       34,988,175  
United Kingdom 12.4%
  
AMEC PLC
     65,460       1,151,416  
Anglo American PLC
     68,000       2,865,352  
BHP Billiton PLC
     39,000       1,260,808  
BP PLC
     892,000       7,001,057  
Centrica PLC
     950,000       4,589,520  
GlaxoSmithKline PLC
     2,419,000       53,344,408  
Inmarsat PLC
     1,070,000       8,150,754  
Old Mutual PLC
     6,057,941       15,323,740  
Tullow Oil PLC
     162,000       3,800,776  
(Cost $93,987,217)
       97,487,831  
Total Common Stocks (Cost $778,678,050)
       755,422,692  
   
Preferred Stocks 1.0%
  
Germany
  
Porsche Automobil Holding SE
     62,000       4,035,369  
Volkswagen AG
     20,300       3,795,261  
Total Preferred Stocks (Cost $8,096,860)
       7,830,630  
   
Securities Lending Collateral 0.5%
  
Daily Assets Fund Institutional, 0.26% (b) (c) (Cost $4,193,780)
     4,193,780       4,193,780  
   
Cash Equivalents 2.2%
  
Central Cash Management Fund, 0.1% (b) (Cost $17,626,621)
     17,626,621       17,626,621  
 

   
% of Net Assets
    
Value ($)
  
       
Total Investment Portfolio (Cost $808,595,311)+
     99.7       785,073,723  
Other Assets and Liabilities, Net
     0.3       2,067,611  
Net Assets
     100.0       787,141,334  
 
* Non-income producing security.
 
+ The cost for federal income tax purposes was $808,830,287. At February 29, 2012, net unrealized depreciation for all securities based on tax cost was $23,756,564. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $31,405,095 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $55,161,659.
 
(a) All or a portion of these securities were on loan (see Notes to Financial Statements). The value of all securities loaned at February 29, 2012 amounted to $3,843,924, which is 0.5% of net assets.
 
(b) Affiliated fund managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end.
 
(c) Represents collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates.
 
CVA: Certificaten Van Aandelen
 
REIT: Real Estate Investment Trust
 
At February 29, 2012, open futures contracts purchased were as follows:
Futures
Currency
Expiration Date
  
Contracts
    
Notional Value ($)
    
Unrealized Appreciation ($)
  
S&P 500 E-Mini Index
USD
3/16/2012
     390       26,605,800       1,983,438  
 

Currency Abbreviation
USD United States Dollar
 
For information on the Fund's policy and additional disclosures regarding futures contracts, please refer to the Derivatives section of Note A in the accompanying Notes to Financial Statements.
 
Fair Value Measurements
 
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
 
The following is a summary of the inputs used as of February 29, 2012 in valuing the Fund's investments. For information on the Fund's policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Financial Statements.
 
Assets
  
Level 1
    
Level 2
    
Level 3
    
Total
  
   
Common Stocks and Preferred Stock (d)
  
Australia
   $ —     $ 70,669,214     $ —     $ 70,669,214  
Denmark
     —       3,812,382       —       3,812,382  
Finland
     —       18,657,400       —       18,657,400  
France
     —       88,988,616       —       88,988,616  
Germany
     —       62,316,142       —       62,316,142  
Hong Kong
     —       28,139,923       —       28,139,923  
Israel
     —       10,037,452       —       10,037,452  
Italy
     —       28,006,067       —       28,006,067  
Japan
     —       167,249,318       —       167,249,318  
Netherlands
     —       64,379,916       —       64,379,916  
Norway
     —       11,453,180       —       11,453,180  
Portugal
     —       4,951,981       —       4,951,981  
Singapore
     —       33,281,424       —       33,281,424  
Spain
     —       7,932,076       —       7,932,076  
Sweden
     —       30,902,225       —       30,902,225  
Switzerland
     —       34,988,175       —       34,988,175  
United Kingdom
     —       97,487,831       —       97,487,831  
Short-Term Investments (d)
     21,820,401       —       —       21,820,401  
Derivatives (e)
     1,983,438       —       —       1,983,438  
Total
   $ 23,803,839     $ 763,253,322     $ —     $ 787,057,161  
 
There have been no transfers between Level 1 and Level 2 fair value measurements during the period ended February 29, 2012.
 
(d) See Investment Portfolio for additional detailed categorizations.
 
(e) Derivatives include unrealized appreciation (depreciation) on futures contracts.
 
The accompanying notes are an integral part of the financial statements.
 
Statement of Assets and Liabilities
as of February 29, 2012 (Unaudited)
  
Assets
  
Investments:
Investments in non-affiliated securities, at value (cost $786,774,910) — including $3,843,924 of securities loaned
   $ 763,253,322  
Investment in Central Cash Management Fund (cost $17,626,621)
     17,626,621  
Investment in Daily Assets Fund Institutional (cost $4,193,780)*
     4,193,780  
Total investments in securities, at value (cost $808,595,311)
     785,073,723  
Cash
     563,790  
Foreign currency, at value (cost $4,256,474)
     4,135,274  
Receivable for Fund shares sold
     53,222  
Dividends receivable
     1,782,214  
Interest receivable
     65,218  
Receivable for variation margin on futures contracts
     1,423,500  
Foreign taxes recoverable
     743,493  
Other assets
     44,544  
Total assets
     793,884,978  
Liabilities
  
Payable upon return of securities loaned
     4,193,780  
Payable for Fund shares redeemed
     1,557,418  
Accrued management fee
     349,974  
Other accrued expenses and payables
     642,472  
Total liabilities
     6,743,644  
Net assets, at value
   $ 787,141,334  
Net Assets Consist of
  
Distributions in excess of net investment income
     (3,088,121 )
Net unrealized appreciation (depreciation) on:
Investments
     (23,521,588 )
Futures
     1,983,438  
Foreign currency
     (40,012 )
Accumulated net realized gain (loss)
     (670,089,391 )
Paid-in capital
     1,481,897,008  
Net assets, at value
   $ 787,141,334  
 
* Represents collateral on securities loaned.
 
The accompanying notes are an integral part of the financial statements.
 
Statement of Assets and Liabilities as of February 29, 2012 (Unaudited) (continued)
  
Net Asset Value
  
Class A
Net Asset Value and redemption price(a) per share ($102,030,777 ÷ 2,487,996 shares of capital stock outstanding, $.01 par value, 100,000,000 shares authorized)
   $ 41.01  
Maximum offering price per share (100 ÷ 94.25 of $41.01)
   $ 43.51  
Class B
Net Asset Value, offering and redemption price(a) (subject to contingent deferred sales charge) per share ($2,138,551 ÷ 52,560 shares of capital stock outstanding, $.01 par value, 50,000,000 shares authorized)
   $ 40.69  
Class C
Net Asset Value, offering and redemption price(a) (subject to contingent deferred sales charge) per share ($8,721,646 ÷ 214,481 shares of capital stock outstanding, $.01 par value, 20,000,000 shares authorized)
   $ 40.66  
Class S
Net Asset Value, offering and redemption price(a) per share ($660,421,600 ÷ 16,033,681 shares of capital stock outstanding, $.01 par value, 200,595,597 shares authorized)
   $ 41.19  
Institutional Class
Net Asset Value, offering and redemption price(a) per share ($13,828,760 ÷ 337,212 shares of capital stock outstanding, $.01 par value, 50,000,000 shares authorized)
   $ 41.01  
 
(a) Redemption price per share for shares held less than 15 days is equal to net asset value less a 2% redemption fee.
 
The accompanying notes are an integral part of the financial statements.
 
Statement of Operations
for the six months ended February 29, 2012 (Unaudited)
  
Investment Income
  
Income:
Dividends (net of foreign taxes withheld of $328,579)
   $ 8,722,704  
Interest
     35,345  
Income distributions — Central Cash Management Fund
     9,474  
Securities lending income, including income from Daily Assets Fund Institutional, net of borrower rebates
     249,858  
Total income
     9,017,381  
Expenses:
Management fee
     2,135,453  
Administration fee
     377,956  
Services to shareholders
     904,865  
Distribution and service fees
     174,199  
Custodian fee
     88,134  
Professional fees
     73,500  
Reports to shareholders
     55,558  
Registration fees
     30,670  
Directors' fees and expenses
     15,478  
Other
     37,927  
Total expenses
     3,893,740  
Net investment income
     5,123,641  
Realized and Unrealized Gain (Loss)
  
Net realized gain (loss) from:
Investments
     (83,157,876 )
Futures
     1,792,924  
Foreign currency
     (126,237 )
Payment by affiliate (see Note G)
     23,487  
      (81,467,702 )
Change in net unrealized appreciation (depreciation) on:
Investments
     100,057,561  
Futures
     3,220,163  
Foreign currency
     (74,572 )
      103,203,152  
Net gain (loss)
     21,735,450  
Net increase (decrease) in net assets resulting from operations
   $ 26,859,091  
 
The accompanying notes are an integral part of the financial statements.
 
Statement of Changes in Net Assets
Increase (Decrease) in Net Assets
  
Six Months Ended February 29, 2012 (Unaudited)
    
Year Ended August 31, 2011
  
Operations:
Net investment income (loss)
   $ 5,123,641     $ 17,531,684  
Net realized gain (loss)
     (81,467,702 )     205,080,297  
Change in net unrealized appreciation (depreciation)
     103,203,152       (157,133,860 )
Net increase (decrease) in net assets resulting from operations
     26,859,091       65,478,121  
Distributions to shareholders from:
Net investment income:
Class A
     (2,344,131 )     (2,952,727 )
Class B
     (36,346 )     (58,130 )
Class C
     (138,785 )     (172,654 )
Class S
     (17,019,869 )     (20,863,169 )
Institutional Class
     (446,961 )     (936,616 )
Total distributions
     (19,986,092 )     (24,983,296 )
Fund share transactions:
Proceeds from shares sold
     12,730,200       36,086,918  
Reinvestment of distributions
     18,267,358       22,861,238  
Payments for shares redeemed
     (78,686,104 )     (228,154,975 )
Redemption fees
     752       9,453  
Net increase (decrease) in net assets from Fund share transactions
     (47,687,794 )     (169,197,366 )
Increase from regulatory settlements (see Note H)
     —       1,705,420  
Increase (decrease) in net assets
     (40,814,795 )     (126,997,121 )
Net assets at beginning of period
     827,956,129       954,953,250  
Net assets at end of period (including distributions in excess of net investment income and undistributed net investment income of $3,088,121 and $11,774,330, respectively)
   $ 787,141,334     $ 827,956,129  
 
The accompanying notes are an integral part of the financial statements.
 
Financial Highlights
       
Years Ended August 31,
  
Class A
 
  
Six Months Ended 2/29/12 (Unaudited)
2011
  
2010
    
2009
    
2008
    
2007
  
Selected Per Share Data
  
Net asset value, beginning of period
   $ 40.49     $ 39.41     $ 42.89     $ 56.22     $ 67.17     $ 57.01  
Income (loss) from investment operations:
Net investment income (loss)a
     .21       .67       .45       .62       1.29 d     .77 d
Net realized and unrealized gain (loss)
     1.24       1.31       (3.65 )     (12.54 )     (11.62 )     11.05  
Total from investment operations
     1.45       1.98       (3.20 )     (11.92 )     (10.33 )     11.82  
Less distributions from:
Net investment income
     (.93 )     (.98 )     (.70 )     (1.41 )     (.62 )     (1.66 )
Increase from regulatory settlements
     —       .08 f     .42 f     —       —       —  
Redemption fees
     .00 ***     .00 ***     .00 ***     .00 ***     .00 ***     .00 ***
Net asset value, end of period
   $ 41.01     $ 40.49     $ 39.41     $ 42.89     $ 56.22     $ 67.17  
Total Return (%)b
     3.83 **     4.97 f     (6.60 )f     (20.46 )c     (15.58 )e     21.03 c
Ratios to Average Net Assets and Supplemental Data
  
Net assets, end of period ($ millions)
     102       107       128       163       244       308  
Ratio of expenses before expense reductions (%)
     1.29 *     1.23       1.24       1.29       1.22       1.24  
Ratio of expenses after expense reductions (%)
     1.29 *     1.23       1.24       1.28       1.22       1.24  
Ratio of net investment income (loss) (%)
     1.09 *     1.48       1.02       1.70       1.94 d     1.21 d
Portfolio turnover rate (%)
     39 **     202       166       108       133       104  
a Based on average shares outstanding during the period.
b Total return does not reflect the effect of any sales charges.
c Total return would have been lower had certain expenses not been reduced.
d Net investment income per share and the ratio of net investment income include non-recurring dividend income amounting to $0.52 and $0.31 per share and 0.79% and 0.49% of average daily net assets for the years ended August 31, 2008 and 2007, respectively.
e Includes a reimbursement from the Advisor to reimburse the effect of losses incurred as the result of trades executed incorrectly during the period. Excluding this reimbursement, total return would have been (15.64)%.
f Includes a non-recurring payment from the Advisor which amounted to $0.323 per share for the period ended August 31, 2010 recorded as a result of the Advisor's settlement with the SEC and NY Attorney General in connection with certain trading arrangements. The Fund also received $0.079 and $0.097 per share of non-affiliated regulatory settlements for the periods ended August 31, 2011 and 2010, respectively. Excluding these non-recurring payments, total return would have been 0.17% and 0.96% lower for the periods ended August 31, 2011 and 2010, respectively.
* Annualized ** Not annualized *** Amount is less than $.005.
  
 

       
Years Ended August 31,
  
Class B
    
Six Months Ended 2/29/12 (Unaudited)
2011
  
2010
    
2009
    
2008
    
2007
  
Selected Per Share Data
  
Net asset value, beginning of period
   $ 40.05     $ 38.96     $ 42.43     $ 55.54     $ 66.32     $ 56.18  
Income (loss) from investment operations:
Net investment income (loss)a
     .04       .33       .11       .35       .76 d     .23 d
Net realized and unrealized gain (loss)
     1.23       1.29       (3.64 )     (12.35 )     (11.54 )     10.89  
Total from investment operations
     1.27       1.62       (3.53 )     (12.00 )     (10.78 )     11.12  
Less distributions from:
Net investment income
     (.63 )     (.61 )     (.36 )     (1.11 )     (.00 )*     (.98 )
Increase from regulatory settlements
     —       .08 f     .42 f     —       —       —  
Redemption fees
     .00 ***     .00 ***     .00 ***     .00 ***     .00 ***     .00 ***
Net asset value, end of period
   $ 40.69     $ 40.05     $ 38.96     $ 42.43     $ 55.54     $ 66.32  
Total Return (%)b
     3.23 **     4.26 c,f     (7.34 )c,f     (21.02 )c     (16.27 )c,e     20.01 c
Ratios to Average Net Assets and Supplemental Data
  
Net assets, end of period ($ millions)
     2       3       4       8       16       29  
Ratio of expenses before expense reductions (%)
     2.24 *     2.08       2.15       2.25       2.10       2.16  
Ratio of expenses after expense reductions (%)
     2.24 *     2.01       2.03       2.03       2.03       2.14  
Ratio of net investment income (loss) (%)
     .19 *     .70       .23       .95       1.14 d     .31 d
Portfolio turnover rate (%)
     39 **     202       166       108       133       104  
a Based on average shares outstanding during the period.
b Total return does not reflect the effect of any sales charges.
c Total return would have been lower had certain expenses not been reduced.
d Net investment income per share and the ratio of net investment income include non-recurring dividend income amounting to $0.52 and $0.31 per share and 0.79% and 0.49% of average daily net assets for the years ended August 31, 2008 and 2007, respectively.
e Includes a reimbursement from the Advisor to reimburse the effect of losses incurred as the result of trades executed incorrectly during the period. Excluding this reimbursement, total return would have been (16.33)%.
f Includes a non-recurring payment from the Advisor which amounted to $0.323 per share for the period ended August 31, 2010 recorded as a result of the Advisor's settlement with the SEC and NY Attorney General in connection with certain trading arrangements. The Fund also received $0.079 and $0.097 per share of non-affiliated regulatory settlements for the periods ended August 31, 2011 and 2010, respectively. Excluding these non-recurring payments, total return would have been 0.17% and 0.96% lower for the periods ended August 31, 2011 and 2010, respectively.
* Annualized ** Not annualized *** Amount is less than $.005.
  
 

       
Years Ended August 31,
  
Class C
 
  
Six Months Ended 2/29/12 (Unaudited)
2011
  
2010
    
2009
    
2008
    
2007
  
Selected Per Share Data
  
Net asset value, beginning of period
   $ 39.99     $ 38.91     $ 42.36     $ 55.47     $ 66.29     $ 56.22  
Income (loss) from investment operations:
Net investment income (loss)a
     .05       .33       .12       .35       .79 d     .30 d
Net realized and unrealized gain (loss)
     1.24       1.29       (3.63 )     (12.35 )     (11.52 )     10.90  
Total from investment operations
     1.29       1.62       (3.51 )     (12.00 )     (10.73 )     11.20  
Less distributions from:
Net investment income
     (.62 )     (.62 )     (.36 )     (1.11 )     (.09 )     (1.13 )
Increase from regulatory settlements
     —       .08 f     .42 f     —       —       —  
Redemption fees
     .00 ***     .00 ***     .00 ***     .00 ***     .00 ***     .00 ***
Net asset value, end of period
   $ 40.66     $ 39.99     $ 38.91     $ 42.36     $ 55.47     $ 66.29  
Total Return (%)b
     3.41 **     4.15 f     (7.31 )f     (21.04 )c     (16.24 )e     20.10 c
Ratios to Average Net Assets and Supplemental Data
  
Net assets, end of period ($ millions)
     9       10       12       15       24       32  
Ratio of expenses before expense reductions (%)
     2.09 *     2.01       2.02       2.10       2.01       2.01  
Ratio of expenses after expense reductions (%)
     2.09 *     2.01       2.02       2.03       2.01       2.01  
Ratio of net investment income (loss) (%)
     .29 *     .70       .24       .95       1.16 d     .44 d
Portfolio turnover rate (%)
     39 **     202       166       108       133       104  
a Based on average shares outstanding during the period.
b Total return does not reflect the effect of any sales charges.
c Total return would have been lower had certain expenses not been reduced.
d Net investment income per share and the ratio of net investment income include non-recurring dividend income amounting to $0.52 and $0.31 per share and 0.79% and 0.49% of average daily net assets for the years ended August 31, 2008 and 2007, respectively.
e Includes a reimbursement from the Advisor to reimburse the effect of losses incurred as the result of trades executed incorrectly during the period. Excluding this reimbursement, total return would have been (16.30)%.
f Includes a non-recurring payment from the Advisor which amounted to $0.323 per share for the period ended August 31, 2010 recorded as a result of the Advisor's settlement with the SEC and NY Attorney General in connection with certain trading arrangements. The Fund also received $0.079 and $0.097 per share of non-affiliated regulatory settlements for the periods ended August 31, 2011 and 2010, respectively. Excluding these non-recurring payments, total return would have been 0.17% and 0.96% lower for the periods ended August 31, 2011 and 2010, respectively.
* Annualized ** Not annualized *** Amount is less than $.005.
  
 

       
Years Ended August 31,
  
Class S
 
  
Six Months Ended 2/29/12 (Unaudited)
2011
  
2010
    
2009
    
2008
    
2007
  
Selected Per Share Data
  
Net asset value, beginning of period
   $ 40.73     $ 39.64     $ 43.16     $ 56.55     $ 67.57     $ 57.34  
Income (loss) from investment operations:
Net investment income (loss)a
     .27       .81       .58       .74       1.48 c     .97 c
Net realized and unrealized gain (loss)
     1.24       1.33       (3.66 )     (12.61 )     (11.66 )     11.11  
Total from investment operations
     1.51       2.14       (3.08 )     (11.87 )     (10.18 )     12.08  
Less distributions from:
Net investment income
     (1.05 )     (1.13 )     (.86 )     (1.52 )     (.84 )     (1.85 )
Increase from regulatory settlements
     —       .08 e     .42 e     —       —       —  
Redemption fees
     .00 ***     .00 ***     .00 ***     .00 ***     .00 ***     .00 ***
Net asset value, end of period
   $ 41.19     $ 40.73     $ 39.64     $ 43.16     $ 56.55     $ 67.57  
Total Return (%)
     4.00 **     5.30 e     (6.32 )e     (20.18 )     (15.33 )d     21.42 b
Ratios to Average Net Assets and Supplemental Data
  
Net assets, end of period ($ millions)
     660       687       780       986       1,480       1,870  
Ratio of expenses before expense reductions (%)
     .98 *     .92       .94       .94       .93       .93  
Ratio of expenses after expense reductions (%)
     .98 *     .92       .94       .94       .93       .93  
Ratio of net investment income (loss) (%)
     1.41 *     1.79       1.32       2.04       2.24 c     1.52 c
Portfolio turnover rate (%)
     39 **     202       166       108       133       104  
a Based on average shares outstanding during the period.
b Total return would have been lower had certain expenses not been reduced.
c Net investment income per share and the ratio of net investment income include non-recurring dividend income amounting to $0.52 and $0.31 per share and 0.79% and 0.49% of average daily net assets for the years ended August 31, 2008 and 2007, respectively.
d Includes a reimbursement from the Advisor to reimburse the effect of losses incurred as the result of trades executed incorrectly during the period. Excluding this reimbursement, total return would have been (15.39)%.
e Includes a non-recurring payment from the Advisor which amounted to $0.323 per share for the period ended August 31, 2010 recorded as a result of the Advisor's settlement with the SEC and NY Attorney General in connection with certain trading arrangements. The Fund also received $0.079 and $0.097 per share of non-affiliated regulatory settlements for the periods ended August 31, 2011 and 2010, respectively. Excluding these non-recurring payments, total return would have been 0.17% and 0.96% lower for the periods ended August 31, 2011 and 2010, respectively.
* Annualized ** Not annualized *** Amount is less than $.005.
  
 

       
Years Ended August 31,
  
Institutional Class
 
  
Six Months Ended 2/29/12 (Unaudited)
2011
  
2010
    
2009
    
2008
    
2007
  
Selected Per Share Data
  
Net asset value, beginning of period
   $ 40.57     $ 39.50     $ 43.00     $ 56.35     $ 67.34     $ 57.10  
Income (loss) from investment operations:
Net investment income (loss)a
     .31       .86       .63       .79       1.58 c     1.06 c
Net realized and unrealized gain (loss)
     1.22       1.31       (3.63 )     (12.58 )     (11.64 )     11.06  
Total from investment operations
     1.53       2.17       (3.00 )     (11.79 )     (10.06 )     12.12  
Less distributions from:
Net investment income
     (1.09 )     (1.18 )     (.92 )     (1.56 )     (.93 )     (1.88 )
Increase from regulatory settlements
     —       .08 e     .42 e     —       —       —  
Redemption fees
     .00 ***     .00 ***     .00 ***     .00 ***     .00 ***     .00 ***
Net asset value, end of period
   $ 41.01     $ 40.57     $ 39.50     $ 43.00     $ 56.35     $ 67.34  
Total Return (%)
     4.08 **     5.40 e     (6.21 )e     (20.06 )     (15.22 )d     21.60 b
Ratios to Average Net Assets and Supplemental Data
  
Net assets, end of period ($ millions)
     14       21       31       44       53       26  
Ratio of expenses before expense reductions (%)
     .84 *     .80       .81       .81       .80       .79  
Ratio of expenses after expense reductions (%)
     .84 *     .80       .81       .81       .80       .79  
Ratio of net investment income (loss) (%)
     1.65 *     1.91       1.45       2.17       2.36 c     1.66 c
Portfolio turnover rate (%)
     39 **     202       166       108       133       104  
a Based on average shares outstanding during the period.
b Total return would have been lower had certain expenses not been reduced.
c Net investment income per share and the ratio of net investment income include non-recurring dividend income amounting to $0.52 and $0.31 per share and 0.79% and 0.49% of average daily net assets for the years ended August 31, 2008 and 2007, respectively.
d Includes a reimbursement from the Advisor to reimburse the effect of losses incurred as the result of trades executed incorrectly during the period. Excluding this reimbursement, total return would have been (15.28)%.
e Includes a non-recurring payment from the Advisor which amounted to $0.323 per share for the period ended August 31, 2010 recorded as a result of the Advisor's settlement with the SEC and NY Attorney General in connection with certain trading arrangements. The Fund also received $0.079 and $0.097 per share of non-affiliated regulatory settlements for the periods ended August 31, 2011 and 2010, respectively. Excluding these non-recurring payments, total return would have been 0.17% and 0.96% lower for the periods ended August 31, 2011 and 2010, respectively.
* Annualized ** Not annualized *** Amount is less than $.005.
  
 
Notes to Financial Statements (Unaudited)
 
A. Organization and Significant Accounting Policies
 
DWS International Fund (the "Fund") is a diversified series of DWS International Fund, Inc. (the "Corporation"), which is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company organized as a Maryland corporation.
 
The Fund offers multiple classes of shares which provide investors with different purchase options. Class A shares are offered to investors subject to an initial sales charge. Class B shares of the Fund are closed to new purchases, except exchanges or the reinvestment of dividends or other distributions. Class B shares were offered to investors without an initial sales charge and are subject to higher ongoing expenses than Class A shares and a contingent deferred sales charge payable upon certain redemptions. Class B shares automatically convert to Class A shares six years after issuance. Class C shares are offered to investors without an initial sales charge but are subject to higher ongoing expenses than Class A shares and a contingent deferred sales charge payable upon certain redemptions within one year of purchase. Class C shares do not automatically convert into another class. Institutional Class shares are offered to a limited group of investors, are not subject to initial or contingent deferred sales charges and have lower ongoing expenses than other classes. Class S shares are not subject to initial or contingent deferred sales charges and are generally not available to new investors except under certain circumstances.
 
Investment income, realized and unrealized gains and losses, and certain fund-level expenses and expense reductions, if any, are borne pro rata on the basis of relative net assets by the holders of all classes of shares, except that each class bears certain expenses unique to that class such as distribution and service fees, services to shareholders and certain other class-specific expenses. Differences in class-level expenses may result in payment of different per share dividends by class. All shares of the Fund have equal rights with respect to voting subject to class-specific arrangements.
 
The Fund's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates. Actual results could differ from those estimates. The policies described below are followed consistently by the Fund in the preparation of its financial statements.
 
Security Valuation. Investments are stated at value determined as of the close of regular trading on the New York Stock Exchange on each day the exchange is open for trading.
 
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk). Level 3 includes significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
 
Equity securities are valued at the most recent sale price or official closing price reported on the exchange (U.S. or foreign) or over-the-counter market on which they trade and are categorized as Level 1 securities. Securities for which no sales are reported are valued at the calculated mean between the most recent bid and asked quotations on the relevant market or, if a mean cannot be determined, at the most recent bid quotation. For certain international equity securities, in order to adjust for events which may occur between the close of the foreign exchanges and the close of the New York Stock Exchange, a fair valuation model may be used. This fair valuation model takes into account comparisons to the valuation of American Depository Receipts (ADRs), exchange-traded funds, futures contracts and certain indices and these securities are categorized as Level 2.
 
Futures contracts are generally valued at the settlement prices established each day on the exchange on which they are traded and are categorized as Level 1.
 
Money market instruments purchased with an original or remaining maturity of sixty days or less, maturing at par, are valued at amortized cost, which approximates value, and are categorized as Level 2. Investments in open-end investment companies are valued at their net asset value each business day and are categorized as Level 1.
 
Securities and other assets for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value are valued in a manner that is intended to reflect their fair value as determined in accordance with procedures approved by the Board and are generally categorized as Level 3. In accordance with the Fund's valuation procedures, factors used in determining value may include, but are not limited to, the type of the security; the size of the holding; the initial cost of the security; the existence of any contractual restrictions on the security's disposition; the price and extent of public trading in similar securities of the issuer or of comparable companies; quotations or evaluated prices from broker-dealers and/or pricing services; information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities); an analysis of the company's or issuer's financial statements; an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold and with respect to debt securities; the maturity, coupon, creditworthiness, currency denomination and the movement of the market in which the security is normally traded. The value determined under these procedures may differ from published values for the same securities.
 
Disclosure about the classification of fair value measurements is included in a table following the Fund's Investment Portfolio.
 
New Accounting Pronouncement. In May 2011, Accounting Standards Update 2011-04 (ASU 2011-04), Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, was issued and is effective during interim and annual periods beginning after December 15, 2011. ASU 2011-04 amends Accounting Standards Codification (ASC) Topic 820, Fair Value Measurement. The amendments are the result of the work by the Financial Accounting Standards Board and the International Accounting Standards Board to develop common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP. Management is currently evaluating the application of ASU 2011-04 and its impact, if any, on the Fund's financial statements.
 
Foreign Currency Translations. The books and records of the Fund are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the prevailing exchange rates at period end. Purchases and sales of investment securities, income and expenses are translated into U.S. dollars at the prevailing exchange rates on the respective dates of the transactions.
 
Net realized and unrealized gains and losses on foreign currency transactions represent net gains and losses between trade and settlement dates on securities transactions, the acquisition and disposition of foreign currencies, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually received. That portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed but is included with net realized and unrealized gain/appreciation and loss/depreciation on investments.
 
Securities Lending. The Fund lends securities to certain financial institutions. The Fund retains beneficial ownership of the securities it has loaned and continues to receive interest and dividends paid by the issuer of securities and to participate in any changes in their market value. The Fund requires the borrowers of the securities to maintain collateral with the Fund consisting of either cash or liquid, unencumbered assets having a value at least equal to the value of the securities loaned. When the collateral falls below specified amounts, the lending agent will use its best effort to obtain additional collateral on the next business day to meet required amounts under the security lending agreement. The Fund may invest the cash collateral into a joint trading account in an affiliated money market fund pursuant to Exemptive Orders issued by the SEC. The Fund receives compensation for lending its securities either in the form of fees or by earning interest on invested cash collateral net of borrower rebates and fees paid to a lending agent. Either the Fund or the borrower may terminate the loan. There may be risks of delay and costs in recovery of securities or even loss of rights in the collateral should the borrower of the securities fail financially. The Fund is also subject to all investment risks associated with the value reinvestment of any cash collateral received, including, but not limited to, interest rate, credit and liquidity risk associated with such investments.
 
Taxes. The Fund's policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies and to distribute all of its taxable income to its shareholders.
 
Additionally, based on the Fund's understanding of the tax rules and rates related to income, gains and transactions for the foreign jurisdictions in which it invests, the Fund will provide for foreign taxes, and where appropriate, deferred foreign taxes.
 
Under the Regulated Investment Company Modernization Act of 2010, net capital losses may be carried forward indefinitely, and their character is retained as short-term and/or long-term. Previously, net capital losses were carried forward for eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.
 
At August 31, 2011, the Fund had a net tax basis capital loss carryforward of approximately $589,624,000, which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or until August 31, 2017 ($273,735,000) and August 31, 2018 ($315,889,000), the respective expiration dates, whichever occurs first.
 
The Fund has reviewed the tax positions for the open tax years as of August 31, 2011 and has determined that no provision for income tax is required in the Fund's financial statements. The Fund's federal tax returns for the prior three fiscal years remain open subject to examination by the Internal Revenue Service.
 
Distribution of Income and Gains. Net investment income of the Fund, if any, is declared and distributed to shareholders annually. Net realized gains from investment transactions, in excess of available capital loss carryforwards, would be taxable to the Fund if not distributed, and, therefore, will be distributed to shareholders at least annually.
 
The timing and characterization of certain income and capital gain distributions are determined annually in accordance with federal tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences primarily relate to investments in foreign denominated investments, investments in foreign passive investment companies, recognition of certain foreign currency gains (losses) as ordinary income (loss) and certain securities sold at a loss. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. Accordingly, the Fund may periodically make reclassifications among certain of its capital accounts without impacting the net asset value of the Fund.
 
The tax character of current year distributions will be determined at the end of the current fiscal year.
 
Redemption Fees. The Fund imposes a redemption fee of 2% of the total redemption amount on all Fund shares redeemed or exchanged within 15 days of buying them, either by purchase or exchange. This fee is assessed and retained by the Fund for the benefit of the remaining shareholders. The redemption fee is accounted for as an addition to paid-in capital.
 
Expenses. Expenses of the Corporation arising in connection with a specific fund are allocated to that fund. Other Corporation expenses which cannot be directly attributed to a fund are apportioned among the funds in the Corporation.
 
Contingencies. In the normal course of business, the Fund may enter into contracts with service providers that contain general indemnification clauses. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet been made. However, based on experience, the Fund expects the risk of loss to be remote.
 
Other. Investment transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date net of foreign withholding taxes. Certain dividends from foreign securities may be recorded subsequent to the ex-dividend date as soon as the Fund is informed of such dividends. Realized gains and losses from investment transactions are recorded on an identified cost basis and may include proceeds from litigation.
 
B. Derivative Instruments
 
Futures Contracts. A futures contract is an agreement between a buyer or seller and an established futures exchange or its clearinghouse in which the buyer or seller agrees to take or make a delivery of a specific amount of a financial instrument at a specified price on a specific date (settlement date). For the six months ended February 29, 2012, the Fund invested in futures contracts to keep cash on hand to meet shareholder redemptions or other needs while maintaining exposure to the market.
 
Upon entering into a futures contract, the Fund is required to deposit with a financial intermediary cash or securities ("initial margin") in an amount equal to a certain percentage of the face value indicated in the futures contract. Subsequent payments ("variation margin") are made or received by the Fund dependent upon the daily fluctuations in the value and are recorded for financial reporting purposes as unrealized gains or losses by the Fund. Gains or losses are realized when the contract expires or is closed. Since all futures contracts are exchange traded, counterparty risk is minimized as the exchange's clearinghouse acts as the counterparty, and guarantees the futures against default.
 
Certain risks may arise upon entering into futures contracts, including the risk that an illiquid market will limit the Fund's ability to close out a futures contract prior to the settlement date and the risk that the futures contract is not well correlated with the security, index or currency to which it relates. Risk of loss may exceed amounts recognized in the Statement of Assets and Liabilities.
 
A summary of the open futures contracts as of February 29, 2012 is included in a table following the Fund's Investment Portfolio. For the six months ended February 29, 2012, the investment in futures contracts purchased had a total notional value generally indicative of a range from approximately $22,527,000 to $31,150,000.
 
The following table summarizes the value of the Fund's derivative instruments held as of February 29, 2012 and the related location in the accompanying Statement of Assets and Liabilities, presented by primary underlying risk exposure:
Asset Derivative
  
Futures Contracts
  
Equity Contracts (a)
   $ 1,983,438  
 
The above derivative is located in the following Statement of Assets and Liabilities account:
 
(a) Includes cumulative appreciation of futures contracts as disclosed in the Investment Portfolio. Unsettled variation margin is disclosed separately within the Statement of Assets and Liabilities.
 
Additionally, the amount of unrealized and realized gains and losses on derivative instruments recognized in Fund earnings during the six months ended February 29, 2012 and the related location in the accompanying Statement of Operations is summarized in the following tables by primary underlying risk exposure:
Realized Gain (Loss)
  
Futures Contracts
  
Equity Contracts (a)
   $ 1,792,924  
 
The above derivative is located in the following Statement of Operations account:
 
(a) Net realized gain (loss) from futures
 
Change in Net Unrealized Appreciation (Depreciation)
  
Futures Contracts
  
Equity Contracts (a)
   $ 3,220,163  
 
The above derivative is located in the following Statement of Operations account:
 
(a) Change in net unrealized appreciation (depreciation) on futures
 
C. Purchases and Sales of Securities
 
During the six months ended February 29, 2012, purchases and sales of investment securities (excluding short-term investments) aggregated $290,354,261 and $353,044,703, respectively.
 
D. Related Parties
 
Management Agreement. Under the Investment Management Agreement with Deutsche Investment Management Americas Inc. ("DIMA" or the "Advisor"), an indirect, wholly owned subsidiary of Deutsche Bank AG, the Advisor directs the investments of the Fund in accordance with its investment objectives, policies and restrictions. The Advisor determines the securities, instruments and other contracts relating to investments to be purchased, sold or entered into by the Fund.
 
Under the Investment Management Agreement with the Advisor, the Fund pays a monthly management fee based on the Fund's average daily net assets, computed and accrued daily and payable monthly, at the following annual rates:
First $2.5 billion of the Fund's average daily net assets
     .565 %
Next $2.5 billion of such net assets
     .545 %
Next $5 billion of such net assets
     .525 %
Next $5 billion of such net assets
     .515 %
Over $15 billion of such net assets
     .465 %
 
Accordingly, for the six months ended February 29, 2012, the fee pursuant to the management agreement was equivalent to an annualized effective rate of 0.565% of the Fund's average daily net assets.
 
Administration Fee. Pursuant to an Administrative Services Agreement, DIMA provides most administrative services to the Fund. For all services provided under the Administrative Services Agreement, the Fund pays the Advisor an annual fee ("Administration Fee") of 0.10% of the Fund's average daily net assets, computed and accrued daily and payable monthly. For the six months ended February 29, 2012, the Administration Fee was $377,956, of which $61,942 is unpaid.
 
Service Provider Fees. DWS Investments Service Company ("DISC"), an affiliate of the Advisor, is the transfer agent, dividend-paying agent and shareholder service agent for the Fund. Pursuant to a sub-transfer agency agreement between DISC and DST Systems, Inc. ("DST"), DISC has delegated certain transfer agent, dividend-paying agent and shareholder service agent functions to DST. DISC compensates DST out of the shareholder servicing fee it receives from the Fund. For the six months ended February 29, 2012, the amounts charged to the Fund by DISC were as follows:
Services to Shareholders
  
Total Aggregated
    
Unpaid at February 29, 2012
  
Class A
   $ 116,651     $ 45,992  
Class B
     4,723       1,895  
Class C
     10,681       4,878  
Class S
     430,224       156,069  
Institutional Class
     5,923       5,309  
    $ 568,202     $ 214,143  
 
Distribution and Service Fees. Under the Fund's Class B and Class C 12b-1 Plans, DWS Investments Distributors, Inc. ("DIDI"), an affiliate of the Advisor, receives a fee ("Distribution Fee") of 0.75% of average daily net assets of each of Class B and C shares. In accordance with the Fund's Underwriting and Distribution Services Agreement, DIDI enters into related selling group agreements with various firms at various rates for sales of Class B and C shares. For the six months ended February 29, 2012, the Distribution Fee was as follows:
Distribution Fee
  
Total Aggregated
    
Unpaid at February 29, 2012
  
Class B
   $ 8,458     $ 1,285  
Class C
     31,768       5,235  
    $ 40,226     $ 6,520  
 
In addition, DIDI provides information and administrative services for a fee ("Service Fee") to Class A, B and C shareholders at an annual rate of up to 0.25% of average daily net assets for each such class. DIDI in turn has various agreements with financial services firms that provide these services and pays these fees based upon the assets of shareholder accounts the firms service. For the six months ended February 29, 2012, the Service Fee was as follows:
Service Fee
  
Total Aggregated
    
Unpaid at February 29, 2012
    
Annualized Effective Rate
  
Class A
   $ 120,605     $ 50,130       .25 %
Class B
     2,810       937       .25 %
Class C
     10,558       3,742       .25 %
    $ 133,973     $ 54,809          
 
Underwriting Agreement and Contingent Deferred Sales Charge. DIDI is the principal underwriter for the Fund. Underwriting commissions paid in connection with the distribution of Class A shares for the six months ended February 29, 2012 aggregated $1,741.
 
In addition, DIDI receives any contingent deferred sales charge ("CDSC") from Class B share redemptions occurring within six years of purchase and Class C share redemptions occurring within one year of purchase. There is no such charge upon redemption of any share appreciation or reinvested dividends. The CDSC is based on declining rates ranging from 4% to 1% for Class B and 1% for Class C, of the value of the shares redeemed. For the six months ended February 29, 2012, the CDSC for Class B and C shares aggregated $2,854 and $143, respectively. A deferred sales charge of up to 1% is assessed on certain redemptions of Class A shares. For the six months ended February 29, 2012, DIDI received $457 for Class A shares.
 
Typesetting and Filing Service Fees. Under an agreement with DIMA, DIMA is compensated for providing typesetting and certain regulatory filing services to the Fund. For the six months ended February 29, 2012, the amount charged to the Fund by DIMA included in the Statement of Operations under "reports to shareholders" aggregated $9,522, of which $6,465 is unpaid.
 
Directors' Fees and Expenses. The Fund paid each Director not affiliated with the Advisor retainer fees plus specified amounts for various committee services and for the Board Chairperson.
 
Affiliated Cash Management Vehicle. The Fund may invest uninvested cash balances in Central Cash Management Fund, which is managed by the Advisor. The Fund indirectly bears its proportionate share of the expenses of Central Cash Management Fund. Central Cash Management Fund does not pay the Advisor an investment management fee. Central Cash Management Fund seeks a high level of current income consistent with liquidity and the preservation of capital.
 
Securities Lending Agent Fees. Effective October 5, 2011, Deutsche Bank AG serves as securities lending agent for the Fund. For the period from October 5, 2011 through February 29, 2012, the Fund incurred securities lending agent fees to Deutsche Bank AG in the amount of $27,727.
 
E. Line of Credit
 
The Fund and other affiliated funds (the "Participants") share in a $375 million ($450 million prior to March 29, 2012) revolving credit facility provided by a syndication of banks. The Fund may borrow for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. The Participants are charged an annual commitment fee which is allocated based on net assets, among each of the Participants. Interest is calculated at a rate per annum equal to the sum of the Federal Funds Rate plus 1.25 percent plus if LIBOR exceeds the Federal Funds Rate the amount of such excess. The Fund may borrow up to a maximum of 33 percent of its net assets under the agreement. The Fund had no outstanding loans at February 29, 2012.
 
F. Share Transactions
 
The following table summarizes share and dollar activity in the Fund:
   
Six Months Ended
February 29, 2012
    
Year Ended
August 31, 2011
  
   
Shares
    
Dollars
    
Shares
    
Dollars
  
Shares sold
  
Class A
     83,946     $ 3,198,642       216,721     $ 9,757,234  
Class B
     493       17,926       484       22,113  
Class C
     10,679       408,548       28,226       1,237,915  
Class S
     235,538       9,034,636       367,842       16,679,602  
Institutional Class
     1,882       70,448       184,676       8,390,054  
            $ 12,730,200             $ 36,086,918  
Shares issued to shareholders in reinvestment of distributions
  
Class A
     60,871     $ 2,241,886       62,399     $ 2,799,238  
Class B
     978       35,798       1,272       56,747  
Class C
     3,566       130,398       3,629       161,614  
Class S
     421,930       15,598,770       425,145       19,148,503  
Institutional Class
     7,081       260,506       15,506       695,136  
            $ 18,267,358             $ 22,861,238  
Shares redeemed
  
Class A
     (308,414 )   $ (11,841,319 )     (864,609 )   $ (38,868,262 )
Class B
     (16,893 )     (634,344 )     (42,981 )     (1,907,883 )
Class C
     (37,773 )     (1,420,347 )     (93,009 )     (4,070,265 )
Class S
     (1,501,660 )     (57,621,972 )     (3,601,515 )     (163,209,757 )
Institutional Class
     (187,358 )     (7,168,122 )     (472,085 )     (20,098,808 )
            $ (78,686,104 )           $ (228,154,975 )
Redemption fees
           $ 752             $ 9,453  
Net increase (decrease)
  
Class A
     (163,597 )   $ (6,400,691 )     (585,489 )   $ (26,311,790 )
Class B
     (15,422 )     (580,620 )     (41,225 )     (1,829,023 )
Class C
     (23,528 )     (881,401 )     (61,154 )     (2,670,670 )
Class S
     (844,192 )     (32,988,032 )     (2,808,528 )     (127,372,265 )
Institutional Class
     (178,395 )     (6,837,050 )     (271,903 )     (11,013,618 )
            $ (47,687,794 )           $ (169,197,366 )
 
G. Payment by Affiliate
 
During the six months ended February 29, 2012, the Advisor fully reimbursed $36,475 to compensate for a breach of the Fund's procedures. The amount of the loss reimbursed was less than 0.01% of the Fund's average net assets, thus having no impact on the Fund's total return.
 
H. Regulatory Settlements
 
During the year ended August 31, 2011, the Fund received $1,705,420 of non-affiliated regulatory settlements. These payments are included in "Increase from regulatory settlements" in the Statement of Changes in Net Assets.
 
Information About Your Fund's Expenses
 
As an investor of the Fund, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees, distribution and service (12b-1) fees and other Fund expenses. Examples of transaction costs include sales charges (loads), redemption fees and account maintenance fees, which are not shown in this section. The following tables are intended to help you understand your ongoing expenses (in dollars) of investing in the Fund and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. The example in the table is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (September 1, 2011 to February 29, 2012).
 
The tables illustrate your Fund's expenses in two ways:
 
·Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund's actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the "Expenses Paid per $1,000" line under the share class you hold.
 
·Hypothetical 5% Fund Return. This helps you to compare your Fund's ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund's actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
 
Please note that the expenses shown in these tables are meant to highlight your ongoing expenses only and do not reflect any transaction costs. The "Expenses Paid per $1,000" line of the tables is useful in comparing ongoing expenses only and will not help you determine the relative total expense of owning different funds. An account maintenance fee of $6.25 per quarter for Class S shares may apply for certain accounts whose balances do not meet the applicable minimum initial investment. This fee is not included in these tables. If it was, the estimate of expenses paid for Class S shares during the period would be higher, and account value during the period would be lower, by this amount.
 
Expenses and Value of a $1,000 Investment for the six months ended February 29, 2012 (Unaudited)
  
Actual Fund Return
  
Class A
    
Class B
    
Class C
    
Class S
    
Institutional Class
  
Beginning Account Value 9/1/11
   $ 1,000.00     $ 1,000.00     $ 1,000.00     $ 1,000.00     $ 1,000.00  
Ending Account Value 2/29/12
   $ 1,038.30     $ 1,032.30     $ 1,034.10     $ 1,040.00     $ 1,040.80  
Expenses Paid per $1,000*
   $ 6.54     $ 11.32     $ 10.57     $ 4.97     $ 4.26  
Hypothetical 5% Fund Return
  
Class A
    
Class B
    
Class C
    
Class S
    
Institutional Class
  
Beginning Account Value 9/1/11
   $ 1,000.00     $ 1,000.00     $ 1,000.00     $ 1,000.00     $ 1,000.00  
Ending Account Value 2/29/12
   $ 1,018.45     $ 1,013.72     $ 1,014.47     $ 1,019.99     $ 1,020.69  
Expenses Paid per $1,000*
   $ 6.47     $ 11.22     $ 10.47     $ 4.92     $ 4.22  
 
* Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by 366.
Annualized Expense Ratios
Class A
Class B
Class C
Class S
Institutional Class
DWS International Fund
1.29%
2.24%
2.09%
.98%
.84%
 
For more information, please refer to the Fund's prospectus.
 
Investment Management Agreement Approval
 
The Board of Directors approved the renewal of DWS International Fund's investment management agreement (the "Agreement") with Deutsche Investment Management Americas Inc. ("DWS") in September 2011.
 
In terms of the process that the Board followed prior to approving the Agreement, shareholders should know that:
 
· In September 2011, all of the Fund's Directors were independent of DWS and its affiliates.
 
· The Directors met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board's Contract Committee, in coordination with the Board's Equity Committee, reviewed comprehensive materials received from DWS, independent third parties and independent counsel. These materials included an analysis of the Fund's performance, fees and expenses, and profitability compiled by the Fund's independent fee consultant. The Board also received extensive information throughout the year regarding performance of the Fund.
 
· The Independent Directors regularly meet privately with their independent counsel to discuss contract review and other matters. In addition, the Independent Directors were also advised by the Fund's independent fee consultant in the course of their review of the Fund's contractual arrangements and considered a comprehensive report prepared by the independent fee consultant in connection with their deliberations (the "IFC Report").
 
· In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund's Rule 12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements.
 
· Based on its evaluation of the information provided, the Contract Committee presented its findings and recommendations to the Board. The Board then reviewed the Contract Committee's findings and recommendations.
 
In connection with the contract review process, the Contract Committee and the Board considered the factors discussed below, among others. The Board also considered that DWS and its predecessors have managed the Fund since its inception, and the Board believes that a long-term relationship with a capable, conscientious advisor is in the best interests of the Fund. The Board considered, generally, that shareholders chose to invest or remain invested in the Fund knowing that DWS managed the Fund, and that the Agreement was approved by the Fund's shareholders. DWS is part of Deutsche Bank, a major global banking institution that is engaged in a wide range of financial services. The Board believes that there are significant advantages to being part of a global asset management business that offers a wide range of investing expertise and resources, including hundreds of portfolio managers and analysts with research capabilities in many countries throughout the world.
 
While shareholders may focus primarily on fund performance and fees, the Fund's Board considers these and many other factors, including the quality and integrity of DWS's personnel and such other issues as back-office operations, fund valuations, and compliance policies and procedures.
 
Nature, Quality and Extent of Services. The Board considered the terms of the Agreement, including the scope of advisory services provided under the Agreement. The Board noted that, under the Agreement, DWS provides portfolio management services to the Fund and that, pursuant to a separate administrative services agreement, DWS provides administrative services to the Fund. The Board considered the experience and skills of senior management and investment personnel, the resources made available to such personnel, the ability of DWS to attract and retain high-quality personnel, and the organizational depth and stability of DWS. The Board reviewed the Fund's performance over short-term and long-term periods and compared those returns to various agreed-upon performance measures, including market indices and a peer universe compiled by the independent fee consultant using information supplied by Lipper Inc. ("Lipper"). The Board also noted that it has put into place a process of identifying "Focus Funds" (e.g., funds performing poorly relative to their benchmark or a peer universe compiled by an independent fund data service), and receives more frequent reporting and information from DWS regarding such funds, along with DWS's remedial plans to address underperformance. The Board believes this process is an effective manner of identifying and addressing underperforming funds. Based on the information provided, the Board noted that for each of the one-, three- and five-year periods ended December 31, 2010, the Fund's performance (Class A shares) was in the 4th quartile of the applicable Lipper universe (the 1st quartile being the best performers and the 4th quartile being the worst performers). The Board also observed that the Fund has underperformed its benchmark in the one-, three- and five-year periods ended December 31, 2010. The Board noted the disappointing investment performance of the Fund in recent periods and continued to discuss with senior management of DWS the factors contributing to such underperformance and actions being taken to improve performance. The Board recognized that DWS has made significant changes in the Fund's management structure, including the introduction of a new portfolio management team and investment process in April 2011.
 
On the basis of this evaluation and the ongoing review of investment results by the Board, the Board concluded that the nature, quality and extent of services provided by DWS historically have been and continue to be satisfactory.
 
Fees and Expenses. The Board considered the Fund's investment management fee schedule, operating expenses and total expense ratios, and comparative information provided by Lipper and the independent fee consultant regarding investment management fee rates paid to other investment advisors by similar funds (1st quartile being the most favorable and 4th quartile being the least favorable). With respect to management fees paid to other investment advisors by similar funds, the Board noted that the contractual fee rates paid by the Fund, which include a 0.10% fee paid to DWS under the Fund's administrative services agreement, were lower than the median (1st quartile) of the applicable Lipper peer group (based on Lipper data provided as of December 31, 2010). The Board noted that the Fund's Class A shares total (net) operating expenses (excluding 12b-1 fees) were expected to be lower than the median (1st quartile) of the applicable Lipper expense universe (based on Lipper data provided as of December 31, 2010, and analyzing Lipper expense universe Class A expenses less any applicable 12b-1 fees) ("Lipper Universe Expenses"). The Board also reviewed data comparing each share class's total (net) operating expenses to the applicable Lipper Universe Expenses. The Board considered the Fund's management fee rate as compared to fees charged by DWS and certain of its affiliates for comparable mutual funds and considered differences in fund and fee structures between the DWS Funds. The Board also considered how the Fund's total (net) operating expenses compared to the total (net) operating expenses of a more customized peer group selected by Lipper (based on such factors as asset size).
 
The information considered by the Board as part of its review of management fees included information regarding fees charged by DWS and its affiliates to similar institutional accounts and to similar funds offered primarily to European investors ("DWS Europe funds"), in each case as applicable. The Board observed that advisory fee rates for institutional accounts generally were lower than the management fees charged by similarly managed DWS U.S. mutual funds ("DWS Funds"), but also took note of the differences in services provided to DWS Funds as compared to institutional accounts. In the case of DWS Europe funds, the Board observed that fee rates for DWS Europe funds generally were higher than for similarly managed DWS Funds, but noted that differences in the types of services provided to DWS Funds relative to DWS Europe funds made it difficult to compare such fees.
 
On the basis of the information provided, the Board concluded that management fees were reasonable and appropriate in light of the nature, quality and extent of services provided by DWS.
 
Profitability. The Board reviewed detailed information regarding revenues received by DWS under the Agreement. The Board considered the estimated costs and pre-tax profits realized by DWS from advising the DWS Funds, as well as estimates of the pre-tax profits attributable to managing the Fund in particular. The Board also received information regarding the estimated enterprise-wide profitability of DWS and its affiliates with respect to all fund services in totality and by fund. The Board and the independent fee consultant reviewed DWS's methodology in allocating its costs to the management of the Fund. Based on the information provided, the Board concluded that the pre-tax profits realized by DWS in connection with the management of the Fund were not unreasonable. The Board also reviewed information regarding the profitability of certain similar investment management firms. The Board noted that while information regarding the profitability of such firms is limited (and in some cases is not necessarily prepared on a comparable basis), DWS and its affiliates' overall profitability with respect to the DWS fund complex (after taking into account distribution and other services provided to the funds by DWS and its affiliates) was lower than the overall profitability levels of many comparable firms for which such data was available.
 
Economies of Scale. The Board considered whether there are economies of scale with respect to the management of the Fund and whether the Fund benefits from any economies of scale. The Board noted that the Fund's management fee schedule includes fee breakpoints. The Board concluded that the Fund's fee schedule represents an appropriate sharing between the Fund and DWS of such economies of scale as may exist in the management of the Fund at current asset levels.
 
Other Benefits to DWS and Its Affiliates. The Board also considered the character and amount of other incidental benefits received by DWS and its affiliates, including any fees received by DWS for administrative services provided to the Fund and any fees received by an affiliate of DWS for distribution services. The Board also considered benefits to DWS related to brokerage and soft-dollar allocations, including allocating brokerage to pay for research generated by parties other than the executing broker dealers, which pertain primarily to funds investing in equity securities, along with the incidental public relations benefits to DWS related to DWS Funds advertising and cross-selling opportunities among DWS products and services. The Board concluded that management fees were reasonable in light of these fallout benefits.
 
Compliance. The Board considered the significant attention and resources dedicated by DWS to documenting and enhancing its compliance processes in recent years. The Board noted in particular (i) the experience and seniority of both DWS's chief compliance officer and the Fund's chief compliance officer; (ii) the large number of DWS compliance personnel; and (iii) the substantial commitment of resources by DWS and its affiliates to compliance matters.
 
Based on all of the information considered and the conclusions reached, the Board unanimously determined that the continuation of the Agreement is in the best interests of the Fund. In making this determination, the Board did not give particular weight to any single factor identified above. The Board considered these factors over the course of numerous meetings, certain of which were in executive session with only the Independent Directors and their counsel present. It is possible that individual Directors may have weighed these factors differently in reaching their individual decisions to approve the continuation of the Agreement.
 
Summary of Management Fee Evaluation by Independent Fee Consultant
 
September 26, 2011
 
Pursuant to an Order entered into by Deutsche Investment Management Americas and affiliates (collectively, "DeAM") with the Attorney General of New York, I, Thomas H. Mack, have been appointed the Independent Fee Consultant for the DWS Funds (formerly the DWS Scudder Funds). My duties include preparing an annual written evaluation of the management fees DeAM charges the Funds, considering among other factors the management fees charged by other mutual fund companies for like services, management fees DeAM charges other clients for like services, DeAM's costs of supplying services under the management agreements and related profit margins, possible economies of scale if a Fund grows larger, and the nature and quality of DeAM's services, including fund performance. This report summarizes my evaluation for 2011, including my qualifications, the evaluation process for each of the DWS Funds, consideration of certain complex-level factors, and my conclusions. I served in substantially the same capacity in 2007, 2008, 2009 and 2010.
 
Qualifications
 
For more than 35 years I have served in various professional capacities within the investment management business. I have held investment analysis and advisory positions, including securities analyst, portfolio strategist and director of investment policy with a large investment firm. I have also performed business management functions, including business development, financial management and marketing research and analysis.
 
Since 1991, I have been an independent consultant within the asset management industry. I have provided services to over 125 client organizations, including investment managers, mutual fund boards, product distributors and related organizations. Over the past ten years I have completed a number of assignments for mutual fund boards, specifically including assisting boards with management contract renewal.
 
I hold a Master of Business Administration degree, with highest honors, from Harvard University and Master of Science and Bachelor of Science (highest honors) degrees from the University of California at Berkeley. I am an independent director and audit committee financial expert for two closed-end mutual funds and have served in various leadership and financial oversight capacities with non-profit organizations.
 
Evaluation of Fees for each DWS Fund
 
My work focused primarily on evaluating, fund-by-fund, the fees charged to each of the 109 mutual fund portfolios in the DWS Fund family. For each Fund, I considered each of the key factors mentioned above, as well as any other relevant information. In doing so I worked closely with the Funds' Independent Directors in their annual contract renewal process, as well as in their approval of contracts for several new funds (documented separately).
 
In evaluating each Fund's fees, I reviewed comprehensive materials provided by or on behalf of DeAM, including expense information prepared by Lipper Analytical, comparative performance information, profitability data, manager histories, and other materials. I also accessed certain additional information from the Lipper and Morningstar databases and drew on my industry knowledge and experience.
 
To facilitate evaluating this considerable body of information, I prepared for each Fund a document summarizing the key data elements in each area as well as additional analytics discussed below. This made it possible to consider each key data element in the context of the others.
 
In the course of contract renewal, DeAM agreed to implement a number of fee and expense adjustments requested by the Independent Directors which will favorably impact future fees and expenses, and my evaluation includes the effects of these changes.
 
Fees and Expenses Compared with Other Funds
 
The competitive fee and expense evaluation for each fund focused on two primary comparisons:
 
The Fund's contractual management fee (the advisory fee plus the administration fee where applicable) compared with those of a group of typically 12-15 funds in the same Lipper investment category (e.g. Large Capitalization Growth) having similar distribution arrangements and being of similar size.
 
The Fund's total expenses compared with a broader universe of funds from the same Lipper investment category and having similar distribution arrangements.
 
These two comparisons provide a view of not only the level of the fee compared with funds of similar scale but also the total expense the Fund bears for all the services it receives, in comparison with the investment choices available in the Fund's investment category and distribution channel. The principal figure-of-merit used in these comparisons was the subject Fund's percentile ranking against peers.
 
DeAM's Fees for Similar Services to Others
 
DeAM provided management fee schedules for all of its US domiciled fund and non-fund investment management accounts in any of the investment categories where there is a DWS Fund. These similar products included the other DWS Funds, non-fund pooled accounts, institutional accounts and sub-advisory accounts. Using this information, I calculated for each Fund the fee that would be charged to each similar product, at the subject Fund's asset level.
 
Evaluating information regarding non-fund products is difficult because there are varying levels of services required for different types of accounts, with mutual funds generally requiring considerably more regulatory and administrative types of service as well as having more frequent cash flows than other types of accounts. Also, while mutual fund fees for similar fund products can be expected to be similar, there will be some differences due to different pricing conditions in different distribution channels (e.g. retail funds versus those used in variable insurance products), differences in underlying investment processes and other factors.
 
Costs and Profit Margins
 
DeAM provided a detailed profitability analysis for each Fund. After making some adjustments so that the presentation would be more comparable to the available industry figures, I reviewed profit margins from investment management alone, from investment management plus other fund services (excluding distribution) provided to the Funds by DeAM (principally shareholder services), and DeAM profits from all sources, including distribution. A later section comments on overall profitability.
 
Economies of Scale
 
Economies of scale — an expected decline in management cost per dollar of fund assets as fund assets grow — are very rarely quantified and documented because of inherent difficulties in collecting and analyzing relevant data. However, in virtually every investment category that I reviewed, larger funds tend to have lower fees and lower total expenses than smaller funds. To see how each DWS Fund compares with this industry observation, I reviewed:
 
The trend in Fund assets over the last five years and the accompanying trend in total expenses. This shows if the Fund has grown and, if so, whether total expense (management fees as well as other expenses) have declined as a percent of assets.
 
Whether the Fund has break-points in its management fee schedule, the extent of the fee reduction built into the schedule and the asset levels where the breaks take effect, and in the case of a sub-advised Fund how the Fund's break-points compare with those of the sub-advisory fee schedule.
 
How the Fund's contractual fee schedule compares with trends in the industry data. To accomplish this, I constructed a chart showing how actual latest-fiscal-year contractual fees of the Fund and of other similar funds relate to average fund assets, with the subject Fund's contractual fee schedule superimposed.
 
Quality of Service — Performance
 
The quality-of-service evaluation focused on investment performance, which is the principal result of the investment management service. Each Fund's performance was reviewed over the past 1, 3, 5 and 10 years, as applicable, and compared with that of other funds in the same investment category and with a suitable market index.
 
In addition, I calculated and reviewed risk-adjusted returns relative to an index of similar mutual funds' returns and a suitable market index. The risk-adjusted returns analysis provides a way of determining the extent to which the Fund's return comparisons are mainly the product of investment value-added (or lack thereof) or alternatively taking considerably more or less risk than is typical in its investment category.
 
I also received and considered the history of portfolio manager changes for each Fund, as this provided an important context for evaluating the performance results.
 
Complex-Level Considerations
 
While this evaluation was conducted mainly at the individual fund level, there are some issues relating to the reasonableness of fees that can alternatively be considered across the whole fund complex:
 
I reviewed DeAM's profitability analysis for all DWS Funds, with a view toward determining if the allocation procedures used were reasonable and how profit levels compared with public data for other investment managers.
 
I considered whether DeAM and affiliates receive any significant ancillary or "fall-out" benefits that should be considered in interpreting the direct profitability results. These would be situations where serving as the investment manager of the Funds is beneficial to another part of the Deutsche Bank organization.
 
I considered how aggregated DWS Fund expenses had varied over the years, by asset class and in the context of trends in asset levels.
 
I reviewed the structure of the DeAM organization, trends in staffing levels, and information on compensation of investment management and other professionals compared with industry data.
 
Findings
 
Based on the process and analysis discussed above, which included reviewing a wide range of information from management and external data sources and considering among other factors the fees DeAM charges other clients, the fees charged by other fund managers, DeAM's costs and profits associated with managing the Funds, economies of scale, possible fall-out benefits, and the nature and quality of services provided, in my opinion the management fees charged the DWS Funds are reasonable.
 
Thomas H. Mack
 
President, Thomas H. Mack & Co., Inc.
 
Account Management Resources
 
For More Information
  
The automated telephone system allows you to access personalized account information and obtain information on other DWS funds using either your voice or your telephone keypad. Certain account types within Classes A, B, C and S also have the ability to purchase, exchange or redeem shares using this system.
For more information, contact your financial advisor. You may also access our automated telephone system or speak with a DWS Investments representative by calling the appropriate number below:
For shareholders of Classes A, B, C and Institutional Class:
(800) 621-1048
For shareholders of Class S:
(800) 728-3337
Web Site
  
www.dws-investments.com
View your account transactions and balances, trade shares, monitor your asset allocation, and change your address, 24 hours a day.
Obtain prospectuses and applications, blank forms, interactive worksheets, news about DWS funds, subscription to fund updates by e-mail, retirement planning information, and more.
Written Correspondence
  
DWS Investments
PO Box 219151
Kansas City, MO 64121-9151
Proxy Voting
  
The fund's policies and procedures for voting proxies for portfolio securities and information about how the fund voted proxies related to its portfolio securities during the 12-month period ended June 30 are available on our Web site — www.dws-investments.com (click on "proxy voting"at the bottom of the page) — or on the SEC's Web site — www.sec.gov. To obtain a written copy of the fund's policies and procedures without charge, upon request, call us toll free at (800) 621-1048.
Portfolio Holdings
  
Following the fund's fiscal first and third quarter-end, a complete portfolio holdings listing is filed with the SEC on Form N-Q. This form will be available on the SEC's Web site at www.sec.gov, and it also may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the SEC's Public Reference Room may be obtained by calling (800) SEC-0330. The fund's portfolio holdings are also posted on www.dws-investments.com from time to time. Please see the fund's current prospectus for more information.
Principal Underwriter
  
If you have questions, comments or complaints, contact:
DWS Investments Distributors, Inc.
222 South Riverside Plaza
Chicago, IL 60606-5808
(800) 621-1148
Investment Management
  
Deutsche Investment Management Americas Inc. ("DIMA" or the "Advisor"), which is part of Deutsche Asset Management, is the investment advisor for the fund. DIMA and its predecessors have more than 80 years of experience managing mutual funds and DIMA provides a full range of investment advisory services to both institutional and retail clients.
DIMA is an indirect, wholly owned subsidiary of Deutsche Bank AG. Deutsche Bank AG is a major global banking institution engaged in a wide variety of financial services, including investment management, retail, private and commercial banking, investment banking and insurance.
DWS Investments is the retail brand name in the U.S. for the asset management activities of Deutsche Bank AG and DIMA. As such, DWS is committed to delivering the investing expertise, insight and resources of this global investment platform to American investors.
 

   
Class A
Class B
Class C
Class S
Institutional Class
Nasdaq Symbol
  
SUIAX
SUIBX
SUICX
SCINX
SUIIX
CUSIP Number
  
23337R 858
23337R 841
23337R 833
23337R 817
23337R 791
Fund Number
  
468
668
768
2068
1468
 
Privacy Statement
FACTS
  
What Does DWS Investments Do With Your Personal Information?
Why?
  
Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share and protect your personal information. Please read this notice carefully to understand what we do.
What?
  
The types of personal information we collect and share can include:
· Social Security number
· Account balances
· Purchase and transaction history
· Bank account information
· Contact information such as mailing address, e-mail address and telephone number
How?
  
All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information, the reasons DWS Investments chooses to share and whether you can limit this sharing.
 

Reasons we can share your personal information
Does DWS Investments share?
Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders or legal investigations
Yes
No
For our marketing purposes — to offer our products and services to you
Yes
No
For joint marketing with other financial companies
No
We do not share
For our affiliates' everyday business purposes — information about your transactions and experiences
No
We do not share
For our affiliates' everyday business purposes — information about your creditworthiness
No
We do not share
For non-affiliates to market to you
No
We do not share
 

Questions?
Call (800) 621-1048 or e-mail us at dws-investments.info@dws.com
 

Who we are
Who is providing this notice?
DWS Investments Distributors, Inc.; Deutsche Investment Management Americas, Inc.; DeAM Investor Services, Inc.; DWS Trust Company; the DWS Funds
What we do
How does DWS Investments protect my personal information?
To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.
How does DWS Investments collect my personal information?
We collect your personal information, for example. When you:
· open an account
· give us your contact information
· provide bank account information for ACH or wire transactions
· tell us where to send money
· seek advice about your investments
Why can't I limit all sharing?
Federal law gives you the right to limit only
· sharing for affiliates' everyday business purposes — information about your creditworthiness
· affiliates from using your information to market to you
· sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit sharing.
Definitions
Affiliates
Companies related by common ownership or control. They can be financial or non-financial companies. Our affiliates include financial companies with the DWS or Deutsche Bank ("DB") name, such as DB AG Frankfurt and DB Alex Brown.
Non-affiliates
Companies not related by common ownership or control. They can be financial and non-financial companies.
Non-affiliates we share with include account service providers, service quality monitoring services, mailing service providers and verification services to help in the fight against money laundering and fraud.
Joint marketing
A formal agreement between non-affiliated financial companies that together market financial products or services to you. DWS Investments does not jointly market.
 

 
Rev. 09/2011
 
 
   
ITEM 2.
CODE OF ETHICS
   
 
Not applicable.
   
ITEM 3.
AUDIT COMMITTEE FINANCIAL EXPERT
   
 
Not applicable
   
ITEM 4.
PRINCIPAL ACCOUNTANT FEES AND SERVICES
   
 
Not applicable
   
ITEM 5.
AUDIT COMMITTEE OF LISTED REGISTRANTS
   
 
Not applicable
   
ITEM 6.
SCHEDULE OF INVESTMENTS
   
 
Not applicable
   
ITEM 7.
DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
   
 
Not applicable
   
ITEM 8.
PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
   
 
Not applicable
   
ITEM 9.
PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
   
 
Not applicable
   
ITEM 10.
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
   
 
There were no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board.  The primary function of the Nominating and Governance Committee is to identify and recommend individuals for membership on the Board and oversee the administration of the Board Governance Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Paul K. Freeman, Independent Chairman, DWS Funds, P.O. Box 101833, Denver, CO 80250-1833.
   
ITEM 11.
CONTROLS AND PROCEDURES
   
 
(a)
The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
   
 
(b)
There have been no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.
   
ITEM 12.
EXHIBITS
   
 
(a)(1)
Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.
   
 
(b)
Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.


Form N-CSRS Item F

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant:
DWS International Fund, a series of DWS International Fund, Inc.
   
   
By:
/s/W. Douglas Beck
W. Douglas Beck
President
   
Date:
April 26, 2012

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By:
/s/W. Douglas Beck
W. Douglas Beck
President
   
Date:
April 26, 2012
   
   
   
By:
/s/Paul Schubert
Paul Schubert
Chief Financial Officer and Treasurer
   
Date:
April 26, 2012